Details for: PG&E AL 5613-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

August 7, 2019

Advice 5613-E
(Pacific Gas and Electric Company ID U 39 E)

Public Utilities Commission of the State of California
Subject:

PG&E’s 2018-2019 and 2019 Demand Response Auction Mechanism
Purchase Agreement Amendments

Purpose
In compliance with Decision (D.) 17-10-017 and Resolution E-4817, Pacific Gas and
Electric Company (“PG&E”) submits this Advice Letter to inform the California Public
Utilities Commission (“CPUC” or “Commission”) of nine amendments to Purchase
Agreements executed between PG&E and two Demand Response Auction Mechanism
(“DRAM”) Sellers resulting from PG&E’s 2018-2019 DRAM Request for Offers (“RFO”)
and PG&E’s 2019 DRAM RFO.
Background
On September 13, 2013, the Commission issued Order Instituting Rulemaking (“R.”) 1309-011 to enhance the role of demand response (“DR”) in meeting the state’s resource
planning needs and operations. The Commission addressed the issues covered by the
rulemaking in three phases. Generally, Phase Three issues dealt with future DR program
design and operations. A majority of the parties formed a settlement on how to resolve
Phase Three issues and, on August 4, 2014, filed a motion to obtain Commission
approval. On December 9, 2014, the Commission issued D.14-12-024 which, among
other things, approved the settlement agreement, with modifications, and authorized the
demand response auction mechanism (“DRAM”) pilot with a standard contract.
D. 14-12-024 required Southern California Edison Company (“SCE”), San Diego Gas &
Electric Company (“SDG&E”) and PG&E, collectively, the investor-owned utilities (“IOU”),
to design and implement DRAM for 2016 (“2016 DRAM”) and 2017 (“2017 DRAM”). An
“open to the public” working group collaborated on the DRAM pilot design and standard
contract language under the active and on-going supervision of the Commission staff.
Concurrently with PG&E’s implementation of its 2017 DRAM, the Commission addressed
the need for an additional, post-2017 DRAM solicitation via the process used to review





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Advice 5613-E -2- August 7, 2019 and approve the IOUs’ 2017 demand response programs and budgets. D.16-06-029 approved the IOUs proposed 2017 programs and budgets, with modifications, and directed the IOUs to continue DRAM with an auction in 2017 for deliveries in 2018 (“20182019 DRAM”). The DRAM working group met and discussed modifications to the third DRAM pilot that expand on the experience of the first two DRAM pilots and met Commission requirements as ordered in D.16-06-029.1 SCE submitted an advice letter on behalf of the IOUs on September 1, 2016,2 with the proposal resulting from the working group, including the associated auction design and pro forma contract. The Commission approved this advice letter, with modifications, in Resolution E-4817.3 PG&E launched the 2018-2019 DRAM RFO on March 10, 2017, and submitted Advice 5109-E on June 30, 2017 with the executed standard form Purchase Agreements for 10 Purchase Agreements executed between PG&E and five winning participants. The Commission approved Advice 5109-E by disposition letter on August 14, 2017. On April 27, 2017, in response to Petitions for Modifications (PFM) filed by Comverge, Inc., CPower, EnerNOC, Inc., and EnergyHub (collectively, the “Joint DR Parties”) and OhmConnect, the Commission determined that business opportunities for DRPs could be limited under the corresponding $27 million budget approved for the 2018-2019 DRAM RFO.4 On October 26, 2017, the Commission issued D.17-10-017, and determined that it is reasonable to require PG&E, SCE, and SDG&E to conduct an additional 2018 auction for contract deliveries in 2019. D.17-10-017 directed the IOUs to conduct an additional DRAM pilot solicitation in 2018 for 2019 capacity (“2019 DRAM”), and ordered the IOUs to use the final approved 2018-2019 DRAM guidelines for the additional 2019 DRAM, except that the contract term shall be limited to one year and additional guidelines were required.5 PG&E launched the 2019 DRAM RFO on January 25, 2018, and submitted Advice 5284-E on May 1, 2018, with the executed standard form Purchase Agreements for nine Purchase Agreements executed between PG&E and four winning participants. The Commission approved Advice 5284-E on September 12, 2018, by disposition letter. The DRAM working group’s activities were conducted at the express direction and under continuing supervision of the Commission. The DRAM working group included the IOUs, Ratepayer Advocates (Public Advocates Office (PAO, formerly ORA for the Office of Ratepayer Advocates) and The Utility Reform Network (TURN)), DR providers, Energy Division (ED) Staff, and other interested stakeholders. 2 PG&E Advice 4900-E, SCE Advice 3466-E, and SDG&E Advice 2949-E (collectively, “PG&E Advice 4900-E, et al”). 3 Resolution E-4817 also ordered a supplemental advice letter to be submitted demonstrated compliance with the Resolution, which was submitted on February 2, 2017. Two other supplementals were submitted on PG&E Advice 4900-E, et al. See PG&E Advice 5109-E for additional details. 4 Petition of the Joint DR Parties for Modification of D.16-06-029 was filed February 3, 2017, in R.13-09-011. Petition for Modification of OhmConnect of D.16-09-056 was filed December 30, 2016, in R.13-09-011. 5 See PG&E Advice 5284-E for additional details. 1
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Advice 5613-E -3- August 7, 2019 The 2018-2019 DRAM and the 2019 DRAM are competitive solicitations for monthly Resource Adequacy (“RA”) associated with a DR product located in the IOU’s service area that is bid directly into the California Independent System Operator’s (CAISO) electricity markets. PG&E is required to enter into Purchase Agreements up to the authorized budget, up to the point at which it has procured all bids below the average August capacity price (for 2019 DRAM only), or to a point at which bids are clear price outliers, whichever comes first. Winning 2018-2019 DRAM and 2019 DRAM auction participants (“Sellers”) bid their contracted capacity directly into the CAISO market during the contracted delivery months, between the months of January 2018 to December 2019 for the 2018-2019 DRAM and January 2019 to December 2019 for the 2019 DRAM, and must include bids for August 2018 and August 2019, respectively. Seller bids in the 20182019 DRAM and 2019 DRAM must qualify for system, local, and/or flexible RA products, and therefore must meet the CAISO’s must-offer obligation (MOO) for the appropriate RA product. Similar to the prior DRAM pilots, the IOUs only represent the RA attributes of demand response, and will have no claim on revenues the Sellers may receive from the CAISO.6 2018-2019 DRAM Contract Amendments PG&E and OhmConnect, Inc. mutually agreed to and signed an amendment to Purchase Agreement(s) on May 9, 2019, to settle disputed issues. The contract amendments may be found in Confidential Appendix A. 2019 DRAM Contract Amendments PG&E and Leapfrog Power, Inc. mutually agreed to and signed an amendment to Purchase Agreement(s) on July 11, 2019, to settle disputed issues. The contract amendments may be found in Confidential Appendix B. This submittal would not increase any current rate or charge, cause the withdrawal of service, or conflict with any rate schedule or rule. Request for Confidential Treatment PG&E has provided the executed amendments to the 2018-2019 DRAM Purchase Agreements and the executed amendments to the 2019 DRAM Purchase Agreements as attachments to this advice letter. A Declaration Seeking Confidential Treatment is being submitted along with this Advice Letter to demonstrate the confidentiality of material and to invoke the protection of confidential information. 6 This differs from programs where PG&E is the DRP, where revenues from the CAISO wholesale energy market are returned to ratepayers.
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Advice 5613-E -4- August 7, 2019 Confidential Attachments: Confidential Appendix A: Executed Amendment(s) with OhmConnect, Inc. 2018-2019 DRAM Purchase Agreement Confidential Appendix B: Executed 2019 DRAM Purchase Agreement Amendment(s) with Leapfrog Power, Inc. Protests Anyone wishing to protest this submittal may do so by letter sent via U.S. mail, facsimile or E-mail, no later than August 27, 2019, which is 20 days after the date of this submittal. 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. 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: PGETariffs@pge.com 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
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Advice 5613-E -5- August 7, 2019 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 1 advice submittal become effective upon date of submittal, which is August 7, 2019. 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 and the parties on the service list for R.13-09-011. 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 submittals can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations Attachments cc: Service List R.13-09-011
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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: 1 Advice Letter (AL) #: 5613-E Subject of AL: PG&E’s 2018-2019 and 2019 Demand Response Auction Mechanism Purchase Agreement Amendments 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 #: D.17-10-017 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 No See attached for Confidentiality Declaration Fuchs, Franklin, FIF1@pge.com, (415)973-1925 Yes ✔ No 8/7/19 No. of tariff sheets: 0 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
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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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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA DECLARATION SUPPORTING CONFIDENTIAL DESIGNATION ON BEHALF OF PACIFIC GAS AND ELECTRIC COMPANY (U 39 E) 1. I, Franklin Fuchs, DR Programs, DR Core Programs, of Pacific Gas and Electric Company (“PG&E”), a California corporation. Aaron Johnson, the Vice President, Customer Energy Solution of PG&E, delegated authority to me to sign this declaration. My business office is located at: Pacific Gas and Electric Company 77 Beale Street, Mail Code N3E San Francisco, CA 94105 2. PG&E will produce the information identified in paragraph 3 of this Declaration to the California Public Utilities Commission (“CPUC”) or departments within or contractors retained by the CPUC in response to a CPUC audit, data request, proceeding, or other CPUC request. Name or Docket No. of CPUC Proceeding (if applicable): R.13-09-011 3. Title and description of document(s): Advice 5613-E. 4. These documents contain confidential information that, based on my information and belief, has not been publicly disclosed. These documents have been marked as confidential, and the basis for confidential treatment and where the confidential information is located on the documents are identified on the following chart: PG&E Confidentiality Declaration (Rev 01/02/2018) 1
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Check Basis for Confidential Treatment Where Confidential Information is located on the documents Customer-specific data, which may include demand, loads, names, addresses, and billing data (Protected under PUC § 8380; Civ. Code §§ 1798 et seq.; Govt. Code § 6254; Public Util. Code § 8380; Decisions (D.) 14-05-016, 04-08-055, 06-12-029) Personal information that identifies or describes an individual (including employees), which may include home address or phone number; SSN, driver’s license, or passport numbers; education; financial matters; medical or employment history (not including PG&E job titles); and statements attributed to the individual (Protected under Civ. Code §§ 1798 et seq.; Govt. Code § 6254; 42 U.S.C. § 1320d-6; and General Order (G.O.) 77-M) Physical facility, cyber-security sensitive, or critical energy infrastructure data, including without limitation critical energy infrastructure information (CEII) as defined by the regulations of the Federal Energy Regulatory Commission at 18 C.F.R. § 388.113 (Protected under Govt. Code § 6254(k), (ab); 6 U.S.C. § 131; 6 CFR § 29.2) X Proprietary and trade secret information or other intellectual property and protected market sensitive/competitive data Advice 5613-E: Appendix A and Appendix B (Protected under Civ. Code §§3426 et seq.; Govt. Code §§ 6254, et seq., e.g., 6254(e), 6254(k), 6254.15; Govt. Code § 6276.44; Evid. Code §1060; D.11-01-036) Corporate financial records (Protected under Govt. Code §§ 6254(k), 6254.15) X Third-Party information subject to non-disclosure or confidentiality agreements or obligations (Protected under Govt. Code § 6254(k); see, e.g., CPUC D.11-01-036) PG&E Confidentiality Declaration (Rev 01/02/2018) 2 Advice 5613-E: Appendix A and Appendix B
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Other categories where disclosure would be against the public interest (Govt. Code § 6255(a))): ______________________________________ ____________________________________________ ____________________________________________ 5. The importance of maintaining the confidentiality of this information outweighs any public interest in disclosure of this information. This information should be exempt from the public disclosure requirements under the Public Records Act and should be withheld from disclosure. 6. I declare under penalty of perjury that the foregoing is true, correct, and complete to the best of my knowledge. 7. Executed on this 24th day of July, 2019 at San Francisco, California. ___________________________ Franklin Fuchs Manager, DR Programs, DR Programs Pacific Gas and Electric Company PG&E Confidentiality Declaration (Rev 01/02/2018) 3
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PACIFIC GAS AND ELECTRIC COMPANY (U 39 E) Advice 5613-E ATTACHMENT TO DECLARATION 7/24/2019 ATTACHMENT NAME CATEGORY OF CONFIDENTIALITY DOCUMENT NAME Appendix A Executed 2018-2019 DRAM Purchase Agreement Amendment(s) with OhmConnect, Inc. Appendix B Confidential Appendix B: Executed 2019 DRAM Purchase Agreement Amendment(s) with Leapfrog Power, Inc. PG&E Confidentiality Declaration (Rev 01/02/2018) 1 Market sensitive, proprietary, and third party information subject to nondisclosure or confidentiality agreements Market sensitive, proprietary, and third party information subject to nondisclosure or confidentiality agreements LOCATION Appendix A, entire attachment Appendix B, entire attachment
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Advice 5613-E August 7, 2019 Confidential Appendix A Executed 2018-2019 DRAM Purchase Agreement Amendment(s) with OhmConnect, Inc.
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Advice 5613-E August 7, 2019 Confidential Appendix B Executed 2019 DRAM Purchase Agreement Amendment(s) with Leapfrog Power, Inc.
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PG&E Gas and Electric Advice Submittal 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. P.C. CalCom Solar California Cotton Ginners & Growers Assn California Energy Commission California Public Utilities Commission California State Association of Counties Calpine Cameron-Daniel, P.C. 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 Engineers and Scientists of California 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 Peninsula Clean Energy Pioneer Community Energy Praxair Redwood Coast Energy Authority 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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