HomeMy WebLinkAbout12/12/2017 Item 1, Codron (2)
Christian, Kevin
To:Hermann, Greg
Cc:Gallagher, Carrie
Subject:RE: CCA - New one year delay proposed by CPUC today via Draft Resolution E-4907
From: Codron, Michael
Sent: Saturday, December 09, 2017 10:53 AM
To: Department Heads <DepartmentHeads@slocity.org>
Cc: Hermann, Greg <GHermann@slocity.org>; Fowler, Xzandrea <XFowler@slocity.org>; Vereschagin, Cara
<CVereschagin@slocity.org>; Ansolabehere, Jon <JAnsolabehere@slocity.org>; Eric Veium (eric@slocleanenergy.org)
<eric@slocleanenergy.org>
Subject: FW: CCA - New one year delay proposed by CPUC today via Draft Resolution E-4907
Mayor and Council,
I’m forwarding the information below and attached that was originally distributed by Dawn Weisz, CEO of Marin
Clean Energy and President of the statewide CCA lobbying association CalCCA. This is regarding a major
proposal from the CPUC that would apply to new CCA programs.
Staff will evaluate this information in more detail and be prepared to respond to questions about how this would
apply to, or change the alternatives available to, the City of San Luis Obispo with respect to joining or starting a
new program.
We’ll turn this into Agenda Correspondence first thing Monday so the new info is available to the public.
Thank you, -Michael
Michael Codron
Director of Community Development
Community Development
919 Palm Street, San Luis Obispo, CA 93401-3249
E mcodron@slocity.org
T 805.781.7187
C 805.540.0767
slocity.org
Bcc: City Council
From: Cregar, Jennifer \[mailto:jcregar@co.santa-barbara.ca.us\]
Sent: Saturday, December 9, 2017 10:00 AM
To: Hermann, Greg <GHermann@slocity.org>; Codron, Michael <mcodron@slocity.org>
Subject: Fw: CCA - New one year delay proposed by CPUC today via Draft Resolution E-4907
Michael and Greg,
1
Please see below and attached for updates from Dawn Weisz, CEO of MCE and President of the statewide CCA
lobbying association CalCCA, regarding a major proposal from the CPUC. In short, the CPUC is trying to fast-
track changes to the CCA formation and expansion process, most notably requiring at least a full calendar year
between implementation plan submission and service start date for a new CCA or expansions of existing CCAs.
You would be affected whether you start a new CCA or join MBCP. I'd guess you're likely looking at well into
2019 before you could start service in either case. The CPUC plans to vote on the resolution on 1/1/18.
Best,
Jen
From: Dawn Weisz <
Sent: Friday, December 8, 2017 6:19 PM
To: Cregar, Jennifer; msears@cityofdavis.org;
tprill@sanjacintoca.us;
hmartinez@cordobacorp.com; cdefalco@cityoflancasterca.org
Cc: Beth Vaughan; Hilary
Subject: CCA - New one year delay proposed by CPUC today via Draft Resolution E-4907
CalCCA Affiliate Members,
I wanted to make you aware of the resolution (see below and attached) released today, which proposes to expand CPUC
oversight over CCAs and impose a one year delay on new CCAs or CCA expansions where implementation plans have not
been filed as of Dec. 8, 2017, and a two year delay for programs that do not file implementation plans by Dec. 31, 2017.
It also imposes new requirements regarding the start-date of CCA programs which impact economics and other
timelines.
th
The draft resolution is set to be voted out by the CPUC on Jan. 11. There are significant due process concerns with this
draft resolution as a factual record has not been established and there has been no opportunity for input from the
public or interested parties. The CalCCA regulatory team will be discussing our response on Monday and potential
actions include:
Requesting Ex. Parte meetings: Affiliate and Operational members can request meetings with each Commissioners
th
(and/or their staff) and request that they be held prior to Jan. 11. These meeting would be for CCA elected officials (or
staff) to express concerns and request a ‘no’ vote on the resolution. The template to request these meetings is attached,
and draft talking points to use in the meetings are also attached.
Prepare a response: Responses are due by 12/29. The CalCCA regulatory committee will discuss potentially using
external counsel to draft comments and then all interested parties can sign on. Let me/Hilary know if you want to
participate and if you are able to cost-share.
th
January 11 CPUC meeting: CCA elected officials, especially for new CCA efforts, could be encouraged to participate in
person at the CPUC meeting to comment on how this would impact their agency, how much their local government has
spent so far to develop their CCA program, and how this resolution undermines local governance of CCA programs.
Hilary has offered to holding a CalCCA regulatory call for affiliate members on Thursday of next week. Let Hilary know if
you would be interested in participating. Also, please let Hilary know by Monday at 1pm if your agency would be willing
to share the cost of preparing and filing comments.
2
If you have questions, feel free to reach out.
Thanks,
Dawn
Dawn Weisz
California Community Choice Association
415-464-6020
www.cal-cca.org
From: Dawn Weisz \[mailto:dweisz@mcecleanenergy.org\]
Sent: Friday, December 08, 2017 10:32 AM
To: Benjamin Cárdenas <bcardenas@pico-rivera.org>; Bill Carnahan <carnahanconsulting@gmail.com>; Cathy DeFalco
C.P.M. <cdefalco@cityoflancasterca.org>; Dawn Weisz <dweisz@mcecleanenergy.org>; Don Eckert
<Don.Eckert@svcleanenergy.org>; Geof Syphers <gsyphers@sonomacleanpower.org>; Hale, Barbara
<BHale@sfwater.org>; Janis Pepper, P.E. <jpepper@peninsulacleanenergy.com>; Jenine Windeshausen
<JWindesh@placer.ca.gov>; Joseph Moon <JMoon@applevalley.org>; Lori.Mitchell@sanjoseca.gov; Matthew Marshall
<mmarshall@redwoodenergy.org>; Nick Chaset <nchaset@ebce.org>; Tom Habashi
<tom.habashi@mbcommunitypower.org>
Cc: Beth Vaughan <beth@cal-cca.org>; Hilary <hilary.staver@svcleanenergy.org>
Subject: FW: Draft Resolution E-4907 (Re: Registration Process for Community Choice Aggregators)
CalCCA Board,
I am passing along a draft resolution that was just released by Energy Division of the CPUC this morning. This proposed
resolution would impose very concerning requirements on CCAs, and would have impacts on start dates and other key
elements of CCA implementation.
Specifically, the Commission is proposing, VIA RESOLUTION (not via an existing proceeding or decision) to require CCAs
to submit to a process that includes:
a timeline for submission of Implementation Plans;
a requirement to “meet and confer” between the CCA and the incumbent utility that can be triggered by either
the CCA or the utility;
a registration packet including a CCA’s service agreement and bond; and
a Commission authorized date to begin service (i.e. requiring January 1 start date over a year after filing a plan).
This information is being circulated within the Regulatory Committee for analysis and potential next steps. I just wanted
to make sure you were all aware as this is a significant and concerning development.
Dawn
Dawn Weisz
Chief Executive Officer, MCE
1125 Tamalpais Ave.
San Rafael, CA 94960
415.464.6020 | dweisz@mceCleanEnergy.org
mceCleanEnergy.org
-----------------------------------------------
Subject: Draft Resolution E-4907 (Re: Registration Process for Community Choice Aggregators)
3
Parties to Draft Resolution E-4907 (Commission’s Own Initiative):
Attached is Draft Resolution E-4907, currently scheduled to appear on the January 11, 2018, Commission Meeting
Agenda.
Comments may be submitted according to the attached Comment Letter.
Sincerely,
CPUC
Maria Salinas
Energy Division, Tariff Unit
505 Van Ness Avenue
San Francisco, CA 94102
MCE is committed to protecting customer privacy. Learn more at: https://www.mceCleanEnergy.org/privacy/
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Page 1 of 4
STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
December 8, 2017 Agenda ID #16190
RESOLUTION E-4907
January 11, 2017
TO: SAN DIEGO GAS AND ELECTRIC COMPANY, PACIFIC GAS AND ELECTRIC
COMPANY, AND SOUTHERN CALIFORNIA EDISON COMPANY AND OTHER
INTERESTED PARTIES:
Service Lists: R.03-10-003, R.17-06-026, R.17-09-020, and R.16-02-007.
Enclosed is Draft Resolution E-4907 of the Energy Division, issued on the Commission’s own
initiative. It will appear on the agenda at the next Commission meeting, which is at least 30
days after the date of this letter. The Commission may vote on this Resolution at that time or it
may postpone a vote until a later meeting. When the Commission votes on a draft Resolution,
it may adopt all or part of it as written, amend, modify or set it aside and prepare a different
Resolution. Only when the Commission acts does the Resolution become binding on the
parties.
Parties may submit comments on the draft Resolution. All comments on the Draft Resolution
must be received by the Energy Division by December 29, 2017.
An original and two copies of the comments, along with a certificate of service, shall be sent
via email and hard copy US mail to:
Energy Division
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Email: edtariffunit@cpuc.ca.gov
Fax: 415-703-2200
Copies of the comments shall be submitted in electronic format to:
Suzanne Casazza
Public Utilities Regulatory Analyst
Energy Division
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Suzanne.Casazza@cpuc.ca.gov
Jonathan Tom
Program and Project Supervisor
Energy Division
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Jonathan.Tom@cpuc.ca.gov
Page 2 of 4
Those submitting comments on the Draft Resolution must serve their comments on the entire
service list attached to the draft Resolution and the Director of the Energy Division on the
same date that the comments are submitted to the Energy Division.
Comments shall be limited to fifteen pages in length and should list the recommended changes
to the Draft Resolution.
Comments shall focus on factual, legal or technical errors in the proposed Draft Resolution.
Comments that merely reargue positions taken in the advice letter or protests will be accorded
no weight and are not to be submitted.
Replies to comments will not be accepted.
Sincerely,
/s/ Jonathan Tom
Jonathan Tom
Program and Project Supervisor
Energy Division
Enclosures:
Certificate of Service
Service Lists
Page 3 of 4
CERTIFICATE OF SERVICE
I certify that I have by mail this day served a true copy of Draft Resolution E-4907 on all
parties or their attorneys as shown on the attached service list.
Dated December 8, 2017; at San Francisco, California.
/s/ Maria Salinas
Maria Salinas
NOTICE
Parties should notify the Public Utilities Commission
Process Office, 505 Van Ness Avenue, San Francisco, CA 94102,
of any change of address to ensure that they continue to receive documents.
You must indicate the Resolution number on the
service list on which your name appears.
Page 4 of 4
SERVICE LIST
Parties: San Diego Gas and Electric Company, Pacific Gas and Electric Company, and Southern
California Edison Company, and other interested parties.
Service Lists: R.03-10-003, R.17-06-026, R.17-09-020, and R.16-02-007.
Erik Jacobson
Director, Regulatory Relations
Pacific Gas and Electric Company
77 Beale Street, Mail Code B13U
P.O. Box 770000
San Francisco, CA 94177
E-mail: PGETariffs@pge.com
Russell G. Worden
Managing Director, State Regulatory Operations
Southern California Edison Company
8631 Rush Street
Rosemead, California 91770
E-mail: AdviceTariffManager@sce.com
Megan Caulson
Tariff Unit Manager
San Diego Gas & Electric
8330 Century Park Ct., CP 32F
San Francisco, CA 94102 San Diego, CA 92123
Email: MCaulson@semprautilities.com
DRAFT
200492306 1
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Agenda ID #16190
ENERGY DIVISION RESOLUTION E-4907
January 11, 2017
R E S O L U T I O N
Resolution E-4907. Registration Process for Community Choice
Aggregators.
PROPOSED OUTCOME:
This resolution would publish and implement a registration
process for Community Choice Aggregators.
SAFETY CONSIDERATIONS:
There is no impact on safety.
ESTIMATED COST:
Potential unquantifiable bundled ratepayer savings due to
elimination of cost shifting of resource adequacy costs.
By the Commission’s own initiative.
__________________________________________________________
SUMMARY
The Commission through this Resolution proposes an informal process of
review of Community Choice Aggregation (CCA) Implementation Plans
pursuant to the requirements and directives of Public Utilities Code Section
366.21 and Decision (D.) 05-12-041. This process of review will coordinate with
the timeline of the mandatory forecast filings of the Commission’s Resource
Adequacy program to ensure that newly launched and expanding CCAs
comply with Resource Adequacy requirements, as established by Section 380,
before they serve customers.
1 All further references are to the Public Utilities Code unless otherwise specified.
Resolution E-4907 / SC8 DRAFT January 11, 2018
2
This Resolution will require Community Choice Aggregators (CCAs) to submit
to a process that includes a timeline for submission of Implementation Plans; a
requirement to “meet and confer” between the CCA and the incumbent utility
that can be triggered by either the CCA or the utility; a registration packet
including a CCA’s service agreement and bond; and a Commission authorized
date to begin service.
This Resolution, in part, is responsive to the directive of D.05-12-041 instructing
the Executive Director to publish steps for the submission of Implementation
Plans, and addresses the current rapid growth of CCA programs. The filing
deadlines in this Resolution are intended to coordinate with the timeline for
mandatory forecast filings in the Resource Adequacy program.
BACKGROUND
Overview of Community Choice Aggregation
In 2002 the State Legislature enacted Assembly Bill (AB) 117 (codified at
Section 366.2), authorizing the creation of Community Choice Aggregators
(CCAs). The Commission implemented the provisions of AB 117 in D.04-
12-046, and D.05-12-041, among other Decisions.
D.05-12-041 directed the Executive Director to prepare and publish
instructions for CCAs and utilities which would provide a forum for the
CCA and the utility to understand the CCA’s implementation plans and to
assure that the CCA is able to comply with utility tariffs. The instructions
should include a timeline and descriptions of the procedures for
submitting and certifying receipt of the Implementation Plan, notice to
customers, and notice to CCAs of the appropriate Cost Responsibility
Surcharge (CRS) and registration of CCAs.
After D.05-12-041, no CCA came into formation until 2010 with the launch
of Marin Clean Energy. From 2010 to 2015, two CCAs launched serving
approximately 135,000 customer accounts statewide. From 2016 to 2017,
CCA formation accelerated and 12 more communities launched or
submitted CCA Implementation Plans to the Commission. As a result of
this rapid growth in CCAs, it is appropriate now to address the directives
of D.05-12-041 to create and publish processes for CCA implementation
and registration.
Resolution E-4907 / SC8 DRAFT January 11, 2018
3
Overview of CCA Implementation Plan Requirements
Section 366.2 authorizes the aggregation of electric loads by CCAs and
establishes the broad requirements for implementing a CCA program.
Section 366.2 grants the Commission authority over CCA implementation,
and includes directives on the policy requirements of CCA programs,
necessary implementation documents, timing requirements and deadlines
for CCA implementation.
Section 366.2(c)(8) establishes the authority of the Commission to designate a
CCA’s start date with consideration of the impact on the electrical corporation’s
annual procurement:
No entity proposing community choice aggregation shall act to
furnish electricity to electricity consumers within its boundaries
until the commission determines the cost recovery that must be
paid by the customers of that proposed community choice
aggregation program, and provided for in subdivisions (d), (e),
and (f). The commission shall designate the earliest possible
effective date for implementation of a community choice
aggregation program, taking into consideration the impact on
any annual procurement plan of the electrical corporation that
has been approved by the commission.2
Policy Requirements for CCAs
Any CCA program must provide for universal access, reliability, equitable
treatment of all classes of customers, and fulfill requirements established by state
law or by the commission concerning aggregated service.3
Section 366.2 (c) (4) states:
2 Section 366.2(c)(8).
3 Section 366.2(c)(4).
Resolution E-4907 / SC8 DRAFT January 11, 2018
4
A community choice aggregator establishing electrical load
aggregation shall prepare a statement of intent with the
implementation plan. Any community choice load aggregation
established pursuant to this section shall provide for the
following:
(A) Universal access.
(B) Reliability.
(C) Equitable treatment of all classes of customers.
(D) Any requirements established by state law or by the
commission concerning aggregated service, including
those rules adopted by the commission pursuant to
paragraph (3) of subdivision (b) of Section 8341 for the
application of the greenhouse gases emission performance
standard to community choice aggregators.
Additionally, the implementation of a CCA program “shall not result in a
shifting of costs between the customers of the community choice aggregator and
the bundled service customers of an electrical corporation.”4
Implementation Documents and Requirements
Section 366.2 requires that CCAs submit an Implementation Plan and a
Statement of Intent to the Commission and sets forth seven elements that
Implementation Plans, and any subsequent changes to implementation
plans, must contain.5 Section 394.25(e) also requires that “an electric
4 Section 366.2 (a)(4).
5 Section 366.2(c)(3) requires that Implementation Plans and any subsequent changes to
implementation plans must be considered and adopted at a duly noticed public hearing and
must contain all the following: (A)An organizational structure of the program, its operations,
and its funding.(B)Ratesetting and other costs to participants, (C)Provisions for disclosure and
due process in setting rates and allocating costs among participants. (D)The methods for
entering and terminating agreements with other entities. (E)The rights and responsibilities of
program participants, including, but not limited to, consumer protection procedures, credit
issues, and shutoff procedures. (F)Termination of the program. (G)A description of the third
Resolution E-4907 / SC8 DRAFT January 11, 2018
5
service provider or community choice aggregator shall post a bond or
demonstrate insurance sufficient to cover those reentry fees” in the event
of an involuntary return of CCA customers back to bundled service.6
Timing and Deadlines
The Public Utilities Code establishes requirements that direct the Commission
how and when to respond to Implementation Plan filings. Within 10 days of an
Implementation Plan filing, the Commission must notify the respective electrical
cooperation of the filing.7 Additionally, within 90 days of the filing of an
Implementation Plan, the commission must “certify that it has received the plan”
as well as provide the CCA with its findings regarding cost recovery.8
Finally, the CCA “shall register with the Commission, which may require
additional information to ensure compliance with basic consumer protection
rules and other procedural matters.”9
Overview of CCA Resource Adequacy Requirements
As more CCAs launch, it is important to consider how a registration process
interacts with a CCA’s compliance with its Resource Adequacy requirements.
parties that will be supplying electricity under the program, including, but not limited to,
information about financial, technical, and operational capabilities.
6 Regarding the bond requirement in Section 394.25(e), in 2007 the Commission established in
Resolution E-4133 an interim bond amount of $100,000. Currently the Commission is examining
the permanent CCA bond calculation methodology in R.03-10-003.
7 Section 366.2(c)(7) states:
Within 90 days after the community choice aggregator establishing load aggregation
files its implementation plan, the commission shall certify that it has received the
implementation plan, including any additional information necessary to determine a
cost-recovery mechanism. After certification of receipt of the implementation plan and
any additional information requested, the commission shall then provide the
community choice aggregator with its findings regarding any cost recovery that must be
paid by customers of the community choice aggregator to prevent a shifting of costs as
provided for in subdivisions (d), (e), and (f).
8 Section 366.2(c)(7).
9 Section 366.2(c)(15).
Resolution E-4907 / SC8 DRAFT January 11, 2018
6
All Load-Serving Entities (LSEs) are subject to Resource Adequacy (RA)
requirements pursuant to Section 380. Section 380(k) defines LSEs to include
CCAs. Additionally, D.05-12-041 in Conclusion of Law 19 states that “The
utilities will not procure power on behalf of CCA customers as part of their
resource adequacy planning.”
The Commission in D.04-10-035 adopted a protocol which required LSEs to
submit load forecasts using their best estimates of future customers and their
loads. The Commission established a preliminary load forecast submission
timeline in D.05-10-042.10
There are two mandatory annual load forecast deadlines that an LSE must
comply with in order to receive an annual RA obligation responsibility for the
following year.11 First, an LSE must file a preliminary load forecast by mid-April
for the following calendar year. An LSE then must file a revised forecast in
August.12 The August forecast was intended to refine and improve the accuracy
of April forecast.13
The timeline of RA load forecast submissions has practical implications for newly
forming CCAs and expanding CCAs. If an existing or pre-operational CCA does
not submit an annual load forecast, they are not allocated a year-ahead RA
obligation for the following year. In this scenario, the incumbent utility remains
responsible for that load and procures RA for those customers, even if those
10 D.05-10-042, page 83.
11 D.04-10-035 adopted a protocol whereby LSEs are required to submit load forecasts using
their best estimates of future customers and their loads. D.05-10-042 at page 83 specified the
preliminary load forecast submission timeline and set April 15 as the date for the submission of
preliminary load forecasts. D.11-06-022 at page 38 modified the year-ahead forecast timeline to
include optional revisions to be submitted by Aug. 19th of each year. D.17-06-027 ordered that
the revised August forecast be mandatory.
12 Although D.11-06-022 modified the year-ahead forecast timeline to include optional revisions
to be submitted by Aug. 19th of each year, later D.17-06-027 (OP 7) ordered that the revised
August forecast be mandatory. The exact date of the August deadline varies by year.
13 D.17-06-027, Finding of Fact 11.
Resolution E-4907 / SC8 DRAFT January 11, 2018
7
customers are about to be served by a CCA. This scenario is most likely to occur
if a CCA launches or expands service to customers (or additional customers in
the case of an existing, yet expanding CCA) after the RA annual load forecast
deadlines without filing an annual load forecast.
As a result, the utilities incur short-term power purchase costs for the customers
of CCAs in their launch or expansion year. Utilities procuring for CCAs in their
first launch or expansion year creates a cost shifting challenge. D.11-12-018
excluded power purchase transactions less than a year in term from the total
portfolio calculation of the Power Charge Indifference Adjustment (PCIA).
Consequently, Resource Adequacy contracts of over one year are captured by the
PCIA, but Resource Adequacy contracts of less than one year are not captured by
the PCIA. Therefore, such costs are borne by bundled customers, potentially
resulting in millions of dollars annually of stranded costs and potentially in
contravention of the indifference requirement of Section 366.2
Energy Division issued data requests to PG&E confirming the existence of
stranded costs. Responses to these data requests were confidential because of the
market-sensitive information they contain.
However, public information illustrates the scale of load migration happening in
the year-ahead RA program. Existing and new CCAs that were not a part of the
year ahead 2018 RA process but plan to serve load in 2018 would have been
allocated a System Peak RA requirement of approximately 3,616 MW and a local
RA requirement of approximately 1,793 MW. These year-ahead RA
requirements were met by the utilities that currently serve these
customers. Some of these costs are recovered by the PCIA, however, any
contracts less than one year are not captured by the PCIA and are borne by
remaining bundled customers. Due to the confidentiality of utility’s market
position, the proportion of those contracts that are less than one year cannot be
disclosed publicly.
In addition, if the California Independent System Operator (CAISO) procures
back-stop capacity through its capacity procurement mechanism (CPM), it
appears based on the CAISO’s tariff language these costs will be allocated only to
those LSEs that exist at the time of the designation (annual designations would
Resolution E-4907 / SC8 DRAFT January 11, 2018
8
occur in December, before the compliance year). It is not yet clear if the PCIA
addresses this potential cost-shifting issue.
DISCUSSION
D.05-12-041 ordered the Executive Director to develop and publish two distinct
processes in Ordering Paragraphs (OP) 8 and 10 of that Decision.
D.05-12-041 Ordering Paragraph 8 Implementation
Ordering Paragraph 8 requires the Executive Director to develop and publish
the steps of an informal process of review that provides a forum for the CCA
and the utility to understand the CCA’s Implementation Plans and assures that
the CCA is able to comply with the utility’s tariffs.
The goal of this “forum” is to “facilitate the smoother operation of the CCA
where its policies, practices, and decisions may affect the utility and its
customers.”14 The operation and launch of a CCA program inherently requires
logistical coordination between the utility and the CCA, and many CCA-utility
partnerships must engage in these kinds of information-sharing discussions to
facilitate smooth transitions to CCA service.
In order to comply with the directive of Ordering Paragraph 8, at the request of
either the CCA or the utility, the parties must “meet and confer” as soon as
reasonably practical. If the first attempts at resolution are not successful, the
parties are required to meet in person. Should the parties be unable to reach
consensus after the in-person meeting(s), either party may request that Energy
Division assist by sponsoring a moderated in-person discussion between the
parties. Such a request should come in the form of a request to the Director of
Energy Division explaining the general nature of any unresolved issues
regarding CCA compliance with utility tariffs. During the “meet and confer”
parties shall discuss the contents of the CCA’s Implementation Plan and any
relevant issues with compliance with utility tariffs.
14 OP 8, D.05-12-041.
Resolution E-4907 / SC8 DRAFT January 11, 2018
9
D.05-12-041 Ordering Paragraph 10 Implementation
Ordering Paragraph 10 of D.05-12-041 requires the Executive Director to
prepare and publish instructions for CCAs and utilities that includes a
timeline and describes the procedures for submitting and certifying receipt of
the Implementation Plan, notice to customers, notice to CCAs of the
appropriate Cost Responsibility Surcharges (CRS), and registration of CCAs.
Adopted Timeline
Appendices A and B of this Resolution include a timeline of the CCA registration
process, including the timeline adopted by this Resolution.
The Prior Timeline in Appendix B reflects the current practice of CCA
registration. The statutory deadlines in the Prior Timeline were established in
Section 366.2. However, several milestones in the Registration process did not
have deadlines defined by statute. These milestones are represented as
“undefined” in the Prior Timeline. D.12-05.041 included an illustrative
registration timeline based on statutory deadlines associated with CCA
Implementation.15
The Adopted Timeline modifies the Prior Timeline and the Illustrative Timeline
(proposed in D.05-12-041 Attachment D) in several respects. First, the Adopted
Timeline includes a deadline by which Implementation Plans must be received in
order for CCAs to serve new load beginning January 1 of the following year. The
goal of this requirement is to assist the proposed CCA in securing the
certification and registration within enough time to file its preliminary load
forecast by mid-April in order to serve load the following calendar year.
Second, the Adopted Timeline includes the Meet-and-Confer option for the CCA
and the utility to discuss how the CCA will conform its operations to the utility’s
tariff requirements. Third, the Adopted Timeline includes the deadlines for
submission of CCA RA load forecasts in the year prior to a CCA beginning to
15 D.05-12-041, Attachment D.
Resolution E-4907 / SC8 DRAFT January 11, 2018
10
serve load. Fourth, the Adopted Timeline includes a deadline by which the CCA
must submit its Registration Packet and receive confirmation of registration.
In order to coordinate the launch of a new or expanding CCA with the RA
requirements, the Implementation Plan and Statement of Intent must be
submitted to the Commission on or before January 1 in order to serve load in the
following year.16
This requirement is authorized by Section 366.2(c)(4), which requires a CCA to
“provide for universal access, reliability, equitable treatment of all classes of
customers, and any requirements established by state law or by the
commission concerning aggregated service.”17 Additionally, Load-Serving
Entities, including CCAs, must comply with RA requirements pursuant to
Section 380(a). Current RA rules require all LSEs to file an annual load forecast if
they plan to serve load in the following year. Additionally, Section 366.2(c)(8)
also supports this action and compels the Commission to “designate the earliest
possible effective date for implementation of a community choice aggregation
program, taking into consideration the impact on any annual procurement plan
of the electrical corporation that has been approved by the commission.”
Thus, in order to comply with the year-ahead RA process, Implementation Plans,
including Implementation Plans of an existing CCA that expands its territory,
must be received by January 1 in order to serve load in the following year.
CCAs Forming in Small and Multi-Jurisdictional Utility Territories
Should a CCA form in a Small and Multi-Jurisdictional Utility (SMJU) territory,
various procedural, cost-shifting, and other potential issues will be presented.
Those issues are not being addressed in this Resolution, but the Commission
expects to address these issues in an as yet determined forum.
Procedural Components for CCA Implementation Plans
16 For example, a new or expanding CCA intending to serve new load in 2019 must submit its
Implementation Plan on or before January 1, 2018.
17 Section 366.2(c)(4), emphasis added.
Resolution E-4907 / SC8 DRAFT January 11, 2018
11
Procedure for Submission and Certification of Receipt
This Resolution adopts a new deadline for submission of Implementation Plans.
Implementation Plans will be submitted to the Director of the Energy Division
both via email and a hard copy by January 1 in order to serve load in the
following year. Within 90 days of receiving an Implementation Plan, the Energy
Division will certify that the plan has been received in a letter to the CCA. This
letter also will be copied via email to the incumbent utility.
Notice to Customers
This Resolution adopts no changes for Notice to Customers. Implementation
Plans shall include the timing of notices sent to utility customers who will be
transitioned to CCA service.
Notice to Customers of the Appropriate Cost Responsibility Surcharge (CRS)
This Resolution adopts no changes for Notice to Customers of the Appropriate
CRS. The current Cost Responsibility Surcharge (CRS) has three major
components: the Department of Water Resources (DWR) Bond Charge, the
Competitive Transition Charge, and the Power Charge Indifference Adjustment
(PCIA).
CCAs shall include in their Implementation Plans how they will notify customers
of the applicable CRS. The PCIA methodology is currently under consideration
in R.17-06-026.
Registration of CCAs
This Resolution adopts two new deadlines for CCA registration. First, this
Resolution requires that a CCA submit its registration packet to the CPUC within
90 days of filing its Implementation Plan. Second, this Resolution requires that if
the Registration Packet is complete, the CPUC will confirm the CCA’s
registration within 120 days of the CCA filings its Implementation Plan.
In order to register, a CCA must submit a registration packet including a signed
service agreement with the utility and a bond pursuant to Section 394.25 (e). The
interim bond amount was set to $100,000 in Resolution E-4133 (2007) and the
amount of the bond is currently under consideration in R.03-10-003.
Resolution E-4907 / SC8 DRAFT January 11, 2018
12
Once a bond has been submitted, Energy Division will issue a registration letter
confirming completion of all registration requirements. After a potential or
expanding CCA has fulfilled the above requirements, it may initiate service to its
new customers no earlier than the service date authorized by this Resolution.
COMMENTS
Public Utilities Code section 311(g)(1) provides that this resolution must be
served on all parties and subject to at least 30 days public review and comment
prior to a vote of the Commission. The draft Resolution was mailed for
Comments on December 8, 2017, and will be placed on the Commissioner’s
agenda for the January 11, 2017 Commission meeting.
FINDINGS AND CONCLUSIONS
1. Ordering Paragraph 8 of D.05-12-041 requires that the Executive Director
develop and publish the steps of an informal process of review that provides
a forum for the CCA and the utility to understand the CCA’s implementation
plans and assures the CCA is able to comply with utility tariffs.
2. Ordering Paragraph 8 of D.05-12-041 requires that the forum be mandatory at
the request of either the utility or the CCA and where the request is presented
in writing with a recitation of disputed items or areas of concern. The process
shall implicate no approvals, either formal or informal, from the Commission.
Utility tariffs shall describe the meet and confer process for resolving disputes
over operational issues prior to initiation of services.
3. The Commission should develop and publish the steps of an informal process
of review that provides a forum for CCAs and utilities as directed in Ordering
Paragraph 8 of D.05-12-041.
4. Ordering Paragraph 10 of D.05-12-041 requires the Executive Director to
prepare and publish instructions for CCAs and utilities that includes a
timeline and describes the procedures for submitting and certifying receipt of
the Implementation Plan, notice to customers, notice to CCAs of the
appropriate
Resolution E-4907 / SC8 DRAFT January 11, 2018
13
5. The Commission should prepare and publish instructions for CCAs and
utilities that includes a timeline and describes the procedures for submitting
and certifying receipt of the Implementation Plan, notice to customers, notice
to CCAs of the appropriate Cost Responsibility Surcharge (CRS), and
registration of CCAs. Cost Responsibility Surcharge (CRS), and registration of
CCAs.
6. CCAs must comply with the Resource Adequacy requirements as set forth in
Public Utilities Code Section 380 before beginning service.
THEREFORE IT IS ORDERED THAT:
1. Within 14 days of the effective date of this Resolution, Pacific Gas and Electric
Company (PG&E), Southern California Edison Company (SCE), and San
Diego Gas and Electric Company (SDG&E), shall update their tariffs and
submit Tier 2 Advice Letters with the adopted timeline and procedures listed
in Appendix A.
2. Prospective or expanding Community Choice Aggregators who have not yet
submitted an Implementation Plan as of December 8, 2017 shall file their
Implementation Plans pursuant to the adopted timeline and procedures listed
in Appendices A and B. This Resolution is not retroactive.
3. Commission staff will process Implementation Plans pursuant to the adopted
timeline and procedures listed in Appendices A and B.
4. Prospective or expanding Community Choice Aggregators that have not yet
submitted Implementation Plans to the Commission shall fulfill the Resource
Adequacy portion of Appendices A and B prior to initiating service to
customers.
5. The Commission will revisit this process, if necessary, depending on the
outcome of R.03-10-003 or successor proceedings.
Resolution E-4907 / SC8 DRAFT January 11, 2018
14
This Resolution is effective today.
I certify that the foregoing resolution was duly introduced, passed and adopted
at a conference of the Public Utilities Commission of the State of California held
on January 11, 2018; the following Commissioners voting favorably thereon:
___________________
TIMOTHY SULLIVAN
Executive Director
Resolution E-4907 / SC8 DRAFT January 11, 2018
15
Appendix A: Adopted CCA Registration Timeline and Procedures
18 For Plans to be submitted in 2018 to serve load in 2019, this deadline is extended to
February 1, 2018.
Date Action
Day 1, Year 1
(On or before January 1
Year 1)18
(1) The prospective or expanding CCA submits its Implementation
Plan to Energy Division and serves it on the R.03-10-003
Service List, on the R.16-02-007 Service List, and on the R.17-
09-020 Service List, or successor proceedings.
Day 1 – 10, Year 1 (1) The CPUC notifies the Utility servicing the customers that are
proposed for aggregation that an implementation plan initiating
their CCA program has been filed.
Day 1 – 60, Year 1 (1) The CCA provides a draft customer notice to CPUC’s Public
advisor.
(2) Within 15 days of receipt of the draft notice, the Public
Advisor shall finalize that notice and send it to the CCA.
DAY 1 – 90, Year 1
(1) The CPUC sends a letter confirming that it has received the
Implementation Plan and certifying that the CCA has satisfied
the requirements of an Implementation Plan pursuant to
Section 366.2(c) (3). This letter informs the CCA about the
cost recovery mechanism as required by P.U. Code Section
366.2(c)(7).
If and when the CPUC requests additional information from a
CCA, the CCA shall respond to CPUC staff within 10 days, or
notify the staff of a date when the information will be
available.
(2) The CPUC provides the CCA with its findings regarding any
cost recovery that must be paid by customers of the CCA in
order to prevent cost shifting. (P.U. Code Section 366.2 (c)
(7).)
(3) The CCA and the Utility should Meet-and-Confer regarding
the CCA’s ability to conform its operations to the Utility’s
tariff requirements.
Resolution E-4907 / SC8 DRAFT January 11, 2018
16
DAY 1 – 90, Year 1 (1) The CCA submits its registration packet to the CPUC,
including:
a. Signed service agreement with the utility, and
b. CCA interim bond of $100,000 or as determined in R.03-
10-003
Day 90 – 120, Year 1 (1) If the registration packet is complete, the CPUC confirms
Registration as a CCA.
April, Year 1 (1) The CCA submits its year ahead Resource Adequacy
forecast (P.U. Code Section 380)
August, Year 1 (1) The CCA submits its updated year-ahead RA forecast
October Year 1 (75 days
before service
commences)
(1) CCAs submit their Monthly load migration forecast for the
Resource Adequacy program, filed about 75 days prior to
the compliance month.
Within 60 days of the
CCA’s Commencement
of Customer Automatic
Enrollment
(1) The CCA shall send its first notice to the prospective
customers describing the terms and conditions of the
services being offered and the customer’s opt-out
opportunity prior to commencing its automatic enrollment.
(P.U. Code Section 366.2 (c) (13) (A))
Within 30 days of the
CCA’s Commencement
of Customer Automatic
Enrollment
(1) The CCA shall send a second notice to the prospective
customers describing the terms and conditions of the
services being offered and the customer’s opt-out
opportunity prior to commencing its automatic enrollment.
(P.U. Code Section 366.2 (c) (13) (A))
(2) Once notified of a CCA program, the Utility shall transfer
all applicable accounts to the new supplier within a 30-day
period from the date of the close of their normally
scheduled monthly metering and billing process. (P.U.
Code Section 366.2 (c) (16))
January 1, Year 2 (1) CCA begins service.
Following the CCA’s
Automatic Customer
Enrollment
(1) The CCA shall inform participating customers for no less
than two consecutive billing cycles that:
a. They have been automatically enrolled into the CCA
program and that each customer has the right to opt out of
the CCA program without penalty. (P.U. Code Section
366.2 (c) (13)(A)(i).)
b. Terms and conditions of the services being offered.
(P.U. Code Section 366.2 (c) (13)(A)(ii).)
Resolution E-4907 / SC8 DRAFT January 11, 2018
17
Appendix B: Schematic Comparison of Prior and Adopted Timelines for CCA Registration Process
Prior Timeline
Adopted Timeline
CCA submits Implementation
Plan to CPUC
Day 1 Day 10 Day 60 Day 90
CPUC notifies the Utility that an
implementation plan has been filed.
CPUC certifies it has received the implementation plan and
provides CCA with findings regarding cost recovery that must be
paid by customers of the CCA in order to prevent cost shifting.
CCA provides draft customer notice to CPUC Public
Advisor. Within 15 days of CCA providing draft
notice, public advisor will finalize CCA notice
CCA submits its
registration packet (bond
and service agreement)
CCA files its annual
load forecasts
Undefined
CCA begins serving
load
Sometime after submitting bond, CCA becomes
registered, receives registration number
The following annual RA forecast
deadline (April or August)
CCA submits
Implementation Plan to
CPUC
Day 1, on or
before January 1,
Year 1
Day 10 Day 60 Day 90
CPUC notifies the Utility that an
implementation plan has been filed.
CCA provides draft customer notice to CPUC Public Advisor. Within
15 days of CCA providing draft notice, public advisor will finalize
CCA notice
CCA files its
annual load
forecasts
CCA submits its registration
packet (bond and service
agreement)
Day 120
CPUC confirms registration of a CCA, issues
the CCA registration number, and publishes
the Implementation Plan and Registration
number the CCA page of the website.
CCA
begins
serving
load
January,
Year 2
April,
Year 1
August,
Year 1
CCA files its
revised
annual load
forecasts
CPUC certifies it has received the implementation plan and
provides CCA with findings regarding cost recovery that must be
paid by customers of the CCA in order to prevent cost shifting.
No changes Undefined deadlines Proposed
change
s
Talking Points on Draft Resolution E‐4907
The Proposal: The CPUC has proposed a large departure from their existing statutory oversight
of CCAs. The proposal will delay new communities from joining or forming CCAs, increase exit
fees on customers, drive local government programs into debt, and circumvents standard public
input processes at the Commission.
Process
o The Commission released this draft resolution on December 8th and requires comments
to be filed on December 29th with a Commission vote planned for January 11th. This is a
very short time frame and is not designed to maximize public input.
o This shortened time frame is especially prejudicial over the holidays, when many people
have family obligations.
o Changes of the magnitude proposed in the Draft Resolution should be raised in an open
proceeding at the Commission with due process and the opportunity for all interested
parties to weigh in, not just those who are extremely familiar with CPUC processes.
o There is an open rulemaking on resource adequacy procurement that would be
appropriate for this proposal.
o The Commission used to have quarterly and triannual meetings to address issues like
resource adequacy—those meetings were cancelled by the Commission in 2016.
Stifling of CCAs
o The Commission is attempting to slow down CCA growth in California and enact a de
facto “CCA Freeze.”
o The Commission process requires CCAs to begin service on a Comission‐defined
timeline, not the timeline that is decided to be the best for the community by locally
elected leaders.
o CCAs have many compliance, regulatory, outreach, and staffing obligations that they
must complete before they begin serving customers. By delaying service dates, the
Commission is preventing CCAs from collecting revenue that could be used for these
efforts. This could drive new CCAs into significant debt.
o Incumbent IOUs will continue to procure power on a new CCA’s behalf until service is
launched to customers, increasing the exit fees for those customers when they do begin
CCA service.
o The CPUC is looking to expand its input over communications materials within local
cities and counties.
o The CPUC should provide a list of CCA Directors (local governing boards) that it
consulted in developing this proposal. By law, the governing boards make the decisions
regarding implementation plans and roll out to new communities.
Cost‐Shifting
o The utilities have not provided any evidence that there is cost‐shifting. If the
Commission is relying on the utilities’ information for this resolution, stakeholders
should have the opportunity to rebut factual assertions made in the draft resolution.
The Ask: Comissioners should vote no on the proposed resolution. If the Commission wants to
address the issues encompassed in this resolution, it needs to open a rulemaking where all
parties can robustly engage, examine the evidence, and make their legal arguments. At the very
least, the Commission should utilize an existing proceeding to examine this.
MEETING REQUEST FORM
Office of Commissioner Clifford Rechtschaffen
California Public Utilities Commission
Main Office: (415) 703-2440
Email meeting requests to: Sean Simon (svn@cpuc.ca.gov), Joan Dahlgren(jbd@cpuc.ca.gov), and
Amy Brodrick (ahb@cpuc.ca.gov).
Today’s Date: 12/8/17
Contact information for the person requesting the meeting.
Name Troy Nordquist Organization Marin Clean Energy (MCE)
Phone (415) 464-6027 Email tnordquist@mcecleanenergy.org
I/We would like to meet with:
( x ) Commissioner ( ) Advisor ( x ) Advisor if the Commissioner is unavailable
Topic for the meeting (please check all that apply).
( x ) Energy ( ) Communications ( ) Transportation ( ) Water ( ) Safety ( )Other _______________
Reason for the meeting (please check all that apply).
( ) Meet and greet
( x ) Discuss an open proceeding
Proceeding number and description: _R.17-09-020_______________
Proceeding category: ( ) Quasi-Legislative ( x ) Ratesetting
( x ) Discuss an item on the Commission meeting agenda
Date of meeting: _01/11/18__________________________
Item number and description: _Draft Resolution E-4907_
Additional information for meeting request (please be specific):
List your meeting attendee(s) by name, organization and title.
Dawn Weisz, CEO, MCE
Members of MCE Board of Directors
Proposed dates and times of meeting: 12/20 11am-3pm,
12/21 12-3pm, 12/22 11am-3pm, 1/5 12-3pm
( x ) In Person ( x ) San Francisco
( ) By Phone ( ) Sacramento
Will the meeting trigger ex parte restrictions or reporting requirements pursuant to Rule 8.3 of the
Commission’s Rules of Practice and Procedure? ( x ) Yes ( ) No
IMPORTANT. Please take these calendaring considerations into account when completing this form:
The party or individual requesting an ex parte meeting in ratesetting matters must provide notice of the
meeting to all parties to the proceeding at least three working days ahead of the meeting.
Individual ex parte meetings in ratesetting proceedings are not permitted within three business days of the
Commission’s scheduled vote on a proposed decision in that proceeding.
Meetings are not permitted on matters related to Adjudicatory, Enforcement, Rehearing or Complaint
proceedings.
In addition to any notification required by the Commission’s Rules of Practice and Procedure, please
e-mail all ex parte meeting notices and reports to: Rechtschaffen.Exparte@cpuc.ca.gov.
Submission of this form does not guarantee a meeting with the Commissioners or their advisors.
This meeting request form and any materials provided during the meeting are subject to the California Public
Records Act.