City Council Legislative Subcommittee
Meeting Date: July 12, 2022
To: City Council Legislative Subcommittee
From: Jason Haber, Intergovernmental Affairs Director
Item 2: California Public Utilities Commission - Local Government Liaison Update Recommendation:
Receive an informational update and overview of the California Public Utilities Commission's policy and regulatory work concerning the telecommunications, energy, transportation, and water industries , and provide feedback.
Discussion:
The California Public Utilities Commission's Local Government Liaison will provide an update and overview of recent and ongoing proceedings of the commission that are relevant to the city, including those related to:
Exhibits:
Summer Energy Reliability
Community Choice Energy
Net Energy Metering
Water Reliability
Railroads and Rail Transit Systems
1. California Public Utilities Commission Fact Sheet: What is the California Public Utilities Commission?
2. California Public Utilities Commission Brochure: A Century of Service to California July 12, 2022 Item #2 Page 1 of 5
The California Public Utilities
Commission (CPUC) regulates
services and utilities, protects
consumers, safeguards the
environment, and assures
Californians' access to safe and
reliable utility infrastructure
and services.
To learn more about the
CPUC, please contact the
News & Outreach Office at
[email protected]
CaJifornia Public
Utilities Commission uly 12, 2022
What is the California
Public Utilities Commission?
What Industries Does
the CPUC Regulate?
t
~
Energy - Electricity and Natural Gas
The CPUC regulates investor-owned electric and natural gas utilities.
The CPUC ensures the reliability and safety of electric and natural gas systems, and works to advance renewable energy and climate goals.
Transportation - Rail and Passenger Carrier Safety
The CPUC oversees the safety of railroads and rail transit systems, for-hire passenger carriers (limousines, airport shuttles, charter and scheduled bus operators) and Transportation Network Companies (Lyft, Uber) .
Telecommunications
The CPUC develops and implements policies for the telephone comm unications and broadband markets, including ensUiing fair, affordable universal access to necessary services.
Water
The CPUC is responsible for ensuring char investor-owned water utilities deliver clean, safe, and reliable water to their customers at reasonable races.
505 Van Ness Ave. 415-703-2782 cpuc ca gov
San Francisco, CA 94102 800-848-558 0 (Toll Free/tern # 0 ~ tO ~ 0322
Staying Informed:
Where Can I Find Information About CPUC Proceedings and Events? DOCKET CARD:
www.c uc.ca. ov/Docket
Search for documents related to
CPUC proceedings!
OPEN PROCEEDINGS:
www.c uc.ca. ov/ roceed.in s-and
rulemakin Month ly updates of
proceedings currently open at the
CPUC.
SUBSCRIPTION SERVICE:
subscribe ov
Receive email noti cations when
documents such as press releases are
published.
Getting Involved:
Does My Voice Matter to the CPUC?
SERVICE LIST:
Receive ongoing communication about
a specific proceeding.
DAILY CALENDAR:
www.c uc.ca. ov/Dai l alendar
Follow hearings, meetings, workshops,
and how to access CPUC events
remotely.
MONTH LY NEWSLETTER:
www.c uc.ca. ov/news letter
Subscribe to receive our newsletter by
email, or read it online.
Yes, your voice matters! We want co hear from you to help us make decisions chat reflect all Californians' concerns and perspectives.
• Comment on an Issue: You can make comments on proceedings on the Docket Card at www.c uc.ca. ov/Docket, where you can also read the comments of others. You can also give oral comments at Public Participation Hearings and at other CPUC meetings that have designated public comment sessions, or email us at ublk.advisor c uc.ca. ov.
• Become a Party: You can become a party co a CPUC proceeding co participate formally in the decision-making process.
For more information, contact the Public Advisor's Office:
~ ao
r.:s CALL: 866-849-8390
How Can the CPUC Help Me Resolve My Issues?
O ur Consume r Affai rs Branch (CAB) can help if you have a problem with your utility bill or service that you are unable co solve directly with your utility company . You can contact CAB in three different ways:
~ CALL: 800-649-7570
~ FILE a complaint online:
July 12, 2022
(§ WRITE a letter co:
CPUC Consumer
Affairs Branch
505 Van Ness Ave.
San Francisco, CA 94102
How Does the CPUC Work with
and for Communities?
111e CPUC has several
programs co reach different
people and groups so that we
can meaningfully involve them
in CPUC proceedings and
decision-making.
Our Consumer Affairs Branch helps resolve
disputes between customers and their utility
company.
Our Publi c Advisor's Office provides
information, advice, and assistance co individuals
and groups who want co participate in CPUC
proceedings.
Our Business and Community Outreach
Office builds relationships with community
organizations and local governments , working co
keep chem informed and involved with CPUC
programs and policymaking.
Our Small Business Progr am gives small
businesses opportunities to contract with the
state and utility companies, and keeps them
informed about important issues and policy.
Our Suppli er D iversity Program successfully
encourages utilities to spend more than 20
percent of their contracts co business owned
by women, minority, lesbian, gay, bisexual and
transgender {LGBT), and disabled veterans.
Our Low Income Oversi ght Board he! ps
ensure the CPUC and utility companies serve
low income customers with helpful programs
and partnerships .
Our Disad vantage d Commu nity Advisory
Group advises the CPUC and our partners
at the California Energy Commission on
issues related co environmental justice and
social equity.
Our Telecommuni cations Access for the
Deaf and Disabl ed Administrative Committ ee
advises the CPUC about the provision of
telecommunications equipment and relay
services for persons with functional limitations
of hearing, vision, movement, manipulation,
speech, cognition , and interpretation of
information.
California Public
Utilities Commission
em #2 Page 3 of 5
The Mission of the CPUC:
California's economy depends on the
infrastructure the California Public Utilities
Commission (CPUC) and utilities provide. For
more than 100 years, the CPUC has worked to
protect consumers and ensure the provision of
safe. retioble utility service and infrastructure ot
reasonable rates, with o commitment to
environmental enhancement ond a healthy
California economy. This includes essential
services such as electric . natural gos. water .
and telecommunications infrastructure :
railroads. roil crossings, ond light rail transit
systems: passenger carriers. such as
limousines. charter buses. and ferries:
and household moving compan ies.
' ~
July 12, 2022
The CPUC's vast responslbmtles Include :
• Ensuring that regulated services ore delivered
in a safe. reliable manner , including
conducting investigations, inspections. and
audits.
• Implement ing agg ressive renewable energy
ond energy efficiency goofs ond advancing
climate strategies.
• Developing and implementing policies for the
rapidly changing communications and
broadband markets, including ensuring fair,
affordab le universal access to necessary
services. protecting against fraud, and
removing barriers that prevent a fully
competitive market.
• Safety jurisdiction over the rail system,
including freight railroads, inter-c ity passenger
railroads, commuter railroads. and roil transit
systems.
• licensing . insurance. and consumer
protection oversight of moving compan ies
and passenger carriers.
• Ensuring that California's investor-owned
water utilities deliver clean, safe. and reliable
water to their customers at reasonable rotes.
Learn more on the
CPUC 's website
The CPUC's website. www.cpuc .ca.gov ,
offers a doily calendar !hot lists CPUC
hearings, workshops. and events; offers
consumer brochures and reports on the
status of programs such as renewable
energy and energy efficiency ; ond has
downloadable fact sheets on CPUC
consumer programs and issues. There is
also a Hot Topics section : remote access
to CPUC hearings; and o Practitioner 's
page designed to put useful information
for both new and veteran practitioners in
one place for easy access.
California Public
Utilities Commission
A Century of Service to California
Working For You:
Commissioners & Staff
The Governor appo ints five
Comm issioners for six-year terms to the
CPUC and designates one as President .
Commissioners make all policy decisio ns. usually
meeting twice a month to vote on issues noted on a
public agenda. In orde r to fulfill its role in overseeing services that are essential to the ives of Californians. the CPUC employs a dedica ted staff of analysts.
econom ists, engineers. Adm inistrative Low Judges.
accountants . lawye rs. safety experts, transportation
speciarists. and other professionals. II also has a
Division of Ratepa yer Advoca tes. an independent
entity tha t represen ts consumers in
CPUC proceed ings.
Follow a Proceeding or
Receive Documents
The CPUC has a free online Subscription Service
that provides the public the abmty to subscribe to
documents pub lished on the CPUC's website that
are associated with formal proceedings . items the
Commissioners will vote on, press releases. and
more . The Subscription Service sends subscribers an
email notificat ion when any documen t meet ing
their subscription criteria is pubfished on the CPUC's
website . Sign up at
www.cpuc.ca.gov/subscription .
Ask a Question or File a
Complaint About Your
Utility Bill or Service
Contact the CPUC's Consumer Affairs
Branch , which assists consumers who have questions
about rates or services regarding elect ric. gas.
te.lephone . or water utmties. and assists consumers
who are unable to resolve an issue with their utility
compan y.
Call: 800-649-7570
Visit: www.cpuc .ca.gov/PUC/ CEC/e _complaint /
Write: CPUC Consumer Affairs Branch .
505 Van Ness Ave .. San Francisco. CA 94102
File a Complaint about a
Limo, Airport Shuttle Bus,
or a Moving Company
Contact the CPUC's Transportation Enforcement
Section to file a complaint abou t passenger carriers
or household moving companies .
Passenger car riers: 1-800-894-9444 ;
Household moving companies : 1 ·800·366•4782
Email: [email protected]
Write: CPUC Compla int Intake Unit -
Transportat ion Enforcement Section .
Safety and Enforcemen t Division.
505 Van Ness Ave .. San Francisco, CA 94102
Comment on CPUC
Proceedings or Policy
Issues
Con tact the CPUC's Public Advisor's Office if you
want to provide your views (considered "informal
comments "} on CPUC proceed ings or poflcy issues.
Written informal comments sent through email
or Postal Service are the most effect ive way to
thoroughl y and accurately commun icate your
views. Those comments are given to the CPUC's
Com missioners and Adm inistrative Low Judge s.
Verbal informal comme nts can be made at Public
Participation Hearings. during the publ ic comme nt
session of CPUC Voting Mee tings. and in other CPUC
forums that have designated public comment
sessions. The Public Advisor's Office also provides
information and advice to individuals and groups who
want to learn more about formally part icipating in
CPUC proceed ings by becoming an intervenor.
Call: 866-849-8390 or 415-703-2074
Email: public.advisor@cpuc .ca.gov
Write: CPUC Pubfic Advisor's Office ,
505 Van Ness Ave .. Room 2103.
Son Francisco. CA 94102
Visit: www.cpuc .ca.gov/PPH
The CPUC reac hes out to consumers
to help with utility issues and to
encourage interest and participat ion
in CPUC proceedings. To better reach and assist
consumers. the CPUC's acti ons include :
• Holding Public Participat ion Hearings, meet ings,
workshops. and othe r events throughout the
state on issues important to consumers, such as
managing energy bills, obtaining utility contracts
for small businesses. and utility rates.
• Utilizing speaking engagements and commun ity
and local government partnerships to promote
the CPUC's prog rams and policies.
• Establishing a call center to help answer
questions about utility service and bills and
resolve disputes.
• Establishing a Public Advisor's Office to prov ide
procedural informat ion. advice . and assistance
to individuals and groups who wont to
participate in CPUC proceed ings.
• Establishing a team of statewide Outreach
Officers to provide assistance and information
on consumer programs and services and CPUC
policies to members of the community , local and
state government offices. legislative offices. and
non-profits (www.cpuc.ca.gov/PUC/aboutus /
biz_commu nity. htm).
• Creat ing a Small Business Program to promote
procuremen t opportunitie s with the state and
utiit ies and provide educat ion on issues
impac ting the small business community
( 1-800-253-0500, [email protected] }.
• Creating a Supplier Diversity Program to promote
and monitor suppfier diversity in proc urement
by utilities and overseeing a cert ificat ion
clearinghouse (wmdvbe@cpuc .ca.gov).
California Public Utilities Commission
CPUC Update
1 City of Carlsbad Legislative Committee
July 12, 2022
Jesus Torres
California Public
Utilities Commission
California Public Utilities Commission
Brief Introduction
2 •Headquartered in San Francisco with offices in Los Angeles and Sacramento • Meet publicly at least once a month to decide on important policies, such as energy rates and procurement, renewable energy goals, and improvements to infrastructure
Alice Reynolds,
Chair
Clifford
Rechtschaffen
Genevieve
Shiroma Darcie L. Houck John Reynolds
California Public Utilities Commission
Regulated Industries
3 Oversee electric utilities to
ensure safety, reliability, and
affordability.
Consumer protection and public programs for
telecommunication companies and broadband
expansion initiatives
Oversee safety enforcement of rail
companies and rail crossings infrastructure.
Consumer safety of public transit and
independent transportation companies like
limousines, shuttles, and Uber/Lyft. etc.
Oversee water service quality issues
and process utility rate change
requests for companies like
California-American Water Company
Oversee gas utilities to ensure
safety, reliability, and affordability.
Electrical EnergY- Internet and Phone Natural Gas
Rail SafetY. TransP-ortation Water
California Public Utilities Commission
Issues of Interest - Community Choice Aggregation
4 • Certify Implementation Plans
• Authorize Non-Bypassable Charges such as Public Purpose fees. Sets the Power Charge Indifference Adjustment (PCIA) to assure bundled customer indifference
• Adjudicate complaints via expedited complaint process established in the CCA Code of Conduct • Authorizes CCA energy efficiency program funding
• Accepts Renewables Portfolio Standard (RPS) plans
• Administer Resource Adequacy requirements
• Oversee Supplier Diversity procurement goals
CPUC’s Jurisdiction over CCA’s (not an exhaustive list) California Public Utilities Commission 5
Issues of Interest – Net Energy Metering 3.0
• A Proposed Decision was issued in December 2021 that proposes to replace the NEM 2.0 tariff with a successor tariff called the “Net Billing Tariff.” • The Net Billing Tariff would apply to future residential and non-residential customers that interconnect an on-site renewable energy system in PG&E, SCE, and SDG&E territories.
• In Fenruary 2022, the Administrative Law Judge for the proceeding sent an email to the parties saying that the Proposed Decision will not appear on a CPUC's Voting Meeting agenda until further notice.
• On May 9, 2022, the Administrative Law Judge issued a Ruling to take comment on several issues:
1. Glide path approach (tariff transition from NEM 2.0 to 3.0)
2. Non-bypassable charges on gross consumption
3. Community distributed energy resources
California Public Utilities Commission 6
Issues of Interest – Summer Reliability
A
C
B
D
Energy Efficiency
Energy Efficiency programs, Energy Upgrade
California
Battery Storage
Over 4,000 MW of additional battery storage in
the last 18 months
Demand Response
Emergency Load Reduction Program (ELRP),
Load Shifting
Additional Capacity
CPUC ordered 11GW of additional capacity
A Layered Approach to Grid Reliability
•· ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
• ■ ■ ••••••••••••••
•············
•········
California Public Utilities Commission 7
▪ Educate small business owners on
utility supplier diversity program and
the State’s small business
procurement policy
SMALL BUSINESS ENGAGEMENT
▪ Listen and understanding local
customers’ issues and concerns and
voicing them to the CPUC.
UNDERSTAND LOCAL ISSUES
▪ Local resource for CBOs, public safety,
emergency preparedness personnel, small
businesses, and local governments
LOCAL RESOURCE
ASSIST WITH LOCAL ISSUES INFORM EDUCATE
▪ Issues with local utility service
▪ Rail safety/crossings
▪ Grant programs
▪ Energy Efficiency programs
• Public programs, bill assistance
• Filing Complaints
• Utility related scams/ fraud
▪ Encourage public participation in
CPUC decision making process
Assisting Local Communities
~
Distributed on
Tuesday, July 12
during Item #2
FOR IMMEDIATE RELEASE
California Public Utili ties Commi ssion
505 Van Ness Ave., San Francis co
PRESS RELEASE
Media Contact Terrie Prosper, 415.703.1366, news(m.cpuc.ca.gov Docket #s: Res E-5199; A.20-03 -002; Res E- 5202
CPUC TAKES ACTIONS TO PROMOTE ENERGY RELIABILITY
SAN FRANCISCO, April 21, 2022 - The California Public Utilities Commission (CPUC) today took several actions to ensure energy reliability for Californians this summer and beyond through approval of power purchase agreements and energy storage programs and contracts .
The CPUC approved changes to Southern California Edison Company ' s (SCE) 20-year power purchase agreements with AES Alamitos, LLC and AES Huntington Beach , LLC, which will provide an additional 49.5 megawatts (MW) of capacity and approximately 16.5 MW of energy and ancillary services at no additional cost. AES Alamitos and AES Huntington Beach are efficient combined cycle gas turbine projects that reached commercial operation in February 2020. These changes approved by the CPUC ensure that SCE has access to all of the capacity from the AES Alamitos and AES Huntington Beach projects to meet reliability needs on behalf of customers in the western Los Angeles basin sub area.
Separately, the CPUC approved the 2020 energy storage plans for Pacific Gas and Electric Company (PG&E), SCE, and San Diego Gas & Electric , per the energy targets mandated in Assembly Bills 2514 and 2868. T he three utilities have met, or nearly met, their Assembly Bill 2514 procurement obligation of 1,325 MW, which must be online by the end of 2024. In this same decision, the CPUC also authorized SCE to move forward with two programs pursuant to Assembly Bill 2868: a New Home Energy Storage Pilot funded at $5 million and a Smart Heat Pump Water Heater Program funded at $13.9 million .
Lastly , the CPUC approved nine energy storage contracts for a total of 1,598.7 MW of new capacity for PG&E to come online from August 2023 through June 2024. The contracts will contribute to meeting. cpuc.ca.gov I 415-703-2782 I 800-8A8-5580 I O O @ 0 e
"' ... •.· ,,·
PG&E's portion of the 11,500 MW of clean energy capacity ordered by CPUC in the integrated resource planning (IRP) proceeding. PG&E intends to use a portion of the resources contracted to come on line in 2023 that exceed its 2023 IRP obligations to provide additional summer reliability to meet its 2023 Summer Reliability target procurement. All of the contracts were selected through a competitive procurement process and overseen by an independent evaluator. The contracts are with Beaumont ESS I, LLC for 100 MW; Sanborn ESS I, LLC for 169 MW; Canyon Country ESS I, LLC for 80 MW; Moss Landing Energy Storage 3, LLC for 350 MW; Poblano Energy Storage, LLC for 100 MW; NextEra Energy Resources Development Corby Energy Storage for 125 MW; NextEra Energy Resources Development Kola Energy Storage for 275 MW; Nighthawk Energy Storage, LLC for 300 MW; and Caballero CA Storage, LLC for 99. 7 MW.
Prior CPUC decisions increased overall demand- and supply-side procurement requirements for utilities to serve peak and net peak demand in 2022 through 2024 and directed all load serving entities to procure 11,500 MW of new capacity under the CPUC's integrated resource planning process over the course of four years.
The proposals voted on are available at:
• SCE power purchase agreements: .
https ://docs.cpuc.c a.gov/PublishedDocs/Published /G000/l\tl468/K725/468725426.PDF • 2020 energy storage procurement plans:
https://docs.cpuc .ca.gov/PublishedDocs/Published/G000/M469 /K752/469752 476.PDF • PG&E energy storage contracts:
https://docs.cpuc .ca.gov/PublishedDocs /Published/G000/M460/K327/460327750 .PDF The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians' access to safe and reliable utility infrastructure and services. For more information on the CPUC, please visit www.cpuc.ca.gov.
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cpuc.ca.gov I 415-703-2782 I 800-848-5580
2 Consumer Information on CC As
Frequently Asked Questions
What is Community Choice Aggregation?
Community Choice Aggregation (CCA), is a program that allows cities, counties and other qualifying governmental entities available within the service areas of investor-owned utilities (IOUs), to purchase and/or generate electricity for their residents and businesses. It is not an IOU program. The IOU continues to deliver the electricity through its transmission and distribution system and provide meter reading, billing, and maintenance services for CCA customers . • Enables local governments to aggregate electricity demand within their jurisdictions in order to procure electricity for its customers
• The investor-owned utility provides transmission and distribution services, and continues to provide all metering, billing, collection, and customer service to retail customers that participate in a CCA.
How do I know ifl am in a CCA service area?
You may ask your IOU provider or go check out this interactive map as created by Clean Power Exchange that provides this information .
Active CCAs: Link here to all currently active CCAs in the State of California. Includes Implementation Plans, Rate Comparisons, and CCA Websites Does the CCA procure electricity on behalf of its residents and businesses? Community choice aggregations procure electricity on behalf of retail electricity customers within some geographic areas. CCAs may be run directly by a city or county government or by a third party through a contractual arrangement such as a joint powers agreement.
Is the CCA responsible for transmission and distribution of electricity? CCAs are not responsible for transmission and distribution of electricity.
Does the CCA bill its residents and businesses?
CCAs are not responsible for billing. The IOU will be responsible for billing customers.
How will I be billed for CCA service?
Customers who receive their electric supply from a CCA receive a consolidated bill issued by the IOU that includes charges from both parties. The IOU collects payments on behalf of the CCA, which are then sent to the CCA.
procurement services from your CCA. In either event, the IOU will continue providing transmission and distribution services to you. Regardless of whether or not you opt out of CCA service, you will continue to be eligible for ratepayer- funded programs, such as the California Solar Initiative and energy efficiency programs that are funded by distribution surcharges.
Can the IOU process my opt out request?
The IOU cannot assist with your request to opt out of CCA. To opt out, each CCA program will require customers to take some type of action, such as calling at toll-free number, sending a self addressed return postcard or letter, or completing an opt-out form. A CCA is required to notify customers in writing to explain which opt-out methods will be available should they decide to opt out of the program .
Once a customer opts out of a CCA program, can he/she join the CCA program at a later time
Yes, a customer who opts out of a CCA program can join the program at a later date. However, if a customer opts out of a CCA program after the first 60 days of service with the CCA, the customer will be required to remain with the IOU's bundled service for one year. In order for a customer to join a CCA program after opting out, the customer must contact the CCA program directly.
What happens to my electric service if I move to a city or county that is part of a CCA program?
If a customer moves to a city or county that has started a CCA program, the customer would become a customer of the CCA program by default unless they take action to opt out. If a customer does not opt out of the CCA program at the time they start service, the customer would receive 2 notifications from the CCA program during the initial 60 day period that include opt out instructions.
Is there a way to compare the CCA generation rates with those of the IOU? Yes, each IOU and CCA are required to develop a "Joint Rate Comparison" that shows the how the different rates compare to one another. The Joint Rate Comparison should have been sent to all potential customers (Not sure if this is true?). The rate comparison is also available on the CCA and IOUs websites or by contacting them directly.
How will I be billed for CCA senrice?
Customers who receive their electric supply from a CCA receive a consolidated bill issued by the IOU that includes charges from both parties. The IOU charges for transmission and distribution services to deliver your power, and the CCA charges for the power itself. The IOU collects payments on behalf of the CCA, which are then sent to the CCA. There will only be one bill to pay.
How much will I pay for the IOU's electric charges?
Under a CCA program, the IOU will continue to bill you for non-generation charges , which include electricity delivery (transmission and distribution) and other miscellaneous charges.
Additionally, the IOU assesses a tiering of rates through its delivery charges for residential customers, known as the "Conservation Incentive Adjustment." You will also be assessed a "Power Charge Indifference Adjustment" (PCIA), which is a charge to cover the IOU' s generation costs acquired prior to a customers switch to a third-party electric generation provider. Your CCA provider generation charges will be consolidated in the monthly bill you receive from the IOU.
What is the Power Charge Indifference Adjustment (PCIA) I see on my bill ? PCIA is the portion of your bill intended to ensure that customers who receive their electric supply from third-party providers, such as a CCA, pay their share of costs for energy that was acquired by the IOU to serve them prior to their departure. The PCIA is included in the IOU's "non-generation charges" and may change annually to ensure that the IOU's remaining customers do not bear any cost created by departing customers who receive their electric supply from a third- party provider, such as a CCA. Customers who participate in the Medical Baseline Allowance program are exempt from the PCIA charge.
Which IOU services and programs remain available to CCA customers? IOUs manage transmission, distribution and delivery of a CCA customer's electricity, including providing meter reading, billing, maintenance and outage response services. Additional IOU services, including energy-efficiency rebates, California Alternative Rates for Energy (CARE), medical baseline, balanced payment plans (generally only on IOU delivery charges), net metering, California Solar Initiative, other solar programs, and some demand response programs, as well as programs such as e-Bills and Automated Payment Services are still available to CCA customers . Programs administered by the CCA may differ from those provided by the IOU.
Why is my home's electric use billed according to "pricing tiers?" The State of California requires IOUs to charge all residential customers on a tiered rate structure which is reflected in the Conservation Incentive Adjustment section of your bill. With tiers, electricity is charged at a progressively increasing rate based on your household's use. At the beginning of each month, you start with a baseline amount of electricity where energy costs the least-Tier 1. The higher the tier, the more you pay for a kilowatt-hour of electricity in that tier.
As a CCA customer, this tiered rate structure remains in place for your delivery(non-generation) charges. The Conservation Incentive Adjustment is included within your IOU delivery charges.
Why do I have a "Vintage Rate" as a CCA customer?
The portion of the IOU' s generation rate that needs to be recovered through the PCIA depends on the year in which the customer began receiving generation supply from the CCA. Up to that point, the IOU was responsible for undertaking generation commitments to serve the customer.
The customer's Vintage Rate does not change, but the PCIA rate for that vintage will likely change every year.
What is a Franchise Fee Surcharge (FFS)?
Customers who receive their electric supply from a third-party provider are billed a franchise fee surcharge (FFS). The IOU normally collects the FFS directly from full bundled customers in the "Total Bundled Rate." The money collected through the FFS is paid to municipalities for the purpose of supporting vital local services. The IOU acts as a collection agent for this fee.
H I am in a CCA program and have questions about the charges on my bill, whom do I contact? If you have questions about the IOU charges on the bill, you should contact the IOU. If you have questions about the CCA charges on your bill, you should contact the CCA. Y ou may also need to contact one or both service providers for inquiries other than billing.
Proposed Decision in R.20-11-003 Directing PG&E, SCE, and SDG&E to Take Actions to Prepare for Potential Extreme Weather in Summers 2022 and 2023 https: / /\,ww.cpuc.c1.gov /surnrnerreadincss /
On October 29, 2021, the assigned Adminis trative Law Judge issued a proposed decision (with J\ttachrnents 1 and 2) directing Pacific Gas & Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E), collectively the investor-owned utilities (IO Us) to take multiple actions to prepare for potential extreme weather in summers 2022 and 2023.
Summary of Proposed Decision (PD)
The PD contains proposals to address the risk of electricity outages during extreme weather events similar to the west-wide heat waves of 2020 and 2021. The proposals would create new programs and modify existing programs to reduce energy demand and increase energy supply during critical hours of the day in summers 2022 and 2023.
The PD finds that a range of 2,000 to 3,000 megawatts (MW) of new supply- and demand-side resources would help address grid reliability concerns under the most extreme circumstances in 2022 and 2023. These additional resources, if achieved, would amount to an effective planning reserve margin of 20%-22.5% at system peak, and an effective planning reserve margin of 15%-17.5% at net peak, for 2022 and 2023.
In light of this finding, the PD directs the IO Us to take the following actions :
1. Procure additional incremental resources from new or existing facilities in excess of the otherwise applicable Resource Adequacy (RA) requirements (RA requ irem ents already provide a 15% planning reserve margin), with the following key parameters:
• IO Us are responsible for engaging in procurement in excess of existing planning standards. All CPUC jurisdictional entities receive reliability benefits, so they all bear the cost of new procurement. • Eligible resources must provide energy at net peak ( 4 PM - 9 P!v1) during the months of concern Qune through October); examples of eligible resources include incremental energy storage, incremental capacity through efficiency upgrades at existing natural gas power plants, and firm energy imports.
• Supply resources that are not fully integrated into the CAISO market under Resource Adequacy resource requirements can qualify toward these incremental procurement targets if they provide the grid energy during emergencies.
• An IOU Central Procurement Entity, as previously established via the Resource Adequacy proceeding to undertake procurement in transmission constrained local areas subject to market power, may procure resources for other load serving entities in supply-constrained local areas to insure against procurement failures or delays.
• IO Us are encouraged to bring supply resources online in advance of their required online date.
2. Expand and modify the existing Emergency Load Reduction Program (ELRP) adopted in Phase 1 of this proceeding, with the following key enhancements:
• Doubles the ELRP compensation rate for volunta1y reductions in energy consumption achieved by customers during times of grid stress to $2 per kilowatt hour, or $2,000 per megawatt hour . • Creates several new options, as well as enhances existing options, for patticipation in ELRP: directly enrolled residential customers, aggregators of non-residential rnstomers, virtual power plants, and electric vehicle -to-grid managed charging and discharge to support the grid. • Restricts tl1e use of diesel bach."1.lp generators located in disadvantaged communities w1til after other options have been exhausted (if still needed to address a critical grid need) .
3. Implement a new ELRP pilot option for directly enrolled residential customers, allowing residential customers to receive payment for voluntarily reducing their electric usage in response to Flex Ale1ts during times of grid stress. IO Us are required to conduct focused outreach to customers in disadvantaged communities and customers enrolled in the CPUC's California Alternate Rates for Energy program .
4. Create a new ELRP option for aggregators to manage electric vehicle-to-grid charging and discharging to support the grid, allowing rnstomers to earn $60 to $120 per year per kilowatt of energy demand reduction capacity.
5. Modify existing IOU-administered demand response (DR) programs and directs the IOUs to procure additional DR resources from tl1ird-patty DR providers. DR programs allow customers to reduce their electricity usage when needed for grid reliability.
6. Develop a new smart thermostat incentive program that will provide $22.5 million in total incentives to install smart thermostats that assist rnstomers in reducing air conditioning usage a few degrees during critical times- if the customers are enrolled in a DR program. Low-income customers that qualify for the CPUC's Energy Savings Assistance Program may receive fully subsidized smart thermostats and are not required to participate in a DR program to receive the subsidy.
7. Create two dynamic rates pilot programs to test the effectiveness of customer response to electricity rates iliat change rapidly during grid emergencies . One pilot will shift agricultural water pumping to off peak times in response to price signals, whereas the other pilot will test how dynamic rates affect customer end-uses such as behind-tl1e-meter batteries and electric vehicle charging .
8. Continue and extend the Flex Alert media campaign to focus on the new Residential ELRP pilot and continue existing activities into 2022 and 2023.
Background
• In August 2020, a majority of the western United States encow1tered a prolonged extreme heat event. As a result, the CAISO initiated rotating outages to prevent wide-spread service intenuptions in two incidents; each incident included 500-1,000 MW of load disruption for about 2 hours. The final Root Cause Analysis of the event was released in J anua1y 2021 and is available at California ISO - 2021 Summer Readiness (c;aiso.com).
• In November 2020, tl1e CPUC opened Rulemaking (R.) 20-11-003 to he lp ensure reliable electric service in California in the event of an extreme weather event in 2021. 2 • In Febrnary and Marc h 2021, the CPUC issued its Phase 1 decisions in this proceeding (D.21-02 -028 and D.2103 056) to pro vide additional resources in summers 2021 and 2022 in an extreme weather event. o The CPUC ordered the IOUs to procure additiona l incremental resources of 1,000-1,500 MW, effectively increasing the planning reserve margins available to about 17 .5%. o The CPUC ordered the IO Us to create a new Emergency Load Reduction Program pilot to pay as available energy resources during grid emergencies; program rnles ensure that the payments to customers are based on performance and additiona l to any existing demand response actions. • In July 2021, Governor Newsom issued an Emergency Proclamation urging all state energy agencies to ensure there is adequate electricity to meet the needs of Californians in 2022. • In August 2021, the CPUC opened a new phase of this proceeding to focus on summers 2022 and 2023. • Despite e:irtreme weather events in summer 2021, the state was able to avoid systemwide rolling outages like the ones experienced in August 2020, in part due to actions taken during Phase 1. However, the acceleration of climate change continues to create extreme heat events, droughts, and wildfires across the West. • The CPUC has ordered 14,800 MW of new resources come online between 2021-2026 through the Integrated Resource Planning proceeding (R.20-05-003) procurement orders. IRP Procurement 'I'rack (ca.gov1
Next Steps
Parties may file comments on this PD before the CPUC votes on it. Comments are due November 10, 2021, and reply comments are due November 16, 2021. The first opportunity for the CPUC to vote on tfos PD is at the Voting Meeting on December 2, 2021.
Acronyms and Definitions
Acronym Definition
CAISO California Independent System Operator
CPUC California Public Utilities Comm ission
DR Remand Resp onse
ELRP Emergency Load Reduction Program
MW megawatt
IOU Investor-owned Utility
PD Proposed Decision
RA Resource Adequacy
3 More Information
• More information is available at:
https://www.cpuc.ca.gov/summerreadiness /
CPUC Frequently Asked Questions
Ruling - Net-Energy Mete ring Tariff Revisit Proceeding May 9, 2022
Proceeding (R.20-08-020) I www.cpuc.ca.gov/nemrevisit
1. What is the Net-Energy Metering (NEM) tariff, currently known as NEM 2.0? Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) customers who install rooftop solar on their property and connect it to the electrical grid are eligible for the NEM 2.0 tariff. The NEM 2.0 tariff governs how rates are calculated for rooftop solar customers as their panels interact with the grid throughout the day. The NEM tariff allows customers to receive a financial credit on their electricity bills when their rooftop solar system sends excess electricity to the electric grid.
Although the NEM tariff covers technologies like wind and biogas, the vast majority of NEM 2.0 customers have installed rooftop solar. Some NEM 2.0 customers pair their solar system with battery storage, which allows them to store electricity for use during evening hours, when the sun is do'\vn and electricity prices are higher .
Both residential and nonresidential customers 0ike businesses and schools) are eligible to participate in the NEM 2.0 program.
To learn more about the program, please visit the California Public Utilities Commission's (CPUC) N F~l\.f wd )p :1ge.
2. What is a CPUC proceeding, Ruling, and Proposed Decision? A CPUC proceeding is a formal public decision-making process overseen by an Administrative Law Judge (ALJ) with an Assigned Commissioner. This process provides a transparent venue for parties to the proceeding to present evidence for consideration by the CPUC.
Throughout a proceeding, the ALJ may issue one or more Rulings to communicate with stakeholders participating in the proceeding, who are formally called "parties." Rulings may include documents for party feedback, questions presented for party comments, or any number of matters that are relevant to the scope of the proceeding. For example, a previous R1Jling in the NEM revisit proceeding (R.20 -08-020) included a white paper as an attachment and provided guidance for parties on developing their NEM reform proposals.
Prior to adopting a final Decision in a proceeding, the CPUC will consider a Proposed Decision, which proposes final judgement on a matter for adoption at a public Voting Meeting . Parties and the public may provide comments on the Proposed Decision, and the ALJ may revise the Proposed Decision before it is voted on by the CPU C's Commissioners . Multiple decisions may be adopted over time within a proceeding.
3. Why is the CPUC proposing to modernize the NEM 2.0 tariff? In 2013, Assembly Bill 327 required the CPUC to reform the NEM tariff.1 The bill required the CPUC to:
1 See the text of J\B 327 (Perea, 2013) here: h ttps:/ /leginfo .legishtm:e.ca.gov/ faces/bi.llNavC llent.xhtml?hi1l id::::2()1320 l40AB327 1 Protecting California since 1911
The c0 uc regu[ates privately owned !';tectric, naturnl gas, te\ecomrn unicati ons, water, ra ilroad, rail tran sit, and passenger tran sportat io n compa n,es. @California PUC • Ensure that customer-sited renewable distributed generation continues to grow sustainably ; • Include altematives designed for growth in disadvantaged communities; • Base the tariff on the costs and benefits of the renewable electric generation facility; and, • E nsure that the total benefits of the tariff to all customers and the electric system are approximately equal to the total costs .
The CPUC made initial revisions to the NEM tariff in 2016 in Decision (D.) 16 OJ 04t The tariff then became known as the NEM 2.0 tariff The CPUC stated in its 2016 Decision that it needed additional information before adopting further changes to the NEM tariff to comply with Assembly Bill 327. The CPUC started its N EM 2.0 tariff revisit p rocess in August 2020 with the approval of O rder Instituting R.ulemaking (It) 20-08- 020, which formally opened the active NEM revisit proceeding.
4. The CPUC issued a Proposed Decision to modernize the NEM 2.0 tariff on December 13, 2021.
What are the changes the CPUC proposed?
The December 2021 Proposed D ecision issued in the NEM revisit proceeding proposes to replace the NEM
2.0 tariff with a successor tariff called the "Net Billing Tariff." The Net Billing Tariff would apply to future residential and non-residential customers that interconnect an on-site renewable energy system in PG&E, SCE, and SDG&E territories .
The Proposed Decision proposes to:
• Pay Net Billing Tariff customers for the electricity they export to the grid based on its value to the electric grid, determined by the Avoided Cost Calculator. The Avoided Cost Calculator quantifies the value of electricity exported to the grid at different times of day, based on the avoided cost to the utility of buying clean energy elsewhere .
• Charge Net Billing Tariff customers for the electricity they receive from the grid based on high differential time-of-use rates - rates that vary based on the time of day (and cost of electricity at various times of the day). These rates incentivize customers to install battery storage so they can store and then use and expott electricity in the evening when the sun is down and electricity prices are higher. • Provide a Market Transition Credit so that residential Net Billing Tariff customers can pay off the cost of a solar plus storage energy system in less than 10 years. Residential customers would be eligible to receive this monthly electric bill credit during the first four years of the tariff, and they would lock in their credit amount for 10 years. The Market Transition Credit itself would step down by 25 percent each year for prospective customers.
• E stablish a Grid Pa1ticipation Charge based on the size of the solar system so that residential Net Billing Tariff customers pay their share of the fixed costs of the electric grid, similar to other customers without rooftop solar. Low-income customers, customers living in a disadvantaged community, and customers on tribal lands2 would be exempt from paying this charge. • Allow solar systems to be sized to cover 150 percent of a customer's historical load to enable future electrification .
• Establish an E quity Fund with up to $600 million to support clean energy and storage programs for low-income and disadvantaged Califomians.
• Transition existing NEM tariff customers to the Net Billing T ariff after their solar system has been interconnected to the electric grid for 15 years.
More information on the proposed decision can be found on th is CPUC webpag:e. 2 Defined in the 18 United States Code Section 1151: bttps:/ /www.gm'in i().t>ov iapp / de tails/USCODE -2011-title l 8/LTSCODE -2011- titlc 18-partl -chap53 .. secll51
Protecting California since 1911
Th€ CPUC regulates privatel y· o;.vned electric, natura1 gas, teiecornmunkations, water. railroad , rail transit, and passenger transportatjon companies. 2 @California PUC
5. The CPUC issued a Ruling on May 9, 2022. What is 2022 Ruling asking for feedback on? The May 9, 2022 Ruling represents another step in the CPUC's decision-making process regarding a successor tariff to NEM 2.0. The questions presented in the May 9, 2022 Ruling were developed after consideration of comments from parties and evidence in the record of the proceeding. They focus on how to provide a gradual transition from the NEM 2.0 tariff to the Net Billing Tariff; how to collect public purpose charges from Net Billing Tariff customers; and community solar photovoltaic (PV) models. These three issues are described below.
I) Gradual Transition from NEM 2.0 to the Net Billing Tariff • The CPUC considered various party proposals to gradually transition from the NEM 2.0 tariff to the Net Billing Tariff.
• The May 9, 2022 Ruling requests party feedback on a transition approach in the form of a fixed electric bill credit "adder" on top of the hourly export credits. Pursuant to the Ruling, parties are asked to consider a proposed adder that would be in cents per kilowatt-hour (c/kWh), which would step down over time for new customers, providing a glide path ending at Avoided Cost Calculator values. • The May 9, 2022 Ruling requests party feedback on how much the adder should be, and over what timeframe it should be offered to new customer s.
II) Collecting Public Purpose Charges from Successor Tariff Customers • Some partie s have proposed that the tariff could bill customers for their full contribution to fund public pmpose pro grams, such as low-incom e assistance, energy efficiency programs, and wildfire hardening costs, even after they switch to rooftop solar to cover some of their electricity needs . This proposal is referred to as "Non-bypassable Charges on Gross Consumption ." • The May 9, 2022 Ruling requests party feedback to gather more information about this proposal, including questions regarding which set of charges would be appropriate to include, and on which customers they should be assessed. For example, the Ruling asks if low-income customers on the Net Billing Tariff should be exempt from paying these charges.
III) Community Solar
• The CPUC oversees two community solar PV programs including the Enhanced Community Renewables program and the Community Solar (;ree n 'Lu:iff The Community Solar Green Tariff provides clean energy access to low-income customers living in disadvantaged communities. Customers that participate in that program are eligible to receive a 20 percent electric bill discount in addition to other low-income discounts offered by utilities.
• The May 9, 2022 Ruling requests feedback on the advantages and disadvantages of the Community Solar Green Tariff compar ed to other community solar PV models . • The May 9, 2022 Ruling also requests feedback on whether any community solar program or tariff should guarantee a certain level of electric bill savings for low-income custom ers and / or renters .
6. What are the next steps in the NEM Revisit proceeding? Patty comments on the May 9, 2022 Ruling are due on June 10, 2022, and reply comments are due on June 24, 2022. The public may submit comments to the Ruling at any time by visiting the proceeding's Dock et Card.
Protecting California since 1911
The CPUC reguiatas privately O'Nned electri c, natu ral gas, t.eieco rn.rnuni c:atio ns. wate r. ra ilroad _. rail tran s;!, and passenger transportat ion co mpar,;es. 3 @California PUC