CPUC Public Agenda 3258 Thursday, July 29, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco

1. CPUC Public Agenda 3258Thursday, July 29, 2010, 10:00 a.m.505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Timothy Alan SimonNancy E. Ryan www.cpuc.ca.gov

2. 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. 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. The following items are NOT subject to Public Comment: Items: 27, 33, 34, 37 & 38 All items on the Closed Session Agenda

3. 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, 5, 7, 8, 9, 10, 13, 15, 16, 17, 18, 19, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39 & 40. • 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: 49, 51, 53 & 57 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: 14 has been moved to the Regular Agenda. • Items: 6, 54 & 56have been withdrawn. • The following items have been held to future Commission Meetings: • Held to 8/12/10: 2, 4, 12, 20, 46, 50 & 52 • Held to 9/2/10: 3 & 11

4. 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.

5. Regular Agenda – Transportation Orders Item #14 [9582] Exposition Metro Line Construction Authority's Settlement Agreement A06-12-005, A06-12-020, A07-01-004, A07-01-017, A07-01-044, A07-02-007, A07-02-017, A07-03-004, A07-05-012, A07-05-013 - Related matters. In the Matter of the Application of the Exposition Metro Line Construction Authority for an order authorizing the construction of a two-track at-grade crossing for the Exposition Boulevard Corridor Light Rail Transit Line across Jefferson Boulevard, Adams Boulevard, and 23rd Street, all three crossings located along Flower Street in the City of Los Angeles, County of Los Angeles, California. Ratesetting Comr. Simon/ ALJ Bushey ------------------------------------------------------------------------------------------------------------------------------ • PROPOSED OUTCOME: • Approves settlement agreement and authorizes at-grade crossing. • Closes the proceedings. • ESTIMATED COST: • None.

6. Regular Agenda – Energy Orders Item #41 [9411] Pacific Gas and Electric Company’s Applications for Approval of Power Purchase Agreements A09-10-022, A09-10-034 - Related matters. Application of Pacific Gas and Electric Company for Approval of Agreements Related to the Novation of the California Department of Water Resources Agreement with GWF Energy LLC, Power Purchase Agreement with GWF Energy II LLC, and Associated Cost Recovery. Ratesetting Comr. Peevey/ ALJ Kenney -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Conditionally approves the proposed Tracy Transaction and the proposed Los Esteros Transaction. These two transactions would together procure 588 megawatts (MW) of fossil capacity, including 254 MW of new capacity. Pacific Gas and Electric Company (PG&E) is required to resubmit these transactions for Commission approval via a Tier 1 advice letter if future events create an unfilled need for new capacity authorized by the Commission. • PG&E is directed to work with the California Department of Water Resources (DWR) to novate to PG&E, as soon as practical, DWR’s existing power purchase agreements (PPAs) with the Tracy Facility and the Los Esteros Facility. • Approves the proposed Peakers Transaction, which in includes a long-term PPA to procure 502 MW of capacity, energy, and ancillary services from 10 existing facilities. PG&E is authorized to recover the costs of the Peakers Transaction via the Energy Resources Recovery Account. PG&E is also authorized to recover future stranded costs, if any. PG&E may recover stranded costs, if any, from departing load customer via a non-bypassable charge. • Closes the proceeding. • ESTIMATED COST: • The estimated cost of the approved Peakers Transaction is confidential at this time. • The estimated cost of the Tracy Transaction and Los Esteros Transaction, if resubmitted, is also confidential at this • time. • There is no additional cost associated with the novation of DWR’s existing PPAs with the Tracy Facility and the Los • Esteros Facility.

7. [1]This value is for 2015. It includes the impact of EE programs in effect from 2010 through 2012 and reflects the effect of the economic downturn. [2]Signifies incremental impact of energy efficiency programs from 2013 through 2020. Value given here is for 2015. Source: CEC, May 2010.

8. Regular Agenda – Energy Orders Item #42 [9451] Southern California Edison Company Certificate of Public Convenience and Necessity A08-05-039 Ratesetting Comr. Grueneich/ ALJ Yacknin ----------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Grants Southern California Edison Company a Certificate of Public Convenience and Necessity to construct the San Joaquin Cross Valley Loop Transmission Project using the environmentally superior project Alternative 2 identified in the Environmental Impact Report. • Adopts a maximum project cost of $122.182 million (excluding allowances for funds used during construction). • Closes the proceeding. • ESTIMATED COST: • $122.182 million.

9. Regular Agenda – Energy Orders Item #42a [9596] ALTERNATE TO ITEM 9451 Comr. Bohn ------------------------------------------------------------------------------------- Approves, with modifications, the City of Visalia’s proposal for jointly funding and developing a multi-use green pathway within the transmission corridor that runs through Visalia.

10. Regular Agenda – Energy Orders Item #43 [9500] Jurisdiction of the Commission Over the Sale of Electricity at Retail to the Public for the Sole Use as a Motor Vehicle Fuel R09-08-009 Order Instituting Rulemaking on the Commission's own motion to consider alternative-fueled vehicle tariffs, infrastructure and policies to support California's greenhouse gas emissions reduction goals. Quasi-Legislative Comr. Ryan/ ALJ DeAngelis ----------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Concludes that the ownership or operation of a facility that sells electric vehicle charging services to the public for use only as a motor vehicle fuel and the selling of electric vehicle charging services from that facility to the public for use only as a motor vehicle fuel does not make the corporation or person a public utility within the meaning of Public Utilities Code Section 216 solely because of that sale, ownership or operation. • Identifies other sources of Commission regulatory authority to address the potential impacts of electric vehicles to help the State achieve its greenhouse gas and renewable energy goals. • ESTIMATED COST: • None.

11. Regular Agenda – Energy Orders Item #44 [9516] Pacific Gas and Electric Company's Long-Term Request for Offers A09-09-021 Application of Pacific Gas and Electric Company for Approval of 2008 Long-Term Request for Offer Results and for Adoption of Cost Recovery and Ratemaking Mechanisms. Ratesetting Comr. Peevey/ ALJ Farrar ------------------------------------------------------------------------------------------------------ • PROPOSED OUTCOME: • Grants application in part and approves cost recovery. • Closes the proceeding. • ESTIMATED COST: • Unknown.

12. Regular Agenda – Energy Orders Item #45 [9520] Natural Resources Defense Council's Petition to Modify Decision 07-01-039 R06-04-009 Order Instituting Rulemaking to Implement the Commission’s Procurement Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions Standards into Procurement Policies. Quasi-Legislative Comr. Peevey/ ALJ Vieth ----------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Grants, in part, a petition to modify Decision (D) 07-01-039 filed by the Natural Resources Defense Council. • Modifies D07-01-039 (1) to clarify that a plan must comply with federal and/or state monitoring, verification and reporting requirements applicable to projects designed to permanently sequester CO2 and prevent its release from the subsurface, and (2) to further specify how a plan may meet monitoring, verification and reporting requirements if federal and/or state requirements do not exist or have not been finalized. • ESTIMATED COST: • None.

13. Regular Agenda – Energy Orders Item #47 [9542] Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company's Phase 1 of Consolidated Nuclear Decommissioning Cost Triennial Proceedings A09-04-007, A09-04-009 - Related matters. Application of Pacific Gas and Electric Company in its 2009 Nuclear Decommissioning Cost Triennial Proceeding. Ratesetting Comr. Simon/ ALJ Darling ------------------------------------------------------------------------------------------------------------------------------ • PROPOSED OUTCOME: • Rejects proposed settlement as a whole but resolves all issues in Phase 1, including adoption of • most settlement provisions. • Creates independent panel of experts to examine uniform development and presentation of cost • data. • Rejects modified reasonableness review for future decommissioning costs. • ESTIMATED COST: • $250,000 from Nuclear Decommissioning Adjustment Mechanism for all utilities; • Southern California Edison Company-$23 million/year, • Pacific Gas and Electric Company-$22.6 million/year, • San Diego Gas & Electric Company-$15.3 million/year trust fund revenue requirements.

14. Regular Agenda – Energy Orders Item #48 [9565] Interim Decision Implementing Methods to Decrease the Number of Gas and Electric Utility Service Disconnections R10-02-005 Order Instituting Rulemaking on the Commission’s Own Motion to Address the Issue of Customers’ Electric and Natural Gas Service Disconnection. Quasi-Legislative Comr. Grueneich/ ALJ DeBerry ------------------------------------------------------------------------------------------------------------------------------ • PROPOSED OUTCOME: • Continues one service disconnection practice providing for longer payment periods for bills in arrearage; • Waives credit deposits for California Alternate Rates for Energy (CARE) customers; • Adopts new customer service disconnection practices including uniform deposits for non-CARE customers; • Lowers the deposit requirements for non-CARE customers; • Provides that disabled customers will receive in-person visits before disconnection; • Directs Sempra Utilities to develop payment plans similar to PG&E that can be used in lieu of cash for credit deposits; • These practices will be effective until general rate case decision dates; • Directs utilities to recommend uniform notice of disconnection procedures; • Interim practices must be implemented by October 1, 2010; • Sets forth issues for the next phase of the proceeding. • ESTIMATED COST: • Unknown, although the adopted customer practices should have minimal costs.

15. Regular Agenda – Legislative and Other Matters Item #55 [9599] Utilities: Renewable Energy Resources SB 722 (Simitian) ------------------------------------------------------------------------------------- This bill would revise the Renewable Energy Resources Program to state the intent of the Legislature to increase the amount of electricity generated from eligible renewable energy resources per year, so that amount equals at least 33% of total retail sales of electricity in California per year by December 31, 2020. The bill would revise certain terms used in the program and revise certain eligibility criteria for a renewable electrical generation facility, as defined, pursuant to the program. This bill would express the intent that the amount of electricity generated per year from eligible renewable energy resources be increased to an amount that equals at least 20% of the total electricity sold to retail customers in California per year by December 31, 2013, and 33% by December 31, 2020.

16. Commissioners’ Reports

17. Management Reports

18. Regular Agenda – Management Reports and Resolutions Item #58 [9535] Report on the Alternative Dispute Resolution Program Chief Administrative Law Judge Clopton's Report ------------------------------------------------------------------------------- Report to the Commission on the Alternative Dispute Resolution Program.

19. The ADR Program at the CPUCFive Year Progress Report Karen V. CloptonChief Administrative Law Judge California Public Utilities Commission July 29, 2010

20. ADR Program Marks 5th Year Anniversary (Aug 2005- July 2010) • Program Highlights • 75% Settlement Rate (2009 through the present) • Program Use Increasing • ADR commenced in over 130 proceedings to date • 2009: 35 proceedings – highest calendar year usage since commencement of formal program • 2010: 15 proceedings this year

21. Program Highlights (continued) • Renewed effort to identify where and when ADR is appropriate • Heightened efforts to inform public and CPUC practitioners about ADR program and its possibilities • Confidential, anonymous evaluation survey posted on CPUC website’s ADR page

22. Looking Toward the Future • Increasing ADR Program Use – When and Where ADR Makes Sense • Continued, heightened review of new filings for ADR potential • Continuing education at every process stage (informal and formal) to ensure the availability of ADR, and its possibilities, are more widely understood • We welcome your input.

23. Resources For up-to-date, detailed program information please see: www.cpuc.ca.gov/puc/adr/ For a copy of the ADR Report please see: http://docs.cpuc.ca.gov/PUBLISHED/Graphics/117913.pdf For a copy of Resolution ALJ-185 please see: http://docs.cpuc.ca.gov/word_pdf/FINAL_RESOLUTION/49129.pdf Contact information: adr_program@cpuc.ca.gov

24. Management Reports

25. In Memory of Mary Moran Pajalich Paul Clanon Executive Director California Public Utilities Commission July 29, 2010

26. Railway Commission, Dec. 20, 1937 As the CPUC is celebrating its 100th year, last week we lost someone whose life began even before the CPUC’s, and whose contributions to the history of the CPUC were unique.  Mary Moran Pajalich was the first woman attorney hired by the then California Railroad Commission, in 1935. 

27. Railway Commission, Dec. 20, 1937 Mary Moran Pajalich was the first woman attorney hired by the then California Railroad Commission, in 1935.  Mary eventually retired as the Commission's Chief Counsel (the first woman to hold that post) in 1972, and was then appointed a Municipal Court Judge.  She left the bench in 1977 but stayed active in the law and in San Francisco.

28. In Memory Mary, her two daughters, their families,and her friends are in our thoughts this week. Mary Moran PajalichOct. 7, 1907 - July 21, 2010

29. The CPUC Thanks YouFor Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: August 12, 2010, at 10:00 a.m.