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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