WEBVTT
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Welcome to the
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California Public Utilities Commission.
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This is the public voting meeting,
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which is scheduled to start
at 10:00 am on this date,
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Thursday, June 25th, 2020.
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President Batjer will
convene the meeting shortly.
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If you wish to speak during
the public comment period,
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please press star one on mute your phone
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and clearly record your name
and organization when prompted.
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You may be placed
into a queue in the order
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that you have identified yourself.
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When it comes time for you to speak,
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I will announce your
name and open the line.
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You will have one and
a half minutes to speak.
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To withdraw your
question, press star two.
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Please note, we're expecting
a high volume of callers.
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If we did not get to you
right away to take your name,
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please be patient and stay on the line.
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As a reminder, parties to a proceeding,
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can't speak on issues
related to the proceeding,
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to which they're a party.
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Additionally, all items
on the closed session
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are not subject to public comment.
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Thank you all for standing by,
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today's conference will be in shortly.
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(bright music)
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Welcome to the California
Public Utilities Commission,
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public voting meeting on this
day Thursday, June 25th, 2020.
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Today's call is being recorded.
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If you have any objections,
you may disconnect at this time.
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I would now like to turn the
call over to President Batjer.
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Thank you ma'am, you may begin.
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Thank you operator,
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and good morning, everyone.
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We need to first establish a quorum,
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maybe agenda clerk,
please call the roll.
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[Clerk] The public agenda 3464,
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Commissioner Shiroma.
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Present.
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Commissioner Guzman Aceves
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Present.
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Commissioner Randolph.
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Here.
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Commissioner Rechtschaffen.
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Present.
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President Batjer
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Here.
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Thank you, a quorum
has been established.
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And welcome to the California
Public Utilities Commission.
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I'm calling this meeting
of June 25th, 2020,
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public agenda number 34642 order.
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In March, Governor Gavin Newson issued
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a stay at home order to protect
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the health and wellbeing
of all Californians
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and to establish
consistency across the state
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in order to slow the spread of COVID-19.
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As such, we're conducting
today's business meeting online
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and by remote participation.
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This meeting is live streamed
on the CPUC website.
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You can view the meeting
@wwdotadminmonitor.com/ca/cpuc.
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Admin monitor is one word.
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Public engagement is
critical to the PUC process.
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If you wish to make a public comment,
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dial into 800 857-1917
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and enter passcode 989-9501
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and press star one,
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you will be placed into a queue
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and our operator will take
your name and organization.
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There may be a slight delay
from the time you press star one
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to the time the operator
asks for your information,
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please be patient and stay on the line.
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You will be called upon to speak
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when we get to the public
comment period in today's agenda.
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Email comments
received will be distributed
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to the Commissioners
and to senior management.
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Much has happened since
the shelter in place order went
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into effect in late March.
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Everyone was ordered to stay home except
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for essential needs and activities.
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Statewide testing
began and is continuing.
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And the number of COVID-19
cases began to plateau.
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The state also deployed contact tracers.
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These factors led the
state and local governments
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to allow for certain
businesses to reopen,
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to restart our economy.
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As we slowly began to
resume activities outside
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of our homes,
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such as sharing a meal
with family, getting a haircut,
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participate in another
small group gatherings,
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bear in mind that we are still
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in the first wave of the pandemic.
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The California Department
of Public Health issued
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a Statewide order to
wear a face covering
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in most situations outside of the home,
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in order to protect the health
of oneself and of others.
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Scientific research has shown that
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the use of face coverings
combined with physical distancing
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and frequent hand washing
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will reduce the spread of COVID-19.
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The most recent statistics show that
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the number of positive cases of COVID
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has risen in some areas
of the state since reopening
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of certain parts of the economy.
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Indeed, we hit a record yesterday.
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The threat of COVID-19 is very real
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and until there is a vaccine,
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we have to be smart
and we have to continue
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wear a cloth covering or mask
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when six fit of distance
cannot be maintained.
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And even more so now
with the Governor's order,
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practice physical distancing,
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wash your hands with soap and water
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for a minimum of 20 seconds,
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avoid touching your eyes, nose,
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or mouth with unwashed hands.
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And to the extent possible,
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stay at home except for
essential needs and activities.
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I now want to turn our
attention to another issue
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that has taken hold of our nation,
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the murder of George
Floyd and the protest
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and actions in response
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that have drawn long overdue attention
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to the systematic
racism in this country.
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These events call on a broad
societal and systemic changes
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and with a long overdue acknowledgment
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by individuals and institution
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that indeed Black Lives Matter.
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At the last Commission meeting,
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I made a commitment to
do more and to do better
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in regard to this agency's policies
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and practices around
diversity, equity and inclusion.
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As part of that effort,
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we will establish a diversity
equity inclusion working group
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made up of staff from varying divisions
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and levels of the organization to advise
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the Commission on its diversity,
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equity and inclusion
workforce initiatives.
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Its principal charge will
be advising the Commission
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as it establishes a
commitment to diversity,
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equality and inclusion as a cultural
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and institutional value.
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This will include assessing
our work force culture,
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increasing the diversity
of job candidate pools
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and working to eliminate biases
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from job screening and
practices, among other things.
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This is just the start and
amongst the various actions
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we're initiating to address
our internal culture,
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which will be informed by
the working group of staff.
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I will continue to report publicly
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as we make progress in these areas.
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One of the core values of
the CPUC is accountability.
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And I commit to be accountable
to the Commission staff
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and to the public to walk
our talk in regards to reforms.
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I understand that words
and actions matter.
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But also like to say to CPU staff
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who have shared their
experiences and thoughts,
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and those who have volunteered to assist
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in efforts to making the
Commission more inclusive,
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diverse, and equitable as well as
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an overall better workplace.
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Okay, thank you.
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With that, we will now
turn to public comment.
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The Commission provides
two minutes to each speaker.
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You will hear a bell
sound when your time is up.
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Let me repeat that.
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You will hear a bell
down when your time is up.
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To make telephonic public comments.
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You may dial 800 857-1917
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and enter pass code
989-9501 and press star one.
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If you're experiencing difficulty
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with getting into the
public comment queue,
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please email votingmeetinghelp,
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all one word, @cpuc.ca.gov.
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Let me repeat that.
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If you're having difficulty
getting into the public comment,
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telephone queue, please email
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votingmeetinghelp@cupc.ca.gov.
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The operator will call your name
00:09:42.990 --> 00:09:45.020
when it is time for you to speak.
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You will hear a bell
sound when your time is up,
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please be mindful of
the other people waiting
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in a queue to provide public comment.
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Your cooperation will help
us ensure that everyone gets
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their turn to share their
comments with the Commissioners.
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CPUC rules do not allow
for parties in proceedings
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to speak about opening proceedings.
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The public can make
comments addressing items
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on the consent and regular agendas
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and including items
not on today's agenda.
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Please note that there
will not be public comment
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on items 21, 47, 48, 53, 54.
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And any item on the
closed session agenda.
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With that guidance in mind,
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I welcome today's speakers.
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I will now turn to the Operator to open
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the public comment cell phone. Operator.
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Thank you.
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The public comment line is now open.
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Our first comment comes
from Nancy Macy with
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San Lorenzo Valley Women's
Club Environmental Committee.
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You may go ahead.
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Thank you. Good morning.
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As she said, I'm Nancy Macy,
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chair of the Valley Women's
Clubs Environmental Committee
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for the San Lorenzo Valley.
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The Valley is located in the
Santa Cruz, coastal mountains,
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and is primarily tier three,
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high utility associated wildfire danger.
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And we're worried, we're
along with thousands
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of people throughout PG&E
territory extremely disappointed
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that you fail to understand
and act on the emergency nature
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of PG&E's failure to protect us all
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from both wildfire and PSPS,
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allowing PG&E's contractors
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to continue removing
thousands of healthy mature trees
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from county forest
that are not the threat
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will exacerbate ongoing
environmental damage
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and threatened the wellbeing
of thousands of residents.
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With hundreds of conditions imposed
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on the wildfire management plan,
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you still miss the point,
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you should have taken control.
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You should have set
the priorities and methods
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and not allowed PG&E to set them.
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That 25,000 miles of
bare six gauge copper wire
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in tier two and three areas
will still remain vulnerable.
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Their wire is readily
subject to breakage,
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arching and sparking
causing power outages,
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igniting wildfires, and
threatening electrocution.
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And with no regulations in GO95
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about circuit breakers at all,
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and no mandate to start installing them
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by choosing from the
many off the shelf tested
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and affordable models PG&E
will keep on testing for years,
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failing to protect us again
from wildfire and PSPS.
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Please know that when you
accepted without comment.
00:12:55.610 --> 00:12:58.630
So wildfire safety divisions decision
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that sent the message
that it didn't matter
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that the public had
researched the issues
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had read in depth CPUC records analyze
00:13:10.263 --> 00:13:12.380
the wildfire mitigation plan
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and submitted significant failings
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to consider you're allowing
yourself to be caught up
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in the same old CPUC acquiescence
00:13:20.310 --> 00:13:23.040
to the IOUs, especially PG&E,
00:13:23.040 --> 00:13:25.560
rather than establishing
and mandating priorities
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and methods that will
actually improve the situation,
00:13:28.640 --> 00:13:30.733
you can still do so, thank you.
00:13:32.720 --> 00:13:33.700
Thank you, Nancy.
00:13:33.700 --> 00:13:35.453
Operator, the next caller, please.
00:13:37.912 --> 00:13:42.040
Next caller is
David McCord the resident.
00:13:42.040 --> 00:13:43.447
You may go ahead, sir.
00:13:43.447 --> 00:13:46.080
[Dave] Hi, this is Dave McCord
00:13:46.080 --> 00:13:48.900
and I'm calling in from El Silverado.
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I'm a proud customer of MCE
that's CCA that serves the city.
00:13:56.140 --> 00:13:59.280
On June 11, you approved details
00:13:59.280 --> 00:14:03.503
for central procurement
of local resource adequacy.
00:14:03.503 --> 00:14:07.350
However, the resource
adequacy proceeding
00:14:07.350 --> 00:14:12.350
are 17, 09, 020 is still open,
00:14:13.690 --> 00:14:17.390
and I have suggestions for improvement.
00:14:17.390 --> 00:14:21.950
First, the uncertainty for
load serving entities over
00:14:21.950 --> 00:14:24.680
whether the resources they bid in
00:14:24.680 --> 00:14:27.259
to the central pokey
river will be accepted,
00:14:27.259 --> 00:14:31.170
and under what conditions
should be removed.
00:14:31.170 --> 00:14:34.330
This uncertainty reduces the incentive
00:14:34.330 --> 00:14:36.433
for them to even try.
00:14:37.730 --> 00:14:42.730
Second, credit for RA
should be given for deployment
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of local preferred resources
and energy storage
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and shooting behind the meter.
00:14:50.390 --> 00:14:53.820
The old paradigm of one way delivery
00:14:53.820 --> 00:14:58.290
of power from afar is worn out.
00:14:58.290 --> 00:15:01.180
We all need to welcome the supply
00:15:01.180 --> 00:15:05.660
and use of power within
the local distribution grid
00:15:05.660 --> 00:15:07.934
as well as some transmission.
00:15:07.934 --> 00:15:08.767
Thank you.
00:15:10.240 --> 00:15:12.330
Thank you, Mr. McCord,
00:15:12.330 --> 00:15:14.240
Operator, the next caller, please.
00:15:15.317 --> 00:15:18.210
Our next
caller is Robin McCollum
00:15:18.210 --> 00:15:20.130
with Chico Three Advocates.
00:15:20.130 --> 00:15:20.980
You may go ahead.
00:15:22.541 --> 00:15:24.970
Good morning and
thank you for this opportunity
00:15:24.970 --> 00:15:27.829
to participate in our democracy.
00:15:27.829 --> 00:15:31.770
Emergency extreme fire potential exist
00:15:31.770 --> 00:15:33.550
in a high fire threat areas
00:15:33.550 --> 00:15:37.110
and PG&E's obsolete and
dilapidated infrastructure
00:15:37.110 --> 00:15:39.947
has decades long maintenance neglect.
00:15:39.947 --> 00:15:42.259
The forests are tinder dry
00:15:42.259 --> 00:15:47.259
and PG&E's 25,000 mile
insulated distribution system,
00:15:48.530 --> 00:15:51.613
stands like a grenade with the pin pole,
00:15:52.560 --> 00:15:55.023
ready to ignite the next town.
00:15:56.110 --> 00:15:59.830
Installation and fail
safe arc fault interrupters
00:15:59.830 --> 00:16:02.433
should be the first line of defense.
00:16:04.010 --> 00:16:09.010
PG&E's half hearted
commitment to insulate 240 miles,
00:16:09.850 --> 00:16:13.920
1% of their 25,000
miles system is an insult
00:16:13.920 --> 00:16:16.930
to the Commission and the
citizens who pay high rates
00:16:16.930 --> 00:16:20.540
for what should be reasonable safety.
00:16:20.540 --> 00:16:21.840
If PG&E's management
00:16:21.840 --> 00:16:24.340
and engineers were truly experts,
00:16:24.340 --> 00:16:26.760
they would have committed to real safety
00:16:26.760 --> 00:16:28.680
before they drove themselves
00:16:28.680 --> 00:16:31.710
into manslaughter and bankruptcy.
00:16:31.710 --> 00:16:34.158
If they cannot afford to do better,
00:16:34.158 --> 00:16:36.613
they should be forced into receivership.
00:16:37.550 --> 00:16:40.120
PG&E's assault on billions of trees
00:16:40.120 --> 00:16:43.470
is an ineffective distraction
from the real safety
00:16:43.470 --> 00:16:46.510
that is... And would
be unnecessary
00:16:46.510 --> 00:16:49.810
if their money was spent
on system. Pardon me
00:16:49.810 --> 00:16:52.430
The wildfire safety division
has described their failure
00:16:52.430 --> 00:16:55.840
with unprecedented
accuracy and specificity,
00:16:55.840 --> 00:16:57.510
but held rejecting their
00:16:57.510 --> 00:17:00.250
inadequate wildfire mitigation plan.
00:17:00.250 --> 00:17:03.070
That task now falls to the technician.
00:17:03.070 --> 00:17:07.333
PSPS is a clear
admission of PG&E's failure.
00:17:08.340 --> 00:17:11.350
The conditions pass
deference to these experts
00:17:11.350 --> 00:17:13.330
has allowed these
unacceptable conditions
00:17:13.330 --> 00:17:15.803
to develop without real consequences.
00:17:16.690 --> 00:17:20.220
Failure to hold these
arrogant fools accountable
00:17:20.220 --> 00:17:23.417
is complicity. Thank you.
00:17:25.350 --> 00:17:26.960
Thank you Mr. McCollum.
00:17:26.960 --> 00:17:28.693
Operator, the next caller, please.
00:17:30.402 --> 00:17:32.045
And before we
go to the next caller,
00:17:32.045 --> 00:17:35.110
again, if you would like
to make a public comment,
00:17:35.110 --> 00:17:36.410
please unmute your phone,
00:17:36.410 --> 00:17:39.940
press star one and record
your name and organization.
00:17:39.940 --> 00:17:41.860
So I may introduce you.
00:17:41.860 --> 00:17:43.920
Our next caller is Jennifer Tanner
00:17:43.920 --> 00:17:47.600
with Indivisible California Green Team.
00:17:47.600 --> 00:17:49.234
You may go ahead.
00:17:49.234 --> 00:17:51.061
Thank you.
Can you hear me?
00:17:51.061 --> 00:17:53.256
Yes, we can hear you.
00:17:53.256 --> 00:17:54.089
Thank you.
00:17:54.089 --> 00:17:56.640
I'm Jennifer Tanner, Indivisible
California Green Team.
00:17:56.640 --> 00:17:58.808
Thank you for the
opportunity to comment.
00:17:58.808 --> 00:18:01.296
For the last year, quite a
number of unpaid volunteers
00:18:01.296 --> 00:18:04.440
have made comments
and proceedings arduously
00:18:04.440 --> 00:18:08.770
to prepare documents that
about what needs to be solved
00:18:10.540 --> 00:18:12.943
the PG&E crisis of burning
down our communities
00:18:12.943 --> 00:18:15.827
from utility caused
wildfires, and to what end?
00:18:15.827 --> 00:18:18.874
People are angry and
frustrated that nothing is changing
00:18:18.874 --> 00:18:22.550
and people are saying it
is the fault of the CPUC,
00:18:22.550 --> 00:18:23.383
they're worried.
00:18:23.383 --> 00:18:25.740
And what I hear is when
the next PSPS bankrupts
00:18:25.740 --> 00:18:27.890
the community, they will blame you.
00:18:27.890 --> 00:18:30.393
And when we have
the next utility wildfire,
00:18:32.540 --> 00:18:34.480
we all will blame you.
00:18:34.480 --> 00:18:36.997
You let PG&E known felon
for decades responsible
00:18:36.997 --> 00:18:39.200
for killing people and
destroying livelihoods.
00:18:39.200 --> 00:18:41.470
You have them decide
how little to do to fix
00:18:41.470 --> 00:18:44.358
those shoddy wires and
allow them to blame the trees.
00:18:44.358 --> 00:18:46.410
You allow them to replace Paradise
00:18:46.410 --> 00:18:49.390
with more shoddy wiring by flipping PG&E
00:18:49.390 --> 00:18:53.899
is paltry 240 miles of why
repair year out of 22,000 miles,
00:18:53.899 --> 00:18:56.910
which has the six gauge
wire known to start fires.
00:18:56.910 --> 00:18:59.491
You commit us to endless PSPS.
00:18:59.491 --> 00:19:01.900
And while ACE is replacing their wires
00:19:01.900 --> 00:19:04.490
with triple insulated steel center wire,
00:19:04.490 --> 00:19:06.530
which trees generally cannot break.
00:19:06.530 --> 00:19:09.380
You have PG&E to replace
with whatever cheaper shoddy
00:19:09.380 --> 00:19:11.348
or version they want.
00:19:11.348 --> 00:19:13.720
And when local communities
wanna build microgrids
00:19:13.720 --> 00:19:15.626
to really protect
themselves in this crisis,
00:19:15.626 --> 00:19:17.850
you forced them to be under the auspices
00:19:17.850 --> 00:19:19.650
of the investor owned utilities
00:19:19.650 --> 00:19:21.050
known to be terrible partners
00:19:21.050 --> 00:19:23.930
and make all decisions
for profit, not safety,
00:19:23.930 --> 00:19:25.500
clean energy microgrids,
00:19:25.500 --> 00:19:28.080
not the diesel generation
ones you just approved
00:19:28.080 --> 00:19:30.380
should be at the forefront
of every community,
00:19:30.380 --> 00:19:32.548
which would be faster,
cleaner, and cheaper.
00:19:32.548 --> 00:19:35.209
And yet they're not because
regardless of everything,
00:19:35.209 --> 00:19:37.791
you still let IOUs be in charge.
00:19:37.791 --> 00:19:40.270
It seems that no matter what
information is shared with you,
00:19:40.270 --> 00:19:42.312
the same additions that
got us here are in play
00:19:42.312 --> 00:19:44.980
and for all the money
talking and paperwork,
00:19:44.980 --> 00:19:47.130
except that now the
IOUs will be reimbursed
00:19:47.130 --> 00:19:49.325
by a $21 billion fund.
00:19:49.325 --> 00:19:51.207
So when we have the next PS event
00:19:51.207 --> 00:19:53.125
and the next utility caused wildfire,
00:19:53.125 --> 00:19:55.010
don't be surprised when
people blame you CPUC
00:19:55.010 --> 00:19:57.463
and Governor. Thank you.
00:19:58.810 --> 00:20:00.543
Thank you, Ms. Tanner.
00:20:00.543 --> 00:20:02.873
Operator, the next caller, please.
00:20:04.093 --> 00:20:07.006
Our next
caller is Darryl Gale
00:20:07.006 --> 00:20:09.343
the Los Angeles resident.
00:20:09.343 --> 00:20:10.563
You may go ahead.
00:20:12.037 --> 00:20:13.619
Thank you.
00:20:13.619 --> 00:20:17.850
Commissioners, how
can you believe anything
00:20:17.850 --> 00:20:22.960
that PG&E promises after
San Bruno and Paradise.
00:20:22.960 --> 00:20:26.960
PG&E has wantonly murdered the citizens
00:20:26.960 --> 00:20:29.810
of California while
making empty promises
00:20:29.810 --> 00:20:34.240
and hardening wires and
upgrading their equipment.
00:20:34.240 --> 00:20:37.790
Our longer summers are hotter and drier
00:20:38.900 --> 00:20:43.900
how many people will be
terrorized continuously this summer?
00:20:44.770 --> 00:20:48.050
Well, it's already summer
by wildfires, get sick
00:20:48.050 --> 00:20:51.650
or die from their sloppy
shutoff off program,
00:20:51.650 --> 00:20:56.083
due to this company's
ineptitude and greed? Thank you.
00:20:57.640 --> 00:20:58.740
Thank you, Ms. Gale.
00:20:59.901 --> 00:21:02.253
Operator, the next caller, please.
00:21:03.613 --> 00:21:07.812
Our next caller is
Chuck Rozelle the resident.
00:21:07.812 --> 00:21:08.833
You may go ahead.
00:21:16.645 --> 00:21:18.696
And again, Mr. Rozelle,
your line is open.
00:21:18.696 --> 00:21:20.373
We're not able to hear you.
00:21:21.557 --> 00:21:23.157
Can you hear me now?
00:21:25.320 --> 00:21:26.370
Yes we can.
Yes.
00:21:35.334 --> 00:21:37.384
Hello.
We can hear you.
00:21:41.817 --> 00:21:43.467
Can you hear me?
00:21:43.467 --> 00:21:47.057
Yes we can
Mr. Rozelle, go ahead.
00:21:47.057 --> 00:21:49.840
I apologize.
Let me start again.
00:21:49.840 --> 00:21:52.950
During the period of public
appeals we're going through now,
00:21:52.950 --> 00:21:54.980
the public is looking to us leaders
00:21:54.980 --> 00:21:57.640
to demonstrate courage
and accountability.
00:21:57.640 --> 00:21:59.397
In that regard we expected the CPUC
00:21:59.397 --> 00:22:01.030
will demonstrate accountability
00:22:01.030 --> 00:22:03.300
by moving forward with
the controls contained
00:22:03.300 --> 00:22:06.582
in the bankruptcy decision
and the relevant proceedings.
00:22:06.582 --> 00:22:10.020
Specifically, we expect the
CPUC to restructure PG&E
00:22:10.020 --> 00:22:13.240
in order to ensure it responsibly
meets its commitments
00:22:13.240 --> 00:22:15.916
and take action to create
an open distribution grid
00:22:15.916 --> 00:22:19.120
that promotes resilience and
eliminates price manipulation
00:22:19.120 --> 00:22:21.227
on the part of the
electrical corporations.
00:22:21.227 --> 00:22:24.656
These results can be achieved
by the following three actions
00:22:24.656 --> 00:22:27.840
in accordance with appendix
of the bankruptcy decision,
00:22:27.840 --> 00:22:30.846
the sign PG&E to step five receivership.
00:22:30.846 --> 00:22:33.350
This action is fully
warranted as a result
00:22:33.350 --> 00:22:36.579
of the abysmal PG&E
wildfire mitigation plan.
00:22:36.579 --> 00:22:40.720
Immediately re-initiate
the PG&E safety culture OII
00:22:41.581 --> 00:22:45.980
as committed in section 5.7G
of the bankruptcy decision.
00:22:45.980 --> 00:22:47.590
As noted, fully implement
00:22:47.590 --> 00:22:51.040
the open access distribution
system operator concept.
00:22:51.040 --> 00:22:53.640
And finally, immediately
initiate track two
00:22:53.640 --> 00:22:56.550
of the SB1339 proceeding.
00:22:56.550 --> 00:22:58.270
Broadened the exceptions contained
00:22:58.270 --> 00:23:02.910
in public utility code 218B
to allow direct local access
00:23:02.910 --> 00:23:06.190
for micro grid development
on the retail distribution grid.
00:23:06.190 --> 00:23:07.023
Thank you.
00:23:08.300 --> 00:23:09.800
Thank you, Mr. Rozelle.
00:23:09.800 --> 00:23:11.633
Operator, the next caller please.
00:23:13.240 --> 00:23:17.982
And our next caller
is Jim Stewart (indistinct)
00:23:17.982 --> 00:23:19.093
You may go ahead.
00:23:21.020 --> 00:23:21.853
Hello.
00:23:22.713 --> 00:23:26.880
A couple of weeks ago, PG&E were guilty
00:23:26.880 --> 00:23:30.113
to 84 counts of criminal
liability for the deaths
00:23:30.113 --> 00:23:32.123
and the Paradise Fire.
00:23:33.057 --> 00:23:36.607
All of us thought the
previous CPUC Commissioner
00:23:36.607 --> 00:23:39.060
should have shared in that liability
00:23:39.060 --> 00:23:42.860
for all allowing PG&E to be so negligent
00:23:42.860 --> 00:23:47.123
as to have 100 year
old (indistinct) client fail.
00:23:48.450 --> 00:23:51.240
We thank the Commission for establishing
00:23:51.240 --> 00:23:54.570
the wildfire safety
division and attempting
00:23:54.570 --> 00:23:58.408
to prepare better plans than before.
00:23:58.408 --> 00:24:00.994
But on June 11th,
00:24:00.994 --> 00:24:05.500
you Commissioners
approved five to nothing,
00:24:05.500 --> 00:24:09.345
a totally inadequate PG&E plan.
00:24:09.345 --> 00:24:12.182
There's no requirements for installation
00:24:12.182 --> 00:24:17.182
of arcane interrupters
like San Diego has done.
00:24:17.330 --> 00:24:20.960
And it's a joke you're allowing PG&E
00:24:20.960 --> 00:24:24.970
to replace only 241 miles,
00:24:24.970 --> 00:24:28.546
other than thousands in fire districts.
00:24:28.546 --> 00:24:33.546
And then you replaced
the wires in Paradise
00:24:33.604 --> 00:24:36.389
with more bare wires.
00:24:36.389 --> 00:24:40.600
You need to immediately go back
00:24:40.600 --> 00:24:43.210
to that wildfire safety division,
00:24:43.210 --> 00:24:47.029
get them to revise
the PG&E wildfire plan,
00:24:47.029 --> 00:24:50.800
or maybe we'll see all of
you five Commissioners
00:24:50.800 --> 00:24:53.503
in court along the PG&E the next time.
00:25:01.826 --> 00:25:05.513
Thank you
Mr. Stewart. Operator.
00:25:07.569 --> 00:25:09.591
And at this
time President Batjer
00:25:09.591 --> 00:25:11.265
there are no more participants
00:25:11.265 --> 00:25:14.476
on the public comment, telephone line.
00:25:14.476 --> 00:25:16.770
Okay, we'll wait
just a minute or two,
00:25:16.770 --> 00:25:19.080
sometimes folks have trouble getting in.
00:25:19.080 --> 00:25:22.580
So just give them a couple of minutes.
00:25:23.916 --> 00:25:26.320
And it is a
reminder, if you would like
00:25:26.320 --> 00:25:28.890
to make a comment during
public comment section,
00:25:28.890 --> 00:25:31.970
you may press star
one, unmute your phone
00:25:31.970 --> 00:25:34.900
and record your name and
organization clearly when prompted.
00:25:34.900 --> 00:25:36.610
So I may introduce you.
00:25:36.610 --> 00:25:38.083
Again, that is star one.
00:25:43.964 --> 00:25:45.860
Okay, Operator,
you wanna check
00:25:45.860 --> 00:25:47.010
the line one more time?
00:25:48.255 --> 00:25:50.660
We have one
caller coming in right now.
00:25:50.660 --> 00:25:52.813
It'll be one moment
while I get their name.
00:26:13.093 --> 00:26:16.339
Our next call is from Audrey Inchonise
00:26:16.339 --> 00:26:19.283
please provide your organization
and you may go ahead.
00:26:20.470 --> 00:26:21.708
Thank you.
00:26:21.708 --> 00:26:23.310
My name is Audrey Inchonise
00:26:24.184 --> 00:26:27.190
and I'm a member of
several organizations,
00:26:27.190 --> 00:26:31.460
but also the California
Alliance for Community Energy.
00:26:31.460 --> 00:26:33.840
In this case, so I speak for myself
00:26:33.840 --> 00:26:36.440
as a long time clean energy advocate
00:26:36.440 --> 00:26:38.600
and I've been very active
00:26:38.600 --> 00:26:41.650
in the community advisory committee
00:26:41.650 --> 00:26:46.650
of the East Bay Clean Energy CCA.
00:26:49.740 --> 00:26:54.740
I was very impressed by the
Commissioner's statements
00:26:56.130 --> 00:27:00.623
at the beginning about
your commitment to equity
00:27:01.570 --> 00:27:06.570
and all the fundamental issues
and need for change raised
00:27:07.560 --> 00:27:09.560
by the black lives movement.
00:27:09.560 --> 00:27:14.080
So in that spirit, I
hope that we recognize
00:27:14.080 --> 00:27:17.430
this is a moment when
bodies like the CPUC
00:27:17.430 --> 00:27:21.683
in particular can have
a significant effect,
00:27:22.660 --> 00:27:25.020
can make significant change.
00:27:25.020 --> 00:27:27.280
If it has a clear vision
00:27:27.280 --> 00:27:31.020
of California's energy infrastructure
00:27:31.020 --> 00:27:34.640
and PG&E's future role in it.
00:27:34.640 --> 00:27:39.640
And that vision should
include two firm principles.
00:27:40.410 --> 00:27:44.530
Number one, that PG&E
should be made to narrowly
00:27:44.530 --> 00:27:47.940
and intensively focused on building out
00:27:47.940 --> 00:27:52.545
and maintaining a safe high
voltage transmission grid.
00:27:52.545 --> 00:27:57.545
This grid should be
equipped as is not now
00:27:57.710 --> 00:28:01.010
with the most upto date smart technology
00:28:01.010 --> 00:28:06.010
that can enable it to
decouple short segments
00:28:06.840 --> 00:28:08.800
of line instantaneously.
00:28:08.800 --> 00:28:10.890
So that's principle number one.
00:28:10.890 --> 00:28:15.890
And number two should
be that this firm vision
00:28:16.530 --> 00:28:20.070
of where we're headed should be
00:28:20.070 --> 00:28:24.090
to prioritize community
development and control
00:28:24.090 --> 00:28:27.743
of local distributed,
renewable energy resources.
00:28:28.750 --> 00:28:32.920
The many and growing
community choice energy programs
00:28:33.900 --> 00:28:38.157
should be regarded as
equal partners in the future.
00:28:38.157 --> 00:28:40.067
Thank you very much.
00:28:40.067 --> 00:28:42.200
Thank you Audrey.
00:28:42.200 --> 00:28:44.063
Operator, the next caller, please.
00:28:45.590 --> 00:28:46.780
And President Batjer,
00:28:46.780 --> 00:28:48.280
there are no more participants
00:28:48.280 --> 00:28:50.180
on the public comment, telephone line.
00:28:51.170 --> 00:28:53.320
Okay, you wanna make
an announcement one?
00:28:54.680 --> 00:28:56.422
Absolutely.
(Batjer mumbles)
00:28:56.422 --> 00:28:58.890
Again, if you would
like to make a comment,
00:28:58.890 --> 00:29:01.607
please press star one on mute your phone
00:29:01.607 --> 00:29:03.920
and record your name and organization.
00:29:03.920 --> 00:29:07.563
Again, that is star one
to make a comment.
00:29:14.120 --> 00:29:16.103
Okay, Operator
wanna check the lines?
00:29:18.049 --> 00:29:21.307
We do have one
coming in right now in a moment.
00:29:35.127 --> 00:29:39.433
And our next caller is
Blair Beekman an individual.
00:29:40.300 --> 00:29:41.200
Your line is open.
00:29:43.120 --> 00:29:45.133
Hello, can you hear me?
00:29:46.020 --> 00:29:47.151
Yes, we can.
Thank you.
00:29:47.151 --> 00:29:51.780
Thank you, I'll figure
it out this in the future,
00:29:51.780 --> 00:29:52.660
but thank you.
00:29:52.660 --> 00:29:56.427
This is my first time
addressing the CPUC, thank you.
00:29:56.427 --> 00:29:58.223
For the last several years,
00:29:58.223 --> 00:30:00.094
PG&E seems to have
focused on a new level
00:30:00.094 --> 00:30:02.980
of economic infrastructure
building and development,
00:30:02.980 --> 00:30:04.960
to control prior use.
00:30:04.960 --> 00:30:08.629
It felt like a harbinger,
not an impetus in itself
00:30:08.629 --> 00:30:11.960
for the current worldwide
COVID-19 pandemic.
00:30:11.960 --> 00:30:14.440
Why is PG&E been acting this way
00:30:14.440 --> 00:30:16.900
when many good people
have been patiently studying
00:30:16.900 --> 00:30:19.380
for years and decades
now how to transition
00:30:19.380 --> 00:30:21.660
into a decent mark humanistic feature,
00:30:21.660 --> 00:30:25.397
a positive, sustainable local
community energy practice?
00:30:25.397 --> 00:30:27.640
The ACL use surveillance
and technology ordinance
00:30:27.640 --> 00:30:29.390
as part of a series of guidelines,
00:30:29.390 --> 00:30:33.320
studies and legal precedents
created with the UN,
00:30:33.320 --> 00:30:35.630
State of California among others
00:30:35.630 --> 00:30:37.520
that is now developing in Bay Area
00:30:37.520 --> 00:30:39.783
and across the country
for the past several years.
00:30:39.783 --> 00:30:43.490
This is how more open
responsible technology uses
00:30:43.490 --> 00:30:46.160
with good civil rights
and civil protection ideas
00:30:46.160 --> 00:30:47.350
can help everyday people
00:30:47.350 --> 00:30:49.670
in their local government
work together towards
00:30:49.670 --> 00:30:51.640
more open and share practices.
00:30:51.640 --> 00:30:54.300
Interestingly if efforts
have shared oversight
00:30:54.300 --> 00:30:58.450
in open democratic ideals can
bring organization efficiency,
00:30:58.450 --> 00:31:01.330
consensus, building, and
enjoyment and learning
00:31:01.330 --> 00:31:05.000
for all sides in a local
community process
00:31:05.000 --> 00:31:06.500
and ideas of piece.
00:31:06.500 --> 00:31:08.110
As it is asking how to address
00:31:08.110 --> 00:31:10.320
and how to endure this continual war
00:31:10.320 --> 00:31:12.950
and unstable shock doctrine practices.
00:31:12.950 --> 00:31:15.960
And from this, how do address
longterm, social planning,
00:31:15.960 --> 00:31:18.520
social engineering and
infrastructure building
00:31:18.520 --> 00:31:22.630
that use large corporate
models of disaster capitalism.
00:31:22.630 --> 00:31:24.990
This collective care of
good democratic practices
00:31:24.990 --> 00:31:26.830
at the local level can work to develop
00:31:26.830 --> 00:31:29.020
a more decent reasoning, good oversight,
00:31:29.020 --> 00:31:31.905
and better stability at the
national, international level,
00:31:31.905 --> 00:31:34.547
and even with the UN and the WHO
00:31:34.547 --> 00:31:36.430
and better connect to everyday people
00:31:36.430 --> 00:31:38.675
with the process of
government on all levels.
00:31:38.675 --> 00:31:43.050
It is from this to conclude
more open honest forms
00:31:43.050 --> 00:31:44.980
of conversation and practices.
00:31:44.980 --> 00:31:46.735
We can then start to better respect
00:31:46.735 --> 00:31:49.991
what can be the ideas that
more positive sustainability,
00:31:49.991 --> 00:31:52.870
longterm, social planning and stability
00:31:52.870 --> 00:31:54.334
for life on this planet.
00:31:54.334 --> 00:31:55.167
Thank you.
00:31:55.167 --> 00:31:58.561
I hope you look into the
ACLU ideas and good luck.
00:31:58.561 --> 00:32:02.700
Try to take care of the
Santa Cruz mountain area
00:32:02.700 --> 00:32:05.220
and look after it and
make sure it does well
00:32:05.220 --> 00:32:07.927
in the next few years
and safe and healthy.
00:32:07.927 --> 00:32:09.284
Thank you.
00:32:09.284 --> 00:32:10.117
Thank you.
00:32:11.070 --> 00:32:12.740
Operator, is there
anybody else on the line?
00:32:12.740 --> 00:32:15.273
I have
no additional parties
00:32:15.273 --> 00:32:17.643
on the public telephone
line at this time.
00:32:20.790 --> 00:32:22.943
Okay, (mumbles)
00:32:32.379 --> 00:32:34.763
Operator, you wanna check one last time?
00:32:36.202 --> 00:32:37.486
And a final reminder,
00:32:37.486 --> 00:32:39.238
if you would like to make a comment,
00:32:39.238 --> 00:32:41.473
please unmute your phone, press star one
00:32:41.473 --> 00:32:43.448
and record your first and last name
00:32:43.448 --> 00:32:45.550
and your organization clearly
00:32:45.550 --> 00:32:46.404
so I may introduce you.
00:32:46.404 --> 00:32:49.133
Again, that is star one
to make a comment.
00:32:57.366 --> 00:33:01.949
And we do have one incoming
caller, one moment, please.
00:33:23.772 --> 00:33:27.979
And our next caller is
Chris Gilbert as an individual.
00:33:27.979 --> 00:33:29.870
Your line is open.
00:33:29.870 --> 00:33:31.010
Thank you.
00:33:31.010 --> 00:33:32.720
I'm calling from Berkeley, California.
00:33:32.720 --> 00:33:36.500
I wanna urge the CPUC
to not let PG&E slide
00:33:36.500 --> 00:33:40.870
on a maintenance that has gone undone.
00:33:40.870 --> 00:33:44.070
In particular, I see one thing here
00:33:44.070 --> 00:33:47.350
about installing covered connectors
00:33:47.350 --> 00:33:52.350
as being only required 241
miles a year out of 25,000 miles.
00:33:53.454 --> 00:33:57.710
100 years is not acceptable
to get this job done.
00:33:57.710 --> 00:34:02.710
So generally PG&E
needs to have their feet held
00:34:02.950 --> 00:34:06.040
to the fire to get up to
speed on their maintenance.
00:34:06.040 --> 00:34:06.873
Thank you.
00:34:08.426 --> 00:34:13.290
Okay. Thank you.
00:34:13.290 --> 00:34:15.310
Operator, anyone left on the line?
00:34:15.310 --> 00:34:18.553
And no one
left on the line at this time.
00:34:19.840 --> 00:34:22.390
Okay, with no more
callers on the line,
00:34:22.390 --> 00:34:24.901
the public comment period is now closed.
00:34:24.901 --> 00:34:26.463
Thank you Operator.
00:34:27.800 --> 00:34:31.550
Moving on to our agenda,
00:34:31.550 --> 00:34:34.723
the held and withdrawn items for today.
00:34:36.032 --> 00:34:40.863
Here are today's meeting agenda items.
00:34:42.670 --> 00:34:45.460
Item number two has been withdrawn.
00:34:45.460 --> 00:34:48.220
Item number three has been withdrawn.
00:34:48.220 --> 00:34:53.220
Item number five has been
held to our meeting on 7/16/20.
00:34:54.026 --> 00:34:59.026
Item 15 has been held
for our meeting on 7/16/20.
00:34:59.843 --> 00:35:04.170
Item 18 will be taken up
with a regular agenda today.
00:35:04.170 --> 00:35:09.170
Item 27 has been held
until our meeting on 7/16/20.
00:35:10.240 --> 00:35:14.353
Items 30 has been held
until our meeting on 7/16/20
00:35:14.353 --> 00:35:19.353
Item 31 has been held
into our meeting on 7/16/20.
00:35:19.675 --> 00:35:24.643
Item 43 has been held
until our meeting on 7/16/20.
00:35:24.643 --> 00:35:29.350
Item 45 will be taken up with
the Consent Agenda today.
00:35:29.350 --> 00:35:34.232
Item 56 will be taken up with
the Consent Agenda today.
00:35:34.232 --> 00:35:37.983
We will not take up the
consent items is a motion.
00:35:39.948 --> 00:35:40.781
Is there a move.
00:35:41.780 --> 00:35:43.050
Second.
Second.
00:35:43.050 --> 00:35:44.790
Thank you. It's been
moved and seconded
00:35:44.790 --> 00:35:47.210
for the Consent Agenda items.
00:35:47.210 --> 00:35:49.634
So the Agenda Clerk,
please call the roll.
00:35:49.634 --> 00:35:51.410
Commissioner Shiroma.
00:35:52.340 --> 00:35:53.173
Aye
00:35:53.173 --> 00:35:55.580
Commissioner
Martha Guzman Aceves.
00:35:55.580 --> 00:35:56.753
Aye.
00:35:56.753 --> 00:35:58.990
Commissioner Randolph.
00:35:58.990 --> 00:36:00.024
Yes.
00:36:00.024 --> 00:36:02.290
Commissioner Rechtschaffen
00:36:02.290 --> 00:36:03.470
Yes.
00:36:03.470 --> 00:36:05.335
President Batjer.
00:36:05.335 --> 00:36:06.330
Aye.
00:36:06.330 --> 00:36:10.113
The Consent Agenda items
have been passed unanimously.
00:36:11.615 --> 00:36:14.773
And we will now move on
to the regular agenda items.
00:36:16.030 --> 00:36:17.863
We will take up item 18,
00:36:20.347 --> 00:36:24.431
and Commissioner Randolph
that is your item to present.
00:36:24.431 --> 00:36:26.700
Hi, thank you very much.
00:36:26.700 --> 00:36:28.570
This proposed decision is our
00:36:28.570 --> 00:36:30.480
yearly resource adequacy decision
00:36:30.480 --> 00:36:33.330
that Adopts Local Capacity requirements
00:36:33.330 --> 00:36:36.810
for 2021 through 2023,
00:36:36.810 --> 00:36:40.380
and flexible capacity
requirements for 2021.
00:36:40.380 --> 00:36:42.839
And in this instance
adopts several proposals
00:36:42.839 --> 00:36:45.937
to refine the resource adequacy program.
00:36:45.937 --> 00:36:48.492
The decision addresses all the capacity,
00:36:48.492 --> 00:36:52.630
accounting conventions several
different types of resources.
00:36:52.630 --> 00:36:55.050
It adopts the consensus methodology
00:36:55.050 --> 00:36:58.089
for counting hydro resources,
00:36:58.089 --> 00:37:02.200
which was developed by a
working group of the parties.
00:37:02.200 --> 00:37:05.400
And the goal is to provide a
more accurate measurement
00:37:05.400 --> 00:37:07.510
of the capacity that hydro resources
00:37:07.510 --> 00:37:09.606
can be expected to provide.
00:37:09.606 --> 00:37:14.606
We also address the
qualified capacity methodology
00:37:14.720 --> 00:37:19.330
in front of the meter solar
battery hybrid resources
00:37:19.330 --> 00:37:22.570
in decision 20-01-004.
00:37:22.570 --> 00:37:25.100
We adopted an interim for determining
00:37:25.100 --> 00:37:28.270
the QC value of in front
of the meter resources
00:37:28.270 --> 00:37:30.410
that have charging restrictions related
00:37:30.410 --> 00:37:31.663
to the investment tax credit
00:37:31.663 --> 00:37:34.055
and single point of interconnection.
00:37:34.055 --> 00:37:36.450
Here, we adopted the proposal
00:37:36.450 --> 00:37:38.230
of Southern California Edison that
00:37:38.230 --> 00:37:40.490
has broad support among the parties
00:37:40.490 --> 00:37:42.900
that takes into account the
amount of energy needed
00:37:42.900 --> 00:37:46.830
to charge the storage device
from the renewable resource
00:37:46.830 --> 00:37:49.440
when estimating the
capacity value of hybrid
00:37:49.440 --> 00:37:51.073
and co located resources.
00:37:52.390 --> 00:37:54.610
With regard to propose to treat
00:37:55.480 --> 00:37:57.580
hybrid solar plus storage resources
00:37:57.580 --> 00:37:59.680
that are behind the customer meter.
00:37:59.680 --> 00:38:02.319
The same as in front
of the meter resources,
00:38:02.319 --> 00:38:05.560
we agree with parties
and the working group
00:38:05.560 --> 00:38:08.890
that numerous issues
need to be addressed first.
00:38:08.890 --> 00:38:10.921
As we discussed at our last meeting,
00:38:10.921 --> 00:38:14.853
when we adopted the
central procurement decision,
00:38:16.020 --> 00:38:18.440
some of the most critical resources
00:38:18.440 --> 00:38:21.790
or critical issues around
these resources involve
00:38:22.970 --> 00:38:24.380
both the energy Commission
00:38:24.380 --> 00:38:28.430
and the California
Independent System Operator.
00:38:28.430 --> 00:38:30.370
Currently behind the meter resources
00:38:30.370 --> 00:38:31.801
are load modifying resources that
00:38:31.801 --> 00:38:36.801
are counted to reduce
the load that CC analyzes
00:38:37.010 --> 00:38:38.490
and provides to CAISO,
00:38:38.490 --> 00:38:41.418
which then considers
the load when developing
00:38:41.418 --> 00:38:44.180
the capacity requirements
that we're adopting
00:38:44.180 --> 00:38:45.700
in this decision.
00:38:45.700 --> 00:38:49.750
So we need to make
sure that these resources
00:38:49.750 --> 00:38:53.464
are not counted in the load forecast
00:38:53.464 --> 00:38:58.464
and then counted again in the RA program
00:38:59.500 --> 00:39:01.770
so that you end up with
less resources overall,
00:39:01.770 --> 00:39:04.853
because you've counted
these particular resources twice.
00:39:05.930 --> 00:39:06.940
In addition,
00:39:06.940 --> 00:39:10.160
the California Independent
System Operator needs to be able
00:39:10.160 --> 00:39:13.650
to see these resources and
dispatch them to meet load.
00:39:13.650 --> 00:39:16.390
And that capacity is
not available right now.
00:39:16.390 --> 00:39:19.780
So simply assigning QC
values to these resources
00:39:19.780 --> 00:39:22.700
is not the only step we need to take
00:39:22.700 --> 00:39:25.573
for them to fully
participate in the RA market.
00:39:27.230 --> 00:39:29.580
And there's other
issues that are identified
00:39:29.580 --> 00:39:31.011
in the decision as well.
00:39:31.011 --> 00:39:33.420
But the Commission is
interested in furthering
00:39:33.420 --> 00:39:34.899
this discussion and to that end,
00:39:34.899 --> 00:39:39.560
the decision requests
CAISO and the CEC participate
00:39:39.560 --> 00:39:43.180
in a joint public workshop
later this calendar year
00:39:43.180 --> 00:39:47.360
to consider what issues and
concerns those entities have
00:39:47.360 --> 00:39:50.340
and consider the steps
that would be necessary
00:39:51.620 --> 00:39:54.580
in order to allow behind
the meter resources
00:39:54.580 --> 00:39:56.763
to participate in the RA market.
00:39:58.290 --> 00:40:01.292
I will note, as I
mentioned a moment ago,
00:40:01.292 --> 00:40:03.980
hybrid solar plus storage resources
00:40:04.830 --> 00:40:07.240
that are in front of the
meter can certainly participate
00:40:07.240 --> 00:40:09.810
in the market and behind
the meter resources
00:40:09.810 --> 00:40:14.187
can continue to participate as
demand response resources.
00:40:14.187 --> 00:40:16.080
We also made modifications
00:40:16.080 --> 00:40:18.600
to the Maximum Cumulative Capacity
00:40:18.600 --> 00:40:22.600
or MCC buckets to
address increasing reliance
00:40:22.600 --> 00:40:26.483
on these limited resources
to meet reliability needs.
00:40:27.480 --> 00:40:30.185
The demand response
permitted in the MCC buckets
00:40:30.185 --> 00:40:33.279
in this decision exceeds the
amount in the market right now.
00:40:33.279 --> 00:40:37.162
And we feel like it leaves a
lot of head room for growth
00:40:37.162 --> 00:40:40.350
in demand response resources.
00:40:40.350 --> 00:40:41.510
We do recognize that there
00:40:41.510 --> 00:40:44.350
are still some issues
around the MCC buckets.
00:40:44.350 --> 00:40:46.440
And so we're allowing for that topic
00:40:46.440 --> 00:40:51.440
to be fully considered in
track three of this proceeding.
00:40:53.290 --> 00:40:56.540
Another proposal that I wanna highlight
00:40:56.540 --> 00:40:59.702
is changes to the
existing penalty structure.
00:40:59.702 --> 00:41:02.408
We adopt the energy
divisions proposal to double
00:41:02.408 --> 00:41:06.330
the penalty for system deficiencies
during the summer months
00:41:06.330 --> 00:41:08.930
as capacity prices in the
summer months are higher
00:41:08.930 --> 00:41:10.743
than the current penalty price.
00:41:12.450 --> 00:41:16.695
So we have been very,
very busy in the RA world
00:41:16.695 --> 00:41:18.023
over the last several months.
00:41:18.023 --> 00:41:21.233
And I wanna thank the parties
and the Commission staff
00:41:21.233 --> 00:41:22.990
for their incredible work.
00:41:22.990 --> 00:41:25.430
Navigating three proposed decisions
00:41:25.430 --> 00:41:27.707
in two different
dockets is no easy task.
00:41:27.707 --> 00:41:30.343
Let alone decisions as technical, thorny
00:41:30.343 --> 00:41:33.783
and consequential as
our last fee has been.
00:41:34.620 --> 00:41:36.470
Resource adequate see is really whether
00:41:36.470 --> 00:41:37.830
the rubber meets the road.
00:41:37.830 --> 00:41:41.120
As we ensure that we
meet our reliability needs
00:41:41.120 --> 00:41:43.839
while making progress toward
our greenhouse gas goals.
00:41:43.839 --> 00:41:46.918
These are really difficult
and challenging issues
00:41:46.918 --> 00:41:49.713
as the market Peytons and LAC find that
00:41:49.713 --> 00:41:53.840
it is costing more to procure
the capacity they need.
00:41:53.840 --> 00:41:55.770
There are complicated
issues that require
00:41:55.770 --> 00:41:58.320
a huge amount of
inter-agency cooperation
00:41:58.320 --> 00:42:00.623
as my discussion about the hybrid behind
00:42:00.623 --> 00:42:03.981
the meter resources in indicates.
00:42:03.981 --> 00:42:06.580
And everyone
participating in this market
00:42:06.580 --> 00:42:10.917
has very, very strong ideas
about the right solutions.
00:42:10.917 --> 00:42:13.729
Our staff is working very hard to try
00:42:13.729 --> 00:42:15.132
to find those right solutions
00:42:15.132 --> 00:42:18.600
and sometimes take some
slings and arrows along the way.
00:42:18.600 --> 00:42:20.897
And maybe not all of those solutions
00:42:20.897 --> 00:42:23.270
will turn out to be the exact right ones
00:42:23.270 --> 00:42:25.525
and we'll need to make some adjustments.
00:42:25.525 --> 00:42:28.220
But one thing I am absolutely sure of
00:42:28.220 --> 00:42:30.920
is that our stuff are incredibly smart
00:42:30.920 --> 00:42:35.060
and incredibly dedicated
and doing a fabulous job,
00:42:35.060 --> 00:42:37.810
working incredibly
hard, trying to consider all
00:42:37.810 --> 00:42:40.230
the points of view and
navigate the right path.
00:42:40.230 --> 00:42:43.730
And I just want to express
how incredibly proud
00:42:43.730 --> 00:42:46.650
I'm to be able to work with them.
00:42:46.650 --> 00:42:48.810
So my thanks to administrative law,
00:42:48.810 --> 00:42:53.810
Judge Debbie Chiv and
our energy division RA team,
00:42:54.406 --> 00:42:59.406
Michele Kito, Jaime Gannon,
Simone Brandt, Nick Dahlberg,
00:42:59.980 --> 00:43:04.277
Lily Chow, Judith Ikle, Pete Skala,
00:43:04.277 --> 00:43:08.140
our legal division
support Elizabeth Dorman,
00:43:08.140 --> 00:43:10.317
Jack Mulligan, Carrie Pratt,
00:43:10.317 --> 00:43:12.807
my BK partner, President Batjer,
00:43:12.807 --> 00:43:14.820
and her Advisor Dave Peck,
00:43:14.820 --> 00:43:19.230
and my Chief of Staff and
my Advisor Anand Durvasula.
00:43:19.230 --> 00:43:20.557
So thank you very much.
00:43:20.557 --> 00:43:23.163
And I ask for your
support on this decision.
00:43:25.700 --> 00:43:28.294
Thank you very much
Commissioner Randolph.
00:43:28.294 --> 00:43:33.130
Are there any comments on
item 18 from the Commissioners?
00:43:33.130 --> 00:43:37.215
Yes, Commissioner Guzman
Aceves, I can hardly see,
00:43:37.215 --> 00:43:40.130
so thank you for waving your arm.
00:43:40.130 --> 00:43:41.158
Oh, good.
00:43:41.158 --> 00:43:42.758
(mumbles)
00:43:42.758 --> 00:43:43.591
Thank you very much.
00:43:43.591 --> 00:43:46.020
And thank you Commissioner Randolph
00:43:46.020 --> 00:43:49.630
for all the tremendous
work on particularly
00:43:49.630 --> 00:43:52.020
these annual decisions
that are on this clock
00:43:52.020 --> 00:43:55.980
of trying to stay up
to speed with changes
00:43:55.980 --> 00:43:57.800
in the world, changes in the weather,
00:43:57.800 --> 00:44:01.235
changes in infrastructure,
changes in technics,
00:44:01.235 --> 00:44:02.790
changes in LACs.
00:44:03.857 --> 00:44:06.900
There really is one of
the areas, as you stated,
00:44:06.900 --> 00:44:09.440
within our energy division,
00:44:09.440 --> 00:44:12.509
where we are so blessed to
have the team that we have.
00:44:12.509 --> 00:44:15.505
I often joke with them,
00:44:15.505 --> 00:44:18.270
primarily female led team, I might add
00:44:18.270 --> 00:44:23.270
that they are really the
epitome of a public service
00:44:23.943 --> 00:44:26.743
because they could be making
a lot more money elsewhere.
00:44:27.820 --> 00:44:29.210
So I just wanna second that,
00:44:29.210 --> 00:44:32.720
and really they are taking
on the biggest challenge,
00:44:32.720 --> 00:44:35.975
which is meeting our
continuation of reliability
00:44:35.975 --> 00:44:38.840
while having to face this ambitious goal
00:44:38.840 --> 00:44:42.415
of 100% clean energy by 2045.
00:44:42.415 --> 00:44:46.130
And why did you just...
00:44:46.130 --> 00:44:48.640
Even with all of that
great acknowledgement
00:44:48.640 --> 00:44:49.473
and consideration,
00:44:49.473 --> 00:44:52.140
I did wanna highlight one of the areas
00:44:52.140 --> 00:44:52.980
that you talked about,
00:44:52.980 --> 00:44:56.113
which is the hybrid
behind the meter resources.
00:44:58.912 --> 00:45:01.850
As the assigned Commissioner
on the NEM proceeding
00:45:01.850 --> 00:45:05.160
and also on demand
response in some of these
00:45:05.160 --> 00:45:08.150
demand response have
been largely behind the meters.
00:45:08.150 --> 00:45:10.720
In fact, some of our
largest utility run programs
00:45:10.720 --> 00:45:11.943
are behind the meter.
00:45:11.943 --> 00:45:16.943
And there's a lot hard
work and a lot of truth
00:45:17.100 --> 00:45:20.260
that needs to come with these
behind the meter resources,
00:45:20.260 --> 00:45:24.380
playing into the supply
side about performance
00:45:24.380 --> 00:45:26.797
and about putting the right parameters
00:45:26.797 --> 00:45:29.530
in our regulatory structure,
00:45:29.530 --> 00:45:33.510
particularly for the
demand response side.
00:45:33.510 --> 00:45:36.170
I do see the hybrid resources though,
00:45:36.170 --> 00:45:40.500
solar plus storage,
primarily are much more real
00:45:40.500 --> 00:45:43.304
and tangible assets that
we have an opportunity
00:45:43.304 --> 00:45:48.304
to really develop
our rules to really see
00:45:48.540 --> 00:45:50.408
the performance take place.
00:45:50.408 --> 00:45:53.440
And I also wanted to
highlight one of the factors
00:45:53.440 --> 00:45:56.020
that was pointed out in
the decision that needs
00:45:56.020 --> 00:45:59.350
to be resolved is to double subsidy.
00:45:59.350 --> 00:46:02.246
And this is a bit of
almost a paradox for me
00:46:02.246 --> 00:46:05.150
because when I see the NEM program,
00:46:05.150 --> 00:46:06.630
as you mentioned, Commissioner Randolph,
00:46:06.630 --> 00:46:09.350
it is largely a load reduction program,
00:46:09.350 --> 00:46:13.100
both on system and in the local areas,
00:46:13.100 --> 00:46:15.803
but it's not necessarily
something that's intentional.
00:46:17.200 --> 00:46:20.280
I would, for instance,
love to see a capacity tariff
00:46:20.280 --> 00:46:22.259
for these hybrid resources.
00:46:22.259 --> 00:46:27.259
It actually provided value to
the system instead of NEM,
00:46:27.283 --> 00:46:32.140
something that actually
aggregated that value was locational
00:46:32.140 --> 00:46:35.070
and had the grounders
in place to make sure
00:46:35.070 --> 00:46:40.070
that they were ready and
available during reliability needs.
00:46:40.220 --> 00:46:45.220
So I really wanna thank
the decision for clarifying
00:46:45.770 --> 00:46:49.210
the commitment to
resolving these issues,
00:46:49.210 --> 00:46:52.341
to pointing out, not just
that they have real concerns
00:46:52.341 --> 00:46:54.715
with performance and availability,
00:46:54.715 --> 00:46:57.110
but we're at this moment where
00:46:58.080 --> 00:47:00.060
it is a small enough percentage
00:47:00.060 --> 00:47:03.390
where we can be creative
and we can demand,
00:47:03.390 --> 00:47:04.450
like I said, performance.
00:47:04.450 --> 00:47:07.890
So I look forward to
working on those issues,
00:47:07.890 --> 00:47:11.424
especially as they
interrelate within NEM tariffs
00:47:11.424 --> 00:47:14.720
and making sure we
can develop some options
00:47:14.720 --> 00:47:17.720
that are really providing
a system benefit
00:47:17.720 --> 00:47:21.300
for rate pairs and
providing that compensation
00:47:21.300 --> 00:47:24.363
in a clear and not a
double counting way.
00:47:25.300 --> 00:47:28.780
I also wanted to thank
you for making it clear
00:47:28.780 --> 00:47:32.510
that the workshop to
further this amongst
00:47:32.510 --> 00:47:35.700
the multi agencies will take
place by the end of the year.
00:47:35.700 --> 00:47:38.683
And I certainly look forward
to participating in that.
00:47:40.550 --> 00:47:41.740
And finally, one concern.
00:47:41.740 --> 00:47:45.410
I just did wanna urge the
parties to resolve particularly
00:47:45.410 --> 00:47:48.610
the independent system operator PG&E
00:47:48.610 --> 00:47:50.750
is the enormous increase
00:47:50.750 --> 00:47:55.750
in the greater Bay Area
obligation of 1,850 megawatts,
00:47:56.050 --> 00:47:59.220
nearly 2000 megawatts
is the largest increase
00:47:59.220 --> 00:48:01.610
that we've seen in local requirements
00:48:01.610 --> 00:48:04.253
in the past 13 years, I believe.
00:48:05.290 --> 00:48:08.000
It's something that was not...
00:48:09.655 --> 00:48:13.410
The way that the ISO
developed that new threshold
00:48:13.410 --> 00:48:14.490
was not unanimous.
00:48:14.490 --> 00:48:17.640
As you said, people have
very different perspectives on it.
00:48:17.640 --> 00:48:20.058
PG&E, (indistinct) and
others did not agree
00:48:20.058 --> 00:48:22.700
with the conservative
approach that the ISO took
00:48:22.700 --> 00:48:25.370
in determining this number.
00:48:25.370 --> 00:48:27.470
And we're taking a conservative approach
00:48:27.470 --> 00:48:29.150
for the first year here.
00:48:29.150 --> 00:48:31.849
I really hope that the
parties can come together
00:48:31.849 --> 00:48:35.710
and resolve and provide
some alternative pathways,
00:48:35.710 --> 00:48:40.270
then this additional
Casper into the repairs.
00:48:40.270 --> 00:48:43.130
So I really wanna urge
to the ISO in particular
00:48:43.130 --> 00:48:47.800
to work with PG&E to
come quickly with a potential
00:48:47.800 --> 00:48:52.118
to alleviate that large
increase in the obligation.
00:48:52.118 --> 00:48:54.290
Thank you very much
for all of your work.
00:48:54.290 --> 00:48:56.490
And I look forward to
supporting this today.
00:48:58.080 --> 00:49:00.048
Thank you, Commissioner
Guzman Aceves.
00:49:00.048 --> 00:49:03.083
Are there any other comments item 18?
00:49:05.490 --> 00:49:07.483
Yes, Commissioner Shiroma.
00:49:09.076 --> 00:49:12.460
Thank you, President Batjer.
00:49:12.460 --> 00:49:15.810
I also add my thanks to
Commissioner Randolph
00:49:15.810 --> 00:49:17.620
on your continued leadership
00:49:17.620 --> 00:49:21.286
on our very complex
resource adequacy program.
00:49:21.286 --> 00:49:24.433
It's complex for a
reason as you've outlined.
00:49:25.410 --> 00:49:28.620
And I want to thank
Judge Chiv, Michelle Quito
00:49:28.620 --> 00:49:31.944
and Jaime Gannon for
their work with my office,
00:49:31.944 --> 00:49:34.440
as we reviewed this decision
00:49:34.440 --> 00:49:37.726
and all that our resource
adequacy staff do
00:49:37.726 --> 00:49:39.761
in a very tight timeframe.
00:49:39.761 --> 00:49:42.450
Again our local
capacity requirements out
00:49:42.450 --> 00:49:44.540
in a timely fashion.
00:49:44.540 --> 00:49:46.730
I'm in support item 18.
00:49:46.730 --> 00:49:50.342
In particular, I support the
strategy of additional study
00:49:50.342 --> 00:49:53.217
as the proposed
decision takes with regard
00:49:53.217 --> 00:49:55.734
to the local capacity requirements
00:49:55.734 --> 00:50:00.400
for the greater Bay
Area for 2022 and 2023,
00:50:00.400 --> 00:50:02.885
in order to both balance the liability
00:50:02.885 --> 00:50:07.710
and protect rate pairs from
the excessive (indistinct)
00:50:07.710 --> 00:50:11.120
In addition, I echo
what others have said.
00:50:11.120 --> 00:50:13.760
I support the thoughtful approach
00:50:13.760 --> 00:50:16.300
that the proposed
decision takes with regard
00:50:16.300 --> 00:50:19.980
to the integration of
behind the meter storage
00:50:19.980 --> 00:50:23.737
and solar resources
into the supply side rubric
00:50:23.737 --> 00:50:25.893
of the resource adequacy program.
00:50:26.900 --> 00:50:30.420
This careful study and
work through the processes,
00:50:30.420 --> 00:50:32.732
between the workshop in coordination
00:50:32.732 --> 00:50:34.972
with the California Energy Commission
00:50:34.972 --> 00:50:38.020
and the California Independent
System Operator, the CAISO
00:50:38.942 --> 00:50:43.340
will ensure that these
resources are able
00:50:43.340 --> 00:50:47.490
to consistently
provide reliability value
00:50:47.490 --> 00:50:49.896
to rate pairs during peak demand periods
00:50:49.896 --> 00:50:54.540
and that rate pairs aren't
paying for these resources twice.
00:50:54.540 --> 00:50:59.540
Very important to have
the information technology,
00:51:00.290 --> 00:51:02.950
the electrical engineering,
00:51:02.950 --> 00:51:07.950
and also the behavior of
folks who want to participate
00:51:11.398 --> 00:51:15.070
in the resource adequacy rubric
00:51:15.070 --> 00:51:17.816
so that there is true reliability.
00:51:17.816 --> 00:51:20.350
I'm looking forward to
seeing these developments
00:51:20.350 --> 00:51:23.010
and working to coordinate these efforts
00:51:23.010 --> 00:51:25.200
with our Markovitz work down the road
00:51:25.200 --> 00:51:28.494
and recondition on the
micro proceeding back.
00:51:28.494 --> 00:51:31.669
that we can partnered with Batjer
00:51:31.669 --> 00:51:35.853
and these things are very
much on the minds of our team
00:51:37.143 --> 00:51:39.560
and energy division.
00:51:39.560 --> 00:51:43.520
And we will work in partnership with
00:51:43.520 --> 00:51:46.107
all of these various proceedings
00:51:46.107 --> 00:51:50.924
that are looking supervisor
opportunity and the liability.
00:51:50.924 --> 00:51:52.011
Thank you.
00:51:52.011 --> 00:51:54.110
Thank you,
Commissioner Shiroma.
00:51:54.110 --> 00:51:56.460
Yes, Commissioner Rechtschaffen.
00:51:57.780 --> 00:52:01.150
Thank you. I support
today's decision.
00:52:01.150 --> 00:52:03.270
I thank you, Commissioner Randolph,
00:52:03.270 --> 00:52:06.550
as you put it as an understatement that
00:52:06.550 --> 00:52:10.010
the resource adequacy team
has been busy and you have...
00:52:10.010 --> 00:52:12.450
And I won't repeat all
the echoes of thanks,
00:52:12.450 --> 00:52:16.920
but the team that works on
this is top notch professional.
00:52:16.920 --> 00:52:19.053
In addition to taking a
lot of slings and arrows
00:52:19.053 --> 00:52:20.713
and criticism from stakeholders,
00:52:20.713 --> 00:52:23.870
they have to deal with a
lot of inquiries and demands
00:52:23.870 --> 00:52:26.737
from all the Commissioners
00:52:26.737 --> 00:52:30.500
and they do an excellent
job of responding.
00:52:30.500 --> 00:52:32.400
I wanted to comment just on a couple
00:52:32.400 --> 00:52:35.240
of aspects of the decision.
00:52:35.240 --> 00:52:37.970
One is the behind the
meter or hybrid resources
00:52:37.970 --> 00:52:41.530
that Commissioner Guzma
Aceves and Shiroma mentioned.
00:52:41.530 --> 00:52:44.070
And I wanna thank Dave
McCord for raising this
00:52:44.070 --> 00:52:47.526
as well in his public comments.
00:52:47.526 --> 00:52:48.640
I'm very appreciative,
00:52:48.640 --> 00:52:50.760
and thank you, Commissioner Randolph
00:52:50.760 --> 00:52:55.760
and Judge Chiv for any
the decision or commitment
00:52:55.810 --> 00:52:59.670
to move quickly in this area to
have a joint agency workshop
00:52:59.670 --> 00:53:02.680
to address the
methodological issues that need
00:53:02.680 --> 00:53:06.910
to be addressed by the various agencies.
00:53:06.910 --> 00:53:09.770
I wanna echo what Commissioner
Guzman Aceves mentioned
00:53:09.770 --> 00:53:13.110
that these behind the meter resources,
00:53:13.110 --> 00:53:15.665
these hybrid resources
do have real potential
00:53:15.665 --> 00:53:18.490
to play in the RA market.
00:53:18.490 --> 00:53:23.370
We're looking at a future with
even more of the resources
00:53:23.370 --> 00:53:27.310
as people develop micro
grid, prepare for PSPS events
00:53:27.310 --> 00:53:32.310
and take other steps
to clean energy goals.
00:53:32.430 --> 00:53:36.750
I wanna personally
urge us and our partners
00:53:36.750 --> 00:53:39.088
at the energy Commission at the ISO
00:53:39.088 --> 00:53:41.360
not to be put off by the challenges.
00:53:41.360 --> 00:53:43.130
I think we can meet them.
00:53:43.130 --> 00:53:47.540
I think we can design rules
and make us comfortable
00:53:47.540 --> 00:53:52.540
that the hybrid behind
these resources enact reliably
00:53:53.120 --> 00:53:58.120
can perform in the same way
as other supply side resources
00:53:58.360 --> 00:54:01.012
that they can have adequate visibility
00:54:01.012 --> 00:54:06.012
and dispatchability and
that they can qualify for RA
00:54:07.400 --> 00:54:09.659
as Commissioner Randolph mentioned.
00:54:09.659 --> 00:54:12.440
They can participate
in the RA market now,
00:54:12.440 --> 00:54:14.550
but only as demand response resources,
00:54:14.550 --> 00:54:17.503
which really limits the
amount of RA credits
00:54:17.503 --> 00:54:19.683
that they can receive.
00:54:20.660 --> 00:54:23.300
So very grateful that
the decision establishes
00:54:23.300 --> 00:54:24.170
this working group.
00:54:24.170 --> 00:54:25.907
And again, I urge us to move quickly
00:54:25.907 --> 00:54:28.390
and to be creative and bold enough
00:54:28.390 --> 00:54:31.163
to be put off by the challenges.
00:54:31.163 --> 00:54:35.042
Two other aspects of the
decision I wanted to highlight.
00:54:35.042 --> 00:54:39.610
One, I'm grateful that the
decision provides direction
00:54:39.610 --> 00:54:43.660
to start a review of our 15%.
00:54:43.660 --> 00:54:46.534
Plan reserve margin,
that's a conservative margin
00:54:46.534 --> 00:54:48.360
that will be adopted many years ago
00:54:48.360 --> 00:54:50.173
in response to the energy crisis.
00:54:51.100 --> 00:54:54.890
And it may very well be
time to think hard about it,
00:54:54.890 --> 00:54:57.590
if it makes sense for
the decision established
00:54:57.590 --> 00:55:00.210
as a working group to look
at some of the issues involved
00:55:00.210 --> 00:55:03.100
in changing that, and I
think that's appropriate.
00:55:03.100 --> 00:55:06.661
And I'm also appreciative
that the decision establishes
00:55:06.661 --> 00:55:11.290
a working group to address
load impact protocol issues
00:55:12.870 --> 00:55:16.040
to important methodological
issues relating
00:55:16.040 --> 00:55:20.160
to how to count the capacity
provided by demand response.
00:55:20.160 --> 00:55:22.170
This is something requested by a number
00:55:22.170 --> 00:55:24.170
of demand response providers.
00:55:24.170 --> 00:55:26.860
And I think it's a good step forward.
00:55:26.860 --> 00:55:29.130
With that I'll be supporting this item
00:55:29.130 --> 00:55:31.542
and thank you very much.
00:55:31.542 --> 00:55:33.287
Thank you, Commissioner
Rechtschaffen.
00:55:33.287 --> 00:55:35.541
And I just have a very brief comment.
00:55:35.541 --> 00:55:37.410
And most importantly,
00:55:37.410 --> 00:55:39.770
I wanna thank my vaguely keen partner
00:55:39.770 --> 00:55:41.510
who did all of the hard work,
00:55:41.510 --> 00:55:45.980
hard lifting work on this
decision, Commissioner Randolph.
00:55:45.980 --> 00:55:49.690
I echo the words of my
fellow Commissioners
00:55:49.690 --> 00:55:51.860
and of you Commissioner Randolph
00:55:51.860 --> 00:55:55.460
and thanking the (indistinct)
staff of the energy division,
00:55:55.460 --> 00:55:59.913
as well as AOJ Debbie
Chiv on all the hard work.
00:56:01.865 --> 00:56:03.810
Everything is my first time.
00:56:03.810 --> 00:56:07.940
It's my first time for
the annual RA decision.
00:56:07.940 --> 00:56:09.820
And this is extremely complicated
00:56:11.010 --> 00:56:15.280
and I've been amazed at your hard work
00:56:15.280 --> 00:56:19.590
and thoughtful approach and ability
00:56:19.590 --> 00:56:24.590
to compromise listen closely
and come to some resolution
00:56:24.622 --> 00:56:26.861
on some very difficult issues.
00:56:26.861 --> 00:56:29.000
All of which have been mentioned
00:56:29.000 --> 00:56:31.040
by my fellow Commissioners today.
00:56:31.040 --> 00:56:33.897
So I will not repeat all of the things,
00:56:33.897 --> 00:56:37.381
I'm very supportive of this item.
00:56:37.381 --> 00:56:39.556
And of course we'll be voting yes.
00:56:39.556 --> 00:56:42.620
Thank you again, everyone
for all your hard work.
00:56:42.620 --> 00:56:46.360
And I'm looking very much
forward to the workshop
00:56:46.360 --> 00:56:50.540
and looking forward
to the communications
00:56:50.540 --> 00:56:53.380
and coordination with Cal ISO
00:56:53.380 --> 00:56:57.070
and with the energy Commission as well.
00:56:57.070 --> 00:56:58.110
So thank you.
00:56:58.110 --> 00:57:01.958
Any other thoughts or
comments on item 18?
00:57:01.958 --> 00:57:03.880
Okay, seeing none.
00:57:03.880 --> 00:57:05.928
Well, the Agenda
Clerk please call the roll.
00:57:05.928 --> 00:57:08.078
For Item 18
Commissioner Shiroma.
00:57:09.660 --> 00:57:10.626
Aye.
00:57:10.626 --> 00:57:13.089
Commissioner Guzman Aceves.
00:57:13.089 --> 00:57:13.922
Aye.
00:57:13.922 --> 00:57:16.350
Commissioner Randolph.
00:57:16.350 --> 00:57:17.337
Yes.
00:57:17.337 --> 00:57:19.730
Commissioner Rechtschaffen.
00:57:19.730 --> 00:57:20.953
Yes.
00:57:20.953 --> 00:57:22.503
And President Batjer.
00:57:23.520 --> 00:57:24.353
Yes.
00:57:25.470 --> 00:57:29.490
Thank you, it's
unanimous vote in support.
00:57:29.490 --> 00:57:32.160
Moving on to item 44,
00:57:32.160 --> 00:57:37.160
that will be presented today
by attorney Jonathan Knapp.
00:57:37.640 --> 00:57:38.790
Jonathan.
00:57:38.790 --> 00:57:41.010
Good
morning, Commissioners.
00:57:41.010 --> 00:57:44.040
It's Jonathan Knapp for
legal division at the CPUC.
00:57:44.040 --> 00:57:47.620
Staff is requesting the
authorization to file comments
00:57:47.620 --> 00:57:51.250
in response to a notice of
proposed rulemaking issued
00:57:51.250 --> 00:57:53.800
by the Federal Energy
Regulatory Commission or FERC
00:57:54.850 --> 00:57:58.880
on March 22nd, 2020
regarding proposed revisions
00:57:58.880 --> 00:58:01.610
to FERC electric
transmission incentive policy
00:58:01.610 --> 00:58:03.050
and regulations.
00:58:03.050 --> 00:58:04.803
The comments are due on July 1st,
00:58:06.170 --> 00:58:09.497
in addition to submitting
the CPUC's own comments.
00:58:09.497 --> 00:58:11.930
They have also requests authorization
00:58:11.930 --> 00:58:13.650
to sign on to joint comments,
00:58:13.650 --> 00:58:16.940
drafted by coalitions
with aligned interests,
00:58:16.940 --> 00:58:19.071
upon status review and
confirmation that then says
00:58:19.071 --> 00:58:22.502
joint comments reflect
the CPUCs positions.
00:58:22.502 --> 00:58:24.930
As you may recall last year,
00:58:24.930 --> 00:58:27.130
the Commission filed comments
in response to the notice
00:58:27.130 --> 00:58:30.720
of inquiry that was issued by
FERC on March 21st, 2019,
00:58:30.720 --> 00:58:32.470
concerning the same subject matter.
00:58:33.770 --> 00:58:36.540
Staff have distributed a
comprehensive agenda memo
00:58:36.540 --> 00:58:38.580
that more fully explains our requests
00:58:38.580 --> 00:58:41.580
for authorization to file comments
and response to the NOPR.
00:58:42.969 --> 00:58:44.980
Staff have overarching concerns
00:58:44.980 --> 00:58:46.810
with first its untenable rationale
00:58:46.810 --> 00:58:48.820
for now making these
incentives far easier
00:58:48.820 --> 00:58:52.490
to obtain and far more
lucrative for transmission owners.
00:58:52.490 --> 00:58:55.560
We believe that due to several factors,
00:58:55.560 --> 00:58:57.801
including dramatically
increased levels of investment
00:58:57.801 --> 00:59:01.520
in transmission infrastructure
and widespread reduction
00:59:01.520 --> 00:59:02.353
in transmission congestion,
00:59:02.353 --> 00:59:04.340
these incentives are not needed,
00:59:04.340 --> 00:59:06.733
particularly in the
case of this control area.
00:59:08.040 --> 00:59:10.800
Further, despite projections
that Congress relied on
00:59:10.800 --> 00:59:13.660
and directing FERC to
issue the incentive regulations
00:59:13.660 --> 00:59:14.920
in 2005.
00:59:14.920 --> 00:59:17.640
That demand would substantially increase
00:59:17.640 --> 00:59:20.806
and incentives would result
in cost savings to rate payers.
00:59:20.806 --> 00:59:23.083
The opposite has occurred since then.
00:59:24.000 --> 00:59:27.310
For example, in the CAISO, since 2006,
00:59:27.310 --> 00:59:31.259
transmission charges have
skyrocketed increasing over 300%
00:59:31.259 --> 00:59:33.980
while demand for
electricity has decreased
00:59:33.980 --> 00:59:36.340
by approximately 5%.
00:59:36.340 --> 00:59:39.190
Across the country,
incentives have contributed
00:59:39.190 --> 00:59:41.600
to dramatic increases
in transmission charges
00:59:41.600 --> 00:59:45.760
like the increases
we've seen in the CAISO.
00:59:45.760 --> 00:59:49.210
Those also have concerns with
many of our specific proposals
00:59:49.210 --> 00:59:51.890
for how to revise its
existing incentives.
00:59:51.890 --> 00:59:54.806
Most fundamentally for
now for poses to ignore
00:59:54.806 --> 00:59:56.651
the definition of an incentive,
00:59:56.651 --> 01:00:00.140
something that encourages
a person to do something,
01:00:00.140 --> 01:00:02.930
but instead proposes to
essentially award bonuses
01:00:02.930 --> 01:00:04.855
to transmission owners
for developing projects
01:00:04.855 --> 01:00:07.080
that they would already have undertaken
01:00:07.080 --> 01:00:09.940
in order take actions
that in some instances
01:00:09.940 --> 01:00:11.403
are required by state law.
01:00:12.640 --> 01:00:15.630
For example, one of first
most problematic proposals
01:00:15.630 --> 01:00:17.830
is to revise the membership incentive
01:00:17.830 --> 01:00:20.638
for being part of a regional
transmission organization
01:00:20.638 --> 01:00:22.910
or independent system operator
01:00:22.910 --> 01:00:25.450
by removing the
voluntariness requirement.
01:00:25.450 --> 01:00:26.760
Under first proposal,
01:00:26.760 --> 01:00:28.990
even if utility is required by state law
01:00:28.990 --> 01:00:32.896
to remain in RTU or ISO
as is the case in CAISO,
01:00:32.896 --> 01:00:35.840
the utility would still
be entitled to receive
01:00:35.840 --> 01:00:39.803
the 50 basis point return on
common equity or ROE Adder.
01:00:41.680 --> 01:00:43.940
Worse still, FERC is proposing to double
01:00:43.940 --> 01:00:45.940
the Adder to 100 basis points
01:00:47.010 --> 01:00:49.720
for Commissioner Glick
refers to this proposal
01:00:49.720 --> 01:00:53.450
in his partial to send to the
notice of proposed rulemaking
01:00:53.450 --> 01:00:55.870
as the biggest head-scratcher.
01:00:55.870 --> 01:00:58.669
For proposes to take
such a patently unjust
01:00:58.669 --> 01:01:01.360
and unreasonable action
without any consideration
01:01:01.360 --> 01:01:03.260
of the financial impact of rate pairs.
01:01:05.230 --> 01:01:07.880
In the CAISO repairs currently pay
01:01:07.880 --> 01:01:09.870
the three investor
owned electric utilities,
01:01:09.870 --> 01:01:11.830
Pacific Gas and Electric company,
01:01:11.830 --> 01:01:13.190
San Diego Gas and Electric company
01:01:13.190 --> 01:01:15.000
in Southern California Edison,
01:01:15.000 --> 01:01:18.760
a total of approximately
72.5 million annually
01:01:18.760 --> 01:01:20.770
for the case of membership incentive.
01:01:20.770 --> 01:01:23.570
As you know, the IOUs
need to CPUCs permission
01:01:23.570 --> 01:01:24.460
to leave the CAISO.
01:01:24.460 --> 01:01:26.990
Thus California rate
payers currently pay
01:01:26.990 --> 01:01:31.660
the IOUs approximately
72.5 million each year
01:01:31.660 --> 01:01:34.039
for doing what they were
required to do under state law,
01:01:34.039 --> 01:01:35.904
remained members in the CAISO.
01:01:35.904 --> 01:01:39.201
Under first proposal, that
annual amount would double
01:01:39.201 --> 01:01:42.206
to approximately 145 million.
01:01:42.206 --> 01:01:44.681
Again for paying the IOUs
to do what they're obligated
01:01:44.681 --> 01:01:48.590
to do under state law remain
members of the CAISO.
01:01:48.590 --> 01:01:50.690
As noted, the scope of
our proposed comments
01:01:50.690 --> 01:01:53.218
is fully explained in the agenda memo.
01:01:53.218 --> 01:01:55.300
I'm happy to answer any questions.
01:01:55.300 --> 01:01:57.510
Thank you for your consideration.
01:01:57.510 --> 01:01:59.160
Okay. Thank you, Jonathan.
01:01:59.160 --> 01:02:03.263
Are there any questions
for Jonathan on item 44?
01:02:04.540 --> 01:02:07.740
Yes, Commissioner Rechtschaffen.
01:02:07.740 --> 01:02:09.100
Thank you, Jonathan.
01:02:09.100 --> 01:02:10.310
I had a couple of questions.
01:02:10.310 --> 01:02:13.973
You answered them in part
but I wanted to just go over them.
01:02:15.350 --> 01:02:17.890
You noted that the
Commission filed comments
01:02:17.890 --> 01:02:20.200
on the advanced notice of rulemaking
01:02:20.200 --> 01:02:22.570
has anything changed
between now and then
01:02:22.570 --> 01:02:24.990
that would lead you to think differently
01:02:24.990 --> 01:02:28.142
about our position or that provides
01:02:28.142 --> 01:02:30.413
either stronger support
for what we're doing
01:02:30.413 --> 01:02:35.380
or does it better
justify their intention
01:02:35.380 --> 01:02:37.893
between when we filed
those comments and now?
01:02:39.867 --> 01:02:41.708
Thank you
Commissioner Rechtschaffen
01:02:41.708 --> 01:02:42.737
for the question.
01:02:42.737 --> 01:02:44.805
The short answer is no,
01:02:44.805 --> 01:02:49.805
there's nothing in the NOPR
from staff's perspective,
01:02:50.230 --> 01:02:54.140
that justifies that the
proposal that they put forward
01:02:54.140 --> 01:02:57.730
in the notice of inquiry
proceeding last summer,
01:02:57.730 --> 01:03:02.327
FERC laid out 105
questions about soliciting input
01:03:03.360 --> 01:03:06.050
on how it could modify
potentially modify
01:03:08.002 --> 01:03:09.373
its incentive policy.
01:03:11.530 --> 01:03:13.740
And some of the questions indicated
01:03:13.740 --> 01:03:17.000
a potential willingness to
make the existing legal standard
01:03:17.000 --> 01:03:18.260
for determining whether incentives
01:03:18.260 --> 01:03:19.940
are warranted more rigorous
01:03:19.940 --> 01:03:24.670
while other questions
indicated potentially willingness
01:03:24.670 --> 01:03:27.514
to go the direction and
make the existing standard
01:03:27.514 --> 01:03:29.247
for determining whether a incentives
01:03:29.247 --> 01:03:31.650
are warranted less rigorous
01:03:31.650 --> 01:03:33.750
and potentially add
additional incentives.
01:03:37.493 --> 01:03:40.757
Our comments last
summer insured urged FERC
01:03:42.980 --> 01:03:45.030
for some of the reasons
I mentioned today
01:03:45.030 --> 01:03:49.390
in terms of the change in historical...
01:03:50.720 --> 01:03:52.180
The fact that the surgical conditions
01:03:52.180 --> 01:03:54.680
that motivated Congress to act in 2005
01:03:54.680 --> 01:03:59.680
and direct FERC to
implement these incentives
01:03:59.830 --> 01:04:04.033
had changed in ways that no
longer supported the incentives.
01:04:05.360 --> 01:04:10.360
And so we made that point
extensively in our comments
01:04:11.100 --> 01:04:14.230
that basically the
underlying rationale for why
01:04:14.230 --> 01:04:17.863
and insure the reason
why FERC is seeing this,
01:04:19.940 --> 01:04:22.600
historical decline and
transmission investment
01:04:22.600 --> 01:04:25.879
for the two decades leading out to 2005
01:04:25.879 --> 01:04:28.770
and they wanted to spur
more investment in that sector
01:04:28.770 --> 01:04:33.770
that by 2019, there was
ample in terms capital,
01:04:34.950 --> 01:04:37.180
very competing for transmission...
01:04:37.180 --> 01:04:39.910
Compete into developed
transmission projects.
01:04:39.910 --> 01:04:42.411
And similarly DOE the
Department Of Energy
01:04:42.411 --> 01:04:45.110
had concluded that congestion
was no longer an issue
01:04:45.110 --> 01:04:48.390
that was also a driving
reason for the incentives
01:04:48.390 --> 01:04:53.209
and in the interim period
between 2005 and 2019,
01:04:53.209 --> 01:04:57.270
the North American
Reliability Corporation or NERC
01:04:57.270 --> 01:05:02.270
had promulgated over 100 mandatory,
01:05:03.840 --> 01:05:05.720
enforceable reliability centers.
01:05:05.720 --> 01:05:08.360
So the reliability
landscape, it also changed.
01:05:08.360 --> 01:05:11.430
So for all those reasons
and very importantly,
01:05:11.430 --> 01:05:13.680
and conceits to the NOPR,
01:05:13.680 --> 01:05:16.690
there's no evidence that the incentives
01:05:16.690 --> 01:05:18.860
that they put in place
in 2005 accomplished
01:05:18.860 --> 01:05:20.410
their intended purposes,
01:05:20.410 --> 01:05:22.220
which were to increase reliability,
01:05:22.220 --> 01:05:25.563
reduce congestion and
thereby save rate payers money.
01:05:27.070 --> 01:05:29.900
So for all those reasons
in the comments last year,
01:05:29.900 --> 01:05:34.900
we very strongly urged
FERC to not make the policy...
01:05:36.960 --> 01:05:40.490
Not liberalize the policy and
not make it more expansive,
01:05:40.490 --> 01:05:42.910
expansive by offering
additional incentives.
01:05:42.910 --> 01:05:45.040
Unfortunately, that's
exactly what they did.
01:05:45.040 --> 01:05:47.453
And so I guess in short
answer to your question,
01:05:48.920 --> 01:05:51.229
what we're seeing in
terms of the proposal
01:05:51.229 --> 01:05:55.210
they put forward is
problematic in a number of ways
01:05:55.210 --> 01:05:57.860
that we identified in the agenda memo.
01:05:57.860 --> 01:05:59.830
But most fundamentally it's problematic
01:05:59.830 --> 01:06:02.780
because there's just no
basis for it at this point in time.
01:06:05.080 --> 01:06:07.850
And then the other
question you asked,
01:06:07.850 --> 01:06:11.050
sorry, Commissioner,
just to quickly follow up,
01:06:11.050 --> 01:06:13.540
you answered him part already,
01:06:13.540 --> 01:06:16.010
I was gonna ask you just
for an order of magnitude
01:06:16.010 --> 01:06:19.520
about the costs, the
rate pairs that they result
01:06:19.520 --> 01:06:21.650
from these additional
unnecessary incentives,
01:06:21.650 --> 01:06:24.670
and you pointed out
the incentive from joining
01:06:24.670 --> 01:06:28.540
the ISO click off to $145 million.
01:06:28.540 --> 01:06:33.210
So overall from all these
incentive possibilities,
01:06:33.210 --> 01:06:36.170
we're talking about tens,
if not hundreds of billions,
01:06:36.170 --> 01:06:39.897
of dollars of potentially
additional rate payer costs,
01:06:39.897 --> 01:06:43.380
is that fair for California residents?
01:06:43.380 --> 01:06:45.430
Yes, I
think that it's fair.
01:06:49.910 --> 01:06:51.487
I guess I would answer the question
01:06:51.487 --> 01:06:53.090
and I guess in short, yes.
01:06:53.090 --> 01:06:55.780
I think that that's
certainly fair I think
01:06:55.780 --> 01:06:57.891
in terms of understanding
the full scope and magnitude
01:06:57.891 --> 01:06:59.453
of what this would mean,
01:07:02.090 --> 01:07:03.498
for the RTO participation at,
01:07:03.498 --> 01:07:05.240
or in the case of membership incentive,
01:07:05.240 --> 01:07:07.210
that that's a fairly
straightforward analysis
01:07:07.210 --> 01:07:09.369
because their proposal is clear.
01:07:09.369 --> 01:07:12.973
Their first proposal is
less clear in terms of,
01:07:15.930 --> 01:07:19.390
it's very broad and (mumbles)
01:07:21.100 --> 01:07:22.270
Let me step back.
01:07:22.270 --> 01:07:24.590
So FERC is proposing among other things
01:07:24.590 --> 01:07:28.160
to now award incentives for projects
01:07:28.160 --> 01:07:30.450
that show economic benefits,
01:07:30.450 --> 01:07:33.300
which they're defining as
primarily congestion reduction.
01:07:35.290 --> 01:07:38.740
FERC is also proposing to
now award incentives for projects
01:07:38.740 --> 01:07:43.030
that have reliability benefits
that exceed NERC standards,
01:07:43.030 --> 01:07:45.836
that exceed local reliability criteria.
01:07:45.836 --> 01:07:47.700
In both of those instances,
01:07:47.700 --> 01:07:52.470
the criteria for what
would satisfy the folks
01:07:54.402 --> 01:07:56.140
the tasks that they're proposing for,
01:07:56.140 --> 01:07:59.940
what would warrant
incentive treatment is vague.
01:07:59.940 --> 01:08:03.787
And so one, it's unclear what the scope
01:08:03.787 --> 01:08:06.060
of the final rule will be.
01:08:06.060 --> 01:08:09.400
And so it's unclear
how broadly it will apply,
01:08:09.400 --> 01:08:13.593
but on its face, it appears
to apply extremely broadly.
01:08:17.264 --> 01:08:20.960
And if that's the way the
rule was ultimately applied,
01:08:20.960 --> 01:08:24.810
then what we would
anticipate in terms of the amount
01:08:24.810 --> 01:08:27.270
of rate payer funding
that would ultimately do
01:08:27.270 --> 01:08:30.158
towards paying these incentives
would certainly increase.
01:08:30.158 --> 01:08:33.110
I would also note that they're proposing
01:08:33.110 --> 01:08:36.560
to do the other changes.
01:08:36.560 --> 01:08:39.830
And fundamentally the
way that for proposing
01:08:39.830 --> 01:08:42.620
to restructure their incentive program,
01:08:42.620 --> 01:08:45.610
way before an applicant
would have to share
01:08:45.610 --> 01:08:48.860
if any incentive needed on some level
01:08:48.860 --> 01:08:50.460
in order to realize the project.
01:08:51.540 --> 01:08:54.600
Now they're completely
proposing to go away from that.
01:08:54.600 --> 01:08:55.800
So it would...
01:08:55.800 --> 01:08:57.540
So instead this is what
I referenced in terms
01:08:57.540 --> 01:08:59.840
of the fundamental
shifts that they're making.
01:09:01.090 --> 01:09:06.090
So for projects that are
in the queue in the case...
01:09:06.270 --> 01:09:07.103
For example, here in the case
01:09:07.103 --> 01:09:09.510
of the transmission planning process,
01:09:09.510 --> 01:09:11.673
that has certain reliability benefits.
01:09:12.700 --> 01:09:14.210
It appears on the (indistinct)
01:09:14.210 --> 01:09:16.550
it may be possible for those projects
01:09:16.550 --> 01:09:19.363
that are already being
developed to now get incentives.
01:09:22.060 --> 01:09:24.643
Without any showing
that the incentive is...
01:09:24.643 --> 01:09:27.520
That there's any nexus to
the granting of the incentive
01:09:27.520 --> 01:09:28.935
in the project development.
01:09:28.935 --> 01:09:30.762
And so that's a very fundamental shift
01:09:30.762 --> 01:09:33.220
and then there's other
fundamental shifts like that.
01:09:33.220 --> 01:09:35.020
And I'm gonna just mention two others.
01:09:35.020 --> 01:09:39.730
One is that way before FERC last revised
01:09:41.280 --> 01:09:43.120
this incentive policy in 2012.
01:09:43.120 --> 01:09:46.330
And in 2012, one of the
most notable changes
01:09:46.330 --> 01:09:50.740
they made was that FERC
said before a company can get
01:09:50.740 --> 01:09:52.600
an ROE enhancing incentive,
01:09:52.600 --> 01:09:55.140
like the CAISO membership
incentive that increases
01:09:55.140 --> 01:09:57.563
their ROE and the return on equity.
01:09:58.410 --> 01:10:01.950
They have to make a showing
that they wouldn't be able
01:10:01.950 --> 01:10:04.430
to meet the need for
the particular project
01:10:04.430 --> 01:10:07.257
by using other incentives referred to
01:10:07.257 --> 01:10:11.943
as risk reducing incentives or
non ROE enhancing incentives,
01:10:13.130 --> 01:10:16.250
such as there's an incentive
where they can get 100%
01:10:16.250 --> 01:10:19.840
of their abandoned
project costs in the event
01:10:19.840 --> 01:10:21.350
that a project's abandoned.
01:10:21.350 --> 01:10:24.597
They'd have to make a
showing of the menu of options
01:10:27.286 --> 01:10:30.930
on the non ROE
incentive side of the ledger
01:10:30.930 --> 01:10:35.930
that they couldn't use those
non ROE enhancing incentives
01:10:37.030 --> 01:10:40.150
before they could be granted
an ROE enhancing one.
01:10:40.150 --> 01:10:43.130
First with one sentence
and absolutely no explanation
01:10:43.130 --> 01:10:46.350
is now proposing
to jettison that policy.
01:10:46.350 --> 01:10:47.560
So there would be no...
01:10:47.560 --> 01:10:50.050
So an applicant wouldn't have to show
01:10:50.050 --> 01:10:54.530
that they could meet the
need for the development
01:10:54.530 --> 01:10:56.606
of the project, through one of these
01:10:56.606 --> 01:10:59.993
other potentially
less costly incentives.
01:11:01.150 --> 01:11:02.380
So that's one way they're doing it.
01:11:02.380 --> 01:11:06.740
And then another change
that they're proposing to make,
01:11:06.740 --> 01:11:08.410
which we noted in the memo as well,
01:11:08.410 --> 01:11:13.227
is that whereas before FERC said that
01:11:15.480 --> 01:11:19.788
an applicant's total award
of incentives couldn't exceed
01:11:19.788 --> 01:11:23.929
what would otherwise be a
reasonable ROE for that company
01:11:23.929 --> 01:11:27.910
based upon the Commissions
ROE methodology.
01:11:27.910 --> 01:11:32.110
Now, the FERC is
proposing to change that
01:11:33.540 --> 01:11:36.667
to state that that ceiling
would no longer apply.
01:11:36.667 --> 01:11:39.163
But what would apply
is that all the incentives
01:11:39.163 --> 01:11:41.573
that a company might
get taking together,
01:11:42.760 --> 01:11:45.700
can't exceed 250 basis points.
01:11:45.700 --> 01:11:48.820
And so as Glick points
out that could lead
01:11:48.820 --> 01:11:51.930
to really absurd situation
in which a company
01:11:51.930 --> 01:11:54.570
that's awarded incentives
based on a premise
01:11:56.240 --> 01:11:58.750
which should be the premise that
01:11:58.750 --> 01:12:01.630
a project's particularly
difficult to complete,
01:12:01.630 --> 01:12:02.603
but it's needed.
01:12:03.550 --> 01:12:06.700
We'll now as a result of
these incentives potentially
01:12:06.700 --> 01:12:10.400
be earning a higher ROE
than any other company
01:12:10.400 --> 01:12:11.323
in its peer group.
01:12:12.572 --> 01:12:14.605
The point of the incentive
is to level the playing field
01:12:14.605 --> 01:12:17.270
for companies that
are willing to take on
01:12:17.270 --> 01:12:18.800
these more difficult projects,
01:12:18.800 --> 01:12:21.960
not to put them in a position
where they're now earning,
01:12:21.960 --> 01:12:23.980
well above what every other company
01:12:23.980 --> 01:12:25.460
in their peer group is earning.
01:12:25.460 --> 01:12:28.110
And so yeah, there's two ways in which
01:12:29.150 --> 01:12:31.890
we would anticipate that going back
01:12:31.890 --> 01:12:34.693
to your original
question, that the changes
01:12:34.693 --> 01:12:37.197
in the incentive policy
that they're proposing
01:12:37.197 --> 01:12:42.080
would very much lead
to significant increases
01:12:42.080 --> 01:12:45.117
for California customers
across the country.
01:12:46.116 --> 01:12:49.270
And one other point that
I'd make about that is that,
01:12:50.920 --> 01:12:53.300
I mentioned that there were
projections that Congress
01:12:53.300 --> 01:12:55.130
had relied on and FERC had relied on
01:12:55.130 --> 01:13:00.130
when they enacted these
incentives back in for Congress,
01:13:00.274 --> 01:13:02.278
they passed the legislation in 2005
01:13:02.278 --> 01:13:06.830
and forgotten in 2006,
they relied on the projection,
01:13:06.830 --> 01:13:11.100
that energy demand which
substantially increased during
01:13:11.100 --> 01:13:12.360
the coming decades.
01:13:12.360 --> 01:13:15.590
And that as a result of
these incentives costs
01:13:15.590 --> 01:13:16.900
for consumers would go down.
01:13:16.900 --> 01:13:21.510
We've seen the opposite
happen, and across the country,
01:13:21.510 --> 01:13:23.820
transmission charges have had skyrockets
01:13:23.820 --> 01:13:26.780
have increased very dramatically.
01:13:26.780 --> 01:13:29.720
There's no mention of those increases
01:13:29.720 --> 01:13:31.500
in NOPR whatsoever.
01:13:31.500 --> 01:13:36.030
So they haven't even
attempted to reconcile
01:13:36.030 --> 01:13:40.430
what they're now doing with the reality
01:13:40.430 --> 01:13:41.883
of what customers are facing.
01:13:43.030 --> 01:13:48.030
And there's no mention of
the precipitous cost increase.
01:13:50.220 --> 01:13:53.580
And there's no calculation at all as to
01:13:53.580 --> 01:13:56.040
how much incentives have cost customers
01:13:56.040 --> 01:13:57.540
over the last 15 years.
01:13:57.540 --> 01:14:00.540
Although FERC does
readily acknowledge in NOPR
01:14:00.540 --> 01:14:02.858
that they have no data to support that
01:14:02.858 --> 01:14:06.480
the incentives actually did
what they were supposed to do
01:14:06.480 --> 01:14:08.340
and accomplish their intended purpose.
01:14:08.340 --> 01:14:11.180
And the last point that
I would make is that
01:14:11.180 --> 01:14:13.724
one of the driving purposes...
01:14:13.724 --> 01:14:15.200
I believe I mentioned this earlier,
01:14:15.200 --> 01:14:18.223
one of the driving purposes
of the federal legislation,
01:14:19.346 --> 01:14:22.460
when Congress enacted and
ended the federal power act
01:14:22.460 --> 01:14:26.120
in 2005 for these incentives
on the primary purposes
01:14:26.120 --> 01:14:28.730
was reducing costs to rate payers.
01:14:28.730 --> 01:14:30.140
And that is also...
01:14:31.900 --> 01:14:35.820
There's no evidence
in the NOPR at all that
01:14:35.820 --> 01:14:37.360
these policies will do that.
01:14:37.360 --> 01:14:40.017
And everything points
in the opposite direction.
01:14:41.945 --> 01:14:44.010
Thank you.
01:14:44.010 --> 01:14:49.010
President Batjer, can
I make a brief comment
01:14:49.300 --> 01:14:50.672
on this issue?
01:14:50.672 --> 01:14:51.650
I'm sorry, I was on mute.
01:14:51.650 --> 01:14:53.984
Yes, of course you may.
01:14:53.984 --> 01:14:55.668
All right, thank you.
01:14:55.668 --> 01:15:00.668
Thank you, Jonathan. I
appreciate that discussion.
01:15:00.830 --> 01:15:05.830
And I'm very supportive of
submitting these comments.
01:15:07.270 --> 01:15:11.580
I think, as you noted, the
policy hasn't been reviewed
01:15:11.580 --> 01:15:14.780
since 2012, so it does
seem logical to review it,
01:15:14.780 --> 01:15:18.510
but the concerns that
Commissioner Glick relayed
01:15:20.100 --> 01:15:23.963
in his dissent, I think
are very significant.
01:15:25.050 --> 01:15:27.780
And the proposed
framework is really set up
01:15:27.780 --> 01:15:31.180
to reward reliability
and economic projects
01:15:31.180 --> 01:15:34.910
that are already the
ones that are most likely
01:15:34.910 --> 01:15:37.880
to be developed because
they're most more likely
01:15:37.880 --> 01:15:39.633
to find a market.
01:15:40.920 --> 01:15:44.123
And the framework
doesn't contemplate the role
01:15:44.123 --> 01:15:47.573
of transmission projects
and public policy purposes.
01:15:48.670 --> 01:15:50.930
So it doesn't really address the benefit
01:15:50.930 --> 01:15:53.930
of transmission projects
that are built to meet
01:15:53.930 --> 01:15:58.640
the needs of the
clean energy transition.
01:15:58.640 --> 01:16:03.640
So without taking that into account,
01:16:03.711 --> 01:16:07.720
the incentive framework
moves in the opposite direction
01:16:07.720 --> 01:16:09.670
that I think it needs to go in.
01:16:09.670 --> 01:16:14.340
So I think it's really important
for us to stay engaged
01:16:14.340 --> 01:16:16.443
and active in this FERC proceeding.
01:16:20.750 --> 01:16:22.426
Thank you,
Commissioner Randolph,
01:16:22.426 --> 01:16:24.340
Are there any other
questions or comments
01:16:24.340 --> 01:16:29.103
of Mr. Knapp on item 44?
01:16:30.350 --> 01:16:33.860
Yes Commissioner Shiroma.
01:16:33.860 --> 01:16:35.264
Yes, thank you,
President Batjer.
01:16:35.264 --> 01:16:38.620
Thank you, Jonathan for
that very thorough presentation
01:16:38.620 --> 01:16:40.160
and the thorough answers
01:16:40.160 --> 01:16:43.395
to Commissioner
Rechtschaffen's questions.
01:16:43.395 --> 01:16:46.520
This stuff just makes
it makes my blood boil.
01:16:49.350 --> 01:16:51.430
I'm very supportive of item 44
01:16:51.430 --> 01:16:55.040
and giving you a legal
division authorization
01:16:55.040 --> 01:16:58.930
to file comments on the
notice of proposed rulemaking
01:16:58.930 --> 01:17:01.943
on the transmissions before FERC.
01:17:03.500 --> 01:17:05.640
As we say it's increasing cost related
01:17:05.640 --> 01:17:08.560
to critical wildfire
mitigation planning,
01:17:08.560 --> 01:17:13.560
we must continue to be
vigilant on cost containment,
01:17:13.670 --> 01:17:16.560
both here at the Commission and at FERC.
01:17:18.276 --> 01:17:21.920
And they have their own
independent jurisdictions.
01:17:21.920 --> 01:17:24.210
We have to argue before them,
01:17:24.210 --> 01:17:27.606
we have had success in
the past and challenging...
01:17:27.606 --> 01:17:31.430
I'll call it arbitrary awarding
transitioning incentives.
01:17:31.430 --> 01:17:33.930
For example, before the ninth circuit
01:17:33.930 --> 01:17:38.210
on the Kaiser return on equity
and our position incentives.
01:17:38.210 --> 01:17:40.896
And that secured significant savings
01:17:40.896 --> 01:17:45.330
for our rate payers in California.
01:17:45.330 --> 01:17:50.330
And it looks like if folks
continuing majority response.
01:17:51.150 --> 01:17:56.150
And I'd say ignoring the (indistinct)
01:17:58.660 --> 01:18:03.660
I think really is to double down
on transmission incentives,
01:18:04.320 --> 01:18:08.910
inexplicably expanding
them or even more freely,
01:18:08.910 --> 01:18:11.563
despite what Jonathan outlined in terms
01:18:11.563 --> 01:18:16.200
of the original intent requirement,
01:18:16.200 --> 01:18:19.910
the patterns of energy
use which have not gone up,
01:18:19.910 --> 01:18:24.910
they've gone down
and again, it's clickable.
01:18:24.980 --> 01:18:28.500
So I support our strategy in this NOPR
01:18:28.500 --> 01:18:32.730
and pushing FERC to be data driven
01:18:34.370 --> 01:18:37.220
on awarding transition incentives only
01:18:37.220 --> 01:18:41.070
where there's clear evidence
of lagging investments
01:18:41.070 --> 01:18:43.700
and do it on a case by case basis,
01:18:43.700 --> 01:18:48.700
not some broad brush policy
regulation that they are doing.
01:18:49.570 --> 01:18:54.310
And of course, I would
urge our colleagues at FERC,
01:18:55.175 --> 01:18:58.998
Commissioner Glick, these are clearly,
01:18:58.998 --> 01:19:03.998
to remind them that
who's paying for all this?
01:19:04.137 --> 01:19:07.370
The customer are paying for all of this
01:19:07.370 --> 01:19:10.090
and especially during this
time of high employment
01:19:10.970 --> 01:19:13.550
of pandemic, it's not
gonna go away anytime soon
01:19:14.440 --> 01:19:17.320
we're not the only state
that has water mitigation,
01:19:17.320 --> 01:19:19.850
planning needs and efforts.
01:19:19.850 --> 01:19:21.454
So thank you, Jonathan.
01:19:21.454 --> 01:19:24.467
And to the legal
division for FERC in this
01:19:24.467 --> 01:19:27.263
and I support item 44. Thank you.
01:19:29.973 --> 01:19:31.730
President Batjer.
01:19:31.730 --> 01:19:35.240
Yes, thank you
Commissioner Shiroma
01:19:35.240 --> 01:19:37.520
and Commissioner Guzman Aceves.
01:19:37.520 --> 01:19:40.700
Thank you, I think that
my sixth grade teacher,
01:19:40.700 --> 01:19:42.760
Sister Augustin really
would have captured
01:19:42.760 --> 01:19:47.530
this moment really well
because it is atrocious.
01:19:47.530 --> 01:19:52.440
She would say that the greed in the time
01:19:52.440 --> 01:19:57.440
of such economic recession
is just atrocious and not...
01:19:58.387 --> 01:20:00.870
I know this started before even,
01:20:00.870 --> 01:20:05.870
but the continuation of
this is quite quite disgusting.
01:20:08.410 --> 01:20:13.410
I had a question
Jonathan, where's the ISO?
01:20:15.930 --> 01:20:18.670
Certainly these transmission operators,
01:20:18.670 --> 01:20:23.403
do I have a lot of expectation
that PG&E (mumbles)
01:20:23.403 --> 01:20:27.922
and others would stand to FERC and say,
01:20:27.922 --> 01:20:31.640
"We don't need to make
this extra profit and so forth."
01:20:31.640 --> 01:20:35.840
But ISO standing
alongside of us and saying
01:20:36.710 --> 01:20:39.560
what we're saying that
California is building,
01:20:39.560 --> 01:20:42.510
we are not in need of these incentives.
01:20:42.510 --> 01:20:46.713
These incentives are
gross and unnecessary.
01:20:49.670 --> 01:20:51.860
Has the ISO filed comments?
01:20:51.860 --> 01:20:53.783
Will they be filing with us?
01:20:56.216 --> 01:20:58.160
Yes. Commissioner.
01:20:58.160 --> 01:21:01.530
So the CAISO filed comments last summer,
01:21:01.530 --> 01:21:03.463
in response to the notice of inquiry,
01:21:05.460 --> 01:21:06.820
the deadline for comments in response
01:21:06.820 --> 01:21:08.370
for NOPR is July 1st,
01:21:08.370 --> 01:21:10.880
so they haven't filed comments yet.
01:21:10.880 --> 01:21:13.040
We will be filing our own comments.
01:21:13.040 --> 01:21:13.940
And my understanding is because
01:21:13.940 --> 01:21:15.723
we're filing their own comments.
01:21:16.560 --> 01:21:17.970
In terms of what...
01:21:19.490 --> 01:21:21.520
Last summer in the notice of inquiry
01:21:21.520 --> 01:21:25.070
the CAISO filed comments
in which they urge
01:21:25.070 --> 01:21:28.785
the Commission to
retain their current test
01:21:28.785 --> 01:21:31.609
for determining whether
an incentive is warranted,
01:21:31.609 --> 01:21:34.370
which would look at the
risks and challenges faced
01:21:34.370 --> 01:21:38.270
by the project and the connection
01:21:38.270 --> 01:21:39.610
of the incentive would have
01:21:39.610 --> 01:21:42.140
to realizing the project,
01:21:42.140 --> 01:21:46.333
which is I think from our
perspective is sufficient.
01:21:47.601 --> 01:21:49.540
Maybe is necessary,
but not entirely sufficient.
01:21:49.540 --> 01:21:52.790
And we had encouraged
the Commission to go
01:21:52.790 --> 01:21:56.000
a bit further in terms of
making that test more rigorous.
01:21:56.000 --> 01:21:57.256
But in terms of the CAISO's comments,
01:21:57.256 --> 01:21:58.620
they had supported that.
01:21:58.620 --> 01:22:03.180
And the Commission
has... FERC is proposing
01:22:03.180 --> 01:22:05.770
to completely depart
from that old framework
01:22:05.770 --> 01:22:08.070
and to adopt this new
framework that would make it
01:22:08.070 --> 01:22:12.090
much easier for incentives to be awarded
01:22:12.090 --> 01:22:14.593
and would make the
incentives more lucrative.
01:22:17.944 --> 01:22:20.756
So previously the CAISO
did support the retention
01:22:20.756 --> 01:22:22.580
of that risk and challenges framework.
01:22:22.580 --> 01:22:24.444
They also supported as
Commissioner Shiroma
01:22:24.444 --> 01:22:25.760
was saying a moment ago,
01:22:25.760 --> 01:22:28.960
they supported the case by case analysis
01:22:28.960 --> 01:22:31.510
and looking at each
incentive request individually.
01:22:32.500 --> 01:22:36.390
In NOPR, I would know it's that question
01:22:36.390 --> 01:22:38.763
of what FERC is gonna be dealing with
01:22:38.763 --> 01:22:44.900
that case by case
analysis is a little less clear,
01:22:46.770 --> 01:22:48.730
in part, they say, they're
gonna be applying it,
01:22:48.730 --> 01:22:50.990
but then the way that they
structured their proposals,
01:22:50.990 --> 01:22:54.016
it doesn't really appear that
they will be in many instances
01:22:54.016 --> 01:22:56.530
or what they'll be looking
at on a case by case basis
01:22:56.530 --> 01:22:59.546
is whether a project satisfies
01:22:59.546 --> 01:23:01.810
a certain generic reliability benefit
01:23:01.810 --> 01:23:04.600
or satisfies a certain
generic economic benefit,
01:23:04.600 --> 01:23:06.548
but not that, that
project is actually needed
01:23:06.548 --> 01:23:08.430
or that most importantly,
01:23:08.430 --> 01:23:10.530
the incentive is actually
needed to realize the project,
01:23:10.530 --> 01:23:13.530
which was the core of the
case by case analysis in the past.
01:23:15.560 --> 01:23:17.300
In terms of other...
01:23:17.300 --> 01:23:21.940
The CAISO also on
one place were the CPUC
01:23:21.940 --> 01:23:23.940
and the CAISO differed in the past,
01:23:23.940 --> 01:23:27.410
which appears to be in first NOPR,
01:23:28.703 --> 01:23:30.840
FERC appears to be
going in the direction
01:23:30.840 --> 01:23:35.640
that the CAISO had proposed with that...
01:23:36.810 --> 01:23:39.480
At present for a company to seek
01:23:39.480 --> 01:23:42.630
the 100% abandoned plan incentives,
01:23:42.630 --> 01:23:45.351
they have to make a request for it.
01:23:45.351 --> 01:23:49.600
They have to go to
FERC and seek an order,
01:23:49.600 --> 01:23:51.160
giving them that incentive.
01:23:51.160 --> 01:23:55.218
And then once they receive
the order back from FERC
01:23:55.218 --> 01:23:57.100
that says, "You're
granted this incentive
01:23:57.100 --> 01:23:59.890
as of the date of that FERC order."
01:24:01.574 --> 01:24:03.780
In the event that the
project is canceled,
01:24:03.780 --> 01:24:06.130
they can go back to that date
01:24:06.130 --> 01:24:08.563
and recover costs back to that date.
01:24:09.560 --> 01:24:12.840
The CAISO and other commenters,
01:24:12.840 --> 01:24:14.900
including the IOUs in California,
01:24:14.900 --> 01:24:16.733
had made the argument to FERC,
01:24:18.645 --> 01:24:20.723
and many industry commenters
across the country made
01:24:20.723 --> 01:24:25.250
this argument that 100%
abandoned plan incentives
01:24:26.595 --> 01:24:31.595
should be awarded automatically
to transmission owners
01:24:32.266 --> 01:24:33.940
that are part of the TPP,
01:24:33.940 --> 01:24:36.290
that are part of a
Transmission Planning Process
01:24:36.290 --> 01:24:37.679
where they're ordered
to undertake a project
01:24:37.679 --> 01:24:38.580
and see which end.
01:24:38.580 --> 01:24:43.580
So that if later after that
project has been developed
01:24:46.510 --> 01:24:49.980
or partially developed the
independent system operator,
01:24:49.980 --> 01:24:52.180
determines this project
is no longer needed,
01:24:53.160 --> 01:24:56.190
that they should be
able to recruit their costs
01:24:56.190 --> 01:24:57.900
from going all the way back,
01:24:57.900 --> 01:25:00.010
all the cost that they've incurred.
01:25:00.010 --> 01:25:04.150
And that there shouldn't
be any delineation about
01:25:04.150 --> 01:25:08.371
an order they shouldn't
have to pay the applicant,
01:25:08.371 --> 01:25:09.880
the transmission owner shouldn't have
01:25:09.880 --> 01:25:13.540
to seek folks affirmative determination
01:25:13.540 --> 01:25:15.148
that this project
warrants that incentive,
01:25:15.148 --> 01:25:17.160
they should just get it automatically
01:25:17.160 --> 01:25:18.726
if they're part of the TPP process
01:25:18.726 --> 01:25:20.290
and then the project's canceled
01:25:20.290 --> 01:25:22.450
for reasons outside of their control.
01:25:22.450 --> 01:25:27.443
So the CPUC and many
other state Commissions,
01:25:28.558 --> 01:25:30.000
(indistinct) advocates
from across the country,
01:25:30.000 --> 01:25:31.673
argued against that position.
01:25:33.090 --> 01:25:35.170
In our position, I would not conform
01:25:35.170 --> 01:25:36.653
with folks current policy.
01:25:39.291 --> 01:25:41.200
And the premise of the policy
01:25:41.200 --> 01:25:45.760
and I guess the core of our argument
01:25:45.760 --> 01:25:49.580
in urging FERC to retain the policy,
01:25:49.580 --> 01:25:54.580
was that the abandoned
plant incentive from the time
01:25:56.770 --> 01:26:01.263
of the order, once FERC
speaks to the issue going forward,
01:26:01.263 --> 01:26:02.763
from the time of the order,
01:26:06.720 --> 01:26:09.080
it's helpful to the
company because then...
01:26:09.080 --> 01:26:11.480
And the whole purpose of the incentive
01:26:11.480 --> 01:26:15.440
is that it's attracting
investment in the company.
01:26:15.440 --> 01:26:19.030
And so what we have said in the past
01:26:19.030 --> 01:26:20.960
and what the premise of the order was,
01:26:20.960 --> 01:26:23.840
was that at that point,
that FERC had spoken to
01:26:23.840 --> 01:26:27.710
the issue that then going forward,
01:26:27.710 --> 01:26:29.935
the investor community will
know they've been awarded
01:26:29.935 --> 01:26:34.670
this incentive, and
therefore they will feel
01:26:34.670 --> 01:26:37.063
more confident in
investing in that project.
01:26:38.800 --> 01:26:40.490
And then the company gets,
01:26:40.490 --> 01:26:44.897
as a practical matter,
they can get that order
01:26:44.897 --> 01:26:47.020
from a few months after
01:26:47.020 --> 01:26:49.460
the TPP process approval comes through
01:26:50.390 --> 01:26:51.683
for a particular project.
01:26:53.004 --> 01:26:56.160
And that from the rate
payer side of the table
01:26:56.160 --> 01:27:00.927
from the CPUCs perspective
wasn't appropriate way
01:27:00.927 --> 01:27:02.680
to approach that incentive.
01:27:02.680 --> 01:27:07.283
And I should know that
under the current policy
01:27:10.137 --> 01:27:13.180
for external policy, all those pre...
01:27:13.180 --> 01:27:15.840
The cost that a company
occurs prior to the order,
01:27:15.840 --> 01:27:17.987
going into effect prior to FERC's order,
01:27:17.987 --> 01:27:22.584
and they can still recover
50% of those costs.
01:27:22.584 --> 01:27:24.290
And that's typical because
01:27:24.290 --> 01:27:27.253
in any transmission planning situation,
01:27:29.493 --> 01:27:31.922
at FERC, companies are able to recover.
01:27:31.922 --> 01:27:35.370
The default is that they can
recover 50% of their cost,
01:27:35.370 --> 01:27:38.640
and they share some
risk in going forward
01:27:38.640 --> 01:27:39.730
with these projects.
01:27:39.730 --> 01:27:42.520
And so from the CPUCs perspective,
01:27:42.520 --> 01:27:44.477
from the comments
that we filed in the past
01:27:44.477 --> 01:27:46.640
and from other state Commissions
01:27:46.640 --> 01:27:48.720
or peer advocates across the country,
01:27:48.720 --> 01:27:52.720
we urge FERC to retain a current policy.
01:27:52.720 --> 01:27:54.650
That was one place where
we differed with the CAISO,
01:27:54.650 --> 01:27:58.320
they arranged FERC to
automatically award the incentives
01:27:58.320 --> 01:28:02.450
in the NOPR automatically where the 100%
01:28:02.450 --> 01:28:05.432
of abandon plan
incentive in this context,
01:28:05.432 --> 01:28:07.932
in the NOPR, FERC doesn't say,
01:28:09.174 --> 01:28:12.416
precisely, that that's what
they're gonna be doing,
01:28:12.416 --> 01:28:14.200
but the way that they're approaching it,
01:28:14.200 --> 01:28:16.430
they're saying they're gonna
get rid of the dividing line
01:28:16.430 --> 01:28:19.230
between when that order is issued,
01:28:19.230 --> 01:28:23.450
as that being the
determinant factor in assessing
01:28:23.450 --> 01:28:24.980
what costs to be recovered.
01:28:24.980 --> 01:28:26.580
And so they're essentially doing
01:28:27.790 --> 01:28:29.607
what we had advocated against
01:28:29.607 --> 01:28:32.200
and what the CAISO would advocate for.
01:28:32.200 --> 01:28:34.314
Or they're proposing to do, as to say.
01:28:34.314 --> 01:28:35.864
Does that answer your question?
01:28:37.730 --> 01:28:38.980
Yes. Thank you.
01:28:38.980 --> 01:28:40.900
Very unfortunate.
01:28:40.900 --> 01:28:45.429
I think Commissioner
Rechtschaffen now is trying--
01:28:45.429 --> 01:28:46.579
Well, did you finish?
01:28:47.565 --> 01:28:49.898
(murmuring)
01:28:50.816 --> 01:28:53.830
Okay, Commissioner
Rechtschaffen.
01:28:53.830 --> 01:28:54.663
Thank you.
01:28:54.663 --> 01:28:56.610
I appreciate Jonathan's exhaustive
01:28:56.610 --> 01:28:59.135
and his extremely helpful answers.
01:28:59.135 --> 01:29:01.850
I wanna just highlight
one or two things,
01:29:01.850 --> 01:29:02.720
which is...
01:29:02.720 --> 01:29:05.140
Of course, I'm very supportive
of filing the comments,
01:29:05.140 --> 01:29:06.440
but I wanted to highlight.
01:29:08.296 --> 01:29:11.580
These comments are
just one of many things,
01:29:11.580 --> 01:29:14.450
a number of actions
that the condition's taking
01:29:14.450 --> 01:29:16.680
at FERC to protect rate payers
01:29:16.680 --> 01:29:19.520
from higher transmission costs at FERC.
01:29:19.520 --> 01:29:21.240
We're in a very different role at FERC,
01:29:21.240 --> 01:29:23.810
we don't set the rates for transmission.
01:29:23.810 --> 01:29:28.080
We intervene to protect
the rate payers of California.
01:29:28.080 --> 01:29:30.700
And we've done that in a
number of different instances.
01:29:30.700 --> 01:29:35.240
We've done that in challenging
the rates of return set
01:29:35.240 --> 01:29:40.213
for annual or biannual transition costs.
01:29:41.210 --> 01:29:44.580
We've been challenging
the utilities arguing
01:29:44.580 --> 01:29:48.760
for more visibility into the
growing number of projects
01:29:48.760 --> 01:29:51.081
that utilities classify
as routine maintenance
01:29:51.081 --> 01:29:52.840
and repair that are not part
01:29:52.840 --> 01:29:55.180
of the annual transmission project,
01:29:55.180 --> 01:29:57.600
that's subject to public review comments
01:29:57.600 --> 01:30:00.580
on this incentive policy
and other policies.
01:30:00.580 --> 01:30:02.955
I wanna commend the FERC unit,
01:30:02.955 --> 01:30:05.250
both the energy
division and legal division
01:30:05.250 --> 01:30:08.200
that works so hard on this,
01:30:08.200 --> 01:30:10.005
but this is just one of many.
01:30:10.005 --> 01:30:12.910
That's what we're taking
and as it's very clear,
01:30:12.910 --> 01:30:15.860
the net impact of all these policies
01:30:15.860 --> 01:30:20.860
is hundreds of millions
of additional profits
01:30:20.930 --> 01:30:25.420
that go to the utilities
and additional costs
01:30:25.420 --> 01:30:28.560
that ratepayer has to bear.
01:30:28.560 --> 01:30:33.342
And this proposal goes
exactly in the wrong direction.
01:30:33.342 --> 01:30:36.530
I can't resist as
Commissioner Guzman Aceves,
01:30:36.530 --> 01:30:38.420
quoted her sixth grade teacher.
01:30:38.420 --> 01:30:41.250
I have to quote Woody
Allen or some other comedian
01:30:42.180 --> 01:30:46.900
about this because
the proposal to double
01:30:46.900 --> 01:30:51.040
the incentive for participating in ISO
01:30:51.040 --> 01:30:53.170
or regional transmission organization,
01:30:53.170 --> 01:30:57.870
even if it's mandatory is so baffling
01:30:57.870 --> 01:31:01.197
and as Commissioners
Shiroma that this policy
01:31:01.197 --> 01:31:03.720
has been repudiated by denied circuit,
01:31:03.720 --> 01:31:06.650
yet FERC stubbornly claims to it.
01:31:06.650 --> 01:31:08.850
I think it was Woody
Allen or somebody said,
01:31:08.850 --> 01:31:11.010
half of life is just showing up.
01:31:11.010 --> 01:31:13.210
So you show up at this ISO,
01:31:13.210 --> 01:31:15.787
you have no choice under California law,
01:31:15.787 --> 01:31:20.030
and you get $145 million
that rate payers have to pay.
01:31:20.030 --> 01:31:21.540
There's no public benefit to it.
01:31:21.540 --> 01:31:23.760
It's contrary to the entire purposes
01:31:23.760 --> 01:31:26.785
of the statutory provisions,
which is through reduce costs
01:31:26.785 --> 01:31:29.550
for consumers to
incentivize transmission cost.
01:31:29.550 --> 01:31:32.920
So thank you very much for
your strong leadership in this.
01:31:32.920 --> 01:31:36.187
And I'm very supportive
of filing comments.
01:31:37.930 --> 01:31:39.493
Thank you, Commissioners.
01:31:41.900 --> 01:31:46.540
It's atrocious, the sixth grade teacher
01:31:46.540 --> 01:31:49.110
and Woody Allen and everyone else.
01:31:49.110 --> 01:31:53.910
Jonathan, thank you for
your encyclopedic knowledge.
01:31:53.910 --> 01:31:58.910
And my mind kept
wandering to November 4th.
01:31:59.280 --> 01:32:00.253
I've got to say.
01:32:01.500 --> 01:32:04.810
This body has got to change at any rate,
01:32:04.810 --> 01:32:05.980
unfortunately, their terms,
01:32:05.980 --> 01:32:10.320
but we clearly need some better thinking
01:32:15.270 --> 01:32:20.270
and better logic coming out of a FERC.
01:32:21.420 --> 01:32:22.530
There's no doubt about it.
01:32:22.530 --> 01:32:27.530
So I echo your feelings,
my fellow Commissioners,
01:32:28.060 --> 01:32:30.880
and I think (indistinct) is another word
01:32:30.880 --> 01:32:33.390
that comes to mind besides atrocious.
01:32:33.390 --> 01:32:37.040
So with that, are there
any other comments
01:32:37.040 --> 01:32:41.072
on item 44 for Mr. Knapp?
01:32:41.072 --> 01:32:43.897
I just wanted to really
briefly thank Jonathan
01:32:43.897 --> 01:32:47.499
for all the hard work
on this proceeding,
01:32:47.499 --> 01:32:50.793
as you could tell, he really
understands it quite well
01:32:50.793 --> 01:32:53.077
and put a lot of time into it.
01:32:53.077 --> 01:32:56.430
And I always enjoy working with him
01:32:56.430 --> 01:32:58.463
and really thank him for his work.
01:32:59.327 --> 01:33:00.766
Absolutely.
01:33:00.766 --> 01:33:02.360
Thank you
so much Commissioner
01:33:02.360 --> 01:33:04.530
and President Batjer
and all the Commissioners.
01:33:04.530 --> 01:33:07.050
I also do want you know
that I've worked very closely
01:33:07.050 --> 01:33:09.260
with Simone Herd on this project.
01:33:09.260 --> 01:33:11.633
And it's a very much team effort.
01:33:12.893 --> 01:33:14.919
Thanks Simone as well.
01:33:14.919 --> 01:33:16.430
We appreciate it greatly.
01:33:16.430 --> 01:33:19.565
This is, as I said,
encyclopedic knowledge
01:33:19.565 --> 01:33:24.550
and so helpful today
with your presentation
01:33:24.550 --> 01:33:27.873
and answers to our
questions and explanations.
01:33:28.942 --> 01:33:31.930
So no other comments seeing none,
01:33:31.930 --> 01:33:36.322
well, the Agenda Clerk,
please call the roll for item 44.
01:33:36.322 --> 01:33:39.300
Commissioner Shiroma.
01:33:39.300 --> 01:33:42.255
Aye. And I also
would like to just thank
01:33:42.255 --> 01:33:44.354
my Legal Advisor and Chief of Staff
01:33:44.354 --> 01:33:46.701
(indistinct) on this particular item
01:33:46.701 --> 01:33:49.140
my thanks to all, Aye.
01:33:50.831 --> 01:33:53.490
Commissioner Guzman Aceves.
01:33:53.490 --> 01:33:55.020
Aye.
01:33:55.020 --> 01:33:57.058
Commissioner Randolph.
01:33:57.058 --> 01:33:58.033
Aye.
01:33:58.033 --> 01:34:00.400
Commissioner Rechtschaffen
01:34:00.400 --> 01:34:01.311
Aye.
01:34:01.311 --> 01:34:03.392
And President Batjer.
01:34:03.392 --> 01:34:04.800
Aye. Thank you.
01:34:04.800 --> 01:34:06.960
The vote is unanimous on item 44.
01:34:06.960 --> 01:34:10.580
Moving now on to item 46,
Commissioner Rechtschaffen,
01:34:10.580 --> 01:34:12.333
and that is your item to present.
01:34:14.682 --> 01:34:16.447
Thank you President Batjer.
01:34:17.516 --> 01:34:22.516
This is an extension order
in the Charge Ready 2 case.
01:34:22.721 --> 01:34:27.209
It is a transportation
electrification application
01:34:27.209 --> 01:34:29.870
from California Edison
proposes to expand
01:34:29.870 --> 01:34:33.123
its existing Charge Ready 1 program,
01:34:34.220 --> 01:34:36.678
which cost just over $20 million.
01:34:36.678 --> 01:34:40.873
They propose to expand
this program to $760 million.
01:34:42.020 --> 01:34:44.400
Obviously it's a very large increase.
01:34:44.400 --> 01:34:47.370
We've authorized less than $300 million
01:34:47.370 --> 01:34:49.560
for light duty
transportation electrification
01:34:49.560 --> 01:34:50.843
for all of the utilities.
01:34:50.843 --> 01:34:53.700
And that just gives you
some indication of the scale
01:34:53.700 --> 01:34:55.203
of this request.
01:34:55.203 --> 01:34:57.916
There's very many
important that are complex.
01:34:57.916 --> 01:35:01.218
We've had an eccentric
evidentiary record,
01:35:01.218 --> 01:35:04.718
we're a little bit,
unfortunately behind schedule,
01:35:04.718 --> 01:35:09.090
not for lack of effort we have a strong,
01:35:09.090 --> 01:35:12.300
they have team that's been
working on it overall rulemaking
01:35:12.300 --> 01:35:16.510
from gestational application,
holding numerous workshops,
01:35:16.510 --> 01:35:19.483
many different tracks that
we have a stellar judge,
01:35:20.520 --> 01:35:22.330
but we're very, very close.
01:35:22.330 --> 01:35:26.300
I fully expect to have a
decision issued next month
01:35:26.300 --> 01:35:28.490
when we do a consideration in August,
01:35:28.490 --> 01:35:31.360
this order will offend the
deadline for the end of the year.
01:35:31.360 --> 01:35:32.717
I guess we have support for that.
01:35:32.717 --> 01:35:36.010
But as I said, we
anticipate and fully expect
01:35:36.010 --> 01:35:38.110
a decision to be issued
in the next month.
01:35:41.313 --> 01:35:42.960
Thank you Commissioner
Rechtschaffen.
01:35:42.960 --> 01:35:45.693
Are there any comments on item 46?
01:35:47.920 --> 01:35:49.810
Okay, seeing none,
well, the Agenda Clerk
01:35:49.810 --> 01:35:51.227
please call the roll.
01:35:51.227 --> 01:35:54.145
I'm 46
Commissioner Shiroma.
01:35:54.145 --> 01:35:55.219
Aye.
01:35:55.219 --> 01:35:57.350
Commissioner Guzman Aceves
01:35:57.350 --> 01:35:58.420
Aye.
01:35:58.420 --> 01:35:59.972
Commissioner Randolph.
01:35:59.972 --> 01:36:01.622
Yes.
01:36:01.622 --> 01:36:04.460
Commissioner Rechtschaffen.
01:36:04.460 --> 01:36:05.830
Yes.
01:36:05.830 --> 01:36:07.780
President Batjer.
01:36:07.780 --> 01:36:08.916
Yes.
01:36:08.916 --> 01:36:09.930
Thank you.
01:36:09.930 --> 01:36:12.240
The vote is unanimous on item 46.
01:36:12.240 --> 01:36:14.235
Moving now onto item 47.
01:36:14.235 --> 01:36:16.683
Commissioner Guzman Aceves to present.
01:36:17.690 --> 01:36:18.523
Thank you.
01:36:18.523 --> 01:36:20.421
This item is related to an investigation
01:36:20.421 --> 01:36:24.860
into PG&E's failure to
provide a 24 hour notice,
01:36:24.860 --> 01:36:26.574
prior to disconnections.
01:36:26.574 --> 01:36:29.340
We actually voted
out the decision on this
01:36:29.340 --> 01:36:30.963
a few months back,
01:36:30.963 --> 01:36:34.800
but we're keeping the
proceeding open to finalize
01:36:34.800 --> 01:36:38.563
a payment as part of the settlement.
01:36:38.563 --> 01:36:43.450
And so I would like your
support to extend this proceeding
01:36:43.450 --> 01:36:46.113
until March of 2021. Thank you.
01:36:48.710 --> 01:36:49.543
Okay, thank you.
01:36:49.543 --> 01:36:52.673
Are there any comments on item 47?
01:36:54.271 --> 01:36:57.810
Seeing none, well, the
Agenda Clerk please call the roll.
01:36:57.810 --> 01:37:00.368
For item 47,
Commissioner Shiroma.
01:37:00.368 --> 01:37:01.325
Aye.
01:37:01.325 --> 01:37:03.317
Commissioner Guzman Aceves.
01:37:05.245 --> 01:37:06.128
Aye.
01:37:06.128 --> 01:37:08.310
Commissioner Randolph.
01:37:08.310 --> 01:37:09.355
Yes.
01:37:09.355 --> 01:37:11.720
Commissioner Rechtschaffen.
01:37:11.720 --> 01:37:13.100
Yes.
01:37:13.100 --> 01:37:14.670
President Batjer.
01:37:14.670 --> 01:37:15.820
Yes.
01:37:15.820 --> 01:37:19.620
Thank you all, the vote
is unanimous for item 47.
01:37:19.620 --> 01:37:22.150
Moving on to item 48.
01:37:22.150 --> 01:37:25.903
Again, Commissioner
Guzman Aceves to present.
01:37:25.903 --> 01:37:26.736
Thank you.
01:37:26.736 --> 01:37:30.450
This is an extension
on a complaint against,
01:37:30.450 --> 01:37:34.140
AT&T and I'm asking for an extension
01:37:35.910 --> 01:37:38.620
until the end of the year till December,
01:37:38.620 --> 01:37:41.720
the providing that officer
decision has been drafted.
01:37:41.720 --> 01:37:44.100
And so hopefully this
will give us enough time
01:37:44.100 --> 01:37:46.163
to get it voted on. Thank you.
01:37:47.132 --> 01:37:47.970
Thank you.
01:37:47.970 --> 01:37:49.973
Any questions on item 48?
01:37:51.080 --> 01:37:53.930
Seeing none, well, the
Agenda Clerk please call the roll.
01:37:55.090 --> 01:37:57.424
Commissioner Shiroma.
01:37:57.424 --> 01:37:58.520
Aye,
01:37:58.520 --> 01:38:00.370
Commissioner Guzman Aceves.
01:38:00.370 --> 01:38:01.647
Aye.
01:38:01.647 --> 01:38:03.790
Commissioner Randolph.
01:38:03.790 --> 01:38:04.766
Yes.
01:38:04.766 --> 01:38:07.159
Commissioner Rechtschaffen.
01:38:07.159 --> 01:38:08.116
Yes.
01:38:08.116 --> 01:38:10.120
And President Batjer.
01:38:10.120 --> 01:38:11.130
Yes.
01:38:11.130 --> 01:38:16.130
The vote for item number
48 is unanimous. Thank you.
01:38:16.530 --> 01:38:19.973
Moving on now to item 49,
Commissioner Randolph to present.
01:38:21.660 --> 01:38:24.860
This order for (indistinct)
statutory deadline
01:38:24.860 --> 01:38:26.830
for the Comcast phone expansion
01:38:26.830 --> 01:38:29.293
in the Ponderosa telephone territory.
01:38:30.460 --> 01:38:34.110
This would extend the
deadline and in this application,
01:38:34.110 --> 01:38:36.550
in which Comcast seeks to expand
01:38:36.550 --> 01:38:39.540
its certificate of public
convenience and necessity
01:38:39.540 --> 01:38:43.062
to provide service in
Ponderosa telephones territory.
01:38:43.062 --> 01:38:47.170
There's currently a ban on
allowing landline competition
01:38:47.170 --> 01:38:52.039
in small incumbent, local
exchange carriers territories.
01:38:52.039 --> 01:38:55.273
However, in another proceeding assigned
01:38:55.273 --> 01:38:56.893
to a different office,
01:38:56.893 --> 01:38:58.930
the Commission is examining the issue
01:38:58.930 --> 01:39:01.370
of possibly allowing
landline competition
01:39:01.370 --> 01:39:03.450
in small (indistinct) territory.
01:39:03.450 --> 01:39:06.210
Phase two of that proceeding has begun
01:39:06.210 --> 01:39:11.200
So we're tucking ourselves
behind that proceeding
01:39:11.200 --> 01:39:14.423
because there are a lot
of overlapping concerns.
01:39:18.143 --> 01:39:19.945
One proceeding focuses
on the general goal
01:39:19.945 --> 01:39:22.880
of whether you allow
landline competition.
01:39:22.880 --> 01:39:24.934
And ours is a specific request,
01:39:24.934 --> 01:39:27.083
but we really don't wanna be going
01:39:27.083 --> 01:39:29.580
in different directions
on these proceedings.
01:39:29.580 --> 01:39:32.971
So we wanna make sure
we're closely coordinating.
01:39:32.971 --> 01:39:36.013
So this extension is to June 7th, 2021,
01:39:37.130 --> 01:39:40.750
to address the significant policy issues
01:39:40.750 --> 01:39:42.710
in this proceeding and the
other proceeding as well.
01:39:42.710 --> 01:39:45.663
So I asked for your support of item 49.
01:39:46.578 --> 01:39:48.646
Great. Thank you.
01:39:48.646 --> 01:39:51.080
Well, the agenda clerk...
01:39:51.080 --> 01:39:53.893
Oh sorry, are there any
questions on item 49?
01:39:54.864 --> 01:39:58.256
I see none, well, the Agenda
Clerk please call the roll.
01:39:58.256 --> 01:40:01.759
For item 49,
Commissioner Shiroma.
01:40:01.759 --> 01:40:02.963
Aye.
01:40:02.963 --> 01:40:05.141
Commissioner Guzman Aceves.
01:40:05.141 --> 01:40:06.403
Aye.
01:40:06.403 --> 01:40:08.833
Commissioner Randolph.
01:40:08.833 --> 01:40:09.937
Yes.
01:40:09.937 --> 01:40:12.335
Commissioner Rechtschaffen.
01:40:12.335 --> 01:40:13.459
Yes.
01:40:13.459 --> 01:40:15.500
President Batjer.
01:40:15.500 --> 01:40:16.950
Yes.
01:40:16.950 --> 01:40:19.758
The vote for item 49 is unanimous.
01:40:19.758 --> 01:40:21.370
Thank you very much.
01:40:21.370 --> 01:40:23.432
Moving now onto items 50,
01:40:23.432 --> 01:40:26.720
Commissioner Rechtschaffen to present.
01:40:26.720 --> 01:40:31.720
This is an extension order
in San Gabriel Waters, PRC
01:40:31.910 --> 01:40:36.060
It was filed in January, 2019.
01:40:36.060 --> 01:40:40.400
The 18 month statutory
deadline is this July 3rd,
01:40:40.400 --> 01:40:44.570
last December San Gabriel
and the Public Advocate's office,
01:40:44.570 --> 01:40:47.990
reached to settlement
resolving all contested issues.
01:40:47.990 --> 01:40:51.710
In March, the Fontana
Unified School District joined
01:40:51.710 --> 01:40:54.360
the settlement agreement,
we now have pending
01:40:54.360 --> 01:40:55.600
in all parties' settlement.
01:40:55.600 --> 01:40:59.135
So we expect that a proposed
decision resolving the matter
01:40:59.135 --> 01:41:02.195
will be published in the
very, very near future.
01:41:02.195 --> 01:41:05.281
So we're requesting only a
two months statutory deadline
01:41:05.281 --> 01:41:09.380
until August 31st of this year.
01:41:09.380 --> 01:41:10.830
And I asked for your support.
01:41:12.169 --> 01:41:14.663
Are there any
questions on item 50?
01:41:16.000 --> 01:41:19.130
I see none, well, the Agenda
Clerk please call the roll.
01:41:19.130 --> 01:41:22.170
For item 50,
Commissioner Shiroma.
01:41:22.170 --> 01:41:23.015
Aye.
01:41:23.015 --> 01:41:25.310
Commissioner Guzman Aceves.
01:41:25.310 --> 01:41:26.322
Aye.
01:41:26.322 --> 01:41:28.395
Commissioner Randolph.
01:41:28.395 --> 01:41:29.228
Yes.
01:41:30.147 --> 01:41:32.414
Commissioner Rechtschaffen.
01:41:32.414 --> 01:41:33.485
Yes.
01:41:33.485 --> 01:41:35.518
President Batjer.
01:41:35.518 --> 01:41:39.386
The vote on item 50
is unanimous. Thank you.
01:41:39.386 --> 01:41:42.530
Moving now on the other 51.
01:41:42.530 --> 01:41:44.172
And that is item...
01:41:44.172 --> 01:41:47.423
Excuse me, is Randolph's to present.
01:41:48.970 --> 01:41:53.010
This is another PRC
for a water company,
01:41:53.010 --> 01:41:56.373
California water companies,
general rate case.
01:41:57.560 --> 01:42:00.278
This case is for all of their districts,
01:42:00.278 --> 01:42:04.233
several of which are consolidated
for rate making purposes.
01:42:05.080 --> 01:42:07.260
In spring of this year,
01:42:07.260 --> 01:42:09.973
several motions were filed
that could impact procedural
01:42:09.973 --> 01:42:12.360
as well as substantive issues.
01:42:12.360 --> 01:42:16.480
And we need time to
address those motions.
01:42:16.480 --> 01:42:20.690
So a short extension of
statutory deadline is necessary.
01:42:20.690 --> 01:42:22.867
The current deadline is July 1st, 2020,
01:42:22.867 --> 01:42:27.867
and we're asking for an
extension to September 30th, 2020.
01:42:28.090 --> 01:42:29.400
Thank you.
01:42:29.400 --> 01:42:31.093
Great. Okay.
01:42:31.093 --> 01:42:34.763
Any questions for items 51?
01:42:35.862 --> 01:42:39.241
I see none, well, the Agenda
Clerk, please call the roll.
01:42:39.241 --> 01:42:42.490
For item 51,
Commissioner Shiroma.
01:42:42.490 --> 01:42:43.323
Aye.
01:42:43.323 --> 01:42:45.711
Commissioner Guzman Aceves.
01:42:45.711 --> 01:42:47.302
Aye.
01:42:47.302 --> 01:42:49.550
Commissioner Randolph.
01:42:49.550 --> 01:42:50.633
Yes.
01:42:50.633 --> 01:42:52.884
Commissioner Rechtschaffen
01:42:52.884 --> 01:42:53.808
Yes.
01:42:53.808 --> 01:42:56.058
President Batjer.
01:42:58.230 --> 01:42:59.147
Yes. Thank you.
01:43:00.370 --> 01:43:04.180
The vote is unanimous for item 51.
01:43:04.180 --> 01:43:06.770
Moving now onto item 52
01:43:06.770 --> 01:43:10.150
which is Commissioner Guzman to present.
01:43:10.150 --> 01:43:10.983
Thank you.
01:43:10.983 --> 01:43:14.270
This is an order extending
the statutory deadline
01:43:14.270 --> 01:43:16.647
for the Net Energy Metering proceeding.
01:43:16.647 --> 01:43:18.890
And I'm requesting that we extended out
01:43:18.890 --> 01:43:20.705
to January of next year.
01:43:20.705 --> 01:43:23.923
There's a couple of
decisions that we're finalizing.
01:43:24.830 --> 01:43:27.610
One resolution dealing
with consumer protections
01:43:27.610 --> 01:43:31.244
and one dealing with
the restitution fund.
01:43:31.244 --> 01:43:35.480
And I'm hopeful that we
can get those finalized
01:43:35.480 --> 01:43:37.180
in the next six months.
01:43:37.180 --> 01:43:40.040
We're also intending to
open a new NEM rule making
01:43:40.040 --> 01:43:42.343
in the near future. Thank you.
01:43:43.670 --> 01:43:44.503
Thank you.
01:43:44.503 --> 01:43:47.873
Are there any questions of item 52?
01:43:50.087 --> 01:43:53.480
I see none, well, the Agenda
Clerk please call the roll.
01:43:53.480 --> 01:43:56.272
For item 52,
Commissioner Shiroma.
01:43:56.272 --> 01:43:57.269
Aye.
01:43:57.269 --> 01:43:59.770
Commissioner Guzman Aceves.
01:43:59.770 --> 01:44:00.893
Aye.
01:44:00.893 --> 01:44:03.239
Commissioner Randolph.
01:44:03.239 --> 01:44:04.344
Yes.
01:44:04.344 --> 01:44:06.886
Commissioner Rechtschaffen.
01:44:06.886 --> 01:44:07.890
Yes.
01:44:07.890 --> 01:44:09.635
President Batjer.
01:44:09.635 --> 01:44:11.190
Yes. Thank you.
01:44:11.190 --> 01:44:13.626
The vote on item 52 is unanimous.
01:44:13.626 --> 01:44:16.250
Moving now on to item 53
01:44:16.250 --> 01:44:19.640
and that is Commissioner
Rechtschaffen to present.
01:44:19.640 --> 01:44:20.725
Thank you.
01:44:20.725 --> 01:44:23.760
This is AT&T versus Blue Casa.
01:44:23.760 --> 01:44:28.328
The current deadline under
the statute is June 30th.
01:44:28.328 --> 01:44:32.250
We're asking for very
relatively short extension
01:44:32.250 --> 01:44:35.160
in order to allow the
signed LJ to draft it
01:44:35.160 --> 01:44:38.250
from citing office and
decision and provide parties
01:44:38.250 --> 01:44:41.110
with time to decide
whether to file an appeal
01:44:41.110 --> 01:44:43.960
of the presiding officer's decision.
01:44:43.960 --> 01:44:45.283
I asked for your support.
01:44:47.110 --> 01:44:49.076
Thank you, Commissioner
Rechtschaffen.
01:44:49.076 --> 01:44:50.743
Are there any questions?
01:44:53.070 --> 01:44:54.060
Okay, seeing none.
01:44:54.060 --> 01:44:56.990
Well, the Agenda
Clerk please call the roll.
01:44:56.990 --> 01:45:00.830
For item 53
Commissioner Shiroma.
01:45:00.830 --> 01:45:01.818
Aye.
01:45:01.818 --> 01:45:04.373
Commissioner Guzman Aceves.
01:45:04.373 --> 01:45:05.235
Aye.
01:45:05.235 --> 01:45:07.630
Commissioner Randolph.
01:45:07.630 --> 01:45:08.463
Yes.
01:45:08.463 --> 01:45:10.940
Commissioner Rechtschaffen.
01:45:10.940 --> 01:45:12.003
Yes.
01:45:12.003 --> 01:45:14.200
President Batjer.
01:45:14.200 --> 01:45:16.969
Yes. The vote is unanimous.
01:45:16.969 --> 01:45:20.154
Moving now on to item 54.
01:45:20.154 --> 01:45:23.750
That is also Commissioner Rechtschaffen.
01:45:23.750 --> 01:45:24.840
Thank you.
01:45:24.840 --> 01:45:29.840
This is the Aliso Canyon
order instituting investigation.
01:45:29.917 --> 01:45:34.500
We opened this investigation
in June of last year
01:45:34.500 --> 01:45:38.790
and it concerns the practices SoCalGas
01:45:38.790 --> 01:45:42.970
with respect to the Aliso
Canyon storage facility
01:45:42.970 --> 01:45:46.060
and the uncontrolled
release of natural gas
01:45:46.060 --> 01:45:49.210
that occurred at the facility in 2015.
01:45:49.210 --> 01:45:53.033
We have a statutory
deadline of June 26th.
01:45:53.941 --> 01:45:56.690
This is a complicated proceeding,
01:45:56.690 --> 01:45:58.733
it's currently in phase one.
01:45:59.600 --> 01:46:03.530
A lot of the focus of
the parties has been
01:46:03.530 --> 01:46:07.950
on the objections of
SoCalGas to reimbursing
01:46:07.950 --> 01:46:12.950
the state for the
investigation related costs
01:46:14.261 --> 01:46:17.590
that the Commission staff incurred.
01:46:17.590 --> 01:46:21.050
There's been a lot of discovery
among the parties around
01:46:21.050 --> 01:46:23.781
the testimony's been
submitted by the parties.
01:46:23.781 --> 01:46:25.810
In January of this year,
01:46:25.810 --> 01:46:29.360
we issued a decision
addressing SoCal's objection
01:46:29.360 --> 01:46:30.710
to immersing the state
01:46:30.710 --> 01:46:33.773
for investigation related cost.
01:46:34.627 --> 01:46:37.270
The parties have
requested extension of time
01:46:37.270 --> 01:46:39.740
and several filings and
creating something related
01:46:39.740 --> 01:46:42.800
to COVID causing delays in the schedule.
01:46:42.800 --> 01:46:47.270
But this really is a very
complex investigation.
01:46:47.270 --> 01:46:50.973
And I think an extension of
the deadline, it's appropriate.
01:46:50.973 --> 01:46:54.323
And we're asking for an
extension till December, 2021,
01:46:55.880 --> 01:46:57.720
given the nature of this case.
01:46:57.720 --> 01:46:58.993
I ask for your support.
01:47:00.026 --> 01:47:03.803
Any questions on item 54?
01:47:06.450 --> 01:47:07.460
Okay, seeing none.
01:47:07.460 --> 01:47:09.773
Well, the Agenda
Clerk, please call the roll.
01:47:09.773 --> 01:47:11.420
For item 44...
01:47:11.420 --> 01:47:14.402
Excuse me, 54 Commissioner Shiroma.
01:47:14.402 --> 01:47:15.341
Aye.
01:47:15.341 --> 01:47:17.632
Commissioner Guzman Aceves.
01:47:17.632 --> 01:47:18.756
Aye.
01:47:18.756 --> 01:47:20.356
Commissioner Randolph.
01:47:21.480 --> 01:47:22.407
Yes.
01:47:22.407 --> 01:47:24.721
Commissioner Rechtschaffen.
01:47:24.721 --> 01:47:25.669
Yes.
01:47:25.669 --> 01:47:27.986
President Batjer.
01:47:27.986 --> 01:47:28.819
Yes.
01:47:28.819 --> 01:47:32.260
Thank you, the vote is
unanimous for items 54.
01:47:32.260 --> 01:47:36.853
Moving now to item 55, to
present Commissioner Randolph.
01:47:38.240 --> 01:47:42.240
Okay, this is our
last statutory extension
01:47:42.240 --> 01:47:43.538
for this meeting.
01:47:43.538 --> 01:47:45.640
It would extend the
statutory (mumbles) line
01:47:45.640 --> 01:47:49.146
in this proceeding, in
which the SJW Group,
01:47:49.146 --> 01:47:52.130
the holding company
of San Jose water seeks
01:47:52.130 --> 01:47:54.296
to purchase Connecticut water service.
01:47:54.296 --> 01:47:56.660
This transaction needed the approval
01:47:56.660 --> 01:48:00.630
of two other state agencies
in Connecticut and Maine.
01:48:00.630 --> 01:48:02.533
Those agencies have acted.
01:48:03.700 --> 01:48:07.370
And so our proceeding can resume.
01:48:07.370 --> 01:48:11.250
The current statutory
deadline is July 12th, 2020,
01:48:11.250 --> 01:48:16.130
and we've asked for an
extension of about six months
01:48:16.130 --> 01:48:19.333
to January 12th, 2021. Thank you.
01:48:20.520 --> 01:48:22.370
Okay, thank you.
01:48:22.370 --> 01:48:26.830
That does conclude
the regular agenda items.
01:48:26.830 --> 01:48:27.791
So now move on--
01:48:27.791 --> 01:48:29.424
We have to
vote on that one.
01:48:29.424 --> 01:48:30.615
Oh, I'm sorry.
01:48:30.615 --> 01:48:31.448
(laughing)
01:48:31.448 --> 01:48:34.783
When you said we were
done, I was ready to be done.
01:48:34.783 --> 01:48:36.610
(laughing)
01:48:36.610 --> 01:48:37.980
Okay, so sorry.
01:48:37.980 --> 01:48:40.663
Are there any comments on item 55?
01:48:42.920 --> 01:48:43.780
Okay, seeing none.
01:48:43.780 --> 01:48:46.560
Well, the Agenda
Clerk please call the roll?
01:48:46.560 --> 01:48:49.571
For item 55,
Commissioner Shiroma.
01:48:49.571 --> 01:48:50.621
Aye.
01:48:50.621 --> 01:48:53.015
Commissioner Guzman Aceves.
01:48:53.015 --> 01:48:53.848
Aye.
01:48:53.848 --> 01:48:55.957
Commissioner Randolph.
01:48:55.957 --> 01:48:57.358
Yes.
01:48:57.358 --> 01:48:59.875
Commissioner Rechtschaffen.
01:48:59.875 --> 01:49:00.977
Yes.
01:49:00.977 --> 01:49:03.070
President Batjer.
01:49:03.070 --> 01:49:04.050
Yes. Thank you.
01:49:04.050 --> 01:49:07.310
The vote is unanimous for item 55.
01:49:07.310 --> 01:49:09.670
Okay, that does now finally conclude
01:49:09.670 --> 01:49:10.990
the regular agenda items.
01:49:10.990 --> 01:49:15.870
We will move now onto
the management reports.
01:49:15.870 --> 01:49:18.700
There is no report for item 57,
01:49:18.700 --> 01:49:20.410
which is the report and discussion
01:49:20.410 --> 01:49:23.618
on recent consumer
protections and safety activities.
01:49:23.618 --> 01:49:28.290
And there's no report for
item 58 management report
01:49:28.290 --> 01:49:30.013
by administrative activities.
01:49:32.131 --> 01:49:35.150
But we're now moving
on to the next agenda item,
01:49:35.150 --> 01:49:37.097
which is a Commissioner's report.
01:49:37.097 --> 01:49:39.384
Who would like to go first today?
01:49:39.384 --> 01:49:41.423
Yes, Commissioner Randolph.
01:49:42.750 --> 01:49:47.750
Okay. I wanted to
report on two items.
01:49:49.210 --> 01:49:54.210
So I wanted to announce that
Daisy Yee has joined our office
01:49:54.390 --> 01:49:59.390
on a temporary basis to cover
for Mark Smith in my office,
01:50:00.430 --> 01:50:04.450
who is now the proud
father of little Mackenzie Ada,
01:50:04.450 --> 01:50:06.913
and will be taking maternity leave.
01:50:08.220 --> 01:50:10.850
Daisy began her tenure
at the PUC in the News
01:50:10.850 --> 01:50:12.997
and Outreach office in 2015.
01:50:12.997 --> 01:50:15.660
And prior to that, she held positions
01:50:15.660 --> 01:50:18.450
at the Department
of Industrial Relations,
01:50:18.450 --> 01:50:21.550
the California Judicial
Council in the office
01:50:21.550 --> 01:50:26.140
of former U.S. Senator Barbara Boxer.
01:50:26.140 --> 01:50:29.680
She holds a Masters of Science
from Golden Gate University
01:50:29.680 --> 01:50:32.530
and a BA from San Jose State University.
01:50:32.530 --> 01:50:36.550
And we're very happy to
have her in our office pitching
01:50:37.400 --> 01:50:41.743
in while Mark is home
with little Mackenzie.
01:50:43.373 --> 01:50:46.080
And then I also wanted to give...
01:50:46.080 --> 01:50:47.880
Sorry, I'm pulling up my notes here,
01:50:48.740 --> 01:50:53.693
to give an update on the
Aliso Canyon proceeding,
01:50:54.750 --> 01:50:59.220
which is the proceeding that
considers the longterm use
01:50:59.220 --> 01:51:03.473
and viability of the
Aliso Canyon facility.
01:51:04.700 --> 01:51:09.700
We have an all day workshop
coming up on July 28th.
01:51:09.835 --> 01:51:14.835
It was originally scheduled
for this coming week in June,
01:51:15.050 --> 01:51:18.063
but we moved it out to July 28th.
01:51:19.270 --> 01:51:21.350
And that will provide
parties with an update
01:51:21.350 --> 01:51:23.290
on the ongoing modeling efforts that
01:51:23.290 --> 01:51:25.560
the Commission has undertaken.
01:51:25.560 --> 01:51:30.050
In particular, the first set of
hydraulic modeling results
01:51:30.050 --> 01:51:32.250
will be presented at this workshop.
01:51:32.250 --> 01:51:35.380
Those results will
evaluate key reliability
01:51:35.380 --> 01:51:38.492
and feasibility requirements
of both the natural gas
01:51:38.492 --> 01:51:41.500
and electric power systems by analyzing
01:51:41.500 --> 01:51:45.140
the gas system under
peaky gas demand conditions
01:51:45.140 --> 01:51:47.922
in order to identify the
monthly minimum level of gas
01:51:47.922 --> 01:51:49.690
and underground storage needed
01:51:49.690 --> 01:51:53.030
to maintain reasonable
electricity and gas rates
01:51:53.030 --> 01:51:56.970
to determine whether
the use of the facility
01:51:56.970 --> 01:51:59.673
can be reduced or eliminated.
01:52:00.610 --> 01:52:01.490
In the meantime,
01:52:01.490 --> 01:52:05.380
we're contracting with an
independent expert consultant
01:52:05.380 --> 01:52:07.330
on the third phase of the proceeding,
01:52:07.330 --> 01:52:09.300
which will build on the modeling results
01:52:09.300 --> 01:52:14.190
that we are presenting in phase two.
01:52:14.190 --> 01:52:17.760
So that study we'll use
these modeling scenarios
01:52:17.760 --> 01:52:21.373
to examine how to replace
the facility in its entirety,
01:52:22.900 --> 01:52:25.740
without impacting
reliability in the region
01:52:25.740 --> 01:52:29.070
and preserving just reasonable rates.
01:52:29.070 --> 01:52:31.550
So the consultant will be
able to use the assumptions
01:52:31.550 --> 01:52:33.680
we've incorporated into our own modeling
01:52:33.680 --> 01:52:36.522
about declining gas use and determine
01:52:36.522 --> 01:52:41.243
what our options are with
regard to the proceeding,
01:52:41.243 --> 01:52:43.900
also in regard to the facility.
01:52:43.900 --> 01:52:47.730
And so all of this
modeling work has taken
01:52:47.730 --> 01:52:49.740
a lot of time and a lot of effort,
01:52:49.740 --> 01:52:54.250
but it really is absolutely
critical to understand
01:52:54.250 --> 01:52:56.930
how the system works in what conditions
01:52:56.930 --> 01:52:58.593
do we use the facility?
01:52:59.747 --> 01:53:04.350
And what options there
are for different opportunities
01:53:04.350 --> 01:53:07.670
to provide reliability
at a reasonable cost?
01:53:07.670 --> 01:53:11.610
So I hope folks who are
interested in this proceeding
01:53:11.610 --> 01:53:13.968
will join us virtually on July 28th
01:53:13.968 --> 01:53:17.084
to hear these important results.
01:53:17.084 --> 01:53:19.000
Thank you very much.
01:53:19.000 --> 01:53:20.990
Great. Thank you for that.
01:53:20.990 --> 01:53:22.310
Notice I've taken note.
01:53:22.310 --> 01:53:25.093
I plan to be there virtually.
01:53:26.010 --> 01:53:27.883
And who would like to present next?
01:53:30.080 --> 01:53:31.900
Commissioner Guzman Aceves.
01:53:31.900 --> 01:53:34.751
Well, I can just see
your hand, now I see you.
01:53:34.751 --> 01:53:37.690
The way you're blocked
out on your screen.
01:53:37.690 --> 01:53:41.960
I just have a very
brief update to my office.
01:53:41.960 --> 01:53:44.170
I wanna welcome Alina Dimas,
01:53:44.170 --> 01:53:47.710
who will be the newest
advisor's assistant,
01:53:47.710 --> 01:53:50.970
and she will be based in San Francisco.
01:53:50.970 --> 01:53:54.980
She has previous experience
in employee benefits insurance,
01:53:54.980 --> 01:53:58.910
and most recently she ran a
childcare center in Marin County
01:53:59.890 --> 01:54:03.950
in her free time, which she
will have none of anymore.
01:54:03.950 --> 01:54:07.053
She can't wait to get
back to swimming regularly.
01:54:07.970 --> 01:54:12.170
And I also wanted to share
interesting COVID reality,
01:54:12.170 --> 01:54:15.080
which is obviously our interview process
01:54:15.080 --> 01:54:17.545
and selection was all remote
01:54:17.545 --> 01:54:20.711
and we're onboarding in a remote way,
01:54:20.711 --> 01:54:24.740
but so much though that we were...
01:54:24.740 --> 01:54:29.740
I never was able to physically
see Alina until she started.
01:54:30.220 --> 01:54:33.196
And so it is a new reality.
01:54:33.196 --> 01:54:36.150
I really welcome her
after taking the leap
01:54:36.150 --> 01:54:39.653
with so many new processes.
01:54:40.556 --> 01:54:41.389
Thank you.
01:54:42.290 --> 01:54:43.510
Thank you, Commissioner.
01:54:43.510 --> 01:54:44.910
I agree with you.
01:54:44.910 --> 01:54:47.060
We will be doing some
onboarding as well,
01:54:47.060 --> 01:54:51.046
and it's quite challenging
to be able to welcome
01:54:51.046 --> 01:54:56.000
a new team member when
we're just physically separated,
01:54:56.000 --> 01:54:58.430
but we have to continue to be very safe.
01:54:58.430 --> 01:55:00.209
So understood.
01:55:00.209 --> 01:55:02.944
And who would like to go next?
01:55:02.944 --> 01:55:04.694
Commissioner Shiroma.
01:55:06.089 --> 01:55:08.060
Thank you, President Batjer.
01:55:08.060 --> 01:55:09.507
I actually have six items,
01:55:09.507 --> 01:55:12.370
I'll go through those pretty quickly.
01:55:12.370 --> 01:55:14.370
First of all, I wanna report out that
01:55:14.370 --> 01:55:18.242
on June 12th day after
our last board meeting,
01:55:18.242 --> 01:55:21.780
I attended the low
income oversight boards.
01:55:21.780 --> 01:55:23.367
Second meeting of the year.
01:55:23.367 --> 01:55:28.090
I wanna say Jillian Weaver
or her work organizing
01:55:28.090 --> 01:55:32.200
a seamless virtual meeting
with all of the board members
01:55:32.200 --> 01:55:37.200
and almost 100 participants
and presenters on WebEx.
01:55:38.165 --> 01:55:39.860
We received a number of reports,
01:55:39.860 --> 01:55:43.200
including updates from
Commissioner Guzman Aceves analysis
01:55:43.200 --> 01:55:47.710
on the environmental and
social justice action plan
01:55:48.700 --> 01:55:52.300
I appreciation (mumbles)
from the utilities on the steps
01:55:52.300 --> 01:55:54.100
they're taking to address the needs
01:55:54.100 --> 01:55:57.858
of low income communities
and disadvantaged communities,
01:55:57.858 --> 01:56:01.663
during the COVID
pandemic and PSPS events.
01:56:02.592 --> 01:56:05.047
And for those interested
in this presentation,
01:56:05.047 --> 01:56:08.060
can be found on the low
income oversight board,
01:56:08.060 --> 01:56:09.618
TPUC webpage.
01:56:09.618 --> 01:56:12.470
And highly encourage
folks to check them out.
01:56:12.470 --> 01:56:14.895
Lots of good information there.
01:56:14.895 --> 01:56:19.270
Then the next, on Monday on June 16th,
01:56:19.270 --> 01:56:20.890
I attended the quarterly meeting
01:56:20.890 --> 01:56:23.946
of our Universal Lifeline
Telephone Service,
01:56:23.946 --> 01:56:28.550
administrative committee also on WebEx.
01:56:28.550 --> 01:56:30.150
And I actually attended.
01:56:30.150 --> 01:56:31.440
We heard from community members
01:56:31.440 --> 01:56:34.235
and our third party
administrator Maximas,
01:56:34.235 --> 01:56:36.740
a lot of updates to our lifeline program
01:56:37.700 --> 01:56:40.010
and how our continued renewal suspension
01:56:40.010 --> 01:56:43.870
in response to COVID-19 is impacting
01:56:43.870 --> 01:56:45.800
the current subscriber count.
01:56:45.800 --> 01:56:50.060
And overall we saw about a
5% increase in participation
01:56:50.060 --> 01:56:53.800
from January, 2020 are
essential for people to be able
01:56:53.800 --> 01:56:55.813
to make phone calls.
01:56:57.790 --> 01:57:00.040
We're also looking to fill vacancies
01:57:00.040 --> 01:57:01.690
within the committee from members
01:57:02.710 --> 01:57:06.010
who represent community
based organizations,
01:57:06.010 --> 01:57:10.880
consumer groups, the
competitive local exchange carrier,
01:57:10.880 --> 01:57:13.520
category, and the deaf
and hearing impaired
01:57:13.520 --> 01:57:14.913
or disabled community.
01:57:15.870 --> 01:57:18.730
This community throw
on us important role
01:57:18.730 --> 01:57:20.640
for us as Commission.
01:57:20.640 --> 01:57:22.880
It is statute driven to
advise the Commission
01:57:22.880 --> 01:57:25.410
on how can we reach all the qualified
01:57:25.410 --> 01:57:27.350
for the Lifeline program?
01:57:27.350 --> 01:57:29.520
And we're saying Shari Wurster,
01:57:29.520 --> 01:57:32.038
Kayla Jones, Jonathan (indistinct)
01:57:32.038 --> 01:57:35.260
and the communications
divisions lifeline team
01:57:35.260 --> 01:57:40.075
for organizing this event, the
advisor committee meeting.
01:57:40.075 --> 01:57:42.857
Then I want to announce that
01:57:42.857 --> 01:57:46.817
for the Southern California
Edison general rate case,
01:57:46.817 --> 01:57:51.720
we have public
participation hearings PPHs,
01:57:51.720 --> 01:57:53.273
scheduled for next week,
01:57:55.090 --> 01:58:00.090
and this will be for the test
year 2021 general rate case.
01:58:00.900 --> 01:58:02.993
Those who are familiar with this stuff,
01:58:04.110 --> 01:58:06.201
this stuff is very much CPUCP.
01:58:06.201 --> 01:58:10.433
Anyway, we will have some
public hearings accessible to all.
01:58:11.570 --> 01:58:16.570
They are strictly online
strained on Admin Monitor.
01:58:17.520 --> 01:58:22.520
The first day is Tuesday, June
30th, at 2:00 pm and 6:00 pm.
01:58:23.370 --> 01:58:28.323
The second day is Wednesday,
July 1st, 2:00 pm and 6:00 pm.
01:58:29.290 --> 01:58:31.430
And folks can visit
01:58:31.430 --> 01:58:36.220
cpuc.ca.gov/pph for more details
01:58:36.220 --> 01:58:37.870
on how to participate.
01:58:37.870 --> 01:58:41.220
And Southern California
Edison is advertising PPHs
01:58:41.220 --> 01:58:44.000
in their billing service
and on their website
01:58:44.870 --> 01:58:49.160
and summarizing what
their proposal means,
01:58:49.160 --> 01:58:53.640
what it will do, what kind
of impact their proposal
01:58:53.640 --> 01:58:57.878
may have on customer bills and rates.
01:58:57.878 --> 01:59:01.710
Then also coming up there
is an initial condition IEPR,
01:59:03.590 --> 01:59:06.163
I-E-P-R workshop.
01:59:07.564 --> 01:59:10.040
Let's see, that stands for,
01:59:10.040 --> 01:59:14.040
I should ask Commissioner
Randolph, Integrated--
01:59:14.040 --> 01:59:18.320
Integrated
Energy Policy Report.
01:59:18.320 --> 01:59:20.850
Oh, there we, I
should know this.
01:59:20.850 --> 01:59:25.850
Anyway, there's a two day online
energy Commission workshop
01:59:26.970 --> 01:59:28.544
on Microgrid.
01:59:28.544 --> 01:59:31.767
What are the chapters or the information
01:59:31.767 --> 01:59:33.020
will be on Microgrid.
01:59:33.020 --> 01:59:34.380
And I'll be participating in that
01:59:34.380 --> 01:59:36.180
along with President Batjer,
01:59:36.180 --> 01:59:38.370
the Energy Division
staff and our colleagues
01:59:38.370 --> 01:59:42.000
from the CAISO, it's July 7 and 9.
01:59:42.000 --> 01:59:44.450
And the purpose of the
workshop is to inform
01:59:44.450 --> 01:59:47.320
the Energy Commission
2020, IEPR for updates,
01:59:47.320 --> 01:59:50.680
which will put forth
recommendations help guys
01:59:50.680 --> 01:59:52.422
on microgrid deployment on
01:59:52.422 --> 01:59:56.411
for supporting a clean and
affordable energy future.
01:59:56.411 --> 01:59:58.940
The workshop will
focus on assessing one,
01:59:58.940 --> 02:00:02.460
microgrid is working for California,
02:00:02.460 --> 02:00:06.480
two, microgrid for resiliency
and micro grid economics.
02:00:06.480 --> 02:00:09.084
And three, residential microgrid
02:00:09.084 --> 02:00:11.831
and emerging microgrid technology.
02:00:11.831 --> 02:00:14.750
For the cases the
supervisor of the microgrids
02:00:14.750 --> 02:00:17.580
and resiliency team and energy division
02:00:17.580 --> 02:00:20.760
will be doing a
presentation on the status
02:00:20.760 --> 02:00:23.610
or microgrid and resiliency rulemaking,
02:00:23.610 --> 02:00:27.920
and our upcoming
milestones in a track to,
02:00:27.920 --> 02:00:32.920
and of course our commitments to look at
02:00:33.099 --> 02:00:36.878
what we can do about diesel for 2021.
02:00:36.878 --> 02:00:39.360
Then meaning we'll be
publicly noticed to allow
02:00:39.360 --> 02:00:41.410
for other Commission
and staff residents.
02:00:42.634 --> 02:00:46.524
And then yesterday I
was able to participate
02:00:46.524 --> 02:00:47.357
or be an observer
02:00:47.357 --> 02:00:52.357
on PG&E's Jose power shut
off PSPS tabletop exercises.
02:00:54.240 --> 02:00:59.240
This was a tabletop exercise that wasn't
02:00:59.970 --> 02:01:04.970
an actual PSPS event
but anticipating such events
02:01:05.180 --> 02:01:10.080
will be occurring and
how all the various parts
02:01:10.080 --> 02:01:14.440
of the PG&E organization worked together
02:01:14.440 --> 02:01:19.440
on following our rules
and how are you supposed
02:01:21.010 --> 02:01:24.597
to occur and having coordination.
02:01:28.267 --> 02:01:31.490
The exercises continue
today and tomorrow,
02:01:31.490 --> 02:01:34.220
it was very interesting and informative
02:01:34.220 --> 02:01:37.053
on what can you expect
in a real PSPS event.
02:01:37.053 --> 02:01:40.523
So then you might
imagine on the first day,
02:01:40.523 --> 02:01:45.400
they were technical
hiccups, WebEx, and so forth.
02:01:45.400 --> 02:01:49.207
And I'm sure that
the team will be doing,
02:01:49.207 --> 02:01:52.253
lessons learned and what
can you then fill those out?
02:01:53.270 --> 02:01:57.090
Well, I know we all prefer not
to see PSPS event this year
02:01:57.090 --> 02:02:00.296
It's good if the utilities
are looking ahead,
02:02:00.296 --> 02:02:05.296
and PG&E provided for are
going to observe the effort.
02:02:07.206 --> 02:02:12.036
And then finally, I want
to introduce Mandy Blue.
02:02:12.036 --> 02:02:17.003
And she's an intern in
my office this summer.
02:02:18.530 --> 02:02:23.220
She's working on a third year JV
02:02:23.220 --> 02:02:27.020
and at the same time
a Masters in Science
02:02:27.020 --> 02:02:29.908
at Stanford University at the law school
02:02:29.908 --> 02:02:33.090
and at the Master's program
02:02:33.090 --> 02:02:35.520
in Environment and Resources,
02:02:35.520 --> 02:02:39.100
and she's involved in the
Environmental Law Society.
02:02:39.100 --> 02:02:43.435
She's also an Editor on
the international Law Journal.
02:02:43.435 --> 02:02:46.250
She shares that she lived in Connecticut
02:02:46.250 --> 02:02:49.080
when she's younger but she
considered Novato, California,
02:02:49.080 --> 02:02:50.868
her home town.
02:02:50.868 --> 02:02:54.126
Mandy did her undergrad
degree at UC Berkeley,
02:02:54.126 --> 02:02:59.126
and she majored in Political
economy and Cognitive Science.
02:02:59.143 --> 02:03:00.110
(mumbles)
02:03:00.110 --> 02:03:02.422
I'll say go there for her.
02:03:02.422 --> 02:03:04.380
Between undergrad and grad school,
02:03:04.380 --> 02:03:07.370
she worked for two years
at a legal tech company
02:03:07.370 --> 02:03:08.970
based in East Bay.
02:03:08.970 --> 02:03:11.020
And starting grad school,
02:03:11.020 --> 02:03:13.896
she also interned at a civil society,
02:03:13.896 --> 02:03:16.580
nonprofit in Cambodia,
02:03:16.580 --> 02:03:19.030
a climate rights litigation
nonprofit in Oregon,
02:03:19.030 --> 02:03:22.610
and a San Francisco law
firm focused on land use,
02:03:22.610 --> 02:03:24.302
energy, and useful law.
02:03:24.302 --> 02:03:28.800
Her hobbies are cycling
visually and playing board games.
02:03:28.800 --> 02:03:31.388
We welcome Molly to Shiroma office.
02:03:31.388 --> 02:03:34.569
Thank you, President Batjer.
02:03:34.569 --> 02:03:36.260
Thank you,
Commissioner Shiroma.
02:03:36.260 --> 02:03:39.440
But what an impressive
credentials your interns
02:03:41.150 --> 02:03:43.112
have (indistinct) incredible.
02:03:43.112 --> 02:03:46.810
Commissioner Rechtschaffen,
would you like to speak?
02:03:46.810 --> 02:03:49.660
I was just gonna say
we've got to stop hiring
02:03:49.660 --> 02:03:51.432
these underachievers.
02:03:51.432 --> 02:03:53.680
(laughs)
02:03:53.680 --> 02:03:54.703
Unbelievable.
02:03:55.595 --> 02:03:58.720
I wanna give another plug
02:03:58.720 --> 02:04:02.258
for the policy and governance committee
02:04:02.258 --> 02:04:06.186
we're gonna have next
Wednesday July 1st at 10 o'clock,
02:04:06.186 --> 02:04:07.740
we're gonna be discussing
02:04:07.740 --> 02:04:10.970
the PAC's draft enforcement policy.
02:04:10.970 --> 02:04:13.580
I mentioned this at the last meeting
02:04:13.580 --> 02:04:16.703
it's posted on our web page,
02:04:17.585 --> 02:04:20.730
the policy and governance webpage,
02:04:20.730 --> 02:04:25.470
where you can find the
policy as well as information
02:04:25.470 --> 02:04:28.380
about how to participate
in the proceeding.
02:04:28.380 --> 02:04:33.380
We hope to see a broad
group of people participating.
02:04:33.570 --> 02:04:36.020
I wanna mention this one other thing,
02:04:36.020 --> 02:04:39.410
report about the series
of three workshops
02:04:39.410 --> 02:04:43.810
that the CEC and PUC
jointly me held over
02:04:43.810 --> 02:04:48.250
the past couple of days
on Vehicle Grid Integration,
02:04:48.250 --> 02:04:52.830
which I call hosted with
Commissioner Monahan of the CEC.
02:04:52.830 --> 02:04:55.220
Vehicle Grid Integration
is a broad term,
02:04:55.220 --> 02:04:56.650
people may have heard the buzz.
02:04:56.650 --> 02:04:59.550
It means a lot of different
things to different people,
02:04:59.550 --> 02:05:01.420
but it's very promising.
02:05:01.420 --> 02:05:04.680
And the thought of it just means actions
02:05:04.680 --> 02:05:09.680
that consumers can take
to shape charging behavior
02:05:10.740 --> 02:05:13.460
in a way that maximizes the benefits
02:05:13.460 --> 02:05:16.767
to the grid as well as to them.
02:05:16.767 --> 02:05:19.200
And that could be
changing when you charge,
02:05:19.200 --> 02:05:21.943
where you charge, how you charge
02:05:21.943 --> 02:05:24.140
in a more sophisticated approach.
02:05:24.140 --> 02:05:28.370
This include sending
power back from a car battery
02:05:28.370 --> 02:05:33.370
to a house, to a micro grid,
building to balance the grid,
02:05:35.100 --> 02:05:39.472
to provide regulation or
other services to the grid.
02:05:39.472 --> 02:05:41.180
And there are lots of benefits.
02:05:41.180 --> 02:05:45.287
This has the potential to
be one of the game changers
02:05:45.287 --> 02:05:46.923
that we've been looking for.
02:05:48.140 --> 02:05:51.965
It can mean a way to use
up our surplus solar energy,
02:05:51.965 --> 02:05:54.120
during the middle of the day,
02:05:54.120 --> 02:05:57.100
it could avoid distribution upgrades.
02:05:57.100 --> 02:06:01.939
It reduce cost to the owners
and provide backup power,
02:06:01.939 --> 02:06:04.183
even a shut offs.
02:06:04.183 --> 02:06:06.563
So there's lots of possibilities.
02:06:07.450 --> 02:06:08.770
It was very interesting to hear
02:06:08.770 --> 02:06:11.840
of all the potential future applications
02:06:11.840 --> 02:06:16.197
and to see how many benefit
boxes that can check off.
02:06:16.197 --> 02:06:19.610
I'm gonna be following up
in our own transportation,
02:06:19.610 --> 02:06:21.116
electrification proceeding,
02:06:21.116 --> 02:06:23.793
where we have a working group that
02:06:23.793 --> 02:06:26.740
we've convened that
has lots of stakeholders
02:06:26.740 --> 02:06:31.410
and then recommendations
for what policy and program
02:06:31.410 --> 02:06:33.590
that we should take in the near future.
02:06:33.590 --> 02:06:36.750
But it's a much broader
discussion will take years
02:06:36.750 --> 02:06:38.320
to fully implement.
02:06:38.320 --> 02:06:39.880
Carrie Sisto in the Energy Division,
02:06:39.880 --> 02:06:42.140
did a great job from
the PUC's perspective
02:06:42.140 --> 02:06:46.713
and staffing and helping to
organize a series of panel.
02:06:47.860 --> 02:06:48.693
Thanks.
02:06:49.610 --> 02:06:53.950
Thank you. I hope I can
join in the next workshop.
02:06:53.950 --> 02:06:56.430
But thank you very
much for that presentation.
02:06:56.430 --> 02:06:58.800
Very quickly, I have a couple of items
02:06:58.800 --> 02:07:00.070
that I'd like to report on.
02:07:00.070 --> 02:07:02.270
Yesterday, I had the
opportunity to speak
02:07:02.270 --> 02:07:05.050
with the Northern
California Power Association
02:07:05.050 --> 02:07:09.333
and CPA attendees included
NCPA Commissioners,
02:07:09.333 --> 02:07:12.280
who by the way, are elected
officials and representatives
02:07:12.280 --> 02:07:15.037
from member cities and systems.
02:07:15.037 --> 02:07:17.620
Member utility leaders, and staff,
02:07:17.620 --> 02:07:20.517
and the NCTA leadership and staff.
02:07:20.517 --> 02:07:22.945
Their facilities as well
as those of several
02:07:22.945 --> 02:07:24.860
of their members are located
02:07:24.860 --> 02:07:28.540
in the very higher threat areas.
02:07:28.540 --> 02:07:30.690
The occasion providing an opportunity
02:07:30.690 --> 02:07:35.120
to exchange information on
the public safety power shut off.
02:07:35.120 --> 02:07:40.063
PSPS guidelines and learn
about each of the members
02:07:40.063 --> 02:07:43.713
of a CPA team, NCPA, excuse me.
02:07:45.230 --> 02:07:50.013
Experiences of last year with the PSPS,
02:07:50.970 --> 02:07:52.630
I look forward to continuing
02:07:52.630 --> 02:07:56.973
to share ongoing sharing
information with them.
02:08:00.170 --> 02:08:02.350
As Commissioner
Shiroma already mentioned,
02:08:02.350 --> 02:08:05.840
I also joined rather briefly
for about 45 minutes,
02:08:05.840 --> 02:08:08.360
the PG&E tabletop exercise.
02:08:08.360 --> 02:08:13.360
I'm very pleased that we
have staff members continuing
02:08:13.750 --> 02:08:16.490
to work with or continuing to join
02:08:16.490 --> 02:08:21.490
the tabletop exercise
today and also tomorrow.
02:08:21.720 --> 02:08:24.620
So I like Commissioner Shiroma believe
02:08:24.620 --> 02:08:26.690
that there's a work to be done,
02:08:26.690 --> 02:08:29.300
lessons learned and
some of the activities,
02:08:29.300 --> 02:08:31.490
but that's what a
tabletop exercises for.
02:08:31.490 --> 02:08:34.547
So hopefully it's going well today.
02:08:34.547 --> 02:08:37.580
I wanna take a brief
moment to provide an update
02:08:37.580 --> 02:08:40.700
on the budget impact on state employees.
02:08:40.700 --> 02:08:41.970
As many of you know,
02:08:41.970 --> 02:08:44.630
COVID-19 has had a
devastating economic impact
02:08:44.630 --> 02:08:46.550
on the State's budget.
02:08:46.550 --> 02:08:49.420
In the May revise, the
Department of Finance projected
02:08:49.420 --> 02:08:52.896
a deficit of more than $50 billion
02:08:52.896 --> 02:08:55.167
as such all state
agencies and departments
02:08:55.167 --> 02:08:57.210
were asked to take
immediate action actions
02:08:57.210 --> 02:09:01.213
to reduce expenditures and
identify operational savings.
02:09:02.100 --> 02:09:03.426
Also at that time,
02:09:03.426 --> 02:09:06.410
the Governor announced
his intentions to negotiate
02:09:06.410 --> 02:09:07.690
a reduction of pay with
02:09:07.690 --> 02:09:10.100
the States collective bargaining units.
02:09:10.100 --> 02:09:15.100
Recently, the Service Employees
International Union SEIU
02:09:15.372 --> 02:09:19.175
and the Public Engineers in
California Government PECG,
02:09:19.175 --> 02:09:22.500
sent side letter
agreements that attached
02:09:22.500 --> 02:09:24.231
to their existing MOUs.
02:09:24.231 --> 02:09:26.900
Some of the features in
the side letter agreements
02:09:26.900 --> 02:09:31.900
include the following
9.23% reduction in pay.
02:09:32.060 --> 02:09:33.930
Employees will occur...
02:09:35.010 --> 02:09:40.010
Excuse me, 16 hours of
personal leave PLP per month,
02:09:40.230 --> 02:09:43.370
which has to be used
before all other leave,
02:09:43.370 --> 02:09:46.533
except sick leave or
professional development days.
02:09:47.560 --> 02:09:48.450
That's very similar to what
02:09:48.450 --> 02:09:50.510
we did during the great recession.
02:09:50.510 --> 02:09:53.490
There's no expiration date and the PLPs
02:09:53.490 --> 02:09:56.595
can be cashed out
separation from state service.
02:09:56.595 --> 02:10:01.100
There's flexibility for when
to use the 16 hours leave,
02:10:01.100 --> 02:10:02.318
but preferably it is used
02:10:02.318 --> 02:10:05.290
within the pay period it was earned.
02:10:05.290 --> 02:10:08.940
The reduction in pay will
not impact salary calculations
02:10:08.940 --> 02:10:12.520
for retirement, and there will be no
02:10:12.520 --> 02:10:14.550
further furloughs during the time
02:10:14.550 --> 02:10:16.133
of the side letter agreements.
02:10:17.420 --> 02:10:20.571
SEIU's side letter
agreement would be in effect
02:10:20.571 --> 02:10:22.238
until June 30, 2023.
02:10:23.690 --> 02:10:27.864
And PECGs would be an
effect until June 30, 2022.
02:10:27.864 --> 02:10:31.130
Both agreements would be
things open to negotiations
02:10:31.130 --> 02:10:33.780
if the budget improves
for the determination
02:10:33.780 --> 02:10:34.920
of the Department of Finance.
02:10:34.920 --> 02:10:37.920
So the side letters must
be ratified to take it back.
02:10:37.920 --> 02:10:41.580
The California attorneys,
Administrative Law Judges,
02:10:41.580 --> 02:10:44.210
and hearing officers in state employment
02:10:44.210 --> 02:10:46.546
that are now in this
case is still negotiating
02:10:46.546 --> 02:10:48.860
with the Governor's office.
02:10:48.860 --> 02:10:51.800
We will provide more
information as soon as
02:10:51.800 --> 02:10:55.023
we have that and I'll
keep you all well-informed.
02:10:58.304 --> 02:10:59.328
Thank you.
02:10:59.328 --> 02:11:02.593
Are there any other comments
from the Commissioners?
02:11:05.560 --> 02:11:08.020
Okay, seeing none.
02:11:08.020 --> 02:11:10.340
That finishes the Commissioners reports,
02:11:10.340 --> 02:11:12.690
this public meeting is now adjured.
02:11:12.690 --> 02:11:15.350
I ask you to log off your computer,
02:11:15.350 --> 02:11:16.660
file into the WebEx event
02:11:16.660 --> 02:11:19.260
for the closed session on legal matters.
02:11:19.260 --> 02:11:24.003
And that will occur in
approximately 30 minutes at 12:45.
02:11:25.424 --> 02:11:27.897
Thank you all.
02:11:27.897 --> 02:11:29.564
Thank you.
02:11:31.185 --> 02:11:32.300
Thank you.
02:11:32.300 --> 02:11:33.543
And this
concludes today's conference,
02:11:33.543 --> 02:11:35.062
thank you for participating.
02:11:35.062 --> 02:11:36.723
You may disconnect at this time.