SUBJECT: Establishment of the Aliso Canyon Energy Savings Assistance Program Memorandum Account in Response to the Aliso Canyon Emergency

Transcription

1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA June 20, 2016 Advice Letter: 3413-E Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA SUBJECT: Establishment of the Aliso Canyon Energy Savings Assistance Program Memorandum Account in Response to the Aliso Canyon Emergency Dear Mr. Worden: Advice Letter 3413-E is effective as of May 25, Sincerely, Edward Randolph, Director Energy Division

2 Russell G. Worden Managing Director, State Regulatory Operations May 25, 2016 ADVICE 3413-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of the Aliso Canyon Energy Savings Assistance Program Memorandum Account in Response to the Aliso Canyon Emergency Southern California Edison Company (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 In compliance with Commission Decision (D.) , 1 this advice letter establishes Preliminary Statement Part N.35, Aliso Canyon ESA Program Memorandum Account, for SCE to track expenses incurred to respond to the Aliso Canyon emergency through expanding programs within its Energy Savings Assistance (ESA) Program authority. BACKGROUND On October 25, 2015, Southern California Gas Company (SoCalGas) notified the Commission of a natural gas leak at the Aliso Canyon storage facility located in Northern Los Angeles County. The leak was sealed on February 17, However reliability concerns remain because of concerns about the sufficiency of natural gas resources in the area served by Aliso Canyon. 1 Ordering Paragraph (OP) 11 of D , Decision Adopting Measures in Response to the Aliso Canyon Natural Gas Leak Emergency, issued on April 28, This Decision is issued within A , Application of Southern California Edison Company (U 338-E) for Approval of its Energy Savings Assistance and California Alternate Rates for Energy Programs and Budgets for Program Years , filed November 18, P.O. Box Rush Street Rosemead, California (626) Fax (626)

3 ADVICE 3413-E (U 338-E) May 25, 2016 On January 6, 2016, Governor Brown proclaimed a state of emergency at Aliso Canyon. The proclamation directs the Commission to take all actions necessary to ensure the continued reliability of natural gas and electricity supplies in the coming months during the moratorium on gas injections into the Aliso Canyon Storage Facility. 2 On March 14, 2016, in response to the Aliso Canyon leak and the Governor s Emergency Proclamation, Commissioner Catherine Sandoval, the Assigned Commissioner in A , Application of Southern California Edison Company (U 338-E) for Approval of its Energy Savings Assistance and California Alternate Rates for Energy Programs and Budgets for Program Years , issued an Assigned Commissioner s Ruling (ACR). The ACR requires SCE to: Immediately intensify all efforts within its existing ESA Program authority to assist ESA Program-eligible low-income customers affected by the Aliso Canyon incident; Prioritize near-term natural gas savings, including measures that save natural gas by saving water; Immediately intensify all efforts within their existing ESA Program authority to assist ESA Program-eligible low-income customers affected by the Aliso Canyon incident. SCE shall prioritize near-term electric savings, especially peak savings and other measures that will minimize the use of natural-gas fired electric generation in areas affected by the Aliso Canyon incident; Target their intensified efforts to geographic regions most impacted by emergency at Aliso Canyon and to immediately consult with Commission Energy Division staff to identify these regions; Track and report on a monthly basis all of their intensified efforts related to the emergency response. This tracking should include energy savings, geographic region, building type and expenditures; and Use existing fund shifting rules to maximize the use of underspent and unspent funds to supplement their intensified efforts in response to the Aliso Canyon emergency. 3 Consistent with Commissioner Sandoval s ACR, SCE will intensify existing program offerings in responding to the emergency. These offerings include replacement of approved measures that correspond to high natural-gas electric generation. For the multi-family segment, SCE will leverage the Energy Efficiency (EE) multi-family program offerings, in conjunction with ESA, with the goal of achieving energy savings. The Commission issued D on April 28, 2016 directing SCE to take immediate steps to enhance its ESA Program efforts in low-income communities affected by the Aliso Canyon Gas Storage Facility natural gas leak. Because the causes of the Aliso Canyon Emergency are still unknown, the decision also authorized the establishment of 2 Proclamation of State of Emergency, issued January 6, 2016, Paragraph Sandoval ACR at

4 ADVICE 3413-E (U 338-E) May 25, 2016 a memorandum account to allow the Commission to defer determination of responsibility for these costs until a future proceeding examines all expenditures associated with the Aliso Canyon leak. SCE has the authority to use unspent and underspent funds, and the ability to shift those funds utilizing existing fund-shifting rules in OP 135 of D As of December 31, 2015, SCE estimates its unspent and uncommitted budget to be approximately $109 million. DISCUSSION SCE s response to an expansion and intensification of ESA Program activities will include replacement of measures that correspond to high natural-gas electric generation. SCE will endeavor to achieve an average 4 percent savings per household, as well as targeting a minimum average energy savings increase of 10 percent in the affected region as compared to pre-emergency savings for the duration of the emergency time period. Where feasible, SCE will target the treatment of the most energy-intensive single- and multi-family properties and high energy using households in the identified geographic region. SCE will utilize existing fund-shifting rules, as set forth in OP 135 of Decision in order to maximize its emergency response efforts. This emergency authorization shall be in effect for the remainder of the current California Alternate Rates for Energy and Energy Savings Assistance portfolio cycle unless modified in a subsequent Decision. PROPOSED TARIFF CHANGES Pursuant to OP 11 of D , SCE is establishing Preliminary Statement Part N.35., Aliso Canyon ESA Program Memorandum Account (ACESAPMA), allowing SCE to track all expenses related to its response to the Aliso Canyon emergency through an expansion of programs within its existing ESA Program authority. Recovery of actual costs incurred will be through unspent and underspent funds in SCE s existing ESA Program Adjustment Mechanism (ESAPAM, i.e. balancing account). The ACESAPMA will separately track the incurred costs for informational purposes which will allow the Commission to defer determination of responsibility for these costs until a future proceeding examines all expenditures associated with the Aliso Canyon leak. No cost information is required for this advice filing.

5 ADVICE 3413-E (U 338-E) May 25, 2016 This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.1, this advice letter is submitted with a Tier 1 designation. EFFECTIVE DATE SCE requests that this advice filing become effective May 25, 2016, the same date as filed. 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 Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com

6 ADVICE 3413-E (U 338-E) May 25, 2016 Michael R. Hoover 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 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 A et al 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. Southern California Edison Company RGW:ms:jm Enclosures /s/ Russell G. Worden Russell G. Worden

7 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) #: 3413-E Tier Designation: 1 Subject of AL: Establishment of the Aliso Canyon Energy Savings Assistance Program Memorandum Account in Response to the Aliso Canyon Emergency 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: 5/25/16 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: 3351-E 1 Discuss in AL if more space is needed.

8 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 Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

9 Public Utilities Commission 3413-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

10 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 3 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued) d. Specified Project (Continued) Section Interest Bearing No. Specified Project Memorandum Account* (34) Antelope Transmission Projects Memorandum Account Yes (35) Aliso Canyon Energy Savings Assistance Program Memorandum Account Yes (36) Wireless Fidelity Costs Memorandum Account Yes (37) Residential Service Disconnection Memorandum Account (RSDMA) Yes (38) Tax Accounting Memorandum Account (TAMA) Yes (39) Renewables Portfolio Standard Costs Memorandum Account Yes (40) Greenhouse Gas (GHG) Customer Outreach and Education Yes Memorandum Account (GHGCO&EMA) (41) Not Used (42) Department of Energy Litigation Memorandum Account Yes (43) Not Used (44) Project Development Division Memorandum Account (PDDMA) Yes (45) California Solar Initiative (CSI) Measurement and Evaluation (M&E) Yes Expenses Memorandum Account (CSI M&E MA) (46) Mohave SO2 Allowance Revolving Fund Memorandum Account (MSARFMA) Yes (47) Energy Division Director s Peer Review Group Memorandum Account Yes (PRGMA) (48) Greenhouse Gas (GHG) Administrative Costs Memorandum Yes Account (GHGACMA) (49) Not Used (50) Not Used (51) Long-Term Procurement Plan Technical Assistance Yes Memorandum Account (LTAMA) (52) SONGS Technical Assistance Memorandum Account (STAMA) Yes (53) Fire Hazard Prevention Memorandum Account (FHPMA) Yes (54) San Onofre Nuclear Generating Station Outage Memorandum Yes Account (SONGSOMA) (55) San Onofre Nuclear Generating Station Memorandum Account (SONGSMA) Yes (56) NEIL Net Litigation Memorandum Account Yes (57) Not Used (58) Green Tariff Shared Renewables Administrative Costs Memorandum Account Yes (59) Green Tariff Marketing, Education & Outreach Memorandum Account Yes (60) Enhanced Community Renewables Marketing, Education & Outreach Yes Memorandum Account (61) Residential Rate Implementation Memorandum Account (RRIMA) Yes (T) (P) * Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance. (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3413-E R.O. Nichols Date Filed May 25, 2016 Decision Senior Vice President Effective May 25, H11 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 37 (T) (Continued) N. MEMORANDUM ACCOUNTS (Continued) 35. Aliso Canyon Energy Savings Assistance (ESA) Program Memorandum Account (ACESAPMA) In compliance with Commission Decision (D.) , the Aliso Canyon ESA Program Memorandum Account (ACESAPMA) is established to allow SCE to track expenses related to its response to the Aliso Canyon emergency through an expansion of programs within its Energy Savings Assistance (ESA) Program authority (A ). SCE shall maintain the ACESAPMA by making monthly entries as follows: a. A debit entry equal to the energy savings assistance program incurred expenses related to SCE s emergency response and expansion of programs within A ; and b. An entry equal to interest expense by applying one twelfth of the Interest Rate to the average of the beginning and ending balance in the ACESAPMA. Recovery of actual costs incurred will be through unspent and underspent funds in SCE s existing ESA Program Adjustment Mechanism (ESAPAM). The ACESAPMA will separately track the incurred costs for informational purposes which will allow the Commission to defer determination of ultimate responsibility for these costs until a future proceeding examines all expenditures associated with the Aliso Canyon leak. (N) (N) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3413-E R.O. Nichols Date Filed May 25, 2016 Decision Senior Vice President Effective May 25, C14 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) 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) (T) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3413-E R.O. Nichols Date Filed May 25, 2016 Decision Senior Vice President Effective May 25, H7 Resolution