Thank you for your patience.
(silence)
Welcome in to the California Public Utilities Commission
Voting Meeting. On this day Thursday, March 16, 2023.
Today's call is being recorded. If you have any objections,
you may disconnect at this time. President Reynolds,
you may begin.
Good morning, everyone. We need to start by establishing
a quorum. Agenda Clerk, could you please call the roll.
If you're on mute, uh could you uh, make sure you hit
your mute button. We can't hear you.
Commissioner Douglas? Here. Commissioner John Reynolds?
Here. Commissioner Shiroma?
Here. Commissioner Houck? Here. President Alice Reynolds? Here.
All right. We have 5 Commissioners present, so we
do have a quorum. Uh, welcome everyone to the California
Public Utilities Commission. I'm calling this meeting
of March 14th, 2023, Public Agenda No. 3524 to order.
I'm gonna start with a few housekeeping matters. Uh,
today we're meeting virtually, this meeting is also
being live streamed on the PUCs website. You can view
the meeting at www.adminmonitor.com/
ca/cpuc. Closed Captioning is available in
English and Spanish through the webcast. To view the
closed captioning, click on the green button beneath
the webcast video player, and follow the instructions
that appear on screen. Spanish interpretation is also
available during the Public Comment portion of today's
meeting. For Spanish interpretation dial 800-857-1917,
passcode 3799627#, and follow the instructions to be
connected to the Spanish line. I ask that my colleagues
and today's speakers remain mindful and speak clearly
and slowly to allow for interpretation. Public engagement
is critical to the PUC process. At today's meeting,
the public will have the opportunity to make Public
Comment by telephone. If you wish to make a Public
Comment by telephone, please dial into 800-857-1917, and
enter passcode 9899501#, and press *1. You will
be placed into a queue, and the operator will take your
name and information. You will then be called upon
to speak when we get to the Public Comment period in
today's agenda. Please note that if there are a large
number of callers, the wait to speak may be long. If
you encounter difficulty calling into the public telephone
line, please email: votingmeetinghelp@cpuc.
ca.gov. For those who are not able to provide
oral public comments at today's public voting meeting
or otherwise wish to provide more lengthy comments.
I want to remind you of the option to submit written
comments. Written comments can be sent to us in 2
ways. One via an online form found on each proceedings
online docket card or two directly to our Public Advisor's
Office at public.advisor@cpuc.
ca.gov. More information about providing comments
can be found on our website or you can email the Public
Adviser's Office. And again that email is public.
advisor@cpuc.ca.gov or
you may call 1-866-849-8390.
Okay, so. I wanted to wish everyone a good morning and
welcome to today's meeting. Um and I wanted to start
by recognizing an important date at the end of this
month. March 31 is Cesar Chavez Day. A time to honor
the history and legacy of Cesar Chavez, civil rights
and labor leader. Early in his life, Mr. Chavez saw
the injustices brought upon the working poor. And dedicated
his life to the health and safety of workers, better
wages and improved living conditions. He drew attention
to the plight of America's migrant farm laborers. Through
peaceful protests, marches, boycotts and hunger strikes.
At the peak of the Delano Grape Strike. He helped organize
17 million Americans who stopped buying grapes in solidarity
with the workers. March is also Women's History Month.
Which is the celebration of women's contributions to
history, culture and society. So as we honor the incredible
life and legacy of Cesar Chavez. I also want to recognize
the equally inspiring life of Dolores Huerta. Who co-founded
the National Farm Workers Association with Mr. Chavez,
in 1962. Dolores Huerta created the rallying cry "Sí, Se Puede." Which
was, which would later inspire the presidential campaign
of Barack Obama. And she was one of the lead negotiators
in the grape workers labor contract that resulted from
the Delano strike. The joint efforts of Dolores Huerta
and Cesar Chavez were instrumental in the passage of
the 1975 California Agricultural Labor Relations Act.
Which was the first law in the Nation to provide labor
protections to agricultural workers. We are also fortunate
to have a Commissioner, Commissioner Shiroma. Who is
both an inspirational woman leader here at the Commission
and dedicated many years of her life serving California
as a member of the California Agricultural Labor Relations
Board.
Um so thank you a special, thank you to Commissioner
Shiroma for her past work. Um so this month, uh we are
celebrating both Dolores Huerta and Cesar Chavez's legendary
impact on the social justice movement. And we acknowledge
the work that still needs to be done to build a happier
and better future for all of our communities. Working
together, we can bring this future to there.
Thank you all and I will now turn to Public Comments.
If you wish to make a public comment by telephone and
you have already dialed into the public comment telephone
line. Please *1 and unmute your phone to
enter the public comment queue. PUC rules do not allow
for parties in proceedings to speak about open proceedings.
The public can make comments addressing items on their
consent and regular agenda. As well as items not on
the agenda. All speakers will have 1 minute to speak.
You will hear a bell sound when your time is up. Please
be mindful of other speakers in the queue and keep
to your allotted time. As a reminder, please speak clearly
and slowly to accommodate Spanish interpreters. With
that guidance in mind, I welcome today's speakers and
will ask the operator to open the public comment telephone
line. Operator. Thank you, the public comment telephone
line is now open. For those on the phone, if you wish
to speak during the public comment period. Please unmute
your phone, press *1 and record your first and
last name slowly and clearly when prompted. Our first
caller is Dennis Delfas, you may go ahead. Thank you.
Hello, my name is Dennis Delfas and I am a rooftop solar
system owner in Cypress, California. We are very proud
that we have already offset over 14 tons of carbon.
From the 20 megawatts of power we produced since our rooftop
solar system was turned on in September 2021. Unfortunately,
your NEM 3 decision violates the California mandate,
to keep rooftop solar growing. Your CPUC decision will
shrink rooftop solar. Every state and locality that
made similar changes saw rooftop solar adoptions
collapse by half or more. Sadly, we cannot personally
recommend rooftop solar to any family members, friends
or neighbors. Until you delay the implementation of
your NEM 3 decision. And resolve the issues that violate
California law raised in the appeal by the environmental
groups. Thank you.
Thank you. Operator, next caller please. Our next caller
is Steve Beck, you may go ahead. Hello there. Good
morning Commissioners. I would like to know what is
the reason for slashing the net metering by 75%. Is
the reason due to doing this to help the 3 California
utilities make more money. And at the same time hinder
the solar workers and the climate, hinder the climate
and the solar workers. Is that the reason why you did
that? Uh, less net metering means let's solar and more
burning of natural gas by the 3 utilities.
Why would the Commissioners want to burn more natural
gas for a power source?
If if, if you do, if you continue net metering 100%
repeal that last decision. Solar energy will increase
in usage.
So therefore, um uh
just just
thank you. Ok, thank you. Thank you. Next caller, please.
Our next caller is Audrey Inchoate, you may go ahead. Thank
you. Uh good morning Commissioners. My name is Audrey Inchoate.
I'm a resident of South Berkeley and also a member
of the East State Clean Power Alliance. As well as
the statewide California Alliance for Community Energy.
I wish to call your attention to two unassailable facts.
The first is the worsening weather events uh which
uh the last of which occurred on Tuesday. And PG&E
itself recognized how unusual the damage was. The
second fact, uh is the increasing cost of transmission.
Um this and it's clear, that this has become the sole
driver of rising utility bills. Uh, these facts point
to the urgent need, um for us to go smaller to go
local. Yeah, please don't disincentivize rooftop solar
and micro grids. Please reverse your NEM3 decision. Thank
you very much. Thank you. Operator, next caller please.
Our next caller is Anna Thompson, you may go ahead.
Yes. Thank you. Good morning Commissioners. I am a Cal-Am
ratepayer on the Monterey Peninsula. Please compel Cal-Am to sign the
water purchase agreement for the Pure Water Monterey Expansion.
Cal-Am has been stalling and blocking this urgently needed
water project for many years. The expansion could have
been delivering water by now. It will be providing
drought reserves and the additional water needed for
growth. All these unjustified delays have caused the
cost of building the facility to go up by millions
and millions of dollars. Any further delays may even
cause the loss of $42 million in grant funding available
to us now.
Cal-Am has no legitimate reason not to sign the water purchase
agreement. The CPUC needs to protect ratepayers and approve
the Monterey Peninsula Water Management District petition.
To compel Cal-Am to sign the water purchase agreement.
Bye. Thank you. Operator, next caller please.
Our next caller is Susanna Saunders.
You may go ahead. Good morning, good morning Commissioners. This
is Sue Saunders from San Anselmo, California and the
founder of Indivisible Ross Valley. NEM3 is an
incredible step backwards for the ability of EVs
to be 0 emission. In order for electric vehicles
to be 0 emission, they need to be powered with clean
energy that rooftop solar provides. This means level
2 chargers should be deployed where EV owners work.
Instead of having them charge at night, when fossil
fuels supply the grid during the day, there is an abundance
of sun but no business can afford to pay for the electricity
chargers will cost them without rooftop solar and battery
storage. Your NEM3 cuts incentives for businesses, schools
places of worship by 80%. They will not be able to
afford to provide the clean energy needed to make zero
emission. This decision will cause EVs to be charged
at night where people live. This is when energy is
cheaper for owners but not clean. Please delay this
decision until you resolve the issues raised in the
appeal by the environmental groups. Because it is so
damaging for our EV rollout.
Thank you. Operator, next caller please.
Our next caller is Tom Perez, you may go ahead. Good
morning Commissioners. My name is Tom Perez and I live
in San Diego. I'm speaking today imploring you to delay
the implementation of your NEM3 decision. Until you
resolve the issues raised in the appeal by the environmental
groups. Additionally, climate change is wreaking havoc
across all of California as I speak. Currently, there's
flooding in the farmlands that say and spent lives
organizing workers. In the Summer, there are deadly
wildfires, heat waves and rolling blackouts. Climate
change is an existential threat and crisis to everyone
in the state, the country and around the world. You
must act now to reduce the effects of carbon dioxide
emissions. Rooftop solar is the proven clean energy
solution to addressing this crisis. The collapse of
the climate is lost when rooftop solar jobs are lost
as well. There's no time to waste. Act now to resolve
the issues raised by the Center for Biological Diversity.
Protect our community's foundation and the environmental
working group. Thank you.
Thank you. Operator, next caller please.
My next caller is Kim McKeever, you may go ahead.
Yeah, I'm Kim from Rockland. Many aspects of the net
billing tariff decision were decided in a capricious
and arbitrary manner. No bigger example of that error
is in looking at its effect on non-residential ratepayers.
I'll quote the appeal. By failing to prioritize the
total resource cost. The Commission commits a legal
error by making drastic changes to the non-residential
NEM tariff. The record does not support any proposed
changes to the NEM2 tariff for commercial and industrial
customers. Much less the decision's direction to transition
those users to a new tariff without any glide path
at all.
The ACC and the E3 study do not address any
non-residential customers. Adoption of commercial rooftop solar
is far behind residential and should have been considered
separately. Today, the utilities are basically non responsive
to commercial NEM applications. Delays in response are
weeks long, instead of increasing resources to handle
the obvious increase in applications. The workload
has actually led many to quit their positions on application
teams. I encourage you to take this appeal seriously
and delay net billing implementation, until each item
is addressed.
Thank you. Operator, next caller please. Our next caller
is Rob Holly, you may go ahead. This is Rob Holly,
again from San Jose. I support the motion by the environmental
groups to rethink the NEM3 decision. As the motion
states the decision's deferral of numerous significant
considerations to other proceedings. Makes accurate
accounting of successor tariffs impossible. By rerouting
consideration of several critical aspects. The decision
obscures whether the successors tariff will meet the
legislature's requirements. Additional fixed charges
could similarly have a significant effect on system
economics by increasing participant costs. Thus, without
the deferred issues resolved, it's not possible to
show that the proposed tariff complies with the law.
Partialing out the decision making into multiple different
proceedings. Also hinders effective participation by
members of the public. Thank you. Thank you. Operator,
next caller please.
Our next caller is Patricia Blevins, you may go ahead. Good
morning. My name is Patricia Blevins and I live in
San Jose. I'm calling to ask the CPUC to delay implementation
of your NEM3.0 decision. Until you resolve the issues
in the appeal from the environmental groups. The
CPUC decision failed to include all the benefits of rooftop
solar. For example, the decision misrepresented the
facts that rooftop solar actually reduces the cost
and the need for long distance power lines. That can
trigger deadly wildfires. Power IOUs like the felon
PG&E. Have a self-interest in obscuring that fact.
And the CPUC's NEM3 .0 is complicit in helping them to do
so. Please reconsider and reverse this illegal decision.
Thank you. Thank you. Operator, next caller please.
And our next caller is Stephen Pope, you may go ahead.
Good morning and thank you for taking my call. In a
period of fluctuating energy costs and steadily increasing
utility dividend payments. Why are solar panel owners
being asked to subsidize the centralized distribution
network? That everyone agrees must be replaced with
more smaller local generation facilities. On a sunny
day here in Ojai, the excess energy I create is sold
to my neighbor. Not to someone in Humboldt County.
Meaning that we don't use the wide area power lines
at all. Sidenote, these wider area power lines are what
started the fires in Ojai several years ago. The state
of California has expressed goals pertaining to increased
renewable energy supplies. And yet the CPUC's NEM3 net
metering policy penalizes those of us, who have invested
in helping that happen. We need to return to the previous
net metering terms that enable the utilities to make
a fair profit. While encouraging more California homeowners
to install solar panels. Thank you. Thank you. Operator,
next caller please.
Our next caller is David Rynearson, you may go ahead.
(silence)
Good morning Commissioners. I'm David Rynearson from
Huntington Beach. Your recent NEM3 proposal
flies in the face of all logic and there's an opposition
to both state laws and mandates. Instead of supporting
the state mandate for clean energy growth. Your proposal
will cut rooftop solar installations in half. Further,
the dramatic cut to payments for energy sent to the
grid, sends new solar installations to include batteries
and to store their excess energy. The result is that
only those who can afford expensive batteries will
move forward with solar. And such installations will
pay nothing to the utilities. They will not share their
excess power with the grid. Exactly the opposite of
what's necessary leaving low-income constituents out
in the cold. It similarly damages schools, churches
and public facilities with no justification. Finally
it fails to acknowledge the full benefits of rooftop
solar. By ignoring the reduced demand for and load on
long distance power lines. I don't think it's a coincidence
that this oversight happens to coincide with the very
line item where electric utilities are guaranteed a
profit. Your NEM proposal is a slap in the face to the
public, and rewards the investor and utilities. Thank you.
Thank you. Operator, next caller please. Our next
caller is Dinette Abbott Wicker. You may go ahead.
Hi. Can you hear me? Yes, we can. Hi, my name is
Dinette. I live in Orange, California. I wanted to start
out with a few statistics. Global crop failures will
hit at 1.5 to 2 degrees Celsius increase in temperature.
Currently, we are at 1.3. Billions will die at 3
Celsius. Most humans will be dead at 4 Celsius.
Earth's uninhabitable at 6 Celsius. We're heading
for 1.5 Celsius by 2025, that's in two years. Less
than 2 years. This is a mass extinction event we're
looking at. Please go back to the drawing board and
use facts and not manipulated numbers and statistics.
And implementation of your NEM3 decision.
Until you resolve the issues raised in the appeal by
the environmental groups. And above all be truthful
and transparent. We're living in an era of fake news
and you just made it worse. So you violated the law
as well, by making solar more expensive for low-income
people without offering a viable alternative. Thank
you.
Thank you. Operator, next caller please.
Our next caller is Dwayne Sanders. You may go ahead
Hey, good morning. My name is uh, Dwayne Sanders. I'm
a private citizen here in Riverside County, California.
I agree with all the people. I'm gonna save you some
time. All those people, please delay implementing this
NEM3. So people can afford to get boosts, solar
tops and make an incentive for them to get them. Thank
you.
Thank you. Operator, next caller please.
Our next caller is John McPherson, you may go ahead.
Good morning. Uh, this is John McPherson. I'm the Executive
Director of Sustainable Energy in Monterey County.
Uh we are in support of the framework of the agreement
being formed. Which will fully fund Cal-Am's Extraction
Wells 3 and 4. And address other concerns raised
by Cal-Am. In regards to the Monterey 1 Project. Uh, please
move forward quickly in adopting the proposed agreement.
So that this project can finally move forward in a
reasonable way. Thank you very much. Thank you. Operator, next
caller please.
Our next caller is Barbara Powell Dillon, you may go ahead.
Yes, my name is Barbara Powell Dillon. Um as a, a retired
resident of San Diego. I do not approve of the increase
that SDG&E is asking uh the Commissioners to continue to
hype the gas and electric. Will the financially harm
thousands of families by the Commissioner to continue
to allow SDG&E. To rob the residents by allowing
those large profits to be utilized for the infrastructure.
We are trusting you to work for the citizens. I was left
only to have my bill double. SDG&E should be out of
it for the fuzzy accounting practices. And I you the Commissioners,
to do the right thing. Thank you. Thank you. Operator,
next caller please.
Our next caller is Pam Rude, you may go ahead.
Thank you. Can you hear me? Yes, we can.
So I'm in San Diego and a member of the Civil Rights
Alliance. I'm uh calling to request that you delay
the implementation of your NEM3 decision. Until
you resolve the issues raised in the appeal by the
environmental groups. Your decision violates the law by making
solar more expensive for low-income people, without
offering a viable alternative. I'm concerned that your
NEM3 decision will only expand the distance between
the haves and the have nots in California. I'm fortunate
to be a solar user. Though I know that you will likely
approve any future proposals by the utilities to further
reduce access to affordable solar power. You say that
you, um that our public engagement. Thank you. Thank
you Operator, next caller please.
Our next caller is Sharon Grant, you may go ahead.
I'm Sharon Grant from Palma Valley. I strongly urge
you not to implement your NEM3 decision. And
instead address the issues raised in the appeals by
environmental groups. California has mandated that
solar rooftop must continue to grow. The CPUC decision
violates this important mandate and will result in
the opposite. Solar rooftop will be gutted by about
half as has happened in every state and county that
passed similar legislation. This makes no sense. Also
CPUC's rules require you to consider all the benefit
of rooftop solar, which has not been done. You are the
Public Utility Commission, not the for profit utility
company commission. Please do the right thing and vote
no on NEM3 and support the public good. Thank you.
Thank you. Operator, next caller please.
Our next caller is Carol Hart, you may go ahead.
Hello and thank you everyone for your time today. My
name is Carol Hart and I live in Ventura, California.
Where I own my own rooftop solar system. I ask you
to please delay implementation of your NEM3 decision.
Until all of its issues outlined in the appeals efforts
have been resolved. Many of my neighbors here in California
who have been planning to purchase or rent new top
new rooftop solar systems. Can no longer afford to do
so because of your proposed net energy metering changes.
Please reconsider. Thank you. Thank you. Operator,
next caller please.
Our next caller is Sharon Tecada, you may go ahead. Thank
you. I'm Sharon Tecada from West Sacramento. I'm requesting
that the Public Utilities Commission rescind its adoption
of NEM3 rule. At, by slashing solar credits 75-80% for
future solar users, commercial and residential. The
Commission has made solar energy alternatives for those
of modest incomes, unaffordable and unpredictable. Reducing
solar credits carries the implied threat. That solar
taxes and other disincentives could be imposed at any
time. Nobody owns the sun, but it appears that privately
owned utility companies that supply energy to California.
Are attempting to own or control all the means of harnessing
its energy. NEM3 is clearly only a benefit to
those who wish to destroy an independent green source
of energy, in the name of corporate greed. Fairness
and future of the climate demand and approach that
makes solar energy affordable to all. Perhaps you should
ask yourself,
what would Cesar Chavez do?
Thank you. Thank you. Operator, next caller please.
Our next caller is Dempsey Nelson, you may go ahead.
Good morning Commissioners. Dempsey Nelson, Hermosa Beach.
I'm a 71 year old native Californian and an early adopter
of rooftop solar. As I am Southern California Edison
NEM customer number 33 since 1999. And I've been
a citizen advocate for rooftop solar ever since. Please
delay the implementation of your NEM3 decision.
Until you resolve the issues and the appeal. Our beautiful
state of California mandates the progress of rooftop
solar. And I can assure you from over 20 years of grassroots
advocacy. That the biggest deterrent for new adopters
no matter what their income level. Is, the length of
time before they will see a return of investment. NEM3
will only make the situation worse. Rooftop
solar will be DOA once NEM3 comes into play.
And with that, all the promises of the state of California
that it will move as quickly as possible to the clean
safe power of the sun. NEM3 condemns California
to a one step forward, two steps back future. Yes, we
can, California. Si, se puede. Please delay the implementation of
NEM3. Thank you very much for your time. Thank
you. Operator, next caller please. Our next caller
is Arthur Pinet, you may go ahead.
Art Pinet, City of Lakewood. NEM3 decision appeal. I can plainly
say that the willingness to adopt rooftop solar will definitely
massively reduce if NEM3 goes into effect. Not just the
poor, disadvantaged, but average middle income energy
customers like myself. Would seriously reconsider investing
in solar after NEM3 starts. The payback period is critical
in all investments. The fact that solar can pay for
itself by eliminating your power bill is critical.
If the payback period is extended to 9-10 years from the
current 5 years. I couldn't blame anyone for not
investing. Our renewable energy goals to 2050 will not
be met without rooftop solar being not just affordable
but increasingly affordable. Studies by the National
Renewable Energy Laboratory and DGEN Modeling show that
the interest of solar drops precipitously its payback
and its.
The CPUC NEM3 decision doesn't adequately refute this.
Please delay, start up and reconsider modification
to the law. Thank you. Thank you. Operator, next caller please.
Our next caller is Tom Watson, you may go ahead.
Good morning Commissioners and Governor Newsom. I hope
you're all listening. Um, it's unbelievable to me that
in the 21st century California, one of the most forward
looking smart entities in the world is talking about
going backwards. You claimed at the beginning of the
call that public comments are important to your decision
making. Based on the comments that have been made to
you. If you decide not to change your mind, that will
make that comment untrue. Finally, you also claim to
honor Dolores Huerta, and Cesar Chavez. While your decisions have
a direct impact on the people that they fought so hard
for. Please fight for them now, thank you. Thank you.
Operator, next caller please. Our next caller is
Ray Eggerman, you may go ahead. And
again, Ray Eggerman, your line is open. We're not able to hear
you, please check your mute button.
And should we go to the next caller? Yes, thank you.
Our next caller is Yvette De Carlo, you may go ahead.
Good morning. Having worked for three California Regulatory
Agencies in 24 years. I can't recall any of them sustaining
a legal challenge if they failed to address all legal
requirements during rulemaking. The PUC needs to
delay any NEM3.0 decision. Until they address all of
the issues in the recent appeal. Despite the eight
plus hours of public comment that you've heard. The
Commission did not appropriately calculate total cost
benefits of rooftop solar. And as we need to meet multiple
ambitious state carbon neutral goals. The PUC was
also not transparent about externalized costs and who
specifically pays for them to develop large scale solar
farms on private or public lands. And even more egregious,
the PUC accepted PG&E's claim that this is
an equity issue. Yet NEM3.0 puts rooftop solar even
more out of reach for low-income customers. By ensuring
they will never afford rooftop solar due to longer
payback periods. Was this PG&E's plan all along?
Thank you. Operator, next caller please.
Our next call is Anthony Zebus, you may go ahead.
Hi. Uh my name is (inaudible) and I'm calling from Los Angeles.
Uh, good morning Commissioners. I wanted, I'm struck
by the breadth of commentary against the NEM3 uh,
uh decision by citizens all over the state. And I'm
hoping that you'll take that under consideration. As
many of them have uh stated. The state of California
is, is a leader in environmental, environmental
policy. And going backwards on NEM3 is an embarrassment
and quite frankly, one we can't afford. Given we all
know we're in a state of climate emergency. I'm hoping
you'll reconsider the policy. Thank you. Thank you.
Operator, next caller please.
Our next caller is Marshall Marriam, you may go ahead.
Howdy folks. I'm Marshall Marriam from San Jose. In the last
few years, the state of California has committed to
controlling climate change with a full frontal legislative
assault on greenhouse gas emissions. As early as 2018,
this august body, the CPUC. Began developing rules to
encourage the decarbonization of buildings, by replacing
natural gas with electricity. Another effective way
to reduce emissions of natural gas and its combustion
products. Would be to generate electricity with rooftop
solar instead of natural gas fired power plants. Yet
the CPUC by its current ruling. Is making that more expensive
and less widespread. Rooftop solar is essential for
meeting California's greenhouse gas emissions targets
Please delay implementation of decision 22-12-056, until
you resolve the issues raised in the appeal.
Thank you. Operator, next caller please.
Our next caller is Nancy Pemberton, you may go ahead.
Good, good morning. My name is Nancy Pemberton and
I live in Sonoma County. I've had solar rooftop uh,
rooftop solar uh since 2014. And I too, I am calling
to ask you to grant the application for rehearing. Postpone
implementation of NEM3. And reverse this erroneous
decision.
in. Um,
my position is is that you have erroneously and without
authority elevated one requirement of the Public Utility
Code. Over the, over the requirement that you ensure
continued growth of distributed renewal generation.
And the requirement that you encourage the spread of
those resources to disadvantaged communities. Neither
of those were prioritized in your decision. And the
law requires you to treat them all equally. And what
NEM3 does in fact is the opposite. It both discourages
the growth and the spread to disadvantaged communities.
Thank you. Thank you. Operator, next caller please.
Our next caller is Sherry Ross, you may go ahead.
Um, thank you.
Thank you. I'm Sherry Ross. I live in San Diego and
I'm calling as a utility consumer. I understand the
common sense notion that rooftop solar reduces the
need for long distance transmission lines and saves
money for all of us solar users or not. But I recently
discovered from reading, reading the January appeal.
That in your analysis for the December NEM decision, you
used a figure of less than $500 million for transmission
costs for all three utilities for 5 years. When the
actual cost was $4 billion for one year alone. As a
result, the benefits of solar and reducing transmission
costs was grossly underestimated in that analysis.
This discrepancy along with other issues raised in
the appeal. Should be addressed before implementation
of the new solar policy. Please be consistent with
the Commission's consumer protection mandate. Thank
you.
Thank you. Operator, next caller please.
Our next caller is from Sharon Mullen, you may go ahead.
Hello. Um, thank you for listening to me. I'm Sharon
Mullin and I am a. Excuse me. A residential uh solar
user in Oakland, California. Please delay the implementation
of your NEM3 decision, until you resolve the issues
raised in the appeal. Excuse me, by the environmental
groups. The CPUC decision violates the state mandate to
keep rooftop solar growing and help California grow
green. Especially with more electric cars and more
electric water heaters and heating systems. Thank you
for listening to me. Thank you. Operator, next caller
please.
Our next caller is Matthew Rothstein, a Deputy County
Administrative Officer for Lake County. You may go
ahead.
Good morning Commissioners. Hiring a firm to represent
us or becoming a party to microgrid incentive program
rulemaking. Those routes were not available to us. And
typically are not practical for economically challenged
communities like those in Lake County. Instead, we
relied on your Commission's public facing tools. The
public comment portal attached to this proceeding and
the Public Advisor's Offices. In January 2022, I personally
uploaded comments sharing Lake County's concerns regarding
the scoring process for this program. We also paused
our March 15, 2022 Board Meeting to share concerns
with CPUC Staff. More than a year later, our
understanding of Lake County's comments were never formally
addressed and commented on during this process. And
not fully reflected in the public and evidentiary records.
It seems our perspective was not meaningfully heard,
unfortunately. To sustainably protect California's
environment and economic well being. The needs of rural
impoverished communities must be earnestly considered
Please take meaningful steps today to ensure this happens
surrounding the microgrid incentive program. Thank
you. Thank you. Operator, next caller please.
Our next caller is Jennifer Tanner, you may go ahead.
Uh Hello, Commissioners. My name is Jennifer Tanner.
the Leader of Indivisible California Green Team. The
environmental arm of Indivisible California's 80 groups.
Representing 80,000 people all over California. History
is not kind to the deregulators of banking, now that
we have bank failures. History is not kind to Fox News for lying
about the 2020 election. And history will not be kind
to the CPUC when this tub so sells off the cliff
from NEM3. And we are unable to meet our climate goals and
have to keep using dirty fossil fuels, because of you.
Please rethink this and delay the NEM3 implementation
and go back to the drawing board. We are all flying
with a real graduated glide path, not a cliff drop
off. We can do much better and all of us all over
California. Are begging you and Governor Newsom to do
better. Your children and grandchildren are the ones
who suffer from your decisions. Thank you.
Thank you. Operator, next caller please.
Our next caller is James Pearson, you may go ahead.
Thank you. Uh hello, Commissioners. My name is James
Pearson, I live in Gilroy, California. I'm a member
of Solar Rights Alliance and I'm an early solar adopter.
I also ask you to please delay the implementation of
your NEM3 decision. Until you resolve the issues raised
in the appeal by the environmental groups. That decision
violates the state mandate to keep rooftop solar growing.
As stated in Public Utilities Code 2827.1. Every
other jurisdiction that made such decisions saw rooftop
solar installation drop by 50% or more. Distributed
generation is an integral part of a future resilient
affordable and secure grid. It's time to rethink the
model of a monopoly utility on one side and helpless
consumers on the other. Thank you for your time. Thank
you. Operator, next caller please.
Our next caller is Don Wilson, you may go ahead.
Good morning. Um Don Wilson, I'm in El Dorado County,
California. Um I'm also on the Steering Committee of
the El Dorado Progressives Group. Which is an indivisible
group. Um as a solar homeowner, I strongly oppose this
measure. I would not have gotten solar myself if I
was looking at uh those lower um, reimbursement rates.
I think you need to reconsider the decision and you
definitely need to wait until all the court challenges
have ended. Thank you. Thank you Operator, next caller
please.
Our next caller is Sarah Ruth, you may go ahead. Uh,
Good morning Commissioners. Thank you for listening
to so many concerns regarding net metering. I agree
with the many individuals, environmental and good government
groups making important points about this tariff decision.
Please do reverse your unsupportable ruling against
it. This the solar power has been important to me since
growing up in the 60s. Mooning over the whole Earth
(inaudible). It was plain as day then that solar power
was critical. 60 years later, it is patently more critical
now. We need to boost society's use of sustainable
cooperative grid based renewable energy. Scheming to
maximize its utility for corporate profits at the expense
of all of us. It's just putting irrational and perverse.
Thank you for reversing your decision.
Thank you. Operator, next caller please.
Our next caller is Nick Peterson from Albany, you may
go ahead. Thank you. I am requesting that the
CPUC delay your NEM3 policy. Until you resolve the
issues raised in the current appeal made by the three
environmental groups. Your proposed NEM3 policy
violates the state mandate to keep rooftop solar growing.
Your NEM3 will shrink rooftop solar every state
in locality that made similar changes to rooftop solar
installations collapsed by half or more. Also your
NEM3 violates the law. By making solar power more
expensive for low-income people without offering a
viable alternative. You're presented with numerous
alternatives, but you reject them all. How can you make
the rate shift argument and then offer a solution that
makes it even more difficult for low-income people
to folks to get solar. Your NEM3 ensures that only
the well off will be able to install solar and gain
rate reductions. But does nothing to lower rates for
low-income customers. Your proposed NEM3 policy
is deeply flawed. Californians deserve better and the
CPUC needs to implement a NEM3 policy that rapidly
grows rooftop solar and it's equitable to low-income
residents and disadvantaged communities. Thank you
very much. Thank you. Operator, next caller please.
Our next caller is Susana Porge, you may go ahead. Hi, I'm
Susanna. I'm from Berkeley. Um, Commissioners. We've
been down this road before and frankly, we're all getting
pretty tired of it. Please stop caving to the corrupt
and criminal utility corporations, and start listening
to the people. The majority solar is already too expensive
for ordinary Californians. And now you're making it
even more expensive without offering a viable alternative.
You must delay the implementation and NEM3 until you
resolve the issues raised in the appeal. Please go
back to the drawing board. It's up to you to save California
from the ongoing energy crisis. You have one job, rein-in
in and regulate the utilities. Don't reward them for
bad behavior. Remember many of us myself included,
voted for Newsom and against his recall. But we can't
do it again unless he and you stand up to the utilities
and save rooftop solar. Thank you.
Thank you. Operator, next caller please. Our next
caller is Emily Brandt, you may go ahead. Thank you.
My name is Emily Brandt and I'm calling from Fresno,
California. But I'm representing I see today, the whole
San Joaquin Valley. I'm very concerned about this situation
with NEM3. I think that you need to reassess completely,
start over with this appeal. Revisit all the evidence
and you will find that this has been a very misguided.
Badly directed, illegal and immoral kind of direction
to take. We know in the Central Valley that thousands
of farm workers have been laid off due to falling of
of arable land through the drought. Those people have
struggled to retrain for installing solar. Those people
will now be losing their jobs. We've seen it. It's
not an experiment. We've seen it in other states that
have adopted this kind of approach and it instantly
reduces the amount of, of solar implementation.
Thank you. Please reconsider. Thank you. Operator, next
caller, please. Our next caller is Darryl Gale, you
may go ahead.
Hi again, Darryl Gale. Your line is open, we're not
able to hear you. Okay. This is Darryl. I live in Los
Angeles and hello Commissioners. This is your chance
lease, please do the right thing for California. This
NEM3 must be delayed. We need widespread solar over everything
including the aquifer. Solar is now highly, highly
necessary for our environment and for progress in California.
I'm done.
Thank you. Operator, next caller please. Our next
caller is Carlos Ford, you may go ahead.
Again, Carlos Ford, your line is open. We're not able
to hear you, please check your mute button.
This is Carlos Ford from Stockton, California and NEM3
needs to be dropped. We are depriving millions of people
who cannot afford it from having solar. At the expense
of providing the utility companies with all kinds of
profits. You've heard many reasons, all kinds of explanations
as to why it is not viable. You do need to remember
that you are a Public Utilities Commission, not a utility
owned Commission. And do the right thing so that this
world does not turn into a big solar mall and everyone
dies and is no longer here.
Thank you very much. Thank you. Operator, next caller
please.
Our next color is Aria White, you may go ahead.
Hello, I'm Aria White from Oakland, California and
we are solar rooftop owners. And I'm a member of Solar
Rights Alliance. I ask you to please delay the implementation
of NEM3. Until you resolve the issues raised by
the appeal from environmental groups. The CPUC decision
violates the state mandate to keep rooftop solar growing.
Instead it will shrink rooftop solar. Evidence shows
that every state and locality that made similar changes
saw rooftop solar adoptions collapse by 50% or more.
The CPUC decision will make solar more expensive for low-
income people without offering a viable alternative.
Numerous alternatives were presented to the CPUC but
were rejected without any consideration. Please reconsider
the facts and give up on your proposed NEM3. Thank
you. Thank you. Operator, next caller please.
Our next caller is Margaret Ferguson, you may go ahead.
Hello, good morning Commissioners. I live in Davis.
I'm Margaret Ferguson and I'm a member of the state
Strong Indivisible Work Group and Climate Justice.
I'm calling today to ask as many others have, and I
hope you're listening to us and not just feeling bored.
As we repeat that the request that you please delay
the implementation of your NEM3 decision. Until
you resolve the issues raised in the appeal by environmental
groups. I feel strongly that the CPUC NEM3 decision
goes against the state mandate. And what should be
your own goal as members of a Public Utilities Commission.
Your goal should be to keep rooftop solar growing for
the help of the state and the planet. Your decision
will shrink rooftop solar. And I can't understand
why you have discounted the clear evidence that such
shrinking will happen. The evidence is provided by
recent history. The fact that every state and locality
that has made similar changes has seen rooftop solar
adoption collapse. Thank you very much. I hope you'll
reconsider. Thank you. Operator, next caller please.
Our next caller is Paul Bruno., you may go ahead. My
name is Paul Bruno. I'm a water ratepayer from Monterey,
California. I'm speaking to Cal-Am's rehearing request
regarding the water repurchase agreement. I want to
draw your attention to the Public Advocates Office
amended response specifically their conclusion. That
Cal Advocates would not oppose the Commission modifying
the decision. To include allocated costs in the cost
caps for EW3 and EW4 and establishing the cost
cap for the project of $41,018,000. I appreciate Cal
advocates amended response. I support the framework
of the agreement being formed which will fully fund
the extraction wells 3 and 4. Please take action
today in adopting the proposed agreement so that Cal-Am
can sign the water purchase agreement. Doing so will
support a much needed water project here on the Central
Coast here in Monterey. Thank you very much. Thank
you. Operator, next caller please.
Our next caller is Elizabeth Gordon, you may go ahead.
Thank you Commissioners for the opportunity to speak
today. I'll be speaking about um the Microgrid Incentive
Program. On January 14, 2022, Hidden Valley Lake CSD
submitted comments regarding the Microgrid Incentive
program via the CPUCs online web portal. Yet our
voice was not heard by others in this proceeding. Like
many others, our district had specific complaints with
the proposed scoring system. We didn't think that a
system that helped 10,000 people should be scored the
same as a system that helped 100 people. We didn't
think that a system that had an expected useful life
of seven years could be seen in the same light as a
proposal that lasts 100 years and so on. Even if staff
disagreed with our opinions. Why not pass them on to
other stakeholders in this proceeding? But it doesn't
appear that they did that. And we are not the only
community in this proceeding who received this treatment?
As Commissioners, you have the power to decide. Your
Staff claimed a consensus position, but we know we
were not heard. Before adoption, we urge you please,
please consider independently examining the truth of
our claim. Thank you. Thank you. Operator, next caller
please.
Our next caller is Mark Kelly, you may go ahead.
Good morning Commissioners. My name is Mark Kelly and
I'm speaking today on behalf of the (inaudible) Water Alliance.
And we would like to support the compromise that appears
to have been reached. It includes Cal-Am and Cal Advocates which
would allow for the funding of extraction wells 3
and 4. It appears to us that this is a very positive
compromise. We hope we can move forward and we'd like
to compliment everybody who's been involved in this
process. Thank you very much.
Thank you. Operator, next caller please.
Our next caller is Crystal Rachel, you may go ahead.
Hi. Thanks for letting me speak. My name is Crystal Rachel
and I represent the organization, the Bay Area Clean
Air Coalition. I stand with 164 other organizations
that are against your decision. I have a daughter who
suffers from asthma attacks and I also suffer from
asthma attacks. Yesterday, I attended the extremely
historic vote to enforce electrical heating in the
Bay Area, by the late 2020s. More places are
expected to follow soon. Um, more than a few people
supporters included, asked where that electricity is
going to come from. Rooftop solar is the best way to
make sure that we save our health and climate and power
our methane phase out. Without destroying biodiversity
NEM3 would also hurt our economy by killing jobs
and reducing our resiliency. Please reverse your NEM3.
decision. Thank you. Thank you. Operator,
next caller please. Next call is Jennifer Raymond,
you may go ahead. Jennifer Raymond, I live in Humboldt
County. And I am calling in to request that you delay
implementation of your net metering decision. Until
the issues that are have been raised by the appeal
have been examined and resolved. Your NEM3 decision
will make rooftop solar less affordable and less appealing
and therefore decrease the amount of solar that is
developing in the state in violation of California's
mandate to increase rooftop solar. California is already
experiencing shortages of electricity resulting in
planned power shut offs especially during the summer
months. And it's at times like these, that rooftop
solar could make a significant difference. As our need
for additional electricity sources increases. It is
imperative that we develop additional clean sources
for generating electricity. Rooftop solar is a way
that every home and every business can contribute to
solving our energy shortage. And I believe the CPUC
should be doing everything in its power to encourage
rooftop solar. Your decision.
Will do just the opposite and I encourage you to delay
its implementation. Thank you. Thank you operator.
Next caller, please.
Our next caller is Glenn Caldwell. You miss my husband
commissioners. If the CPC cares so much about equity
to help more people get solar rather than taking it
away from the middle and working class. Rooftop solar
saves all ratepayers money. Whether or not they have
solar, it reduces the cost of long distance power lines
and upgrades that would be needed for centralized solar
farms. California will not meet its climate change
goals without rooftop solar. The state says we need
to triple the amount of solar to get off fossil fuels
both large scale and rooftop. We can't do that with
large solar farms alone when it is so urgent to get
more clean energy of all on the grid of all forms.
Why nickel and dime rooftop solar California cannot
meet its goal of protecting 30% of the last remaining
open spaces without a lot more rooftop solar, rooftop
solar reduces the need to develop large solar wind
farms and transmission lines. California can't require
all new homes to have solar panels on them and then
turn around and tax those panels that state and switch
that benefits the utility and harms consumers. Abandon
M three
utility company mismanagement. Thank you. Thank you
operator. Next caller, please.
Our next call is Bethany Webb. You may go ahead
again, Bethany Webb, your line is open. We're not able
to hear you. Please check your mute button.
Hi, my name is, can you hear me now? Yes, we can
Ok. Sorry about that. I don't wanna take up your time
and repeat what everybody else has said and just point
out some of the basic points I think make sense. Um
Please stand for the people of California, the people
of this planet vote with the environmentalists and
vote not with the for profit monopoly and that's it
Thank you.
Thank you. I'll bring your next caller, please.
Our next caller is Megan. You may go ahead
and again, Megan. She, we're not able to hear you.
Please check your mute button.
Hello? Can you hear me? Yes, we can. Hi, this is Megan
She, I'm a retired public health nurse living in Sacramento
County. Um I have uh
testified in front of you many times and pointed out
the f of increasing the cost for rooftop solar. This
is a uh an issue that is going to be a climate
justice issue. It is a violation of the rights of nature
and it's going to cause us not to be able to meet
our state goals of clean energy and you need to reconsider
your decision. It's important that you delay the M3
decision until you um review the and resolve the issues
raised by the environmental groups that as uh um put
it out to you with the problems with your decision
Thank you. Thank you, operator. Next caller, please
And before we go to the next caller, if you wish to
speak during the public comment period, please unmute
your phone. Press star one and clearly state your first
and last name when prompted. Our next caller is Kenneth
Garges. You may go ahead.
Hi. Um here in Santa Cruz, California and I'd like
to pose a hypothetical question. If we were discussing
a new nuclear or gas plant, we would not even think
about putting limits on the price of electricity they
could charge. So as to ensure that they remain unprofitable
and yet rooftop solar owners are, are getting that
exact treatment under any E M three, they should be
allowed to charge and earn market rate for the electricity
that they generate right now. We have a confluence
of a wonderful convergence of low interest rates, high
electricity rates, low solar panel costs these make
solar rooftop solar installations very short or near
zero time to profitability. We need to encourage solar
not regulate it out of existence. I've had a seven
kilowatt array since 2015 and I'm thinking about expanding
it, but under any M3 rules. It certainly doesn't look
very attractive to do that. So the commissioner to
reconsider and delay any M3.
Thank you operator. Next color, please. Our next caller
is Timothy Zapata Elias. You may go ahead. Hello, my
name is Timothy Zappa Elias. I have a tiny farm in
Lake County. I grow corn and squash. But I get to imagine
if I was required to sell only to one business for
a few pennies. If I wanted to buy any back for my
own use would be several dollars. What's the incentive
to do all this hard work? If I buy a new house
solar panels are required, my labor pays for them,
but I don't get a fair share for my production. If
I'm required to work to pay for solar energy without
adequate compensation or even the ability to negotiate
a price with attempt now to slave labor need to rethink
the M3 decision. Would you work for free? Thank you
Thank you operator. Next caller, please.
Our next caller is Shane mccool. You may go ahead
again, Shane M You may go ahead. Your line is open
We're not able to hear you. Please check your mute
button
and should we go to the next caller? Yes. Thank you
Our next caller is Jerry. You may go ahead.
Hi, my name is Jerry Wauck, a member of public power
San Diego and I live in the city of San Diego where
S D G and E and their parent company s energy have
just recorded record profits extracting more than a
million dollars a day on net profits from the customers
Here. New N E M N E M three rules are gift
to the investor and utilities instead of the false
narrative of cost shifting. Why aren't the I O US profits
on the table? This decision will incentivize the IOS
to pursue utility scale solar and wind projects in
our rare and beautiful wildlands further endangering
the fragile biodiversity there while we have ample
residential and commercial rooftops and parking lots
throughout the region to meet our existing and future
needs. I urge the commission to reconsider your N E
M decision or at least delay at at least until all
of the appeals have been resolved. Thank you.
Thank you operator. Next caller, please.
Our next caller is Nina Bayard with public watchdogs
You may go ahead
again, Bobby, ours, your line is open. We're not able
to hear you. Please check your me button.
Can you hear me? I can hear you. Now. The CPC was
originally proposing residential solar customers who
have spent their hard earned dollars to invest in rooftop
solar, an opportunity to pay off their energy storage
over a period of time. This would actually provide
a reliable source of energy versus the hair buring
scheme of keeping Diablo Canyon Open was this proposal
mixed by the CPC because it would just provide too
much competition would the rate payers be providing
too much competition for the investor owned utilities
Uh I appreciate an answer to that question. Thanks
so much.
Thank you operator. Next caller, please.
Our next caller is Tyler Williamson, mayor of Monterey
You may go ahead. Hi, thank you. I am calling in regarding
the pure Water Monterey expansion project and I understand
that the Public Advocate's Office has come to an agreement
with calm. Um I'm just calling in in the need for urgently
moving forward with with this matter. Um M One W is
ready to begin construction of the expansion of pure
water Monterey. This solution is the fastest option
to create new water for our community. It must rely
solely on local water resources until the amended water
purchase agreement is signed. M one W cannot move forward
with construction as the cost recovery related issues
Further delay the execution of the water purchase agreement
The Pure Water Monterey expansion total project cost
continues to increase due to inflation supply chain
challenges and increasing interest rates. The execution
of the amended water purchase agreement is the final
condition for Monterey one water to begin the construction
process. All steps should be taken to expedite the
execution of the amended water purchase agreement by
calm to allow this critical water supply project to
move forward. And for the record, I'm not speaking
on behalf of the agency or the city of Monterey. I'm
speaking as an individual.
Thank you. Mayor Williamson operator. Next caller,
please.
And at this time, we have no additional participants
on the public comment telephone line. But again, if
you would like to make a comment, please unmute your
phone. Press star one and record your first and last
name slowly and clearly when prompted.
Ok, we'll pause for a few minutes and let any remaining
callers get into the queue
and President Reynolds, we have no participants on
the public common telephone line. Ok. Thank you for
checking. Um, with no one else on the public telephone
line, uh that closes our public comment period for
today. Thanks to everyone who called in today.
Um I will now turn to the public agenda and these are
the following changes to the to today's agenda items
234 and 55 are held to April 6th 2023 that April 6th
voting meeting items 57 59 have been moved to the consent
agenda with that. We now move to the consent items
and I would like to ask for a motion on the consent
items.
Motion by Commissioner Reynolds. Is there a 2nd?
I second the motion. Thank you.
Thank you. Um, agenda clerk. Could you please call
the role?
Commissioner Douglas. Bye, Commissioner John Reynolds
Commission.
Yeah, Commissioner Shama. Bye, Commissioner Alice.
Yes, the vote is 50. The consent agenda items have
been approved. I will now turn to item 56 on the regular
agenda item 56 opens an order instituting investigation
into winter natural gas prices during the winter of
2022 - 2023. Um I will be introducing this item and
then I will turn to other commissioners for comments
This item is an order instituting investigation on
the commission's own motion into natural gas prices
during winter 2022, 2023 and resulting impacts to energy
markets.
This is really one of the most pressing issues that
ratepayers in California have faced this past winter
It was an extraordinary price spike in the price of
wholesale natural gas which led to steep increases
in residential customer energy bills in January and
February across the western region. I've spoken about
this several times because this issue is one of our
top priorities as ratepayers in California have been
significantly burdened by the price spike. In early
February. We voted to provide immediate relief to customers
by directing utilities to accelerate a 90-120 bill
credit that's combined electric and gas which will
be showing up on energy bills very soon if it hasn't
already. I stated at that voting meeting that we were
committed to taking actions to examining the to examine
the causes behind these price spikes and to consider
potential mitigation measures to protect customers
from price volatility in the future. We hosted an on
meeting with our fellow state energy agencies along
with market experts and rate pair advocacy groups.
This was a preliminary fact finding effort to sunlight
all the known drivers of the price spikes and to reckon
with the possibility that other variables were driving
these unusually extended gas high prices as the next
step following the ABA meeting today, we are considering
a proposed order to open a proceeding to investigate
these issues. If this proposed order is adopted, the
C PC will be formally examining five key issues. One
uh what were the causes and impacts of this winter's
gas price spike? Two, what were the impacts on gas
and electric prices and customer bills? Three, whether
the utility, communications to customers were sufficient
or require modifications for future incidents or what
were the potential threats to gas and electric reliability
and price volatility in summer 2023 and beyond? And
five. What potential mitigation should we be considering
It's important to note that this proposed order is
complementary to other efforts underway regarding gas
price spikes. As I've mentioned before, Governor Newsom
wrote a letter to the Federal Energy Regulatory Commission
or FC asking FC to investigate whether market manipulation
anti competitive behavior or other anomalies have contributed
to or are contributing to the high prices seen throughout
the west. This winter burke possesses broad powers
under the Natural Gas Act to investigate and penalize
anti competitive behavior in the interstate natural
gas transportation pipelines under its jurisdiction
In March. Burk responded to the governor's letter stating
that it is conducting surveillance to determine whether
any market participants engaged in behavior that contributed
to or took advantage of the high gas prices. We will
be carefully monitoring any actions that may be taken
by f to gain a fuller picture of the events that transpired
while taking actions within our own jurisdiction based
on the scope and record of the proceeding that we are
considering opening today.
This O I I uh will, will, if, if voted out today
will open the proceeding and I will be supporting the
motion to open the proceeding. I'll be asking for a
motion in a few minutes, but I will first turn to other
commissioners for any comments on this item.
Other commissioners. Ok. I see. Uh Commissioner douglas'
hand commissioner Douglass, would you like to go first
Thank you, President Reynolds. I wanted to state my
strong support for opening this investigation. Um I
think we've all seen the impacts of the natural gas
price spikes on customers. We heard about it at the
we've heard about it in public comment as well before
the C PC. And it was really hard to see the very
severe impacts that the price spike had on all customers
and of course, on the basic affordability for these
critical services and particularly we heard as well
from low income and fixed income people and it was
obviously a real challenge. And so I think it's essential
that we better understand what happened. I think it's
very important that we look into the question of whether
there was any market manipulation
in what happened. And um and that we look at actions
that could be available to us to reduce the probabilities
of something like this happening and certainly need
to reduce the impacts if something like this were to
happen again. And, and so I'm in strong support of
moving forward with this investigation and you know
thank you for bringing this forward. Thank you
next. I'll go to Commissioner Ha
thank you, President Reynolds. I consistent with your
comments and Commissioner Douglas believe this is an
important matter. And if adopted, this will open an
investigation that as stated in the O I will further
the commission's fact finding efforts in examining
whether events are at play other than normal market
forces and whether and what actions the commission
may take to provide relief as to these increased prices
the impact of all little commodity prices hit vulnerable
communities the hardest. Additionally, I recognize
that customers often see one price when they see their
bill and therefore the commission's efforts to regulate
rates are undermined when the commission doesn't understand
the factors that impact gas commodity prices. This
investigation will help us understand the gas price
volatility and the other facts involved in the gas
commodity market price spikes that hit the West through
this last winter, the drastic increase in gas prices
affected the entire west including states such as Colorado
Oregon and Washington. In addition to California this
was a uniquely Western issue that did not affect the
Midwest or Eastern states. And further more gas prices
also affect electric prices, as was mentioned. Um Due
to the electric generation that still relies on natural
gas for production. Today, the commission is adopting
this O I I will be moving expediently to address this
issue as we listen to the public concerns through voting
meeting comments, the gas and electric price on that
was recently held on the SOCAL gas and S G E general
rate case public participation hearings. I just want
to recognize the comments that we've heard through
these forums and appreciate hearing from everyone who's
called or written in to address this matter and share
their experiences that are linked to these price spikes
We're also working closely with our sister agency,
the California Energy Commission, Municipal Utilities
the I S O and other colleagues in the West on these
issues. And um then as has been noted in communication
with expressing concerns to federal regulators, consistent
with the letter that Governor Gavin Newsom and other
elected representatives submitted to the Federal Energy
Regulatory Commission asking to investigate whether
market manipulation, anti competitive behavior or other
anomalies have contributed or are contributing to the
high prices that we saw this last winter. So in closing
I just want to thank all of our staff that worked hard
to get this O I I on today's agenda specifically in
legal division, Sarah Thomas and Candice more for all
of their work and in energy division, Christina um
um A Molly Circle Michelle Keto, Bruce Jean Spencer
And the
and so with these comments, I will be strongly supporting
opening this investigation.
Thank you, Commissioner, how Commissioner Reynolds
Thank you, President Ronald. Good afternoon. I will
also be voting. Yes on this item as we have heard and
seen the immense spikes in gas prices this winter had
unacceptable impacts on customer bills. And Californians
have every right to be outraged and confused about
what they experience wild changes in utility bills
from one month to the next are not just hard to manage
financially. They can also undermine the public's trust
in the everyday systems and institutions that they
rely on. We can't prevent events like this in the future
That trust will be further undermined. Customers need
to have a resemble expectation of disability and clarity
about their energy bills. If we are going to be successful
in executing a vision for a transition to a clean energy
future and in animating public support as we implement
it, the fact that the commission does not regulate
gas, commodity prices is important, but it's beside
the point, this kind of event is harmful to the economy
and to people who feel that we let them down. And for
that reason, this investigation rightly focuses on
learning why this happened, what role regulated entities
and their unregulated affiliates played and how we
can prevent the same situation from happening again
while we do not have control over the cost of natural
gas, and we cannot change the fact that California
is at the end of the natural gas pipeline network,
there are things that we could do. I hope that this
proceeding considers cost recovery, safeguards that
we could implement in the future. For example, by setting
a cap on the amount of an increase that can be directly
implemented in rates and instead of and instead advertising
amounts above that cap over a longer period of time
I certainly appreciate that price signals work prices
encourage people to change behavior in line with system
needs. But the customer affordability experience also
matters here. And I'm also concerned about the adequacy
of price transparency for customers before their bills
hit the mail. Customers don't even know about a price
bike. They don't really have an opportunity to change
the behavior. What's more there is a point at which
prices go so high that there's no reasonable way to
respond and avoid a very high bill. Our energy use
can only go so low. I also appreciate the focus on
electricity prices in this item because we are already
seeing those impacts. We are going to issue a proposed
decision addressing Southern California, Edison's Energy
resources recovery accounts or era under collection
which is the mechanism for utility electric providers
to recover their energy costs, which are a pass through
to electric customers famous for gas customers for
those natural gas prices. Edison experienced a large
under question due to the very high gas prices in December
But I would note the difference in the process for
gas and electric recovery for the electric side. Edison
has to file for approval of an unexpected increase
in costs and we can consider amortization of those
higher costs in a proceeding. Thank you, President
Reynolds. And again, I will be putting in support of
this title.
Thank you, Commissioner Reynolds, uh commissioner
uh Thank you, President Reynolds. I also strongly support
this uh order instituting investigation. Uh It is very
important for the commission to continue gathering
the necessary facts to understand the root cause of
the extraordinarily high natural gas prices affecting
Californians this winter, especially in low income
utility customers. Uh Thank you, President Reynolds
also for convening the last month hearing from the
utilities experts and our staff on the overall impact
and reasons for the high gas prices. I'm very gratified
that per has responded to Governor Newsom and other
officials asking that this all be investigated. I appreciate
that the commodity prices are not under our jurisdiction
nor controlled by the utilities unless the utilities
you don't make a profit off of the gas. However, we
must question whether market fundamentals are threat
uh and what additional circumstances improve the market
where we can course correct uh utility actions including
timely uh outreach to customers. So customers can know
what's happening. Uh and help serve factors into the
overall landscape. I fully support this investigation
towards gathering this information that will help us
not only avoid the likelihood of spikes in the next
winter, but also what we need to be aware of for this
coming summer as California is still reliant on natural
gas fired power plant. I want to thank the energy division
and legal division for compiling this comprehensive
and excellent O I I I also want to thank Jeanne Spencer
Bruce Sarah Thomas and Kenneth Moy for briefing my
office uh, on this proposed O I I, I'm pleased to support
it. Thank you. Thank you. That concludes commissioner
comments and I would now like to ask for a motion on
item 56. Um I moved to um Adopive item 56 motion from
commissioner. Is there a 2nd? Um, a second,
2nd part. I think that was Commissioner Douglas. Is
that right? Ok. Um So we have a motion from Commissioner
Ha second by Commissioner Douglas and Jeda clerk. Could
you please call the roll?
Commissioner Douglas. Bye,
Commissioner John Rs. Yes, Commissioner Hawk. Yeah
I President Alice Reynolds. Yeah, the vote is 50. The
motion passes. I will now move to item 58. Item 58
is a management report on administrative actions and
consumer protection and safety activities. We have
a management report today, uh regarding employee recognition
Executive director, Rachel Peterson, uh will be presenting
this item. So Rachel, I will turn to you to tell us
about the C P U C employees who are being recognized
for their work, MS Peterson. Thank you very much, President
Reynolds. Ok. Let's dive right in. You're right. This
is employee recognition for accomplishments in the
fourth quarter of 2022. Next slide, please. Um As you
all know, and as our employees know, our mission is
to empower Californians through access to safe, clean
and affordable utility services and infrastructure
Next slide, we also ask our employees to adhere to
a set of core values. Those are accountability, excellence
integrity, open communication and stewardship. Next
flight, please. And we like to recognize our employees
Um Once a quarter, we ask people to nominate their
colleagues for recognition in several areas which are
listed here on this slide. And then we also ask for
panels of volunteers to select winners from among the
nominations. And we go to our first award. This is
for leadership and goes to Diana Lee from the Public
Advocate's office. Diana retired from state service
in January of 2023. Um But along the way, she garnered
this recognition, she helped to develop and improve
the pleadings that the advocacy attorneys in public
advocates office file and her determination, kindness
and cheerfulness, positively influenced the people
around her throughout her career. Diana helped people
learn and improve in their jobs at the C P U C
and also as attorneys and as writers, something we
can all aspire to on a very personal level. One person
wrote Diana's leadership is easygoing and yet supremely
professional, a standard that I aim to meet in my career
Congratulations on both the recognition and your retirement
Diana. Next slide please. Our award for quality improvement
goes to two people in rail safety division, Alexander
Franco and Dale Claxton. The Burlington Northern Santa
Fe railroad runs approximately 14 Amtrak passenger
trains per day and about the same number of freight
trains through the Central valley. That means running
through numerous locations with heavy pedestrian and
vehicle traffic. In a recent incident, rail safety
division received a video of a school bus as the bus
was attempting to navigate a very tight turn across
an at grade railroad crossing. In the video, it was
clear that it was taking approximately 30 seconds for
the bus to clear the railroad crossing. This was concerning
because as our rail experts know once crossing gates
are activated to come down, there are only about 20
seconds before the train arrives at the crossing. In
a worst case scenario here, the approaching train could
strike a 35-40 foot school bus as it was attempting
to navigate that turn.
Having seen this video in November of last year, Alexander
and Dale performed an inspection of this particular
a crossing to inspect it for safety requirements. And
it was during that inspection that Alexandra and Dale
observed several large school buses from the local
school district crossing over the same crossing, they
saw that three school buses were unable to make the
turn in one continuous move. After the inspection,
Alexander and Dale met with local transportation department
officials to discuss their findings. They learned then
that this bus route was a training exercise for school
bus drivers to learn how to negotiate extremely tight
turns. But because of the length of time, each bus
would have to navigate the turn combined with an unpredictable
amount of time that a bus driver would need if they
had to react. If the gates began to come down. Alexander
and Dale saw that a different training program was
needed. And so, while the intent of their inspection
and visit wasn't to discourage such training, everybody
involved was able to realize that an alternative was
needed. Um That didn't involve a live railroad track
Dale and Alexander's proactive approach here changed
this training process and it is now conducted in safer
locations. Congratulations Alexander and Dale. Next
slide, please.
Uh Recognition for collaboration goes to Jennifer,
Chan and Shane Guo from our Administrative law justice
division. Dane and Jennifer are the leads for the star
unit, which is our uh unit within our A L J division
They collaborate to ensure that all processing deadlines
are for all, excuse me, all processing deadlines for
all formal items that you commissioners vote on um
are prepared on time and this is especially important
in the last quarter of every year, which is known inside
the C P U C as the end of year, Crunch, Shane
and Jennifer handled the 2022 end of year crunch amid
unexpected staff shortages, a transition of their direct
supervisor and continuous urgent processing requests
which we often have when one commissioner is ending
a term such as Commissioner Reo in last year.
And Jennifer remained gracious, active and interactive
in rallying the star unit to complete all of the items
for those meetings. They were instrumental in getting
all filings, web publishing and service for our documents
done on time and let a strong end of year finish for
the star unit.
Congratulations and thank you right next slide, please
Outstanding achievement. We have two awardees here
Sunshine Palma in Energy Division. Sunshine processed
most of the 1579 advice letters that Energy Division
received last year. Yes, you heard the number correctly
1579 Sun did this largely alone. She put in an exceptional
performance. We can't overstate how much work Sunshine
did to stay on top of the task while also handling
resolutions and numerous other elements of work that
her position requires. Sunshine is more than worthy
of this commendation. Her performance is a profound
testament to her work ethic and ability to persevere
What an amazing feat. Congratulations. And thank you
Sunshine and then finally, outstanding achievement
to Grant Mack in our Office of Governmental Affairs
which is in executive division grant. Mack is an outstanding
employee of the C P U C. His technical expertise, leadership
and strategic forward thinking approach to problem
solving makes him an exceptional director. Grant has
taken on additional roles to his director position
such as leadership roles in interagency coordination
efforts where he's achieved significant wins for the
ratepayers of California grant's knowledge of the legislature
stakeholders and other state agencies has been invaluable
in helping California achieve our policy goals in energy
safety, telecommunications, transportation and water
policy areas. Congratulations, grants and well done
to everybody who received an award today. Thank you
President Reynolds and back to you.
Thank you, Commissioner Peterson and sorry, executive
director Peterson and congratulations to all of the
employees. Um that, that was a really wonderful presentation
and um I really appreciate very much appreciated hearing
about the outstanding work of all of the employees
It's critically important to the P U C and um very
nice to hear the descriptions today. So congratulations
to everyone and um thank you for presenting that item
All right, let's move on now to the next item on the
agenda, which is commissioner reports. Um So we have
we'll go through all of our commissioner reports as
the last agenda item for today. Um, who would like
to go first?
Right, Mr,
no one else is gonna volunteer. I'll go for, um, um
I just want to um, highlight and mention the tribal
en that we had um earlier this month and just that
that was a historic event in the North coast that is
combined with a number of tribal events we've been
doing since the tribal O I R R was opened. We had
a big turnout in southern California in August. And
now we did this event um in conjunction with the Energy
Commission um in the North Coast, were able to recognize
some of a lot of the work that's been going on. Particularly
thankful to Blue Lake Ranch Sharia, the tribe for all
of their contributions to the event, the Safe conference
that Blue Lake hosted and just wanted to really recognize
all of the time effort and work that went into the
bank from the tribes in the North Coast, as well as
the inter-agency Collaboration with the Energy Commission
I want to thank Ken Holbrook for all of his work and
working with Katrina Lenn Honing from the CE C chair
Hael for his vision and putting this together. My advisor
Bridget Honing for all of her work and Christie Age
for stepping in to really help out and make sure logistics
were put in place and coordinating with all the commissioner
offices. I think it was a really successful event and
I'm looking forward to hopefully having um several
more tribal events as we work through R O I R and
our tribal consultation process and just want to recognize
all of the, the work that went into that and just the
steps forward that we're taking and working with California
tribes, which is so different than what we would have
been seeing 100 years ago, 50 years ago or even 10
years ago. And so again, just want to recognize and
continue that collaboration with our, our tribal partners
Um Also um just want to talk about some recent workshops
that occurred. Um He um had the Water Acquisition Consolidation
workshop, which I just wanted to recognize Commissioner
Sharo, my Bagley King partner for all of her work in
that proceeding and that this was the second of several
workshops. Um a really good start. We had the climate
adaption workshop to sort of kick off moving into phase
two of that proceeding recently. Um Some good presentations
from the I O US about where they're at with their work
as well as a presentation from Michelle Lee, talking
about um coordinating with tribes on tribal adoption
issues. We've also got some upcoming events. We've
got, we've been holding P P S in the S C G
and gas G R C and there will be another one next
week. We've had a lot of turn out a lot of participation
in those events with some of the comments we've been
hearing here at the voting meeting and really appreciate
rate payers in the public, taking their time to provide
feedback. Um There's a day tag meeting this Friday
at one o'clock and then we are in the process of coordinating
Uh Well, we are coordinating with the California Department
of Technology, but we're coordinating a number of community
engagement events regarding our beat our broadband
program. Uh And just wanted to give folks a head start
on looking at that engagement. Hopefully those workshops
will be posted soon. But we're gonna be doing a number
of workshops throughout the state over the next um
couple of weeks and months. So just want people to
be looking for that information to engage and help
provide feedback to us as we look to implement um our
program um which will provide significant additional
resources in looking at broadband expansion. And um
with that, I think that will close my petition. Ok
great. Thank you, Commissioner Howard
Commissioner. Uh I think I saw your hand.
Yeah, thank you. Uh I have several reports. Uh Commissioner
mentioned the water acquisition. Uh We heard about
various view about valuation system. Uh I also very
much appreciated being able to attend the travel uh
and the uh shops um workshop the day before the, the
the um time spent up in Arcada and Humboldt County
was very impactful. Uh I was able to uh speak at a
round table some very good feedback and questions from
attendees. Uh very much appreciated uh witnessing the
Energy Commission's uh adoption of their Tribal Energy
Sovereignty Resolution, which they said was based on
our actions at the CPO C and very much appreciated
that Uh I do want to thank all of the staff as
outlined by commissioner, uh, Commissioner Hak and
um, my Energy Commission chair, uh I hope really uh
lead this effort and uh I look forward to working on
the, um, the travel, uh O A R where we will be
advancing our uh C P U C initiative. Uh
Speaking of solar, I'll be talking about solar on Saturday
at the Civic Well, policymakers conference. It will
be on Saturday in Pacific Grove. The Civic Well used
to be known as the local government commission. It's
a nonprofit organization that uh it's been in existence
for uh 40 years. It supports elected leaders responding
to climate uh issues and crises in their communities
Today, this year's conference is expected to bring
over 100 mayors city council members, county supervisors
uh local elected senior executives to discuss topics
such as offshore wind and decarbonisation, electrification
And my panel is on solar battery storage and grid reliability
So I will have the opportunity to share our uh C PC
programs and there are numerous programs including
programs that we have required uh for uh low income
customers and have done so for quite a few years. Um
I will be doing on, on the panel with uh Ja Pepper
Chief Executive Officer of Peninsula Clean Energy,
uh the chair of the SMD Board, he Sanborn uh and our
moderator is going to be Tam O, the vice chair in the
Los Angeles County Regional Planning Commission. This
coming Saturday. Well, uh next week, there will be
a market value of res work and education will host
this workshop on March 21st from one to summer. Uh
It's on the daily calendar. It's the third in a series
of workshops of exploring the value of resiliency of
promos and will focus on definitions. Now, resiliency
is not the same as reliability, but all resiliency
measures contribute to reliability. The 2020 market
bridge and resiliency staff concept paper said a pragmatic
way to distinguish resiliency from reliability at a
conceptual level is to treat resiliency as specifically
addressing response to large scale disruptive events
It refers to the ability to mitigate the impact of
such event by reducing its magnitude duration and,
and uh uh increased recovery and extending the duration
of resistance, the limit energy strategy and economic
consulting of firm and the uh uh and a California uh
grant which the I O U fund, the P P U C
uh been working on building a good resiliency framework
and they present and facilitate discussions on how
to apply through our integrated resource planning process
So again, additional information is on the commission's
website. Uh and then we have a low m over board meeting
coming up the, the first quarter, a meeting and there
will also be a reception but the meeting itself will
be in person in Sacramento on April 12th from 10 to
3 PM. Uh information will be available again on our
website. Other than that, uh the L I O B will host
a reception celebrating 20 years of advising the commission
on low income, electric, gas and water customer issues
As a liaison for the commission to low income ratepayers
and representatives all are welcome and invited. Uh
uh and for the commissioners, there will be uh more
information for you. Uh ok. Then I want to um I'm now
so I have two advisors joining the team.
Uh Jack Chan joined the commission in 2020 and has
been serving as the senior hydrogen analyst in the
energy position where he worked on the Southern California
Gas Company link hydrogen pipeline proceeding application
Before that, Jack worked on the para research development
and administration projects programs uh in both the
gas and electricity sectors. Now, in the first part
of Jack's career, he worked as a journalist for 20
years in California, Latin America and China be grew
up in Southern California, earned a bachelor's degree
in English and two master. Well, actually more than
two master's degrees. Uh one in energy and resources
the other in public policy uh from U C Berkeley, uh
A third in journalism. I think he has a course in fine
arts. So welcome, Jack. Our second advisor is Lisa
Powell. Uh Before joining my office, Lisa has been
serving as a senior regulatory analyst in the energy
division working on energy efficiency program since
2007. Um uh She actually joined in 2001 serving on
both the communications and energy version on a variety
of policy issues including the death and disabled telephone
program, California Teleconnect fund, implementation
of the California Renewable Portfolio program uh and
uh the self generation incentive program uh also implementation
of this California Solar Initiative program. Uh and
many other things. Uh She holds a bachelor's degree
in Political Science and a master's master's degree
in Public Administration from San Francisco State University
Welcome Lisa. Uh I also want to give a heartfelt thanks
to my previous advisor, Andrew and Kelsey Toy from
the Energy Division and Joanna Pet Green from the Communications
division for their service of advisors in my office
Forward to working with them in their uh new, new capacities
back in the industry division. Thank you. That is my
personal report. All right. Thank you, Commissioner
Sharma. Um I'll go next to Commissioner Douglas.
All right. Thank you, President Reynolds. Uh Just a
couple brief reports from me. First of all, I wanted
to also note my appreciation for the bond held earlier
this month among tribal leaders and commissioners from
the California Energy Commission and the Public Utilities
Commission. Uh, and I uh join in the thanks as well
that commissioner and Commissioner Shama conveyed to
all of the, um, all, you know, everyone who put in
a lot of time and effort to organize the space and
organize the dialogue um because there was a lot of
staff and leadership work from CE C C P U C CAL
Poly Humboldt, um and uh the participating tribes to
help set the stage for the dialogue that we were able
to have. And um I very much look forward to continuing
the dialogue with the tribes that participated and
um many tribes throughout the state that are very engaged
and very interested in um the energy and climate policies
and, and goals and uh just consultation and engagement
as we move forward with our work. So um appreciated
very much the bunk. And um I also wanted to highlight
two events that are coming up. Um One is the, this
Friday. We will have a public pre hearing conference
in the proceeding to implement Senate Bill 8 46 concerning
potential extension of Dala Canyon Power plant operations
So that event will that pre hearing conference will
be, will begin at 10 AM this Friday. And um in addition
to that also this Friday, there's uh another public
meeting of the disadvantaged communities advisory group
Finally, um just another uh note as um my office uh
continues to solidify here. I wanted to make let, let
people know that uh we've made the transition uh for
Courtney Bao to become my chief of staff. She joined
the C P U C recently, having previously served on the
commission at the California Energy Commission and
also in various roles at the Ce C over many years.
And I'm really delighted to have her here and have
her as my chief of staff. And I also uh want to
thank um my former interim chief of staff, Sean Simon
who very helped me navigate my transition to the C
P U C. Um I knew him well, of course, even coming
here from the very great work he did at the C P
U C that, that I was very much aware of and, and
I really enjoyed working with him when I was at on
the Energy Commission. So, um I told him, I think,
you know, if I could have picked the person to help
onboard me here, it would have been him. And I was
really delighted that, that, that worked out that way
And, and I really thank him for um sharing his insights
and, and um just, just spending the time with me to
help me get started here. Um So that's all I've got
Thank you.
All right, great. Thank you, Commissioner Douglas.
Um Turning now to Commissioner Reynolds. Thank you
President Reynolds. Well, I have no report this week
I do want to echo the thanks and appreciation of my
colleagues for all the effort that went into uh planning
and executing the tribe. And my appreciation for the
tribes that uh that joined us as well as, as for our
colleagues over at the Energy Commission for their
uh their participation in organization as well.
Great. Thank you, um Commissioner Reynolds and um for
my report, I'll start off by just um also echoing the
thanks um to the tribes who attended the um and the
Energy Commission for joining us together, we had all
five commissioners present. It was really a wonderful
event and also thank you to the staff who helped organize
it. Um I do have uh one additional event that I wanted
to highlight. It's taking place tomorrow on March 17th
Um On that day, the PC will be holding a virtual workshop
to examine electricity reliability including newly
emergent reliability concerns associated with climate
driven events. The workshop will include discussion
of programs used by the three large electric IOS. These
programs are informally known as fast trip programs
which are designed to reduce the risk of catastrophic
wildfires by automatically de energizing power lines
that are struck by foreign objects, but of course catastrophic
wildfires are only one piece of the electricity reliability
puzzle and as we know all too well, especially since
we are still experiencing the impacts of the recent
atmospheric river events. Extreme events are becoming
more frequent ranging from extreme heat events to torrential
downpours and these events are posing a broader and
broader array of new reliability concerns. So against
this backdrop, tomorrow's workshop will examine a range
of types of outages, both the unplanned and planned
including public safety power shut offs or P SPS um
as well as distribution system reliability issues.
And the associated impacts on customers during the
workshop. We'll hear from the utilities as well as
local governments, community choice aggregators and
the Public Advocates Office. Uh The most updated information
related to the workshop, including access information
can be found on our website. So that event is taking
place tomorrow and that concludes my commissioner report
Um That is the last item on our agenda. So we finished
our meeting today and so with that, the public meeting
of the, uh, uh, public Utilities Commission is now
adjourned. Thank you very much.