6. Comments on Proposed Decision

The Presiding Officer and Assigned Commissioner's proposed decision was filed with the Commission and served on all parties in accordance with Section 311(d) of the Public Utilities Code and Rule 77.1 of the Rules of Practice and Procedure. Comments were filed and served on ________, 2002, and reply comments were filed and served on _________, 2002.

Findings of Fact

1. The Commission's existing CVR program, as stated in Rules 2 of PG&E, SCE and SDG&E, already requires that most service voltage (at the customer meter) be between 114 and 120 volts (for normal 120 volt service), with limited exceptions.

2. Each utility strives to operate within the limits of Rule 2, and makes necessary corrections when brought to its attention.

3. PG&E and SDG&E do not have automatic or remote capability to quickly implement voltage reduction during system emergencies.

4. The Governor's request to study voltage reduction was initiated under far worse conditions than exist today, with current conditions now including increased supply and decreased demand.

5. The benefits of an emergency voltage reduction program are limited to the remote voltage reduction capability of SCE during its summer on-peak period, saving no more than an estimated 160 MW.

6. The risks of injury, damage and disruption increase as voltages decrease.

7. Emergency voltage reduction can cause injury, damage, and disruption, including increasing the risk and incidence of injury, equipment damage, and equipment maintenance costs; shortening equipment life; causing equipment outages; disrupting or halting business operations; and reducing system operator flexibility.

8. Minimum ANSI C84.1 Range A service and utilization voltages are 114 and 110, respectively, and minimum Range B service and utilization voltages are 110 and 106, respectively.

9. ANSI C84.1 Range A identifies voltages for which electrical systems are designed and operated, and is the expected normal condition, while the occurrence of service voltages outside of Range A should be infrequent.

10. ANSI C84.1 requires that Range B voltages be limited in extent, frequency, and duration, and when Range B occurs, corrective measures shall be undertaken within a reasonable time to improve voltages to meet Range A requirements.

11. If emergency voltage reduction is authorized as recommended, the event might last as long as the entire SCE on-peak period, or up to 6 hours each summer weekday (excluding holidays), for a total of 504 hours in 2002.

12. A program that authorizes Range B up to 504 hours is not consistent with events that are "temporary," "infrequent," and "limited in extent, frequency and duration."

13. Operation in Range B for extended times nearly ensures some customers will see voltages below Range B, with concurrent risk of injury, damage and disruption.

14. The NEC encourages building designers to limit voltage drop to 5% (6 volts on a 120 volt system) compared to 4 volts in ANSI C84.1.

15. The 2 volt difference in allowance for voltage drop within buildings between the NEC and ANSI C84.1 creates a bias for problems, and necessitates caution when lowering overall system voltages below Range A.

16. Emergency voltage reduction places some customers at risk of utilization voltage less than 106 volts, including not only non-essential customers, but also essential customers normally excluded from rotating outages.

17. The Chairman of the Accredited Standards Committee C84 states that service voltage of 114 volts is the minimum voltage to ensure acceptable equipment performance.

18. Unacceptable equipment performance creates risk of injury, damage and disruption.

19. CEC test results have not been published, have not received formal peer review, and were not introduced as evidence.

20. All equipment does not at all times meet current code, reflect proper installation, and have safeguards and safety devices that are fully functional.

21. Waiver of utility liability for injury, damage or disruption resulting from emergency voltage reduction transfers the risk of those outcomes from the utility to its customers, and specifically to the customers who experience injury, damage or disruption.

22. The transfer of risk from the utility to its customers is inequitable, the magnitude of the liability is unknown, and, if those customers are essential customers, it harms not only those customers, but also the broader public health, safety and welfare.

23. Emergency voltage reduction involves unknown effects over potentially long durations without an existing or proposed warning system, while rotating outages are announced before they occur, are of limited duration, and customers have several options available to mitigate their exposure or damage.

24. Investments in alternatives (including investments in new generation, energy efficient equipment, conservation programs, and expanded interruptible rate tariffs) promise more secure benefits with greater potential capacity savings and fewer risks than does emergency voltage reduction.

25. CEC recommends that the Commission study opportunities for customers who own their own substations or distribution transformers to implement voltage reductions in response to system emergencies or energy conservation, but CEC presents no estimate of possible costs or potential savings.

26. Numerous other programs now in place as a result of Executive Orders by Governor Davis, as well as initiatives by this Commission and utilities, have significantly moderated the need to authorize an emergency voltage reduction program.

27. The potential benefits of emergency voltage reduction are modest, the risks are not quantified but potentially great, and reasonable alternatives are available.

Conclusions of Law

1. PG&E, SCE and SDG&E should each continue all reasonable efforts to operate their distribution systems at the lowest peak load voltage levels consistent with Commission orders and Rule 2.

2. PG&E, SCE and SDG&E should each modify their existing voltage regulating devices, as necessary and reasonable, to ensure operation within Rule 2 limits.

3. PG&E, SCE and SDG&E should each explore all reasonable opportunities for additional voltage savings in the normal course of their operations, including implementation of all cost-effective measures to reduce voltage during normal substation related work.

4. The voltage reduction recommendations of the CEC and TURN should not be adopted, but, should the need resurface, parties may propose specific emergency voltage reduction measures for further consideration.

5. This order should be effective today so that utilities may continue all reasonable efforts to pursue voltage regulation and capacity savings within the limits of Rule 2 and ANSI C84.1; the uncertainty of possibly implementing an emergency voltage reduction program is removed; and parties can explore all other alternatives, as necessary, for avoiding rotating outages with Rule 2 and ANSI C84.1 limits without delay.

INTERIM ORDER

IT IS ORDERED that:

1. Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company shall continue all reasonable efforts to operate their distribution systems at the lowest peak load voltage levels consistent with Commission orders and Rule 2; modify their existing voltage regulating devices, as necessary and reasonable, to ensure operation within Rule 2 limits; and explore all reasonable opportunities for additional voltage savings in the normal course of their operations, including implementation of all cost-effective measures to reduce voltage during normal substation related work.

2. This proceeding remains open for other Phase 2 issues, but is closed regarding emergency voltage reduction plans. Parties may, however, propose further Commission consideration of an emergency voltage reduction plan, as necessary and reasonable, by filing a pleading pursuant to any relevant portion of the Public Utilities Code, including a petition under Public Utilities Code Section 1708.5, if the need to consider such plan resurfaces.

This order is effective today.

Dated , at San Francisco, California.

************ APPEARANCES ************

James H. Butz
AIR PRODUCTS AND CHEMICALS, INC.
7201 HAMILTON BLVD.
ALLENTOWN PA 18195
(610) 481-4239
butzjh@apci.com

For: AIR PRODUCTS & CHEMICALS, INC.

Michael Alcantar
Attorney At Law
ALCANTAR & KAHL LLP
1300 SW FIFTH AVENUE, SUITE 1750
PORTLAND OR 97201
(503) 402-9900
mpa@a-klaw.com

For: Cogeneration Assoc. of California

Evelyn Kahl
CHRISTINE JUN
Attorney At Law
ALCANTAR & KAHL, LLP
120 MONTGOMERY STREET, SUITE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
ek@a-klaw.com

For: Energy Producers & Users Coalition (EPUC)

Dan Smith
ASSOCIATION OF CALIFORNIA WATER AGENCIES
910 K STREET, SUITE 100
SACRAMENTO CA 95814
(916) 441-4545
dans@acwanet.com


Barbara R. Barkovich
BARKOVICH AND YAP, INC.
31 EUCALYPTUS LANE
SAN RAFAEL CA 94901
(415) 457-5537
brbarkovich@earthlink.net


Fernando De Leon
CALIFORNIA ENERGY COMMISSION
1516 - 9TH STREET MS-14
SACRAMENTO CA 95814-5504
(916) 654-4873
fdeleon@energy.state.ca.us

Jennifer Tachera
CALIFORNIA ENERGY COMMISSION
1516 NINTH STREET, MS-14
SACRAMENTO CA 95814-5504
(916) 654-3870
jtachera@energy.state.ca.us

For: CEC

Ronald Liebert
Attorney At Law
CALIFORNIA FARM BUREAU FEDERATION
2300 RIVER PLAZA DRIVE
SACRAMENTO CA 95833
(916) 561-5657
rliebert@cfbf.com

For: California Farm Bureau Federation

Joe Como
Attorney At Law
CITY AND COUNTY OF SAN FRANCISCO
1 DR. CARLTON B. GOODLETT PLACE
SAN FRANCISCO CA 94102
(415) 554-4637
joe_como@ci.sf.ca.us

For: City & County of San Francisco

David L. Dains
17751 BEACH BLVD.
HUNTINGTON BEACH CA 92647

Treg Tremont
STEVEN GREENWALD, EDWARD O'NEILL
Attorney At Law
DAVIS WRIGHT TREMAINE, LLP
ONE EMBARCADERO CENTER, SUITE 600
SAN FRANCISCO CA 94111-3834
(415) 276-6500
tregtremont@dwt.com

For: AIR PRODUCTS & CHEMICALS, INC.

Norman J. Furuta
Attorney At Law
DEPARTMENT OF THE NAVY
2001 JUNIPERO SERRA BLVD., SUITE 600
DALY CITY CA 94014-1976
(650) 746-7312
FurutaNJ@efawest.navfac.navy.mil


Ann L. Trowbridge
Attorney At Law
DOWNEY BRAND SEYMOUR & ROHWER
555 CAPITOL MALL, 10TH FLOOR
SACRAMENTO CA 95814
(916) 441-0131 X-251
atrowbridge@dbsr.com

For: California Industrial Users

Lynn M. Haug
ANDREW B. BROWN
Attorney At Law
ELLISON, SCHNEIDER & HARRIS, LLP
2015 H STREET
SACRAMENTO CA 95814-3109
(916) 447-2166
lmh@eslawfirm.com

For: Dept. of General Services

Nancy Ryan
ENVIRONMENTAL DEFENSE
5655 COLLEGE AVENUE
OAKLAND CA 94618
(510) 658-8008
nryan@environmentaldefense.org


Daniel Kirshner
Senior Economic Analyst
ENVIRONMENTAL DEFENSE FUND
5655 COLLEGE AVENUE, SUITE 304
OAKLAND CA 94618
(510) 658-8008
dkirshner@environmentaldefense.org


Laura C. Roche
FARELLA, BRAUN & MARTEL
235 MONTGOMERY STREET
SAN FRANCISCO CA 94104
(415) 954-4400
lroche@fbm.com

For: California ISO

Anne Selting
GRUENEICH RESOURCE ADVOCATES
582 MARKET STREET, SUITE 1020
SAN FRANCISCO CA 94104
(415) 834-2300
aselting@gralegal.com

For: UC/CSU/LA COUNTY


Jeff Nahigian
JBS ENERGY, INC.
311 D STREET, SUITE A
WEST SACRAMENTO CA 95605
(916) 372-0534
jeff@jbsenergy.com

For: TURN

William H. Booth
Attorney At Law
LAW OFFICES OF WILLIAM H. BOOTH
1500 NEWELL AVENUE, 5TH FLOOR
WALNUT CREEK CA 94296
(925) 296-2460
wbooth@booth-law.com

John W. Leslie
Attorney At Law
LUCE FORWARD HAMILTON & SCRIPPS, LLP
600 WEST BROADWAY, SUITE 2600
SAN DIEGO CA 92101-3391
(619) 699-2536
jleslie@luce.com

For: Shell Energy Services

Daniel Cooley
Attorney At Law
PACIFIC GAS AND ELECTRIC COMPANY
77 BEALE STREET, ROOM 3161
SAN FRANCISCO CA 92105
(415) 973-6647
dfc2@pge.com

For: PG&E

Sylvia D. Gardner
PACIFIC GAS AND ELECTRIC COMPANY
PO BOX 770000, MAIL CODE B9A-991
SAN FRANCISCO CA 94177
(415) 973-2623
sdg6@pge.com

For: PG&E

Theodore E. Roberts
SAN DIEGO GAS & ELECTRIC COMPANY
101 ASH STREET, HQ 12B
SAN DIEGO CA 92101
(619) 699-5111
troberts@sempra.com

For: SAN DIEGO GAS & ELECTRIC COMPANY (SDG&E)

Paul Szymanski
Attorney At Law
SEMPRA ENERGY
101 ASH STREET
SAN DIEGO CA 92101
(619) 699-5078
pszymanski@sempra.com

For: SDG&E


Janine Watkins-Ivie
BRUCE A. REED
Attorney At Law
SOUTHERN CALIFORNIA EDISON COMPANY
2244 WALNUT GROVE AVENUE
ROSEMEAD CA 91770
(626) 302-4384
janine.watkinsivie@sce.com

For: Southern California Edison

Michael D. Montoya
Attorney At Law
SOUTHERN CALIFORNIA EDISON COMPANY
2244 WALNUT GROVE AVENUE, ROOM 345
ROSEMEAND CA 91770
(626) 302-6057
mike.montoya@sce.com

For: SOUTHERN CALIFORNIA EDISON COMPANY (SCE)

Keith R. Mccrea
Attorney At Law
SUTHERLAND, ASBILL & BRENNAN LLP
1275 PENNSYLVANIA AVENUE, NW
WASHINGTON DC 20004-2415
(202) 383-0705
kmccrea@sablaw.com

For: CMTA

James E. Scarff
Legal Division
RM. 5121
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-1440
jes@cpuc.ca.gov


Marcel Hawiger
Attorney At Law
THE UTILITY REFORM NETWORK
711 VAN NESS AVENUE, SUITE 350
SAN FRANCISCO CA 94102
(415) 929-8876
marcel@turn.org

For: TURN

 
   
   

(END OF APPENDIX A)

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