Details for: 3762-E (Part 1 of 1).pdf


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Gary A. Stern, Ph.D.
Managing Director, State Regulatory Operations

March 9, 2018
ADVICE 3762-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
SUBJECT:

Establishment of Southern California Edison Company’s
Integrated Resource Planning Costs Memorandum Account
Pursuant to Decision 18-02-018

In compliance with Ordering Paragraph (OP) 19 of California Public Utilities
Commission (CPUC or Commission) Decision (D.)18-02-018, Southern California
Edison Company (SCE) hereby submits for filing the following changes to its tariffs. The
revised tariff sheets are listed on Attachment A and are attached hereto.
PURPOSE
In compliance with D.18-02-018, this advice filing establishes Preliminary Statement
Part N.17, Integrated Resource Planning Costs Memorandum Account (IRPCMA), to
record SCE’s share of the costs incurred by the Commission related to integrated
resource planning (IRP) third party technical support.1 These costs may be recorded
upon reimbursement to the Commission for later recovery in distribution rates from all
customers.
BACKGROUND
In 2015, the Governor signed Senate Bill (SB) 350, which introduced a number of
changes to the California Public Utilities Code. This included direction for the
Commission to adopt a new IRP process that would supersede the long-term

1

Examples of expected IRP third party technical support are detailed on pages 147-149 of
D.18-02-018.

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





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ADVICE 3762-E (U 338-E) -2- March 9, 2018 procurement planning (LTPP) process,2 and work toward achieving the state’s greenhouse gas (GHG) reduction goals.3 The Commission initiated the IRP proceeding (Rulemaking (R.)16-02-007) in February 2016 and has developed, with substantial stakeholder input, electric sector GHG targets and an associated model portfolio of generation resources that are intended to help achieve the state’s overall goals, while also mitigating customer costs. This process required Energy Division staff to undertake substantial modeling and analytical work, in order to develop this “Reference System Plan” that outlines a potential resource portfolio and required generation capacity additions that would achieve the GHG goal. This process will repeat every two years. Given the amount of technical work required to achieve this outcome, Energy Division contracted with an external consultant to support the initial process. On February 8, 2018, the Commission approved D.18-02-018 that sets the electric sector GHG target and associated Reference System Plan for the current IRP cycle, and the process for LSEs to follow when filing their plans later this year. In D.18-02-018, the Commission stated that “[m]eeting the state’s future GHG reduction goals while maintaining reliability and minimizing impacts on ratepayers will require further development and refinement of the analytical framework and tools that are being used for the IRP process. This need will be an ongoing one through the next several IRP cycles.”4 The Commission also cited the state’s Annual Budget Act, which provides the Commission “specific and limited ongoing reimbursable expenditure authority,”5 as justification to authorize technical assistance reimbursement. To this end, the Commission authorized the Commission’s Executive Director to hire and manage one or more contractors to perform tasks in support of the IRP process ordered in the decision.6 The costs of these tasks shall not exceed $3 million per year, for up to six years (not to exceed $18 million in total), with costs eligible to be rolled over annually until no later than 2030.7 The Commission’s Executive Director will approve the expenditures and seek reimbursement from the three large IOUs proportional to their projected 2030 distribution load share reported in their most recent IRP approved by the 2 3 4 5 6 7 Unlike the previous LTPP process, which applied to the investor-owned utilities (IOUs) only, the IRP process incorporates all load-serving entities (LSEs) which operate within the service territories and whose customers utilize transmission and distribution services of the IOUs. The IRP-related aspects of SB 350 are included in Sections 454.51 and 454.52 of the California Public Utilities Code. D.18-02-018 at 147. Id. Id. at 149, OP 20. Id.
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ADVICE 3762-E (U 338-E) -3- March 9, 2018 Commission.8 The IOUs are directed to establish IRPCMAs, and to record the Commission’s IRP third party technical support costs to those accounts.9 Costs recorded in the IRPCMAs will subsequently be recovered by the IOUs through their distribution rates.10 PROPOSED TARIFF CHANGES As discussed above, and pursuant to OP 19 of D.18-02-018, in this advice filing SCE establishes Preliminary Statement Part N.17, IRPCMA, to record SCE’s share of the costs incurred by the Commission related to IRP third party technical support. Pursuant to D.18-02-018, SCE is authorized to recover costs recorded in the IRPCMA through distribution rates. Similar to other Commission authorized memorandum accounts, SCE will seek Commission review to ensure that all entries to the IRPCMA are stated correctly and are consistent with D.18-02-018 and to request rate recovery of the costs recorded in the IRPCMA for the prior year in its annual April 1 Energy Resource Recovery Account (ERRA) Review proceeding. TIER DESIGNATION Pursuant to OP 19 of D.18-02-018, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE Pursuant to General Order (GO) 96-B, this advice filing will become effective on April 8, 2018, the 30th calendar day after the date filed. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be submitted to: 8 9 10 Id. at 149, OP 19. The language on page 149 of D.18-02-018 references “annual retail sales reported in their most recent IRP approved by the Commission,” and the language in OP 19 references “projected 2030 load share.” To reconcile this language, SCE has assumed costs will be allocated among the IOUs based on projected 2030 load share reported in the IOUs’ most recent IRPs approved by the Commission. Because these costs will be recovered in distribution rates, they should be allocated among the IOUs based on projected 2030 distribution load share. Id. at 149-150, OP 19. Id at 149-50.
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ADVICE 3762-E (U 338-E) -4- March 9, 2018 California Public Utilities Commission, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: EdTariffunit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Telephone: (626) 302-9645 Facsimile: (626) 302-6396 E-mail: AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above. In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B and R.16-02-007 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 302-3719. For changes to all other service lists, please contact the Commission’s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE’s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.
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ADVICE 3762-E (U 338-E) -5- March 9, 2018 For questions, please contact Matt Sheriff at (626) 302-1895 or by electronic mail at Matt.Sheriff@sce.com. Southern California Edison Company /s/ Gary A. Stern Gary A. Stern, Ph.D. GAS:ms:cm Enclosures
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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.: Southern California Edison Company (U 338-E) Utility type: Contact Person: Darrah Morgan  ELC  GAS  PLC  HEAT Phone #: (626) 302-2086  WATER E-mail: Darrah.Morgan@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE ELC = Electric PLC = Pipeline GAS = Gas HEAT = Heat Advice Letter (AL) #: Subject of AL: (Date Filed/ Received Stamp by CPUC) WATER = Water 3762-E Tier Designation: 2 Establishment of Southern California Edison Company’s Integrated Resource Planning Costs Memorandum Account Pursuant to Decision 18-02-018 Keywords (choose from CPUC listing): Compliance, Memorandum Account AL filing type:  Monthly  Quarterly  Annual  One-Time  Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 18-02-018 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL: Confidential treatment requested?  Yes  No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information: Resolution Required?  Yes  No Requested effective date: 4/8/18 No. of tariff sheets: -3- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): 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: See Attachment A Service affected and changes proposed1: Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed. None
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Protests 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: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: EDTariffUnit@cpuc.ca.gov Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Telephone: (626) 302-9645 Facsimile: (626) 302-6396 E-mail: AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com
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Public Utilities Commission 3762-E Cal. P.U.C. Sheet No. Title of Sheet Attachment A Cancelling Cal. P.U.C. Sheet No. Revised 63459-E Revised 63460-E Preliminary Statement Part N Preliminary Statement Part N Revised 63126-E Revised 61169-E Revised 63461-E Table of Contents Revised 63412-E 1
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised PRELIMINARY STATEMENT Cal. PUC Sheet No. Cal. PUC Sheet No. 63459-E 63126-E Sheet 2 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued) d. Section No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32) (33) * Specified Project (Continued) Interest Bearing Memorandum Account* Specified Project Purpose – Not a Specified Project Definitions – Not a Specified Project Self-Generation Program Incremental Cost (SGPIC) Yes Memorandum Account Catastrophic Event Yes Wheeler North Reef Expansion Project Memorandum Account Yes NEM Online Application System Memorandum Account Yes (NEMOASMA) Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA) Yes Result Sharing Memorandum Account (RSMA) Yes Plug-In Electric Vehicle Submetering Pilot Memorandum Account Yes (PEVSPMA) Research, Development, and Demonstration Royalties Yes Distributed Resources Plan Memorandum Account (DRPMA) Yes Wildfires Customer Protections Memorandum Account (WCPMA) Yes California Power Exchange Wind-Up Charge Memorandum Yes Account (PXWUC) Income Tax Component of Contribution Yes Memorandum Account GRC Revenue Requirement Memorandum Account (GRCRRMA) Yes Yes DWR Franchise Fee Obligation Memorandum Account Yes Integrated Resource Planning Costs Memorandum Account Yes Not Used Building Benchmarking Data Memorandum Account Yes Not Used Nuclear Claims Memorandum Account (NCMA) Yes Memorandum Account (DFG Memorandum Account) Not Used Not Used Agricultural Account Aggregation Study Memorandum Account Yes Marine Corps Air Ground Combat Center Memorandum Account Yes (MCAGCCMA) Energy Data Request Program Memorandum Account Yes Not Used Energy Settlements Memorandum Account (ESMA) Yes Affiliate Transfer Fee Memorandum Account Yes Avoided Cost Calculator Memorandum Account (ACCMA) Yes Nuclear Fuel Cancellation Incentive Memorandum Account Yes Integrated Distributed Energy Resources Administrative Costs Memorandum Account (iDERACMA) Yes Mitsubishi Net Litigation Memorandum Account Yes (N) Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance. (Continued) (To be inserted by utility) Advice 3762-E Decision 18-02-018 2D5 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Mar 9, 2018 Effective Resolution
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised Cal. PUC Sheet No. Cal. PUC Sheet No. PRELIMINARY STATEMENT 63460-E 61169-E Sheet 19 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 17. Integrated Resource Planning Costs Memorandum Account (IRPCMA) 1. Purpose The purpose of the Integrated Resource Planning Costs Memorandum Account (IRPCMA) is to record the costs incurred by the Commission related to IRP third party technical support pursuant to D.18-02-018. The Commission is authorized to spend $3 million annually for up to six years, for a total budget not to exceed $18 million. The annual funds may be carried forward and expended in a subsequent year. If not spent within six years, the funds may be spent in subsequent years until no later than 2030, but still may not exceed the maximum total. Reimbursement will be sought from the three IOUs on a proportional basis in relationship to their projected 2030 distribution load share reported in their most recent IRP approved by the Commission. 2. Operation of the IRPCMA Beginning with the 2017-18 fiscal year, SCE will receive invoices from the Commission for its share of Commission-incurred costs and will remit payment to the Commission. Upon receipt of the invoice, SCE will record: a. b. c. 3. A debit entry equal to SCE’s share of Commission costs related to IRP third party technical support; A credit entry to record the transfer of IRPCMA costs to the distribution sub-account of the BRRBA for recovery in rates upon Commission approval; and A debit entry equal one-twelfth of the Federal Reserve three-month Commercial Paper Rate – Non-Financial, from Federal Reserve Statistical Release H.15 (expressed as an annual rate). If in any month a non-financial rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate – Financial. Review and Disposition Procedures Pursuant to D.18-02-018, SCE is authorized to recover costs recorded in the IRPCMA through distribution rates. Similar to other Commission authorized memorandum accounts, SCE will seek Commission review to ensure that all entries to the account are stated correctly and are consistent with D.18-02-018 and to request rate recovery of the costs recorded in the IRPCMA for the prior year in its annual April 1 ERRA Review proceeding. (N) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (N) (Continued) (To be inserted by utility) Advice 3762-E Decision 18-02-018 19D6 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Mar 9, 2018 Effective Resolution
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised TABLE OF CONTENTS Cal. PUC Sheet No. Cal. PUC Sheet No. 63461-E 63412-E Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES ....63461-63036-63412-63207-63208-63093-63094-E ........................................................................................................... 63042-63043-63413-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 63413-E TABLE OF CONTENTS - RULES ............................................................................................ 63045-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 58961-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 59608-61801-61576-61817-63209-61631-E ........................................................................................................... 61970-61971-63296-E (T) PRELIMINARY STATEMENT: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Territory Served ......................................................................................................... 22909-E Description of Service ................................................................................................ 22909-E Procedure to Obtain Service ..................................................................................... 22909-E Establishment of Credit and Deposits ....................................................................... 22909-E General .......................................................................... 45178-45179-45180-53818-45182-E Symbols ..................................................................................................................... 45182-E Gross Revenue Sharing Mechanism .......26584-26585-26586-26587-27195-27196-54092-E .................................................................................................. 51717-53819-27200-27201-E Baseline Service ........................................................... 52027-52028-52029-52030-52031-E Charge Ready Program Balancing Account.................................................... 58633-58634-E Not In Use ............................................................................................................................. -E Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E Purchase Agreement Administrative Costs Balancing Account ........... 55207-51922-55208-E Income Tax Component of Contributions ....................................................... 58419-58420-E Memorandum Accounts.... 21344-63459-61164-58221-49492-61165-61166-61167-53821-E ........ 50418-42841-42842-44948-44949-44950-62634-62635-44953-42849-42850-42851-E ........ 63460-61170-55623-61171-42856-61172-61173-52033-50419-55048-61174-42863-E ........ 42864-56204-56205-51235-45920-51236-42870-50209-42872-42873-50421-46539-E ........ 42876-42877-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ........ 53321-53322-47098-52551-52552-49928-56235-56236-56237-55144-55145-44029-E ........ 53016-57156-57157-51163-51164-51165-51166-51167-51168-51169-51170-51171-E ........ 51244-55806-56393-56394-56395-56396-56397-56398-56399-58978-59917-59918-E California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E .................................................................................................. 36472-38847-56788-60261-E Optional Pricing Adjustment Clause (OPAC) ........................... 27670-27671-27673-27674-E (T) (T) (Continued) (To be inserted by utility) Advice 3762-E Decision 18-02-018 1D3 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Mar 9, 2018 Effective Resolution
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