August 5, 2015 Advice Letter 3194-E
Russell G. Worden
Director, Regulatory Operations Southern California Edison Company 8631 Rush Street
Rosemead, CA 91770
Subject: SCE’s Low Carbon Fuel Standard Implementation Plan
Dear Mr. Worden:
Advice Letter 3194-E is effective July 30, 2015.
Sincerely,
Edward Randolph
Utility No./Type: U 338-E [ x ] E-Mail to: [email protected] Advice Letter No.: 3194-E Fax No.: (626) 302-4829
Date AL filed: March 18, 2015 ED Staff Contact: Adam Langton Utility Phone No.: (626) 302- 2086 For Internal Purposes Only:
Date Calendar Clerk Notified: _____/_____/_______ Date Commissioners/Advisors Notified: ___/___/___
[X] INITIAL SUSPENSION (up to 120 DAYS)
This is to notify that the above-indicated AL is suspended for up to 120 days beginning April 17, 2015 for the following reason(s) below. If the AL requires a Commission resolution and the Commission’s deliberation on the resolution prepared by Energy Division extends beyond the expiration of the initial suspension period, the advice letter will be automatically suspended for up to 180 days beyond the initial suspension period.
[ ] Section 455 Hearing is Required. A Commission resolution may be required to address the advice letter.
[ ] Advice Letter Requests a Commission Order. [ X ] Advice Letter Requires Staff Review
Expected duration of initial suspension period: 120 days.
[ ] FURTHER SUSPENSION (up to 180 DAYS beyond initial suspension period)
The AL requires a Commission resolution and the Commission’s deliberation on the resolution prepared by Energy Division has extended beyond the expiration of the initial suspension period. The advice letter is suspended for up to 180 days beyond the initial suspension period.
_____________________________________________
If you have any questions regarding this matter, please contact Adam Langton at 415.703.1812 or via e-mail at [email protected] .
cc:
Damon Franz, [email protected] Noel Crisostomo, [email protected] Maria Salinas, [email protected] Sarah Van Cleve, [email protected] Darrah Morgan, [email protected] Karyn Gansecki, [email protected] [email protected]
P.O. Box 800 8631 Rush StreetRosemead, California 91770 (626) 302-4177 Fax (626) 302-4829
PUBLIC VERSION
March 18, 2015
ADVICE 3194-E (U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION
SUBJECT: Southern California Edison Company’s Low Carbon Fuel Standard Implementation Plan
Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariffs. The revised tariffs are listed on Attachment A and are attached hereto.
I. PURPOSE
In compliance with the California Public Utilities Commission’s (CPUC’s or Commission’s) Decision (D.)14-05-021 and D.14-12-083,1 Southern California Edison Company (SCE)
respectfully submits this advice filing to: (1) establish the upfront and achievable standards for selling Low Carbon Fuel Standard (LCFS) credits;2 (2) establish a plan for returning
1 D.14-05-021 at 15-16, 25, Ordering Paragraph (OP) 2; D.14-12-083 at 52, OP 2.
2 Consistent with Public Utilities Code Section 454.5(d)(2), the “upfront and achievable
standards” for transactions “[e]liminate the need for after-the-fact reasonableness reviews of an electrical corporation’s actions in compliance with an approved procurement plan, including resulting electricity procurement contracts, practices, and related expenses. However, the commission may establish a regulatory process to verify and ensure that each contract was administered in accordance with the terms of the contract, and contract disputes that may arise are reasonably resolved.” As a result, these upfront standards, if met, will eliminate after-the-fact reasonableness reviews for LCFS credit transactions.
LCFS revenues to SCE’s customers; and (3) establish Preliminary Statement Part XX, the LCFS Revenue Balancing Account (LCFSRBA).3
II. BACKGROUND A. Statutory Framework
In 2006, the Legislature passed Assembly Bill (AB) 32, otherwise known as the Global Warming Solutions Act of 2006. AB 32 authorized the California Air Resources Board (ARB) to develop “market-based compliance mechanisms” to regulate GHG emissions.4 In
addition, the Governor issued Executive Order S-1-07, which directed state agencies to develop programs that reduce California’s greenhouse gas (GHG) emissions.
Pursuant to both, the ARB developed the LCFS regulation.5 The purpose of the “regulation
is to implement a low carbon fuel standard, which will reduce [GHG] emissions by reducing the fuel-cycle, carbon intensity of the transportation fuel pool used in California. . . .”6 The
LCFS regulation establishes annual performance standards from 2011 through 2020, measured as the average carbon intensity of fuels.7 Fuel producers and importers must
meet these standards by reducing the carbon intensity of their fuels and/or retiring credits. Entities, such as Electrical Distribution Utilities, that voluntarily opt-in to the LCFS program will earn credits for using transportation fuels with below-average levels of carbon intensity. The current iteration of the ARB regulation requires Electrical Distribution Utilities, as opt-in regulated parties, to use credit proceeds from residential charging to (1) directly benefit current electric vehicle (EV)8 customers; (2) educate the public on the benefits of EV
transportation; and (3) provide rate options that encourage off-peak charging and minimize adverse impacts to the electrical grid.9
3 The revised tariff sheets are attached hereto as Attachment A. 4 See Cal. Health & Safety Code § 38562(c)
5 See 17 C.C.R. §§ 95480 – 95490
6 Id. at § 95480 7 Id. at § 95482
8 EVs include both full function plug-in hybrid electric vehicles and battery electric vehicles, but
excludes electric bikes, electric motorcycles, electric scooters and neighborhood electric vehicles.
9 Id. at § 95484. A draft amendment is currently pending at the ARB that would clarify that the utilities may return revenue to current or future customers.
In addition, utilities may receive LCFS credits from non-residential customers that choose not to opt-in to the LCFS program as a regulated party.10
B. Proceeding Procedural History
On March 24, 2011, the CPUC initiated Rulemaking (R.)11-03-012 to, among other things, address the use of revenues the electric utilities receive from the sale of LCFS credits.11
On February 8, 2012, the assigned Administrative Law Judges (ALJs) issued a ruling requesting proposals for the use of revenues from the sale of LCFS credits. The utilities and other interested parties submitted proposals on March 30, 2012. Following the parties’ submission of proposals, the Commission held workshops.
In anticipation of the ARB’s 2011 amendments to its LCFS regulation becoming effective on November 26, 2012, on November 25, 2013, the assigned Commissioner and ALJ issued a revised scoping memo inviting the parties to submit updated proposals. The parties,
including SCE, submitted updated proposals on January 8, 2014.
On May 15, 2014, the CPUC issued the first of two decisions on LCFS credits. First, in D.14-05-021, as modified by D.14-07-003, the CPUC authorized the utilities to sell LCFS credits. D.14-05-021 directed the utilities that had already opted in to the LCFS program to file a Tier 2 advice letter containing upfront standards and plans for the sale of LCFS
credits and authorizing the sale of LCFS credits upon the advice letter’s approval.
D.14-05-021 requires the advice letter to include: (1) a description of the utilities’ proposed limits on the volume of LCFS credits to be sold at any given time, the planned timing of the sale of these credits, and any proposed limitations on the transactional length of LCFS credit sales; (2) a description of how brokers will be selected; (3) any proposals on other means of selling LCFS credits; (4) proposed credit and collateral requirements; and (5) information pertaining to the establishment of a balancing account to track LCFS revenues. Second, on December 18, 2014, the CPUC issued D.14-12-083, in which the CPUC
adopted approved methodologies by which the utilities can return revenue generated by the sale of LCFS credits to their customers. D.14-12-083 provides that the utilities may
10 Id. at § 95484(a)(6)(C.1) (“For transportation fuel supplied to a fleet of three or more EVs, a person operating a fleet (fleet operator) is eligible to be a regulated party. If the fleet operator is not the regulated party for a specific volume of fuel, or has not otherwise fully complied with the requirements of this subarticle, the Electrical Distribution Utility is eligible to opt-in as the regulated party with Executive Officer approval. For transportation fuel supplied to a fleet of less than three EVs, the Electrical Distribution Utility is eligible to be the regulated party. To receive credit for transportation fuel supplied to an EV fleet, the regulated party must include in annual compliance reporting an accounting of the number of EVs in the fleet.”)
11 The CPUC divided the proceeding into three tracks and devoted Track 2 to LCFS-related issues.
distribute revenue generated by the sale of LCFS credits to customers by annual credit or a one-time rebate. D.14-12-083 also directed the utilities to file Tier 2 advice letters setting forth their plans for implementing the decision by March 18, 2015.
The advice letter must address: (1) how SCE will calculate the number of LCFS credits generated by each customer, (2) to whom SCE will distribute revenue from the sale of the LCFS credits, (3) how SCE will identify LCFS revenue recipients, (4) how SCE will
calculate the amount of revenue to be distributed to each customer, (5) by what means and how frequently SCE will distribute revenue, (6) how SCE will identify, address, and track vehicle ownership changes, (7) how SCE will track and true-up revenues and
disbursements, (8) how SCE will market the program in a competitively neutral manner, and (9) how SCE will receive and distribute credits generated by non-residential
customers.12
In compliance with both decisions, this advice letter addresses both the upfront standards for the sale of LCFS credits and SCE’s plan for returning of revenue generated by those sales to its customers.
C. CPUC’s Substantive Direction on Upfront Standards and Plans for the Sale of LCFS Credits
In D.14-05-021, the Commission determined that because the utilities only sell and do not buy LCFS credits, the sale of LCFS credits is not analogous to the traditional procurement activity governed by Assembly Bill (AB) 57, which is codified in California Public Utilities Code (PUC) Section 454.5.13 Instead, the Commission determined that the sale of LCFS
credits should be treated as a sale of necessary or useful “utility assets” under PUC Section 851 because the sale fulfills the utilities’ obligation under PUC Sections 701.1 to “minimize the cost to society of the reliable energy services that are provided by natural gas and electricity.”14 The Commission therefore used its power under PUC Section 701 to
authorize the utilities to sell LCFS credits on behalf of their customers.
Recognizing the nascent nature of the LCFS market, the Commission also implemented safeguards to maximize the value of LCFS credits for the utilities’ customers.15 First, with
respect to the volume, timing and transactional length limits, the utilities may not borrow or use credits from anticipated sales to sell more LCFS credits than those the ARB has
provided.16 Second, the Commission limited the method of sales to competitive solicitations or bilateral transactions conducted through brokers registered with the Commodities Future 12 D.14-12-083 at p. 33, OP 2. 13 D.14-05-021 at p. 10. 14 Id. at p. 11. 15 Id. at p. 12. 16 Id. at p. 13.
Trading Commission.17 The Commission allowed the utilities, however, to propose and
justify other means of selling LCFS credits, including organized exchanges and auctions, if such mechanisms become operational.18 Third and finally, although the Commission did
not establish specific credit and collateral parameters, it expressed interest in SCE’s proposal to use the same credit and collateral requirements as those in SCE’s current AB 57 Bundled Procurement Plan for other authorized emissions products and said that it would consider that proposal in SCE’s advice letter.19
D. The CPUC’s Substantive Direction for the Return of LCFS Revenues to Customers
D.14-12-083 provides the utilities with the flexibility to “allocate LCFS credit revenue by using one or both of the following methods: (1) reducing the upfront purchase price of a PEV at the point-of-sale with a rebate, which could also be provided to existing
[plug-in-electric vehicle] PEV owners at the start of the program; (2) Reduce fuel costs for PEV drivers annually with a credit . . .”20
Regardless of the methodology selected, the utilities plans for returning revenue to
customers must be guided by the following policy objectives: (1) compliance with the ARB’s regulation, (2) encourage Alternate Fuel Vehicle (AFV) adoption, (3) equitable return to AFV drivers; (4) encourage prompt utility notification on the location of AFVs to minimize grid impacts; and (5) administrative simplicity.
The CPUC elaborated that “[t]hese objectives seek return policies that provide utilities with notification data that is (a) broadly applicable to both purchasers (of new and used
vehicles) and existing owners; and (b) timely to minimize impacts on the grid.”21
In addition, with respect to the policy objective to equitably return revenue to AFV drivers, the CPUC explained that to equitably compensate vehicle customers, credit revenues should be allocated to the drivers that generated them, i.e., existing customers.22 The
CPUC therefore refined the policy objective further to require the utilities to prioritize mechanisms that equitably return revenue by: (1) crediting customers that contributed to fuel carbon intensity reductions since the time that the utility opted into the LCFS program but have not yet received the credits’ accrued value; and (2) recognizing the societal benefits resulting from existing and future customers’ use of low carbon fuels regardless of their enrollment in TOU rates or the utility’s ability to directly meter that customers’ usage.23
17 Id. at p. 14. 18 Id. at p. 16. 19 Id. at p. 15. 20 D.14-12-083 at pp. 22, 30, OP 1. 21 Id. at pp. 23-24. 22 Id. at p. 24. 23 Id.
III. SCE’S CLEAN FUEL REWARD PROGRAM FOR RESIDENTIAL CUSTOMERS
Consistent with D.14-12-083 and its policy direction, SCE’s advice letter proposes a “Clean Fuel Reward Program” (CFRP), which will return LCFS revenue by upfront rebates to its residential EV customers. SCE’s CFRP will facilitate EV adoption, minimize grid impacts caused by EV adoption by increasing utility identification of charging locations in the service territory, achieve administrative simplicity, retain flexibility to adapt to future developments in the market, and minimize financial risk. To account for variation in the value of LCFS credits,24 SCE has made a few changes to the CFRP since it first proposed the program in
January 2014.25
A. Program Eligibility
SCE will provide rebates to both current residential EV customers who acquired vehicles and generated credits before the implementation of the CFRP, as well as to purchasers and lessees of new and used EVs.
To ensure that SCE does not pay the same household more than once for a single vehicle, SCE will only pay one rebate per household per unique vehicle, which will be identified by vehicle identification number (VIN).26 Note that if a household has multiple EVs, it may
receive multiple CFR rebates for each of those vehicles so long as each unique VIN is provided. Also, to avoid gaming by transferring title of vehicles, SCE will not provide more than three rebates for any one vehicle, tracked by VIN.
CFRP-eligible customers must reside within SCE’s service territory and the customers’ vehicle registrations must show an address that matches an active residential SCE service or customer account.
B. Incentive Structure
All residential customers who apply for the CFRP rebate – whether they had an EV before the program launch, or purchased or leased a new or used EV after the program launch – will receive the same amount of CFRP revenue.
The CFRP rebate will be available on a first come, first serve basis. SCE plans to set the rebate amount annually because more frequent adjustments to the CFRP amount may create customer confusion and present challenges for marketing.
24 The variation in value is due to significant fluctuations in the market price of LCFS credits as
described further in Section III.H.2, below.
25 Revised Proposal of Southern California Edison Company (U 338-E) on Distribution of
Revenue from the Sale of Low Carbon Fuel Standard Credits, January 8, 2014.
26 For instance, if parents gift their teenage child the family PEV for his or her 16th birthday, that
The number of available rebates will be capped to cash on hand from selling LCFS credits after deducting SCE’s expenses. If funds are exhausted, SCE will suspend the program and notify customers with pending applications that the current rebate funds have been exhausted, but that they are eligible for future distributions.
C. Program Application Process
In an effort to support administrative simplicity and low administrative costs, SCE plans to have customers apply for the CFRP rebate through a paper application process.
Customers will be able to download and print out a pdf application from SCE.com. SCE plans to work with insurance companies, dealerships and other stakeholders to make applications available to customers. SCE will also consider implementing an electronic application process if it is able to keep the costs associated with online applications sufficiently low.
As part of the application process, SCE will require customers to submit a copy of the current DMV registration for the qualifying vehicle. The address provided to the DMV for the vehicle registration must match the SCE service or customer account. If incomplete applications are received, SCE or a third-party processing agent will return incomplete applications if they are unable to reach the customers to obtain the necessary missing information.
SCE or a third-party processing agent will implement a tracking system to validate that the customer is eligible to receive a CFR rebate. First, SCE or its processing agent will use the vehicle make, model and VIN decoder software to validate the VIN the customer provided and to obtain more specific information about the vehicle to confirm its eligibility for a CFR rebate. SCE or its processing agent will also validate that the vehicle registration address matches an active SCE service or customer account and that the household and customer have not previously received a rebate for the submitted VIN.
Once SCE or its processing agent completes the validation process, the application will be queued for payment processing as soon as practicable. SCE plans to distribute the CFR rebates in the form of checks sent by U.S. mail to the addresses associated with the customer or service accounts. SCE will log the payment and the payment date in its tracking system for future validation and reporting purposes.
D. Marketing, Education, and Outreach
SCE will commence marketing, education and outreach activities for the CFRP after SCE makes its first sale of LCFS credits. As stated in D.14-12-083, IOUs must “ensure that as many alternative fuel vehicle drivers and potential buyers become aware of the LCFS program.”27 Consequently and as detailed below, SCE will utilize multiple communication
channels to engage customers and develop awareness of the CFRP in a
neutral manner. Messaging will emphasize the benefits of EV adoption including: lowered fuel costs using time-of-use (TOU) rates for EV drivers; reduced emissions of greenhouse gases and other pollutants that cause adverse health effects; and support of the integration of renewable energy resources.
1. Direct Messaging
SCE will directly market the CFRP to interested EV owners through direct mail or e-mail. SCE will conduct at least one round of such marketing in the CFRP’s first year. SCE may also include informational messaging on bills that go out to all residential SCE customers.
2. Dedicated SCE.com Webpage
SCE will develop a specific CFRP webpage on SCE.com that will provide customers with program information and the CFRP application. Such information shall include the
incentive amounts being provided for that given calendar year and status of available program funds.
3. Third Party Entities That Interact With SCE’s Existing and Prospective EV Customers
a) Vehicle Manufacturers and Dealers
SCE plans to work with the automotive industry to provide information about the CFRP. For instance, SCE will provide vehicle manufacturers and dealers with information about the CFRP and the benefits of EV ownership. Given the recent drop in LCFS credit value, 28
to maximize SCE’s CFRP rebate, SCE no longer plans to pay dealers any monetary incentive to educate customers. Instead, SCE will preserve as much of the revenue as possible to return to customers.
b) Entities Providing EV Rebate Information
SCE will seek out those entities that provide California-related EV rebate information on their websites (e.g., trade associations, state agencies and air districts). SCE will do its best to leverage these already established sites as a CFRP marketing channel to EV owners.
28 When SCE initially proposed its Clean Fuel Reward Program in January 2014, LCFS credit
prices were $51 / ton, but the average credit price for January 2015 was $25 / ton according to ARB’s public posted Monthly LCFS Credit Transfer Activity Report available at
c) Insurance Companies
SCE will educate insurance companies about SCE’s CFRP so they can pass the
information on to their eligible customers. Insurance carriers may be motivated to provide this information to engender goodwill with their insureds. Empowering insurance
companies to proactively notify their insureds about SCE’s CFRP (and perhaps other qualifying incentive programs) may help to raise customer awareness.
4. Related EV Marketing Education and Outreach Activities
SCE will also leverage existing related marketing, education and outreach activities. SCE will update its current EV Readiness online materials, which are geared to prospective EV purchasers, with information about the CFRP and a link to the CFRP-dedicated webpage.
E. Implementation Timeline
SCE will launch the CFRP to distribute the LCFS credit revenue after the CPUC approves its advice letter and the ARB delivers the 2015 LCFS credits to SCE in March 2016. To give SCE time to sell the LCFS credits and accumulate enough revenue for a sizeable CFRP rebate, SCE plans to launch the CFRP between the third quarter of 2016 and the first quarter of 2017. The table below provides SCE’s anticipated timeline for the events leading to the implementation of the CFRP.
Table 1. Anticipated Timeline for Events Leading to Clean Fuel Reward Program Implementation
Date Event
March 18, 2015 LCFS Advice Letter Filing
Third Quarter (Q3) - Fourth Quarter (Q4) 2015 CPUC Advice Letter Approval
March 16, 2016 ARB Delivers 2015 LCFS
Credits29
Q3 2015 - Q3 2016 SCE Sells LCFS Credits
Q3 2016 - Q1 2017 SCE Begins CFRP to Distribute LCFS Credit Revenue
F. Estimated LCFS Revenue and Costs
SCE’s forecast of LCFS revenue and incremental administration costs are set forth below. SCE will update its forecasts in its annual LCFS filings starting September 30, 2015.
1. Revenue
SCE estimates that it will accumulate roughly LCFS credits in 2015 contributing to a total estimated bank of LCFS credits. Assuming a LCFS credit price of $25, which is the price the ARB recently posted,30 SCE’s total banked credits have a current
book value of . SCE’s revenue forecast utilizes the ARB’s publicly posted price as a proxy for illustrative purposes. As the time to sell the LCFS credits approaches and SCE can better assess the market, SCE will utilize an internally derived confidential forecast of LCFS prices.
As detailed in the below section titled “Confidentiality” and in the Confidentiality Declaration attached hereto as Appendix B, SCE will provide the Commission and non-market
participant third parties with the confidential price and forecast upon request, assuming the non-market participant third party executes a nondisclosure agreement. SCE will not share its confidential internal LCFS position or price forecast with third party market participants that could use that information to manipulate the market by driving down the price of the LCFS credits and thus the rebate amount.
Table 2. 2015 Forecast of SCE’s LCFS Credits’ Value and Distribution
Estimated number of credits generated during 201531
Estimated total number of credits generated by 12/31/201532
Estimated value of credits (assuming $25 / credit) $ Estimated revenue generated from credit sales in 2015
Estimated balance of credits as of 12/31/2015
Estimated revenue distributed to customers $ 033
Estimated number of customers receiving rebate 0
2. Administration and Outreach Costs
SCE expects total administrative costs to be $0 in 2015 and $970,000 in 2016. SCE expects to use $154,000 of the $970,000 for outreach. SCE forecasts no administrative
30 The average credit price for January 2015 was $25 / ton according to ARB’s Monthly LCFS
Credit Transfer Activity Report available at
http://www.arb.ca.gov/fuels/lcfs/credit/20150210_jancreditreport.pdf.
31 Includes a 15 percent discount based upon ARB historical LCFS awards compared to Polk
registration data.
32 See Section H.(1) “Changes to the LCFS Regulation” for details on the risk that zero credits will
be generated in 2015.
costs in 2015 because SCE does not plan to begin any substantial34 administrative
activities until it monetizes some of its LCFS credits.35 2016 administrative costs will include
one-time upfront costs that SCE does not expect to incur in future years so SCE expects its annual administrative costs to be lower in later years.
SCE will ensure that non-participating customers do not incur LCFS program costs by assigning all LCFS costs, including incremental labor, to the LCFS balancing account.36
a) Labor
SCE forecasts $210,000 in labor cost in 2016. Labor covers the time of employees who manage the CFRP, sell LCFS credits, and compile information for the relevant reports.
(i) Program Management
SCE employees must oversee the CFRP coordinating program communications, third-party outreach, website development, reporting, and more. SCE may hire a third-party
administrator to manage the CFRP if an external party can manage the program at similar or lower costs than SCE. The cost estimates provided in this advice letter are based on program design assumptions and SCE’s estimated costs to administer the program because it has not yet solicited bids from third-parties.
(ii) LCFS Credit Sales
In order to monetize SCE’s LCFS credits, SCE must have a knowledgeable trader who can sell SCE’s LCFS credits or work with a broker to act on SCE’s behalf. In the first year that SCE is selling LCFS credits, there will be more time required for the trader to develop knowledge of the LCFS credit markets and set up the processes and strategies associated with selling LCFS credits.
(iii) LCFS Program Reporting
In order to obtain LCFS credits from the ARB, SCE must comply with reporting and record keeping requirements, which will necessitate an SCE employee to prepare the required quarterly and annual reports.
b) Non-Labor
34 Negligible on-going administrative costs occur for reporting and recordkeeping required by
ARB.
35 Waiting to incur administrative costs until after SCE monetizes LCFS credits prevents
non-participating customers from bearing any risk that the program funds will not be able to cover the program expenses.
36 D.14-12-083 requires the investor-owned utilities to ensure that non-participating customers do
Non-labor expenses include upfront expenses and ongoing administrative expenses. For 2016, SCE forecasts these costs to be $760,000. Upfront expenses that must occur before program launch include:
development of a dedicated CFRP webpage;
development of a tracking and reporting system for application and payment processing; and
VIN decoder software to confirm vehicle qualification. On-going expenses include:
marketing, education and outreach, such as development of collateral materials and external communications;
developing and maintaining dealer, vehicle manufacturer, insurance industry relationships to expand customer awareness of the program;
maintaining the webpage;
processing applications and payments; and
maintaining and managing the tracking system and database.
G. Methodology for Setting the Rebate Amount
In determining the appropriate annual rebate amount, SCE is guided by the policy goals of incenting adoption, minimizing grid impacts and maintaining the solvency of the CFRP. SCE reserves the right to enhance the program with increased CFRP amounts to customers based upon future credit revenue and program objectives.
The primary goal of the CFRP and of one-time time-of-purchase incentives in general is to incent new vehicle adoption, which will reduce GHG emissions for the ten or fifteen year life of the EV. As such, the CFRP rebate amount may be larger in future program years for new EV purchases/leases than for purchases/leases made before the program launch. Another goal of the program is to minimize the impact to the grid of EV charging. The CFRP can help SCE identify the location of EV customers in its territory, assure that their service is properly sized, and educate them about charging off-peak and EV/TOU rates, such as SCE’s new Schedule TOU-D, which was designed with EVs in mind.
To preserve the solvency of the CFRP, the rebate will be based on a conservative estimate of EV adoption, rate of customer participation, and future LCFS credit price. The rebate fund will never exceed the revenue generated from the previous cycles and will be determined based on keeping the program running for several cycles.
SCE will defer setting a rebate amount until the CFRP launches so that the amount is based on the best and most current information available. SCE will not update the CFRP rebate amount more than once per year in order to minimize customer confusion.
H. Uncertainties Affecting the CFRP
Given that the LCFS program is still relatively new, there are a number of significant uncertainties that may affect the CFRP and the amount that SCE can return to its
customers. In light of these uncertainties and to avoid risk to non-participating customers, SCE will not distribute LCFS revenue until it sells its LCFS credits and has the revenue in its balancing account.
1. Changes to the ARB LCFS Regulation
On February 19, 2015, the ARB re-adopted the LCFS regulation with changes that add risks and uncertainty for the utilities and their customers.
First, the current regulation does not allow SCE to estimate residential charging in kWh after Dec 31, 2014. The proposed draft regulation, which will allow the utilities to continue to estimate residential charging in kWh, will not go into effect until January 1, 2016. As a result, SCE will not receive any estimated37 LCFS credits for 2015 unless and until the
regulation is modified at the second ARB vote to re-adopt the LCFS regulation, which is expected in Summer 2015.
Second, the ARB’s Executive Officer must approve the utilities’ methodologies for
estimating residential charging kWh each year. The timing and procedure for obtaining that approval could vary. It is possible that the ARB will not approve SCE’s estimation
methodology resulting in a change to the number of LCFS credits that SCE expects to receive from the ARB or that the ARB will change the estimation methodology.
Third, additional changes to ARB regulation can occur before ARB’s re-adoption vote in summer 2015, including changes to the estimation methodology, which could increase or decrease the number of credits SCE receives.
2. Variables Affecting the Rebate Amount
The CFRP rebate amount provided to customers will be dependent on several variables out of SCE’s control. These variables include LCFS credit value, LCFS market liquidity, and level of customer participation.
37 Only about 2 percent of SCE’s residential credits are based on separate kWh metering rather
a) LCFS Credit Value
Over the past three years, the average annual LCFS trading price has fluctuated from $17 to $55 per credit. As discussed above, as of January 2015, according to the ARB, credit prices were $25 per credit. If credit prices increase, revenue from sales will increase and customers will receive a larger rebate. Conversely, a decline in credit prices will restrict the amount of revenue available to return to customers.
b) LCFS Market Liquidity
The amount of revenue that can be generated from the sale of LCFS credits depends on the liquidity of the LCFS credit market. Once the Investor-Owned Utilities (IOUs) are authorized to sell LCFS credits, the resulting large volume of available credits may reduce their value.
c) Level of Customer Participation
The projected level of customer participation will inform the amount of revenue that SCE is able to return to each participating customer. SCE plans to adjust this estimate using actual participation to inform future distribution. As a result, if SCE overestimates participation, there will be additional funds available for distribution in the next cycle. If SCE underestimates such participation, some customers will not be served and will have to wait for distribution in the following cycle.
IV. NON-RESIDENTIAL CUSTOMERS
The CFRP is for SCE’s residential customers. Currently, SCE does not collect LCFS credits on behalf of any of its non-residential customers and therefore does not have a CFRP for non-residential customers. However, SCE and the Los Angeles Air Force Base would like to conduct a pilot to return LCFS revenue to the Los Angeles Air Force Base as part of its existing vehicle-to-grid pilot.
The LCFS regulation, 17 California Code of Regulation Section 95484(a)(6)(C.1), states that “[f]or transportation fuel supplied to a fleet of three or more EVs, a person operating a fleet (fleet operator) is eligible to be a regulated party. If the fleet operator is not the regulated party for a specific volume of fuel, or has not otherwise fully complied with the requirements of this subarticle, the Electrical Distribution Utility is eligible to opt-in as the regulated party with Executive Officer approval. For transportation fuel supplied to a fleet of less than three EVs, the Electrical Distribution Utility is eligible to be the regulated party. To receive credit for transportation fuel supplied to an EV fleet, the regulated party must include in annual compliance reporting an accounting of the number of EVs in the fleet.” In other words, the ARB LCFS regulation, permits utilities to opt in to receive LCFS credits if their non-residential customers choose not to opt-in to the LCFS program as regulated entities. Under such circumstances, SCE, as the new holder of the LCFS credits the
non-residential customer generated, may sell the credits, and return the revenues, less SCE’s administrative expenses, to the non-residential customer.
SCE therefore requests that the Commission approve SCE engaging in the proposed pilot by opting in for the Los Angeles Air Force Base.
V. SCE’S UPFRONT STANDARDS FOR THE SALE OF LCFS CREDITS
A. Volume, Timing and Transactional Limits
SCE will not sell more credits than have been issued to SCE by the ARB. SCE may sell LCFS credits at any time after they are credited by the ARB to SCE’s Credit Bank & Transfer System account. SCE will sell at a frequency it determines to be prudent and beneficial for SCE customers. SCE will not purchase LCFS credits. Neither the ARB’s LCFS program nor D.14.05-021 restricts the length of LCFS credit sale transactions,38 and
SCE is not proposing any limits on transaction lengths.
B. Procurement Methods for LCFS Credits
SCE considers several factors to determine the most effective method for a given
procurement objective. These factors include, but are not limited to, liquidity of the product and other market dynamics, the number of counterparties transacting in the product,
quantities of LCFS credits to be sold by SCE, and administrative/transaction costs. These factors will change over time, especially given the infancy of the LCFS credit market; thus, SCE may transact for the same product at various times using different contracting
methods.
SCE plans to use the following methods for transacting LCFS credit sales: (1) Brokers; (2) Competitive solicitations; (3) Exchanges; and (4) Auctions.
The first two methods have already been authorized by the Commission in D.14-05-021 for the use of LCFS credit sales. D.14-05-021 allows SCE to propose and justify other means of selling LCFS credits, including organized exchanges and auctions, if such mechanisms become operational.39 Exchanges and auctions were previously approved by the
Commission for transacting in other electricity-related products.40 SCE now seeks authority
to include these transactional methods for the use of LCFS credit sales.
38 Id. at Attachment A. 39 Id. at 16.
40 See, e.g., D.12-04-046 at 53, 76 (OP 8(h))(authorizing auctions and exchanges for transacting
C. Authorized Transactional Methods For Procuring LCFS Credits 1. Brokers
In D.14-05-021, the Commission authorized SCE to sell LCFS credits through bilateral transactions presented by a broker registered with the Commodity Futures Trading Commission (“CFTC”).41 Brokers provide a forum for market participants to trade anonymously with one another. Voice brokers announce bid and ask prices, but not counterparty names, to market participants and match up buyers and sellers based on price. Electronic brokers perform the same function electronically. Brokers, therefore, facilitate trading by creating price transparency and liquidity in the market. As such, the price that brokers provide is known and available to any interested market participant and representative of the market at the time of the transaction. Unlike exchanges (described below), brokers do not take title to the product being transacted and, therefore, do not provide credit support for them. Once a broker matches up market participants, their identities are revealed to each other, but not to the market. The market participants must either be enabled to transact (for example, through a master agreement), establish new agreements, or clear the transaction through an exchange. For providing these matching services, brokers charge each party a fee. These fees are small relative to the nominal value of the transactions.
2. Selections of Brokers
In selecting the broker through which SCE will transact, SCE will ensure that the broker is registered with the CFTC. SCE already uses brokers extensively in procuring electric, natural gas, and other electricity related products, therefore, no new processes relating to brokers are required.
3. Competitive Solicitations
D.14-05-021, authorized SCE to sell LCFS credits through competitive solicitations. Competitive solicitations (sometimes called Requests for Proposals (“RFPs”)) can provide liquidity in a limited market.
D. Additional Proposed Transactional Methods 1. Exchanges
An exchange is a central marketplace with established rules and regulations where buyers and sellers meet to trade standardized products at prices that are both visible and
representative (i.e., the price is known and available to any interested market participant and the posted price and quantity are determinative of the final transaction costs).
Exchanges differ from brokers in that exchanges take title to the product being transacted,
such that the exchange becomes the counterparty for both the buyer and the seller. While no exchange-traded product currently exists for LCFS credits, having the standing authority to transact over an exchange would have two key benefits should such a product develop. First, the identity of the counterparties are not revealed, thus providing anonymity for those parties that might wish to remain anonymous.42 Second, because of an exchange’s
structure and margining rules, credit risk would be reduced substantially relative to transacting with a counterparty in the Over-The-Counter markets. Given that exchanges provide unique benefits in terms of price transparency, anonymity, and credit, it would likely become an attractive transaction mechanism should an exchange-traded product develop. In order to avoid the potential for lengthy delays in SCE’s ability to utilize exchanges, SCE requests the Commission’s authority to utilize exchanges for LCFS credit sales though this Advice Letter.
An exchange may also permit participants to “clear” certain conforming transactions that were not executed through the exchange initially. In this process, the parties to an Over-The-Counter transaction agree to submit the transaction to the exchange. For a fee, the exchange (e.g., New York Mercantile Exchange (“NYMEX”) via NYMEX ClearPort or Intercontinental Exchange (“ICE”) via ICE Clear) agrees to take title to the transaction and assumes responsibility for protecting both the buyer and seller from financial loss.
To access both NYMEX and ICE, SCE and other market participants use intermediaries called clearing firms. A clearing firm is a company approved to clear trades through the exchange, and is responsible for the financial commitments of its customers that clear through the firm. Clearing firms charge a fee for performing the clearing function. These fees are small relative to the nominal value of the transactions. If given the authority to utilize exchanges to transact in LCFS credits, SCE will select a clearing firm on a transaction-by-transaction basis.
a) Selections of Exchanges
The Commission has already approved two exchanges under SCE’s Assembly Bill (AB) 57 Bundled Procurement Plan for the transactions to be deemed reasonable prior to contract execution. SCE suggests that the Commission approve NYMEX and ICE for LCFS credit transactions. If SCE wants to add or use other exchanges, it will obtain prior Energy Division approval by filing a Tier 2 Advice Letter.
2. Government Sanctioned Auctions or Markets
If a government-run or government-sanctioned auction or market (e.g., the ARB’s Clearance Market) develops for LCFS credits, SCE requests the Commission authorize
42 Market concerns relating to the unwillingness of certain regulated entities from transacting with
certain parties led the ARB to amend its LCFS regulation to allow for “blind transactions.” See Cal. Code of Reg. tit. 17, § 95488(c)(3). Transactional anonymity in the LCFS market remains a concern and allowing brokers and exchanges this ability would be beneficial in this regard.
SCE to use these mechanisms to transact LCFS credits. SCE is currently authorized to use the United States Environmental Protection Agency’s annual auction to sell SO2
allowances and the ARB’s quarterly greenhouse gas cap-and-trade auction to buy and sell cap-and-trade allowances. A government-run or government-sanctioned auction or market would provide clear price transparency.
E. Credit and Collateral Requirements
Credit risk is the risk that a counterparty to a transaction may be unable or unwilling to meet its payment or performance obligations under the contract. For protection against an
economic loss as a result of a counterparty’s failure to perform, SCE generally requires counterparties to provide collateral for the benefit of SCE whenever the estimated loss SCE would face for a counterparty’s non-performance (i.e., SCE’s exposure) exceeds a
predetermined amount.
SCE proposes to establish its credit and collateral requirements for the sale of LCFS credits based on the upfront and achievable standards set forth in its current AB 57
Bundled Procurement Plan for other authorized emissions products.43 SCE’s credit policy
and risk mitigation measures enable it to deal flexibly with various types of credit and counterparty risks when selling or procuring energy products.
SCE requires that counterparties post collateral (either cash or a letter of credit) for SCE’s exposure above an unsecured credit line, if any. Only investment grade-rated counter parties are eligible for an unsecured credit line. Alternatively, a counterparty may be eligible for an unsecured credit line by providing a Guaranty from an investment grade-rated corporate parent. SCE will not accept a Guaranty from third parties that are not affiliated with the counterparty.
Transactional methods for LCFS credit sales may include competitive solicitations, brokers, exchanges, and auctions. To facilitate transactions under these methods, SCE may enter into enabling agreements with counterparties. These enabling agreements may include extension of unsecured credit to counter parties with investment grade credit ratings, in compliance with limits authorized under SCE’s Long Term Procurement Plan. Appropriate enabling agreements are usually based on standard forms provided by the Edison Electric institute (“EEI”), the Western Systems Power Pool (“WSPP”), the North American Energy Standards Board (“NAESB”), or the International Swaps and Derivatives Association (“ISDA”). These agreements are typically modified with contract terms mutually agreed to by both parties to the enabling agreement. In addition, stand-alone agreements may be negotiated for non-liquid products, such as emissions and transmission-related
transactions.
Counterparties should review in detail the terms of any proposed agreement that addresses SCE’s credit and collateral requirements. SCE reserves the right to disqualify from any solicitation those counter parties that are unwilling or unable to meet its credit requirements and may, at its sole discretion, consider alternative or supplementary strategies to mitigate its credit exposure.
F. Reporting of LCFS Credit Sales
Consistent with D.14-05-021, SCE will report LCFS credit sales to its Procurement Review Group on a quarterly basis. SCE will also file a confidential report with the Energy Division Director by April 30 of each year containing information about LCFS credit sales for the prior year, concurrent with the Annual LCFS Compliance Report that regulated parties must submit to the ARB, demonstrating compliance with the standards set forth in this Advice Letter.
VI. ESTABLISHMENT OF A BALANCING ACCOUNT
In accordance with D.14-05-021,44 SCE herein establishes Preliminary Statement Part XX,
LCFSRBA, to record revenues received from the sale of its LCFS credits. The LCFSRBA will also track customer outreach and administrative costs related to the LCFS program. The difference between the amount of LCFS credit revenues actually returned to customers or used for program expenses and the actual amount of LCFS credit revenues SCE
receives through the adopted transactional methods will be recorded to the LCFSRBA. The Preliminary Statement Part XX is attached hereto as Attachment A.
No cost information is required for this advice filing.
This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule.
VII. CONFIDENTIALITY
In accordance with Decision (D.)91-05-007, D.06-06-066, which adopted the IOU-proposed matrix, D.08-04-023, D.11-07-028, General Order (GO) 96-B, GO 66-C, and California Public Utilities Code Section 454.5(g), which protects the confidentiality of market sensitive information, SCE requests confidential treatment of the redacted information in Section III.F.1 of this Advice Letter.
The confidential material in this Advice Letter will be made available to non-market participants in accordance with and upon execution of SCE’s Proposed Non-Disclosure Agreement. Parties wishing to obtain access to the confidential material of this Advice
Letter may contact Rebecca Meiers-De Pastino in SCE’s Law Department at [email protected] to obtain a non-disclosure agreement.
A Confidentiality Declaration describing the information in this Advice Letter for which SCE requests confidential treatment, the length of time it should remain confidential, and the justification for protecting the confidentiality of the information is provided in Public Appendix B. In compliance with GO-96B, a Proposed Protective Order is attached as Appendix C.
VIII. TIER DESIGNATION
Pursuant to D.14-05-021 and D.14-12-083,45 this AL is submitted with a Tier 2 designation.
IX. EFFECTIVE DATE
This advice filing will become effective on, April 17, 2015, the 30th calendar day after the
date filed.
X. SAFETY CONCERNS
There are no anticipated safety impacts related to the subject matter of this advice letter.
XI. NOTICE
Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be mailed to:
CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue
San Francisco, California 94102 E-mail: [email protected]
Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above).
In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:
Russell Worden
Managing Director, State Regulatory Operations Southern California Edison Company
8631 Rush Street
Rosemead, California 91770 Facsimile: (626) 302-4829
E-mail: [email protected] Michael R. Hoover
Director, State Regulatory Affairs c/o Karyn Gansecki
Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544
E-mail: [email protected] With a copy to:
Rebecca Meiers-De Pastino Attorney
Southern California Edison Company 2244 Walnut Grove Avenue, 3rd Floor
Rosemead, CA 91770 Facsimile: (626) 302-6962
E-mail: [email protected]
There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously. In accordance with General Rule 4 of General Order (GO) 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B and
R.11-03-012 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to [email protected] or at (626) 302-4039. For changes to all other service lists, please contact the Commission’s Process Office at (415) 703-2021 or by electronic mail at [email protected].
Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE’s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE’s web site at
For questions, please contact Sarah Van Cleve at (626) 302-3255 or by electronic mail at: [email protected]
Southern California Edison Company
/s/ Russell Worden
Russell Worden RGW:svc:jm
MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)
Company name/CPUC Utility No.: Southern California Edison Company (U 338-E)
Utility type: Contact Person: Darrah Morgan
ELC GAS Phone #: (626) 302-2086
PLC HEAT WATER E-mail: [email protected]
E-mail Disposition Notice to: [email protected]
EXPLANATION OF UTILITY TYPE
ELC = Electric GAS = Gas
PLC = Pipeline HEAT = Heat WATER = Water
(Date Filed/ Received Stamp by CPUC)
Advice Letter (AL) #: 3194-E Tier Designation: 2
Subject of AL: Southern California Edison Company’s Low Carbon Fuel Standard Implementation Plan
Keywords (choose from CPUC listing): Compliance
AL filing type: Monthly Quarterly Annual One-Time Other
If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decisions 14-05-021 and 14-12-083
Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL: Confidential treatment requested? Yes No
If yes, specification of confidential information:
Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information:
Resolution Required? Yes No
Requested effective date: 4/17/15 No. of tariff sheets: -4-
Estimated system annual revenue effect: (%): Estimated system average rate effect (%):
When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting).
Tariff schedules affected: Preliminary Statement Part XX and Table of Contents
Service affected and changes proposed1:
Pending advice letters that revise the same tariff sheets: None
CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue
San Francisco, California 94102
E-mail: [email protected]
Russell G. Worden
Managing Director, State Regulatory Operations Southern California Edison Company
8631 Rush Street
Rosemead, California 91770 Facsimile: (626) 302-4829
E-mail: [email protected]
Michael R. Hoover
Director, State Regulatory Affairs c/o Karyn Gansecki
Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544
1
Original 56447-E Preliminary Statement Part XX Original 56448-E Preliminary Statement Part XX
Revised 56449-E Table of Contents Revised 56374-E
PRELIMINARY STATEMENT Sheet 1
(Continued)
(To be inserted by utility) Issued by (To be inserted by Cal. PUC)
Advice 3194-E R.O. Nichols Date Filed Mar 18, 2015
Decision 14-05-021; 14-12-083 Senior Vice President Effective Jul 30, 2015
1C11 Resolution
XX. Low Carbon Fuel Standard (LCFS) Revenue Balancing Account (LCFSRBA)
1. Purpose
The purpose of the Low Carbon Fuel Standard (LCFS) Revenue Balancing Account (LCFSRBA) is to record the revenue from the sale of LCFS credits and set forth the methodology for the amount of LCFS credit revenue to be returned to elgible customers pursuant to Decisions (D.) 14-05-021, 14-07-003 and 14-12-083. The LCFSRBA will record the difference between the actual amount of LCFS credit revenue SCE receives through Commission-approved transactions and the amount of LCFS credit revenue actually returned to customers..
2. Definitions
a. LCFS Revenues:
The total amount of LCFS revenues that are available for return to eligible customers is based on revenue earned through each sale transaction. The utilities, subject to CPUC and California Air Resources Board (CARB) jurisdiction, must sell their credits to the market with the proceeds to be used for the benefit of specified customers.
b. Interest Rate:
The Interest Rate shall be one-twelfth of the Federal Reserve three-month Commercial Paper Rate – Non-Financial, from Federal Reserve Statistical Release H.15 (expressed as an annual rate). If in any month a non-financial Rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate – Financial.
3. Forecast LCFS Credit Revenue Allocation Methodology
Per Commission D.14-12-083, SCE shall allocate LCFS credit revenue to plug-in electric vehicle (PEV) customers by reducing the purchase cost of a PEV or by providing the revenue as a credit annually. SCE may return all LCFS revenue through one of these options or divide the return of LCFS revenue between each of these options. SCE may not return LCFS revenue by reducing the volumetric rate levied on the electricity used to re-charge PEVs at residential locations.
PRELIMINARY STATEMENT Sheet 2
(Continued)
(To be inserted by utility) Issued by (To be inserted by Cal. PUC)
Advice 3194-E R.O. Nichols Date Filed Mar 18, 2015
Decision 14-05-021; 14-12-083 Senior Vice President Effective Jul 30, 2015
2C11 Resolution
XX. Low Carbon Fuel Standard (LCFS) Revenue Balancing Account (LCFSRBA)
4. Operation of the LCFSRBA
On a monthly basis, entries to the LCFSRBA shall be determined as follows:
a. A credit entry equal to the amount of actual LCFS Revenues received from the sale of LCFS credits;
b. A debit entry equal to recorded LCFS-related administrative costs;
c. A debit entry equal to recorded LCFS-related outreach expenses; and
d. A debit entry equal to actual LCFS revenues returned to customers pursuant D.14-12-083.
The sum of (a) through (d) equals the activity recorded in the LCFSRBA.
Interest shall accrue monthly to the LCFSRBA by applying the Interest Rate to the average of the beginning and ending monthly LCFSRBA balances.
5. Review Procedures
Pursuant to D.14-12-083, SCE will file a report with the Commission’s Energy Division Director by April 30 of each year containing information about LCFS credit sales for the prior year, concurrent with the Annual LCFS Compliance Report that regulated parties must submit to the CARB. Pursuant to D.14-12-083, SCE will file a Tier 2 Advice Letter containing the annual forecast of the LCFS revenues to be received from the sale of LCFS credits in the following year, as well as balancing account true-ups, by September 30 of each year.
TABLE OF CONTENTS Sheet 1
(Continued)
(To be inserted by utility) Issued by (To be inserted by Cal. PUC)
Advice 3194-E R.O. Nichols Date Filed Mar 18, 2015
Decision 14-05-021; 14-12-083 Senior Vice President Effective Jul 30, 2015
1H9 Resolution
Cal. P.U.C. Sheet No.
TITLE PAGE ... 11431-E TABLE OF CONTENTS - RATE SCHEDULES .... 56449-56681-56450-57019-57020-57021-57022-E ... 57023-56932-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ... 56932-E TABLE OF CONTENTS - RULES ... 56609-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 53919-E TABLE OF CONTENTS - SAMPLE FORMS.. ... 53919-56666-55739-57145-56709-56554-E
... 56106-56542-56543-E
PRELIMINARY STATEMENT:
A. Territory Served ... 22909-E B. Description of Service ... 22909-E C. Procedure to Obtain Service ... 22909-E D. Establishment of Credit and Deposits ... 22909-E E. General ... 45178-45179-45180-53818-45182-E F. Symbols ... 45182-E G. Gross Revenue Sharing Mechanism ... 26584-26585-26586-26587-27195-27196-54092-E ... 51717-53819-27200-27201-E H. Baseline Service ... 52027-52028-52029-52030-52031-E I. Not In Use ... -E J. Not In Use ... -E K. Nuclear Decommissioning Adjustment Mechanism ... 36582-47710-E L. Purchase Agreement Administrative Costs Balancing Account ... 55207-51922-55208-E M. Income Tax Component of Contributions ... 56077-27632-E N. Memorandum Accounts .... 21344-56089-56393-55886-49492-56090-45585-45586-53821-E ... 50418-42841-42842-44948-44949-44950-44951-44952-44953-42849-42850-42851-E ... 41717-47876-55623-42855-42856-44341-45252-52033-50419-55048-42862-42863-E ... 42864-53822-53823-51235-45920-51236-42870-50209-42872-42873-50421-46539-E ... 42876-42877-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ... 53321-53322-47098-52551-52552-49928-56235-56236-56237-55144-55145-44029-E ... 53016-51242-51243-51163-51164-51165-51166-51167-51168-51169-51170-51171-E ... 51244-55806-56393-56394-56395-56396-56397-56398-56399-E O. California Alternate Rates for Energy (CARE) Adjustment Clause ... 34705-41902-E ... 36472-38847-56788-56789-E P. Optional Pricing Adjustment Clause (OPAC) ... 27670-27671-27673-27674-E
TABLE OF CONTENTS Sheet 3
(Continued)
(Continued)
(To be inserted by utility) Issued by (To be inserted by Cal. PUC)
Advice 3194-E R.O. Nichols Date Filed Mar 18, 2015
Decision 14-05-021; 14-12-083 Senior Vice President Effective Jul 30, 2015
3H9 Resolution
Cal. P.U.C. Sheet No. PRELIMINARY STATEMENT: (Continued)
RR. New System Generation Balancing Account ... 55391-55392-55393-55394-E SS. Songs 2&3 Steam Generator Removal And Disposal Balancing Account ... 45404-53305-E ... 53306-45407-E TT. SONGS Cost of Financing Balancing Account ... 56188-E UU. Solar PV Program Balancing Account ... 53328-51259-E VV. Medical Programs Balancing Account ... 53329-51261-44979-E WW. Community Choice Aggregation Cost Responsibility ... Surcharge Tracking Account ... 37950-E XX. Low Carbon Fuel Standard Revenue Balancing Account ... 56447-56448-E YY. Base Revenue Requirement Balancing Account ... 55395-55396-54112-51724-E ... 51725-51726-51727-55215-54441-56189-56190-53033-E ZZ. Energy Resource Recovery Account ... 51729-51270-51271-51730-56256-56257-56258-E ... 55626-55219-56411-55221-56259-55223-E AAA. Post Test Year Ratemaking Mechanism. ... 55627-51281-51282-E BBB. Not In Use ... -E CCC. Cost of Capital Mechanism ... 53289-53290-E DDD. 2010-2012 On Bill Financing Balancing Account ... 55859-E EEE Not in Use ... -E FFF Electric Program Investment Charge Balancing Account-California Energy Commission ... ... 50176-50177-E GGG Electric Program Investment Charge Balancing Account-Southern California Edison ... ... 50178-50179-E HHH Electric Program Investment Charge Balancing Account-California Public Utilities Commission
... 50180-E (T)
Appendix B
Appendix C
1 Southern California Edison Company’s Low Carbon Fuel Standard Implementation Plan
) ) )
Advice 3194-E
PROPOSED PROTECTIVE ORDER
1. Scope. This Protective Order shall govern access to and the use of Protected Materials, produced by, or on behalf of, any Disclosing Party (as defined in Paragraph 2 below) in this proceeding.
2. Definitions.
In addition to the terms defined and capitalized in other sections of this Protective Order, the following terms are defined for the purposes of this Protective Order:
A. For purposes of this Protective Order, the term “Protected Materials” means: (i) market sensitive or other confidential and/or proprietary information as determined by the Disclosing Party in accordance with the provisions of Decision (“D.”) 06-06-066 and subsequent decisions, General Order 66-C, Public Utilities Code section 454.5(g), or any other right of confidentiality provided by law; or (ii) any other materials that are made subject to this Protective Order by the Assigned Administrative Law Judge (“Assigned ALJ”), Law and Motion Administrative Law Judge (“Law and Motion ALJ”), Assigned Commissioner, the California Public Utilities Commission (“Commission”), or any court or other body having appropriate authority. Protected Materials also include memoranda, handwritten notes, spreadsheets, computer files and reports, and any other form of information (including information in electronic form) that copies, discloses, incorporates, includes or compiles other Protected Materials or from which such materials may be derived (except that any derivative materials
2
federal agency, or in any state or federal court; or (ii) any information that is public knowledge, or which becomes public knowledge, other than through disclosure in violation of this Protective Order or any other nondisclosure agreement or protective order.
B. The term “redacted” refers to situations in which Protected Material in a document, whether the document is in paper or electronic form, have been covered, blocked out, or removed.
C. The term “Disclosing Party” means a party who initially discloses any specified Protected Material in this proceeding.
D. The term “Requesting Party” means any party that is requesting receipt of Protected Material from a Disclosing Party.
E. The term “Party” refers to the Requesting Party or the Disclosing Party and the term “Parties” refers to both the Requesting Party and the Disclosing Party.
F. The term “Market Participant” refers to a Requesting Party that hasthe ability and potential to materially affect the price paid or received for Low Carbon Fuel Standard (CLFS) credits if in possession of information regarding a utilities’ LCFS position and internally derived LCFS credit price forecast, including, but not necessarily limited to:
1) A person or entity, or an employee of an entity, that is a regulated entity that supplies transportation fuel under the California Low Carbon Fuel Standard regulation, title 17, California Code of Regulations (CCR), sections 95480 through 95490; subject to the limitations in 3) below.
2) A trade association or similar organization, or an employee of such organization,
a) whose primary focus in proceedings at the Commission is to advocate for the persons, entities or employees defined in (1);
3
c) formed for the purpose of obtaining Protected Materials; or d) controlled or primarily funded by the persons, entities, or
employees defined in (1).
G. The term “Non-Market Participant” refers to a Requesting Party that does not meet the definition of Market Participant.
H. “Reviewing Representatives” are limited to person(s) designated in accordance with Paragraph 5 who meet the following criteria:
1) Reviewing Representatives may not be a Market Participant or an employee of a Market Participant.
2) If the Market Participant or Non-Market Participant chooses to retain outside attorneys, consultants, or experts in the same law firm or consulting firm to provide advice in connection with marketing activities, then the attorney, consultant, or expert serving as a Reviewing Representative must be separated by an ethics wall
consistent with the requirements in D.11-07-028, as that decision may be subsequently modified or changed by the Commission, from those in the firm who are involved in the LCFS credit market.
3) Reviewing Representatives shall use Protected Materials only for the purpose of participating in the Commission proceeding in which they received the information.
4) Reviewing Representatives are permitted to participate in regulatory proceedings on behalf of Market Participants and Non-Market Participants.
5) All Reviewing Representatives are required to execute the
Nondisclosure Certificate attached to this Protective Order and are bound by the terms of this Protective Order.
I. The term “Authorized Reviewers” refers to: (1) a Requesting Party that is a Non-Market Participant; or (2) a Reviewing Representative of a Requesting Party. A
4
J. The term “Nondisclosure Certificate” refers to the Nondisclosure Certificate attached as Appendix A.
3. Designation, Filing, and Service of Protected Materials.
When filing or providing in discovery any documents or items containing Protected Materials, a party shall physically mark such documents (or in the case of non-documentary materials such as computer diskettes, on each item) as “PROTECTED MATERIALS SUBJECT TO PROTECTIVE ORDER,” or with words of similar import as long as one or more of the terms “Protected Materials” or “Protective Order” is included in the designation to indicate that the materials in question are Protected Materials. All materials so designated shall be treated as Protected Materials unless and until: (a) the designation is withdrawn pursuant to Paragraph 14 hereof; (b) an Assigned ALJ, Law and Motion ALJ, Assigned Commissioner, or the Commission makes a determination that: (i) the document does not contain Protected Materials or does not warrant confidential treatment or (ii) denies a motion to file the document under seal; or (c) the document or information becomes public knowledge, other than through disclosure in violation of this Protective Order or any other nondisclosure agreement or protective order.
All documents containing Protected Materials that are tendered for filing with the Commission shall be placed in sealed envelopes or otherwise appropriately protected and shall be tendered with a motion to file the document under seal pursuant to Rule 11.4 of the
Commission’s Rules of Practice and Procedure. All documents containing Protected Materials that are served on parties in a proceeding shall be placed in sealed envelopes or otherwise appropriately protected and shall be endorsed to the effect that they are served under seal pursuant to this Protective Order. Such documents shall only be served upon Authorized
