Document 6526908

STATE OF CALIFORNIA
Budget Change Proposal - Cover Sheet
DF-46 (REV 03/13)
Fiscal Year
2014-15
BCP No.
4
Org. Code
8660
Department
Priority No.
California Public Utilities Commission
Program
10 Regulation of Utilities
Element
10.50 Energy
Component
Proposal Title
S8 790- Community Choice Aggregation Ongoing Implementation
Proposal Summary
Increase of 3.0 positions and $363,000 from the PUC Utilities Reimbursement Account. This Bep requests two
permanent Public Utilities Regulatory Analyst positions in the Energy Division of the CPUC and one 2-year
limited term Administrative Law Judge (ALJ) position to replace the 4 limited term positions that the Commission
was granted in fiscal year 2012-13 to implement the provisions of 88 790. The bill requires the CPUC to develop
and implement a number of new provisions to facilitate the formation and operation of Community Choice
Aggregation (CCA) programs. The Commission instituted a Rulemaking proceeding which adopted the Code of
Conduct as required by SB 790 before December 31 , 2012. Due to the on-going nature of implementation work
required by SB 790, the CPUC requests two permanent Public Utility Regulatory Analyst positions. The CPUC
also requests a two-year limted term ALJ position to handle formal complaint or investigation proceedings in the
early implementation stages of the bill.
Requires Legislation
o Yes
Code Section(s) to be Added/Amended/Repealed
~No
Does this BCP contain information technology (IT)
components? 0 Yes
~ No
Department CIO
Date
If yes, departmental Chief Information Officer must sign.
For IT requests, specify the date a Special Project Report (SPR) or Feasibility Study Report (FSR) was
approved by the Califomia Technology Agency, or previously by the Department of Finance.
o FSR
0
SPR
Project No.
Date:
0
If proposal affects another department, does other department concur with proposal?
Attach comments of affected department, signed and dated by the department director
Additional Review:
BCPType:
PPBA
0
Capital Outlay OITCU
o Policy
0
FSCU OOSAE
0
CALSTARS
0
Yes
ONo
TecI1nology Agency
o Wor1<load Budget per Government Code 13308.05
Date submitted to the Legislature
DF-46 (REV 03/13)
Fiscal Summary
(Dollars in thousands)
BCP No.
Proposal Title
Program
10 Regulation of Utilities
Dollars
BY
BY + 1
$257
$257
4
Community Choice Aggregation Ongoing Implementation
Positions
Personal Services
CY
CY
BY
BY + 1
Total Salaries and Wages
1
3.0
3.0
3.0
3.0
2
Total Staff Benefits
Total Personal Services
0.0
$0
97
$354
97
$354
3
3
3
3
3
3
Operating Expenses and Equipment
General Expense
Printing
Communications
Postage
Travel-In State
Travel-Out of State
Training
Facilities Operations
Utilities
Consulting & Professional Services: Interdepartmental 3
Consulting & Professional Services: External 3
Data Center Services
Information Technology
Equipment 3
Other/Special Items of Expense: 4
Total Operating Expenses and Equipment
$0
$9
$9
Total State Operations Expenditures
$0
$363
$363
$363
$356
$0
$0
$0
$0
$363
$363
Fund Source
Org
Item Number
Ref
Fund
8660
001
0462
General Fund
Special Funds5
Federal Funds
Other Funds (Specify)
Reimbursements
Total Local Assistance Expenditures
Fund Source
Org
Item Number
Ref
Fund
General Fund
Special Funds5
Federal Funds
Other Funds (Specify)
Reimbursements
Grand Total, State Operations and Local Assistance
1
Itemize positions by classification on the Personal Services Detail worksheet.
2
Provide benefit detail on the Personal Services Detail worksheet.
3
Provide list on the Supplemental Information worksheet.
4
Other/Special Items of Expense must be listed individually. Refer to the Uniform Codes Manual for a list of standard titles.
5
Attach a Fund Condition Statement that reflects special fund or bond fund expenditures (or revenue) as proposed.
Personal Services Detail
(Whole dollars)
BCP No.
Proposal Title
Community Choice Aggregation Ongoing Implementation
4
Salaries and Wages Detail
Classification 1
2
CY
Administrative Law Judge II
Pub. Util. Regulatory Analyst IV
Total Salaries and Wages 3
0.0
Positions
BY
BY + 1
1.0
1.0
2.0
2.0
3.0
Salary
Range
7858-9889
5561-6962
Total Staff Benefits
3
Grand Total, Personal Services
BY + 1
$106,482
$150,276
$256,758
$256,758
BY
$20,797
23,878
BY + 1
$20,797
23,878
52,635
52,635
$0
$97,311
$97,311
$0
$354,069
$354,069
CY
3.0
Staff Benefits Detail
OASDI
Health/Dental/Vision Insurance
Retirement
Miscellaneous
Safety
Industrial
Other:
Workers' Compensation
Industrial Disability Leave
Non-Industrial Disability Leave
Unemployment Insurance
Other:
Dollars
BY
$106,482
$150,276
$0
CY
1
Use standard abbreviations per the Salaries and Wages Supplement. Show any effective date or limited-term expiration date in parentheses if the
position is not proposed for a full year or is not permanent, e.g. (exp 6-30-13) or (eff 1-1-13)
Note: Information provided should appear in the same format as it would on the Changes in Authorized Positions.
2
If multiple programs require positions, please include a subheading under the classification section to identify positions by program/element.
3
Totals must be rounded to the nearest thousand dollars before posting to the Fiscal Summary.
Supplemental Information
(Dollars in thousands)
BCP No.
Proposal Title
Community Choice Aggregation Ongoing Implementation
4
CY
Equipment
BY
BY +1
0
Standard Complement
Total
$0
$0
$0
Total
$0
$0
$0
Total
$0
$0
$0
Consulting & Professional Services
Facility/Capital Costs
Yes
One-Time/Limited-Term Costs
Description
X
No
BY +1
Positions
Dollars
BY
Positions
Dollars
Workstations
0
PC/Software
0
ALJ II
BY +2
Positions
Dollars
1.0
150
1.0
150
1.0
$150
1.0
$150
Yes
Full-Year Cost Adjustment
$0
0.0
Future Savings
Yes
0.0
BY +2
Positions
Dollars
$0
0.0
0.0
$0
No
Specify fiscal year and estimated savings, including any decrease in positions.
BY
BY +1
Item Number
Positions
Dollars
Positions
Dollars
Total
$0
No
Provide the incremental change in dollars and positions by fiscal year.
BY
BY +1
Item Number
Positions
Dollars
Positions
Dollars
Total
0.0
$0
0.0
$0
BY +2
Positions
Dollars
0.0
$0
Special Fund Detail
(Dollars in thousands)
BCP No.
4
Special Fund Title
Proposal Title
Community Choice Aggregation Ongoing Implementation
Item Number
Dollars
Fund
CY
BY
Org
Ref
Total Special Funds - State Operations
Special Fund Title
1
Org
$0
Item Number
Ref
Fund
$0
Dollars
BY
CY
Total Special Funds - Local Assistance 2
BY + 1
$0
$0
BY + 1
$0
1
Total must tie to "various" funds identified for State Operations, Special Funds in the Fiscal Summary. Add rows if necessary.
2
Total must tie to "various" funds identified for Local Assistance, Special Funds in the Fiscal Summary.
$0
Analysis of Problem
A. Proposal Summary
Increase of 3.0 positions and $363,000. from the PUC Utilities Reimbursement Account. This BCP
requests two permanent Public Utilities Regulatory Analyst positions in the Energy Division of the
CPUC and one 2-year limited term Administrative Law Judge (ALJ) position to replace the 4 limited
term positions that the California Public Utilities Commission (CPUC) was granted in fiscal year 201213 to implement the provisions of SB 790. The bill requires the CPUC to develop and implement a
number of new provisions to facilitate the formation and operation of Community Choice Aggregation
(CCA) programs. The CPUC instituted a Rulemaking proceeding which adopted the Code of Conduct
as required by SB 790 before December 31, 2012. Due to the on-going nature of implementation work
required by SB 790, the CPUC requests two permanent Public Utility Regulatory Analyst positions and
a two-year limted term ALJ position to handle formal complaint or investigation proceedings in the early
implementation stage of the bill.
B. Background/History
In fiscal year 2012-13 Budget Change Proposal (BCP) #8 the CPUC was granted four 2-year limited
term positions to implement SB 790. Following the approval of the BCP, the CPUC hired two 2-year
limited term Public Utilities Regulatory Analysts in the Energy Division, one 2-year limited term ALJ and
one 2-year limited term Legal Analyst. Presently, one limited term Public Utility Regulatory Analyst in
the CPUC’s Energy Division (ED) is fully committed to handling all the work related to the
administration of energy efficiency programs by the CCAs, while the other is fully committed to handling
all the rest of CCA program implementation work. The ALJ Division has used the limited term ALJ
position and the Legal Analyst position to conduct the proceeding establishing the Code of Conduct and
associated rules, and enforcement procedures in order to further facilitate the implementation of
community choice aggregation (CCA) programs as required by SB 790.
At the time the earlier BCP for limited term positions was submitted and approved, there was only one
CCA, Marin Clean Energy. Since then, two other CCAs (Sonoma Clean Power and Clean Power San
Francisco) have formed and submitted Implementation Plans to the Energy Division for review and
approval, with as many as a dozen more on the horizon. A number of local jurisdictions considering
establishing CCA programs have contacted the Energy Division for advice and guidance. The work in
these areas is expected to be increasing and ongoing. In addition, various issues relating to CCAs’
relationships with the investor owned utilities persist.
Due to the on-going nature of implementation work required by SB 790 in the Energy Efficiency area
and the on-going implementation work related to the formation of CCAs, cetification of their
implementation plans and a myriad of issues related to the on-going relationship of CCAs with the
distribution utility in their area, the CPUC requests two permanent Public Utilities Regulatory Analyst
positions and a two-year limted term ALJ position to handle formal complaint or investigation
proceedings in the early implementation stage of the bill. The limited term Legal Analyst position is no
longer needed for implementation work related to SB 790.
C. State Level Considerations
P. U. Code section 365.1(c) 1 and 365.1 (c) (2) (A) require the Commission to ensure that non-utility
providers of electric service such as Direct Access providers and CCAs are subject to the same
requirements that are applicable to the state's three largest electrical corporations under any programs
or rules adopted by the Commission to implement the resource adequacy provisions of Section 380,
the renewables portfolio standard provisions of Article 16 (commencing with Section 399.11), and the
requirements for the electricity sector adopted by the State Air Resources Board pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of
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Analysis of Problem
the Health and Safety Code). This requirement applies notwithstanding any prior decision of the
Commission to the contrary.
Additionally, the Commission is required to ensure that in the event that the Commission authorizes an
electrical corporation to obtain generation resources that the Commission determines are needed to
meet system or local area reliability needs for the benefit of all customers in the electrical corporation's
distribution service territory, the net capacity costs of those generation resources are allocated on a
fully non-bypassable basis consistent with departing load provisions as determined by the Commission,
to CCAs and direct service providers. Section 365.1 also requires the Commission to allocate the
resource adequacy benefits of generation resources acquired by an electrical corporation to all
customers who pay their net capacity costs.
AB 32 sets the ambitious goal of reducing the State’s greenhouse gas (GHG) emissions levels to 1990
levels by 2020, and specifically identifies energy efficiency as the most cost effective option to reduce
the GHG emissions of the electricity sector. Additionally, the California Air Resources Board (CARB),
the agency responsible for implementing the California Global Warming Solutions Act of 2006 (Health
Code §38500), identifies specific local government initiatives to reduce energy demand and
consumption through enhanced energy efficiency efforts. In addition, the joint CPUC/California Energy
Commission Energy Action Plans I and II establish a State “loading order” that prioritizes cost-effective
energy efficiency. Furthermore, the California Long-Term Energy Efficiency Strategic Plan (EE
Strategic Plan) recognizes the crucial role of local governments, including those that form CCAs, in
both promoting enhanced energy efficiency programs and enforcing current regulations, and includes
specific goals and strategies for local governments to reduce energy demand and consumption.
Making the previously granted limited-term positions permanent, as requested, would allow the
Legislature to meet its goals while minimizing workload. It will pass the bulk of the CCA work to
qualified, subject matter experts at the Commission. If these positions are not made permanent, the
increasing amount of CCAs will have no choice but to go directly to their legislators with any issues.
D.
Justification
Proliferation of CCA Programs
Marin Clean Energy, California’s only currently operational CCA, has been operational since 2010 and
currently serves approximately 130,000 customers in Marin County and the City of Richmond
(approximately 80% of its potential customers). MCE re-submitted its implementation plan after the City
of Richmond joined MCE which was reviewed and approved by the Commission on January 21, 2013.
MCE is a frequent participant in Commission proceedings. MCE is also an administrator of Energy
Efficiency programs, which must be approved by Commission Energy Division (ED) staff. In addition,
ED staff often acts as a mediator of disputes between MCE and Pacific Gas & Electric (PG&E).
The City and County of San Francisco submitted an Implementation Plan and Statement of Intent, as
well as an Updated Implementation Plan and Statement of Intent, in connection with its CleanPower SF
CCA program which was approved by the Commission on June 7, 2013. Recently, the San Francisco
Public Utilities Commission declined to adopt not-to-exceed rates for the program, essentially stalling its
actual implementation. ED staff is monitoring this situation and may need to review an additional
Updated Implementation Plan and Statement of Intent if in fact the City and County of San Francisco
decides to reconfigure and/or move forward with the CCA program. Sonoma Clean Power (SCP) has
formed and submitted its Implementation Plan, Statement of Intent and Service Agreement to Energy
Division staff for review and approval. These are both currently being reviewed by ED staff.
As many as twelve entities in California are considering CCAs as a viable option. Representatives and
consultants for a number of these entities contact Commission staff for information on formation,
requirements and other Commission rules pertaining to the CCAs. It is estimated that there will be two
or more CCA applications in 2014-2015 and one to two applications every year going forward as more
entities take interest in becoming a CCA.
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Analysis of Problem
Requirements of SB 790
SB 790 requires the Commission to establish a code of conduct, associated rules, and enforcement
procedures, applicable to electrical corporations in order to further facilitate the consideration,
development, and implementation of community choice aggregation programs, to foster fair
competition, and to protect against cross-subsidization by ratepayers. Among other things, it requires
the Commission to proactively expedite the complaint process for disputes regarding an electrical
corporation’s violation of its obligations in order to provide for timely resolution of complaints made by
community choice aggregation programs, so that all complaints are resolved in no more than 180 days
following the filing of a complaint by a community choice aggregation program.
SB 790 provides a right to CCAs to elect to become administrators of Energy Efficiency (EE)
funds collected from CCA customers. CPUC oversight over these EE programs is an ongoing
responsibility. The CPUC needs one permanent full time PURA position to handle this ongoing
EE related workload.
SB 790 gives a right to CCAs to elect to become energy efficiency administrators and prohibits the
CPUC from delegating or otherwise transferring the Commission’s authority to make this determination
for a community choice aggregator to an electrical corporation. It requires the CPUC to certify CCAs
applying to be energy efficiency program administrators and to establish an impartial process for
reviewing and certifying a CCA’s plan for administering energy efficiency and conservation programs
for its electric service customers.
Marin Clean Energy is currently operating energy efficiency programs. Sonoma Clean Power and
CleanPower SF are both expected to implement energy efficiency programs too. As these programs
continue to develop, ED staff monitoring and approval is required on an ongoing basis.
The following excerpts describe the process for the Commission to follow:
381.1(d) The commission shall establish an impartial process for making the determination of whether a third
party, including a community choice aggregator, may become administrators for cost-effective energy
efficiency and conservation programs pursuant to subdivision (a), and shall not delegate or otherwise transfer
the commission’s authority to make this determination for a community choice aggregator to an electrical
corporation.
(f) A community choice aggregator electing to become an administrator shall submit a plan, approved by its
governing board, to the commission for the administration of cost-effective energy efficiency and conservation
programs for the aggregator’s electric service customers that includes funding requirements, a program
description, a cost-effectiveness analysis, and the duration of the program. The commission shall certify that
the plan submitted does all of the following:
(1) Is consistent with the goals of the programs established pursuant to this section and Section 399.4.
(2) Advances the public interest in maximizing cost-effective electricity savings and related benefits.
(3) Accommodates the need for broader statewide or regional programs.
(4) Includes audit and reporting requirements consistent with the audit and reporting requirements established
by the commission pursuant to this section.
(5) Includes evaluation, measurement, and verification protocols established by the community choice
aggregator.
(6) Includes performance metrics regarding the community choice aggregator’s achievement of the objectives
listed in paragraphs (1) to (5), inclusive, and in any previous plan.
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Analysis of Problem
(g) If the commission does not certify the plan for the administration of cost-effective energy efficiency and
conservation programs submitted by a community choice aggregator pursuant to subdivision (f), the
community choice aggregator electing to administer these programs may submit an amended plan to the
commission for certification. No moneys may be released to a community choice aggregator unless the
commission certifies the plan pursuant to subdivision (f).
Reviewing and approving CCAs’ Implementation Plans, refining rules for allocation of
generation costs to CCAs, auditing and enforcing Code of Conduct and rules is an ongoing
activity. The CPUC needs one full time PURA position to handle this ongoing work.
a. Certifying Implementation Plans: When a CCA decides to start service, the CPUC’s staff is
responsible for reviewing its Implementation Plan, Statement of Intent, and Service Agreement.
Pursuant to Public Utilities Code 366.2 (c)(A)-(G), as part of this review for compliance, ED staff must
be satisfied that the Implementation contains all of the following:
(A)
An organizational structure of the program, its operations, and its funding.
(B)
Ratesetting and other costs to participants.
(C)
Provisions for disclosure and due process in setting rates and allocating costs among participants.
(D)
The methods for entering and terminating agreements with other entities.
(E)
(F)
The rights and responsibilities of program participants, including, but not limited to, consumer
protection procedures, credit issues, and shutoff procedures.
Termination of the program.
(G)
A description of the third parties that will be supplying electricity under the program, including, but not
limited to, information about financial, technical, and operational capabilities.
b. Refining rules for allocation of generation costs to CCAs: SB 790 requires the Commission to
undertake additional analyses before imposing charges on CCAs for resources procured by the utility
to meet a system or local reliability need. As the following excerpts show, the new law requires the
Commission to determine the value of benefits that remain with bundled customers and reduce the
estimated net unavoidable electricity costs paid by the customers of a community choice aggregator
by the value of any benefits that remain with bundled service customers, unless the customers of the
community choice aggregator are allocated a fair and equitable share of those benefits. Additionally,
it requires the Commission to undertake studies and analyses of specific benefits resulting from a
program to customers of a community choice aggregator before the Commission requires CCA
customers to pay nonbypassable charges for goods, services, or programs.
366.2(g) Estimated net unavoidable electricity costs paid by the customers of a community choice aggregator
shall be reduced by the value of any benefits that remain with bundled service customers, unless the
customers of the community choice aggregator are allocated a fair and equitable share of those benefits.
366.2(k) (1) Except for nonbypassable charges imposed by the commission pursuant to subdivisions (d), (e),
(f), and (h), and programs authorized by the commission to provide broader statewide or regional benefits to
all customers, electric service customers of a community choice aggregator shall not be required to pay
nonbypassable charges for goods, services, or programs that do not benefit either, or where applicable, both,
the customer and the community choice aggregator serving the customer.
c. Determining the cost-recovery mechanism to be imposed on the CCAs: Public Utilities Code
366.2 (c) (5)-(8) prescribes the following process for the Commission to follow.
(5) In order to determine the cost-recovery mechanism to be imposed on the community choice aggregator
pursuant to subdivisions (d), (e), and (f) that shall be paid by the customers of the community choice aggregator
to prevent shifting of costs, the community choice aggregator shall file the implementation plan with the
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Analysis of Problem
commission, and any other information requested by the commission that the commission determines is
necessary to develop the cost-recovery mechanism in subdivisions (d), (e), and (f).
(6) The commission shall notify any electrical corporation serving the customers proposed for aggregation that
an implementation plan initiating community choice aggregation has been filed, within 10 days of the filing.
(7) Within 90 days after the community choice aggregator establishing load aggregation files its
implementation plan, the commission shall certify that it has received the implementation plan, including any
additional information necessary to determine a cost-recovery mechanism. After certification of receipt of the
implementation plan and any additional information requested, the commission shall then provide the
community choice aggregator with its findings regarding any cost recovery that must be paid by customers of
the community choice aggregator to prevent a shifting of costs as provided for in subdivisions (d), (e), and (f).
(8) No entity proposing community choice aggregation shall act to furnish electricity to consumers within its
boundaries until the commission determines the cost recovery that must be paid by the customers of that
proposed community choice aggregation program, as provided for in subdivisions (d), (e), and (f).
MCE recently filed a Petition to Institute Rulemaking regarding non-bypassable charges, or exit fees.
Even though this Petition was ultimately rejected by the Commission in P.12-12-010, reviewing and
analyzing this Petition and the replies of numerous parties took significant staff resources. With Marin
Clean Energy providing inspiration and a successful business model, the state is seeing a proliferation
of CCAs in recent months, with more on the horizon. ED staff is currently in discussions with
stakeholders (CCAs, investor owned utilities, consumer advocacy groups) to determine what specific
issues, if any, are ripe for an informal workshop and/or roundtable discussion on the subject of reassessing the calculation of exit fees/non-bypassable charges.
d. Implementing provisions related to service agreement between the utility and a CCA and
the termination of service by a utility: SB 790 creates a new category of formal complaint
proceedings in the areas of the service agreement and the termination of service by a utility. The
Commission needs to develop transparent and enforceable rules to evaluate whether service
agreements between the community choice aggregator and the electrical corporation includes
equitable responsibilities and remedies for all parties. The CPUC also expects formal and informal
complaint cases from CCAs alleging that the service agreement is not equitable.
366.2 (c) (16): A community choice aggregator shall have an operating service agreement with the electrical
corporation prior to furnishing electric service to consumers within its jurisdiction. The service agreement shall
include performance standards that govern the business and operational relationship between the community
choice aggregator and the electrical corporation. The commission shall ensure that any service agreement
between the community choice aggregator and the electrical corporation includes equitable responsibilities and
remedies for all parties. The parties may negotiate specific terms of the service agreement, provided the service
agreement is consistent with this chapter.
366.2(l) (1) An electrical corporation shall not terminate the services of a community choice aggregator unless
authorized by a vote of the full commission. The commission shall ensure that prior to authorizing a termination
of service, that the community choice aggregator has been provided adequate notice and a reasonable
opportunity to be heard regarding any electrical corporation contentions in support of termination. If the
contentions made by the electrical corporation in favor of termination include factual claims, the community
choice aggregator shall be afforded an opportunity to address those claims in an evidentiary hearing.
(2) Notwithstanding paragraph (1), if the Independent System Operator has transferred the community choice
aggregator’s scheduling coordination responsibilities to the incumbent electrical corporation, an administrative
law judge or assigned commissioner, after providing the aggregator with notice and an opportunity to respond,
may suspend the aggregator’s service to customers pending a full vote of the commission.
As required by SB 790, the Commission instituted a rulemaking proceeding and adopted the
Code of Conduct.
-5-
Analysis of Problem
SB 790 required the Commission to institute a rulemaking proceeding no later than March 1, 2012, for
the purpose of considering and adopting a Code of Conduct, associated rules, and enforcement
procedures, to govern the conduct of the electrical corporations relative to the consideration, formation,
and implementation of community choice aggregation programs authorized in Section 366.2. The
Commission completed this work and issued a decision (D.12-12-036) in December 2012. The
Decision requires Commission staff to enforce the provisions of the Code. These enforcement efforts
are ongoing.
The Commission is tasked with maintaining an expedited complaint process for CCAs. If the
CCA has a complaint against the investor owned utility, the Commission must have the
resources to respond in the expedited fashion prescribed by statute. The Commission requests
one limited term ALJ for two years to meet its caseload in this area.
As required by SB 790, the Commission established an expedited complaint procedure in D.12-12-036
for disputes involving an electrical corporation’s violation of its obligations to CCAs under state law.
Specifically, these disputes pertain to service agreements and the termination of service by a utility. Per
SB 790, these complaints must be resolved within 180 days of the complaint’s filing, with the possibility
of one 60-day extension by Commission order, if necessary. Section 8.2 (Rules 24 through 29) of the
Code of Conduct establishes the rules for this expedited complaint process and enforcement
procedures. In addition, Rule 23 of the Code of Conduct requires that beginning in 2015 the
Commission’s Executive Director have audits prepared by independent auditors verifying that each
electrical corporation is in compliance with the CCA Code of Conduct for the preceding two years.
The Commission expects a number of formal complaints to be filed by CCAs under this section as the
number of local governments trying to form a CCA is likely to increase now that the provisions of SB
790 are in effect. Given the 180 day statutory deadline for the expedited complaint process and the
expectation of new CCAs that will file complaints, the Commission needs one two-year limited term ALJ
II to process these expedited cases. The expedited nature of these complaints cannot be absorbed
within currently constrained ALJ resources. In addition, if the audit required by Rule 23 of the CCA
Code of Conduct indicates non-compliance with CCA rules by electrical corporations, the Commission
may need to open an investigation and conduct further proceedings based on the audit findings.
The following excerpts from the new law show this area of additional work:
366.2(c)(10): If the commission finds that an electrical corporation has violated this section, the commission
shall consider the impact of the violation upon community choice aggregators.
366.2 (c) (11): The commission shall proactively expedite the complaint process for disputes regarding an
electrical corporation’s violation of its obligations pursuant to this section in order to provide for timely
resolution of complaints made by community choice aggregation programs, so that all complaints are
resolved in no more than 180 days following the filing of a complaint by a community choice aggregation
program concerning the actions of the incumbent electrical corporation. This deadline may only be extended
under either of the following circumstances:
(A) Upon agreement of all of the parties to the complaint.
(B) The commission makes a written determination that the deadline cannot be met, including findings for the
reason for this determination, and issues an order extending the deadline. A single order pursuant to this
subparagraph shall not extend the deadline for more than 60 days.
This BCP requests the following 3 positions to continue implementing the provisions of SB 790:
 One 2-year limited term Administrative Law Judge II
 One Public Utilities Regulatory Analyst IV in the Energy Division to handle CCA related Energy
Efficiency work.
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Analysis of Problem
 One Public Utilities Regulatory Analyst IV in the Energy Division to handle all of the CCA related
non-Energy Efficiency work.
Tasks to be performed by One Administrative Law Judge II for 2 years: The ALJ will conduct
Commission-initiated investigations and expedited 180 day complaint proceedings concerning alleged
violations of the CCA Code of Conduct set forth in D.12-12-036 and proceedings related to termination
of CCA service by an investor-owned utility. These proceedings will provide CCAs and electrical
corporations an opportunity to address potential violations through an evidentiary hearing, if needed.
The Commission requests a two year limited term position given the expectation that both expedited
complaints and investigations based on audit findings will result from the statute. Since the first audit
will not be due until 2015, the two year time frame ensures availability of the ALJ for any follow-up
investigation.
For each new complaint or investigation proceeding, the ALJ II will be responsible for:



Drafting Scoping Memo and necessary rulings (e.g. discovery, confidentiality)
Setting Schedule
Analyzing complaint or investigation, response, comments, testimony
o Researching legal questions
o Conducting evidentiary hearings
o Reviewing opening briefs and reply brief
o Preparing a decision within 180 days of date complaint filed or decision on investigation
within statutory deadlines pertaining to adjudicatory proceedings.
Tasks to be performed by Energy Division PURA IV in areas of implementation plans, rules for
allocation of generation costs to CCAs and all other enforcement related issues:










Conduct research and provide technical and policy analyses to the ALJ conducting
Commission-initiated investigations and CCA complaint proceeding(s) concerning alleged
violations of adopted code of conduct and proceeding(s) related to termination of CCA service
by an investor-owned utility
Conduct research and provide technical and policy analyses to the ALJ conducting proceedings
related to allocation of net unavoidable capacity costs using new rules, determination of benefits
for CCAs to determine the value of benefits that remain with bundled customers and reduce the
estimated net unavoidable electricity costs paid by the customers of a CCA by the value of any
benefits that remain with bundled service
Conduct research and provide technical and policy analyses to the ALJ conducting proceedings
involving termination of service
Review advice letters and prepare resolutions on advice letters filed by the utilities in these
areas
Serve as a mediator between investor owned utilities and CCAs as needed.
Respond to inquiries from prospective CCAs on the process to obtain customer specific data
and various charges that their customers will have to pay to the utility.
Provide guidance to CCAs related to service agreements and implementation plans and opt-out
rules
Prepare reports and briefings for Commissioners, administrative law judges, and management
on complex and technical regulatory issues pertaining to CCA complaints and proceedings
Perform legislatively-mandated periodic audits of investor owned utilities’ compliance with CCA
Code of Conduct
Organize and facilitate workshops or stakeholder meetings and prepare workshop reports, as
needed
-7-
Analysis of Problem
Tasks to be performed by Energy Division PURA IV on Energy Efficiency related work:
The Analyst will review and certify CCAs’ plans for third party EE administration. This work will involve
conducting complex economic, policy and/or technical analyses and research associated with CCAs’
plans for third party EE administration as summarized below:


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


Ensuring that such plans are consistent with Public Utilities Code §381 and §399.4, and that
they advance the public interest in maximizing cost-effective electricity savings. The CPUC will
be responsible for ensuring that the proposed EE plans include a process for both evaluating
projects based on cost-effectiveness criteria, and determining the specific net benefit value
based on the relevant tests (Participant, Ratepayer Impact Measure, Total Resource Cost, and
Program Administrator Cost) and avoided cost methodologies.
Accommodation of the need for broader statewide or regional programs. Inclusion of audit and
reporting requirements. The CPUC has established specific audit and reporting requirements for
the IOUs’ EE programs, as reflected in the 2006-2008 Energy Efficiency Portfolio Annual
Reporting Requirements Manual (Version 4) and reporting templates stored on the Energy
Efficiency Groupware Application (EEGA) website. The CPUC will need to review and assess
CCAs’ proposed audit and reporting requirements to ensure reporting consistency among all EE
administrators.
Inclusion of evaluation, measurement, and verification (EM&V) protocols and performance
metrics regarding achievement of the above objectives. The CPUC has adopted a detailed set
of protocols for evaluating EE program performance and measuring savings. The CPUC will
need to review CCAs’ proposed EM&V activities to ensure the usefulness of reported savings
for program and procurement planning purposes.
Respond to inquiries or otherwise provide assistance, prior to formal submission, to CCAs
seeking guidance to develop their plans for EE administration, in order to facilitate a streamlined
approval process.
Provide guidance to CCAs in developing amended plans in situations where the CPUC does not
certify originally submitted plans.
Prepare written/oral reports and briefings for Commissioners, administrative law judges, and
management on complex and technical regulatory issues pertaining to CCA administration of
energy efficiency and related Commission proceedings
Organize and facilitate workshops or stakeholder meetings and prepare workshop reports, as
needed.
The work to cover the CCAs request to being an administrator for their own energy efficiency programs
will generate one Advice Letter and resolution every two years as the CCAs request certification of their
energy efficiency programs. There will be one Advice Letter and resolution to work out the details of
Nondisclosure Agreements (NDA) between the CCA and the Investor Owned Utility. There will be one
Advice Letter or Disposition Letter each year to approve fund-shifting requests from a CCA. In addition,
there will be increased work reviewing each CCA’s report every two years with at least one workshop to
conduct mid-cycle program reviews and work out energy efficiency implementation issues.
E. Outcomes and Accountability
Approval of this request for 2 full time permanent Public Utility Regulatory Analysts and one 2-year
limited term Administrative Law Judge II will result in several important outcomes, including:
 Thorough and thoughtful review and analyses of CCA Implementation Plans, Statements of
Intent, and Service Agreements.
 Having full-time, dedicated staff will allow the Commission to proactively manage and mediate
ongoing disputes between CCAs and investor owned utilities. Effective management and
mediation will minimize the number of formal complaints for the Commission.
-8-
Analysis of Problem
 Clarification of rules as to which future costs of resources procured by the utility will have to be
paid for by CCA customers including development of metrics to determine benefits of those
resources to CCA customers.
 Effective and efficient process for reviewing CCAs’ plans for EE administration. Coordination
between CCA-administered EE programs and broader statewide and regional EE programs and
statewide consistency in evaluating the performance and cost-effectiveness of ratepayer-funded
EE programs.
Projected Outcomes (with new CCAs forming)
Workload Measure
Filings by CCAs-Energy Efficiency (EE) related
PY
CY
2
4
Filings by CCAs-issues other than EE related
Formal proceedings managed by ALJ
1
BY
2
6
1
4
8
2
F. Analysis of All Feasible Alternatives
Alternative 1: Adopt BCP Proposal
 Enables the CPUC to perform the work necessary to implement SB 790.
 Facilitates cost-effective and coordinated advancement of the State’s adopted loading order and
clean energy policies.
 Ensures equitable allocation of costs and benefits of resources the utilities are required to procure
in accordance with P. U. Code section 365.1, resource adequacy provisions of Section 380, the
renewables portfolio standard provisions of Article 16 (commencing with Section 399.11), and the
requirements for the electricity sector adopted by the State Air Resources Board pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code) and the Energy Action Plan.
Cost: $363,000.
Alternative 2: Let Limited term positions expire and Deny Request in this BCP
 The CPUC will not be able to perform the necessary work to comply with SB 790.
 The CPUC will not have the resources to process the expedited complaint proceedings in 180
days as required by SB 790.
 Without the resources to review CCAs’ plans for EE administration, statewide EE programs may
not be delivered to customers in a consistent and equitable manner.
Cost: $0
Alternative 3: Delegate review and certification responsibilities to outside consultants or utilities
 No outside contractor can enforce rules related to utility code of conduct and other rules
regarding the interaction between CCAs and utilities.
 No other entity is allowed to process formal complaints filed by the CCAs. Only CPUC
administrative law judges can handle formal proceedings.
 SB 790 does not allow the CPUC to delegate review and certification responsibilities to another
entity.
 Statewide EE programs may not be delivered to customers in a consistent and equitable
manner.
Cost: Alternative not feasible.
-9-
Analysis of Problem
Alternative 4: Redeploy staff from other areas of the CPUC.
The section of the Energy Division handling CCA related matters has a 2 year limited term Public
Utilities Regulatory Analyst handling all the work related to rules and ongoing issues between PG&E
and MCE. With a lot of the additional work in the rules area and increasing interest by local
governments in forming CCAs, Energy Division needs to assign a full time permanent position to take
on the additional work in the area of rules, rules violations, service agreement and termination of
service. The section of the Energy Division handling this task is already stretched thin among a lot of
activities and is not in a position to re-deploy staff from other areas.
 The section of the Energy Division handling CCA/EE matters has a 2-year limited term PURA
assigned to the administration of energy efficiency programs for CCAs. The Energy Efficiency
implementation, evaluation and analysis groups are fully committed to their existing
responsibilities. If staff in these groups are redirected to the administration of energy efficiency
work by CCAs, the CPUC’s ability to meet its responsibilities in administering and overseeing
cost-effective energy efficiency programs will be impaired.
 Existing staff in the ALJ Division is already fully committed to its work plan which prioritizes all of
the formal proceedings to be processed in accordance with their statutory deadlines and cannot
redirect any existing ALJ to any new complaint proceedings that may be submitted under the
expedited complaint procedure.
Incremental Cost: No resources available for redirection.
G. Implementation Plan
Upon approval of this budget change request, the CPUC will promptly start the process of filling the two
full time permanent Public Utilities Regulatory Analyst positions and the 2-year limited term ALJ
position. The CPUC will develop Job Opportunity Bulletins for these positions within 3 weeks of the
approval of this BCP and target to fill the positions within 45 days of the State Budget enactment).
H.
Supplemental Information (Check box(es) below and provide additional descriptions.)
None
I.
Facility/Capital Costs
Equipment
Recommendation
The CPUC recommends Alternative 1.
-10-
Contracts
Other