The next Commission meeting is scheduled for 8/15/19. Agenda Items of Interest: #33 PG&E 2019-2022 Revenue Requirement for Gas Transmission and Storage Service. IRP Framework Long-Term Procurement Planning Requirements R 16-02-007 This ruling formally initiates the “procurement track” as outlined in Decision (D.) 19- 04-040. The ruling generally describes the scope and content of the procurement track, and seeks comments from parties on its framing and structure. Identifying a mechanism to identify and procure near- and medium-term renewable integration and reliability resources is prioritized, followed by renewables to meet the 2030 needs identified in the Preferred System Plan adopted in D.19-04-040. Comments were due no later than July 15, 2019. On 7/25/19 the ALJ granted Cal-CCA’s request for extension of time to file reply comments to 8/12/19. OIR to adopt rules and procedures governing Commissionregulated natural gas pipelines and facilities to reduce natural gas leakage consisted with SB1371 (R.15-01-008) This proceeding will focus on the following broad policy issues: 1) what data is necessary in order for the CPUC to consider a “cost-effectiveness” framework in this proceeding; 2) how should the CPUC’s annual report requirements and 26 best practices be harmonized with information or action required by other entities such as the PHMSA, DOGGR, ARB and local air quality management districts; 3) pursuant to 975(f) how should rules and procedures including best practices and repair standards developed in this proceeding be incorporated into the applicable general orders; 4) how should ratemaking treatment for LUAF be structured and evaluated? Comments on the workshop materials and staff proposals were filed in February. On 7/5/19 Commissioner Rechtschaffen issued a proposed decision approving the natural gas leak abatement program consistent with SB 1371 and 1383. The earliest the decision may be heard by the Commission is 8/15/19. Streamlining Interconnection of Distributed Energy Resources and Improvements to Rule 21 (R17-07- 007) This rulemaking addresses streamlining interconnection of distributed energy resources and improvements to rule 21. A Proposed Decision was issued on February 22, 2019, adopting the Proposals from the March 15, 2018 workshop Group 1 Report. The Proposed Decision was approved at the Commission’s Meeting March 28, 2019. Status reports from working groups have been filed. Prepared by California Regulatory Happenings for the Week of August 5, 2019 Buchalter Regulatory Happenings Weekly Report: Page 2 of 16 www.buchalter.com THE CALIFORNIA ENERGY STORAGE ALLIANCE filed a motion to establish a subgroup and schedule a joint workshop with R18-12-006 to introduce proposal on mobile inverter technical requirements for Rule 21 interconnection. Resource Adequacy, Consider Program Refinements and Establish Annual Local and Flexible Procurement Obligations for the 2019 and 2020 Compliance Years. (R17-09-020) On 9/28/17 the commission opened a rulemaking to oversee the resource adequacy program, consider program refinements and establish annual local and flexible procurement obligations for the 2019 and 2020 compliance years. On 1/18/18 the Assigned Commissioner and ALJ issued a scoping memo and ruling. The proceedings will be divided into three separate tracks. Track 1 will consider system, local and flexible capacity requirements for the next year as well as timesensitive refinements to the Commission’s RA program. Track 2 will address less time sensitive topics, including adoption of multi-year local RA requirements and refinements to local area rules and RA program. Track 3 will consider the 2020 program year requirement and may revisit RA counting rules for weather-sensitive and local demand response resources. Decision 19-02-022 was adopted on February 21, 2019, “Decision Refining the Resource Adequacy Program.” The Decision states: “The Commission does not find a viable central buyer at this time and thus delays the designation of a central buyer in this decision. The Commission continues to find that a central buyer structure, as outlined in the Track 1 decision, is the appropriate structure to implement multiyear local RA requirements. In the interim, the Commission directs parties to undertake a series of workshops to develop workable central buyer proposals. The Commission intends to issue a decision in the fourth quarter of 2019 that addresses the central buyer designation” as well as the implementation details for a central procurement structure. The Commission did decide to adopt a minimum three-year forward multi-year RA requirement. Topics to be addressed in Track 3 were identified in the Amended Scoping Plan issued January 29, 2019: http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M262/K405/262405974.PDF and a decision on track 3 is scheduled for May, 2019. A Proposed Decision Adopting Local Capacity Obligations for 2020-2022, Adopting Flexible Capacity Obligations for 2020, and Refining the Resource Adequacy Program was adopted on June 27, 2019. On 7/2/19 the ALJ issued a proposed decision denying the petition for modification of Shell Energy North America. Opening comments were due by 7/22/19. A final decision denying the petition was adopted on 8/8/19. Prepared by California Regulatory Happenings for the Week of August 5, 2019 Buchalter Regulatory Happenings Weekly Report: Page 3 of 16 www.buchalter.com On 7/3/19 the Assigned Commissioner issued a ruling seeking comment on clarification to resource adequacy import rules. Responses to the questions were due by 7/19/19. Reply comments were due by 7/26/19. Comments on informal workshop reports filed with the Commission were due by 8/2/19. Reply comments were due by 8/9/19. On 8/9/19 the California Community Choice Association, Calpine Corporation, the Independent Energy Producers Association, Middle River Power, NRG Energy, SDG&E, Shell Energy North America, Sunrun, and the Western Power Trading Forum submitted a notice of a settlement conference to be held on 8/20/19 at the CAISO. A settlement proposal will be distributed on or about 8/16/19. Successor to Existing Net Energy Metering Tariffs pursuant to PUC Section 2827.1 (R.14-07- 002) On March 8, 2019, a Ruling Regarding Enhanced Consumer Protections for Net Energy Metering Customers was filed. It proposed additional consumer protection rules for net-energy metering customers and suggested that the Commission might assert authority over third-party solar providers. On March 26, 2019, a Decision was issued http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M277/K012/277012630.PDF on an application for rehearing over how best to interpret Decision 16-01-044 regarding assessment of nonbypassable charges under net energy metering successor tariffs. The decision clarifies the determination in Resolution E-4792 that nonbypassable charges shall be assessed on the net kilowatt-hours consumed in each metered interval, and not on the basis of instantaneous netting, under the net energy metering successor tariff. The Decision (19-04-019) was adopted on April 25, 2019. On 6/28/19 the Assigned Commissioner issued a sixth amended scoping memo and ruling. The issues in the fifth amended scoping memo remain with the scope of the proceeding. The highest priority issues for the remainder of the proceeding include consumer protection and resolution of outstanding petitions for modification. The ruling sets a deadline of 7/1/20 for completion of the proceeding. On 8/1/19 the ALJ issued a ruling setting the prehearing conference for 8/15/19. Continued Implementation of the Public Utility Regulatory Policies Act and Related Matters (R.18-07-017) On 7/26/18 the Commission opened the rulemaking. The rulemaking is intended to consider adoption of a new standard offer contract that will be available to any Qualifying Facility of 20 MW or less seeking to sell electricity to a Commissionjurisdictional utility pursuant to PURPA. The rulemaking will also consider adoption of a price to be paid at the time of delivery where a QF has opted to sell asavailable energy to the utility without a contract. A Scoping Memo and Ruling was issued on November 2, 2018. http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M236/K009/236009738.PDF Prepared by California Regulatory Happenings for the Week of August 5, 2019 Buchalter Regulatory Happenings Weekly Report: Page 4 of 16 www.buchalter.com Power Charge Indifference Adjustment: Order Instituting Rulemaking to Review, Revise, and Consider Alternatives to the Power Charge Indifference Adjustment (R1706026) D1810019 was adopted on October 11, 2018, to address concerns that the existing cost allocation and recovery mechanism does not prevent cost shifting between different groups of customers, contrary to statutes that (1) authorized customers to engage in direct access transactions for electricity and (2) provided for formation of CCAs. The Commission adopted revised inputs to the market price benchmark (MPB) that is used to calculate the Power Charge Indifference Adjustment (PCIA), the rate intended to equalize cost sharing between departing load and bundled load. The revised methodology will be used to calculate the PCIA that took effect as of January 1, 2019. A second phase was initiated to enable parties to continue working together to develop longer-term solutions and to consider the development and implementation of a comprehensive solution to the issue of excess resources in utility portfolios. Requests for rehearing were filed by many parties, including Buchalter on behalf of the California Community Choice Association. The Phase 2 Scoping Ruling was issued 2/1/19. http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M263/K449/263449702.PDF On 7/1/19 the California Community Choice Association and PG&E filed a joint motion to amend the scoping memo. The parties requested additional comment opportunity and extension of time to request evidentiary hearings related to Working Group One, Issues 8-12 Final Report. On 7/9/19 the ALJ issued a ruling modifying the procedural schedule from the scoping memo to allow for additional comment opportunities. Order Instituting Rulemaking to Implement Public Utilities Code Section 451.2 Regarding Criteria and Methodology for Wildfire Cost Recovery Pursuant to Senate Bill 901 (2018) R19-01-006 The goal of this Rulemaking is to adopt criteria and a methodology for the Commission to use in future applications for cost recovery of wildfire costs. A Scoping Memo and Ruling was issued on March 29, 2019: http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M277/K012/277012679.PDF At the 6/27/19 meeting the Commission adopted a decision which sets forth criteria and a methodology for wildfire cost recovery pursuant to Public Utilities Code Section 451.2. On 8/7/19 PG&E filed an application for rehearing of Decision D.19-06-027. PG&E alleges that the Decision contains legal errors, violating Public Utilities Code Section 451.2 because it prohibits a utility that has filed a petition under Chapter 11 of the Bankruptcy Code from accessing the Customer Harm Threshold established by law and the Commission will not determine the CHT until a utility files an application to recover 2017 wildfire costs and because the Commission requires ratepayer protection mechanisms as a condition of accessing section 451.2 Order Instituting Investigation to Determine PG&E Corporation's At the June 13th meeting, the Commission considered an Order Instituting Investigation on the Commission's Own Motion to Determine Whether Pacific Gas and Electric Company and PG&E Corporation's Organizational Culture and Governance Prioritize Safety. Prepared by California Regulatory Happenings for the Week of August 5, 2019 Buchalter Regulatory Happenings Weekly Report: Page 5 of 16 www.buchalter.com Organizational Culture and Governance Prioritize Safety. I.15-08-019 A ruling issued June 18, 2019, established a process for parties to comment on proposals that may improve the safety culture of PG&E. The proposals are: 1) Separating PG&E into separate gas and electric utilities or selling the gas assets; 2) Establishing periodic review of PG&E’s Certificate of Convenience and Necessity (CPCN); 3) Modification or elimination of PG&E Corp.’s holding company structure; and 4) Linking PG&E’s rate of return or return on equity to safety performance metrics. Comments were due July 19, 2019. DECISION ON SB100 RPS PROCUREMENT QUANTITIES R 18 07 003 A preliminary decision was issued establishing the procurement requirements at 44% by 2024, 52% by 2027, and 60% by 2030 for SB 100 compliance. On 6/27/19 the Commission adopted D1906023 implementing provisions of SB 100 relating to procurement quantity requirements under the CA RPS. The decision requires - For compliance period 2021-2024, retail sellers must procure no less than 44% of their retail sales from eligible resources by 12/31/24 - For compliance period 2025-2027 the requirement is 52% - For compliance period 2028-2030 the requirement is 60% - Progress towards compliance during intervening years of each compliance period from 2021-2030 will continue to be treated using the same straightline method set out in previous decisions. - For each compliance period beginning with the 2031-2033 compliance period each retail seller must procure not less than 60% of retail sales from eligible resources measured as an average over the compliance period. - On 7/2/19 the ALJ issued a proposed decision on enforcement of the RPS program rules. Opening comments were due by 7/22/19. The proposed decision imposes fines on Liberty Power Holdings ($431,014) and Gexa Energy ($1,725,461) for failing to comply with certain program requirements.