Details for: 4291-E et al. (Part 1 of 1).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

September 10, 2020

Advice 5945-E
(Pacific Gas and Electric Company ID U 39 E)
Advice 4291-E
(Southern California Edison Company U 338-E)
Advice 3606-E

(San Diego Gas & Electric Company U 902-E)

Public Utilities Commission of the State of California
Subject

Joint Advice Letter Submission of Pacific Gas and Electric Company,
Southern California Edison Company, and San Diego Gas & Electric
Company With Proposed “Common Function” Definition Requirement
for General Market Virtual Net Energy Metering Successor Tariffs
Pursuant to Decision 20-08-002, Ordering Paragraph 5

Purpose
Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE),
and San Diego Gas & Electric Company (SDG&E), (collectively the Joint Utilities), submit
this joint advice letter to propose additional modifications regarding a “common function”
to the definition of property in their respective general market Virtual Net Energy Metering
(VNEM) rate schedules pursuant to California Public Utilities Commission (CPUC or
Commission) Decision (D.) 20-08-002 Ordering Paragraph (OP) 5. This advice letter is
being submitted concurrently with an advice letter from PG&E (AL 5942-E per OP3),
and from SCE (AL 4290-E per OP4), which include a new, specified definition of
“property” to align with that of SDG&E.
Background
In February 2009, the Joint Utilities submitted advice letters pursuant to D.08-10-036 1
OP5 to create VNEM Rate Schedules for low income property receiving incentives under
Multifamily Affordable Solar Housing (MASH) Program. They included a limitation that the
buildings must be served from one customer service delivery point.

1

D. 08-10-036 Decision Establishing Multifamily Affordable Solar Housing Program Within The
California Solar Initiative – Issued October 20, 2008.





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Advice 5945-E, et al. -2- September 10, 2020 Shortly thereafter in 2010, advice letters were submitted by the Joint Utilities that included a new definition of that allowed VNEM for a single low-income housing enterprise on contiguous parcels of land. In 2011, pursuant to D.11-07-0312 OP 2 the Joint Utilities submitted tariffs to effectively spinoff from low income VNEM, a new general market VNEM (NEMV for PG&E, NEM-V for SCE, NEM-V for SDG&E) “served by a single service delivery point.” These tariffs incorporated the D. 11-07-031 OP 17 requirement that general market VNEM metering tariff limitation to a service delivery point (SDP) be expanded slightly to allow Customer-owned line extensions that deliver power to other meters on the same Property. Notably the modification prescriptively minimal, and a definition comparable to that for the low-income program for multiple parcels on contiguous parcels was not adopted. In 2016, with the Joint Utilities legislated net energy metering enrollment cap approaching, D. 16-01-0443 laid out the requirements for the net energy metering successor. The Joint Utilities’ ALs were submitted and approved in time creating each Joint Utilities’ successor tariffs. Notably, D.16-01-044 required for general market VNEM’s applicability that: “…the [Virtual Net Energy Metering (VNM)] tariff should be expanded to allow multiple service delivery points at a single site under the tariff. This has been allowed under the MASH VNM tariff since the adoption of D.11-07-031, and has been used successfully by participants, without administrative problems.” [emphasis added] Resolution E-47924 approving the Joint Utilities’ successor tariffs5 adopting the property definition above, which then went into effective upon reach each of the Joint Utilities reaching its NEM cap or the mandated regulatory program deadline. 2 3 4 5 D. 11-07-031 California Solar Initiative Phase One Modification – Issued July 20, 2011. D. 16-01-044 - Decision Adopting Successor To Net Energy Metering Tariff – Issue February 5, 2016. Resolution E-4792. Adoption of PG&E’s, SCE’s and SDG&E’s Net Energy Metering (NEM) successor tariffs as directed by Decision 16-01-044. Issued June 24, 2016. Pacific Gas & Electric Company (PG&E) AL 4802-E/A, Southern California Edison Company (SCE) AL 3371-E and San Diego Gas & Electric Company (SDG&E) AL 2860-E/A (collectively, NEM successor tariff ALs), filed on February 29, 2016. (per E-4792 page 1)
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Advice 5945-E, et al. -3- September 10, 2020 On November 20, 2019, CALSSA6 filed a petition for modification7 (PFM) D.16-01-044, requesting the Commission, in CALSSA’s words, to “resolve ambiguity in the way that eligible properties are defined for purposes of participation in…VNEM.” On August 11, 2020, D. 20-08-0028 was issued in response to CALSSA’s PFM. The Commission held that CALSSA’s PFM failed to justify its late submission, pursuant to Rule 16.4(d). Nevertheless, the Commission concludes that Non-MASH VNEM eligibility should be the same as for MASH VNEM). Per the Decision: “The Commission’s intent is apparent from D.16-01-044, which adopted the CALSEIA (now CALSSA) proposal without modification: to make VNEM eligibility requirements for non-MASH multifamily and multitenant customers the same as for affordable housing tenants. Specifically, customers or accounts behind multiple service delivery points and on multiple contiguous parcels (whether tax /assessor or legal) may take service on a VNEM tariff, and thereby receive credits from the same eligible renewable generating facility, provided those customers or accounts are part of the same multitenant or multi-meter facility (as specified in each electric IOU’s VNEM tariff).”9 [emphasis added] Consequently, D. 20-08-002 OP 3 (for PG&E), OP4 (for SCE) requires: “Within 30 days after the issue date of this decision, Pacific Gas and Electric Company shall submit a Tier 2 advice letter proposing revisions to its NEM2V tariff to make effective the following definition of “Property”: Property: All of the real property and apparatus employed in a single multi-tenant or multi-meter facility on contiguous parcels of land. These parcels may be divided by a dedicated street, highway or public thoroughfare or railway, so long as they are otherwise contiguous, part of the same single multitenant or multi-meter facility, and all under the same ownership.” As noted above, this Tier 2 advice letter is being submitted concurrently with an AL by PG&E and SCE to incorporate and align with SDG&E the specific language above for the property definition for each Joint Utilities’ respective general market VNEM tariff. PG&E notes that if and until this Advice Letter is approved, the size of the NEM2V arrangement is only limited by commonly owned and contiguous parcels. 6 7 8 9 On February 8, 2018, The California Solar Energy Industries Association filed a notice of name change to California Solar & Storage Association (CALSSA). Petition for Modification of the California Solar & Storage Association Regarding Clarification of Virtual Net Energy Metering Eligibility Requirements, filed November 20, 2019 (Petition), at 1. D. 20-08-07 Decision Modifying Decision 16-01-044 Regarding Virtual Net Energy Metering Eligibility Requirements - Date of Issuance 8/11/20 D. 20-08-007, Page 9.
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Advice 5945-E, et al. -4- September 10, 2020 Although CALSSA’s PFM did not seek to have “common function” removed from the definition of “property”, and no party requested this, the decision removed this term from the prescribed definition. No discussion of or reference to the “common function” requirement in the PG&E and SCE tariffs was undertaken by any of the petition, the Proposed Decision (PD), or the Administrative Law Judge’s May 13, 2020 ruling that preceded the PD. Concerning OP 5, the subject of this advice letter, D. 20-08-002 notes: In comments jointly filed to the proposed decision, the large electric IOUs emphasize the importance of retaining the requirement, contained in PG&E’s and SCE’s current tariffs but not in SDG&E’s, that an eligible property serve a common function. The electric IOUs assert that retaining this requirement helps prevent a customer from taking on LSE responsibilities. In reply comments to the proposed decision, CALSSA questions the necessity of including the “common function” requirement and further raises concern that the electric IOUs may interpret “common function” inconsistently, given there is no explicit definition of the term in either PG&E’s or SCE’s tariffs. Given the concerns raised by CALSSA, we will not require the electric IOUs to include the “common function” requirement in their respective general market VNEM tariffs, but they may propose to do so as part of proposing modifications to their respective general market VNEM tariffs. If the electric IOUs propose including the “common function” requirement in the definition of an eligible property, as part of proposing modifications to their respective general market VNEM tariffs, they must each include a proposed definition of “common function” that is the same across all three IOUs. We urge the IOUs to engage with stakeholders on these proposed modifications prior to submitting them for approval. Consistent with OP 5, Joint Utilities seek to pursue the option to include a definition of “common function” to further clarify and delimit the definition being adopted in the OP3 advice letter. On September 3, 2020, representative of the Joint Utilities met with representatives of CALSSA and Blue Sky (the Stakeholders) in a confidential meeting under CPUC Rule of Practice and Procedure 12.6 to discuss a proposed definition for “common function”. Joint Utilities and Stakeholders were unable to reach agreement. Joint Utilities submit this Tier 2 Advice Letter in accordance with OP 5 today September 10, 2020, in a timely fashion 30 days after the issuance of D. 20-08-002 (on August 11, 2020). Upon approval of this Advice Letter, Joint Utilities will each submit a subsequent advice letter with the corresponding tariff changes.
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Advice 5945-E, et al. -5- September 10, 2020 Proposed Tariff Revisions This advice letter proposes to modify (in red) the definition of Property in each IOUs general market VNEM tariff as follows: Property: All of the real property and apparatus employed in a single multi-tenant or multi-meter facility on contiguous parcels of land. These parcels may be divided by a dedicated street, highway or public thoroughfare or railway, so long as they are otherwise contiguous, part of the same single multitenant or multi-meter facility, and all under the same ownership. The accounts located on the parcels in the VNEM arrangement must serve a Common Function. “Common Function” in the context of VNEM shall mean: • All accounts are either Commercial or Residential, but not both (unless the mixed use is on a single parcel); AND • The accounts serve a branded single enterprise; AND • The customer of record responsible for the generator account cannot otherwise serve as a Load Serving Entity. This Joint Utilities’ proposed “common function” requirement will help limit the applicability of the tariff and the availability of VNEM benefits, which includes a substantial subsidy from bundled customers, many of whom cannot access the benefits of rooftop solar. Without the “common function” requirement, substantial adverse consequences can be anticipated, including extending the inequitable net metering cross-subsidy at a time when the Commission is preparing to fix it, and introducing system reliability issues attendant to incenting large solar generators serving diverse enterprises behind the meter. 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*** Anyone wishing to protest this submittal may do so by letter sent via U.S. mail, facsimile or E-mail, no later than September 30, 2020, which is 20 days after the date of this submittal. 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
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Advice 5945-E, et al. -6- September 10, 2020 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: For PG&E 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 For SCE 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) 302-6394 Email: 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 For SDG&E Greg Anderson Regulatory Tariff Manager E-mails: GAnderson@sdge.com SDGETariffs@sdge.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
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Advice 5945-E, et al. -7- September 10, 2020 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, October 10, 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 and the parties on the service lists for R. 14-07-002 (NEM) and R.07-07-007 (Rule 21). 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: /S/ Erik Jacobson Director, Regulatory Relations cc: Service List R.17-07-007 Service List R. 14-07-002
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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 U39E) 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: 2 Advice Letter (AL) #: 5945-E et al. Subject of AL: Joint Advice Letter Submission of Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company With Proposed “Common Function” Definition Requirement for General Market Virtual Net Energy Metering Successor Tariffs Pursuant to Decision 20-0 Keywords (choose from CPUC listing): Compliance, Metering AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D.20-08-002 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: 10/10/20 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 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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