Details for: PGE AL 3890-G_5152-E.pdf


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Erik Jacobson

Director
Regulatory Relations

Pacific Gas and Electric Company
77 Beale St., Mail Code B13U
P.O. Box 770000
San Francisco, CA 94177
Fax: 415-973-3582

October 4, 2017

Advice 3890-G/5152-E
(Pacific Gas and Electric Company ID U 39 M)

Public Utilities Commission of the State of California
Subject:

Statewide Marketing, Education, and Outreach (Statewide ME&O)
2017-2019 PG&E Budget

Purpose
In Decision (D.) 16-09-020, the California Public Utilities Commission (Commission or
CPUC) adopted and ratified the results of the Request for Proposal process used to
select the implementer of the 2017-2019 Statewide Marketing, Education and Outreach
(Statewide ME&O) program.
This annual Tier 1 Advice Letter is filed in compliance with Ordering Paragraph (OP) 7
of that Decision, ordering that “After the Tier 1 Advice Letter required by Ordering
Paragraph 4 is filed, Pacific Gas and Electric Company, Southern California Edison
Company, San Diego Gas & Electric Company, and Southern California Gas Company
shall each file Tier 1 Advice Letters specifying the dollar amounts of their respective
Statewide Marketing, Education, and Outreach budgets for the period October 1, 2016
through September 30, 2017, and annually thereafter for the 12-month periods ending
September 30, 2018 and September 30, 2019.”
Background
The Statewide ME&O program is an initiative designed to promote energy management
concepts, demand-side management, energy efficiency actions, and clean energy
opportunities for the State’s residents and small businesses under the brand name
Energy Upgrade California. Application A.12-07-008 was opened to determine 20142015 budget allocations for the Statewide ME&O program. The Commission opened
Phase 2 to determine 2016 bridge funding, and Phase 3 to determine program
administration and funding post-2016. Phase 3 also adopted a Request for Proposal
(RFP) process to select a new Statewide ME&O implementer, and D.16-09-020
approved the winner of said RFP. The Commission appointed PG&E to manage the
RFP process, in coordination with other Statewide ME&O stakeholders.





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Advice 3890-G/5152-E -2- October 4, 2017 On October 17, 2016, PG&E filed Advice Letter 3770-G/4939-E, pursuant to OP 4 of D.16-09-020, and submitted the final contract and budget between PG&E and the new statewide implementer, DDB Worldwide Communications Group, Inc. (DDB). Under the contract DDB will implement the Statewide ME&O program from October 1, 2016 through September 30, 2019. On April 5, 2017, DDB filed Advice Letters DDB-1 and DDB-2 pursuant to OP 13 of D.16-09-020 and Attachment A of D.16-03-029. The Advice Letters included a Five-year Marketing, Education, and Outreach Strategic Roadmap (Roadmap) and a 2017-2018 Joint Consumer Action Plan. Resolution E-4871 approved both the Roadmap and Joint Consumer Action Plan, effective August 10, 2017. On September 10, 2017, DDB filed a supplemental advice letter, DDB-1-A, in which Evaluation, Measurement and Verification (EM&V) expenses and Investor Owned Utilities (IOU) administration expenses were removed from DDB’s budget allocation. The changes reduced DDB’s budget from $73,318,314 to $68,186,032.1 Under the larger Statewide ME&O budget, Commission staff are authorized a 4% EM&V budget allocation to conduct statewide EM&V studies, and the IOUs are authorized 3% for administrative costs related to Statewide ME&O activities. Statewide ME&O Funding Allocations D.16-03-029, issued March 22, 2016, states that a budget of no less than $23 million per year is to be assumed for the statewide implementer (Conclusion of Law 9, p. 71). DDB’s maximum budget for developing and funding the execution of the Statewide ME&O program, including related stakeholder meetings, research, and oversight of plan implementation, is consistent with that guideline. PG&E, acting as the fiscal agent, entered into a contract with DDB. The contract will be managed by the CPUC. Resolution E-4871 outlined the funding allocation for the Statewide ME&O budget as follows: Pacific Gas and Electric Company (PG&E) 46.74%, Southern California Edison Company (SCE) 32.68%, San Diego Gas & Electric Company (SDG&E) 12.43%, and Southern California Gas Company (SoCal Gas) 8.14%. However, as seen in Table 1, the percentage allocation only totals 99.99%. To ensure that 100% of Statewide ME&O program costs are covered, each IOU will add 0.0025% to its total. The chart below shows Resolution E-4871 percentages and adjusted percentages. 1 AL DDB-1-A, p. 1.
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Advice 3890-G/5152-E -3- October 4, 2017 Table 1: Statewide ME&O IOU Percentage Comparison IOU Percentages Percentage per D.16-09-020 OP #6 46.74% 32.68% 12.43% 8.14% 99.99% IOU PG&E SCE SDG&E SoCalGas Total Adjusted Percentage to Account for 100%2 46.7425% 32.6825% 12.4325% 8.1425% 100.0000% Total Statewide ME&O Budget The total Statewide ME&O budget for 2017-2019 is $73,318,314 and includes allocations for DDB San Francisco, EM&V, and IOU Statewide ME&O administrative costs. The allocation percentages were directed by the Commission in OP 5 of D.16-09020 and are $2,199,549 (3%) for IOU administrative expenses and $2,932,733 (4%) for the EM&V evaluation budget.3 Table 2 below shows the breakdown of the budget to include EM&V and IOU expenses. Table 2: Statewide ME&O Budget According to Resolution E-4871 Statewide ME&O Budget Breakdown Allocated to DDB-San Francisco ED for EM&V IOU Administrative Total Amount $68,186,032 $2,932,733 $2,199,549 $73,318,314 Allocation of Budget 93% 4% 3% 100% Statewide ME&O Total Budget by IOU Table 3 shows the total possible IOU expenses, including budget amounts for the DDB contract, IOU administrative allowances, and EM&V. 2 3 An additional 0.0025% allocation per IOU was required to ensure that 100% of the Statewide ME&O budget would be funded. AL 3783-G/4963-E originally included miscalculated numbers for EM&V as $2,727,441 and IOU expenses as $2,127,404, and an incorrect total budget amount of $73,040,877. The calculations have been corrected and are reflected in Table 2 of this advice filing to correct the errors in AL 3783-G/4963-E.
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Advice 3890-G/5152-E -4- October 4, 2017 Table 3: Total Possible Statewide ME&O Expenses by IOU4 Total Statewide ME&O Budget by IOU Party PG&E SCE SDG&E SoCalGas Total % Contribution 46.7425% 32.6825% 12.4325% 8.1425% 100.0000% DDB Contract5 $31,871,856.01 $22,284,899.91 $8,477,228.43 $5,552,047.66 $68,186,032.00 IOU Admin Allowance (3%)6 $1,028,124.19 $718,867.60 $273,458.93 $179,098.28 $2,199,549.00 EM&V for Energy Division (4%)7 $1,370,832.72 $958,490.46 $364,612.03 $238,797.78 $2,932,733.00 Total SW ME&O Contribution $34,270,812.92 $23,962,257.97 $9,115,299.39 $5,969,943.72 $73,318,314.00 PG&E’s Specific Statewide ME&O Annual Budget PG&E has allocated the budget across the 3-year cycle of 2017-2019, as shown in Table 4 below. Table 4: PG&E’s Annual Statewide ME&O Budget8 PG&E's Budget Allocations by Year Oct. 2016 – Sept. 20179 $9,519,670.26 4 5 6 7 8 9 Oct. 2017 – Sept. 2018 $12,375,571.33 Oct. 2018 – Sept. 2019 $12,375,571.33 Total $34,270,812.92 AL 3783-G/4963-E included incorrectly calculated numbers for each IOU given the incorrect total budget that each IOU must collect in rates to ensure full funding of the contract to include DDB expenses, IOU expenses, and EM&V expenses. The calculations have been corrected and are reflected in Table 3 of this advice filing to correct the errors in AL 3783-G/4963-E. PG&E is billed by DDB and then invoices SCE, SDG&E and SoCalGas. The IOUs have a cofunding agreement to pay for these costs. Each IOU will collect this amount from ratepayers and will spend and account for up to their total allocated administrative funding amount. Energy Division will order EM&V studies for Statewide ME&O for up to the total amount authorized and bill each IOU for their respective portion. AL 3783-G/4963-E originally included PG&E’s portion of the budget to be split over a 4-year time period when it should have been allocated over a three-year period. Table 4 in this advice filing corrects the allocation over the time period of October 2016 to September 2019 and reflects updated totals based on the recalculations completed in tables 2 and 3. The October 2016 – September 2017 budget includes only 10 months of work since DDB's work commenced in late November 2016. The budget amounts for the remaining two months (October/November) were allocated to the following years. AL 3783-G/4963-E originally identified the total expenses for October 2016 – September 2017 as $911,369. The numbers reflected in this advice filing correct those errors.
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Advice 3890-G/5152-E -5- October 4, 2017 Protests Anyone wishing to protest this filing may do so by letter sent via U.S. mail, facsimile or E-mail, no later than October 24, 2017, which is 20 days after the date of this filing. Protests must be submitted to: CPUC Energy Division ED Tariff Unit 505 Van Ness Avenue, 4th Floor San Francisco, California 94102 Facsimile: (415) 703-2200 E-mail: EDTariffUnit@cpuc.ca.gov Copies of protests also should be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest shall also be sent to PG&E both via e-mail or U.S. mail (and by facsimile, if possible) at the address shown below on the same date it is mailed or delivered to the Commission: Erik Jacobson Director, Regulatory Relations c/o Megan Lawson Pacific Gas and Electric Company 77 Beale Street, Mail Code B13U P.O. Box 770000 San Francisco, California 94177 Facsimile: (415) 973-3582 E-mail: PGETariffs@pge.com Any person (including individuals, groups, or organizations) may protest or respond to an advice letter (General Order 96-B, Section 7.4). The protest shall contain the following information: specification of the advice letter protested; grounds for the protest; supporting factual information or legal argument; name, telephone number, postal address, and (where appropriate) e-mail address of the protestant; and statement that the protest was sent to the utility no later than the day on which the protest was submitted to the reviewing Industry Division (General Order 96-B, Section 3.11). Effective Date PG&E requests that this Tier 1 advice filing become effective upon date of filing, which is October 4, 2017.
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Advice 3890-G/5152-E -6- October 4, 2017 Notice In accordance with General Order 96-B, Section IV, a copy of this advice letter is being sent electronically and via U.S. mail to parties shown on the attached list and the parties on the service list for A.12-08-007. Address changes to the General Order 96-B service list should be directed to PG&E at email address PGETariffs@pge.com. For changes to any other service list, please contact the Commission’s Process Office at (415) 703-2021 or at Process_Office@cpuc.ca.gov. Send all electronic approvals to PGETariffs@pge.com. Advice letter filings can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations cc: Service List: A.12-08-007
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CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No. Pacific Gas and Electric Company (ID U39 M) Utility type: Contact Person: Yvonne Yang  ELC  GAS  PLC  HEAT Phone #: (415) 973-2094  WATER E-mail: Yvonne.Yang@pge.com and PGETariffs@pge.com EXPLANATION OF UTILITY TYPE ELC = Electric PLC = Pipeline GAS = Gas HEAT = Heat (Date Filed/ Received Stamp by CPUC) WATER = Water Advice Letter (AL) #: 3890-G/5152-E Tier: 1 Subject of AL: Statewide Marketing, Education, and Outreach (Statewide ME&O) 2017-2019 PG&E Budget Keywords (choose from CPUC listing): Compliance AL filing type:  Monthly  Quarterly Annual One-Time  Other _____________________________ If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D.16-09-020 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: No Summarize differences between the AL and the prior withdrawn or rejected AL: ____________________ Is AL requesting confidential treatment? If so, what information is the utility seeking confidential treatment for: No Confidential information will be made available to those who have executed a nondisclosure agreement: N/A Name(s) and contact information of the person(s) who will provide the nondisclosure agreement and access to the confidential information: ___________________ Resolution Required? Yes  No Requested effective date: October 4, 2017 N No. of tariff sheets: N/A Estimated system annual revenue effect (%): N/A Estimated system average rate effect (%): N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: N/A Service affected and changes proposed: N/A Pending advice letters that revise the same tariff sheets: N/A Protests, dispositions, and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: California Public Utilities Commission Energy Division EDTariffUnit 505 Van Ness Ave., 4th Flr. San Francisco, CA 94102 E-mail: EDTariffUnit@cpuc.ca.gov Pacific Gas and Electric Company Attn: Erik Jacobson Director, Regulatory Relations c/o Megan Lawson 77 Beale Street, Mail Code B13U P.O. Box 770000 San Francisco, CA 94177 E-mail: PGETariffs@pge.com
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PG&E Gas and Electric Advice Filing List General Order 96-B, Section IV AT&T Albion Power Company Alcantar & Kahl LLP Anderson & Poole Atlas ReFuel BART Barkovich & Yap, Inc. Braun Blaising Smith Wynne P.C. CalCom Solar California Cotton Ginners & Growers Assn California Energy Commission California Public Utilities Commission California State Association of Counties Calpine Casner, Steve Cenergy Power Center for Biological Diversity City of Palo Alto City of San Jose Clean Power Research Coast Economic Consulting Commercial Energy Cool Earth Solar, Inc. County of Tehama - Department of Public Works Crossborder Energy Crown Road Energy, LLC Davis Wright Tremaine LLP Day Carter Murphy Defense Energy Support Center Dept of General Services Division of Ratepayer Advocates Don Pickett & Associates, Inc. Douglass & Liddell Downey & Brand Ellison Schneider & Harris LLP Energy Management Service Evaluation + Strategy for Social Innovation G. A. Krause & Assoc. GenOn Energy, Inc. Goodin, MacBride, Squeri, Schlotz & Ritchie Green Charge Networks Green Power Institute Hanna & Morton ICF International Power Technology Intestate Gas Services, Inc. Kelly Group Ken Bohn Consulting Leviton Manufacturing Co., Inc. Linde Los Angeles County Integrated Waste Management Task Force Los Angeles Dept of Water & Power MRW & Associates Manatt Phelps Phillips Marin Energy Authority McKenna Long & Aldridge LLP McKenzie & Associates Modesto Irrigation District Morgan Stanley NLine Energy, Inc. NRG Solar Nexant, Inc. Office of Ratepayer Advocates OnGrid Solar Pacific Gas and Electric Company Praxair Regulatory & Cogeneration Service, Inc. SCD Energy Solutions SCE SDG&E and SoCalGas SPURR San Francisco Water Power and Sewer Seattle City Light Sempra Utilities Southern California Edison Company Southern California Gas Company Spark Energy Sun Light & Power Sunshine Design Tecogen, Inc. TerraVerde Renewable Partners Tiger Natural Gas, Inc. TransCanada Troutman Sanders LLP Utility Cost Management Utility Power Solutions Utility Specialists Verizon Water and Energy Consulting Wellhead Electric Company Western Manufactured Housing Communities Association (WMA) Yep Energy
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