HomeMy WebLinkAbout2023-03-14; City Council Legislative Subcommittee; ; California Public Utilities Commission UpdateLEGISLATIVE SUBCOMMITTEE
Staff Report
Meeting Date: March 14, 2023
To: Legislative Subcommittee
From: Jason Haber, Intergovernmental Affairs Director
Staff Contact: Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 442-339-2958
Subject:
District:
California Public Utilities Commission Update
All
Recommended Action
Receive an informational update and overview of the California Public Utilities Commission's policy
and regulatory work concerning the telecommunications, energy, transportation, and water
industries, and provide feedback.
Discussion
The California Public Utilities Commission's Local Government Liaison will provide an update and
overview of recent and ongoing proceedings of the commission that are relevant to the city,
including those related to:
• San Diego Gas & Electric Company General Rate Case
• Community Choice Energy
• Net Energy Metering
• Water Reliability
• Railroads and Rail Transit Systems
Next Steps
None.
Public Notification
Public notice of this item was posted in keeping with the Ralph M. Brown Act and was available for
public viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1. California Public Utilities Commission Fact Sheet: What is the California Public Utilities
Commission
2. California Public Utilities Commission Fact Sheet: San Diego Gas & Electric Company General
Rate Case
March 14, 2023 Item #3 Page 1 of 5
The California Public Utilities
Commission (CPUC) regulates
services and utilities, protects
consumers, safeguards the
environment, and assures
Californians' access to safe and
reliable utility infrastructure
and services.
To learn more about the
CPUC, please contact the
News & Outreach Office at
outreach@cpuc.ca.gov
What is the California
Public Utilities Commission?
What Industries Does
the CPUC Regulate?
t Energy -Electricity and Natural Gas
The CPUC regulates investor-owned electric and nacural gas utilities.
The CPUC ensures the reliability and safety of electric and natural gas
systems, and works co advance renewable energy and climate goals.
Transportation -Rail and Passenger Carrier Safety
lbe CPUC oversees the safety of railroads and rail transit systems,
for-hire passenger carriers (limousines, airport shuttles, charter and
scheduled bus operators) and Transportation Network Companies
(Lyft, Uber).
Telecommunications
The CPUC develops and implements policies for che telephone
communications and broadband markets, including ensuring fair,
affordable universal access co necessary services.
Water
The CPUC is responsible for ensuring chat investor-owned water
utilities deliver clean, safe, and reliable water to their customers at
reasonable races.
505 Van Ness Ave. 415·703-2782 cpuc ca gov
San Francisco, CA 94102 800-848·5580 (Toll Free) 0 C} @ (!) ffi
Item #3 Page L otS 0322
Staying Informed:
Where Can I Find Information About CPUC Proceedings and Events?
DOCKET CARD:
www.cpuc.ca.gov/Docket
Search for documents related co
CPUC proceedings:
OPEN PROCEEDINGS:
www.cpuc.ca.gov/proceedings-and-
rulemaking Monthly updates of
proceedings currently open at the
CPUC.
SUBSCRIPTION SERVICE:
subscribecpuc.cpuc.ca.gov
Receive email notifications when
documents such as press releases are
published.
Getting Involved:
Does My Voice Matter to the CPUC?
SERVICE LIST:
www.cpuc.ca.gov/service-lists
Receive ongoing communication about
a specific proceeding.
DAILY CALENDAR:
www.cpuc.ca.gov/DailyCalendar
Follow hearings, meetings, workshops,
and how co access CPUC events
remotely.
MONTHLY NEWSLETTER:
www.cpuc.ca.gov/newsletter
Subscribe co receive our newsletter by
email, or read it online.
Yes, your voice matters! We wane co hear from you co help us make decisions chat
reflect all Californians' concerns and perspectives.
• Comment on an Issue: You can make comments on proceedings on the Docket
Card at www.cpuc.ca.gov/Dockec, where you can also read the comments of
ochers. You can also give oral comments at Public Participation Hearings and at
ocher CPUC meetings chat have designated public comment sessions, or email us
at public.advisor@cpuc.ca.gov.
• Become a Party: You can become a party co a CPUC proceeding co participate
formally in the decision-making process.
For more information, contact the Public Advisor's Office:
) VISIT: www.cpuc.ca.gov/pao
CALL: 866-849-8390
EMAIL: public.advisor@cpuc.ca.gov
How Can the CPUC Help Me Resolve My Issues?
Our Consumer Affairs Branch {CAB) can help if you have a problem
with your utility bill or service that you are unable co solve directly with
your utility company. You can contact CAB in three different ways:
@ CALL: 800-649-7570
~ FILE a complaint online:
www.cpuc.ca.gov/complaints
March 14, 2023
§ WRITE a letter co:
CPUC Consumer
Affairs Branch
505 Van Ness Ave.
San Francisco, CA 94102
How Does the CPUC Work with
and for Communities?
mg The CPUC has several
programs to reach different
people and groups so chat we
can meaningfully involve chem
in CPUC proceedings and
decision-making.
Our Consumer Affairs Branch helps resolve
disputes between customers and their utility
company.
Our Public Advisor's Office provides
information, advice, and assistance co individuals
and groups who wane co participate in CPUC
proceedings.
O ur Business and Community Outreach
Office builds relationships with community
organizations and local governments, working co
keep chem informed and involved with CPUC
programs and policymaking.
Our Small Business Program gives small
businesses opportunities co contract with che
scare and utility companies, and keeps chem
informed about important issues and policy.
Our Supplier Diversity Program successfully
encourages utilities to spend more than 20
percent of their contracts co business owned
by women, minority, lesbian, gay, bisexual and
transgender (LGBT), and disabled veterans.
Our Low Income Oversight Board helps
ensure che CPUC and utility companies serve
low income customers with helpful programs
and partnerships.
O ur Disadvantaged Community Advisory
Group advises the CPUC and our partners
at the California Energy Commission on
issues related co environmental justice and
social equity.
Our Telecommunications Access for the
Deaf and Disabled Administrative Committee
advises the CPUC about the provision of
telecommunications equipment and relay
services for persons with functional limitations
of hearing, vision, movement, manipulation,
speech, cognition, and incerprecacion of
information.
.
California Public
Utilities Commission
Item #3 Page 3 of 5
Exhibit 2
CPUC Fact Sheet -San Diego Gas & Electric
Company General Rate Case
PUBLIC PARTICIPATION HEARING
San Diego Gas & Electric Company (SDG&E)
Application (A.) 22-05-016
Updated as of 2/28/23
What is this SDG&E Rate Application About?
The California Public Utilities Commission (CPUC) requires San Diego Gas & Electric Company (SDG&E) to file an
application, referred to as the General Rate Case (GRC) to present its forecasted costs, services and projects, and request
approval of the utility's revenue requirements. The CPUC does an in-depth review of such application to decide on the rates
SDG&E is authorized to charge its customers and whether any changes are needed in SDG&E's future operations.
In its current application A.22-05-016, 1 SDG&E is requesting that the CPUC approve rate increases for its gas and electric
customers for the calendar years 2024 through 2027. The CPUC expects to issue a proposed decision in the 1st quarter of
2024 addressing SDG&E's GRC application.
What Will SDG&E's Requested Rate Increase Mean to You?
SDG&E is requesting2 that the CPUC authorize SDG&E to recover $2.996 billion in 2024 from its customers.
The below table shows the approximate monthly SDG&E electric and gas bill impacts for a typical residential customer, not
enrolled in the California Alternate Rates for Energy (CARE) program3• This results in an estimated bill impact of 5.3% for
SDG&E electric residential customers and 17.5% for gas residential customers compared to the estimated 2023 bills.
Prooosed 2024 Monthlv SDG&E Residential Bill lmoact
Customer and Typical Monthly Usage4 Estimated Proposed Estimated % Increase
Forecasted Increase Proposed relative to
2023 Bill 2024 Bill 2023
Ek!;;tric Residential CustQmer $159.86 $8.45 $168.31 5.3%
T~ical coastal summer usage
G:a~ Re~id~ntial Cm!Qmer
24 therms per month $52.32 $9.16 $61.48 17.5%
In addition, SDG&E is requesting additional revenue increases of $315 million in 2025, $306 million in 2026, and $279
million in 2027, an additional cumulative revenue requirement increase of 30%.
What Type of Costs Does SDG&E Request to Recover?
1 This application does not include the cost to purchase gas and electricity for the utility's customers or determine how revenues are assigned to customer
groups. Those are evaluated and authorized in separate proceedings.
2 SDG&E's August, October, and November 2022 revised testimony
3 Under tbe CARE program, low-income participants receive a 20% discount on their bills.
4 Residential ~a1H~fin'fa ~r2~'31 by SDG&E based on their usage, measured in therms, but a monthly mioim~remcw~r is cbargfPage 4 of 5
SDG&E's total electric and gas operating expense request amounts to $2.3 billion. SDG&E's request will result in an
overall return of $668 million in 2024 which represents a 7.55% rate of return.5
GRC applications allow the utilities to request recovery of costs such as operation and maintenance (O&M) expenses,
administrative and general (A&G) expenses, depreciation expense, taxes, return, and capital spending amounts. Major
requested operating expenses are shown below.6
• Electric and Gas Distribution: $189.4 million
• Wildfire Mitigation and Vegetation Management: $169.0 million
• Gas System and Transmission: $18.8 million
• Electric Generation and Procurement: $50.2 million
• Customer Services: $102.2 million
• Information Technology and Cybersecurity: $126.8 million
• Administrative and General and Support Services: $814.8 million
• Depreciation expense: $760 million
• Taxes: $346 million
• Less Reassignments of expense to capital: ($242.4 million)7
• Less Federal Energy Regulatory Commission Transmission: ($116.8 million)
SDG&E's electric and gas capital spending request amounts to $5.5 billion between 2022 and 2024.8
H ow Can My Voice Be Heard?
The CPUC Public Advisor's Office 01ttps://www.cpuc.ca.gov/pao/) has the information on how the public can
participate in CPUC proceedings. Specifically:
• Customers can remotely attend and speak from their homes by phone or computer at any of the upcoming
remote Public Participation Hearings (PPHs) the CPUC will hold in 2022. These hearings will be transcribed by
a court reporter and placed into the formal record for this proceeding. During the hearing, you can make
comments and raise concerns to the CPUC's Administrative Law Judge overseeing this application. A list of
dates, times, and how to participate is at: https://www.cpuc.ca.gov/pph/. Comments can be made in both
English and Spanish.
• Customers can submit electronic public comments specific to this proceeding and review all other public
comments submitted by using the "Add Public Comment" button on the Public Comment tab of the docket
card for A.22-05-016 at htt;ps://apps.cpuc.ca.gov/c/A2205016.
• To view SDG&E's application and all formal filings, including the proposed decision when issued, go to
https: / /apps.cpuc.ca.gov /p/A2205016 and select the "Documents" tab at the top of the page.
• Customers can mail a letter to the CPUC Public Advisor and include this proceeding number, A.22-05-016, to
public.advisor@cpuc.ca.gov or CPUC, Public Advisor, 505 Van Ness Ave., San Francisco, CA 94102.
• The Public Advisor's Office may be reached by phone at 866-849-8390.
• Customers can access the CPU C's home page for further information on consumer programs and services and
to explore information on key issues and topics of interest to the public at https://www.cpuc.ca.gov
5 SDG&E's "return" recovers its cost of capital. i.e. its cost of debt and its return to shareholders. ln its testimony, SDG&E asserted that its proposed
revenue requirement results in a rate of return of7.55% which was approved by CPUC in Decision 19-12-056. On December 15, 2022, the Commission
adopted a new rate of return for SDG&E of7.18% in Decision 22-12-031.
6 Please see SDG&E's August 2022 Testimony in Exhibit SDG&E-44-R for more detail about the expenses and revenue requirement that SDG&E is
requesting in this GRC. Other drnn depreciation expense and taxes, d1e amounts shown are in 2021 dollars. Depreciation expense and taxes are i.n 2024
dollars.
7 "Reassignments" refer to expense amounts that are reassigned to capital construction efforts.
8 This amount does not yet reflect a reduction in capital spending described in SDG&E's October 2022 Wildfire Mitigation testimony.
2
March 14, 2023 Item #3 Page 5 of 5