CPUC Public Agenda 3277Thursday, July 14, 2011, 9:00 a.m.505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey

Timothy Alan Simon Michel Peter Florio

Catherine J.K. SandovalMark J. Ferron

www.cpuc.ca.gov

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 9:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment:Item: NoneAll items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 2 minutes to address the Commission.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 9:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment:Item: NoneAll items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 1 minute to address the Commission.

• A bell will ring when time has expired.

•The following items are NOT subject to Public Comment:Item: NoneAll items on the Closed Session Agenda

Agenda Changes• Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting.

• Items on Today’s Consent Agenda are: 1, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, 21, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43 & 44

• Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting.Items: 51, 53, 54 & 57 from the Regular Agenda have been added to the Consent Agenda.

• Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Item: None have been moved to the Regular Agenda.

• Items: 2 & 55 have been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 7/28/11: 3, 4, 6, 14, 20, 24, 48, 56 & 58

Held to 8/18/11: 5, 49 & 52

Regular Agenda

• Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote.

• For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed.

• The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

Regular Agenda – Energy OrdersItem #45 [9699] Decision Modifying Decision 06-12-030 and Decision 08-04-023 Regarding Conditions of Access to Market Sensitive Information

R05-06-040 Order Instituting Rulemaking to implement Senate Bill No. 1488 (2004 Cal. Stats., Ch. 690 (Sept. 22, 2004)) relating to confidentiality of information.

Quasi-Legislative Comr. Peevey/ ALJ Yacknin----------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Affirms the previously-adopted procedure for providing market participants with access to market sensitive information through reviewing representatives.

• Modifies Decision (D) 06-12-030 to (1) allow an employee of an outside consulting firm that is a market participant to serve as reviewing representative, so long as the firm imposes an ethical wall between the reviewing representative and the firm’s employees involved in energy marketing activity; (2) eliminate threshold of participation in the natural gas market as a test of market participant status, and (3) eliminate prohibition on simultaneous representation of market and non-market participants by reviewing representatives.

• Modifies D08-04-023 to convert model protective order to model nondisclosure agreement.

• Closes the proceeding.

ESTIMATED COST:

• None.

Regular Agenda – Energy Orders

Item #45a [10304] ALTERNATE TO ITEM 9699------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Alternate Proposed Decision clarifies conditions of access to market sensitive information by stating that all market participants parties can participate in Commission proceedings through the use of reviewing representatives. Reviewing representatives may not be employees of a market participant enterprise, but may employ outside representatives such as attorneys, consultants and experts, who abide by the Commission's confidentiality requirements.

ESTIMATED COST:

• None.

Regular Agenda – Energy Orders

Item #46 [10233] Phase 2 Establishing Policies to Overcome Barriers to Electric Vehicle Deployment and Complying with Public Utilities Code Section 740.2

R09-08-009

Quasi-Legislative Comr. Peevey/ ALJ DeAngelis-----------------------------------------------------------------------------------------------------------------------------PROPOSED OUTCOME:

• To achieve the state’s emission reduction goal, significant progress in the transportation sector is critical. Today’s decision achieves the following:

• Directs electric utilities to collaborate with automakers and other stakeholders to develop an assessment report to be filed in this proceeding to address early notification processes through which utilities can identify where plug-in hybrid and electric vehicles (PEV) charging will likely occur on their electric systems and plan accordingly;

• Affirms that, with limited exceptions, the electric utilities’ existing residential PEV rates are sufficient for early PEV market development, and, similarly, that existing commercial and industrial rates are sufficient in the early PEV market for non-residential customers. Electric Vehicle Service Providers in residential settings will be eligible for residential PEV rate schedules. The decision also sets out a process to re-examine PEV rates in the future;

• Considers opportunities to migrate toward new and lower cost metering technologies for PEV charging and sets out a process to develop PEV metering protocols to accommodate increased PEV metering options, such as submetering;

• Determines that, on an interim basis, until June 30, 2013, the costs of any distribution or service facility upgrades necessary to accommodate residential PEV charging will be treated as shared cost;

• Defines the role that utilities may play in education and outreach related to PEVs;

• Requires utilities to perform load research to inform future Commission policy; and

• Addresses utility ownership of electric vehicle service equipment.

• The proceeding remains open for receipt of compliance filings and to monitor efforts by stakeholders to further refine the issues identified herein.

ESTIMATED COST:

• Minimal.

Regular Agenda – Energy OrdersItem #47 [10367] Petition for Modification of Decision 09-09-047 Regarding 2010-2012 Energy Efficiency Portfolios

A08-07-021, A08-07-022, A08-07-023, A08-07-031 - Related matters.Application of Southern California Edison Company for Approval of its 2009-2011 Energy Efficiency Program Plans And Associated Public Goods Charge (PGC) And Procurement Funding Requests. Ratesetting Comr. Florio/ ALJ Gamson-----------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Adopts modifications and clarifications to Decision 09-09-047 regarding energy efficiency portfolios for 2010-2012 in response to a Petition for Modification filed by the four major California energy utilities. The decision does the following:

• Adopts final ex ante energy savings workpapers for non-Database for Energy Efficiency Resources (non-DEER) energy efficiency measures for 2010-2012 (see Attachment A).

• Determines that January 1, 2010 is the effective date for adopted ex ante energy savings workpapers and custom projects.

• Require the utilities to identify installation rates for each non-DEER energy efficiency measure in their 2010-2012 energy efficiency portfolios.

• Adopts an Energy Division custom project ex ante value review process (see Attachment B).

• Allows the utilities to make any energy efficiency portfolio program design changes (e.g., database management system changes, appropriate rebate/measure changes, etc.) consistent with the adopted non-DEER ex ante workpapers within 60 days.

• Brings finality and certainty to the determination of ex ante energy savings values for the 2010-2012 portfolios.

• Closes Application (A) 08-07-021, A08-07-022, A08-07-023 and A08-07-031.

ESTIMATED COST:

• Possible changes to incentives expected to be paid to utilities for 2010-0212 energy efficiency activities.

Regular Agenda – Energy OrdersItem #50 [10479] California Solar Initiative Phase One Program Modifications

R10-05-004 Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Quasi-Legislative Comr. Peevey/ ALJ Duda-----------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Modifies prior Commission decisions implementing the California Solar Initiative (CSI) on the following key subjects:

• Directs changes in Virtual Net Metering (VNM) offered under the Multifamily Affordable Solar Housing (MASH) program;

• Expands VNM to any multitenant property, not just those under the MASH program;

• Modifies program rules for CSI regarding application processing, project completion deadlines, inspection requirements, suspension procedures, performance monitoring and reporting services, Single Family Affordable Solar Housing requirements, and MASH incentives and rules; and

• Clarifies CSI budget components and revenue requirement.

ESTIMATED COST:

• No additional costs are incurred by this decision beyond those authorized by statute and previously

adopted in Decision 06-12-033.

Commissioners’ Reports

Management Reports

Regular Agenda – Management Reports and Resolutions

Item #59 [10495] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

Angels FlightFunicular Railway

June 2011 Shutdown by CPUC

Stephen ArtusRail Transit and Crossings Branch

Consumer Protection and Safety Division

July 14, 2011

Built in 1901 to transport residents up and down Bunker Hill. It was originally located next to the 3rd Street Tunnel.

Angels Flight: Historic L.A. Downtown Funicular

Photo of Angels Flight taken in 1960Angels Flight was shut down in 1969 as part of the Bunker

Hill Urban Renewal Project.

1996 Reopening Angels Flight reopened in 1996, through the efforts of the Los Angeles

Conservancy and other groups. It was built by the Community Redevelopment agency of Los Angeles (CRA/LA) and leased to Angels Flight Railway Foundation. It was moved half a block from the past location and built with a new structure, tracks, and drive.

• CPUC is responsible for safety and security oversight.

2001 Accident Closed in 2001 after an accident resulting

in 7 injuries and 1 fatality

NTSB and CPUC 2001 Accident Investigation

Main Findings

• Failure of the mechanical drive

• Failure of the emergency brakes

• Overheating of the gearbox

Mechanical drive system was redesigned and several safety features were added such as fail safe brakes and secondary safety cable. Gear failure no longer an issue due to car weight counterbalancing (pulley system). The installation of fail safe track brakes adds an additional layer of safety redundancy.

6/6/11 Inspection Findings

• Wheel flanges were experiencing excessive wear

• Car movement was not behaving as the original design had intended. The ride was quite bumpy and rough, and significant impact was occurring when the wheels of the Sinai car made contact with the guardrail of the track

• Patterns of wear on track structure and guardrail

The flange of the wheel keeps the vehicle on the track

Wheel Flange Wear

• Design drawing of AFRC wheel showing new wheel flange thickness of .75 inches

Normal wear of flange. The flange thickness was measured to be just under the design specification of .75 inches on this wheel.

Excessive wear, flange thickness measured to be .25 inches. Of the 8 wheels measured, 2 were .25 inches, 1 was .4 inches.

Possible Hazards Associated with Excessive Wheel Flange

Wear• Derailment due to failure of the wheel flange

(cracking or bending)• Flange climb derailment due to excessive wear• Endangerment of public safety• Accordingly AFRC was directed on 6/9/11 to

cease revenue service operations until CPUC staff could confirm the safety of the system.

CPSD Recommendations

• AFRC should replace the worn wheels.• AFRC should identify the root cause of the

wheel flange and rail deficiencies to mitigate premature wear.

• AFRC should improve maintenance plans and other standard operating procedures to ensure proper maintenance of the vehicle wheels.

• AFRC should perform engineering analysis to establish wheel flange condemning limits.

AFRC Response (6/9/11 – 7/5/11)

• AFRC replaced all 8 wheels and enhanced their maintenance/inspection plans to ensure proper wheel maintenance.

• AFRC modified the track to limit wheel wear.

• On 7/5/11 CPUC staff inspected Angels Flight and as a result the CPSD Director’s Office of CPUC authorized AFRC to resume revenue service operations.

Guardrail paint tests and the new wheels

Current Status

• CPUC Staff and AFRC are working together to finalize details of the enhanced maintenance/inspection plans to improve preventive maintenance measures.

• Staff is suggesting ongoing testing for improved understanding of system dynamics

• Staff will be conducting a rigorous safety audit (required every three years) of AFRC within the next couple of months as part of the State Safety Oversight Program.

Regular Agenda – Management Reports and Resolutions

Item #59 [10495] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

Management Reports

Low Income Oversight Board (LIOB)

Presentation

Jose Hernandez Board Chair

California Public Utilities CommissionPublic meeting ofJuly 14, 2011

LIOB Purpose

The LIOB created on May 2, 2002 is an advisory Board to the California Public Utilities Commission (Commission) on low-income electric, gas, and water corporation customer issues and to serve as a liaison for the Commission to low-income ratepayers and representatives.

LIOB Roles

Advise the Commission regarding the Commission’s performance of the following:

Monitor and evaluate the implementation of programs provided to low income electricity, gas, and water corporation customers.

Assist in the development and analysis of any assessments of low income customer need.

Encourage collaboration between state and utility programs for low income electricity and gas customers to maximize the leverage of state and federal energy efficiency funds to both lower the bills and increase the comfort of low-income customers.

Provide reports to the Legislature, as requested, summarizing the assessment of need, audits, and analysis of program implementation.

Assist in streamlining the application and enrollment process of programs for low-income electricity and gas customers with general low-income programs, including, but not limited to, the California LifeLine Program formerly known as the Universal Lifeline Telephone Service or ULTS program, and including compliance with PU Code Section 739.1.

Board MembersThe LIOB membership consists of eleven Board Members

with terms that range from 1 to 2 years in length.

Chair Jose Atilio Hernandez / IDEATE California Vice Chair Jason Wimbley / Department of Community Services

and Development Commissioner Timothy Alan Simon / California Public Utilities

Commission Ortensia Lopez / El Concilio of San Mateo County Janine Scancarelli / Crowell & Moring LLP Faith Bautista / National Asian American Coalition Dave Stephenson / American Water Works Service Company Louise Perez / Community Resource Project, Inc. Allan Rago / Quality Conservation Services, Inc Gillian Wright / Southern California Gas Company Charlie Toledo / Director, Suscol Intertribal Council

General Meetings

The LIOB holds 4-5 meetings annually with additional subcommittee meetings and/or conference calls as necessary.

Meeting locations alternate between northern, central and southern California.

All meetings of the LIOB and of any committees established to promote the goals of the LIOB shall be open to the public and shall be held in accordance with the provisions of the Bagley-Keene Open Meeting Act.

Goals & Priorities

Quality of Service

Affordability

Maximization of benefits for Low Income Households in California

Contacts

Chair Jose Atilio Hernandez / IDEATE California Email- jhernandez@ideatecal.com

Vice Chair Jason Wimbley / Department of Community Services and Development Email – jwimbley@csd.ca.gov

Rahmon Momoh/ Advisor to Commissioner Simon Email – Rahmon.momoh@cpuc.ca.gov

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

July 28, 2011, at 9:00 a.m.