CPUC Public Agenda 3267 Thursday, January 13, 2011, 10:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Timothy Alan Simon Nancy E. Ryan

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. 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 10:00 a.m. will only have 1 minute. The following items are NOT subject to Public Comment:  Item: 17, 26, 29 & 42  All 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. 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 10:00 a.m. will only have 1 minute. The following items are NOT subject to Public Comment:  Item: 17, 26, 29 & 42  All 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, 14, 15, 16, 17, 19, 20, 21, 22, 23, 24, 27, 28, 30, 32, 33, 34, 35, 36, 37, 38, 39 & 40 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. Item: 50 from the Regular Agenda has 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: 26 has been moved to the Regular Agenda. Items: 5, 18 & 45 have been withdrawn. The following items have been held to future Commission Meetings: Held to 1/27/10: 2, 3, 4, 6, 25, 29, 31, 42, 42a, 43, 47 & 49

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

Regular Agenda – Legal Division Matters Item #41 [10056] Emergency Authorization to Ensure Safety of Certain Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company, & Southwest Gas Pipelines Res L Ratifies the orders of the Executive Director in his letters to Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company & Southwest Gas directing a reduction of pressure on certain pipelines and aggressively search pipeline records to identify segments in high consequence areas to be tested.

Regular Agenda – Energy Orders Item #44 [9721] Use of Tradable Renewable Energy Credits to Comply With the California Renewables Portfolio Standard R Order Instituting Rulemaking to Develop Additional Methods to Implement the California Renewables Portfolio Standard Program. Ratesetting Comr. Peevey/ ALJ Simon PROPOSED OUTCOME: Denies the April 12, 2010 Joint Petition of Southern California Edison Company, Pacific Gas and Electric Company, and San Diego Gas & Electric Company for Modification of Decision (D) , filed April 12, 2010, with the exception of one technical correction. Denies the Petition of the Independent Energy Producers Association for Modification of D , filed April 15, Modifies D to change the expiration dates of the temporary limit on the use of tradable renewable energy credits (TRECs) for compliance with the renewables portfolio standard (RPS) and the temporary cap on the price utilities may pay for TRECs from December 31, 2011, to December 31, Defers the application of any limits on TRECs usage to electric service providers to the proposed decision on implementation of Senate Bill 695, mailed September 10, 2010, in Rulemaking Lifts the stay on D imposed by D Ends the moratorium on Commission approval of certain RPS contracts imposed by D ESTIMATED COST: None.

Regular Agenda – Energy Orders Item #44a [9884] ALTERNATE TO ITEM 9721 Comr. Grueneich Denies the April 12, 2010, Southern California Edison Company, Pacific Gas and Electric Company, and San Diego Gas & Electric Company Joint Petition for Modification of Decision (D) and the April 15, 2010 Independent Energy Producers Association’s Petition for Modification of D Modifies D to extend the expiration date for the tradable renewable energy credit usage cap and price cap to December 31, Lifts the stay on D as well as the moratorium on Commission approval of certain renewables portfolio standard contracts, both imposed by D

Regular Agenda – Energy Orders Item #46 [9768] Renewables Portfolio Standard Obligations of Electric Service Providers R Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program. Ratesetting Comr. Peevey/ALJ Simon PROPOSED OUTCOME: Electric Service Providers (ESPs) must file Renewables Portfolio Standard (RPS) procurement plans in accordance with instructions of the assigned Commissioner and/or assigned Administrative Law Judge. ESPs must adhere to all rules for the use of tradable renewable energy credits (TRECs) imposed by the Commission, other than the temporary limit on prices paid for TRECs. The temporary limit on the use of TRECs for RPS compliance set out in Decision applies to ESPs, with the proviso that TREC contracts signed by ESPs prior to the effective date of this decision may be used for RPS compliance in any year, even if the deliveries under the contract would cause an ESP to exceed the temporary annual TRECs usage limit in that year. Further specification of the RPS responsibilities of community choice aggregators will be undertaken in this proceeding or its successor. ESTIMATED COST: None.

Regular Agenda – Communications Orders Item #26 [10047] Settlement Agreements and Motion for Summary Adjudication Regarding Liability, and Resolving all Other Issues I Order Instituting Investigation on the Commission’s own motion into the operations, practices, and conduct of Contractors Strategies Group, Inc., Intella II, Inc., A&M Communications, TNT Financial Services, Limo Services, Inc., Calnev Communications, Inc., 1st Capital Source Funding & Financial Services, Inc., and their owners to determine whether Respondents violated the laws, rules, and regulations of this State regarding the connection of Automatic Dialing-Announcing Devices to Customer- Owned Pay Telephones. Adjudicatory Comr. Ryan/ALJ Darling PROPOSED OUTCOME: Respondents together will pay fines totaling $18,413.78, release all claims to illegally generated Dial Around Compensation (DAC) of $103,194, and barred from future operation of customer owned pay phones. DAC divided between General Fund and Telecom Consumer Fund due to administrative problems with refunds. ESTIMATED COST: None.

Regular Agenda – Communications Orders Item #48 [9978] Order Instituting Rulemaking R____________ Order Instituting Rulemaking on the Commission's Own Motion to Require Interconnected Voice Over Internet Protocol Service Providers to Contribute to the Support of California’s Public Purpose Programs PROPOSED OUTCOME: Adds Interconnected Voice Over Internet Providers to the Category of Providers Required to Fund California's Universal Service Program. ESTIMATED COST: None.

12 Order Instituting Rulemaking Jack Leutza Director, Communications Division California Public Utilities Commission January 13, 2011

OIR to Require Interconnected Voice over Internet Protocol (VoIP) Service Providers to Contribute to the Support of California’s Public Purpose Programs This Rulemaking is to add California providers of interconnected Voice over Internet Protocol service to the category of voice service providers who are required to fund California's universal service programs. Objective is to ensure that our Universal Service programs are adequately supported in a competitively & technologically neutral manner.

VoIP Universal Service Rulemaking Rulemaking would require VoIP Providers to:  Contribute support for LifeLine, High-Cost Funds A & B, CASF, CTF, and DDTP;  Collect & remit public program surcharges on intrastate revenues;  Register with the CPUC for this limited purpose.

VoIP Universal Service Rulemaking FCC Declaratory Ruling of Nov. 5, 2010:  States not pre-empted from requiring interconnected VoIP providers to contribute to state universal service programs.  The FCC stated that “the application of state universal contribution requirements to interconnected VoIP providers does not conflict with federal policies, and could, in fact promote them.” [Declaratory Ruling at ¶ 15.]

VoIP Universal Service Rulemaking Rulemaking tentatively concludes:  The CPUC has authority to act on this matter. PU Code Sec. 234 definition of “telephone corporation” includes interconnected VoIP.  The CPUC should permit VoIP providers to use the FCC safe harbor percentage (35.1%) or other FCC approved option, for determining VoIP intrastate revenues.  Similar to the FCC, the CPUC should establish a de minimus exemption for a VoIP provider whose annual universal service contribution is expected to be less than $10,000.

Regular Agenda – Communications Orders Item #48 [9978] Order Instituting Rulemaking R____________ Order Instituting Rulemaking on the Commission's Own Motion to Require Interconnected Voice Over Internet Protocol Service Providers to Contribute to the Support of California’s Public Purpose Programs PROPOSED OUTCOME: Adds Interconnected Voice Over Internet Providers to the Category of Providers Required to Fund California's Universal Service Program. ESTIMATED COST: None.

Commissioners’ Reports

Management Reports

The CPUC Thanks You For Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: January 27, 2011, at 10:00 a.m.