Details for: PGE AL 5833-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

May 22, 2020

Advice 5833-E
(Pacific Gas and Electric Company ID U 39 E)

Public Utilities Commission of the State of California
Subject:

Decision 20-05-008 Adopting Settlement Agreement Between
Peninsula Corridor Joint Powers Board and Pacific Gas and Electric
Company to Describe Cost Allocation Principles Pursuant to
Resolution E-4886

Purpose
Decision (D.) 20-05-008 (the Decision), issued on May 14, 2020, approves the
proposed settlement agreement regarding allocation of costs between Pacific Gas and
Electric Company (PG&E) and the Peninsula Corridor Joint Powers Board (Caltrain), for
work performed by PG&E as part of enabling Caltrain to convert its passenger rail
service from diesel-powered to electric (Caltrain Project). The decision also orders
PG&E to file a detailed current cost estimate1 for the Caltrain Project within ten days of
the Decision’s issuance date.
Background
On September 27, 2018, the California Public Utilities Commission (Commission or
CPUC) issued Resolution E-4886, which approved, in part, an agreement between
PG&E and Caltrain, but which also directed PG&E to file a separate application
regarding cost allocation principles to be applied to the Caltrain Project.
On December 19, 2018, PG&E filed that cost allocation application (Application). On
May 13, 2019, as part of the proceedings in that Application docket, PG&E filed an
updated cost estimate, referred to as Updated Exhibit B-2, for the Caltrain Project. That
estimate was done at an AACE Class 3 level and indicated that the total cost of the
Caltrain Project would be approximately $106.9 million, but with the AACE Class 3
contingency of 30%, the total cost could be approximately $139 million.

1

The cost estimate attached is Updated Exhibit B-2 of Supplement No. 4, previously submitted
in Advice 5426-E.





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Advice 5833-E -2- May 22, 2020 On September 23, 2019, Caltrain and PG&E (Settling Parties) filed a joint motion for approval of a settlement that would resolve the cost allocation issues relating to the Caltrain Project. On May 14, 2020, the CPUC issued the Decision approving the proposed settlement agreement. Discussion • • Pursuant to D.20-05-008, PG&E was directed to submit a Tier 1 Advice Letter with the Commission’s Energy Division within ten days of the Decision’s issuance detailing the current cost estimate of the Caltrain Project. PG&E was also directed to submit a Tier 1 Advice Letter in the event that the actual Caltrain Project costs exceed the AACE Class 3 estimate of $139M. At this time, PG&E does not have any cost estimate for the Caltrain Project that is more current than the estimate contained in the Updated Exhibit B-2 submitted as part of the record of the Application proceeding. Accordingly, to comply with the ordering paragraph in the Decision, PG&E is resubmitting Updated Exhibit B-2, with this Advice Letter. However, given the events of the last two months, it is possible that the cost estimate reflected in the Decision (and in Updated Exhibit B-2) will be exceeded. If and when that happens, PG&E will submit another Tier 1 Advice submittal. Safety The actual work being performed on the Caltrain Project (oversight, design, and construction) presents no specific safety risks to the public or employees. All designs and specifications produced will conform to all current and applicable Commission, industry, and PG&E safety requirements. PG&E issued COVID-19 work plan guidelines on March 19, 2020, which paused noncritical construction in line with Governor Newsom’s Executive Order N-33-20. The Caltrain Project was designated as Essential Critical Infrastructure construction and Caltrain requested an exception to the Executive Order for PG&E construction to resume. PG&E restarted construction on April 27, 2020, with smaller crews on site and a safety plan in place, including six-foot distancing of workers. Protests ***Due to the COVID-19 pandemic and the shelter at home orders, PG&E is currently unable to receive protests or comments to this advice letter via U.S. mail or fax. Please submit protests or comments to this advice letter to EDTariffUnit@cpuc.ca.gov and PGETariffs@pge.com***
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Advice 5833-E -3- May 22, 2020 Anyone wishing to protest this submittal may do so by letter sent via U.S. mail, facsimile, or E-mail, no later than June 11, 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. 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 the Commission approves this Tier 1 advice submittal effective May 22, 2020.
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Advice 5833-E -4- May 22, 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. 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 filings can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations Attachments Attachment 1: Updated Exhibit B-2 cc: John Funghi, Caltrain FunghiJ@samtrans.com Stacy Cocke, Caltrain cockes@samtrans.com Zhenlin Guan, Caltrain guanz@samtrans.com Liria Larano, Caltrain laranol@samtrans.com Julie A. Sherman, Hanson Bridgett LLP jsherman@hansonbridgett.com Joan Cassman, Hanson Bridgett LLP jcassman@hansonbridgett.com
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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: 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: 1 Advice Letter (AL) #: 5833-E Subject of AL: Decision 20-05-008 Adopting Settlement Agreement Between Peninsula Corridor Joint Powers Board and Pacific Gas and Electric Company to Describe Cost Allocation Principles Pursuant to Resolution E-4886 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.20-05-008 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: 5/22/20 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: 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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Advice 5833-E Attachment 1 Updated Exhibit B-2
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EXHIBIT B-2 TO SUPPLEMENT NO. 4 (Updated with AACE 3 Cost Estimates and the Cost Allocation Percentage Agreed to in the Proposed Settlement) For Informational Purposes: Preliminary Cost Allocation Table for PG&E Work Under Supplement Nos. 3 and 4 Line Items Scope of Work Interconnection at Distribution Voltage ($K) Interconnection at Transmission Voltage ($K)* PG&E % PG&E Cost Caltrain ($K) % Caltrain Cost ($K) CPUC Equivalent OneJurisdictional Time Payment Facilities (EOTP)** ($K)*** Scope Document Sections South SF - East Grand Substation Section 2: J.O. 74000343 Caltrain Site 1 Station Metering Section 3: J.O. 74000343 East Grand Substation Interconnection Facility Section 4: J.O. 74013118 Martin Substation Relay Upgrades Section 5: J.O. 74013119 San Mateo Substation Relay Upgrades Section 6: J.O. 74013117 Station MA Relay Upgrade Section 8: J.O. 74013220 SFGO SF RAS Relay Upgrades Section 9: J.O. 74013221 VGCC SF RAS Relay Upgrades 1 System protection at substation and connected substations N/A $ 6,666 2 Substation upgrades triggered by 1st feed (including but not limited to upgrading the bus, additional breakers and switches, and reconfiguration) N/A $ 35,529 3 Customer facilities such as breakers and associated protection-automation package for 1st feed N/A $ 5,436 Section 3: J.O. 74000343 East Grand Substation Interconnection Facility 4 Customer facilities such as breakers and associated protection-automation package for 2nd feed N/A $ 5,436 Section 3: J.O. 74000343 East Grand Substation Interconnection Facility 5 Total cost East Grand substation work $ 53,067 $ 2,600 Section 1: J.O. 74000343 Caltrain Site 1 Station Section 3: J.O. 74000343 East Grand Substation Interconnection Facility Section 7: J.O. 74000342 East Grand Substation T-Line San Jose FMC Substation 3,956 Section 2: J.O. 74007941 Caltrain Site 3 Station Metering Section 3.1: J.O. 74007941 FMC Substation Interconnection Facility Section 4: J.O. 74013223 San Jose B Substation Relay Upgrades Section 5: J.O. 74013222 Kifer Substation Relay Upgrade Section 6: J.O. 74013224 Trimble Substation Terminal Upgrade $ 37,945 Section 1: J.O. 74007941 Caltrain Site 3 Station Section 3.1: J.O. 74007941 FMC Substation Interconnection Facility 5,590 Section 7: J.O. 74007942 FMC Substation T-line Section 8: J.O. 74013225 Trimble - San Jose B 115kV Line Rerate N/A $ 5,957 Section 3.1: J.O. 74007941 FMC Substation Interconnection Facility N/A $ 5,957 Section 3.1: J.O. 74007941 FMC Substation Interconnection Facility 6 System protection at substation and connected substations N/A 7 Substation upgrades triggered by 2nd feed (including but not limited to upgrading the bus, additional breakers and switches, and reconfiguration) N/A 8 Customer facilities such as breakers and associated protection-automation package for 1st feed 9 Customer facilities such as breakers and associated protection-automation package for 2nd feed 10 Total Cost FMC Substation work 11 Total Cost Exclusive of EOTP and ITCC**** 12 Overall percentage of total cost, referenced in the Table in Section 4(b) of Supp. No. 4, exclusive of EOTP and ITCC* $ $ N/A 53,816 $ $ 106,883 $ $42,753 64,130 60% $ 8,190 40% 13 EOTP** $ 14 Total Caltrain Cost inclusive of EOTP but not ITCC $ 47,360 4,607 15 Total Caltrain Cost inclusive of 22% ITCC $ 52,159 16 Total Caltrain Cost inclusive of 22% ITCC and EOTP $ 56,765 * Numbers shown are AACE 3 expected case cost estimate, based on scope of work from the Scoping Document. The actual amount of dollars to be allocated is intended to be based on the percentage allocation set forth in the Settlement Agreement and the actual costs incurred. **See Section V.A of the Settlement Agreement for the EOTP formula and Attachment 3 to the Settlement Agreement for a sample calculation. Calculation in Line 13 is based on current AACE 3 expected case cost estimate and the 40% allocation of capital costs Caltrain agreed to in the Settlement Agreement. 8
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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 Downey & Brand East Bay Community Energy Ellison Schneider & Harris LLP Energy Management Service Alta Power Group, LLC Anderson & Poole Engineers and Scientists of California Atlas ReFuel BART Barkovich & Yap, Inc. 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 Crossborder Energy Crown Road Energy, LLC Davis Wright Tremaine LLP Day Carter Murphy Dept of General Services Don Pickett & Associates, Inc. Douglass & Liddell GenOn Energy, Inc. Goodin, MacBride, Squeri, Schlotz & Ritchie 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. Los Angeles County Integrated Waste Management Task Force MRW & Associates Manatt Phelps Phillips Marin Energy Authority McKenzie & Associates Modesto Irrigation District NLine Energy, Inc. NRG Solar Office of Ratepayer Advocates OnGrid Solar Pacific Gas and Electric Company Peninsula Clean Energy Pioneer Community Energy 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 Water and Energy Consulting Wellhead Electric Company Western Manufactured Housing Communities Association (WMA) Yep Energy
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