June 3, 2014 Advice Letter 2914-E

Transcription

1 STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION SAN FRANCISCO, CA Edmund G. Brown Jr., Governor June 3, 2014 Advice Letter 2914-E Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company P O Box 800 Rosemead, CA Subject: Limited Deviation in SCE Schedule DA-CRS Method of Calculating Departing Load for LA County Sanitation District Dear Ms. Scott-Kakures: Advice Letter 2914-E is effective May 15, 2014 per Resolution E Sincerely, Edward F. Randolph, Director Energy Division

2 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: Southern California Edison Co. Date Utility Notified: 1/19/13 Utility No./Type: 338/Electric [X] to: Advice Letter No.: 2914-E Date AL filed: June 12, 2012 Fax No.: N/A Utility Contact Person: Darrah Morgan ED Staff Contact: Kathryn Auriemma Utility Phone No.: For Internal Purposes Only: Date Calendar Clerk Notified / / Date Commissioners/Advisors Notified / / [ ] INITIAL SUSPENSION (up to 120 DAYS) This is to notify that the above-indicated AL is suspended for up to 120 days beginning 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. [ ] Section 455 Hearing is Required - A Commission resolution may be required to address the advice letter. [ ] Advice Letter Requests a Commission Order [ ] Advice Letter Requires Staff Review Expected duration of initial suspension period: 120 days [ x ] 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 Kathryn Auriemma at (415) (kdw@cpuc.ca.gov). cc: Edward Randolph Jonathan Tom ED Tariff Unit * Note: reference Decision D , dated February 21, 2002, and Rule 7.5 in appendix A of D.O

3 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: Southern California Edison Co. Date Utility Notified: 7/15/13 Utility No./Type: 338/Electric [X] to: Advice Letter No.: 2914-E Date AL filed: June 12, 2012 Fax No.: N/A Utility Contact Person: Darrah Morgan ED Staff Contact: Kathryn Auriemma Utility Phone No.: For Internal Purposes Only: Date Calendar Clerk Notified / / Date Commissioners/Advisors Notified / / [X ] INITIAL SUSPENSION (up to 120 DAYS) This is to notify that the above-indicated AL is suspended for up to 120 days beginning July 15, 2013 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. [ ] Section 455 Hearing is Required - A Commission resolution may be required to address the advice letter. [ x] Advice Letter Requests a Commission Order [ ] Advice Letter Requires Staff Review Expected duration of initial suspension period: 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 Kathryn Auriemma at (415) (kdw@cpuc.ca.gov). cc: Edward Randolph Jonathan Tom ED Tariff Unit * 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 June 12, 2013 ADVICE 2914-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Limited Deviation in SCE Schedule DA-CRS Method of Calculating Departing Load for Los Angeles County Sanitation District In accordance with Decision (D.) , 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 The purpose of this advice letter is to request an addition to SCE s List of Contracts and Deviations of a limited deviation to the method used to calculate the amount of load subject to departing load charges under Schedule DA-CRS, Direct Access Cost Responsibility Surcharge, for certain accounts of the Los Angeles County Sanitation District (LACSD). SCE makes this request in response to a request from LACSD, pursuant to D BACKGROUND The LACSD Request and the Stanford Situation in D On February 12, 2013, the LACSD requested that SCE adjust the amount of Cost Responsibility Charge (CRS) it charges LACSD on two of its accounts. LACSD asserts that SCE should not charge CRS on the amount of load now provided via Direct Access (DA) that was once provided by generators that, under both D and California Public Utilities (PU) Code Section 300, are exempt from CRS. LACSD requested that SCE file a Tier 3 advice letter requesting the deviation, adjust the amount of CRS it charges LACSD going forward, and refund the amount of CRS LACSD paid to date on load previously served by self-generation. LACSD asserts that the accounts at issue are similarly situated to the account of Stanford University that was the subject of P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

5 ADVICE 2914-E (U 338-E) June 12, 2013 Application (A.) In D , the California Public Utilities Commission (Commission) granted a limited deviation to the method Pacific Gas and Electric Company (PG&E) used to calculate departing load charges for load served by DA that was previously served by a generator grandfathered under D Although Stanford applied for a modification of D , the Commission instead granted a limited deviation to the tariff in D The Commission anticipated that other similarly situated customers may request the same deviation, and authorized utilities to file a Tier 3 advice letter to resolve the issue if it arose. LACSD requested a limited deviation to the charges under Schedule DA-CRS, and in response SCE is filing this request pursuant to D In A , virtually the entire load of Stanford s main campus was supplied by a generating unit that began operation in PG&E provided backup service for the generator. In March 2011, pursuant to the rules governing the limited re-opening of DA service, Stanford began receiving DA. Pursuant to its tariff, PG&E increased the amount of departing load charges in direct relation to the increased load on the PG&E revenue meter. Stanford had no objection to paying CRS on the amount of backup power provided by PG&E, but objected to paying additional CRS on load that was never actually supplied by PG&E or the California Department of Water Resources (DWR) through DWR s procurement during the California energy crisis. The Commission determined in D that under these circumstances Stanford qualified for a deviation from PG&E s tariff and should only pay CRS on the load previously served by PG&E, calculated by averaging the quantity of power actually delivered to Stanford for the 36 months prior to the month it switched to DA service. Similarly, LACSD has replaced all or some of the load that was once supplied in two locations by generators exempt from all components of CRS under both D and PU Code Section 330 with DA service. SCE agrees that the LACSD and Stanford situations are similar, and similar relief is therefore appropriate under D History of the LACSD Accounts The LACSD has many accounts with SCE, but this advice letter only pertains to two accounts related to LACSD facilities in Carson and Valencia. In 1986, LACSD installed a 27.2 Megawatt (MW) combined-cycle biogas generator and a 5.5 MW steam turbine at the Carson facility to supply the entire connected load at the facility. In 1987, LACSD installed a 400 kilowatt (kw) digester gas fueled internal combustion engine to serve a portion of the connected load at the Valencia facility. SCE provided standby service to both facilities. In 1999, following the passage of Assembly Bill 1890, LACSD placed both the Carson and Valencia facilities on DA service, at which time standby/backup service was provided by an Energy Service Provider (ESP). In 2000, both the Carson and Valencia facilities returned to Bundled Portfolio Service with SCE. In October 2001, both facilities returned to DA service, with an ESP providing backup service. Beginning in October 2001, LACSD paid CRS on the amount of load formerly supplied by SCE

6 ADVICE 2914-E (U 338-E) June 12, 2013 that was currently supplied by an ESP based on the amount of electricity registered by SCE s revenue meter. LACSD did not dispute these CRS charges. The issue developed as a result of two changes in the generation serving the Carson and Valencia locations. First, in April 2008, the 5.5.MW steam turbine at Carson failed and became non-operative. By July 2008, LACSD s ESP began supplying additional power to cover the load previously provided by the 5.5 MW generator. As a result, the amount of electricity shown on SCE s revenue meter increased because SCE was now delivering the power supplied by the ESP that LACSD formerly generated on site. Under Schedule DA-CRS, SCE charged CRS based on the total amount of electricity registered on the meter. Second, in January 2009, LACSD de-commissioned the generator at Valencia, and an ESP began serving the entire load of the facility. As with Carson, when the amount of electricity delivered by SCE increased, so did the CRS charges. LACSD did not dispute these charges until February Calculating the CRS Amount Similar to Stanford s application (A ), LACSD requests both an adjustment of their CRS payments going forward and a refund of CRS charges already paid. It is not possible to disaggregate the current metered load into (1) the portion that was previously supplied by SCE and (2) the amount added when the generator failed or was taken out of service because both the previous amount (pre-generator failure) and the current amount vary by month. LACSD suggests that the DA-CRS payment, and the basis for the refund, be an average of the 36 months prior to the change in generation. The Commission approved this method to calculate the CRS payment for Stanford in D SCE agrees with LACSD s recommendation and requests to use the average CRS over the 36 months prior to the change in generation at LACSD s Carson and Valencia facilities as the amount of CRS to be charged going forward. Pursuant to SCE s Rule 17, Adjustment of Bills and Meter Tests, SCE will use this method to rebill LACSD for a period of three years from the date LACSD requested the deviation, February 12, Until the Commission approves this advice letter, SCE will continue to charge LACSD under the approved tariffs. Effective on the date of approval of this advice letter, SCE will begin charging LACSD s DA-CRS based on the average of the 36 months prior to the month in which LACSD s generation status changed. PROPOSED TARIFF CHANGES For the reasons explained above, SCE proposes a limited deviation to Schedule DA-CRS to allow LACSD s departing load charges for the Carson and Valencia facilities to be based on an average of consumption for the 36 months prior to the change in generation at the two facilities. SCE accepts LACSD s proposed values of 15,147 kwh per day for Carson and 46,466 kwh per day for Valencia. Per D , the generators at both Carson and Valencia are exempt from both the DWR Bond Charge and the Power Charge Indifference Adjustment (PCIA) components of CRS. PU Code

7 ADVICE 2914-E (U 338-E) June 12, 2013 Section 300 further clarifies that because the generators predate restructuring, there is no obligation to pay otherwise non-bypassable charges of any kind including the Competition Transition Charge (CTC), the Nuclear Decommissioning Charge (NDC), and the Public Purpose Program Charge (PPPC). Going forward, for its Carson and Valencia facilities, LACSD will pay DA-CRS based on the an average of the 36 months prior to the change in generation status for all charges shown in Schedule DA-CRS for a 2001 vintage non-continuous DA customer. In the future, if the situation evolves with respect to any new customer-owned generation for either Carson or Valencia, SCE would review the deviation to assess its continued appropriateness. 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 Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.3(5), this advice letter is submitted with a Tier 3 designation. EFFECTIVE DATE This advice filing will become effective upon Commission approval. 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 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:

8 ADVICE 2914-E (U 338-E) June 12, 2013 Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 2244 Walnut Grove Avenue 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 Rulemaking service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 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 Herb Moses at (626) or by electronic mail at Herbert.Moses@sce.com. Southern California Edison Company MSK:hm:sq Enclosures Megan Scott-Kakures

9 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) #: 2914-E Tier Designation: 3 Subject of AL: Limited Deviation in SCE Schedule DA-CRS Method of Calculating Departing Load for Los Angeles County Sanitation District Keywords (choose from CPUC listing): Direct Access, Surcharges AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: 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 Commission approval 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 : List of Contracts & Deviations and Table of Contents Pending advice letters that revise the same tariff sheets: 2861-E 1 Discuss in AL if more space is needed.

10 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 Ave., San Francisco, CA Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 2244 Walnut Grove Avenue 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)

11 Public Utilities Commission 2914-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E List of Contracts & Deviations Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1

12 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E List of Contracts and Deviations Sheet 7 Name and Location of Customer RATES RETAIL (Continued) Calif. Dept. of Correction and Rehabilitation Los Angeles County Sanitation Department Type or Class of Service Execution and Expiration Dates General ---- Termination of Service General (Continued) Commission Authorization Number and Date Advice 2738-E ---- Schedule No. Form Termination of Service or Change in Generation Advice 2914-E DA-CRS Most Comparable Regular Tariff Contract Difference Terms and Conditions provisions Deviation for Generation Per D (P) (P) (N) (N) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2914-E Megan Scott-Kakures Date Filed Jun 12, 2013 Decision Vice President Effective May 15, H11 Resolution E-4626

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 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) (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 2914-E Megan Scott-Kakures Date Filed Jun 12, 2013 Decision Vice President Effective May 15, H7 Resolution E-4626

14 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 9 (Continued) RATE SCHEDULES (Continued) Schedule No. Title of Sheet Cal. P.U.C. Sheet No. OTHER (Continued) GSN Envest SCE Equipment Service E NEM Net Energy Metering E E NEM-V Virtual Net Energy Metering for Multi-Tenant and Multi-Meter Properties E NMDL New Municipal Departing Load E E OBF OBF-2 On-Bill Financing Program E On-Bill Financing Program E OBMC Optional Binding Mandatory Curtailment E PC-TBS PCT Procurement Charge Transitional Bundled Service E Programmable Communicating Thermostat E PVS Experimental Photovoltaic Service E PVS-2 RES-BCT On-Grid Photovoltaic Service E Renewable Energy Self-Generation Bill Credit Transfer E E RF-E S Surcharge to Fund Public Utilities Commission Reimbursement Fee E Standby 500 kw and Below E SC Service Connection Charge E SLRP Scheduled Load Reduction Program E E SPSS Station Power Self-Supply E TMDL Transferred Municipal Departing Load E E UCLT Utility-Controlled Load Tests E WATER WI-FI-1 Water Agency Tariff for Eligible Renewables E Schedule WI-FI Pilot Wireless Fidelity Rate E WTR Wireless Technology Rate E LIST OF CONTRACTS AND DEVIATIONS LIST OF CONTRACTS AND DEVIATIONS E E (T) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2914-E Megan Scott-Kakures Date Filed Jun 12, 2013 Decision Vice President Effective May 15, H7 Resolution E-4626