SUBJECT: Establishment of the Avoided Cost Calculator Memorandum Account in Compliance with Decision

Transcription

1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA June 13, 2017 Advice Letter 3566-E Russell G. Worden Director, State Regulatory Operations 8631 Rush Street Rosemead, CA SUBJECT: Establishment of the Avoided Cost Calculator Memorandum Account in Compliance with Decision Dear Mr. Worden: Advice Letter 3566-E is effective as of June 15, Sincerely, Edward Randolph Director, Energy Division

2 Russell G. Worden Managing Director, State Regulatory Operations February 28, 2017 ADVICE 3566-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of the Avoided Cost Calculator Memorandum Account in Compliance with Decision (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 Pursuant to Ordering Paragraphs (OP) 8 of Decision (D.) , SCE submits this advice letter to establish Preliminary Statement Part N.30, the Avoided Cost Calculator Memorandum Account (ACCMA), to record SCE s portion of costs for ongoing updates to the Avoided Cost Calculator and related work. BACKGROUND On June 15, 2016, the Commission issued D (the Decision), Decision to Update Portions of Commission s Current Cost-Effectiveness Framework. In the Decision, the Commission approved the Executive Director hiring contractors to perform annual updates to the Avoided Cost Calculator and to provide technical assistance or research for the purpose of advancing future refinement of cost-effective methods. The Avoided Cost Calculator estimates the costs of traditional resources that will be avoided when a distributed energy resource is procured instead. The Commission approved funding up to $100,000 annually in reimbursable funds for the Avoided Cost Calculator update process. In addition, the Commission approved $400,000 annually, for three years beginning in Fiscal Year , in reimbursable funds for ongoing technical assistance to support future phases of cost-effectiveness work in this proceeding. 1 Unspent funds from the calculator update may be used to supplement technical assistance funds, and vice versa, within an overall cap of $500,000 annually for the first 1 D , OP 8. P.O. Box Rush Street Rosemead, California (626) Fax (626)

3 ADVICE 3566-E (U 338-E) February 28, 2017 three years. Beginning in Fiscal Year , the authorization will be $100,000 per year on a going-forward basis until or unless the Integrated Distributed Energy Resources 2 or a successor proceeding determines that updates to the Avoided Cost Calculator are no longer needed. This funding will be reimbursed by the participating utilities based on their portion of the current energy efficiency allocation, as determined in R , and shown in the table below for the present day. This allocation may be updated in the future, if needed, should the allocations change. PROPOSED TARIFF CHANGES As discussed above, and in compliance with OP 8 of the Decision, the advice letter establishes Preliminary Statement Part N.30., the Avoided Cost Calculator Memorandum Account (ACCMA), to record reimbursements to the Commission or their contracts for SCE s portion of costs related to updating the Avoided Cost Calculator and providing technical assistance or research for the purpose of advancing future refinement of cost-effective methods. Pursuant to OP 8, SCE will seek recovery of the costs booked to the ACCMA in a General Rate Case proceeding where the Commission will determine if the costs are reasonable and incremental to current revenue requirements. The filing would not increase any current rate or charge, cause the withdrawal of service, or conflict with any rate schedule or rule. TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.1, and consistent with the intent of OP 8, this advice letter is submitted with a Tier 1 designation. 2 Rulemaking (R.)

4 ADVICE 3566-E (U 338-E) February 28, 2017 EFFECTIVE DATE Pursuant to OP 8 of D , the ACCMA is effective June 15, 2016, the date of issuance of D NOTICE Anyone wishing to protest this advice filing 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 filing. Protests should be submitted to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California EDTariffUnit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Russell G. Worden Managing Director, State Regulatory Operations 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com There are no restrictions on who may file 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 filing to the interested parties shown on the attached GO 96-B and

5 ADVICE 3566-E (U 338-E) February 28, 2017 R 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) For changes to all other service lists, please contact the Commission s Process Office at (415) 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 filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at For questions, please contact Matt Sheriff at (626) or by electronic mail at Matt.Sheriff@sce.com. RGW:ms:jm Enclosures /s/ Russell G. Worden Russell G. Worden

6 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: (U 338-E) Utility type: Contact Person: Darrah Morgan ELC GAS Phone #: (626) PLC HEAT WATER Disposition Notice to: EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 3566-E Tier Designation: 1 Subject of AL: Establishment of the Avoided Cost Calculator Memorandum Account in Compliance with Decision Keywords (choose from CPUC listing): Compliance, Memorandum Account AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 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: 6/15/16 No. of tariff sheets: -3- 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: Service affected and changes proposed 1 : Preliminary Statement Part N and Table of Contents Pending advice letters that revise the same tariff sheets: 3538-E, 3559-E, and 3565-E 1 Discuss in AL if more space is needed.

7 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California Russell G. Worden Managing Director, State Regulatory Operations 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

8 Public Utilities Commission 3566-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part N Revised E Revised E Preliminary Statement Part N Revised E Revised E Table of Contents Revised E 1

9 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 2 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued) d. Specified Project (Continued) Section Interest Bearing No. Specified Project Memorandum Account* (1) Purpose Not a Specified Project (2) Definitions Not a Specified Project (3) Self-Generation Program Incremental Cost (SGPIC) Yes Memorandum Account (4) Catastrophic Event Yes (5) Not Used (6) NEM Online Application System Memorandum Account Yes (NEMOASMA) (7) Not Used (8) Result Sharing Memorandum Account (RSMA) Yes (9) Plug-In Electric Vehicle Submetering Pilot Memorandum Account Yes (PEVSPMA) (10) Research, Development, and Demonstration Royalties Yes (11) Not Used (12) Not Used (13) California Power Exchange Wind-Up Charge Memorandum Yes Account (PXWUC) (14) Income Tax Component of Contribution Yes Memorandum Account (15) Not Used (16) DWR Franchise Fee Obligation Memorandum Account Yes (17) Not Used (18) Not Used (19) Building Benchmarking Data Memorandum Account Yes (20) Not Used (21) Nuclear Claims Memorandum Account (NCMA) Yes (22) Not Used (23) Not Used (24) Agricultural Account Aggregation Study Memorandum Account Yes (25) Marine Corps Air Ground Combat Center Memorandum Account Yes (MCAGCCMA) (26) Energy Data Request Program Memorandum Account (EDRPMA)Yes (27) Not Used (28) Energy Settlements Memorandum Account (ESMA) Yes (29) Affiliate Transfer Fee Memorandum Account Yes (30) Avoided Cost Calculator Memorandum Account (ACCMA) Yes (31) Nuclear Fuel Cancellation Incentive Memorandum Account Yes (32) Not Used (33) Mitsubishi Net Litigation Memorandum Account Yes * Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance. (N) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3566-E Caroline Choi Date Filed Feb 28, 2017 Decision Senior Vice President Effective Jun 15, H10 Resolution

10 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 32 (T) (Continued) N. MEMORANDUM ACCOUNTS (Continued) 30. Avoided Cost Calculator Memorandum Account (ACCMA) 1. Purpose The purpose of the ACCMA is to record SCE s portion of costs reimbursed to the Commission or their contractor for updating the Avoided Cost Calculator and providing technical assistance or research for the purpose of advancing future refinement of cost-effective methods pursuant to D Amounts paid by SCE may not exceed SCE s portion of the adopted funding of $500,000 per year for three years beginning with fiscal year , and $100,000 per year thereafter beginning in fiscal year on a going forward basis until or unless the Commission determines that updates to the Avoided Cost Calculator are no longer needed. The funds reimbursed by the utilities will be based on their current energy efficiency allocation, as determined in R Operation of the ACCMA Entries to the ACCMA shall be determined on a monthly basis as follows: 3. Disposition and Review Procedures a. A debit entry equal to SCE s share of the actual reimbursed expenses; b. A credit entry to transfer the balance to other accounts for recovery in rates, upon approval by the Commission; and c. A debit entry equal one-twelfth of the Federal Reserve threemonth Commercial Paper Rate Non-Financial, from Federal Reserve Statistical Release H.15 (expressed as an annual rate). If in any month a non-financial rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate Financial. As authorized in D , SCE will seek recovery of the costs booked to the ACCMA in a general rate case proceeding where the Commission will determine if the costs are reasonable and incremental to current revenue requirements. (N) (N) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3566-E Caroline Choi Date Filed Feb 28, 2017 Decision Senior Vice President Effective Jun 15, C16 Resolution

11 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE E TABLE OF CONTENTS - RATE SCHEDULES E E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS E TABLE OF CONTENTS - RULES E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS E TABLE OF CONTENTS - SAMPLE FORMS E E (T) PRELIMINARY STATEMENT: A. Territory Served E B. Description of Service E C. Procedure to Obtain Service E D. Establishment of Credit and Deposits E E. General E F. Symbols E G. Gross Revenue Sharing Mechanism E E H. Baseline Service E I. Not In Use... -E J. Not In Use... -E K. Nuclear Decommissioning Adjustment Mechanism E L. Purchase Agreement Administrative Costs Balancing Account E M. Income Tax Component of Contributions E N. Memorandum Accounts E E E E E E E E O. California Alternate Rates for Energy (CARE) Adjustment Clause E E P. Optional Pricing Adjustment Clause (OPAC) E (T) (T) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3566-E Caroline Choi Date Filed Feb 28, 2017 Decision Senior Vice President Effective Jun 15, H7 Resolution