Details for: 3822-E (Part 1 of 1).pdf


Click on the image for full size preview

Document data

ka

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

July 11, 2018
ADVICE 3822-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
Establishment of the Aliso Canyon Energy Storage Balancing
Account Pursuant to Decision 18-06-009

SUBJECT:

In compliance with Decision (D.)18-06-009 Southern California Edison Company (SCE)
hereby submits for approval by the California Public Utilities Commission (CPUC or
Commission) the following changes to its tariffs. The revised tariffs are listed on
Attachment A and are attached hereto.
PURPOSE
Pursuant to Ordering Paragraph (OP) 4 of D.18-06-009, SCE submits this advice letter
to establish Preliminary Statement Part OOO, Aliso Canyon Energy Storage Balancing
Account (ACESBA), to record the Tesla and General Electric Projects’ actual revenue
requirements. In addition, in this advice letter SCE modifies Preliminary Statement Part
RR, New System Generation Balancing Account (NSGBA), to allow for annual transfers
from the ACESBA to the NSGBA for rate recovery purposes.
BACKGROUND
In response to Governor Brown’s January 6, 2016 proclamation of a state of emergency
in Los Angeles County due to the Aliso Canyon Natural Gas Storage Facility well failure,
which occurred in the third quarter of 2015, and subsequent moratorium imposed on
gas injections into the Aliso Canyon facility, on May 31, 2015, the Commission issued
Resolution E-4791 (Resolution). This Resolution authorized SCE to hold a solicitation
(the Aliso Canyon Energy Storage (ACES) Request for Offers (RFO), and seek
Commission approval and obtain cost recovery treatment for any contracts resulting
from the ACES RFO through a Tier 3 Advice Letter.1 The Resolution also directed SCE
to file an application for a reasonableness review for procurement of any utility-owned
energy storage facilities developed pursuant to the Resolution.

1

On August 15, 2016, SCE submitted Tier 3 Advice Letters seeking approval of the thirdparty contracts that resulted from its ACES RFO. The Commission approved those
contracts in Resolution E-4804 on September 15, 2016.

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





- Page 1 -

ADVICE 3822-E (U 338-E) -2- July 11, 2018 In response to the Resolution, SCE procured two energy storage systems from Tesla Motors sited adjacent to the Mira Loma substation in Ontario, California and two energy storage systems from General Electric (GE) for Enhanced Gas Turbines (EGTs) located at SCE’s Peaker Generating Stations in Norwalk and Rancho Cucamonga, California. On May 10, 2016, SCE sent a letter to the Commission’s Executive Director informing him that SCE had activated its Catastrophic Event Memorandum Account (CEMA) to record and track its costs incurred to mitigate electric reliability issues that could occur in summer and winter months stemming from natural gas curtailments caused by the moratorium on injections into the Aliso Canyon Natural Gas Storage Facility. SCE recorded actual O&M expenses and capital-related revenue requirements for the Tesla and GE Projects in the Aliso Canyon CEMA. On March 30, 2017, SCE filed Application (A.)17-03-020 for authority to recover costs associated with the solicitation, site assessment, and construction of the Tesla and GE energy storage projects. On June 21, 2018, per D.18-06-009, the Commission concluded that the four energy storage projects procured by SCE satisfy Resolution E-4791 requirements, and, in particular, provide for enhanced system reliability in the Los Angeles Basin. The Commission finds that SCE’s projects’ costs are reasonable and thus grants cost recovery in accordance with the provisions of D.18-06-009. In particular, the Commission grants authority for SCE to implement the ACESBA to record the projects’ actual costs. SCE is authorized to include in its New System Generation (NSG) rates the approved costs for the Tesla and General Electric Projects up until the time the costs are included in SCE’s 2021 General Rate Case (GRC).2 The NSG rates are recovered from all benefitting customers using the Cost Allocation Mechanism (CAM). D.18-06-009 states that in order to determine the proxy net revenues of the Tesla Projects, SCE will use the methodology as described in the Joint Memorandum of Understanding of the joint parties, as adopted in D.15-11-041. To determine cost recovery for the GE EGT projects, SCE will use a modified CAM above-market true-up calculation to ensure that all financial benefits of the EGTs, such as spinning reserve revenues, are recognized. In this manner, forecast net costs used for setting prospective rates will be the same as those used in the Energy Resource Recovery Account (ERRA) forecast, and the true-up, which will be calculated using actual costs and market. PROPOSED TARIFF CHANGES Pursuant to OP 4 of D.18-06-009, this advice letter establishes Preliminary Statement Part OOO, Aliso Canyon Energy Storage Balancing Account (ACESBA), to record the Tesla and General Electric projects’ actual revenue requirements. The ACESBA will separately account for and record the revenue requirements for the Tesla projects and the General Electric projects. SCE will transfer the Aliso Canyon Energy Storage-related recorded activity in the Aliso Canyon CEMA to the ACESBA. The ACESBA shall be used until the remaining cost recovery can be transitioned to SCE’s 2021 GRC. 2 SCE may submit an advice letter in November 2018 and 2019 to set the upcoming year’s Tesla and GE Projects forecast annual revenue requirement.
- Page 2 -

ADVICE 3822-E (U 338-E) -3- July 11, 2018 Additionally, pursuant to OP 5.e of D.18-06-009, SCE modifies Preliminary Statement Part RR, NSGBA, to: (1) include a debit entry in the NSGBA to record the annual transfer from the ACESBA. Subsequent ERRA reasonableness review of the Tesla and General Electric Projects’ expenses is limited to ensuring that all recorded balancing account entries related to the Tesla and General Electric Projects are stated correctly and are consistent with Commission decisions.3 No cost information is required for this advice letter. This advice letter will not cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to OP 2 of D.18-06-009, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE This advice letter will become effective on August 10, 2018, the 30th calendar day after the date submitted. NOTICE Anyone wishing to protest this advice letter 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 letter. Protests should be submitted to: CPUC, Energy Division Attention: 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 should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: 3 If the actual capital expenditures or O&M expenses of the Tesla and General Electric Projects exceed the amounts authorized in D.18-06-009, SCE is to submit the aboveauthorized amounts for a reasonableness review in a future GRC or other appropriate proceeding and obtain Commission approval to recover those amounts in rates.
- Page 3 -

ADVICE 3822-E (U 338-E) -4- July 11, 2018 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 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 letter to the interested parties shown on the attached GO 96-B and A.17-03-020 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) 302-4039. For changes to all other service lists, please contact the CPUC’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 submitting and keeping the advice letter at SCE’s corporate headquarters. To view other SCE advice letters submitted with the CPUC, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters. For questions, please contact Kimwuana Blebu at (626) 302-2403 or by electronic mail at Kimwuana.Blebu@sce.com. Southern California Edison Company /s/ Gary A. Stern /s/ Gary A. Stern, Ph.D. Gary A. Stern, Ph.D. GAS:kb:jm Enclosures
- Page 4 -

CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER 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 Submitted/ Received Stamp by CPUC) WATER = Water 3822-E Tier Designation: 2 Establishment of the Aliso Canyon Energy Storage Balancing Account Pursuant to Decision 1806-009 Keywords (choose from CPUC listing): Compliance, Balancing Account AL type:  Monthly  Quarterly  Annual  One-Time  Other If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 18-06-009 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: 8/10/18 No. of tariff sheets: -5- 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: Preliminary Statement Part RR, Preliminary Statement Part OOO, and Table of Contents Service affected and changes proposed1: Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed. None
- Page 5 -

Protests and all other correspondence regarding this AL are due no later 20 days, July 26, 2018, after the date of this submittal, 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
- Page 6 -

Public Utilities Commission 3822-E Cal. P.U.C. Sheet No. Title of Sheet Revised 64072-E Preliminary Statement Part RR Original 64073-E Original 64074-E Table of Contents Table of Contents Cancelling Cal. P.U.C. Sheet No. Preliminary Statement Part OOO Preliminary Statement Part OOO Revised 64075-E Revised 64076-E Attachment A Revised 62779-E Revised 64014-E Revised 63400-E 1
- Page 7 -

Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised Cal. PUC Sheet No. Cal. PUC Sheet No. PRELIMINARY STATEMENT 64072-E 62779-E Sheet 3 (Continued) RR. NEW SYSTEM GENERATION BALANCING ACCOUNT (NSGBA) (Continued) 2. Entries to the NSGBA shall be made as follows: a. A debit entry equal to the monthly amount of the APGRR calculated by multiplying the applicable MDP (as determined above) to the annual APGRR, less a provision for FF&U. b. A debit entry to record costs associated with PPA contracts, including: 1. Capacity and energy costs, including QF/CHP Program contracts that are eligible for net capacity cost recovery, 2. Applicable energy and fuel costs, and c. Credit entries to record: 1. Energy and ancillary service revenues during periods in which the generating facility is not subject to an energy auction contract; or 2. Recorded billed and unbilled revenue from a non-bypassable wires charge applicable to all benefiting customers1. 3. Energy revenues for QF/CHP Program contracts that are eligible for net capacity cost recovery. d. One-time transfer of amounts recorded in the New System Generation Memorandum Account, consistent with Resolution E-4115. e. A debit or credit entry to record the monthly transfer from the NSG Sub-account of the Local Capacity Requirements Products Balancing Account (LCRPBA). f. A debit entry to record the annual December 31st transfer from the Aliso Canyon Energy Storage Balancing Account (ACESBA). (N) (N) g. A credit (or debit) entry to record the difference between the net capacity costs recorded in the NSGBA account and the net capacity costs as calculated using the Joint Party Proposal (JPP) Proxy method established in D. 07-09-044. (T) Interest expense shall accrue monthly by applying an applicable interest rate to the average monthly NSGBA balance. The interest rate shall be one-twelfth of the Federal Reserve three-month Commercial Paper Rate – Non-financial, from the Federal Reserve Statistical Release H.15. If in any month a nonfinancial rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate – Financial. 1 “Benefiting customers” are defined in D.06-07-029 as all Bundled Service Customers, Direct Access Customers, Community Choice Aggregation Customers, and customers who are located or locate within the distribution territory of an investor-owned utility but take service from a local publicly-owned utility subsequent to the date that the new generation goes into service. (T) (Continued) (To be inserted by utility) Advice 3822-E Decision 18-06-009 3D7 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Jul 11, 2018 Effective Resolution
- Page 8 -

Southern California Edison Rosemead, California (U 338-E) Original Cal. PUC Sheet No. Cal. PUC Sheet No. Cancelling Preliminary Statement 64073-E Sheet 1 OOO. Aliso Canyon Energy Storage Balancing Account (ACESBA) 1. Purpose The purpose of the Aliso Canyon Energy Storage Balancing Account (ACESBA) is to record the Tesla and General Electric projects’ actual revenue requirements. The ACESBA will separately account for and record the revenue requirements for the Tesla projects and the General Electric projects. 2. Operation of the ACESBA Monthly entries to the ACESBA shall be determined as follows: a. b. A debit entry equal to the recorded incremental O&M expenses; c. A debit entry equal to the applicable labor loadings authorized in the General Rate Case; d. A debit entry equal to the capital-related revenue requirement which includes depreciation expense, return on rate base at the currently authorized rate of return on rate base and applicable taxes, such as income and ad valorem taxes; and e. 3. An initial transfer of the Aliso Canyon Catastrophic Event Memorandum Account ending balance to the ACESBA; A credit entry to transfer the December 31st balance of the ACESBA to the New System Generation Balancing Account. Interest shall accrue monthly to the ACESBA by applying one-twelfth of the threemonth Commercial Paper, as reported by the Federal Reserve, to the average monthly balance in the ACESBA. (Continued) (To be inserted by utility) Advice 3822-E Decision 18-06-009 1D8 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Jul 11, 2018 Effective Resolution
- Page 9 -

Southern California Edison Rosemead, California (U 338-E) Original Cancelling Cal. PUC Sheet No. Cal. PUC Sheet No. Preliminary Statement 64074-E Sheet 2 (Continued) OOO. Aliso Canyon Energy Storage Balancing Account (ACESBA) (Continued) 2. Disposition and Review Procedures Pursuant to OP 4 of D.18-06-009, the ACESBA shall be used until the remaining cost recovery can be transitioned to SCE’s 2021 General Rate Case (GRC). The entries recorded in the ACESBA will be reviewed in SCE’s annual ERRA Review proceeding and review of the Tesla and General Electric Projects’ expenses is limited to ensuring that all recorded balancing account entries related to the Tesla and General Electric Projects are stated correctly and are consistent with Commission decisions.i i If the actual capital expenditures or O&M expenses of the Tesla and General Electric Projects exceed the amounts authorized in D. 18-06-009, SCE is to submit the above-authorized amounts for a reasonableness review in a future GRC or other appropriate proceeding and obtain Commission approval to recover those amounts in rates. (To be inserted by utility) Advice 3822-E Decision 18-06-009 2D7 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Jul 11, 2018 Effective Resolution
- Page 10 -

Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised TABLE OF CONTENTS Cal. PUC Sheet No. Cal. PUC Sheet No. 64075-E 64014-E Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES ....64075-63036-64076-63956-63957-63958-63959-E ........................................................................................................... 64015-63960-63961-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 63044-E TABLE OF CONTENTS - RULES ............................................................................................ 63045-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 58961-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 59608-61801-61576-61817-63318-61631-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.... 21344-62633-61164-58221-49492-61165-61166-61167-53821-E ........ 50418-42841-42842-44948-44949-44950-62634-62635-44953-42849-42850-42851-E ........ 61169-61170-55623-61171-42856-61172-61173-52033-50419-55048-61174-42863-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 .................................................................................................. 36472-38847-56788-63841-E Optional Pricing Adjustment Clause (OPAC) ........................... 27670-27671-27673-27674-E (Continued) (To be inserted by utility) Advice 3822-E Decision 18-06-009 1D4 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Jul 11, 2018 Effective Resolution
- Page 11 -

Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised TABLE OF CONTENTS Cal. PUC Sheet No. Cal. PUC Sheet No. 64076-E 63400-E Sheet 3 (Continued) Cal. P.U.C. Sheet No. PRELIMINARY STATEMENT: (Continued) RR. New System Generation Balancing Account ................................ 57975-57976-64072-57783-E SS. Songs 2&3 Steam Generator Removal And Disposal Balancing Account........... 45404-53305-E .............................................................................................................................. 53306-45407-E TT. SONGS Cost of Financing Balancing Account ............................................................... 56188-E UU. Not In Use .................................................................................................................................. -E VV. Medical Programs Balancing Account....................................................... 60662-57978-44979-E WW. Not in Use ................................................................................................................................. -E XX. Low Carbon Fuel Standard Revenue Balancing Account .................................... 56447-56448-E YY. Base Revenue Requirement Balancing Account .......................... 60663-60664-54112-51724-E .................................... 57981-51726-51727-55215-54441-57982-59868-57984-58088-57986-E ZZ. Energy Resource Recovery Account ..........51729-57987-51271-51730-58207-57786-57787-E ................................................................................. 58208-57789-63398-55221-56259-55223-E AAA. Post Test Year Ratemaking Mechanism. ................................................ 57988-60665-57990-E BBB. Not In Use ................................................................................................................................ -E CCC. Cost of Capital Mechanism ......................................................................62451-62452-62453-E DDD. 2010-2012 On Bill Financing Balancing Account .......................................................... 55859-E EEE Not in Use ................................................................................................................................ -E FFF Electric Program Investment Charge Balancing Account-California Energy Commission .......... ............................................................................................................................ 50176-50177-E GGG Electric Program Investment Charge Balancing Account-Southern California Edison ............... ............................................................................................................................ 50178-50179-E HHH Electric Program Investment Charge Balancing Account-California Public Utilities Commission ....................................................................................................................................... 50180-E III New Solar Homes Partnership(NSHP) Program Balancing Account (NSHPPBA)……..59581-E JJJ Aliso Canyon Demand Response Program Balancing Account (ACDRPBA)…..59847-59848-E ……………………………………………………………………………………...…...59849-59850-E RRR Integrated Distributed Energy Resources Shareholder Incentive Award Balancing Account (iDERSIABA)……………………………………………………………………………...……61284-E LLL Integrated Distributed Energy Resources Contract Costs Balancing Account (iDERCCBA)…… ……………………………………………………………………………………….………….61285-E MMM Distributed Resources Plan Demonstration Balancing Account (DRPDBA)……61982-61983-E NNN Transportation Electrification Portfolio Balancing Account (TEPBA)….63233-63234-63235-E …………………………………………………………………………………………………...63236-E OOO Aliso Canyon Energy Storage Balancing Account (ACESBA)………………….64073-64074-E (T) (N) (Continued) (To be inserted by utility) Advice 3822-E Decision 18-06-009 3D6 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Jul 11, 2018 Effective Resolution
- Page 12 -