Attachment 3
SDGE™
April 30, 2024
Leon Firsht
City of Coronado | Director of Public Services and Engineering 1825 Strand Way
Coronado, CA 92118
SUBJECT: California Public Utilities Commission Electric Rule 20A Update and Work Credit Summary
Dear Leon,
Thank you for your continued partnership with San Diego Gas & Electric (SDG&E) to underground our overhead electric power lines to help improve community aesthetics and meet our commitment to provide clean, safe, and reliable energy to our customers. This letter is intended to provide an explanation concerning the recent California Public Utility Commission (CPUC) Rule 20 Decision (D. 23-06-008) and the consequences to the City of Coronado's Rule 20A program.
Rule 20A Background and CPUC D. 23-06-008 Summary:
Rule 20A is a subprogram of Rule 20 under which the CPUC permits utilities to allocate ratepayer- funded work credits to cities and unincorporated counties for electric facility undergrounding projects that meet eligibility criteria focused on aesthetic purposes. In 2017, the CPUC opened a Rulemaking, R.17-05-010, to review issues related to the undergrounding of electric distribution lines, and specifically to consider the possibility of modifying the undergrounding programs pursuant to the Electric Tariff Rule 20 which is applicable to the investor-owned utilities in California. The rulemaking was separated into two phases. The Phase 1 Decision (D.21-06-013) was released in June 2021 and the Commission issued the Phase 2 Decision (D.23-06-008) approving a revised Electric Rule 20, on June 8, 2023. The second closed Rulemaking 17-05- 010.
As directed by D.23-06-008 SDG&E submitted modifications to its Electric Rule 20A Tariff in Advice Letter 4253 and in Advice Letter 4254 (approved on September 13, 2023), which was served on all communities with Rule 20A programs.
Attachment 3
The revised Electric Rule 20A Tariff has been updated to the following:
(a) An Active Rule 20A Project shall be defined as a project with a signed resolution that the utility has designated as either "active" or on "hold." Whereas Resolution E-4971 defines an "inactive" community as a community that has not (i) formally adopted an undergrounding district ordinance which expires at completion of work within the district boundaries, (ii) started or completed construction of an undergrounding conversion project since 2011, or (iii) received Rule 20A allocations from the utility for only 5 years or fewer due to recent incorporation. An "underserved" community is defined as any city, unincorporated county, or tribal jurisdiction that has not completed a Rule 20A project since 2004.
(b) A Rule 20A project that a utility has designated as on "hold" is a project that was initiated but has stopped for an indeterminate amount of time due to the community possessing insufficient work credits to fund the entire project.
(c) Any Rule 20A work credit that has not been allocated to a community with an Active Rule 20A Project within two years of the effective date of this decision shall be deemed expired. (d) Communities shall have the option to contribute financially to any Rule 20A project that has insufficient work credits for completion.
(e) Any Rule 20A work credit that has not been deducted from a community's work credit balance by December 31, 2033, shall be deemed expired.
For any questions, please refer to the documents at
https://www.sdge.com/major-projects/Rule20Undergrounding.
Work Credit Allocations Balance:
Work Credit Balance as of January 1, 2023 $2,845,596
2023 Adjustments to previously reported projects $0
2023 Closed Projects $0
2024 Allocation $0
Work Credit Allocation Balance Total $2,845,596
Underground Utility Districts Status Summary:
SDG&E is not aware of any approved resolutions for Rule 20A utility undergrounding districts within the City of Coronado. Currently, the City of Coronado has a Rule 20A work credit allocation balance of $2,845,596 and no additional work credits will be allocated.
If the City of Coronado elects to proceed with a Rule 20A project, City staff will need to provide an executed City Council Resolution forming a UUD, detailed project boundary map, approved environmental documentation, and City streetlighting plans no later than December 1, 2024 to allow SDG&E time to review and allocate to the Project within two years of the effective date (by June 2025) as per Item C. listed above.
Sincerely,
Attachment 3
Kelli Fitzgerald
Franchise Planning Manager SDGE™
[email protected]
Michael McEachern - SDG&E | Design & Proj Mgmt | Project Manager II Roberto Alcantar - SDG&E | Regional Public Affairs | Public Affairs Manger Attachments:
2023 Rule 20A Conversion Report - SUMMARY