Details for: PGE Advice 5601-E-A.pdf

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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

August 30, 2019

Advice 5601-E-A
(Pacific Gas and Electric Company ID U39 E)

Public Utilities Commission of the State of California

Supplemental: Submits Notice of Construction, Pursuant to General
Order 131-D, for the Construction Santa Teresa Substation, City of
San Jose

At the request of the Public Advocates Office (“PAO”), Pacific Gas and Electric
Company (“PG&E” or “the Company”) hereby provides supplemental information to
Advice Letter 5601-E by submitting additional information in accordance with GO 95,
Section 7.5.1. The project description in Advice Letter 5601-E, which provided notice of
construction pursuant to General Order (G.O.) 131-D, is being supplemented with the
potential cost-sharing information described below.
This advice letter provides supplemental information to Advice Letter 5601-E.
PG&E submitted Advice Letter 5601-E with the California Public Utilities Commission
(“CPUC” or “Commission”) on July 29, 2019, concerning its proposal to construct the
Santa Teresa Substation and related facilities to be located at the PG&E Edenvale
Service Center on Miyuki Drive in San Jose, CA. The project was included in the City of
San Jose’s Equinix Data Center (SV-12, SV-13, SV-14) and Santa Teresa Substation
Initial Study/Mitigated Negative Declaration and the Addendum dated January 22, 2019
(ER18-021 Equinix Data Centers and Santa Teresa Substation Project Minor
Modification), which found no significant impacts from construction of PG&E’s project.
As indicated in the advice letter, the project is exempt from permitting requirements
under the Commission’s General Order 131-D (“GO 131-D”), Section III. B.1,
subsection (f).
PAO filed a timely protest on August 29, 2019, requesting that PG&E file a supplement
to the advice letter concerning potential cost-sharing or that the CPUC include this


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Advice No. 5601-E-A -2- August 30, 2019 information in its disposition. PG&E now submits this Supplement to formally add the potential cost-sharing information. Supplemental Information PG&E is in the process of securing cost-sharing agreements with the data center developers; these agreements are not yet finalized or approved by the U.S. Bankruptcy Court. When PG&E enters into such cost-sharing agreements with the developers, it plans to file the agreements with the CPUC as part of an Exceptional Case filing under the Distribution Line Extension provisions of Rule 15. The data center developers are being asked to provide up-front funding to pay a portion of the costs for building the new substation to ensure that their projections for large-load electrical use are actually realized. If their projections are accurate, then revenues from their purchases of electricity will help pay for the substation facilities and benefit ratepayers over time. In that event, the data center developers’ pre-payments would be refunded over a 10-year period up to the refundable amount stated in the agreements. If the data center developers’ projections turn out to be inaccurate (e.g., substantially less electricity is needed), then the data center developers’ pre-payments would not be refunded or would only be partly refunded (based on the net revenue and the cost of service factor), with PG&E retaining the balance of the funds to offset the costs of the new facilities. The agreements ensure that PG&E ratepayers receive proportionate funding for constructing the new substation facilities if revenues are lower than expected. The Exceptional Case filing arrangement is more beneficial to PG&E ratepayers than a normal service arrangement because, under the standard provisions of the tariffs, PG&E would pay the entire up-front cost to upgrade distribution capacity and would then need to retroactively attempt to collect for any deficiency if data-center loads did not materialize. The Rule 15 arrangement will reduce PG&E ratepayer risks by obtaining up-front cost-participation from the three data centers. Protests PG&E asks that the Commission, pursuant to GO 96-B, Section 7.5.1, maintain the original protest and comment period designated in Advice 5601-E. Effective Date PG&E requests that this Tier 2 advice letter become effective as soon as possible. Notice A copy of this advice letter is being sent electronically and via U.S. Mail to parties shown on the attached list, including the parties listed in G.O. 131-D, Section XI, Paragraphs B.1 and B.2, as well as to all persons who have filed a protest or response. These parties are identified in the “Notice Distribution List” included in Attachment I. All
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Advice No. 5601-E-A -3- August 30, 2019 electronic approvals should be sent to e-mail Advice letter submittals can also be accessed electronically at /S/ Erik Jacobson Director, Regulatory Relations cc: Parties Listed in G.O. 131-D, Paragraphs B.1 and B.2 Attachments
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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 U39 E) 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) #: 5601-E-A Subject of AL: Supplemental: Additional information to Advice Letter 5601-E concerning potential cost-sharing for the Santa Teresa Substation Project, proposed to be constructed pursuant to General Order 131-D Keywords (choose from CPUC listing): Compliance, Power Lines, G.O. 131-D AL Type: Monthly Quarterly Annual ✔ One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: N/A 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: N/A Yes ✔ No N/A N/A Yes ✔ No 8/28/19 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: 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: 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 Zip: 94177 State: California Telephone (xxx) xxx-xxxx: (415) 973-1877 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
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Notice Distribution List Santa Teresa Substation (City of San Jose, PM 74007020) Advice 5601-E-A Energy Commission Mr. Drew Bohan, Executive Director California Energy Commission 1516 Ninth Street, Mail Stop 39 Sacramento, California 95814 Ms. Courtney Smith, Deputy Director California Energy Commission 1516 Ninth Street, Mail Stop 39 Sacramento, California 95814 California Department of Fish and Wildlife Mr. Gregg Erickson, Regional Manager California Department of Fish and Wildlife, Bay Delta Region (3) 2825 Cordelia Road, Suite 100 Fairfield, CA 94534 City of San Jose Ms. Rosalynn Hughey Director of Planning, Building and Code Enforcement 200 E. Santa Clara Street Tower, 3rd Floor San Jose, CA 95113 Public Advocates Office Chloe Lukins, Danielle Dooley, Joseph A. Abhulimen,
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PG&E Gas and Electric Advice Submittal List 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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