SUBJECT: Establishment of the Local Capacity Requirements Products Balancing Account Pursuant to Decision

Transcription

1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA March 23, 2016 Advice Letter 3354-E Russell G. Worden Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA SUBJECT: Establishment of the Local Capacity Requirements Products Balancing Account Pursuant to Decision Dear Mr. Worden: Advice Letter 3354-E is effective as of January 27, Sincerely, Edward Randolph Director, Energy Division

2 Russell G. Worden Managing Director, State Regulatory Operations January 27, 2016 ADVICE 3354-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of the Local Capacity Requirements Products Balancing Account Pursuant to Decision In compliance with California Public Utilities Commission (Commission or CPUC) 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 Pursuant to Ordering Paragraph (OP) 3 of D , this advice letter establishes the Local Capacity Requirements Products Balancing Account (LCRPBA), Preliminary Statement Part NN, allowing SCE to record the cost of resources procured in the Local Capacity Requirements (LCR) Request For Offers (RFO). BACKGROUND On February 13, 2013, the Commission issued D and ordered SCE to procure between 1,400 and 1,800 Megawatts (MW) of electrical capacity in the Western LA Basin 1 to meet the identified long-term LCR by Subsequently, on March 13, 2014, the Commission issued D and ordered SCE to procure an additional 500 to 700 MW by 2021 to meet local capacity needs stemming from the retirement of the San Onofre Nuclear Generating Station (SONGS). The two decisions combined directed SCE to procure between 1,900 to 2,500 MW in the Western LA Basin and to procure minimum amounts of the specified resources, including Preferred Resources, Energy Storage, and Gas-Fired Generation. 1 The Western Los Angeles Basin is the West Los Angeles sub-area of the Los Angeles basin local reliability area. P.O. Box Rush Street Rosemead, California (626) Fax (626)

3 ADVICE 3354-E (U 338-E) January 27, 2016 On November 21, 2014, SCE filed Application (A.) seeking Commission approval of the 63 contracts selected through the LCR RFO process totaling almost 1,900 MW. The CPUC issued D , on November 24, 2015 approving all contracts except for the six NRG Distributed Generation (DG) contracts. The NRG Curtailment Solutions Demand Response (DR) contract was approved, subject to the condition that SCE file a Tier 1 Advice Letter within 45 days of the effective date of D amending the contract to exclude the use of behind the meter gas-fired generation. 2 In addition, OP 3 of D authorizes SCE to establish a LCR Balancing Account, which is a utility cost recovery mechanism for the LCR RFO resource costs. OP 2 specifies that SCE is to allocate costs associated with the approved contracts according to the methodology described in Chapter 8 of Exhibit SCE-1 and the March 27, 2015 Joint Memorandum of Understanding. Specifically, this methodology creates three subaccounts in the LCRPBA, one for each of the three rate components that the LCR resources costs will be recovered through: (1) the New System Generation (NSG) rate component; (2) the Distribution rate component; and (3) the Public Purpose Programs (PPP) Charge. On a monthly basis SCE will record the actual cost of these resources in their respective sub-accounts. (1) NSG Sub-Account The NSG sub-account will include the recorded cost related to the Gas-Fired Generation (GFG) and In Front Of the Meter Energy Storage (IFOM ES) resources. On a monthly basis the balance in the NSG sub-account of the LCRPBA will be transferred to the New System Generation Balancing Account (NSGBA). In the NSGBA, the cost of the New System Generation LCR-related costs and all other New System Generation costs will be balanced with the recorded New System Generation revenue each month. Any balance recorded in the NSGBA, either an over- or undercollection, is included in the New System Generation rates in the following year. (2) Distribution Sub-Account The Distribution sub-account will include the recorded cost related to the Demand Response and Behind The Meter Energy Storage 2 SCE filed Advice Letter 3339-E, Modifications to Southern California Edison Company s Local Capacity Requirements Demand Response Resource Purchase Agreement in Compliance with Decision , to modify the NRG Curtailment Solutions Demand Response contract.

4 ADVICE 3354-E (U 338-E) January 27, 2016 (BTM ES) resources. On a monthly basis the balance in the Distribution sub-account of the LCRPBA will be transferred to the distribution sub-account of the Base Revenue Requirement Balancing Account (BRRBA). In the distribution sub-account of the BRRBA, the cost of the Distribution LCR-related costs and all other distribution costs will be balanced with the recorded Distribution revenue each month. Any balance recorded in the distribution subaccount of the BRRBA, either an over- or under-collection, is included in the Distribution rate component in the following year. (2) PPP Sub-Account The PPP sub-account will include the recorded cost related to the Energy Efficiency (EE), Renewable Distributed Generation Behind the Meter (DG BTM), and Behind the Meter Energy Storage Permanent Load Shift (BTM PLS) resources. On a monthly basis the balance in the PPP sub-account of the LCRPBA will be transferred to the Public Purpose Programs Adjustment Mechanism (PPPAM). In the PPPAM, the cost of the PPP LCR-related costs and all other PPP costs will be balanced with the recorded PPP revenue each month. Any balance recorded in the PPPAM, either an over- or under collection, is included in the PPP rate component in the following year. In SCE s annual April 1 Energy Resource Recovery Account Review (ERRA) proceedings, SCE will include the recorded operation of the LCRPBA for Commission approval of the recorded amounts and to ensure that the entries made in the LCRPBA are stated correctly and are consistent with Commision decision(s). In SCE s annual May 1 ERRA Forecast proceedings, SCE will include a forecast of the costs of the resources procured through the LCR RFO to be included in rates in the following year, consistent with how SCE recovers its forecast of fuel and purchased power expenses.d PROPOSED TARIFF CHANGES As discussed above, and in accordance with OP 3 of D , SCE is establishing Preliminary Statement Part NN, LCRPBA, to record the costs of resources procured in the LCR RFO for the Western Los Angeles Basin. In addition, SCE herein modifies: (1) Preliminary Statement RR, NSGBA, to include the monthly transfer of the LCRPBA

5 ADVICE 3354-E (U 338-E) January 27, 2016 NSG sub-account balance; (2) Preliminary Statement YY, BRRBA, to include the monthly transfer of the LCRPBA Distribution sub-account balance; and (3) Preliminary Statement FF, PPPAM, to include the monthly transfer of the LCRPBA PPP subaccount balance. TIER DESIGNATION Pursuant to GO 96-B, Energy Industry Rule 5.1, this Advice Letter is submitted with a Tier 1 designation. EFFECTIVE DATE SCE requests that this advice filing become effective January 27, 2016, the date filed. NOTICE Anyone wishing to protest this advice letter may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than February 16, 2016 which is 20 days after the date of this advice letter. Protests should be mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue, 4 th Floor San Francisco, California Facsimile: (415) EDTariffUnit@cpuc.ca.gov Copies of protests should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Russell G Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com

6 ADVICE 3354-E (U 338-E) January 27, 2016 Michael R. Hoover Director, State Regulatory 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 General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B, A 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 CPUC 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 CPUC, log on to SCE s web site at For questions, please contact Kimwuana Blebu at (626) or by electronic mail at Kimwuana.Blebu@sce.com. Southern California Edison Company RGW:kb:jm Enclosures /s/ Russell G. Worden Russell G. Worden

7 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company (U 338-E) 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) #: 3354-E Tier Designation: 1 Subject of AL: Establishment of the Local Capacity Requirements Products Balancing Account Pursuant to Decision Keywords (choose from CPUC listing): Compliance, Balance Account AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 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: 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: 1/27/16 No. of tariff sheets: -4- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): 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 : Pending advice letters that revise the same tariff sheets: Preliminary Statement Part NN and Table of Contents None 1 Discuss in AL if more space is needed.

8 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 Avenue San Francisco, California Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

9 Public Utilities Commission 3354-E Attachment A Cal. P.U.C. Sheet No. Original E Original E Title of Sheet Preliminary Statement Part NN Preliminary Statement Part NN Cancelling Cal. P.U.C. Sheet No. Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1

10 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. Sheet 1 NN. Local Capacity Requirements Products Balancing Account (LCRPBA) 1. Purpose The purpose of the Local Capacity Requirements Products Balancing Account (LCRPBA) is to record Local Capacity Requirements (LCR) Request for Offers (RFO) resource costs pursuant to Decision The LCR RFO resource costs are to be tracked separately in the (1) New System Generation (NSG); (2) Distribution; and (3) Public Purpose Program (PPP) sub-accounts in the LCRPBA. 2. Operation of the LCRPBA The LCRPBA shall consist of three sub-accounts: a. NSG sub-account; b. Distribution sub-account; and c. PPP sub-account: a. NSG Sub-Account Entries to the NSG sub-account shall be determined as follows: (1) A debit entry equal to the recorded cost of the Gas-Fired Generation (GFG) and In-Front Of-the-Meter Energy Storage (IFOM ES) resources. (2) The NSG sub-account balance shall be transferred on a monthly basis to the New System Generation Balancing Account (NSGBA). Interest expense shall not be recorded in the NSG sub-account since the monthly activity is transferred to the NSGBA. b. Distribution Sub-Account Entries to the Distribution sub-account shall be determined as follows: (1) A debit entry equal to the recorded cost of the Demand Response and Behind-the-Meter Energy Storage (BTM ES) resources. (2) The Distribution sub-account balance shall be transferred on a monthly basis to the distribution sub-account of the Base Revenue Requirement Balancing Account (BRRBA) Interest expense shall not be recorded in the Distribution sub-account since the monthly activity is transferred to the distribution sub-account of the BRRBA. (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3354-E R.O. Nichols Date Filed Jan 27, 2016 Decision Senior Vice President Effective Jan 27, H9 Resolution

11 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. Sheet 2 (Continued) NN. Local Capacity Requirements Products Balancing Account (LCRPBA) (Continued) 2. Operation of the LCRPBA (Continued) c. PPP Sub-Account Entries to the PPP Sub-Account shall be determined as follows: (1) A debit entry equal to the recorded cost of the Energy Efficiency (EE), Renewable Distributed Generation Behind-the-Meter (DG BTM), and Behind the-meter Energy Storage Permanent Load Shift (BTM ES PLS) resources. (2) The PPP sub-account balance shall be transferred on a monthly basis to the Public Purpose Programs Adjustment Mechanism (PPPAM). Interest expense shall not be recorded in the PPP sub-account since the monthly activity is transferred to the PPPAM. 3. Review Procedures In the annual ERRA Review proceedings, SCE will include the recorded operation of the LCRPBA for Commission approval of the recorded amounts and to ensure that the entries made in the LCRPBA are stated correctly and are consistent with Commission decision(s). (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3354-E R.O. Nichols Date Filed Jan 27, 2016 Decision Senior Vice President Effective Jan 27, C8 Resolution

12 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) 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 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 3354-E R.O. Nichols Date Filed Jan 27, 2016 Decision Senior Vice President Effective Jan 27, H6 Resolution

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 2 (Continued) PRELIMINARY STATEMENT: (Continued) Cal. P.U.C. Sheet No. Q. Edison SmartConnect Opt-Out Balancing Account E R. Historical Procurement Charge Balancing Account E S. Procurement Energy Efficiency Balancing Account E T. Electric and Magnetic Fields Measurement Program E U. California Solar Initiative Program Balancing Account E V. Hazardous Substance Cleanup Cost Recovery Mechanism E E W. Departing Load and Customer Generation Departing Load Cost Responsibility E E E X. NOT IN USE... -E Y. Demand Response Program Balancing Account E E Z. Songs 2&3 Steam Generator Replacement Balancing Account E E AA. California Alternate Rates for Energy (CARE) Balancing Account E BB. Greenhouse Gas Revenue Balancing Account E CC. Statewide Marketing, Education & Outreach Balancing Account (SME&OBA) E E DD. Cost Of Capital Trigger Mechanism E EE. Electric Deferred Refund Account E FF. Public Purpose Programs Adjustment Mechanism E E GG. Not In Use... -E HH. Low Income Energy Efficiency Program Adjustment Mechanism E II. Bond Charge Balancing Account E JJ. Direct Access Cost Responsibility Surcharge Tracking Account E KK. Not In Use... -E LL. Reliability Investment Incentive Mechanism E MM. Mobilehome Park Master Meter Balancing Account (MMMBA) E NN. Local Capacity Requirements Products Balancing Account E OO. Pension Costs Balancing Account E PP. Post Employment Benefits Other Than Pensions Costs Balancing Account E QQ. Not In Use... -E (T) (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3354-E R.O. Nichols Date Filed Jan 27, 2016 Decision Senior Vice President Effective Jan 27, H8 Resolution