CPUC Public Agenda 3294Thursday, May 24, 2012, 9:00 a.m.

San Francisco, CA

Commissioners: Michael R. Peevey

Timothy Alan Simon Michel Peter Florio

Catherine J.K. SandovalMark J. Ferron

www.cpuc.ca.gov

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 9:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment:Item: 4, 9 & 24All items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 2 minutes to address the Commission.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 9:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment:Item: 4, 9 & 24All items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 1 minute to address the Commission.

• A bell will ring when time has expired.

•The following items are NOT subject to Public Comment:Item: 4, 9 & 24All items on the Closed Session Agenda

Agenda Changes• Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting.

• Items on Today’s Consent Agenda are: 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 18, 19, 20, 21, 23, 24, 25, 26, 28, 29 & 30

• Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting.Items: 46, 49, 51 & 55 from the Regular Agenda have been added to the Consent Agenda.

• Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Item: 17 has been moved to the Regular Agenda.

• Items: 22, 45 & 52 have been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 6/7/12: 17, 27, 31, 31a, 31b, 34, 36, 37, 40, 43, 44, 47, 48, 50, 53 & 56

Held to 6/21/12: 5, 12, 38, 39, 39a & 41

Held to 8/2/12: 42

Regular Agenda

• Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote.

• For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed.

• The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

Regular Agenda – Energy OrdersItem #32 [11189] Amendments to Public Utilities Code Section 399.20 Enacted by Senate Bill 380, Senate Bill 32, and Senate Bill 2 1X and Petitions for Modification of Decision 07-07-027

R11-05-005 Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program.

Ratesetting Comr. Ferron/ Judge DeAngelis------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Implements the amendments to Public Utilities Code § 399.20 enacted by Senate Bill (SB) 380 (Kehoe, Stats. 2008, ch. 544, § 1), SB 32 (Negrete McLeod, Stats. 2009, ch. 328, § 3.5), and the more recent amendments enacted by SB 2 of the 2011-2012 First Extraordinary Session (Simitian, Stats. 2011, ch. 1) (SB 2 1X).

• Adopts, among other things:

• A new pricing mechanism for the Commission’s § 399.20 Feed-in Tariff (FiT) Program, referred to as the “Renewable Market Adjusting Tariff” or “Re-MAT.” Re MAT includes two principle components. First, a starting price based on the weighted average contract price of Pacific Gas and Electric Company, Southern California Electric Company, and San Diego Gas & Electric Company’s highest priced executed contract resulting from the Commission’s Renewable Auction Mechanism auction held in November 2011. This starting price will apply to three FiT product types: baseload, peaking as-available, and non-peaking as-available. Second, a monthly price adjustment mechanism that increases or decreases the starting price in each product type based on the market response. Finally, each accepted project will be paid a time-of-delivery adjustment based on the generator’s actual energy delivery profile and the individual utility’s time-of-delivery factors.

• Several new or revised FiT Program components, including, among other things, increasing the maximum size of eligible facilities to 3 megawatts, adjusting capacity allocations among the utilities, adopting project viability criteria, and excluding small electric utilities from the program.

• Denies two petitions for modification of Decision 07-07-027, the decision initially establishing the tariffs and standard contracts for utilities under § 399.20, filed by Sustainable Conservation and by Solutions for Utilities, Inc.

ESTIMATED COST:

• Unknown.

Regular Agenda – Energy OrdersItem #33 [11256] Calculation of the Net Energy Metering Cap

R10-05-004 Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Quasi-Legislative Comr. Peevey/ Judge Duda----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Clarifies that the term “aggregate customer peak demand” in the denominator of the equation to calculate the five percent Net Energy Metering cap, shall be defined as the highest sum of all customers’ non coincident peak demands that occurs in any calendar year.

ESTIMATED COST:

• Unknown.

Regular Agenda – Energy OrdersItem #35 [11288] Electric Program Investment Charge: Purposes, Governance, and Funding Collections for 2013-2020

R11-10-003 Order Instituting Rulemaking on the Commission's own motion to determine the impact on public benefits associated with the expiration of ratepayer charges pursuant to Public Utilities Code Section 399.8.

Ratesetting Comr. Peevey/ Judge Fitch--------------------------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Affirms the Commission’s authorization in Phase 1 of this proceeding for the Electric Program Investment Charge (EPIC) to provide public interest investment in clean energy for the benefit of electricity ratepayers.

• Funding is authorized in the area of applied research and development, technology demonstration and deployment, and market facilitation.

• The EPIC funds will be administered 80% by the California Energy Commission (CEC) and 20% by the electric utilities in the area of technology demonstration and deployment.

• All funds will be administered under Commission oversight, with a proceeding at least every three years to consider investment plans presented by the administrators.

• All administrators of EPIC funds will be subject to the same limits and requirements, including a 10% cap on administrative expenditures, annual reporting requirements, and at least one independent review conducted by a consultant hired by Commission staff in 2016.

• Collections authorized in Decision 11-12-035 in Phase 1 for 2012 shall be allocated to the EPIC budget in the same proportions as the funding authorized in this decision.

• Sets limits on fund shifting.

• Sets rules and expectations for periodic utility transfer of funds to the CEC.

• Closes the proceeding.

ESTIMATED COST:

• $162 million annually from 2013-2020 from the ratepayers of Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company.

Regular Agenda – Energy Resolutions and Written Reports

Item #17 [11302] Southern California Edison Company's Power Purchase Agreements With Fotowatio Renewable Ventures Regulus Solar, L.P.; FRV Adobe Solar, L.P.; and FRV Mojave Solar 4, L.P.

Res E-4500, Advice Letter 2563-E filed on March 21, 2011 and Advice Letter 2563-E-A filed on January 26, 2012 - Related matters.----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves cost recovery for power purchase agreements between Southern California Edison and Fotowatio Renewable Ventures (FRV) Regulus Solar, L.P.; FRV Adobe Solar, L.P.; and FRV Mojave Solar 4, L.P.

ESTIMATED COST:

• Actual costs are confidential at this time.

Regular Agenda – Energy Resolutions and Written Reports

Item #36 [11153] San Diego Gas & Electric Company's Twenty One Renewable Energy Power Purchase Agreements

Res E-4466, Advice Letter 2268-E filed on July 6, 2011 - Related matters. -----------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves cost recovery for twenty-one (21) long-term renewable energy power purchase agreements (PPA) between San Diego Gas & Electric Company and Sol Orchard San Diego I LLC through Sol Orchard SanDiego 4 LLC, Sol Orchard San Diego 6 LLC through Sol Orchard San Diego 10 LLC and Sol Orchard San Diego 12 LLC through Sol Orchard San Diego 23 LLC.

• Approves the PPAs with modifications to cap at $13.5 million the costs that ratepayers reimburse to the seller for distribution and transmission upgrades (network and reliability).

ESTIMATED COST:

• Costs of the PPAs are confidential at this time.

Resolution E-4466 (Agenda Item #36)

San Diego Gas & Electric Company (SDG&E) requests approval of twenty-one

renewable energy power purchase agreements with Sol Orchard San Diego

(1-4, 6-10, and 12-23), LLC.

Contract Summary

• Resolution E-4466 approves twenty-one solar PV contracts (1.5-5.0 MW each) with modifications.

• Resolution E-4466 modifies the contracts to cap ratepayer exposure to transmission upgrade costs.

Facility ResourceContract Terms

Cumulative

Capacity

Total Annual

Deliveries

Location

Sol Orchard Projects (21 separate

facilities)

Solar PV 25 years 35-50 MW76-120 GWh

Various locations across SDG&E service

territory

Sol Orchard: 21 distributed Solar PV projects

• The Sol Orchard Projects are divided into two groups:

• Sol Orchard I: 15 individual projects (~68 GWh/yr) expected to COD 12/31/12

• Sol Orchard II: 6 individual projects (~41 GWh/yr) expected to COD 12/31/13

• All twenty-one of these projects will be located in San Diego County, and will be interconnected at the distribution level.

• Long-term deliveries from these projects expected to help SDG&E meet its long-term compliance need in the third compliance period under SB 2 (1X)

• Some of these projects may utilize Sol Focus’s concentrated solar PV (CPV) technology.

Timeline of Sol Orchard contracts• December 2010: CPUC issued Decision adopting Renewable Auction

Mechanism (RAM) for projects 1-20 MW.

• April 12, 2011: Gov. Brown signed SB 2 (1X) into law.

• April 2011: SDG&E executed 21 PPAs with Sol Orchard for projects sized 1.5 to 5.0 MW.

• July 2011: IOUs’ large-scale 2011 RPS RFO closed.

• July 2011: SDG&E filed AL 2268-E with the CPUC seeking approval of the 21 Sol Orchard PPAs.

• October 2011: IOUs filed 2011 RPS RFO short-list with CPUC.

• November 2011: 1st RAM Auction closed.

Regular Agenda – Energy Resolutions and Written Reports

Item #36 [11153] San Diego Gas & Electric Company's Twenty One Renewable Energy Power Purchase Agreements

Res E-4466, Advice Letter 2268-E filed on July 6, 2011 - Related matters. -----------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves cost recovery for twenty-one (21) long-term renewable energy power purchase agreements (PPA) between San Diego Gas & Electric Company and Sol Orchard San Diego I LLC through Sol Orchard SanDiego 4 LLC, Sol Orchard San Diego 6 LLC through Sol Orchard San Diego 10 LLC and Sol Orchard San Diego 12 LLC through Sol Orchard San Diego 23 LLC.

• Approves the PPAs with modifications to cap at $13.5 million the costs that ratepayers reimburse to the seller for distribution and transmission upgrades (network and reliability).

ESTIMATED COST:

• Costs of the PPAs are confidential at this time.

Regular Agenda – Legislative and Other Matters

Item #54 [11244] Voice Over Internet Protocol and Internet Protocol Enabled Communications Service

SB 1161 (Padilla)-----------------------------------------------------------------------

This bill would prohibit the California Public Utilities Commission from regulating Voice over Internet Protocol and Internet Protocol enabled service (IP enabled serviced providers unless expressly provided otherwise in statute). (Legislative Subcommittee Recommendation: None).

Commissioners’ Reports

Management Reports

Regular Agenda – Management Reports and Resolutions

Item #57 [11264] Executive Director Clanon Report----------------------------------------------------------------

Report on the California LifeLine Program’s “Hello, Savings!” Gold ADDY Award for Mixed Media at the Fresno Advertising Federation's 2012 ADDY Awards.

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California LifeLine Program’s “Hello, Savings!” Campaign

Michael AmatoInterim Director, Communications Division

California Public Utilities Commission

May 24, 2012

• California LifeLine Program’s “Hello, Savings!” campaign received a Gold ADDY Award at the 2012 Fresno Advertising Federation’s ADDY Awards on February 24, 2012 (Mixed Media Category)

• Campaign’s elements: Internet landing page, brochures, posters, banners, radio ads, bus ads, and TV ads

• Campaign’s collaborative team JP Marketing (advertising company) Richard Heath and Associates, Inc. Communications Division News and Public Information Office Division of Ratepayer Advocates Consumer Service and Information Division

Gold ADDY Award Winner

Campaign Elements• www.hellosavings.org and www.hellosavings.ca.gov

Campaign Elements• Collateral

1. brochures

2. displays

3. posters

4. banners

5. presentation

template

25

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Thank you!For Additional Information:

www.californialifeline.comwww.hellosavings.org

http://www.youtube.com/watch?v=PEyYA3mRmc8&list=UUoDV-8KP0YzIQ-hyu9t-GZQ&index=5&feature=plcp

Regular Agenda – Management Reports and Resolutions

Item #57 [11264] Executive Director Clanon Report----------------------------------------------------------------

Report on the California LifeLine Program’s “Hello, Savings!” Gold ADDY Award for Mixed Media at the Fresno Advertising Federation's 2012 ADDY Awards.

Regular Agenda – Management Reports and Resolutions

Item #58 [11320] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

June 7, 2012, at 9:00 a.m.in San Francisco, CA