SUBJECT: Establishment of Demand Response Load Shift Working Group Memorandum Account in Compliance with Decision

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1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA February 23, 2018 Advice Letter 3729-E Russell G. Worden Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA SUBJECT: Establishment of Demand Response Load Shift Working Group Memorandum Account in Compliance with Decision Dear Mr. Worden: Advice Letter 3729-E is effective as of January 19, Sincerely, Edward Randolph Director, Energy Division

2 Russell G. Worden Managing Director, State Regulatory Operations January 19, 2018 ADVICE 3729-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of Demand Response Load Shift Working Group Memorandum Account in Compliance with Decision In compliance with Decision (D.) , Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariffs. The revised tariff sheets are listed on Attachment A and are attached hereto. PURPOSE Pursuant to Ordering Paragraph (OP) 13 of D , SCE submits this advice letter to establish Preliminary Statement Part N.7., the Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA). SCE will track its share of the cost of hiring a technical facilitator to organize and facilitate the Load Shift Working Group. BACKGROUND On September 19, 2013, the California Public Utilities Commission (Commission) initiated Rulemaking (R.) by approving the Order Instituting Rulemaking (OIR) to enhance the role of demand response in meeting the State s electric resource planning needs and operational requirements. The Commission initiated the rulemaking with the intention of aligning demand response with the grid s needs and enhancing the role of demand response in carrying out California s energy policies. On December 14, 2014, the Commission issued D , requiring bifurcation of demand response programs and integration of supply side resources into the California Independent System Operator (CAISO) energy market by the year On April 4, 2017, the assigned Administrative Law Judges facilitated a workshop to discuss the pathway toward development of new models of demand response. On May 11, 2017, the assigned Commissioner issued an Amended Scoping Memo which formally expanded the scope of the proceeding to include new models of demand response. P.O. Box Rush Street Rosemead, California 91770, California (626) Fax (626)

3 ADVICE 3729-E (U 338-E) January 19, 2018 On November 1, 2017, the Commission issued D which ruled on several demand response topics, including establishing a Load Shift Working Group to develop proposals for foundational elements of new models of demand response. 1 The Utilities, on behalf of the Load Shift Working Group, shall report on its proposals, which will inform a new rulemaking for developing new models of demand response. In addition, PG&E, SDG&E, and SCE shall hire a working group technical facilitator, in consultation with the Commission s Energy Division, to organize and facilitate the Load Shift Working Group. The Utilities may select a facilitator from a pool of available candidates drawn in consultation with the Energy Division. The Utilities may create a memorandum account to track the cost of hiring the facilitator and may seek cost recovery of the facilitator in the advice letter filing for the 2020 Demand Response Portfolio update. 2 PROPOSED TARIFF CHANGES As discussed above, and in accordance with OP 13 of D , this advice filing establishes Preliminary Statement Part N.7, Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA), to track SCE s share of the cost of hiring an technical facilitator to organize and facilitate the Load Shift Working Group. Pursuant to D , SCE will seek recovery of the costs tracked in the DRLSWGMA in the advice letter filing for the 2020 Demand Response Portfolio update. TIER DESIGNATION Pursuant to GO 96-B, Energy Industry Rule 5.1, this Advice Letter is submitted with a Tier 1 designation. EFFECTIVE DATE This advice filing will become effective on January 19, 2018, the date filed. 1 D , p D , Ordering Paragraphs 12 and 13, pp

4 ADVICE 3729-E (U 338-E) January 19, 2018 NOTICE Anyone wishing to protest this advice letter 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 letter. Protests should be submitted to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue, 4 th Floor San Francisco, California Facsimile: (415) EDTariffUnit@cpuc.ca.gov Copies of protests should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest 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 Southern California Edison Company 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) 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 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 shall be submitted expeditiously. In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B and 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 CPUC s Process Office at (415) or by electronic mail at Process_Office@cpuc.ca.gov.

5 ADVICE 3729-E (U 338-E) January 19, 2018 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 CPUC, log on to SCE s web site at For questions, please contact Kimwuana Blebu at (626) or by electronic mail at Kimwuana.Blebu@sce.com Southern California Edison Company /s/ Russell G. Worden Russell G. Worden RGW:kb:jm Enclosures

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.: Southern California Edison Company (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) #: 3729-E Tier Designation: 1 Establishment of Demand Response Load Shift Working Group Memorandum Account in Subject of AL: 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: 1/19/18 No. of tariff sheets: -4- 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 : Pending advice letters that revise the same tariff sheets: Preliminary Statement Part N and Table of Contents None 1 Discuss in AL if more space is needed.

7 Protests and all other correspondence regarding this AL are due no later 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 Southern California Edison Company 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

8 Public Utilities Commission 3729-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 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 N. MEMORANDUM ACCOUNTS 2. Definitions. d. Specified Project 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) Wheeler North Reef Expansion Project Memorandum Account Yes (6) NEM Online Application System Memorandum Account Yes (NEMOASMA) (7) Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA) Yes (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) Distributed Resources Plan Memorandum Account (DRPMA) Yes (12) Wildfires Customer Protections Memorandum Account (WCPMA) Yes (13) California Power Exchange Wind-Up Charge Memorandum Yes Account (PXWUC) (14) Income Tax Component of Contribution Yes Memorandum Account (15) GRC Revenue Requirement Memorandum Account (GRCRRMA) Yes Yes (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 Memorandum Account (DFG Memorandum Account) (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) Integrated Distributed Energy Resources Administrative Costs Memorandum Account (ideracma) Yes (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) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3729-E Caroline Choi Date Filed Jan 19, 2018 Decision Senior Vice President Effective Jan 19, C8 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 7 N. MEMORANDUM ACCOUNTS 6. NEM Online Application System Memorandum Account (NEMOASMA) Purpose The purpose of the Net Energy Metering (NEM) Online Application System Memorandum Account (NEMOASMA) is to track the costs SCE incurs to establish an online application system for processing applications for interconnection under SCE s NEM tariffs, pursuant to Decisions (D.) and D Operation of the NEMOASMA Monthly entries to the NEMOASMA shall be determined as follows: a. Debit entries equal to the recorded capital-related revenue requirement and Operation and Maintenance (O&M) expenses incurred by SCE to develop and establish an online application portal, including but not limited to the development of the necessary information technology infrastructure and behind-the-scenes tools, for processing applications for interconnection under SCE s NEM tariffs. b. An entry to record interest expense by applying the Interest Rate to the average monthly balance in the NEMOASMA. Review and Disposition Pursuant to Ordering Paragraph 4 of D , SCE may seek recovery of the amounts tracked in the NEMOASMA in its respective General Rate Case (GRC) proceeding. 7. Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA) Purpose The purpose of the Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA) is to track of the cost of hiring a technical facilitator to organize and facilitate the Load Shift Working Group. SCE, PG&E, and SDG&E shall hire a working group technical facilitator, in consultation with the Commission s Energy Division, to organize and facilitate the Load Shift Working Group. (L) (L) (N) (N) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3729-E Caroline Choi Date Filed Jan 19, 2018 Decision Senior Vice President Effective Jan 19, C8 Resolution

11 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 8 N. MEMORANDUM ACCOUNTS 7. Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA) Operation of the DRLSWGMA Monthly entries to the DRLSWGMA shall be determined as follows: a. A debit entry equal to SCE s shared cost of hiring a technical facilitator to organize and facilitate the Load Shift Working Group. b. Interest shall accrue monthly to the DRLSWGMA by applying one-twelfth of the three-month Commercial Paper, as reported by the Federal Reserve, to the average monthly balance in the DRLSWGMA. Disposition and Review Procedures Pursuant to D SCE will seek recovery of the costs tracked in the DRLSWGMA in the advice letter filing for the 2020 Demand Response Portfolio update. (N) (N) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3729-E Caroline Choi Date Filed Jan 19, 2018 Decision Senior Vice President Effective Jan 19, C8 Resolution

12 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) (T) (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. Charge Ready Program Balancing Account 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) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3729-E Caroline Choi Date Filed Jan 19, 2018 Decision Senior Vice President Effective Jan 19, H13 Resolution

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