CPUC Public Agenda 3299Thursday, August 23, 2012, 9:00 a.m.

San Francisco, CA

Commissioners: Michael R. Peevey

Timothy Alan Simon Michel Peter Florio

Catherine J.K. SandovalMark J. Ferron

www.cpuc.ca.gov

Safety and Emergency Information

• The restrooms are located at the far end of the lobby outside of the security screening area.

• In the event of an emergency, please calmly proceed out of the exits. There are four exits total. Two exits are in the rear and two exits are on either side of the public speakers area.

• In the event of an emergency and the building needs to be evacuated, if you use the back exit, please head out through the courtyard and down the front stairs across McAllister.

• If you use the side exits you will end up on Golden Gate Ave. Please proceed around the front of the building to Van Ness Ave and continue on down to the assembly point.

• Our assembly point is between the War Memorial Building and the Opera Building (House) which is on Van Ness Ave, located between McAllister and Grove.

Public Comment

• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must sign up with the Public Advisor’s Office table before the meeting begins. If an individual has signed up using the electronic system on the Commission’s website, they must check in with the Public Advisor’s Office on the day of the meeting, by the sign-up deadline.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers the time limit may be reduced to 1 minute.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

The following items are NOT subject to Public Comment:Item: 11, 27, 33, 40 & 52All 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 sign up with the Public Advisor’s Office table before the meeting begins. If an individual has signed up using the electronic system on the Commission’s website, they must check in with the Public Advisor’s Office on the day of the meeting, by the sign-up deadline.

• 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.

The following items are NOT subject to Public Comment:Item: 11, 27, 33, 40 & 52All 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 sign up with the Public Advisor’s Office table before the meeting begins. If an individual has signed up using the electronic system on the Commission’s website, they must check in with the Public Advisor’s Office on the day of the meeting, by the sign-up deadline.

• 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: 11, 27, 33, 40 & 52All 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, 2, 3, 4, 6, 9, 10, 11, 12, 13, 14, 15, 16, 19, 21, 22, 23, 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 37, 38, 39, 40, 43, 44 & 45

• 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: None 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: 36 has been moved to the Regular Agenda.

• Items: 51, 54, 55 & 57 have been withdrawn.

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

Held to 9/13/12: 5, 7, 8, 17, 18, 36, 41, 42, 48, 49, 52, 53 & 56

Held to 9/27/12: 20, 24, 26, 50 & 50a

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 – Water/Sewer Orders

Item #36 [11521] California Water Service Company's Petition to ModifyDecision 06-11-053

A05-10-035In the Matter of the Application of California Water Service Company, a corporation, for authority to Implement a Low-Income Ratepayer Assistance Program in compliance with Decision 03-09-021 in Application 01-09-062.

Ratesetting Comr. Sandoval/ Judge McKinney---------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Adopts All-Party Settlement Agreement modifying collection of surcharge for Low-Income Ratepayer Assistance program.

• Closes the proceeding.

ESTIMATED COST:

• None.

Regular Agenda – Energy Orders

Item #46 [11311] Large Investor-Owned Utilities’ Applications for EnergySavings Assistance and California Alternate Rates for Energy Programs and Budgets for Program Cycle 2012-2014

A11-05-017, A11-05-018, A11-05-019, A11-05-020 - Related matters.Application of Southern California Edison Company for Approval of its 2012-2014 California Alternate Rates for Energy and Energy Savings Assistance Programs and Budgets.

Ratesetting Comr. Simon/ Judge Kim---------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves Energy Savings Assistance and California Alternate Rates for Energy Programs and budgets for program cycle 2012-2014 and sets the stage for the second phase of the consolidated proceeding.

ESTIMATED COST:

• $5 billion.

Regular Agenda – Energy OrdersItem #47 [11495] Privacy Protections for Customer Usage Data

R08-12-009Privacy Protections for Customer Usage Data Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission's own Motion to Actively Guide Policy in California's Development of a Smart Grid System.

Quasi-Legislative Comr. Peevey/ Judge Sullivan---------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Extends privacy protections adopted in Decision 11-07-056 to customers of Gas Corporations and Community Choice Aggregators and to Residential and Small Business Customers of Electric Service Providers using advanced metering infrastructure.

ESTIMATED COST:

• No change in revenue requirements.

Commissioners’ Reports

Management Reports

Regular Agenda – Management Reports and Resolutions

Item #58 [11497] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

REPLACEMENT OF CAST IRON NATURAL GAS PIPELINE

Dennis LeeSenior Utilities Engineer, Gas Safety & Reliability Branch

California Public Utilities Commission

8/23/2012

Overview

• Background on Cast Iron Gas Pipeline

• Pennsylvania Gas Pipeline Explosion

• Existing Cast Iron Gas Pipelines in California

• PG&E’s Gas Pipeline Replacement Program (GPRP)

• CPUC’s Role Related to Cast Iron Pipeline

Background on Cast Iron Gas Pipeline

• Cast iron pipe installed over 60 years ago

• Operates safely if left undisturbed

• Can degrade over time

• Cast iron pipe is no longer installed

Pennsylvania Gas Pipeline Explosion

February 2011 Photo Courtesy of AP

Consequences

5 Fatalities and 3 InjuriesPhoto Courtesy of AP

Consequences (cont.)

8 Homes DestroyedPhoto Courtesy of Rob Kandel

Consequences (cont.)

$2.5 Million In Damages Photo Courtesy of Rob Kandel

12” Cast Iron Gas Main Leak

Crack Found in 12” Cast Iron Main Photo Courtesy of Rob Kandel

Penalties

• Pennsylvania PUC fined UGI Utilities $386,000

Maximum civil penalty allowed by law

• UGI found in violation of various codes:

• 49 CFR 192.625(a) - Maintain odorant sampling program

• 49 CFR 192.489 - Remediate cast iron pipelines

• 49 CFR 192.755(a) - Protect cast iron pipelines

• 49 CFR 192.615 - Comply with emergency procedures

Existing Cast Iron Gas Pipelines in California

• PG&E still has cast iron gas pipe in its system

• Approximately 48 miles remain in California 43 miles located within the City of San Francisco

3.5 miles located within the City of Fresno

1.5 miles located in five other cities

PG&E’s Gas Pipeline Replacement Program

(GPRP)

• Initiated in 1985 to replace certain gas distribution and transmission pipe

• Cast iron targeted for replacement in GPRP

• PG&E had 829.2 miles of cast iron mains in CA

• PG&E has replaced 781.4 miles of cast iron

• Replaced 30 miles of cast iron pipe per year

PG&E’s Plan

• Replacing the remaining cast iron by 2014• Exception of those locations subject to street moratoria

Issues

• San Francisco’s excavation moratorium ordinances. Prohibits street excavation when reconstructed, repaved,

or resurfaced

• In 1985, San Francisco had a total of 487.5 miles• Other cities in California had a total of 341.5 miles

CPUC’s Role Related to Cast Iron Pipeline

• Monitor progress

• Confirm replacement continues on schedule

• Seek ways to accelerate replacement in San Francisco

CPSD sent letter to San Francisco Public Works Department (SFPWD)

Encourages SFPWD to work with PG&E to determine what actions can be taken to accelerate replacement in San Francisco

Regular Agenda – Management Reports and Resolutions

Item #58 [11497] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

September 13, 2012, at 9:00 a.m.in San Francisco, CA