Details for: 3863-E (Part 1 of 1).pdf


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

September 12, 2018
ADVICE 3863-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
Implementation of the 2015 Energy Resource Recovery
Account Review Proceeding in Accordance with Decision
18-08-007

SUBJECT:

PURPOSE
In compliance with Ordering Paragraph (OP) 6 of Decision (D.)18-08-007, Southern
California Edison Company (SCE) submits this advice letter to implement the authority
granted within the decision. SCE will include the rate change related to this decision in
its year-end Consolidated Revenue Requirement and Rate Change Advice Letter.
BACKGROUND
On April 1, 2016, SCE submitted Application (A.)16-04-001, for a California Public
Utilities Commission (Commission) finding that its procurement-related and other
operations for the record period January 1, 2015 through December 31, 2015, complied
with its adopted procurement plan; for verification of its entries in the Energy Resource
Recovery Account (ERRA) and other regulatory accounts; and for the net refund of
$0.082 million recorded in two memorandum accounts.
On June 29, 2016, SCE submitted supplemental testimony to request a Commission
finding that the entries recorded in the Department of Energy Litigation Memorandum
Account (DOELMA) are appropriate, correctly stated, and in compliance with
Commission decisions. In addition, SCE requested approval of SCE’s proposed
method of the disposition of the net balance in the (DOELMA): (1) credit $30.748
million to the Nuclear Decommissioning Adjustment Mechanism (NDAM), (2) credit
$3.261 million to the generation subaccount of the Base Revenue Requirement
Balancing Account (BRRBA), and (3) reduce the San Onofre Nuclear Generating
Station (SONGS) Units 2 and 3 regulatory asset by $71.555 million ($73.016 million less
$1.461 million in litigation/consultant costs), including all interest accrued up to the time
of the transfer.

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





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ADVICE 3863-E (U 338-E) -2- September 12, 2018 On August 9, 2018, the Commission adopted D.18-08-007 resolving the following issues between SCE and the Public Advocates Office (Cal PA): • Least Cost Dispatch (LCD) Metrics: The Commission found no justification for imposing additional LCD metrics requirements on SCE at this time, as proposed by Cal PA. The Commission concluded that SCE had justified it achieved LCD during the 2015 Record Period, consistent with the requirements of D.15-05-007. • Independent Review of SCE’s Forecasting and Modeling Tools (Including Hydro): The Commission concluded that SCE made an adequate showing and thus declined to adopt Cal PA’s recommendations for an independent review of forecasting and modeling tools. • California Independent System Operator (CAISO) Commitment Cost Cap Exceptions for 2012-2015: The Commission found no reasonable basis to impose a disallowance on SCE for the impact of CAISO commitment cost calculation errors. The Commission also found no evidence that SCE’s current practices failed to meet the requirements of SOC 4. • Bidding Activity Reporting Requirements: The Commission declined to adopt Cal PA’s recommendation to impose a requirement for SCE to document and explain every occasion when a resource that was bid below the Locational Marginal Price and was not dispatched by the CAISO. Also, SCE is not required to submit non-suspicious non-awards as Customer Inquiry and Dispute Information tickets to CAISO. • LCD Hydro Issues: The Commission found no deficiencies in SCE’s existing hydro models, and therefore, found no basis to expand SCE’s existing reporting requirements for hydro and pumped storage imposed in D.15-05-007. • Renewables: Although the Commission recognized the merit of considering additional LCD criteria application to dispatchable renewable resources, the Commission concluded that any further consideration of additional LCD showing criteria (applicable to dispatchable renewable resources) should be addressed in a procedural forum where Cal PA and all of the investor-owned utilities (IOUs) can participate in an integrated and coordinated fashion. • LCD for Demand Response (DR) Resources: The Commission expects SCE to follow through with review of its DR resource reports for compliance with the metrics required by D.15-05-007 and correct any shortcomings, beginning with its next ERRA Compliance Review submittal. As to expanding the requirements of D.15-05-007, the Commission agreed with SCE that any revisions should be done in a procedural forum in which all IOUs and Cal PA can participate in an integrated fashion.
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ADVICE 3863-E (U 338-E) -3- September 12, 2018 • Mountainview Generating Station Outage: The Commission concluded that SCE was reasonable and prudent with respect to the selection of Accurate Machine & Tolling (AM&T) as SCE’s contractor. The Commission separately found there to be insufficient evidence to determine whether SCE was reasonable and prudent in its management of AM&T during the performance of the maintenance work.1 • Review of Greenhouse Gas (GHG) Compliance: The Commission concluded that SCE’s current processes for reporting GHG compliance requirements are adequate, and declined to adopt Cal PA’s proposals for further requirements. In addition, in D.18-08-007, the Commission approved SCE’s proposed disposition of the net balance in the DOELMA. As such, in August 2018 SCE will (1) credit $30.748 million to the NDAM, (2) credit $3.261 million to the generation subaccount of BRRBA, and (3) reduce the SONGS Units 2 and 3 regulatory asset by $71.555 million ($73.016 million less $1.461 million in litigation/consultant costs), including all interest accrued up to the time of the transfer.2 SCE will reflect the NDAM credit of $30.748 million (including interest) and the BRRBA credit of $3.261 million (including interest) in its January 1, 2019 rate change. Finally, the Commission directs SCE to refund to customers $82,000 due to a net overcollection in the Renewables Portfolio Standard Costs Memorandum Account and the Project Development Division Memorandum Account. SCE will reflect this $82,000 net refund (including interest) in rates when SCE makes its rate change on January 1, 2019. TIER DESIGNATION Pursuant to OP 6 of D.18-08-007, this advice letter is submittied with a Tier 1 designation. EFFECTIVE DATE This advice letter will become effective on September 12, 2018, the date submitted. 1 Per D.18-08-007, this proceeding will remain open for additional fact gathering related to the Mountainview outage. The Commission directed the assigned Administrative Law Judge (ALJ) to seek additional information as necessary to complete the record of this proceeding, and to issue a proposed decision upon that determination. 2 SCE implemented the reduction to the SONGS Units 2 and 3 regulatory asset in Advice 3838-E.
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ADVICE 3863-E (U 338-E) -4- September 12, 2018 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 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 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 submit 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.16-04-001 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 Commission’s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov.
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ADVICE 3863-E (U 338-E) -5- September 12, 2018 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 Commission, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters. For questions, please contact John Montanye at (626) 302-2035 or by electronic mail at John.Montanye@sce.com. Southern California Edison Company /s/ Gary A. Stern, Ph.D. Gary A. Stern, Ph.D. GAS:jm:jm
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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: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Darrah Morgan Phone #: (626) 302-2086 E-mail: Darrah.Morgan@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 3863-E Subject of AL: Implementation of the 2015 Energy Resource Recovery Account Review Proceeding in Accordance with Decision 18-08-007 Keywords (choose from CPUC listing): Compliance AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 18-08-007 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: 9/12/18 No. of tariff sheets: -0- 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: None Service affected and changes proposed1: Pending advice letters that revise the same tariff sheets: None 1 Discuss in AL if more space is needed. Clear Form
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Protests and all other correspondence regarding this AL are due no later than 20 days 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, CA 94102 Email: EDTariffUnit@cpuc.ca.gov Name: Gary A. Stern, Ph.D. Title: Managing Director, State Regulatory Operations Utility Name: Southern California Edison Company Address: 8631 Rush Street City: Rosemead Zip: 91770 State: California Telephone (xxx) xxx-xxxx: (626) 302-9645 Facsimile (xxx) xxx-xxxx: (626) 302-6396 Email: advicetariffmanager@sce.com Name: Laura Genao c/o Karyn Gansecki Title: Managing Director, State Regulatory Affairs Utility Name: Southern California Edison Company Address: 601 Van Ness Avenue, Suite 2030 City: San Francisco State: California Zip: 94102 Telephone (xxx) xxx-xxxx: (415-929-5515 Facsimile (xxx) xxx-xxxx: (415) 929-5544 Email: karyn.gansecki@sce.com Clear Form
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ENERGY Advice Letter Keywords Affiliate Direct Access Preliminary Statement Agreements Disconnect Service Procurement Agriculture ECAC / Energy Cost Adjustment Qualifying Facility Avoided Cost EOR / Enhanced Oil Recovery Rebates Balancing Account Energy Charge Refunds Baseline Energy Efficiency Reliability Bilingual Establish Service Re-MAT/Bio-MAT Billings Expand Service Area Revenue Allocation Bioenergy Forms Rule 21 Brokerage Fees Franchise Fee / User Tax Rules CARE G.O. 131-D Section 851 CPUC Reimbursement Fee GRC / General Rate Case Self Generation Capacity Hazardous Waste Service Area Map Cogeneration Increase Rates Service Outage Compliance Interruptible Service Solar Conditions of Service Interutility Transportation Standby Service Connection LIEE / Low-Income Energy Efficiency Storage Conservation LIRA / Low-Income Ratepayer Assistance Street Lights Consolidate Tariffs Late Payment Charge Surcharges Contracts Line Extensions Tariffs Core Memorandum Account Taxes Credit Metered Energy Efficiency Text Changes Curtailable Service Metering Transformer Customer Charge Customer Owned Generation Mobile Home Parks Name Change Transition Cost Transmission Lines Decrease Rates Non-Core Transportation Electrification Demand Charge Non-firm Service Contracts Transportation Rates Demand Side Fund Nuclear Undergrounding Demand Side Management Oil Pipelines Voltage Discount Demand Side Response PBR / Performance Based Ratemaking Wind Power Deposits Portfolio Withdrawal of Service Depreciation Power Lines Clear Form
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