Details for: 3921-E (Part 1 of 1).pdf


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

December 20, 2018
ADVICE 3921-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
Request for an Amendment to Southern California Edison
Company’s AB 57 Bundled Procurement Plan Appendix D

SUBJECT:

PURPOSE
Pursuant to Decision (D.)07-12-052 and D.12-01-033,1 Southern California Edison
Company (SCE) respectfully submits this advice letter to amend its 2014 Conformed
Assembly Bill (AB) 57 Bundled Procurement Plan (AB 57 BPP).2 Specifically, SCE
requests to update Appendix D by revising the current list of authorized brokerages to
include Blue Ocean Brokerage LLC (Blue Ocean) as an approved brokerage firm.
Included with this advice letter are Attachments A and B, which respectively are: (1) a
redlined version of AB 57 BPP Appendix D reflecting the aforementioned changes, and
(2) a clean version of AB 57 BPP Appendix D incorporating the changes that will be
implemented when this advice letter is approved.
JUSTIFICATION
SCE is currently authorized to transact with a multitude of brokerage firms. SCE is
seeking to expand its authorization to include the following brokerage firm: Blue Ocean.
The addition of this brokerage to SCE’s list of approved brokers will increase SCE's
procurement opportunities, facilitating SCE’s efforts to obtain the lowest-cost energy,
capacity, emissions credits and hedging options for its customers. The addition of this
firm to SCE’s list of approved brokers will enable SCE to transact products currently
authorized in SCE’s AB 57 BPP.
Access to a variety of brokerage firms is important for SCE’s customers because it can
provide enhanced price discovery, competition, and liquidity for physical, financial,
1

2

D.07-12-052, at Ordering Paragraph (OP) 26 (allowing updates or modifications to
procurement plans proposed between the biennial procurement plan via the Advice Letter
process); D.12-01-033, at 45, OP 1 (approving same authority).
SCE’s AB 57 BPP was submitted in Advice 3349-E on January 20, 2016, and approved via
a disposition letter, effective February 16, 2016.

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





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ADVICE 3921-E (U 338-E) -2- December 20, 2018 energy and energy-related products. SCE needs these products to hedge its customers’ capacity and energy-related product price exposure, and minimize the environmental and emissions costs associated with its portfolio. Brokers do not take title to transacted products but instead match anonymous buyers and sellers (collectively, “counterparties”) for a fee. Importantly, brokers do not reveal the names of potential counterparties to the market, but only reveal the identity of counterparties to each other after a match has been made based on price. Brokers aid in market price discovery and increase market liquidity by allowing numerous counterparties to anonymously share and access pricing information at the same time. Similar to other brokerage firms, Blue Ocean will match SCE with anonymous counterparties based on prices that are both visible to any interested market participant and representative of the market at the time of the transaction. This activity is critical in volatile energy markets where it is not feasible to contact each potential counterparty directly for each potential transaction. SCE requires new brokers to execute an SCE-form Brokerage Agreement that covers the applicable business terms, which includes confidentiality. Such an agreement does not obligate SCE to transact business with that broker, but rather, provides the capability to do so if pricing is favorable. Because brokers do not take title to transacted products, SCE assumes no additional risk or cost when it adds new brokers to its list of authorized brokers. Accordingly, SCE requests approval to add Blue Ocean to Appendix D of SCE’s AB 57 BPP. REQUEST FOR COMMISSION APPROVAL For the reasons stated above, SCE requests that its AB 57 BPP be revised, as discussed herein and as set forth in Attachments A and B. No cost information is required for this advice letter. This advice letter will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.2, this advice letter is submitted with a Tier 2 designation.
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ADVICE 3921-E (U 338-E) -3- December 20, 2018 EFFECTIVE DATE This advice letter will become effective on January 19, 2018, the 30th calendar day after the date submitted. SAFETY CONCERNS No impacts to safety are anticipated as a result of this advice letter as it does not provide authority for a specific transaction; rather, it amends SCE's AB 57 BPP by updating its list of Authorized Brokers and Exchanges. 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
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ADVICE 3921-E (U 338-E) -4- December 20, 2018 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 With a copy to: Mario E. Dominguez Attorney Southern California Edison Company 2244 Walnut Grove Avenue, 3rd Floor Rosemead, California 91770 Facsimile: (626) 302-6016 E-mail: Mario.E.Dominguez@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 R.13-12-010 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 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 Raffi Minasian at (626) 302-8905 or by electronic mail at Raffi.Minasian@sce.com Southern California Edison Company /s/ Gary A. Stern Gary A. Stern, Ph.D. GAS:rm:cm Enclosures
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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: 2 Advice Letter (AL) #: 3921-E Subject of AL: Request for an Amendment to Southern California Edison Company’s AB 57 Bundled Procurement Plan Appendix D Keywords (choose from CPUC listing): Compliance, Procurement AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Decisions 07-12-052 and 12-01-033 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: 1/19/19 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: 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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Appendix D Authorized Brokers and Exchanges
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Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY’S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN Sheet D-1 APPENDICES Authorized Brokers and Exchanges Brokerages Platform Platform Sponsors Date Launched Amerex American Energy Risk Management Automated Power Exchange BGC Financial, L.P. Private Investors Private Investors Private Investors Private Investors Partners: (99.9%) OTC Global Holdings, L.P and (0.1%) OTC Operating GP, LLC. (also owned by OTC Global Holdings, LP). These entities are owned by Private Investors Private Investors Private Investors Private investors Private investors Private Investors 1991 1991 1998 2008 Black Barrel Energy, L.P. Blue Ocean Brokerage LLC Cantor Fitzgerald Castlebridge Partners LLC CGS Brokerage LLC Choice Environmental, LLC Choice Natural Gas, LP Choice Power, LP Classic Energy, LLC Dorado Energy Servie LLC Edge Energy, LLC Energy Trade Management GP, LLC Equus Energy Group, LLC Evolution Markets Evolution Markets Futures LLC The Finerty Group GFI Brokers LLC ICAP Energy, LLC ICAP United, Inc. INFA Energy Brokers (To be inserted by utility) Decision 1D0 15-10-031 2013 2005 2009 2008 1945 1997 2003 2010 2005 2005 2014 2010 Private Investors Private Investors Private Investors Private Investors Parent: OTC Global Holdings, L.P., Owned by Private Investors Private Investors 1993 1993 2015 2006 2005 2005 2015 2018 2009 2010 2009 2010 Private Investors 2010 2010 Private Investors Subsidiary of Evolution Markets Private Investors Private Investors Intercapital Corporation (London Exchange) Publicly Traded Private Investors 2000 2010 2011 2000 1994 2005 2013 2015 2006 2005 2005 2009 2006 Issued by Gary A. Stern, Ph.D. Advice Date Commission Approved 2005 2006 Director (To be inserted by Cal. PUC) Date Filed Effective Resolution
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Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY’S Sheet D-2 CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Intercontinental Exchange (ICE) IVG Energy, Ltd Longevous Capital, LLC Natsource Transaction Services LLC Saddleback Energy Sage Refined Products Ltd Spectron TFS Energy Futures LLC Trident Brokerage Services LLC Tullet Prebon Americas Corp Valence Energy, LLC Walden Energy, LLC Brokers, Energy Companies Private Investors Trading Partners: FCStone, LLC and INTL Hanley, LLC Owned by Private Investors Private Investors 2000 2004 2010 2005 2006 2012 1994 2005 Private Investors Private Investors Private Investors TFS Brokers Private Investors 2002 2004 1988 1995 2013 2006 2018 2006 2005 2014 Subsidiary of Tullet Prebon, plc Parent: OTC Global Holdings, L.P., Owned by Private Investors Trading Partner: Hudson Capital Energy, LLC Owned by Private Investors 2004 2015 2009 2008 2003 2012 On-line Auctions Platform Date Launched World Energy Solutions, Inc. 1999 Date Commission Approved 2009 Exchanges Platform Date Launched ICE ICE Futures U.S., Inc. (IFUS) NASDAQ OMX NYMEX 2000 2012 1971 1882 Date Commission Approved 2007 2017 2013 2005 Clearing Firms Platform Date Launched Citigroup Global Markets, Inc. Macquarie Futures USA, Inc. Natural Gas Exchange Inc. (NGX) Newedge USA LLC 1892 2006 Date Commission Approved 2005 2010 1994 1987 2017 2005 (Continued) (To be inserted by utility) Gary A. Stern, Ph.D. Advice Decision 1D0 Issued by 15-10-031 Director (To be inserted by Cal. PUC) Date Filed Effective Resolution
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Appendix D Authorized Brokers and Exchanges
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Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY’S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN Sheet D-1 APPENDICES Authorized Brokers and Exchanges Brokerages Platform Platform Sponsors Date Launched Amerex American Energy Risk Management Automated Power Exchange BGC Financial, L.P. Private Investors Private Investors Private Investors Private Investors Partners: (99.9%) OTC Global Holdings, L.P and (0.1%) OTC Operating GP, LLC. (also owned by OTC Global Holdings, LP). These entities are owned by Private Investors Private Investors Private Investors Private investors Private investors Private Investors 1991 1991 1998 2008 Black Barrel Energy, L.P. Blue Ocean Brokerage LLC Cantor Fitzgerald Castlebridge Partners LLC CGS Brokerage LLC Choice Environmental, LLC Choice Natural Gas, LP Choice Power, LP Classic Energy, LLC Dorado Energy Servie LLC Edge Energy, LLC Energy Trade Management GP, LLC Equus Energy Group, LLC Evolution Markets Evolution Markets Futures LLC The Finerty Group GFI Brokers LLC ICAP Energy, LLC ICAP United, Inc. INFA Energy Brokers (To be inserted by utility) Decision 1D0 15-10-031 2013 2005 2009 2008 1945 1997 2003 2010 2005 2005 2014 2010 Private Investors Private Investors Private Investors Private Investors Parent: OTC Global Holdings, L.P., Owned by Private Investors Private Investors 1993 1993 2015 2006 2005 2005 2015 2018 2009 2010 2009 2010 Private Investors 2010 2010 Private Investors Subsidiary of Evolution Markets Private Investors Private Investors Intercapital Corporation (London Exchange) Publicly Traded Private Investors 2000 2010 2011 2000 1994 2005 2013 2015 2006 2005 2005 2009 2006 Issued by Gary A. Stern, Ph.D. Advice Date Commission Approved 2005 2006 Director (To be inserted by Cal. PUC) Date Filed Effective Resolution
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Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY’S Sheet D-2 CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Intercontinental Exchange (ICE) IVG Energy, Ltd Longevous Capital, LLC Natsource Transaction Services LLC Saddleback Energy Sage Refined Products Ltd Spectron TFS Energy Futures LLC Trident Brokerage Services LLC Tullet Prebon Americas Corp Valence Energy, LLC Walden Energy, LLC Brokers, Energy Companies Private Investors Trading Partners: FCStone, LLC and INTL Hanley, LLC Owned by Private Investors Private Investors 2000 2004 2010 2005 2006 2012 1994 2005 Private Investors Private Investors Private Investors TFS Brokers Private Investors 2002 2004 1988 1995 2013 2006 2018 2006 2005 2014 Subsidiary of Tullet Prebon, plc Parent: OTC Global Holdings, L.P., Owned by Private Investors Trading Partner: Hudson Capital Energy, LLC Owned by Private Investors 2004 2015 2009 2008 2003 2012 On-line Auctions Platform Date Launched World Energy Solutions, Inc. 1999 Date Commission Approved 2009 Exchanges Platform Date Launched ICE ICE Futures U.S., Inc. (IFUS) NASDAQ OMX NYMEX 2000 2012 1971 1882 Date Commission Approved 2007 2017 2013 2005 Clearing Firms Platform Date Launched Citigroup Global Markets, Inc. Macquarie Futures USA, Inc. Natural Gas Exchange Inc. (NGX) Newedge USA LLC 1892 2006 Date Commission Approved 2005 2010 1994 1987 2017 2005 (Continued) (To be inserted by utility) Gary A. Stern, Ph.D. Advice Decision 1D0 Issued by 15-10-031 Director (To be inserted by Cal. PUC) Date Filed Effective Resolution
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