Details for: PGE AL 5402-E.pdf

Click on the image for full size preview

Document data

Erik Jacobson
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 8, 2018

Advice 5402-E
(Pacific Gas and Electric Company ID U 39 E)

Public Utilities Commission of the State of California

2017 Vegetation Management Balancing Account

In accordance with Preliminary Statement, Part BU--Vegetation Management Balancing
Account (VMBA), Pacific Gas and Electric Company (PG&E) submits for filing a
summary of the entries made to the VMBA for the period from January 1, 2017, through
December 31, 2017. In 2017, the recorded expenses to the VMBA exceeded the
amount adopted in the 2017 General Rate Case (GRC) Decision (D.) 17-05-013. Since
the account is a one-way balancing account, no account disposition is required for the
2017 VMBA under-collected balance.
This submittal will not increase any rate or charge, cause the withdrawal of service or
conflict with any other rate schedule or rule.
In PG&E’s 1999 GRC D.00-02-046, the California Public Utilities Commission
(Commission or CPUC) adopted a one-way balancing account mechanism to track
vegetation management expenditures.
Various Commission decisions, including
D.17-05-013, have continued the VMBA balancing account mechanism through the
GRC cycles. The VMBA provides that PG&E will file an annual advice letter
summarizing the entries to the VMBA for the prior year and a proposal for the
disposition of any credit balance in the account.
In PG&E’s 2017 GRC (A.15-09-001), the Commission adopted a Settlement Agreement
(Agreement) regarding the distribution revenue requirement (see D.17-05-013). Under
the Agreement, PG&E is to continue using the one-way balancing account for
vegetation management. In the Agreement, $201,033,0001 was adopted as a
reasonable forecast of vegetation management expense for 2017. Excluding the
allocated Federal Energy Regulatory Commission (FERC) jurisdiction amounts, the net
adopted 2017 expense is $200,027,511.

For this advice filing, PG&E has translated the 2017 GRC imputed adopted regulatory value
(Agreement, Appendix A) to reflect PG&E’s new cost allocation methodology, which was
implemented in 2016.


- Page 1 -

Advice 5402-E -2- October 8, 2018 2017 VMBA Balance Entries made to the VMBA for the period January 1, 2017, through December 31, 2017, are shown in Table 1. The recorded expenses for 2017 totaled $200,448,588, an amount that excludes expenses allocated to FERC jurisdictional activities. These expenses were partially offset by a reduction in interest expense associated with undercollections in the early months of 2017 that totaled an interest credit of $25,470. The difference between the amount adopted in D.17-05-013 and the recorded expenses for 2017 is an over-spending of $395,607. This amount represents an undercollection, or debit balance, to the VMBA. Since the account is a one-way balancing account, this debit balance is not recoverable from customers. Protests Anyone wishing to protest this advice letter may do so by letter sent via U.S. mail, facsimile or E-mail, no later than October 29, 2018, which is 21 days2 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: 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 either 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: 2 The 20-day protest period concludes on a weekend, therefore, PG&E is moving this date to the following business day.
- Page 2 -

Advice 5402-E -3- October 8, 2018 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 2 advice submittal become effective on November 7, 2018, which is 30 days from the date of this submittal. 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 the parties on the service list for A.15-09-001. Address changes to the General Order 96-B service list should be directed to PG&E at email address For changes to any other service list, please contact the Commission’s Process Office at (415) 7032021 or at Send all electronic approvals to Advice letter submittals can also be accessed electronically at: /S/ Erik Jacobson Director, Regulatory Relations Attachments cc: Service List A.15-09-001
- Page 3 -

ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Pacific Gas and Electric Company (ID U39E) Utility type: ELC GAS PLC ✔ HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Yvonne Yang Phone #: (415)973-2094 E-mail: E-mail Disposition Notice to: EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 2 Advice Letter (AL) #: 5402-E Subject of AL: 2017 Vegetation Management Balancing Account 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 #: D.17-05-013 and D.00-02-046 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: Yes Yes ✔ No ✔ No 11/7/18 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 proposed1: N/A Pending advice letters that revise the same tariff sheets: N/A 1 Discuss in AL if more space is needed. Clear Form
- Page 4 -

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: Name: Erik Jacobson, c/o Megan Lawson Title: Director, Regulatory Relations Utility Name: Pacific Gas and Electric Company Address: 77 Beale Street, Mail Code B13U City: San Francisco, CA 94177 Zip: 94177 State: California Telephone (xxx) xxx-xxxx: (415)973-2093 Facsimile (xxx) xxx-xxxx: (415)973-3582 Email: Name: Title: Utility Name: Address: City: State: District of Columbia Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Email: Zip: Clear Form
- Page 5 -

Advice 5402-E October 8, 2018 Attachment 1 Table 1 Vegetation Management Balancing Account Summary January 1, 2017, through December 31, 2017 2017 GRC Adopted Estimate $ 201,033,000 Less FERC Allocation (0.50%) TOTAL 2017 Recorded Expenses (1,005,489) $ 200,027,511 $ 201,456,193 Less FERC Allocation (0.50%) TOTAL (1,007,605) $ 200,448,588 Over (Under) Expenditure $ 421,077 Accrued Interest (through December 31, 2017) TOTAL (25,470) $ 395,607
- Page 6 -

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 County of Tehama - Department of Public Works Crossborder Energy Crown Road Energy, LLC Davis Wright Tremaine LLP Day Carter Murphy Dept of General Services Don Pickett & Associates, Inc. Douglass & Liddell Downey & Brand Ellison Schneider & Harris LLP Energy Management Service Evaluation + Strategy for Social Innovation 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 Keyes & Fox LLP 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 McKenzie & Associates Modesto Irrigation District Morgan Stanley NLine Energy, Inc. NRG Solar Office of Ratepayer Advocates OnGrid Solar Pacific Gas and Electric Company Pioneer Community Energy 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
- Page 7 -