Details for: PGE AL 4207-G_5742-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

January 23, 2020

Advice 4207-G/5742-E
(Pacific Gas and Electric Company ID U 39 M)

Public Utilities Commission of the State of California
Subject:

I.

Advice Letter Summarizing PG&E’s 2020 Energy Efficiency Budget
Recovery Request for San Francisco Bay Area Regional Energy
Network, Tri-County Regional Energy Network, and Marin Clean
Energy in Compliance with the Requirements of the Non-Standard
Disposition of PG&E’s 2020 Energy Efficiency Annual Budget Advice
Letter.

Purpose and Background

On December 24, 2019, the California Public Utilities Commission (CPUC or
Commission) issued a non-standard disposition for Pacific Gas and Electric Company’s
(PG&E’s) Tier 2 2020 Energy Efficiency (EE) Annual Budget Advice Letter (2020 ABAL),1
which was submitted in compliance with the Decision Re Energy Efficiency Goals for 2016
and Beyond and Energy Efficiency Rolling Portfolio Mechanics, the “Rolling Portfolio
Decision” (Decision (D.)15-10-028),2 and the Decision Addressing Energy Efficiency
Business Plans (D.18-05-041).3 The non-standard disposition (a) approved $224,414,257
of EE budget to be recovered in rates and (b) directed PG&E to submit a Tier 1 advice
letter 30 days after the issuance of the disposition to align the budget recovery amounts
for San Francisco Bay Area Regional Energy Network (BayREN), Tri-County Regional
Energy Network (3C-REN), and Marin Clean Energy (MCE) with the approved recovery
budgets specified in the non-standard dispositions of their respective 2020 ABALs.4
PG&E requests that the Commission approve the cost recovery amounts for BayREN,
3C-REN, and MCE totaling $27,945,209, which includes additional cost recovery funds
to cover the CPUC Evaluation, Measurement, and Verification (EM&V) costs for the RENs
Advice 4136-G/5627-E, submitted on September 3, 2019, and Advice 4136-G-A/5627-E-B,
submitted on November 15, 2019.
2
D.15-10-028, Ordering Paragraph (OP) 4.
3
D.18-05-041, OP 41-47.
4 Non-standard dispositions to BayREN Advice 12-E, 3C-REN Advice 4-E/3-G, MCE Advice 37E, issued on December 23, 2019.
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Advice 4207-G/5742-E -2- January 23, 2020 and MCE that were not specified in their respective ABALs or accompanying dispositions.5 Because PG&E’s 2020 ABAL was formally rejected,6 PG&E furthermore confirms that it will implement the following components of its 2020 ABAL: the 2020 forecasted electric and gas split of 70%/30%, the 2020 loan pool budget of $13,500,000, and the Integrated Demand Side Management budget of $7,771,000 for its Demand Response program.7 III. Discussion A. 2020 EE Budget Recovery Request for BayREN, 3C-REN, and MCE The Commission issued non-standard dispositions on December 23, 2019 approving the EE budget recovery requests for BayREN, 3C-REN, and MCE in the amounts shown in Table 1 below. The budgets requested for recovery through PG&E rates include the disposition-approved amounts in addition to CPUC EM&V budget for each PA, totaling $27,945,209 for BayREN, 3C-REN, and MCE. Table 2 shows the total EE budget for PG&E, BayREN, 3C-REN, and MCE to be recovered through PG&E rates. The EE budget recovery total for PG&E does not include Revenue Fees and Uncollectible Account Expenses (RF&U) but will be added to electric funding to determine the revenue requirement when recovered in rates through the Annual Electric True-up (AET). The EE cost recovery budget shown in Table 2 includes the benefits burden allocated to the EE program for 2019 determined in PG&E’s 2017 General Rate Case (GRC) pursuant to D.17-05-013. Upon approval of PG&E’s 2020 GRC, the benefits burden included in the cost recovery budget will be superseded by the 2020 benefits burden allocated to the EE program. D.16-08-019 Ordering Paragraph (OP) 15 states “the budget for evaluation, measurement, and verification activities shall remain at four percent of the total portfolio budget.” The EE budget recovery amounts for BayREN, 3C-REN, and MCE approved in their respective 2020 ABAL dispositions include program administrator (PA) EM&V budgets that comprise less than four percent of the total portfolio budget and exclude CPUC EM&V budget. PG&E is including CPUC EM&V budget for the RENs and MCE in the total budget recovery request in this advice letter, such that each PA’s total EM&V budget equals four percent of the total PA EE portfolio budget. 6 Non-standard disposition to Advice 4136-G-A/5627-E-A, issued on December 24, 2019, p.1. 7 Advice 4136-G-A/5627-E-A, pp.2, 6, 20-22. 5
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Advice 4207-G/5742-E -3- January 23, 2020 Table 1: 2020 EE Budget Recovery Requests for BayREN, 3C-REN, and MCE PA Total PA EE Budget without EM&V EM&V PA Portion PA Uncommitted and Unspent Carryover Balance Total EE Budget Recovery Amount Approved through Non-Standard Disposition [4] Calculated CPUC EM&V Portion [5] Total EE Budget Requested for Rate Recovery through PG&E Rates [6] [A] [B] [C] [D] = [A] + [B] – [C] [E] = ([A] / 0.96) * 0.04 – [B] [F] = [D] + [E] $22,782,015 $271,135 $1,200,000 $21,853,150 $678,116 $22,531,266 MCE [2] $6,799,724 $108,796 $3,338,700 $3,569,819[7] $174,526 $3,744,345 3C-REN [3] $2,855,756 $32,686 $1,305,147 $1,583,294[8] $86,304 $1,669,598 Total $27,945,209 BayREN [1] [1] BayREN total budget without EM&V and EM&V PA portion taken from BayREN Advice 12-E for 2020 EE ABAL, Table 1. [2] MCE total budget without EM&V and EM&V PA portion taken from MCE Advice 37-E for 2020 EE ABAL, Table 7. [3] 3C-REN total budget without EM&V and EM&V PA portion taken from 3C-REN Advice 4-E/3-G for 2020 EE ABAL, Table 2, assuming PG&E’s budget portion is 45.6%. [4] Total approved EE budget recovery amount taken from non-standard dispositions issued December 23, 2019 for BayREN, 3C-REN, and MCE 2020 EE ABALs. [5] The EM&V total amount (sum of CPUC and PA portions) is assumed to be 4% of the PA’s total budget with EM&V, per D.16-08-019 OP 15. For BayREN, MCE, and 3C-REN, the EM&V CPUC portion was calculated by subtracting the PA’s portion from the EM&V total. [6] The EE total budget requested for rate recovery through PG&E rates includes budget for CPUC EM&V for each PA. [7] The total budget recovery amount approved through the non-standard disposition of MCE’s 2020 ABAL totaled $3,569,819, in alignment with the cost recovery request in MCE’s 2020 ABAL Table 8. The calculation of the total budget recovery amount approved through non-standard disposition using rounded numbers shown in this table results in a total budget of $3,569,820 for MCE, however PG&E used the amount approved in MCE’s ABAL disposition prior to rounding ($3,569,819) for calculation of MCE’s final budget request including CPUC EM&V budget. [8] The calculation of the total budget recovery amount approved through non-standard disposition using rounded numbers for 3C-REN shown in this table results in a total budget of $1,583,295 for 3C-REN (based on the assumption that PG&E’s portion of 3C-REN’s budget is 45.6%), however PG&E is using the amount approved in 3C-REN’s ABAL disposition prior to rounding ($3,472,136 total, or $1,583,294 just for PG&E’s portion) as the basis for its calculation of 3C-REN’s final budget request including CPUC EM&V budget, assuming PG&E’s budget portion of 45.6%. Table 2: Summary of Total 2020 EE Budget Recovery Request PA Total EE Budget for Rate Recovery through PG&E Rates PG&E [1] $224,414,257 BayREN $22,531,266 MCE $3,744,345 3C-REN $1,669,598 Total $252,359,466 [1] PG&E’s EE budget recovery approved via non-standard disposition of PG&E’s 2020 EE ABAL, p.1. Revenue Fees and Uncollectible Account Expenses (RF&U) are not included in this cost recovery budget but will be added to electric funding to determine the revenue requirement when recovered in rates through the Annual Electric True-up (AET). The cost recovery budget shown in this table includes the benefits burden allocated to the EE program for 2019 determined in PG&E’s 2017 GRC pursuant to D.17-05-013. Upon approval of PG&E’s 2020 GRC, the benefits burden included in the cost recovery budget will be superseded by the 2020 benefits burden allocated to the EE program.
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Advice 4207-G/5742-E -4- January 23, 2020 B. Electric and Gas Split for Budget Recovery PG&E will apply a 70% electric / 30% gas split for allocation of PG&E’s 2020 EE budget recovery amounts through electric and gas rates, based on total forecasted 2020 EE benefits, as requested in PG&E’s 2020 ABAL.8 C. Integrated Demand Side Management (IDSM) Budget for Demand Response (DR) PG&E is confirming approval of a $7,771,000 IDSM budget for its DR program in this Tier 1 advice letter, as requested in PG&E’s 2020 ABAL.9 This DR IDSM budget request is separate from PG&E’s EE budget request. D. EE Loan Pool Budget for 2020 PG&E’s total 2020 EE spending budget was approved in the non-standard disposition rejecting its 2020 ABAL.10 PG&E’s total 2020 EE spending budget included a loan pool budget request of $13,500,000,11 therefore PG&E is confirming approval of this 2020 loan pool budget in this Tier 1 advice letter. Protests Anyone wishing to protest this filing may do so by letter sent via U.S. mail, facsimile or Email, no later than February 12, 2020, which is 20 days 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. 8 Advice 4136-G-A/5627-E-A, pp.2, 20, 22. Ibid, pp.20-21. 10 Non-standard disposition to Advice 4136-G-A/5627-E-A, issued on December 24, 2019, p.1. 11 Ibid, p.6. 9
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Advice 4207-G/5742-E -5- January 23, 2020 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 this Tier 1 advice letter be effective immediately pending a disposition, per General Order 96-B, which is January 23, 2020. 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 lists for R.13-11-005, A.17-01-013 et al. 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/.
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Advice 4207-G/5742-E /S/ Erik Jacobson Director, Regulatory Relations cc: Peter Franzese, Energy Division Service List R.13-11-005 Service List A.17-01-013 et al. -6- January 23, 2020
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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 U39M) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Kimberly Loo Phone #: (415)973-4587 E-mail: PGETariffs@pge.com E-mail Disposition Notice to: KELM@pge.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 4207-G/5742-E Subject of AL: Advice Letter Summarizing PG&E’s 2020 Energy Efficiency Budget Recovery Request for San Francisco Bay Area Regional Energy Network, Tri-County Regional Energy Network, and Marin Clean Energy in Compliance with the Requirements of the Non-Standard Disposition of PG&E’s 2020 Energy Efficiency 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: 1/23/20 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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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
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