Details for: PGE AL 5456-E.pdf


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Erik Jacobson
Director
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

December 24, 2018

Advice 5456-E
(Pacific Gas and Electric Company ID U 39 E)

Public Utilities Commission of the State of California
Subject:

Notice of Federal Energy Regulatory Commission Rate Filing for
Annual Updates to the Transmission Revenue Balancing Account
Adjustment, the Reliability Services Rates, the End-Use Customer
Refund Balancing Account Adjustment, and the Transmission
Access Charge Balancing Account Adjustment

Purpose
In compliance with California Public Utilities Commission (“Commission” or “CPUC”)
Resolution E-3930, Pacific Gas and Electric Company (“PG&E”) submits this advice
letter to notify the Commission of PG&E’s December 7, 2018 filing with the Federal
Energy Regulatory Commission (“FERC”), in FERC Docket No. ER19-520-000,
requesting transmission rate changes for PG&E’s retail electric customers. That FERC
filing requested annual updates to the transmission revenue requirements (“TRRs”) and
associated rates in PG&E’s Transmission Owner (“TO”) Tariff related to four of PG&E’s
FERC balancing accounts: the Transmission Revenue Balancing Account (“TRBA”),
the Reliability Services Balancing Account (“RSBA”), the End-Use Customer Refund
Balancing Account (“ECRBA”), and the Transmission Access Charge Balancing
Account (“TACBA”) (the “2019 Balancing Account Filing”). The filing requested an
effective date of March 1, 2019.
Background
PG&E’s TO Tariff specifies the rates and charges for transmission access to PG&Eowned facilities that are part of the California Independent System Operator
Corporation (“CAISO”) controlled grid. The base transmission rates in the TO Tariff,
along with the four transmission rate adjustments discussed in this advice letter filing
make up the total transmission rates for PG&E’s retail customers.





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Advice 5456-E -2- December 24, 2018 TRBAA The TRBA Adjustment (“TRBAA”) is the ratemaking mechanism through which Transmission Revenue Credits flow through to TO Tariff retail and wholesale transmission customers. In its 2019 Balancing Account Filing, PG&E proposed revisions to: 1. The retail TRBAA TRR and the resulting retail TRBAA rate; and 2. The wholesale High and Low Voltage TRRs used by the CAISO to calculate the CAISO Transmission Access Charge (“TAC”) rates under the CAISO Tariff. The retail TRBAA rate revision is based on: (1) the TRBA balance, which includes the principal TRBA balance as of October 31, 2018, the projected change for the months of November 2018 through February 2019, and interest;; (2) PG&E’s TRBAA forecast, which is a forecast of Transmission Revenue Credits for 2019; and (3) an adjustment for Revenue Fees and Uncollectible Accounts (“RF&U”). The TRBA balance is a credit to end-use customers of $48,403,413, the TRBAA forecast is a credit of $175,973,218, and the RF&U adjustment is a credit of $2,479,362. The resulting 2019 retail TRBAA TRR is a credit to end-use customers of $226,855,994. To pass through this credit, PG&E proposed a 2019 TRBA retail rate of ($0.00283) per kWh, compared to the current retail rate of ($0.00301) per kWh. The total 2019 TRBAA wholesale revenue requirement used for calculating the CAISO’s TAC is a credit to customers of $186,313,981, which has been allocated to High and Low Voltage at $97,534,128 and $88,779,853, respectively. RS Rates FERC Opinion No. 459 approved a September 21, 2001, partial settlement allowing recovery of PG&E’s Reliability Services (“RS”) costs from retail TO Tariff customers. The TRR for the RS rate consists of three components: (1) the RSBA balance, which includes the principal balance of the RSBA as of October 31, 2018, the projected change for the months of November 2018 through February 2019, and interest; (2) the forecast of RS costs for 2019; and (3) an adjustment for RF&U. The total RS TRR used in the development of the retail 2019 RS rates is a credit to customers of $24,592,323. This amount consists of the RSBA balance, which is a credit of $73,511,280, plus the forecast of RS costs for 2019, which is a charge of $49,187,732, plus the RF&U adjustment, which is a credit of $268,775.
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Advice 5456-E -3- December 24, 2018 Adjustment to the RS Charge for Retail Rate Schedules E-19 and E-20 In addition to the annual adjustment described above, PG&E is also adjusting the E-19 and E-20 RS Charge retail rate schedules in this filing to correct an implementation error that PG&E discovered in the E-19 and E-20 retail rates that has affected those rates during the period January 1, 2018 through February 28, 2019. The error, including interest, amounts to an under-collection from retail E-19 and E-20 customers of $29,475,580. ECRBAA The ECRBA adjustment (“ECRBAA”) is a mechanism designed to refund over-collected transmission rate charges to PG&E’s end-use customers. ECRBAA is a credit or a charge equal to the refund or surcharge amount due to end-use customers, including interest. The ECRBAA consists of two components: (1) the ECRBA balance, which consists of the principal balance of the ECRBA as of October 31, 2018, the projected change for the months of November 2018 through February 2019, and interest; and (2) the forecast of refunds from the settlement of PG&E’s applicable TO Tariff rate case(s). The 2019 ECRBAA is a credit of $6,732,484. Current retail rates, which were made effective, subject to refund, in PG&E’s nineteenth TO Tariff (TO19) rate filing (Docket No. ER17-2154-000, et. al) will be replaced by the interim rates approved for implementation as of January 1, 2019 as part of the Settlement of TO19. The TO19 Settlement, which was approved by FERC on December 20, 2018, ties the final TO19 Revenue Requirement to the final outcome of PG&E’s eighteenth TO Tariff (TO18) rate proceeding at FERC. TO18 has been fully briefed and is awaiting a final FERC decision. As a result, this filing cannot include any refunds relating to TO18 or TO19 because the final TRRs for those rate case periods have not yet been determined. TACBAA The 2019 TACBAA rate consists of three components: (1) the projected balance of the TACBA as of February 28, 2019, including interest; (2) the forecasted TACBA costs and customer usage volumes for the next rate period; and (3) an adjustment for RF&U. The total revenue requirement used in the development of the 2019 TACBAA rate is $494,816,633, which is the sum of: the projected balance of the TACBA as of February 28, 2018, which is a charge of $41,337,614; the forecasted TACBA costs and customer usage volumes for the next rate period, which is a charge of $448,071,053; and the RF&U adjustment, which is a charge of $5,407,966. The corresponding TACBAA rate is $0.00618/kWh. This represents an increase from the March 1, 2018 TACBAA revenue requirement of $442,020,703 and the corresponding rate of $0.00553/kWh.
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Advice 5456-E -4- December 24, 2018 Compliance with Resolution E-3930 PG&E submits this advice letter pursuant to Process Element 3 of Resolution E-3930. Consistent with past practice, PG&E also provided the Commission with a complete copy of the 2019 Balancing Account Filing on the same date that it was filed with FERC, by service to the Commission’s Legal Division. In this advice letter, PG&E requests authority to revise each corresponding transmission rate component of its Commission-jurisdictional tariffs on the date FERC ultimately authorizes these changes to become effective, or as soon thereafter as possible, subject to refund, and to make corresponding adjustments to its total applicable Commission jurisdictional rates. Adjustments to total residential rates will be made pursuant to CPUC Decisions D.15-07-001 on residential rate reform and D18-08013 on transition to time-of-use rates. As anticipated under Process Element 4 of Resolution E-3930, PG&E will supplement this advice letter, or indicate in a separate advice letter that coincides with other retail rate changes, when the requested TRBAA, RS, and ECRBAA rate changes are accepted, modified, rejected or otherwise acted upon by FERC. These FERC rate changes will generally affect the rates of all bundled, Direct Access, and Community Choice Aggregation customers. Typically, the 2019 Balancing Account Filing rate change will be consolidated into other rate changes scheduled to be filed in February for an effective date of March 1, 2019. At that time, PG&E will also provide complete updated tariff sheets. Protests Anyone wishing to protest this filing may do so by letter sent via U.S. mail, facsimile, or E-mail, no later than January 14, 2019, which is 20 days1 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: EDTariffUnit@cpuc.ca.gov Copies of protests also should be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. 1 The 20-day protest period concludes on a weekend, therefore, PG&E is moving this date to the following business day.
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Advice 5456-E -5- December 24, 2018 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 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: PGETariffs@pge.co 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 filing become effective as soon as practicable after FERC authorizes these changes to become effective, which PG&E expects to be on or after March 1, 2019. PG&E proposes to consolidate the electric rate changes resulting from the 2019 Balancing Account Filing, to the extent practicable, with the first planned rate change after FERC authorizes PG&E’s requests. 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. Address changes to the General Order 96-B service list should be directed to PG&E at email address PGETariffs@pge.com. For changes to any other service list, please contact the Commission’s Process Office at (415) 703-2021 or at Process_Office@cpuc.ca.gov. Send all electronic approvals to PGETariffs@pge.com. Advice letter filings can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations
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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: PGETariffs@pge.com E-mail Disposition Notice to: Yvonne.Yang@pge.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 2 Advice Letter (AL) #: 5456-E Subject of AL: Notice of Federal Energy Regulatory Commission Rate Filing for Annual Updates to the Transmission Revenue Balancing Account Adjustment, the Reliability Services Rates, the End-Use Customer Refund Balancing Account Adjustment, and the Transmission Access Charge Balancing Account Adjustment 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 #: 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 3/1/19 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: 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
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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: 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: PGETariffs@pge.com Name: Title: Utility Name: Address: City: State: District of Columbia Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Email: Zip: Clear Form
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PG&E Gas and Electric Advice Filing List General Order 96-B, Section IV AT&T Albion Power Company Alcantar & Kahl LLP Alta Power Group, LLC 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 East Bay Community Energy 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
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