Details for: SDG&E AL 3698-E.pdf


Click on the image for full size preview

Document data

Clay Faber - Director
Regulatory Affairs
8330 Century Park Ct
San Diego, CA 92123
CFaber@sdge.com

February 22, 2021
ADVICE LETTER 3698-E
(U 902-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
SUBJECT:

ESTABLISHMENT OF MICROGRID BALANCING ACCOUNT (MGBA) PURSUANT
TO DECISION 21-01-018

PURPOSE
San Diego Gas & Electric Company (SDG&E) hereby submits this advice letter for approval to the
California Public Utilities Commission (Commission) for additions to its electric Preliminary Statements
of Section II Balancing Accounts, applicable throughout its service territory, as shown in Attachment A.
BACKGROUND
On September 12, 2019, the Commission initiated Rulemaking (R.) 19-09-009 to design a framework
for the commercialization of microgrids in accordance with Senate Bill (SB) 1339 and to account for
the Commission’s commitment to technologies and activities that may be useful for achieving overall
resiliency goals.
The Assigned Commissioner’s Scoping Memo and Ruling for Track 1 adopted a schedule for this
proceeding, divided into three tracks.1 Track 1 encompasses the Commission’s goal of deploying
resiliency solutions in areas that are prone to outage events and wildfires, with the goal of putting
some microgrid and other resiliency strategies in place by spring or summer 2020, if not sooner.2,3
Track 2 of this proceeding encompasses the more complex issues and contours of SB 1339
implementation, including developing standards, protocols, guidelines, methods, rates, and tariffs to
support and reduce barriers to microgrid deployment statewide, while prioritizing system, public, and
worker safety, and avoiding cost shifts between ratepayers. On January 21, 2021, the Commission
issued D.21-01-018 for Track 2, adopting microgrid rates, tariffs, and rules to facilitate the
commercialization of microgrids pursuant to SB 1339.

1

Assigned Commissioner’s Scoping Memo and Ruling for Track 1 (December 20, 2019), at 2.
Id. at 3.
3
On June 11, 2020, the Commission adopted Decision (D.) 20-06-017 that included a number of requirements
to accelerate the interconnection of resiliency projects in advance of the upcoming wildfire season; modernize
tariffs to maximize social resiliency benefits; and promote collaborative engagement between large investorowned utilities (utilities) and local and tribal governments.
2





- Page 1 -

Public Utilities Commission 2 February 22, 2021 Pursuant to D.21-01-018 Ordering Paragraph (OP) 8, SDG&E submits this Tier 1 Advice Letter to modify its electric preliminary statement to establish a one-way Microgrid Balancing Account (MGBA), as described in Attachment A. The MGBA shall have two subaccounts to record incremental costs, offset by authorized revenue, for electrical isolation technology evaluation and microgrid program evaluation.4 DISCUSSION This advice letter seeks to establish the MGBA, as detailed in the preliminary statement, Attachment A. The disposition of the MGBA subaccounts for electrical isolation technology and program evaluation will be through SDG&E’s Annual Electric Regulatory Account Update advice letter filing. Electrical Isolation Technology Evaluation D.21-01-018 OP 9 requires the utilities to submit advice letters that define the criteria and evaluation process to assess different isolation technologies and record the costs in a new one-way balancing account. These costs are to be recovered through distribution rates via the Annual Electric True-up5 advice letter filing.6 The revenue requirement is capped at $3 million to be allocated across the utilities.7 Program Evaluation OP 12 requires Energy Division to hire a neutral third-party contractor to review and evaluate the effectiveness of the changes adopted by D.20-06-017 and D.21-01-018, the new microgrid tariff, the new microgrid incentive programs, and the pilot studies to assure competitiveness and ratepayer best interest pursuant to Section 3.9.3 of D.21-01-018. The costs for the third-party contractor are to be recorded in the new one-way balancing account and recovered in distribution rates through the Annual Electric True-up advice letter filing.8 The budget is capped at $1 million, subject to downward adjustment by Energy Division.9 4 5 6 7 8 9 OP 16 authorizes the utilities to create a third subaccount for the new Clean Substation Microgrid Program within the one-way balancing account if they intend to pursue any upcoming clean substation microgrid projects, pursuant to the requirements in Appendix A, Section I.2, of D.21-01-018. SDG&E does not intend to pursue any clean substation microgrid projects at this time and therefore does not propose the additional subaccount. SDG&E reserves the right to request establishment of the clean substation microgrid subaccount in a future Tier 3 advice letter as directed by D.21-01-018. SDG&E’s advice letter is called the Annual Electric Regulatory Account Update. D.21-01-018, at 79. Id. D.21-01-018, at OP 12. Id., at 91.
- Page 2 -

Public Utilities Commission 3 February 22, 2021 EFFECTIVE DATE This filing is subject to Energy Division disposition and should be classified as Tier 1 pursuant to OP 8 of D.21-01-018, which SDG&E respectfully requests become effective on February 22, 2021, which is the date of this submittal. PROTEST Anyone may protest this Advice Letter to the California Public Utilities Commission. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. The protest must be made in writing and must be received by March 15, 2021, which is 21 days from the date filed. There is no restriction on who may file a protest. The address for mailing or delivering a protest to the Commission is: CPUC Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Copies of the protest should also be sent via e-mail to the attention of the Energy Division Tariff Unit (EDTariffUnit@cpuc.ca.gov). A copy of the protest should also be sent via e-mail to the address shown below on the same date it is mailed or delivered to the Commission. Attn: Greg Anderson Regulatory Tariff Manager E-Mail: GAnderson@sdge.com and SDGETariffs@sdge.com NOTICE A copy of this filing has been served on the utilities and interested parties shown on the attached list and Service List R.19-09-009, by either providing them a copy electronically or by mailing them a copy hereof, properly stamped and addressed. Address changes should be directed to SDG&E Tariffs by e-mail at SDGETariffs@sdge.com. __________________________________ CLAY FABER Director – Regulatory Affairs
- Page 3 -

ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: San Diego Gas & Electric (U902) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Joff Morales Phone #: 858-650-4098 E-mail: JMorales@sdge.com E-mail Disposition Notice to: SDGETariffs@sdge.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 3698-E Subject of AL: Establishment of Microgrid Balancing Account (MGBA) Pursuant to Decision 21-01-018 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.21-01-018 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: N/A Summarize differences between the AL and the prior withdrawn or rejected AL: N/A 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: 2/22/21 No. of tariff sheets: 5 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: 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 4 -

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: Greg Anderson Title: Utility Name: San Diego Gas & Electric Address: 8330 Century Park Court, CP32C City: San Diego Zip: 92123 State: California Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Email: GAnderson@sdge.com Name: Title: Utility Name: Address: City: State: District of Columbia Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Email: Zip: Clear Form
- Page 5 -

cc: (w/enclosures) Public Utilities Commission CA. Public Avocates (CalPA) R. Pocta Energy Division M. Ghadessi M. Salinas L. Tan R. Ciupagea Tariff Unit CA Energy Commission B. Penning B. Helft Advantage Energy C. Farrell Alcantar & Kahl LLP M. Cade K. Harteloo AT&T Regulatory Barkovich & Yap, Inc. B. Barkovich Biofuels Energy, LLC K. Frisbie Braun & Blaising, P.C. S. Blaising D. Griffiths Buchalter K. Cameron M. Alcantar CA Dept. of General Services H. Nanjo California Energy Markets General California Farm Bureau Federation K. Mills California Wind Energy N. Rader Cameron-Daniel, P.C. General City of Poway Poway City Hall City of San Diego L. Azar J. Cha D. Heard F. Ortlieb H. Werner M. Rahman General Order No. 96-B ADVICE LETTER SUBMITTAL MAILING LIST Clean Energy Renewable Fuels, LLC P. DeVille NRG Energy D. Fellman Clean Power Research T. Schmid G. Novotny Pacific Gas & Electric Co. M. Lawson M. Huffman Tariff Unit Commercial Energy J. Martin regulatory@commercialenergy.net Davis Wright Tremaine LLP J. Pau Douglass & Liddell D. Douglass D. Liddell Ellison Schneider Harris & Donlan LLP E. Janssen C. Kappel Energy Policy Initiatives Center (USD) S. Anders RTO Advisors S. Mara SCD Energy Solutions P. Muller Shute, Mihaly & Weinberger LLP O. Armi Solar Turbines C. Frank SPURR M. Rochman Southern California Edison Co. K. Gansecki Energy Regulatory Solutions Consultants L. Medina TerraVerde Renewable Partners LLC F. Lee Energy Strategies, Inc. K. Campbell TURN M. Hawiger EQ Research General Goodin, MacBride, Squeri, & Day LLP B. Cragg J. Squeri Green Charge K. Lucas Hanna and Morton LLP N. Pedersen JBS Energy J. Nahigian Keyes & Fox, LLP B. Elder Manatt, Phelps & Phillips LLP D. Huard R. Keen McKenna, Long & Aldridge LLP J. Leslie Morrison & Foerster LLP P. Hanschen MRW & Associates LLC General NLine Energy M. Swindle UCAN D. Kelly US Dept. of the Navy K. Davoodi US General Services Administration D. Bogni Valley Center Municipal Water Distr G. Broomell Western Manufactured Housing Communities Association S. Dey Copies to AddisScott9@aol.com ckingaei@yahoo.com clower@earthlink.net hpayne3@gmail.com puainc@yahoo.com Service List R.19-09-009
- Page 6 -

Page 1 of 1 ATTACHMENT A ADVICE LETTER 3698-E Cal. P.U.C. Sheet No. Title of Sheet Canceling Cal. P.U.C. Sheet No. Revised 34187-E PRELIMINARY STATEMENT, II. BALANCING ACCOUNTS, DESCRIPTION/LISTING OF ACCOUNTS, Sheet 3 Original 34188-E PRELIMINARY STATEMENT, II. BALANCING ACCOUNTS, MICROGRID BALANCING ACCOUNT (MGBA), Sheet 1 Original 34189-E PRELIMINARY STATEMENT, II. BALANCING ACCOUNTS, MICROGRID BALANCING ACCOUNT (MGBA), Sheet 2 Revised 34190-E TABLE OF CONTENTS, Sheet 1 Revised 33615-E Revised 34191-E TABLE OF CONTENTS, Sheet 2 Revised 33639-E 1 Revised 33617-E
- Page 7 -

Revised San Diego Gas & Electric Company San Diego, California Canceling Cal. P.U.C. Sheet No. 34187-E Revised Cal. P.U.C. Sheet No. 33617-E Sheet 3 PRELIMINARY STATEMENT II. BALANCING ACCOUNTS DESCRIPTION/LISTING OF ACCOUNTS Listing of Accounts (Continued) Medium-Duty and Heavy-Duty Electric Vehicle Balancing Account (MDHDBA) Vehicle to Grid Balancing Account (V2GBA) Power Charge Indifference Adjustment Under-Collection Balancing Account (CAPBA) Overhead Pools Balancing Account (OPBA) San Diego Unified Port District Balancing Account (SDUPDBA) Light-Duty Electric Vehicle Balancing Account (LDBA) BioMAT Non-Bypassable Charge Balancing Account (BNBCBA) Microgrid Balancing Account (MGBA) Issued by 3P4 Advice Ltr. No. Decision No. 3698-E D. 21-01-018 Dan Skopec Vice President Regulatory Affairs N Submitted Effective Resolution No. Feb 22, 2021
- Page 8 -

Original San Diego Gas & Electric Company San Diego, California Canceling Cal. P.U.C. Sheet No. 34188-E Cal. P.U.C. Sheet No. Sheet 1 PRELIMINARY STATEMENT N N N II. BALANCING ACCOUNTS MICROGRID BALANCING ACCOUNT (MGBA) N 1. PURPOSE The MGBA is a one-way, interest bearing balancing account recorded on SDG&E’s financial statements pursuant to Decision (D.) 21-01-018. The purpose of the MGBA is to record the incremental costs associated with implementing the items required by D.21-01-018. The MGBA is established pursuant to Ordering Paragraphs (OP) 8, 9, and 12 and will have the following subaccounts: A. MGBA – Evaluation of Electrical Isolation Technology • Records the incremental operation and maintenance (O&M) and capital-related (i.e., depreciation, return, and taxes) costs incurred to evaluate the electrical isolation technology pursuant to OP 9. • Per Section 3.5.3, an overall cost cap of $3 million is allocated across the investor-owned utilities (IOUs). If the IOUs need a larger budget, then they may include in their Tier 2 advice letter a request for a budgetary increase along with supporting justification demonstrating the need. B. MGBA – Program Evaluation • Records the incremental O&M costs incurred to review and evaluate the effectiveness of changes to the electric rules adopted by D.20-06-017 and D.21-01-018. • Per Section 3.9.3, a budget cap of $1 million is adopted for the program evaluation, subject to downward adjustment by the Energy Division. 2. APPLICABILITY The MGBA shall apply to all electric distribution customers. 3. RATES The MGBA will be collected through electric distribution rates. 4. ACCOUNTING PROCEDURES A. MGBA – Evaluation of Electrical Isolation Technology Subaccount SDG&E shall maintain the MGBA – Evaluation of Electrical Isolation Technology Subaccount by making monthly entries, net of FF&U, to the account as follows: 1) A debit entry equal to the O&M costs defined in the Purpose Section; N 2) A debit entry equal to the capital-related costs defined in the Purpose Section; (Continued) Issued by 1P5 Advice Ltr. No. Decision No. 3698-E D. 21-01-018 Dan Skopec Vice President Regulatory Affairs Submitted Effective Resolution No. Feb 22, 2021
- Page 9 -

Original San Diego Gas & Electric Company San Diego, California Canceling Cal. P.U.C. Sheet No. 34189-E Cal. P.U.C. Sheet No. Sheet 2 PRELIMINARY STATEMENT N N N II. BALANCING ACCOUNTS MICROGRID BALANCING ACCOUNT (MGBA) N 4. ACCOUNTING PROCEDURES (continued) 3) A credit entry equal to one-twelfth of the revenue authorized by the Commission; 4) An entry equal to one-twelfth of the amortization of the Evaluation of Electrical Isolation Technology Subaccount as authorized by the Commission; 5) An entry to reflect any transfers to or from other regulatory accounts as authorized by the Commission; and 6) An entry equal to the interest on the average of the balance at the beginning of the month andthe balance after the above at a rate equal to one-twelfth the interest rate on three-month Commercial Paper for the previous month, as reported in the Federal Reserve Statistical Release, H.15 or its successor. B. MGBA – Program Evaluation Subaccount SDG&E shall maintain the MGBA – Program Evaluation Subaccount by making monthly entries, net of FF&U, to the account as follows: 1) A debit entry equal to the O&M costs defined in the Purpose Section; 2) A credit entry equal to one-twelfth of the revenue authorized by the Commission; 3) An entry equal to one-twelfth of the amortization of the Program Evaluation Subaccount as authorized by the Commission; 4) An entry to reflect any transfers to or from other regulatory accounts as authorized by the Commission; and 5) An entry equal to the interest on the average of the balance at the beginning of the month and the balance after the above at a rate equal to one-twelfth the interest rate on threemonth Commercial Paper for the previous month, as reported in the Federal Reserve Statistical Release, H.15 or its successor. 5. DISPOSITION SDG&E submits in October of each year its Annual Electric Regulatory Account Update advice letter and will request to amortize the projected year-end balances for the Evaluation of Electrical Isolation Technology Subaccount and the Evaluation of Microgrids Subaccount in electric distribution rates effective January 1 of the following year, pursuant to OPs 9 and 12. Issued by 2P5 Advice Ltr. No. Decision No. 3698-E D. 21-01-018 Dan Skopec Vice President Regulatory Affairs Submitted Effective Resolution No. Feb 22, 2021 N
- Page 10 -

Revised San Diego Gas & Electric Company San Diego, California 34190-E Revised Canceling Cal. P.U.C. Sheet No. Cal. P.U.C. Sheet No. 33615-E Sheet 1 TABLE OF CONTENTS The following sheets contain all the effective rates and rules affecting rates, service and information relating thereto, in effect on the date indicated herein. Cal. P.U.C. Sheet No TITLE PAGE............................................................. TABLE OF CONTENTS............................................. 16015-E 34190, 34191, 31243, 33380, 33381, 33253-E 33254, 33382, 32346, 32352, 33383, 31804-E 31805, 31174, 33419, 31176, 31177-E T PRELIMINARY STATEMENT: I. General Information……...................................... II. Balancing Accounts Description/Listing of Accounts California Alternate Rates for Energy (CARE) Balancing Acct Rewards and Penalties Balancing Account (RPBA)……. Transition Cost Balancing Account (TCBA)……………... Post-1997 Electric Energy Efficiency Balancing Acct (PEEEBA Tree Trimming Balancing Account (TTBA)…………….. Baseline Balancing Account (BBA)………………………. Energy Resource Recovery Account (ERRA)…………… Low-Income Energy Efficiency Balancing Acct (LIEEBA)…… Non-Fuel Generation Balancing Account (NGBA)……… Electric Procurement Energy Efficiency Balancing Account (EPEEBA) Common Area Balancing Account (CABA)……………… Nuclear Decommissioning Adjustment Mechanism (NDAM)… Pension Balancing Account (PBA)……………………….. Post-Retirement Benefits Other Than Pensions Balancing Account (PBOPBA) 8274, 30670, 31260-E 19402, 32302, 34187-E 26553, 26554-E 21929, 23295-E 31213, 31214, 31215, 31216, 31631, 31632-E 22059, 30893-E 27944, 19422-E 21377, 28769-E 26358, 26359, 26360, 26361, 31631, 31632-E 19431, 19432-E 31217, 31218, 31219, 25575-E 30675-E 28770-E 30676-E 29835, 27949-E 29836, 27951-E Community Choice Aggregation Implementation Balancing Account (CCAIBA)……………………………... 19445-E 31453, 22813, 21116-E 26555-E 30647, 30648, 30649-E 30998, 30999-E 30677-E 22078-E 30102, 30103, 27692-E 22797-E 30678-E 30820-E 28765-E 27955, 27956-E 31664, 31665-E 26898, 26899-E Electric Distribution Fixed Cost Account (EDFCA)…… Rate Design Settlement Component Account (RDSCA) California Solar Initiative Balancing Account (CSIBA)…. SONGS O&M Balancing Account (SONGSBA)…… On-Bill Financing Balancing Account (OBFBA)…… Solar Energy Project Balancing Account (SEPBA)…. Electric Program Investment Charge Balancing Acct (EPICBA) Tax Equity Investment Balancing Account (TEIBA) California Energy Systems 21st Century Balancing Acct (CES-21BA) Greenhouse Gas Revenue Balancing Account (GHGRBA). Local Generation Balancing Account (LGBA)……………. New Environmental Regulatory Balancing Account (NERBA)………… Master Meter Balancing Account (MMBA)……………………… Smart Meter Opt-Out Balancing Account (SMOBA)……………….. (Continued) Issued by 1P4 Advice Ltr. No. Decision No. 3698-E D. 21-01-018 Dan Skopec Vice President Regulatory Affairs Submitted Effective Resolution No. Feb 22, 2021 T
- Page 11 -

Revised San Diego Gas & Electric Company San Diego, California Canceling Cal. P.U.C. Sheet No. 34191-E Revised Cal. P.U.C. Sheet No. 33639-E Sheet 2 TABLE OF CONTENTS II. Balancing Accounts (Continued) Low Carbon Fuel Standard Balancing Account (LCFSBA)………….. 26173-E Green Tariff Shared Renewables Balancing Account (GTSRBA)……… 28264, 28265-E Cost of Financing Balancing Account (CFBA)………….. 26180-E Family Electric Rate Assistance Balancing Account (FERABA)…….. 26631-E Vehicle Grid Integration Balancing Account (VGIBA)………………. 30679-E Demand Response Generation Balancing Account (DRGMA)……….. 28123-E Incentive Pilot Contract Payment Balancing Account (IPCPBA)………… 28919-E Incentive Pilot Incentive Balancing Account (IPIBA)……………………….. 28920-E Distribution Resources Plan Demonstration Balancing Acct (DRPDBA) 28885-E Food Bank Balancing Account (FBBA)………………………………………. 29282-E Clean Transportation Priority Balancing Account (CTPBA)……………… 30731-E Solar on Multifamily Affordable Housing Balancing Acct (SOMAHBA).. 30099-E Community Solar Green Tariff Balancing Account (CSGRBA)…… 30811-E Disadvantaged Communities Green Tariff Balancing Acct (DACGTBA) 30812-E Disadvantaged Communities Single Family Solar Homes Balancing Account (DACSASHBA) 32383-E Statewide Energy Efficiency Balancing Account (SWEEBA)………. 30894, 30895-E Customer Information System Balancing Account (CISBA)………….. 31042, 31043-E Transition, Stabilization and OCM Balancing Account (TSOBA)….. 31044-E Net Energy Metering Measurement and Evaluation BA (NEMMEBA) 31181-E Portfolio Allocation Balancing Account (PABA)…………… 32542, 31221, 32543, 31223, 32544-E Tree Mortality Non-Bypassable Charge Balancing Account (TMNBCBA) 31587, 31588-E Rule 21 Material Modifications Balancing Account (R21MMBA)……… 32233-E Essential Usage Study Balancing Account (EUSBA)……..…… 33636, 33637-E Microgrid Balancing Account (MGBA)………… 34188, 34189-E III. Memorandum Accounts Description/Listing of Accounts………. 19451, 31002, 33517-E Catastrophic Event Memorandum Account (CEMA)………. 19453, 19454, 22814-E Streamlining Residual Account (SRA)……………………… 30680, 28771-E Nuclear Claims Memorandum Account (NCMA)….. 30681-E Real-Time Energy Metering Memorandum Account (RTEMMA)…… 19472-E Net Energy Metering Memorandum Account (NEMMA)……. 19473-E Self-Generation Program Memorandum Acct (SGPMA)…….. 330900, 33091-E Bond Payment Memorandum Account (BPMA)……………. 19481-E 19576, 19577, 19578-E Direct Access Cost Responsibility Surcharge Memo Acct (DACRSMA) Covid-19 Pandemic Protections Memorandum Account (CPPMA) (Continued) Issued by 2P4 Advice Ltr. No. Decision No. 3698-E D. 21-01-018 Dan Skopec Vice President Regulatory Affairs 33369, 33403-E Submitted Effective Resolution No. Feb 22, 2021 N
- Page 12 -