September 22, Advice Letter 3033-E

Transcription

1 STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA Edmund G. Brown Jr., Governor September 22, 2014 Advice Letter 3033-E Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company (SCE) 8631 Rush Street Rosemead, CA Subject: Approval of SCE s request to modify its Base Revenue Requirement Balancing Account to recover 21st Century Energy Systems (CES-21) project costs pursuant to D Dear Ms. Scott-Kakures: On March 27, 2014, the Commission issued Decision (D.) , which modified D to comply with SB 96 (Chapter 356, Statutes of 2013) and granted authority for SCE, Pacific Gas and Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E), collectively referred to as the Joint Utilities, to enter into a research and development agreement with Lawrence Livermore National Laboratory. On April 25, 2014, the Joint Utilities filed a joint Tier 3 Advice Letter (AL) 4402-E et al requesting approval of their proposed multi-year CES-21 research and development projects and Cooperative Research and Development Agreement. The joint AL is under Commission review. On May 2, 2014, SCE filed Tier 1 AL 3033-E to request modification of its tariffs to allow for the eventual recovery of CES-21 costs not to exceed $14.35 million. SCE will not incur any CES-21 costs into the Base Revenue Requirement Balancing Account (BRRBA) until the joint Tier 3 AL has been approved by the Commission, and SCE requests that this Tier 1 AL become effective on that date. D Ordering Paragraph 7 states, SCE is authorized to recover [its CES-21] costs through the Base Revenue Requirement Balancing Account and to subsequently recover these costs. AL 3033-E accordingly makes changes to SCE s existing Preliminary Statement Part YY of its BRRBA pursuant to D Energy Division staff reviewed SCE s AL 3033-E and determined that it is in compliance with the Commission s decisions and is consistent with state policy. Staff has also confirmed via a data request that SCE has not already booked any CES-21 costs to its BRRBA, in accordance with D Ordering Paragraphs 10 and 13.

2 Megan Scott-Kakures September 16, 2014 Page 2 However, to ensure that CES-21 costs in SCE s BRRBA can be clearly identified and tracked, SCE must show CES-21 costs as a separate line item or entry in its quarterly balancing account reports to the Commission. Therefore, and subject to this additional requirement, the changes in AL 3033-E are approved. AL 3033-E is hereby disposed and will be effective upon the Commission s approval of the Tier 3 advice filing (SCE Advice 3030-E). Sincerely, Edward Randolph Director, Energy Division Cc: Darrah Morgan, SCE

3 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: Southern California Edison Company (SCE) Date Utility Notified: May 30, 2014 via: Utility No./Type: U 338 E [X] to: Darrah.Morgan@sce.com and advicetariffmanager@sce.com Advice Letter Nos.: 3033-E Date AL filed: May 2, 2014 Fax No.: (626) Utility Contact Person: Darrah Morgan ED Staff Contact: Maria Sotero Utility Phone No.: (626) For Internal Purposes Only:) Date Calendar Clerk Notified / / Date Commissioners/Advisors Notified / / [X] INITIAL SUSPENSION (up to 120 DAYS from the expiration of the initial review period) This is to notify that the above-indicated AL is suspended for up to 120 days beginning June 2, 2014 for the following reason(s) below. If the AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division extends beyond the expiration of the initial suspension period, the advice letter will be automatically suspended for up to 180 days beyond the initial suspension period. [ ] A Commission Resolution is Required to Dispose of the Advice Letter [ ] Advice Letter Requests a Commission Order [X] Advice Letter Requires Staff Review The expected duration of initial suspension period is 120 days [ ] FURTHER SUSPENSION (up to 180 DAYS beyond initial suspension period) The AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division has extended beyond the expiration of the initial suspension period. The advice letter is suspended for up to 180 days beyond the initial suspension period. If you have any questions regarding this matter, please contact Maria Sotero at maria.sotero@cpuc.ca.gov. cc: EDTariffUnit Office of Ratepayer Advocates Megan Scott-Kakures, SCE Leslie Starck, SCE * Note: reference Decision D , dated February 21, 2002, and Rule 7.5 in appendix A of D.O

4 Megan Scott-Kakures Vice President, Regulatory Operations May 2, 2014 ADVICE 3033-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Modification of SCE s Base Revenue Requirement Balancing Account to Recover 21 st Century Energy Systems Project Costs Pursuant to Decision In compliance with the California Public Utilities Commission s (Commission s or CPUC s) Decision (D.) dated March 27, 2014, 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 D , Ordering Paragraph (OP) 7, this advice filing modifies SCE s existing Preliminary Statement Part YY, Base Revenue Requirement Balancing Account (BRRBA), to allow for the recovery of SCE s share of costs associated with the 21 st Century Energy Systems project. BACKGROUND On July 18, 2011, Pacific Gas and Electric Company (PG&E), SCE and San Diego Gas & Electric Company (SDG&E) (Joint Applicants) filed Application (A.) requesting Commission authorization for the cost recovery of funding related to a five-year research and development agreement with Lawrence Livermore National Laboratory, known as the 21 st Century Energy Systems (CES-21) project. On December 20, 2012, the Commission issued D , Decision Granting Authority to Enter into a Research and Development Agreement with Lawrence Livermore National Laboratory for 21st Century Energy Systems and for Costs Up to $ Million, granting the Joint Applicants authority to recover costs associated with the CES-21 project. D authorized CES-21 funding for a five-year period with total costs of the project not to exceed $ million during the five-year period P.O. Box Rush Street Rosemead, California (626) Fax (626)

5 ADVICE 3033-E (U 338-E) May 2, 2014 (increased for franchise fees and uncollectibles expense (FF&U)), with cost recovery not to exceed $30 million in any single year. SCE filed Advice 2857-E on March 4, 2013 modifying its BRRBA to allow for the recovery of its share of CES-21 project costs through the operation of the distribution subaccount of the BRRBA, not to exceed $10.5 million (excluding FF&U) on an annual basis. Advice 2857-E was approved on May 3, 2013 by letter from the Director of the Energy Division. Subsequent to this, the Commission issued D , modifying D to comply with Senate Bill (SB) 96 (Chapter 356, Statutes of 2013), which was signed by the Governor of California on September 26, Accordingly, among other things, as required by SB 96, D modified D to reduce the CES-21 total budget from $ million (including FF&U) to $35 million (including FF&U) over a five-year period. 1 Pursuant to OP 7, SCE is responsible for 41 percent of the costs, or $ million (including FF&U), with cost recovery through the BRRBA. Prior to expending any funds, the Joint Applicants are to negotiate and enter into a Cooperative Research and Development Agreement (CRADA) which is subject to final approval through a Tier 3 advice letter to be filed within 30 days from the March 27, 2014 effective date of D On April 25, 2014, the Joint Applicants filed a joint Tier 3 advice letter requesting approval of the CES-21 multi-year research and development projects, proposed implementation plan, associated business cases, and CRADA. 2 OP 19 of D authorizes the CES-21 program for five years immediately after Commission approval of this Tier 3 advice filing. Therefore, SCE will not record any CES-21 cyber security project costs into the BRRBA until this Tier 3 advice letter has been approved by the Commission. PROPOSED TARIFF CHANGES As discussed above, and in accordance with OP 7 of D , SCE herein revises Preliminary Statement Part YY, BRRBA, to allow for the recovery of its share of CES-21 cyber security project costs and associated administrative expenses through the operation of the distribution subaccount of the BRRBA, not to exceed $ million (including FF&U) over a five-year period. Pursuant to OP 19 of D , the fiveyear period will commence immediately upon Commission approval of the initial Tier 3 advice letter filing also required in OP 14 of D SCE will not include a forecast CES-21 revenue requirement on a prospective basis when setting distribution rate levels, 3 but instead will recover actual CES-21 annual costs in the following year. 4 1 D , OP 2 at p See SCE s Advice 3030-E. 3 In addition, D requires that to the extent a CES-21 project is generation related, SCE shall allocate the generation-related costs using generation-based allocation factors, but with the cost recovery through distribution charges. 4 Electric rates to collect the amounts recorded in the BRRBA, including CES-21 cyber security project costs, will be set in the same manner as rates for other distribution revenue requirements. In

6 ADVICE 3033-E (U 338-E) May 2, 2014 The recorded operation of the BRRBA, which will include CES-21 project costs, is reviewed by the Commission in SCE s annual April ERRA review applications to ensure that the entries made in the BRRBA are stated correctly and are consistent with Commission decisions. 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 In accordance with OP 7 of D and pursuant to General Order (GO) 96-B, Energy Industry Rule 5.1, this advice letter is submitted with a Tier 1 designation. EFFECTIVE DATE This filing will become effective upon Commission approval of the Tier 3 advice filing (SCE Advice 3030-E), required by OP 14 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 by the Energy Division and SCE no later than 20 days after the date of this advice filing. Protests should be mailed 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: accordance with current SCE ratemaking practices, the December 31 st balance recorded in the BRRBA will be consolidated into rate levels, on, or soon after, January 1 st of each subsequent year as part of SCE s annual Energy Resource Recovery Account (ERRA) Forecast proceeding.

7 ADVICE 3033-E (U 338-E) May 2, 2014 Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com Leslie E. Starck Senior Vice President, Regulatory Policy & 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 Section 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 A service lists. Address change requests to the GO 96-B service list should be directed to (626) or by electronic mail at AdviceTariffManager@sce.com. 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 Linda Letizia at (626) or by electronic mail at Linda.Letizia@sce.com. Southern California Edison Company MSK:ll:sq Enclosures /s/ MEGAN SCOTT-KAKURES Megan Scott-Kakures

8 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company 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) #: 3033-E Tier Designation: 1 Subject of AL: Modification of SCE s Base Revenue Requirement Balancing Account to Recover 21 st Century Energy Systems Project Costs Pursuant to Decision Keywords (choose from CPUC listing): Compliance, Balancing Account AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D 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 1 : 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: upon approval of SCE AL 3030-E Estimated system annual revenue effect: (%): Estimated system average rate effect (%): No. of tariff sheets: -3- 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 YY and Table of Contents None 1 Discuss in AL if more space is needed.

9 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 Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) Leslie E. Starck Senior Vice President, Regulatory Policy & Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

10 Public Utilities Commission 3033-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part YY Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1

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 9 YY. (Continued) Base Revenue Requirement Balancing Account (BRRBA) (Continued) 4. Distribution Sub-account: (Continued) (19) Debit entry to record SCE s share of 21 st Century Energy Systems cyber security research project (CES-21) expenses, not to exceed $ million including (FF & U) over a five-year period. (T) (T) (20) Debit entry to record Customer Data Privacy and Security Practices independent audit costs. (21) Debit entry to record Reliability Investment Incentive Mechanism (RIIM) independent audit costs. (22) Credit entry to record fees paid by customers participating in the CAISO s NGR market pilot program (23) Debit entry to record Customer Data Access (CDA) Project revenue requirements. (24) Debit entry to annually record the transfer of the December 31 st balance from the Mobilehome Park Master Meter Balancing Account (MMMBA). (25) Credit entry to record User Fees paid by participants in the PEV Workplace Charging Pilot. The sum of (1) through (25) equals the activity recorded in the Distribution Sub-account of the BRRBA. Interest Expense shall be calculated monthly by applying the Interest Rate to the average balance of the beginning-of-month and the end-of-month balances in the Distribution Sub-account. 5. Generation Sub-account: The purpose of the Generation Sub-account of the BRRBA is to record on a monthly basis SCE s: (1) BRRBA Generation Revenue; (2) Authorized Generation Base Revenue Requirement (AGBRR), and other authorized revenue requirements, (e.g., Demand Response and SONGS Steam Generator Replacement Program (SGRP) Removal and Disposal Costs); and (3) other authorized costs and transfers approved by the Commission. A. Operation of the Generation Sub-account: Entries to the Generation Sub-account shall be made on a monthly basis, and shall be calculated as follows: (1) Credit entry equal to the BRRBA Generation Revenue; (2) Debit entry equal to the monthly amount of the AGBRR calculated by multiplying the applicable MDP (as determined in Section 2 above) to the annual AGBRR without an amount for refueling (as shown in Table C), less a provision for FF & U; (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3033-E Megan Scott-Kakures Date Filed May 2, 2014 Decision Vice President Effective Oct 9, H20 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. 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 O. California Alternate Rates for Energy (CARE) Adjustment Clause E E P. Optional Pricing Adjustment Clause (OPAC) E (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3033-E Megan Scott-Kakures Date Filed May 2, 2014 Decision Vice President Effective Oct 9, H6 Resolution

13 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 3 (Continued) PRELIMINARY STATEMENT: (Continued) Cal. P.U.C. Sheet No. RR. New System Generation Balancing Account E SS. Songs 2&3 Steam Generator Removal And Disposal Balancing Account E E TT. NOT IN USE... -E UU. Solar PV Program Balancing Account E VV. Medical Programs Balancing Account E WW. Community Choice Aggregation Cost Responsibility... Surcharge Tracking Account E XX. NOT IN USE... -E YY. Base Revenue Requirement Balancing Account E E ZZ. Energy Resource Recovery Account E E AAA. Post Test Year Ratemaking Mechanism E BBB. Not In Use... -E CCC. Cost of Capital Mechanism E DDD On Bill Financing Balancing Account E EEE Not In Use...-E FFF Electric Program Investment Charge Balancing Account-California Energy Commission E GGG Electric Program Investment Charge Balancing Account-Southern California Edison.. (EPICBA-SCE) E HHH Electric Program Investment Charge Balancing Account-California Public Utilities Commission (EPICBA-CPUC) E (T) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3033-E Megan Scott-Kakures Date Filed May 2, 2014 Decision Vice President Effective Oct 9, H6 Resolution