Details for: PGE AL 6144-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

April 1, 2021

Advice 6144-E
(Pacific Gas and Electric Company ID U 39 E)

Public Utilities Commission of the State of California
Subject:

Diablo Canyon Independent Safety Committee (DCISC) Yearly
Compensation Letter

Purpose
Pacific Gas and Electric Company (PG&E) hereby submits its annual report
(Attachment 1) for establishing the compensation levels for the members of the Diablo
Canyon Independent Safety Committee (DCISC or Committee) in compliance with
Decision (D.) 88-12-083, dated December 19, 1988, and Resolution E-3152, dated May
19, 1989.
This submittal will not increase any rate or charge, cause the withdrawal of service, or
conflict with any rate schedule or rule.
Background
In D.88-12-083, the California Public Utilities Commission (CPUC or Commission)
adopted the Diablo Canyon Settlement Agreement, which included among other things
the establishment of the DCISC, to be made up of persons with knowledge,
background, and experience in the field of nuclear power facilities. The DCISC is to
review Diablo Canyon operations for the purpose of assessing the safety of operations
and suggesting any recommendations for safe operation.
In Resolution E-3152, the CPUC adopted compensation rates for DCISC committee
members which included:
•

An annual retainer of $8,000;

•

An hourly fee of $200 for committee work in excess of 40 hours per year;

•

A flat fee of $500 for each committee meeting attended; and

•

Reimbursement of expenses incurred in performance of committee work.





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Advice 6144-E -2- April 1, 2021 Resolution E-3152 also established that committee member compensation be set at levels commensurate with fees paid by PG&E for comparable services, such as services received by PG&E from persons overseeing its Nuclear Decommissioning Trust Funds. Since the Committee’s creation, committee member compensation levels have been revised three times. Advice Letter 1857-E, submitted by PG&E on April 1, 1999, as approved by Resolution E-3608 revised the DCISC member compensation by replacing the meeting appearance flat fee of $500 with an hourly fee. Advice Letter 3677-E-A, submitted by PG&E on April 1, 2011, as approved by the CPUC Energy Division Director revised the annual retainer, hourly meeting fee and the hourly fee for work performed outside of committee meetings in excess of 40 hours per year. Advice letter 5797-E-A submitted by PG&E on May 8, 2020, approved by the CPUC Energy Division Director revised the hourly fee from $250 per hour to $260 per hour with an increase to the annual retainer from $10,000 to $10,400. The 2020 DCISC Compensation Advice Letter (Advice Letter 5797-E-A) revised the compensation levels approved in Advice Letter 3677-E-A, which established the current DCISC member compensation as follows: • An annual retainer of $10,400; • A fee of $260 per hour for attendance at committee meetings; • An hourly fee of $260 for committee work performed outside of committee meetings in excess of 40 hours per year; and • Reimbursement of expenses incurred in performance of committee work. PG&E examines the current fees paid to members of the DCISC, in comparison to fees paid to members of the Nuclear Facilities Decommissioning Master Trust Committee and the Nuclear Safety Oversight Committee (NSOC). Based on the review, PG&E finds as compared to the compensation paid for comparable services (as defined in Finding #3B of the Resolution E-3152), PG&E finds the DCISC current hourly rates to be comparable and aligned across the committees. Thus, an increase to the hourly rate is not warranted at this time. Members’ annual retainers are also aligned across committees. Thus, an increase in the members’ annual retainer amount is not warranted at this time. 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 6144-E -3- April 1, 2021 Anyone wishing to protest this submittal may do so by letter sent via U.S. mail, facsimile or E-mail, no later than April 21, 2021, 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 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 Pursuant to General Order (GO) 96-B, Rule 5.1, this advice letter is submitted with a Tier 1 designation. PG&E requests that this Tier 1 advice submittal become effective upon date of submittal, which is April 1, 2021.
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Advice 6144-E -4- April 1, 2021 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 submittals can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations Attachment 1 – DCISC Compensation Levels
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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: 1 Advice Letter (AL) #: 6144-E Subject of AL: Diablo Canyon Independent Safety Committee (DCISC) Yearly Compensation Letter 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.88-12-083, Resolution E-3152 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: 4/1/21 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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Attachment 1 DCISC Compensation Levels
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Attachment 1 Advice 6144-E DCISC Compensation Levels I. Purpose The purpose of this report is to provide an evaluation of the compensation paid to persons who provide comparable services to those of the DCISC as delineated in Finding #3 of CPUC Resolution E-3152 and to make a recommendation regarding adjustments to be made, if any, to the compensation paid to DCISC members. II. Background Finding #7 of CPUC Resolution E-3152 "Diablo Canyon Independent Safety Committee Standards for compensation and accounting guidelines" states the following: 7. PG&E should annually, on April 1, file a report and advice letter with CACD [Commission Advisory and Compliance Division of the CPUC] to update the compensation levels set forth in findings 3 and 4. Findings 3 and 4 read as follows: 3. Comparable services are those received by PG&E from the persons overseeing its Nuclear Decommissioning Trust Funds and from expert consultants used by PG&E in connection with the Diablo Canyon nuclear power plant. 4. Under the above findings, appropriate levels of compensation for members of the committee are as follows. Each member should receive an annual retainer of $8,000. Each member should receive an hourly fee of $200 for hours of committee work in excess of 40 hours per year, except that each member should receive a flat fee of $500 for each committee meeting that he or she attends. Each member should receive reimbursement, consistent with procedures for such reimbursement as established by the committee, of his or her expenses incurred in the performance of duties as committee member. Since the Committee’s creation, committee member compensation levels have been revised three times. Advice Letter 1857-E, filed by PG&E on April 1, 1999, as approved by Resolution E-3608 revised the DCISC member compensation by replacing the meeting appearance flat fee of $500 with an hourly fee. Advice Letter 3677-E-A, filed by PG&E on April 1, 2011, as approved by the CPUC Energy Division Director revised the annual retainer, hourly meeting fee and the hourly fee for work performed outside of committee meetings in excess of 40 hours per year. Advice Letter 5797-E submitted by PG&E on April 1, 2020, as approved by 5797-E,A approved by the CPUC Energy Division Director revised the hourly fee from $250 per hour, to $260 per hour with an increase to the annual retainer of $10,400. The 2020 DCISC Compensation Advice Letter (Advice Letter 5797-E) revised the compensation levels approved in Advice Letter 3677-E-A, which established the current DCISC member compensation as follows: • An annual retainer of $10,400; • A fee of $260 per hour for attendance at committee meetings; • An hourly fee of $260 for committee work performed outside of committee meetings in excess of 40 hours per year; and • Reimbursement of expenses incurred in performance of committee work.
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III. Compensation Evaluation A. Nuclear Facilities Decommissioning Master Trust Committee Member Compensation The Nuclear Facilities Decommissioning Master Trust Committee is composed of two PG&E employee members and three non-PG&E affiliated members. The outside members are senior representatives from the financial community, including a retired chief investment officer and a retired chief financial officer. The outside member compensation level is $12,000 annual retainer plus $500 per meeting. Over the last several years, two meetings have been held per year on average with each meeting being approximately one hour in duration. It is estimated that about four hours is required by the committee members to prepare for each meeting. B. Expert Consultant Compensation Nuclear Safety Oversight Committee There are currently six paid outside consultants to the Nuclear Safety Oversight Committee (NSOC). Outside consultants for the NSOC are selected on the basis of their nuclear industry experience and their ability to provide valuable insight to the committee relative to the safe operation of Diablo Canyon. The current consultants bring significant nuclear industry experience to the committee as exemplified by their former positions in the industry: • One Retired Nuclear Industry President/CEO • Two Retired Nuclear Industry Vice Presidents • Three Senior Nuclear Industry Consultants The current NSOC consultants receive compensation of $250 - $300 an hour for work performed on NSOC business. NSOC site visit frequency shall not be less than twice per year. The NSOC Site Visits are typically four days duration each. In addition to attendance at the Site Visits, the consultants are expected to review numerous plant documents in support of committee business. C. Current DCISC Member Compensation The DCISC is made up of three members. These members are selected on the basis of their nuclear experience and their ability to provide valuable insight to the committee relative to the safe operation of Diablo Canyon. The current membership consists of individuals with extensive nuclear experience from both the power industry and the academic community as follows: • Retired NRC Administrative Judge • Nuclear Utility Industry Consultant • Major University Professor of Nuclear Engineering The current compensation paid to the DCISC members as originally established by the CPUC in Resolution E-3152 and subsequently revised in Resolution E-3608 and modified in Advice Letter 3677-E-A and further modified in Advice Letter 5797-E-A remains appropriate. Each member receives an annual retainer of $10,400. In addition, the members receive an hourly fee of $260 for hours of committee work in excess of 40 hours per year. The members are also compensated for attendance at public meetings at an hourly rate of $260. Typically, three one and one-half day public meetings are held each year with a plant tour accompanying each meeting.
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IV. Recommendation The compensation paid to the DCISC members for time spent on committee business as delineated above, is reasonable when compared to the compensation paid for comparable services as defined in the benchmarks above. No change is recommended.
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PG&E Gas and Electric Advice Submittal List General Order 96-B, Section IV AT&T Albion Power Company 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 Hub for Energy Efficiency Financing California Alternative Energy and Advanced Transportation Financing Authority California Public Utilities Commission 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 San Diego Gas & Electric Company SPURR San Francisco Water Power and Sewer Sempra Utilities Sierra Telephone Company, Inc. 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 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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