Glidepath Rates for Legacy RES BCT Customers Pursuant to Decision

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1 Erik Jacobson Director Regulatory Relations Pacific Gas and Electric Company 77 Beale St., Mail Code B13U P.O. Box San Francisco, CA Fax: September 7, 2018 Advice 5379-E (Pacific Gas and Electric Company ID U 39 E) Public Utilities Commission of the State of California Subject: Glidepath Rates for Legacy RES BCT Customers Pursuant to Decision Purpose Comply with Ordering Paragraph 40 of Decision (D.) to provide an A-6 generation rate glidepath for solar customers that are eligible for grandfathered treatment pursuant to D and take service under the Renewable Energy Self Generation Bill Credit Transfer (RES-BCT) schedule. Background Ordering Paragraph 40 of D provides: Pacific Gas and Electric Company (PG&E) must ensure that legacy A-6 Renewable Energy Self Generation Bill Credit Transfer (RES-BCT) customers, as a class, experience no greater percentage annual decreases in their effective benefits than those received by legacy A-6 net energy metering (NEM) customers. PG&E shall calculate an A-6 generation rate glidepath for legacy A-6 RES-BCT customers such that the total generation credit in dollars for those customers (using the data utilized by PG&E in response to data request SantaClaraCnty_006-Q02) declines on an actual basis no more than 6.2% by 2023 when compared to the A-6 generation rate in effect on March 1, PG&E shall file a Tier 2 advice letter with illustrative rates demonstrating this glidepath no later than 30 days after the effective date of this decision. In Table 1 below, PG&E has provided the glidepath that is compliant with this request. Consistent with the other illustrative rates adopted by D , the illustrative glide path rates are consistent with overall rate levels effective on March 1, Legacy rates for solar customers that are grandfathered will not be implemented until rates with new TOU periods are mandatory, which is currently expected for commercial and industrial customers in November Until then, special rates for legacy A-6 RES- BCT customers will not be necessary. However, because these rates will not be implemented until 2020, the proposal for a glidepath for these customers must also address adjustments to these rates at the time of implementation. In the case of legacy A-6 NEM customers, future glidepath rates will be established by retaining the rate

2 Advice 5379-E September 7, 2018 differences between TOU periods (using equal-cents changes) at the levels set forth in the settlements adopted by D However, the metric that the Commission has selected for legacy A-6 RES BCT customers is based on a percentage. This makes it impossible to have predefined TOU differentials, since the percentage difference will change if equal-cents adders are applied. With this in mind, PG&E proposes creating a shadow A-6 generation rate that changes with revenue requirement changes on an equal cents per kwh basis consistent with the rules for rate changes between General Rate Cases. Upon implementation, and in each AET of the transition plan, the percent discount prescribed below will be applied to this shadow rate to obtain generation rates applicable to legacy A-6 RES BCT customers. Table GRC Phase II: RES-BCT Compensation Glidepath Present Rates (3/1/17) Summer Peak Summer Partial Peak Summer Off Peak Winter Partial Peak Winter Off Peak Change from Present Rates -3.1% -4.1% -5.2% -6.2% Protests Anyone wishing to protest this filing may do so by letter sent via U.S. mail, facsimile or E- mail, no later than September 27, 2018, which is 20 days after the date of this filing. Protests must be submitted to: CPUC Energy Division ED Tariff Unit 505 Van Ness Avenue, 4 th Floor San Francisco, California Facsimile: (415) 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.

3 Advice 5379-E September 7, 2018 The protest shall also be sent to PG&E either via 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 San Francisco, California Facsimile: (415) 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) 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 PG&E requests that this Tier 2 advice filing become effective on regular notice, October 7, 2018, which is 30 calendar days after the date of filing. 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 and the parties on the service list for A and R Address changes to the General Order 96-B service list should be directed to PG&E at address PGETariffs@pge.com. For changes to any other service list, please contact the Commission s Process Office at (415) or at Process_Office@cpuc.ca.gov. Send all electronic approvals to PGETariffs@pge.com. Advice letter filings can also be accessed electronically at: /S/ Erik Jacobson Director, Regulatory Relations cc: Service List A and R

4 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: Contact Person: Yvonne Yang ELC GAS WATER Phone #: (415) PLC HEAT Disposition Notice to: EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas WATER = Water PLC = Pipeline HEAT = Heat (Date Submitted / Received Stamp by CPUC) Advice Letter (AL) #: 5379-E Tier Designation: 2 Subject of AL: Glidepath Rates for Legacy RES BCT Customers Pursuant to Decision Keywords (choose from CPUC listing): Compliance, Self Generation, Solar AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D and D 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: Yes No Yes No 10/7/18 No. of tariff sheets: N/A 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 proposed 1: N/A Pending advice letters that revise the same tariff sheets: N/A 1 Discuss in AL if more space is needed. Clear Form

5 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 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 State: California Zip: Telephone (xxx) xxx-xxxx: (415) Facsimile (xxx) xxx-xxxx: (415) Name: Title: Utility Name: Address: City: State: District of Columbia Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Zip: Clear Form

6 PG&E Gas and Electric Advice Filing List General Order 96-B, Section IV AT&T Downey & Brand Pioneer Community Energy Albion Power Company Ellison Schneider & Harris LLP Praxair Alcantar & Kahl LLP Energy Management Service Regulatory & Cogeneration Service, Inc. Anderson & Poole Evaluation + Strategy for Social SCD Energy Solutions Innovation Atlas ReFuel GenOn Energy, Inc. SCE BART Goodin, MacBride, Squeri, Schlotz & SDG&E and SoCalGas Ritchie Barkovich & Yap, Inc. Green Charge Networks SPURR Braun Blaising Smith Wynne P.C. Green Power Institute San Francisco Water Power and Sewer CalCom Solar Hanna & Morton Seattle City Light California Cotton Ginners & Growers Assn ICF Sempra Utilities California Energy Commission International Power Technology Southern California Edison Company California Public Utilities Commission Intestate Gas Services, Inc. Southern California Gas Company California State Association of Counties Kelly Group Spark Energy Calpine Ken Bohn Consulting Sun Light & Power Casner, Steve Keyes & Fox LLP Sunshine Design Cenergy Power Leviton Manufacturing Co., Inc. Tecogen, Inc. Center for Biological Diversity Linde TerraVerde Renewable Partners City of Palo Alto Los Angeles County Integrated Waste Tiger Natural Gas, Inc. Management Task Force City of San Jose Los Angeles Dept of Water & Power TransCanada Clean Power Research MRW & Associates Troutman Sanders LLP Coast Economic Consulting Manatt Phelps Phillips Utility Cost Management Commercial Energy Marin Energy Authority Utility Power Solutions County of Tehama - Department of Public McKenzie & Associates Utility Specialists Works Crossborder Energy Modesto Irrigation District Verizon Crown Road Energy, LLC Morgan Stanley Water and Energy Consulting Davis Wright Tremaine LLP NLine Energy, Inc. Wellhead Electric Company Day Carter Murphy NRG Solar Western Manufactured Housing Communities Association (WMA) Dept of General Services Office of Ratepayer Advocates Yep Energy Don Pickett & Associates, Inc. OnGrid Solar Douglass & Liddell Pacific Gas and Electric Company

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