To address the potential loss of natural gas service
for a portion of the Santa Nella community. Hearings
scheduled to start at 6pm. On this day, Wednesday, February
15, 2023. The assigned Administrative Law Judge will
convene the meeting shortly. If you wish to make a
comment during the public comment period, please press
*1, unmute your phone, and record your name and
location clearly when prompted. You will be placed
into a queue in the order that you've identified yourself.
When it comes time for you to speak, I will announce
your name and open your line. The judge will be providing
a time limit depending on the number of callers. To
withdraw your request, please press *2. Again,
the conference will begin shortly. Thank you for standing
by.
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Welcome to the Public Participation Hearing, where we
will take public comments on the investigation. To address
the potential loss of natural gas service. For a portion,
of portion of Santa Nella community on this day, Wednesday,
February 15, 2023. Judge Stevens, you may begin.
Thank you Operator. Can the Court Reporters please
confirm they are ready to begin. Ready to begin, thank
you.
Great, good evening. We will now be on the record. The
Commission will come to order. It is now February 15,
2023, at 6pm. This is the Remote Public Participation
Hearing for the investigation. To address the potential
loss of natural gas service. For portion of the Santa Nella
community. The docket number is I2209011. Please note,
that the audio and visual feed of the public hearing
is being recorded and accessible on the CPUC's website.
If you do not wish to be recorded, please disconnect
now. My name is Brian Stevens and I'm the assigned
Administrative Law Judge on this proceeding. I am here
with Ms. Sotero, the Advisor to the assigned Commissioner
John Reynolds. At this time, I would like to ask Ms. Sotero,
if she has any remarks that she would like to make.
Thank you Judge Stevens. Hi everyone, I am Maria Sotero
and I am an Energy Advisor to Commissioner John Reynolds.
He was at today's 2pm hearing for this case, but
could not be here this evening. So he asked me to deliver
his remarks for him. Also, like many of us, I have a kid
in the house. So hopefully we hear no comments from
her. Um, anyways here are Commissioner Reynolds remarks.
Welcome everyone. I would like to share some of what
I learned last week in Santa Nella. Where we had a community
meeting and first got to hear directly from Santa Nella
residents. I will be brief since our purpose today
is to listen, but some very important issues were identified
at that meeting. And I want to highlight them for the
record here. It was clear to me and to our Staff, that
Santa Nella residents are close knit, active and very
involved with issues affecting the community. We heard
a lot of very good questions and attendees spoke about
some of the most important issues related to this case.
This proceeding is about deciding what energy options
should be selected for the future. And you all ask
the most relevant questions. How will each option affect
our bills? Which will be the most reliable? Who will
ensure our service won't be affected, while the selected
option is being built? Are you really going to replace
our appliances for free? Why are you encouraging electrification,
while at the same time telling us via flex alerts to
use less electricity? How are you really considering
our input? And at the end of the day whose choice is
this really, who decides?
We did our best to answer all these questions and more.
I will note that for one of the most important ones,
The ones about how each option will affect your overall
energy costs. We do not yet have the best data to answer
that is because we do not have individual, household
level, historical data about residents, natural gas
usage. Getting better data on this to better inform
a transition is one of my priorities as we move forward.
And I can answer one question again now. We absolutely
are listening to your input and it matters. And I want
to emphasize that whichever option is chosen, it will
come at no cost to residents. It was clear as well
that each option whether preserving gas service, upgrading
both gas and electric service or fully electrifying
had support. There were some folks who did not want
to lose their gas stove. And there were others who really
liked the idea of getting needed wiring improvements,
a new, all electric-efficient appliances.
So my Staff and I will be listening closely to your
input today and all of your questions you want us to
address. I am very interested to hear particularly
about why you prefer a specific option. Or what your
main concern is. Is it mainly cost, safety, reliability
something else? Are there other ideas that might change
your preferences such as a discount on your bill or
other bill protection?
Finally, I would like to briefly share an update about
a very informative site visit I attended. Along with
other Commission and PG&E Staff. The day of the
community meeting, we were able to walk around your
neighborhood. And see several electric commuter banks,
a gas main and meter, and other parts of the energy
infrastructure. We were also welcomed by a great number
of your dogs. One of which accompanied us for almost
the entire visit. PG&E
Staff who work on our other existing programs. The
Mobile Home Park Conversion Program and the San Joaquin
Valley Affordable Energy Pilot Program. Pointed out
a lot of small and large issues. That are different
from the modern standard, and that speak to the need
for upgrades. While no decision has been made, a few
things are clear. Through no fault of its own and as
a result of a long history of under investment. The
Santa Nella community is in need of improved energy
access service and reliability. Regardless of the options
that we choose, I am confident it will meet those needs.
Thank you. And I look forward to hearing more from
you today. Thank you Judge Stevens, that concludes
my remarks on behalf of the Commissioner. Great, thank
you Ms. Sotero for the, for those remarks on behalf of Commissioner
John Reynolds.
The purpose of today's hearing is for the California
Public Utilities Commission or CPUC. To hear from the
public about the issues that are addressed in the Santa Nella
gas service investigation. The CPUC is the state agency
that has regulatory authority over PG&E. The current
provider of gas service to the master meter. That serves
the impact of community in Santa Nella. The CPUC has
five commissioners, who are appointed by the Governor
confirmed by the California State Senate. The Commissioners
are the ones who will determine on the outcome of this
investigation. As the ALJ on this proceeding. My role
is to evaluate the evidence in this proceeding and
to write a proposed decision based on that evidence.
The Commissioners can vote to adopt my proposed decision
or they can vote to adopt their own alternate decision.
If you want to participate today and provide public
comment to this investigation. You'll need to call
1-800-857-1917 for English. Enter passcode 1767567#
and press *1 on your phone. For Spanish, enter
passcode 3799627, and press *1 on your phone.
Before I alert the operator, we'll begin to queue the public
speakers. Please unmute your phone and provide your
name. If you're a public official, please notify the
operator of your title and position, in addition to
your name.
You can also find this information on the screen. The
line is only for providing the Commission with comments
on this investigation. We have separate phone lines
for customers to ask questions about the investigation
for their bill. If you have any questions regarding
the investigation. PG&E is available during this Public Participation
Hearing to answer your questions at this line 1-805-595-6400.
And I'll remind you that the current gas provider to
this community is SNME. So PG&E may not be
able to answer specific questions about your gas bill.
Um, they may be able to answer questions about your
electric bill. Um and questions about how this investigation
will interact with your energy service going forward.
If you cannot call in today, you may also submit written
comments by visiting the link you see on the screen.
make sure you click on public, on the public comment
tab at apps.cpuc.ca.gov/
c /i2209011. As of today, we
have received one written public comment.
We will begin with a brief summary of the investigation.
Santa Nella is an unincorporated community of 1,981
people. Located on the Western edge of Merced County.
within PG&E service territories. The community's
electricity is provided directly by the PG&E. SMNE
is a private corporation that owns the underground
gas pipeline. And customer meters that serve sub meter
gas to all 280 watts in the affected subdivision. On
which 270 manufactured homes are located. In addition,
to 10 vacant lots. Currently 47 of the manufactured
homes belong to a mobile home park. While the remaining
233 parcels are individually owned. SMNE received
gas from a PG&E master meter. Located in the center
of the subdivision, in the area that is not part of
the officially registered mobile home park lot.
SMNE believes that most community members typically
use gas as opposed to electricity for cooking, water
heating, space heating and clothes drying. On May 19,
2022 SMNE incorporated. Which provides the sub metered
natural gas service. Informed the CPUC, and PG&E that
SMNE will need to transition operations to another
gas system operator. The CPUC opened this proceeding
to explore safe and reliable energy options for Santa Nella
residents.
Who may lose gas service necessary for heating and
cooking. Santa Nella falls within census tract 604700
2100 and is designated as a disadvantaged community.
In the 85th percentile under cal virus screen 4.0.
Uh more than half of all homes in the subdivision
currently participate in either the California Alternative
Rates for Energy or Family Electric Rate Assistance
Programs. So more may qualify who are not aware of their
eligibility. So at this point in time, I will turn it
over to PG&E to make a brief presentation. Um, if you
could please bring PG&E to the front view. Um, and
a quick friendly reminder for the PG&E presenters. To
try to speak slowly, so the court reporters and translators
are, are able to fully digest, um what you're saying.
So um, once PG&E is ready, go ahead.
Thank you Judge Stevens. Good evening everybody. My
name is Felix Chan, Program Manager with Special Projects
and Programs team at PacificGas and Electric. I want
to thank the Commission and residents of Santa Nella
for this opportunity to present these options. It's
an honor to collaborate with the Commission on this
subject. PG&E's presentation today is a high level
review of the three options. That we presented in our
opening brief. Additional data, potential constraints,
assumptions and insights can be found um, in our filings.
I'll take care of the first two options tonight and
then go ahead and give it over to my colleague for
options three. Next slide please.
So Option No. 1 um, named Gas Service Upgrade and
Transfer. This option is essentially installing a new
gas distribution system to serve the community. This
slide details the five main portions of that installation.
Starting with point number one, install new main gas
pipelines. Generally PG&E will come in and excavate
in the middle of the subdivision road. We will lay
gas pipeline in the ground. Point No. 2 states install
new gas distribution lines to the home. From the middle
of the road again we will excavate into the ground.
To make a room so we can install gas service lines.
From the middle of the road, uh to the home itself.
It's important to note that these first two points,
that the lines we'll be installing to the ground. Will
only be seen during construction. Um, when we're done
construction, this will not be visible to the naked
eye or to the residents. Moving on to point number three.
Um, PG&E will install new gas meters at the home.
So this will be the visible portion. When construction
is done, you the resident will have a PG&E gas meter
adjacent to your home. Point No. 4 install new gas
plumbing from new meter to exterior of home under skirting
of home. So when were once we've installed the PG&E
gas meter, uh we need to connect to your, the gas meter.
To a point just outside your home and that'll be done
through gas plumbing under, under your home. And then moving
on to the final point number five. Cut over from SMNE
any service to PG&E. We want to ensure a smooth transition
between the existing system and the new system. That
will be installing. This will generally take a day and
PG&E crews and contractors will ensure that we safely
transition you over to the new PG&E gas system.
Moving on to Option No. 2. This option is labeled
gas service upgrade and transfer, and transfer and electric
service upgrade. This option is very similar to Option
No. 1 and actually builds on it. The difference
is that we're adding an electric system upgrade. Again,
going over the first point. Install new main gas pipeline,
new electric transformers and underground electric
lines. And the second point, install new gas and electric
lines from the main line to the home. Just like the
first option, we will excavate in the middle of the
road this time. Uh, we not only have a gas one but
a few feet away right beside it. We have electric conduit
and cable which will lay into the ground. And then point
number, Point No. 2, as I previously stated. Option
will excavate from the middle of the road itself, um
up to your home. And um, that will involve laying gas
pipes, and electric conduit, and cable right beside each
other. Again, important to note that these will not
be visible to the public after construction. Uh, once
construction is complete, um, you will not be able
to see any of this. Moving on to Point No. 3.
Um, install new gas and electric meter at the home.
So this will be the visible portion of our construction.
After construction is done adjacent to your home. You'll
be able to see a PG&E gas meter and then right beside
it a few feet away, you'll be able to see PG&E
electric meter.
Point No. 4, install new gas plumbing and new
electrical wiring. To exterior junction from new meters
to exterior of home. On the gas side, there needs to
be a way to connect our PG&E gas meter to an external point,
before it enters your home. So we'll be installing
gas plumbing and then on the electric side we'll need
to connect the PG&E electric meter, uh to a junction
box just, just outside your home.
And then finally, Point Nos. 5 and 6. Cut over
of gas service from SMNE service to PG&E. And then cut
over of electric service from existing service lines
to new underground service lines. And again, we want
to make sure there's a smooth transition between the
existing system that you have now, and then the new
PG&E system that we'll be installing. And our PG&E crews and
contract individuals. Will do everything we can to ensure
an outage is not long and, um and ensure that it's smooth.
So this sums up Option Nos. 1 and 2. And I'll
hand it over to my colleague Lynn Spencer, who will overview
Option No. 3.
Thank you Felix. Next slide please. This slide is going
to cover the electric service upgrades. As well as full
electrification to your home. Uh, as Felix was referring
to. We will do a complete replacement of electric infrastructure
as explained by Felix. Taking all of the current overhead
distribution and moving all the electrical infrastructure
underground. In addition, we will be replacing and removing
gas appliances or non-energy efficient-electric appliances
with new energy-efficient appliances. This to the point
that the new appliances will be installed in placement
of your existing gas appliances. Home repairs as needed
will be done as support of the full electrification
support. We will be doing home repairs that support
the new appliances. This also includes electric panel
and rewiring upgrades needed. To specifically support
the new appliances coming in. In addition, we'll be
adding some energy efficient measures, such as gap ceiling
lighting, etcetera. That we provide either through our
Energy Savings Assistance Program or we will do direct
through this electrification program installation.
The four appliances you can anticipate with full electrification
are shown here. The first being a heating and cooling
system, a hot water heater, a cooking range and a clothes
dryer. Next slide please.
Customers will be impacted in various ways with all three
options. Some of the advantages and benefits include
easier access to bill assistance programs, such as the
California Ultimate Rates for Energy otherwise known
as CURE. The Family Electric Rate Assistance, also
known as FERA and medical baseline programs, as well
as others offered through PG&E. You can also count on
increased safety and reliability through PG&E needs
regular and routine maintenance of these assets. You'll
also gain access to PG&E resources in the event of an
outrage of an outage, and improved customer service and
support. With PG&E taking over all of your existing
fuel services. You'll have access to our online tools.
Where customers can do energy usage history, pay your
bill and access energy savings tools, as also discussed
prior. Installations of safe and protected meter locations
as Felix described. We will be moving meters directly
to each premise. Timelines for all three options for
the first option of gas service upgrades and trans,
transfer. We're looking at one year and 10 months. Once
the decision has been issued. For the electric upgrades,
gas service upgrades, and transfer or the electric upgrade
with full electrification. We're looking at approximately
two years. All options will be at zero cost to you.
Next slide please.
Some things to expect. As Felix was talking about the
construction. So when construction services are going
on for the upgrades. You will notice heavy operations
equipment within your neighborhood. We'll have traffic
control present to direct traffic and ensure that you
residents have easy enter and exit access to your home
and safely. Heightened sound levels, dust
restrictions in movement during our working hours,
and open trenches. When we move on to the meter and
service installation. You'll start to see personnel
needing access around and under your home. For the electrification
offsets, electrification option installation will include
internal and external assessments of your home. Internal
and external home repairs, construction as needed. Again,
to support the appliances being provided. We will also
be removing and installing those new appliances and
removal of your gas appliances.
So in conclusion, PG&E appreciates the careful consideration
of multiple solutions. For the affected portion of the
Santa Nella community. It's important that PG&E reminds
the Commission. That once the solution is selected,
PG&E will still need guidance on issues raised related
to implementation and cost recovery. Some of those are
PG&E needing guidance on the obligation to serve
if electrification is no longer, if electrification
is a long term solution. PG&E has not conducted a
full assessment and confirmation of the state of the
homes. Therefore, our findings provide best estimates
of design, preliminary timeframes and costs. To electrify
the Santa Nella community and the most cost effective
manner possible. PG&E prefers to deactivate the
existing gas pipeline system entirely. When SMNE
ceases to provide service, rather than investing additional
capital into rebuilding the SMNE gas system on an interim
basis. While also funding the infrastructure for future
electrification. One additional issue that PG&E wants
to flag is cost. The cost for anything other than replacement
of gas infrastructure should be addressed through creative
solutions or Legislative solutions. That allow for cost
sharing and not rate, and non-rate funding. To avoid
undue affordability impacts on other non benefiting
customers. And for the record, I am Lynn Spencer. I
am a PG&E Program Manager for Pilots in the Income Qualified
and Disadvantaged Community Programs Department. Thank
you.
Great, thank you to the folks from PG&E. Um, so at
this point we are ready to hear from the public on
any opinions regarding this investigation. Ms. Sotero,
uh Advisor to Commissioner John Reynolds and I will
pay close attention to the opinions expressed during
today's public hearing. The court reporter will be
transcribing everything that is said today. They are
also on the line today. If you speak, I ask that you
speak slowly and clearly. So that the reporter can capture
everything you say. Before you begin, please spell your
first and last name and let us know which city you
are from, presumably Santa Nella. The written transcript
of today's hearing will be posted publicly on the docket
card of this proceeding. I want to remind the audience
that if you want to provide comment, we ask that you
call 1-800-857-1917. For English, enter passcode 1767567#,
and press *1 on your phone. For Spanish, enter
passcode 3799627# and press *1 on your phone.
Unmute your phone and record your name when prompted.
For Spanish commenters, please split your comment into
blocks. And only say a couple of sentences at a time.
This will allow the interpreter time to listen and
interpret your comments appropriately. Um, so at this
time I'll ask the operator if there are any callers
in the queue?
And the public comment telephone line is now open. Again,
if you would like to make a comment, please unmute your
phone, press *1 and record your first and last
name fully and clearly when prompted. At this time, we have no callers
in queue, in either the English or the Spanish conference.
Okay, thank you operator. So at this time what we will
do is we will take a 10 minute recess. Um, we will
come back at 6:35 and we will check the line one
more time before adjourning today. So at this time
we are off the record.
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To give time for any public speakers to call in and
elect to speak this evening at the Public Participation
Hearing. I want to remind the audience that if you
want to provide comment, we ask that you call 1-800-
857-1917. For English, enter passcode 1767567#, and press
*1 on your phone. For Spanish, enter passcode 3799627#
and press *1 on your phone. Unmute your
phone and record your name when prompted. For Spanish
commenters, please split your comment into blocks and
only say a couple of sentences at a time. To allow the
interpreter sufficient time to listen and interpret
your comment appropriately. At this time I'll ask
the operator if there are any callers in the queue?
Again, I'll ask the operator if there are any callers in the queue?
And again, the public comment telephone line is now
open. If you would like to make a comment, please
unmute your phone, press *1 and record your first
and last name slowly and clearly. And at this time
we have no callers on either the English or the Spanish
comment line.
Well, great thank you very much. Um, with that we have
no speakers on the line. Um, I want to thank everyone
who participated today. Um again I'll thank Advisor
Ms. Sotero from Commissioner Reynolds Office. For remarks
from Commissioner Reynolds. Um, before we conclude I
want to remind everyone that they are able to submit
written comments by visiting the link shown on the
screen. Click on the public comment tab at apps.
cpuc.ca.gov/ c
/i2209011. For assistance with providing
additional comments. You may also contact the Commission's
Public Advisor's Office at public.advisor@cpuc.
ca.gov. Thank you to the court reporters,
the folks from IT, uh the Public Advisor's Office,
um and the other individuals who helped put this Public
Participation Hearing together today. Um and thank
you to PG&E for providing the presentation at the
two meetings. This concludes today's Public Participation
Hearing. Thank you all for your participation. Off the
record. Thank you everyone.
Thank you.