Details for: 4169-E (Part 1 of 1).pdf


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Gary A. Stern, Ph.D.
Managing Director, State Regulatory Operations

February 24, 2020
ADVICE 4169-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
SUBJECT:

Modifications to Southern California Edison Company’s SelfGeneration Program Incremental Cost Memorandum Account
in Compliance with Decision 20-01-021

Southern California Edison Company (SCE) hereby submits for approval by the
California Public Utilities Commission (Commission) the following changes to its tariffs.
The revised tariffs are listed on Attachment A and are attached hereto.
PURPOSE
In compliance with Commission Decision (D.)20-01-021, this advice letter sets forth
SCE’s authorized 2020 – 2024 funding for the Self-Generation Incentive Program
(SGIP) and modifies Preliminary Statement Part N.3., Self-Generation Program
Incremental Cost Memorandum Account (SGPICMA) to reflect the 2020 – 2024
authorized funding amounts. In addition, and pursuant to Ordering Paragraph (OP) 2 of
D.20-01-021, SCE also includes an updated cost allocation proposal across customer
classes based on the actual benefits resulting from the disbursement of SGIP incentives
over the previous three years in its service territory.
BACKGROUND
On January 16, 2020, the Commission approved D.20-01-021, Self-Generation
Incentive Program Revisions Pursuant to Senate Bill 700 and Other Program Changes,
which, among other items, directs Pacific Gas & Electric (PG&E), SCE, Southern
California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E)1 to each
submit a Tier 1 budget advice letter summarizing the 2020 to 2024 ratepayer collections
approved in this decision no later than 90 days after Commission adoption of this
decision.

1

Herein addressed as the Investor Owned Utilities (IOUs).

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





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ADVICE 4169-E (U 338-E) -2- February 24, 2020 In addition, the IOUs are to include in their budget advice letters an updated cost allocation across customer classes, based on the actual benefits resulting from the disbursement of SGIP incentives over the previous three years in its service territories. The Commission further directs the IOUs to continue to allocate costs on a rolling basis annually to account for changes in eligibility and market factors, until the program sunsets. Also, the IOUs are to indicate in their budget advice letters, and their next available rate proceedings,2 their commitment to return to ratepayers all unallocated SGIP funds remaining as of January 1, 2026. DISCUSSION D.20-01-021 authorizes ratepayer collections of $166 million annually for the years 2020 to 2024 to fund the SGIP, consistent with the authorization established by Senate Bill 700 (Wiener, 2018). SCE’s allocation is set at 34 percent, or $56 million on an annual basis. OP 4 of D.16-06-055 ordered SCE to submit a proposal that would equitably allocate the SGIP revenue requirement to each rate class by the amount of program benefits that it would receive, as described in California Public Utilities Code 379.6(a)(1). SCE subsequently submitted its proposal to distribute SGIP revenue requirement in its 2018 GRC Phase 2 application (A.17-06-030). The cost allocation proposal, along with all motions seeking adoption of settlement agreements reached in the regulatory proceeding, was adopted in D.18-11-027, issued on November 29, 2018. The section below details the adopted proposal. To distribute the total SGIP program cost to each rate class, in proportion to the benefits that it receives, the cost allocation proposal first evaluates benefits disbursed to SGIP program participants by rate class over the three previous program years. To allocate the program revenue requirement by rate class in 2020, for instance, the proposal evaluates benefits that were disbursed to each rate class from 2017 to 2019. A simple average of benefits disbursed to each rate class over the past three years is then taken. The simple three-year average of benefits received by each rate class is then divided by the same average of all benefits disbursed from 2017 to 2019. The division then results in the proportion of benefits that each rate class receives, compared to the total benefits disbursed. The proportion calculated for each rate class is then used to allocate the SGIP revenue requirement for the upcoming year (i.e., 2020). Allocation of the revenue requirement to each rate class by the proportion of benefits received ensures that the amount of costs assigned to each rate class would be proportional to the amount of benefits received. 2 SCE interprets this wording to be its 2021 General Rate Case (GRC) Phase 2 or Rate Design Window application.
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ADVICE 4169-E (U 338-E) -3- February 24, 2020 The following table contains estimates of allocation factors used to distribute the SGIP revenue requirement to each rate class, according to the proportion of benefits received or will be disbursed to each. Benefits used to calculate the proportion of revenue requirement burden for each rate class are from 2017 – 2019. Rate Class NCARE CARE DOMESTIC % (2017-2019) 30.0% 0.9% 30.9% TOU-GS-1 TOU-GS-2 TOU-GS-3 TC-1 LSMP 5.6% 6.1% 21.5% 0.0% 33.1% TOU-8-SEC TOU-8-PRI TOU-8-SUB LARGE POWER 35.9% 22.5% 3.3% 61.6% TOU-8-SEC-STBY TOU-8-PRI-STBY TOU-8-SUB-STBY STANDBY 1.0% 3.1% 0.0% 4.1% TOU-PA-2 TOU-PA-3 AG & PUMP 0.0% 2.1% 2.1% STREETLIGHTS 0.0% TOTAL 100.0% The methodology adopted to allocate the SGIP revenue requirement differs from what was used previously. For this reason, the program revenue requirement is allocated differently from others that are recovered through the same Public Purpose Programs Charge (PPPC). Finally, in this advice letter SCE confirms that it will return to ratepayers all unallocated SGIP funds remaining as of January 1, 2026. The disposition of any over-collected
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ADVICE 4169-E (U 338-E) -4- February 24, 2020 balance in the SGPICMA at the end of the program will be in an April Energy Resource Recovery Account (ERRA) Application, or any other proceeding authorized by the Commission. PROPOSED TARIFF CHANGES As discussed above and in accordance with OP 2 of D.20-01-021, SCE modifies Preliminary Statement, Part N.3., SGPICMA, to reflect SCE’s 2020 – 2024 annual authorized funding level of $56 million. In its April 2020 consolidated revenue requirement and rate change advice letter, SCE will include $56 million of SGIP funding in Public Purpose Programs Charge (PPPC) levels. No cost information is required for this advice letter. This advice letter will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.1, and OP 2 of D.20-01-021, this Advice Letter is submitted with a Tier 1 designation. EFFECTIVE DATE SCE respectfully requests that this advice letter become effective February 24, 2020, which is the same date as submitted. NOTICE Anyone wishing to protest this advice letter may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice letter. Protests should be submitted to: CPUC, Energy Division Attention: 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 should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:
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ADVICE 4169-E (U 338-E) -5- February 24, 2020 Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Telephone: (626) 302-9645 Facsimile: (626) 302-6396 E-mail: AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com There are no restrictions on who may submit a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above. In accordance with General Rule 4 of General Order (GO) 96-B, SCE is serving copies of this advice letter to the interested parties shown on the attached GO 96-B and R.12-11-005 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 302-3719. For changes to all other service lists, please contact the CPUC’s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by submitting and keeping the advice letter at SCE’s corporate headquarters. To view other SCE advice letters submitted with the CPUC, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters. For questions, please contact Matt Sheriff at (626) 302-1895 or by electronic mail at Matt.Sheriff@sce.com. Southern California Edison Company /s/ Gary A. Stern Gary A. Stern, Ph.D. GAS:ms:cm Enclosures
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ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Southern California Edison Company (U 338-E) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Darrah Morgan Phone #: (626) 302-2086 E-mail: AdviceTariffManager@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 4169-E Subject of AL: Modifications to Southern California Edison Company’s Self-Generation Program Incremental Cost Memorandum Account in Compliance with Decision 20-01-021 Keywords (choose from CPUC listing): Compliance, Self-Generation, Memorandum Account AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 20-01-021 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: 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: 2/24/20 No. of tariff sheets: -2- Estimated system annual revenue effect (%): Estimated system average rate effect (%): 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 A Service affected and changes proposed1: Pending advice letters that revise the same tariff sheets: None 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: Gary A. Stern, Ph.D. Title: Managing Director, State Regulatory Operations Utility Name: Southern California Edison Company Address: 8631 Rush Street City: Rosemead Zip: 91770 State: California Telephone (xxx) xxx-xxxx: (626) 302-9645 Facsimile (xxx) xxx-xxxx: (626) 302-6396 Email: advicetariffmanager@sce.com Name: Laura Genao c/o Karyn Gansecki Title: Managing Director, State Regulatory Affairs Utility Name: Southern California Edison Company Address: 601 Van Ness Avenue, Suite 2030 City: San Francisco State: California Zip: 94102 Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: (415) 929-5544 Email: karyn.gansecki@sce.com Clear Form
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ENERGY Advice Letter Keywords Affiliate Direct Access Preliminary Statement Agreements Disconnect Service Procurement Agriculture ECAC / Energy Cost Adjustment Qualifying Facility Avoided Cost EOR / Enhanced Oil Recovery Rebates Balancing Account Energy Charge Refunds Baseline Energy Efficiency Reliability Bilingual Establish Service Re-MAT/Bio-MAT Billings Expand Service Area Revenue Allocation Bioenergy Forms Rule 21 Brokerage Fees Franchise Fee / User Tax Rules CARE G.O. 131-D Section 851 CPUC Reimbursement Fee GRC / General Rate Case Self Generation Capacity Hazardous Waste Service Area Map Cogeneration Increase Rates Service Outage Compliance Interruptible Service Solar Conditions of Service Interutility Transportation Standby Service Connection LIEE / Low-Income Energy Efficiency Storage Conservation LIRA / Low-Income Ratepayer Assistance Street Lights Consolidate Tariffs Late Payment Charge Surcharges Contracts Line Extensions Tariffs Core Memorandum Account Taxes Credit Metered Energy Efficiency Text Changes Curtailable Service Metering Transformer Customer Charge Customer Owned Generation Mobile Home Parks Name Change Transition Cost Transmission Lines Decrease Rates Non-Core Transportation Electrification Demand Charge Non-firm Service Contracts Transportation Rates Demand Side Fund Nuclear Undergrounding Demand Side Management Oil Pipelines Voltage Discount Demand Side Response PBR / Performance Based Ratemaking Wind Power Deposits Portfolio Withdrawal of Service Depreciation Power Lines Clear Form
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Public Utilities Commission 4169-E Cal. P.U.C. Sheet No. Title of Sheet Attachment A Cancelling Cal. P.U.C. Sheet No. Revised 68613-E Preliminary Statements N Revised 66062-E Revised 68614-E Table of Contents Revised 68567-E 1
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised Cal. PUC Sheet No. Cal. PUC Sheet No. 68613-E 66062-E Sheet 4 PRELIMINARY STATEMENT (Continued) N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued) e. Catastrophic Event: A Catastrophic Event is an event which is declared a disaster by competent state or federal authorities. 3. Self-Generation Program Incremental Cost (SGPIC) Memorandum Account: The purpose of the SGPIC Memorandum Account is to track the recorded incremental self-generation program costs and authorized distribution revenue requirement recorded in the Base Revenue Requirement Balancing Account (BRRBA) associated with SCE’s Self-Generation Incentive Program. Effective March 1, 2019, the authorized SGPIC funding will be recorded in the Public Purpose Programs Adjustment Mechanism (PPPAM). SGPIC Authorized Annual Funding Levels: Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Amount $28 million $28 million $28 million $28 million $28 million $28 million $56 million $56 million $56 million $56 million $56 million $56 million $56 million $56 million Authority D.09-12-047 D.11-12-030 D.11-12-030 D.11-12-030 D.14-12-033 D.14-12-033 D.17-04-017 D.17-04-017 D.17-04-017 D.20-01-021 D.20-01-021 D.20-01-021 D.20-01-021 D.20-01-021 (N) | | | (N) *Pursuant to OP 2 of D.11-12-030, the Energy Division will submit an SGIP budget report for 2013 and 2014 to the Administrative Law Judge (ALJ) and assigned Commissioner containing recommendations on potential adjustments to the 2013 and 2014 authorized revenues. This report is due by March 15, 2013 or as modified by the ALJ. Monthly entries to the SGPIC Memorandum Account shall be determined as follows: I. A debit entry to reflect the actual incremental program costs associated with the Self-Generation Incentive Program; and II. A credit entry to record 1/12th of the Authorized Annual Funding Level for Self-Generation Incentive Program. (Continued) (To be inserted by utility) Advice 4169-E Decision 20-01-021 4D9 Issued by Carla Peterman Senior Vice President (To be inserted by Cal. PUC) Date Submitted Feb 24, 2020 Effective Resolution
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised TABLE OF CONTENTS Cal. PUC Sheet No. Cal. PUC Sheet No. 68614-E 68567-E Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES ..688614-68395-68396-68568-68569-68570-68571-E ........................................................................................................... 68572-68014-68015-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 68015-E TABLE OF CONTENTS - RULES ................................................................................. 68373-64043-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 62213-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 62213-68473-61576-67878-67879-61631-E ........................................................................................................... 67880-67881-63296-E (T) PRELIMINARY STATEMENT: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Territory Served ......................................................................................................... 22909-E Description of Service ................................................................................................ 22909-E Procedure to Obtain Service ..................................................................................... 22909-E Establishment of Credit and Deposits ....................................................................... 22909-E General .......................................................................... 45178-45179-45180-53818-45182-E Symbols ..................................................................................................................... 45182-E Gross Revenue Sharing Mechanism .......26584-26585-26586-26587-27195-27196-54092-E .................................................................................................. 51717-53819-27200-27201-E Baseline Service ........................................................... 52027-52028-52029-52030-52031-E Charge Ready Program Balancing Account ........................................ 68156-68157-68158-E Pole Loading and Deteriorated Pole Program Balancing Account....... 68384-67495-68385-E ......................................................................................................................... 68386-67498-E Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E Purchase Agreement Administrative Costs Balancing Account ........... 55207-51922-55208-E Income Tax Component of Contributions ....................................................... 58419-58420-E Memorandum Accounts.... 21344-67638-67412-68613-49492-61165-61166-61167-53821-E ........ 50418-42841-61168-64869-64870-44950-44951-44952-44953-42849-42850-42851-E ........ 65677-65678-55623-61171-42856-61172-61173-52033-50419-55048-61174-42863-E ........ 42864-67639-67640-51235-45920-51236-61175-50209-42872-42873-50421-46539-E ........ 42876-42877-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ........ 53321-53322-61176-52551-52552-49928-56235-56236-56237-55144-55145-44029-E ........ 53016-57156-57157-51163-51164-51165-51166-67414-51168-51169-51170-51171-E ................................ 51244-55806-56393-56394-56395-56396-56397-56398-56399-58978E California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E .................................................................................................. 36472-38847-56788-68186-E Tree Mortality Non-Bypassable Charge Balancing Account………...65929-65930-65931-E (Continued) (To be inserted by utility) Advice 4169-E Decision 20-01-021 1D8 Issued by Carla Peterman Senior Vice President (To be inserted by Cal. PUC) Date Submitted Feb 24, 2020 Effective Resolution (T)
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