CPUC Public Agenda 3276 Thursday, June 23, 2011, 9:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Timothy Alan Simon Michel Peter Florio Catherine J.K. Sandoval Mark J. Ferron

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: None  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. 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: None  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. 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: None  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, 6, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33 & 34 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: 39, 42 & 44 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: 12 has been moved to the Regular Agenda. Items: 40 & 43 have been withdrawn. The following items have been held to future Commission Meetings: Held to 7/14/11: 2, 3, 4, 5, 7, 35, 35a, 36, 37, 38 & 45

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 – Energy Orders Item #12 [10425] Approving Settlement Subject to Condition A Application of San Diego Gas & Electric Company to Amend Renewable Energy Power Purchase Agreement with NaturEner Rim Rock Wind Energy, LLC and for Authority to Make a Tax Equity Investment in the Project. Ratesetting Comr. Ferron/ ALJ Vieth PROPOSED OUTCOME: Approves settlement, subject to condition, and authorizes the filing under seal of certain confidential information in the settlement as well as the transactions documents attached to the settlement. Major terms of settlement include: Authorizing San Diego Gas & Electric Company (SDG&E) ratepayers and shareholders to make a tax equity investment in what is known as the Rim Rock wind project; Reducing the Rim Rock power purchase agreement (PPA) from 309 megawatts (MW) to 189 MW; Imposing a quantified price cap on the green attributes associated with the PPA; Reducing ratepayer funding to no more than $250 million (from the initial request for as much as $600 million); Making repayment of shareholder investment subordinate to repayment of ratepayer investment; Providing for the Division of Ratepayer Advocate/The Utility Reform Network to review SDG&E’s “due diligence”; and SDG&E also guarantees ratepayer neutrality and agrees to limits its future pursuit of Tradable Renewable Energy Credits that are only tangentially associated with California. Condition: Should the parties negotiate an increase in SDG&E’s rate of return under specified settlement provisions, they must seek Commission approval through a petition for modification under Rule Closes the proceeding. ESTIMATED COST: SDG&E ratepayer funding (of up to $250 million) targeted substantially to be repaid within ten years of start of commercial operation; SDG&E comments to ensure ratepayer neutrality by the end of 20 years.

Regular Agenda – Energy Orders Item #41 [10446] Broadband Consortia Program R Order Instituting Rulemaking to Consider Modifications to the California Advanced Services Fund Including Those Necessary to Implement Loan Program and Other Provisions of Recent Legislation. Quasi-Legislative Comr. Peevey/ ALJ Pulsifer PROPOSED OUTCOME: Implements the process for submission, review, approval, and disbursement of Rural and Urban Regional Broadband Consortia Account grants. ESTIMATED COST: $10 million of fund to be collected and granted to consortia for broadband programs.

Commissioners’ Reports

Management Reports

Regular Agenda – Management Reports and Resolutions Item #46 [10462] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities

12 CPSD Utilities Safety and Reliability Branch Raymond Fugere, Program and Project Supervisor California Public Utilities Commission June 23, 2011

Presentation Overview Definition of Reportable Incidents Basics of Incident Investigations Types of Underground Equipment Underground Explosion Investigation Procedures Utility and USRB Actions

Incident Reporting Requirements Incidents are events that involve electric facilities and result in either: –Overnight in-patient hospitalization –Death –$50,000 worth of damage –Significant media attention Within 2 hours of a reportable incident during normal working hours or within 4 hours of a reportable incident outside of normal working hours, the utility shall provide notice to designated CPUC staff of the general nature of the incident, its cause and estimated damage

Basis of Investigations Compliance with Commission General Orders 128 and 165 Compliance with the Public Utilities Code Failure to follow acceptable industry standards Failure to follow company’s procedure/policy Failure to follow other agencies safety requirement

Type of Underground Structures Underground Vaults BURD (Buried Underground Residential Distribution) Padmounted Structures Handholes Manholes Walk-in Vaults Above Ground Enclosures

Underground Equipment Cover Ladder Transformers Switches (oil or gas) Conductors Ground Rods Racks Capacitors Breakers Fuses Blowers Sump Pumps Elbows Light Fixtures Other Hardware

Typical Underground Vault

Typical Handhole

BURD Structures

Typical Padmounted Structures

Investigation of Underground Electric Facilities Failures and Explosions

Underground Explosion Investigation Procedure Field Work Immediate contact with the utility Meet with the utility representative at the site Interview Utility’s personnel Interview witnesses who observed the incident Take pictures of the site and facilities (equipment, conductors,…) Examine evidence (transformers, conductors, switches,…) Office Work Review and analyze construction and maintenance records Review and analyze inspection records Review the utility’s response to the incident Generate data requests as necessary Arrange to interviews of utility’s personnel as needed (including the utility’s employees who actually did the last inspection)

Utilities Actions To Prevent Underground Electric Facilities Failures and Explosions Conduct inspections –Visual –Thermal –Oil sampling Examine trends of outages Prioritize replacement of equipment –Transformer replacement program –Condition-based maintenance programs Venting manhole cover program Developing methods to improve field identification of cables needing replacement

USRB Actions Utility Standards Regulation Monitoring Criteria Monitoring Local Fixes Utility / Industry Review Reforms Needed Industry / Nation Standards

Regular Agenda – Management Reports and Resolutions Item #46 [10462] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities

Management Reports

The CPUC Thanks You For Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: July 14, 2011, at 9:00 a.m.