SUBJECT: Request for an Amendment to SCE's Bundled Procurement Plan Appendix D.

Transcription

1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA November 14, 2017 Advice Letter 3673-E Russell G. Worden Director, State Regulatory Operations 8631 Rush Street Rosemead, CA SUBJECT: Request for an Amendment to SCE's Bundled Procurement Plan Appendix D. Dear Mr. Worden: Advice Letter 3673-E is effective as of November 11, Sincerely, Edward Randolph Director, Energy Division

2 Russell G. Worden Managing Director, State Regulatory Operations October 12, 2017 ADVICE 3673-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Request for an Amendment to Southern California Edison Company s AB 57 Bundled Procurement Plan Appendix D PURPOSE Pursuant to Decision ( D. ) and D , 1 Southern California Edison Company ( SCE ) respectfully submits this advice letter to amend its 2014 Conformed Assembly Bill 57 Bundled Procurement Plan ( AB 57 BPP ). 2 Specifically, SCE requests to update Appendix D by amending the current list of authorized brokers and exchanges to include ICE Futures U.S., Inc. ( IFUS ) as an approved exchange. Included with this advice letter are Attachments A and B, which respectively are: (1) a redlined version of AB 57 BPP Appendix D reflecting the aforementioned changes, and (2) a clean version of AB 57 BPP Appendix D incorporating the changes that will be implemented when this advice letter is approved. JUSTIFICATION SCE and Intercontinental Exchange, Inc. ( ICE ) are parties to a Participant Agreement ( PA #1 ), dated on or about April 1, In 2012, ICE created IFUS, an affiliated entity, as a platform for clearing futures and options. 3 SCE was granted access to IFUS in 2012, 1 D , at Ordering Paragraph ( OP ) 26 (allowing updates or modifications to procurement plans proposed between the biennial procurement plan filings via the Advice Letter process); D , at OP 1 (approving same authority). 2 SCE s AB 57 BPP was submitted in Advice 3349-E, which became effective on February 16, In 2012, energy swaps were moved from over-the-counter ( OTC ) swap markets to commodity-futures markets. P.O. Box Rush Street Rosemead, California (626) Fax (626)

3 ADVICE 3673-E (U 338-E) October 12, 2017 but was operating under PA #1 which provided for grandfathered access. In early 2017, IFUS informed SCE that SCE s grandfathered access was no longer sufficient and that a new participant agreement was necessary to maintain uninterrupted access to IFUS s platform. Accordingly, SCE and IFUS entered into a new Participant Agreement ( PA #2 ) on September 7, 2017 under which IFUS agrees to provide SCE uninterrupted access to IFUS s platform (the Exchange ), which lists certain energy futures and options products that SCE may clear through SCE s future commission merchants. SCE utilizes the Exchange to access the following products: natural gas fixed-price futures, basis futures, swing futures, index futures, pipeline options, power fixed-price futures, and California Carbon Allowance futures. Without PA #2, SCE s access to these products would be limited to NYMEX and bilateral markets with a limited pool of counterparties. Accordingly, SCE requests approval to add IFUS to Appendix D of SCE s AB 57 BPP. REQUEST FOR COMMISSION APPROVAL For the reasons stated above, SCE requests that its AB 57 BPP be revised, as discussed herein and as set forth in Attachments A and B. No cost information is required for this advice filing. 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 5.2, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE This advice filing will become effective on November 11, 2017, the 30 th calendar day after the date filed, unless suspended by the Energy Division. SAFETY CONCERNS No impacts to safety are anticipated as a result of this advice letter as the advice letter does not provide authority for a specific transaction; rather, it amends SCE's AB 57 BPP by updating its list of Authorized Clearing Firms. 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:

4 ADVICE 3673-E (U 338-E) October 12, 2017 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

5 ADVICE 3673-E (U 338-E) October 12, 2017 With a copy to: Rebecca Meiers-De Pastino Attorney 2244 Walnut Grove Avenue, 3rd Floor Rosemead, CA Facsimile: (626) Rebecca.Meiers.DePastino@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 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 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 Raffi Minasian at (626) or by electronic mail at Raffi.Minasian@sce.com RGW:rm:jm Enclosures /s/ Russell G. Wordenorden 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) #: 3673-E Tier Designation: 2 Request for an Amendment to 's AB 57 Bundled Subject of AL: Procurement Plan Appendix D Keywords (choose from CPUC listing): Compliance AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decisions and 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: 11/11/17 No. of tariff sheets: -0- 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: N/A Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: 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 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) With a copy to: Rebecca Meiers-De Pastino Attorney 2244 Walnut Grove Avenue, 3rd Floor Rosemead, CA Facsimile: (626) Rebecca.Meiers.DePastino@sce.com

8 Attachment A Redlined Version of AB 57 BPP Appendix D

9 Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Appendix D Authorized Brokers and Exchanges

10 Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Sheet D-1 Authorized Brokers and Exchanges Brokerages Platform Platform Sponsors Date Launched Date Commission Amerex Private Investors American Energy Risk Management Private Investors Automated Power Exchange Private Investors 1998 BGC Financial, L.P. Private Investors Black Barrel Energy, L.P. Partners: (99.9%) OTC Global Holdings, L.P and (0.1%) OTC Operating GP, LLC. (also owned by OTC Global Holdings, LP). These entities are owned by Private Investors Cantor Fitzgerald Private Investors Castlebridge Partners LLC Private investors CGS Brokerage LLC Private investors Choice Environmental, Private Investors LLC Choice Natural Gas, LP Private Investors Choice Power, LP Private Investors Classic Energy, LLC Private Investors Edge Energy, LLC Parent: OTC Global Holdings, L.P., Owned by Private Investors Energy Trade Private Investors Management GP, LLC Equus Energy Group, Private Investors LLC Evolution Markets Private Investors Evolution Markets Futures LLC Subsidiary of Evolution Markets The Finerty Group Private Investors GFI Brokers LLC Private Investors ICAP Energy, LLC Intercapital Corporation 1994 (London Exchange) ICAP United, Inc. Publicly Traded INFA Energy Brokers Private Investors Intercontinental Exchange (ICE) Brokers, Energy Companies IVG Energy, Ltd Private Investors

11 Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Sheet D-2 Longevous Capital, LLC Trading Partners: FCStone, LLC and INTL Hanley, LLC Owned by Private Investors Natsource Transaction Private Investors Services LLC Saddleback Energy Private Investors Spectron Private Investors TFS Energy Futures LLC TFS Brokers Trident Brokerage Services LLC Private Investors Tullet Prebon Americas Corp Subsidiary of Tullet Prebon, plc Parent: OTC Global 2009 Valence Energy, LLC Holdings, L.P., Owned by Private Investors 2008 Walden Energy, LLC Trading Partner: Hudson Capital Energy, LLC Owned by Private Investors On-line Auctions Platform Date Launched Date Commission World Energy Solutions, Inc Exchanges Platform Date Launched Date Commission ICE ICE Futures U.S., Inc. (IFUS) 2012 NASDAQ OMX NYMEX Clearing Firms Platform Date Launched Date Commission Citigroup Global Markets, Inc Macquarie Futures USA, Inc. Natural Gas Exchange Inc. (NGX) 1994 Newedge USA LLC (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Date Filed Russell G. Worden Advice 3349-E Decision Director Effective 1D0 Resolution

12 Attachment B Clean Version of AB 57 BPP Appendix D

13 Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Appendix D Authorized Brokers and Exchanges

14 Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Sheet D-1 Authorized Brokers and Exchanges Brokerages Platform Platform Sponsors Date Launched Date Commission Amerex Private Investors American Energy Risk Management Private Investors Automated Power Exchange Private Investors 1998 BGC Financial, L.P. Private Investors Black Barrel Energy, L.P. Partners: (99.9%) OTC Global Holdings, L.P and (0.1%) OTC Operating GP, LLC. (also owned by OTC Global Holdings, LP). These entities are owned by Private Investors Cantor Fitzgerald Private Investors Castlebridge Partners LLC Private investors CGS Brokerage LLC Private investors Choice Environmental, Private Investors LLC Choice Natural Gas, LP Private Investors Choice Power, LP Private Investors Classic Energy, LLC Private Investors Edge Energy, LLC Parent: OTC Global Holdings, L.P., Owned by Private Investors Energy Trade Private Investors Management GP, LLC Equus Energy Group, Private Investors LLC Evolution Markets Private Investors Evolution Markets Futures LLC Subsidiary of Evolution Markets The Finerty Group Private Investors GFI Brokers LLC Private Investors ICAP Energy, LLC Intercapital Corporation 1994 (London Exchange) ICAP United, Inc. Publicly Traded INFA Energy Brokers Private Investors Intercontinental Exchange (ICE) Brokers, Energy Companies IVG Energy, Ltd Private Investors

15 Southern California Edison Rosemead, California (U 338-E) SOUTHERN CALIFORNIA EDISON COMPANY S CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES Sheet D-2 Longevous Capital, LLC Trading Partners: FCStone, LLC and INTL Hanley, LLC Owned by Private Investors Natsource Transaction Private Investors Services LLC Saddleback Energy Private Investors Spectron Private Investors TFS Energy Futures LLC TFS Brokers Trident Brokerage Services LLC Private Investors Tullet Prebon Americas Corp Subsidiary of Tullet Prebon, plc Parent: OTC Global 2009 Valence Energy, LLC Holdings, L.P., Owned by Private Investors 2008 Walden Energy, LLC Trading Partner: Hudson Capital Energy, LLC Owned by Private Investors On-line Auctions Platform Date Launched Date Commission World Energy Solutions, Inc Exchanges Platform Date Launched Date Commission ICE ICE Futures U.S., Inc. (IFUS) 2012 NASDAQ OMX NYMEX Clearing Firms Platform Date Launched Date Commission Citigroup Global Markets, Inc Macquarie Futures USA, Inc. Natural Gas Exchange Inc. (NGX) 1994 Newedge USA LLC (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Date Filed Russell G. Worden Advice 3349-E Decision Director Effective 1D0 Resolution