Details for: PGE AL 4220-G_5767-E.pdf


Click on the image for full size preview

Document data

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

February 19, 2020

Advice 4220-G/5767-E
(Pacific Gas and Electric Company ID U 39 M)

Public Utilities Commission of the State of California
Subject:

Closing the Executive Compensation Memorandum Account (ECMAE and ECMA-G) as Replaced by Officer Compensation Memorandum
Account

Purpose
Pacific Gas and Electric Company (PG&E) submits this advice letter to close and retire
the Gas Preliminary Statement Part DY, Executive Compensation Memorandum Account
(ECMA-G) and the Electric Preliminary Statement Part HE, Executive Compensation
Memorandum Account (ECMA-E). As discussed below, the statute that authorized the
implementation of these accounts was repealed and the accounts each carry a zero
balance. The affected tariff sheets are listed on the enclosed Attachment 1.
Background
On October 8, 2015, Assembly Bill (AB) 1266 was approved by the Governor, adding
Section 706 to the Public Utilities Code. Generally, Section 706 placed certain restrictions
on electrical and gas corporations with respect to paying or seeking in recovery in rates
of excess compensation for certain officers after the occurrence of a triggering event as
defined in the statute. Among other things, Section 706 stated that in every decision on
a general rate case, the Commission shall require all authorized executive compensation
to be placed in a balancing account, memorandum account, or other appropriate
mechanism so that this section can be implemented without violating any prohibition on
retroactive ratemaking.
The Commission implemented Section 706 for PG&E in PG&E’s 2017 General Rate Case
(GRC) as follows. On September 1, 2015, PG&E filed its 2017 GRC Application (A.1509-001). On August 3, 2016, PG&E and 14 other parties, the “Settling Parties,” filed with
the CPUC a Settlement Agreement. On May 11, 2017, the CPUC issued D. 17-05-013
approving the Settlement Agreement with certain modifications. In Ordering Paragraph
13 that decision, the Commission ordered the establishment of a memorandum account
to track executive compensation costs pursuant to Section 706. In compliance with OP





- Page 1 -

Advice 4220-G/5767-E -2- February 19, 2020 13 of D.17-05-013, within 45 days of the Decision, PG&E submitted a Tier 2 advice letter (Advice 5102-E/3856-G) to establish a new Executive Compensation Memorandum Account (ECMA-E and ECMA-G). The advice letter was approved on July 20, 2017, effective as of January 1, 2017. On August 31, 2018, the California Legislature passed SB 901, and Governor Edmund Brown Jr. signed it into law on September 21, 2018. SB 901 repeals the language in Public Utilities Code Section 706, and adds new language prohibiting an electrical or gas corporation from recovering from ratepayers any annual salary, bonus, benefits, or other consideration of any value, paid to an officer of the electrical corporation or gas corporation, and requires that compensation instead be funded solely by shareholders of the utility. Revised Section 706 states: (a) For purposes of this section, “compensation” means any annual salary, bonus, benefits, or other consideration of any value, paid to an officer of an electrical corporation or gas corporation. (b) An electrical corporation or gas corporation shall not recover expenses for compensation from ratepayers. Compensation shall be paid solely by shareholders of the electrical corporation or gas corporation. In accordance with SB 901, on October 26, 2018, the Commission issued draft Resolution E-4963 which proposed the establishment of the Officer Compensation Memorandum Account (OCMA), which includes two subaccounts: the “Authorized Compensation SubAccount” and the “Paid Compensation Sub-Account.” PG&E submitted its compliance advice letter and new tariffs - Preliminary Statement Part HT - Officer Compensation Memorandum Account (OCMA-E) and Preliminary Statement Part EI – Officer Compensation Memorandum Account (OCMA-G) - on December 24, 2018. In ordering the establishment of the OCMA, the Commission denied closure of existing officer compensation memorandum accounts for all utilities in this resolution [the ECMA accounts for PG&E] as premature, starting that there may be a chance that those accounts will carry non-zero balances and would be closed prematurely. PG&E’s ECMA-E and ECMA-G each carry zero balances. Those zero balances will remain as the pre-SB 901 version of Section 706 has now been repealed. For those reasons, PG&E submits this advice submittal to retire the ECMA-E and ECMA-G accounts and will continue tracking executive compensation in its OCMA-E and OCMAG accounts that replace the pre-SB 901 version pursuant to Section 706 as enacted by SB 901 currently in effect. This submittal would not increase any current rate or charge, cause the withdrawal of service, or conflict with any rate schedule or rule. Protests Anyone wishing to protest this submittal may do so by letter sent via U.S. mail, facsimile or E-mail, no later than March 10, 2020, which is 20 days after the date of this submittal. Protests must be submitted to:
- Page 2 -

Advice 4220-G/5767-E -3- February 19, 2020 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 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 regular notice, March 20, 2020 which is 30 calendar days after the date of 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. 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
- Page 3 -

Advice 4220-G/5767-E -4- February 19, 2020 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
- Page 4 -

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 M) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Annie Ho Phone #: (415) 973-8794 E-mail: PGETariffs@pge.com E-mail Disposition Notice to: AMHP@pge.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 2 Advice Letter (AL) #: 4220-G/5767-E Subject of AL: Closing the Executive Compensation Memorandum Account (ECMA-E and ECMA-G) as Replaced by Officer Compensation Memorandum Account 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: 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: 3/20/20 No. of tariff sheets: 4 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: See Attachment 1 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 5 -

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
- Page 6 -

Attachment 1 Advice 4220-G Cal P.U.C. Sheet No. Title of Sheet Cancelling Cal P.U.C. Sheet No. 35672-G GAS TABLE OF CONTENTS Sheet 1 35670-G 35673-G GAS TABLE OF CONTENTS Sheet 6 35525-G* Page 1 of 1
- Page 7 -

Attachment 1 Advice 5767-E Cal P.U.C. Sheet No. Title of Sheet Cancelling Cal P.U.C. Sheet No. 46210-E ELECTRIC TABLE OF CONTENTS Sheet 1 46129-E 46211-E ELECTRIC TABLE OF CONTENTS Sheet 17 46131-E Page 1 of 1
- Page 8 -

Cancelling U 39 Revised Revised Cal. P.U.C. Sheet No. Cal. P.U.C. Sheet No. 35672-G 35670-G San Francisco, California GAS TABLE OF CONTENTS Sheet 1 CAL P.U.C. SHEET NO. TITLE OF SHEET Title Page ........................................................................................................................................... 35672-G Rate Schedules ....................................................................................................................... 35671,35644-G Preliminary Statements ........................................................................................................... 35645,35068-G Preliminary Statements, Rules ........................................................................................................... 35673-G Rules, Maps, Contracts and Deviations .............................................................................................. 35195-G Sample Forms ............................................................................. 34229,32986,32987,32886,34953,32888-G (T) (T) (Continued) Advice Decision 4220-G Issued by Robert S. Kenney Vice President, Regulatory Affairs Submitted Effective Resolution February 19, 2020
- Page 9 -

Cancelling U 39 Revised Revised Cal. P.U.C. Sheet No. Cal. P.U.C. Sheet No. San Francisco, California GAS TABLE OF CONTENTS PART 35673-G 35525-G* Sheet 6 CAL P.U.C. SHEET NO. TITLE OF SHEET Preliminary Statements Part DO Part DP Part DQ Part DR Part DS Part DT Part DU Hydrostatic Pipeline Testing Memorandum Account ......................................................... 32805-G Transmission Integrity Management Program Memorandum Account .............................. 33476-G Engineering Critical Assessment Balancing Account (ECABA) ......................................... 32809-G Hydrostatic Station Testing Memorandum Account (HSTMA) ........................................... 33084-G Work Required by Others Balancing Account (WROBA) ................................................... 33477-G Critical Document Program Memorandum Account (CDPMA) ........................................... 32812-G Z-Factor Memorandum Account (ZFMA-G) ........................................................... 33478,33479-G Part DZ Part EA Part EB Part EC Part EE Part EG Part EH Part EC New Environmental Regulations Balancing Account (NERBA) ............................. 34675,33812-G Natural Gas Leak Abatement Program Balancing Account (NGLAPBA) ........................... 33695-G Natural Gas Leak Abatement Program Memorandum Account (NGLAPMA) .................... 33600-G Emergency Consumer Protections Memorandum Account (WCPMA-G) ............... 34677,35128-G Wildfire Expense Memorandum Account (WEMA-G) ....................................................... 34367-G Dairy Biomethane Pilots Balancing Account (DBPBA) ..................................................... 34715-G Dairy Biomethane Pilots Memorandum Account (DBPMA) .............................................. 34716-G Emergency Consumer Protections Memorandum Account - Gas (ECPMA-G) .................... 35470, ............................................................................................................................... 35471,35472-G California Consumer Privacy Act Memorandum Account – Gas (CCPAMA-G) ................ 35320-G General Rate Case Memorandum Account – Gas (GRCMA-G) ...................................... 35523*-G (D) Part FD Part FE Rules Rule 01 Rule 02 Rule 03 Rule 04 Rule 05 Rule 06 Rule 07 Rule 08 Rule 09 Rule 10 Rule 11 Rule 12 Rule 13 Rule 14 Rule 15 Rule 16 Rule 17 Rule 17.1 Rule 17.2 Rule 18 Rule 19 Definitions ................................................. 31083,26782,33639,31560,31561,35243,35473,35474, ................ 35475,35476,35477,35478,35479,35480,35481,35482,35483,35484,35485,35486-G Description of Service ..................................................23062,23063,23064,23065,23066,33824-G Application for Service ............................................................................................ 27248,27249-G Contracts ........................................................................................................................... 17051-G Special Information Required on Forms....................................................... 30088,32872,32873-G Establishment and Reestablishment of Credit ............................................. 22126,30687,34524-G Deposits .................................................................................................................. 31330,28655-G Notices ....................................................................................31924,17580,31925,30689,31926-G Rendering and Payment of Bills ................................................ 31914,34525,31381,33305,33507, .................................................................................................................. 27345,31167,34972-G Disputed Bills .............................................................................................. 18214,18215, 18216-G Discontinuance and Restoration of Service ....................34867,34868,34052,34053,33494,33878, ........................... 34516,34678,34465,34632,34467,34470,34471,34472,34473,34474,34475-G Rates and Optional Rates ............................................18229,27253,24132,21981,21982,34520-G Temporary Service ............................................................................................................ 22832-G Capacity Allocation and Constraint of Natural Gas Service ................. 18231,18232,18233,18234, ......................................... 18235,30690,30691,30692,30693,30694,30695,30696,30697,30698, ...................................... 28283,30699,30700,30701,30702,29787,28289,28290,30703,28292-G Gas Main Extensions .....................21543,18802-18803,32408,20350,29271,31168,26827,21544, ............................................................ 21545,22376,22377,22378,22379,26828,26829,18814-G Gas Service Extensions ................. 21546,18816,34880,17161,18817,18818,18819,18820,18821, ....................................................................... 18822,29273,18824,18825,17737,18826,18827-G Meter Tests and Adjustment of Bills for Meter Error ................. 14450,28656,28764,28770,28771, .................................................................................................................. 28772,28773,28774-G Adjustment of Bills for Billing Error ............................................................... 22936,28657,29274-G Adjustment of Bills for Unauthorized Use..................................................... 22937,14460,14461-G Supply to Separate Premises and Submetering of Gas ............................... 22790,17796,13401-G Medical Baseline Quantities......................................................................... 21119,31932,21121-G (Continued) Advice Decision 4220-G Issued by Robert S. Kenney Vice President, Regulatory Affairs Submitted Effective Resolution February 19, 2020
- Page 10 -

Cancelling U 39 Revised Revised Cal. P.U.C. Sheet No. Cal. P.U.C. Sheet No. 46210-E 46129-E San Francisco, California ELECTRIC TABLE OF CONTENTS Sheet 1 TABLE OF CONTENTS SCHEDULE CAL P.U.C. SHEET NO. TITLE OF SHEET Title Page ............................................................................................................................... 46210-E Rate Schedules ......................................... 45400,45401,45402,45403,45742,45405,43935,44177-E Preliminary Statements ........................... 45406,44687,42856*,46130,41723,40591,44724,46211-E Rules ................................................................................................................ 45270,43023,46109-E Maps, Contracts and Deviations ............................................................................................ 37960-E Sample Forms .... 40925*,37631,45743,41573*, 37632,41152*,41153,37769,44035,40671,37169-E (T) (T) (Continued) Advice Decision 5767-E Issued by Robert S. Kenney Vice President, Regulatory Affairs Submitted Effective Resolution February 19, 2020
- Page 11 -

Cancelling U 39 Revised Revised Cal. P.U.C. Sheet No. Cal. P.U.C. Sheet No. 46211-E 46131-E San Francisco, California ELECTRIC TABLE OF CONTENTS PART Sheet 17 CAL P.U.C. SHEET NO. TITLE OF SHEET Preliminary Statements (Cont’d) Part GA Part GB Part GC Part GD Part GE Part GF Part GH Part GI Part GJ Part GK Part GL Part GM Part GN Part GO Part GP Part GQ Part GR Part GS Part GT Part GU Part GV Part GY Part GZ Part HA Part HB Part HC Part HD Greenhouse Gas Expense Memorandum Account .............................................. 32419,32420-E Greenhouse Gas Revenue Balancing Account .................................................... 35256,40560-E California Energy Systems for the 21st Century Balancing Account ................................ 40561-E Smart Grid Pilot Deployment Project Balancing Account ......................... 32540,32541, 32542-E Statewide Marketing, Education and Outreach Expenditure Balancing Account ............ 37728-E Customer Data Access Balancing Account – Electric ..................................................... 33136-E Mobile Home Park Balancing Account - Electric .................................................. 41091,41092-E Energy Data Center Memorandum Account – Electric .................................................... 33940-E Major Emergency Balancing Account (MEBA) ................................................................ 40563-E SmartMeterTM Opt-Out Program Balancing Account - Electric (SOPBA-E)35625,35626,35627-E Hydro Licensing Balancing Account (HLBA) ................................................................... 40564-E Nuclear Regulatory Commission Rulemaking Balancing Account (NRCRBA) ............... 40565-E San Francisco Incandescent Streetlight Replacement Account ...................................... 34364-E Disconnection Memorandum Account - Electric (DMA-E) ............................................... 34604-E Green Tariff Shared Renewables Memorandum Account (GTSRMA) ..... 40566,40567, 40567-E Energy Efficiency Financing Balancing Account – Electric (EEFMA-E) .... 35292,35293,35294-E Green Tariff Shared Renewables Balancing Account (GTSRBA) ............. 40569,40570,35377-E Residential Rate Reform Memorandum Account (RRRMA) ................................ 40571,40572-E Assembly Bill 802 Memorandum Account - Electric ........................................................ 40573-E Z-Factor Memorandum Account (ZFMA-E) ..................................................................... 40574-E Distribution Interconnection Memorandum Account (DIMA) ........................................... 40575-E Electric Vehicle Program Balancing Account (EVPBA) ................................................... 40576-E Distributed Energy Resources Distribution Deferral Account ................... 43656,43657,43658-E Avoided Cost Calculator Memorandum Account ............................................................. 40000-E Distribution Resources Plan Demonstration Balancing Account ..................................... 40577-E Rule 20A Balancing Account ........................................................................................... 41736-E Tax Memorandum Account (TMA-E) ............................................................................... 41088-E Part HF Part HG Distribution Resources Plan Tools Memorandum Account (DRPTMA) ............... 42139,42140-E Emergency Consumer Protections Memorandum Account - Electric (WCPMA-E) ....................... .................................................................................................................. 43007,44720,44215-E Transportation Electrification Balancing Account (TEBA)……44688,44689,44690,44691, ....................................................................................................... 42579,42580,42581,44692-E Solar On Multifamily Affordable Housing Balancing Account (SOMAHBA) .................... 41781-E Diablo Canyon Retirement Balancing Account .................................................. 42161, 43668-E Wildfire Expense Memorandum Account (WEMA-E) ......................................... 42604, 42605-E Public Policy Charge Balancing Account (PPCBA) ....................... 44715,46124,46125,46126-E Fire Risk Mitigation Memorandum Account (FRMMA) ................................................... 43314-E Net Energy Metering (NEM) Balancing Account (NEMBA) ............................................. 43317-E Portfolio Allocation Balancing Account (PABA) .................. 43461,45689,45744,46127,46128-E Officer Compensation Memorandum Account (OCMA-E) .................................... 43629,43630-E San Joaquin Valley Disadvantaged Communities Pilot Balancing Account .................... 44053-E Wildfire Plan Memorandum Account (WPMA) ............................................................... 44450-E General Rate Case Memorandum Account – Electric (GRCMA-E) ....................... 45750*,45751*-E (D) Part HH Part HI Part HK Part HL Part HM Part HQ Part HR Part HS Part HT Part HU Part HX Part IB (Continued) Advice Decision 5767-E Issued by Robert S. Kenney Vice President, Regulatory Affairs Submitted Effective Resolution February 19, 2020
- Page 12 -

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 Chevron Pipeline and Power 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 IGS Energy 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
- Page 13 -