CPUC Public Agenda 3250 Thursday, March 11, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Timothy Alan Simon Nancy E. Ryan

Public Comment Any member of the public who wishes to address the CPUC about matters before the Commission, must first sign up with the Public Advisor before the meeting begins. Once called, at the discretion of the President of the CPUC, each speaker has up to 2 minutes. 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:  Items: 19 & 27  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, 5, 12, 13, 14, 15, 16, 17, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30 & 31 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: 40, 41, 42, 43 & 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: 10 has been moved to the Regular Agenda. Items: 8 & 18 have been withdrawn. The following items have been held to future Commission Meetings: Held to 4/8/10: 2, 3, 4, 7, 9, 11, 33, 34, 34a, 36, 36a, 38 & 39 Held to 4/22/10: 6

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 #32 [8406] Tradable Renewable Energy Credits for the California Renewables Portfolio Standard Program Compliance R Order Instituting Rulemaking to Develop Additional Methods to Implement the California Renewables Portfolio Standard Program. Ratesetting Comr. Peevey/ ALJ Simon PROPOSED OUTCOME: Authorizes use of tradable renewable energy credits (TRECs) for the California Renewables Porforlio Standard Program compliance. Sets market rules for TREC market. Sets compliance and reporting rules for use of TRECs. Sets temporary cap of $50.00/REC on TRECs used by utilities for RPS compliance. Sets temporary usage limit of 40% of RPS annual procurement target for TRECs used by three large utilities. ESTIMATED COST: None.

Regular Agenda – Energy Orders Item #35 [9220] Increased Limits for Direct Access Transactions R Rulemaking regarding whether, or subject to what Conditions, the suspension of Direct Access may be lifted consistent with Assembly Bill 1X and Decision Ratesetting Quasi-Legislative Comr. Peevey/ ALJ Pulsifer PROPOSED OUTCOME: Authorizes increased limits in the allowed level of direct access transactions within the service territories of California’s three major investor-owned electric utilities, Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company, implemented in accordance with the provision of Senate Bill 695 (Stats. 2009, ch. 337). Effective April 11, 2010, all qualifying customers will be eligible to take direct access service, up to the new maximum cap subject to the conditions as set forth herein. ESTIMATED COST: Uncertain.

Regular Agenda – Energy Resolutions and Written Reports Item #10 [9199] Selection of Grant Recipients of the California Solar Initiative Research, Development, Deployment and Demonstration Program. Res E PROPOSED OUTCOME: Program Manager will enter into grant agreements with the eight selected recipients. ESTIMATED COST: No additional cost is associated with this Resolution.

Click to edit Master title style Introduction to Resolution E-4317 Award of Grants Under the California Solar Initiative (CSI) Research, Development, Demonstration and Deployment (RD&D) Program First Grant Solicitation Julie Fitch Energy Division Director March 11, 2010

Click to edit Master title style CSI Research, Development, Demonstration and Deployment (RD&D) Program Purpose: Help build a sustainable and self- supporting industry for customer-sited solar in California Objectives:  Help lower solar technology electricity prices to levels where they are comparable to retail electricity prices, and  Help support the deployment of distributed solar to accomplish the CSI goal of 3000 MW by 2016 Funding:  CPUC adopted D authorizing $50 million in funding and establishing the “Adopted CSI RD&D Plan”

Click to edit Master title style  The 7 objectives of the CSI RD&D Adopted Plan include:  Improve the economics of solar - reduce costs and increase performance.  Focus on issues that benefit California.  Fill knowledge gaps to enable successful, wide-scale deployment of solar.  Overcome significant barriers to technology adoption.  Leverage California’s wealth of data from past, present, and future installations.  Provide bridge funding to help promising solar technologies achieve commercial viability.  Address integration of distributed solar power into the grid in order to maximize value to ratepayers. Objectives of CSI RD&D Adopted Plan

Click to edit Master title style Allocation of Funding in the Adopted CSI RD&D Plan  Allocation of Funds by RD&D Stages  Research: 20%  Development: 5-10%  Demonstration: 45-55%  Deployment (Market Support): 5-10%  Allocation of Funds by Target Activities  Production Technologies – 10-25%  Supporting commercialization of new photovoltaic (PV) technologies  Grid-Integration – 50-65%  Improving PV integration with transmission and distribution systems  Business Development and Deployment – 10-20%  Providing support for the PV market and end-users

Click to edit Master title style  First Grant Solicitation (up to $15 million available)  Targets Integration of PV into the Utility Grid  Planning and Modeling for High-Penetration PV  Testing and Development of Hardware and Software for High-Penetration PV  Addressing the Near Term Integration of Energy Efficiency, Demand Response and Storage with PV  Solicitation released June 2009 with proposals due August 24, 2009  21 Proposals submitted, 19 scored, and eight recommended for funding  Awards are recommended in today’s Resolution  Second Grant Solicitation (up to $15 million available)  Targets Improved PV Production Technologies and Innovative Business Models  Solicitation released in early November 2009 with proposals due February 16, 2010  97 Proposals submitted, 66 will be scored Recent CSI RD&D Activities

Click to edit Master title style Results of First Solicitation  Resolution E-4317 recommends awarding $9.3 million (with $6.1 million) in CSI RD&D Grant Funding to eight recipients: ApplicantProposal title Funding Request Match funding Sacramento Municipal Utility District High Penetration PV Initiative$2,968,432$1,293,259 Clean Power Research Advanced Modeling and Verification for High Penetration PV $976,392$2,293,000 National Renewable Energy Laboratory Beopt-CA (EX): A Tool for Optimal Integration of EE/DR/ES+PV for California Homes $985,000$329,000 kW Engineering Specify, Test and Document an Integrated Energy Project Model $942,500$250,000 National Renewable Energy Laboratory Analysis of High-Penetration Levels of PV into the Distribution Grid in CA $1,600,000$1,400,000 APEP/UC Irvine Development and Analysis of a Progressively Smarter Distribution System $300,000$100,000 SunPower Corporation Planning and Modeling for High-Penetration PV $1,000,000$320,000 University of California San Diego (UCSD) Improving Economics of Solar Power Through Resource Analysis, Forecasting and Dynamic System Modeling $548,148$137,037 Total$9,320,472$6,122,296

Click to edit Master title style Thank you! For Additional Information:

Regular Agenda – Energy Resolutions and Written Reports Item #37 [8518] Moorpark-Newbury 66 kV Subtransmission Line Res E-4243, Advice Letter 2272-E, filed on October 2, Related matters PROPOSED OUTCOME: Affirms a prior Executive Director’s Action Resolution E-4225 findings related to Southern California Edison’s (SCE’s) proposed Moorpark-Newbury 66 kV Subtransmission line. Finds that: SCE complied with the notice requirements for the proposed construction of facilities; The proposed facilities were exempt from Permit to Construct requirements; Facts claimed in protests to Executive Director’s Action Resolution did not support a finding that General Order 131-D exemption criteria applied. Dismisses protests. ESTIMATED COST: Moorpark-Newbury 66kV Subtransmission Line was filed as Advice Letter 2272-E Notice of Proposed Construction Project Pursuant to General Order 131-D, therefore no cost information is provided or required for Permits to Construct.

Resolution E-4243 (Item 37) Southern California Edison’s (SCE’s) proposed Moorpark-Newbury 66 kV Subtransmission line Julie Fitch Energy Division Director March 11, 2010

Resolution E-4243 This Resolution Affirms a prior Executive Director’s Action Resolution E-4225 findings related to Southern California Edison’s (SCE’s) proposed Moorpark-Newbury 66 kV Subtransmission line. That Resolution found that: 1.SCE complied with the notice requirements for the proposed construction of facilities; 2. The proposed facilities were exempt from the Commission’s Permit to Construct requirements; 3. Facts claimed in protests to the Executive Director’s Action Resolution did not support a finding that General Order 131-D exception criteria applied. ESTIMATED COST: Moorpark-Newbury 66kV Subtransmission Line was filed as Advice Letter 2272-E Notice of Proposed Construction Project Pursuant to General Order 131-D; therefore, no cost information is provided or required for Permits to Construct.

Project Description The new Moorpark-Newbury 66 kV subtransmission line is to address a forecasted overload of % by 2011 on the existing Moorpark-Newbury-Pharmacy 66 kV subtransmission line. The project, which would involve both the construction of new facilities and replacement and reconductor of existing facilities, is approximately 9 miles in length. It will be constructed entirely within SCE’s existing easements, rights-of-way (ROW) and fee-owned property. The project traverses portions of the City of Moorpark, unincorporated areas of Ventura County, and the City of Thousand Oaks.

Project Description and Location The project consists of the following four segments: –Segment 1: Construction of approximately 2,000 feet of underground 66 kV line, entirely within Moorpark Substation. –Segment 2: Construction of 34 new 66 kV subtransmission tubular steel poles (TSP) for approximately 5 miles, adjacent to an existing line and in existing ROW. –Segment 3: Replacement of 14 existing double-circuit 66 kV lattice steel towers with 14 double-circuit TSP’s for approximately 2.5 miles on an existing 66 kV subtransmission line.. –Segment 4: Replacement of 36 single- circuit wood poles with 36 double- circuit lightweight steel 66 kV poles for approximately 1.2 miles in existing right-of-way.

G.O. 131-D, “Exemption g.” The proposed project is consistent with General Order 131-D, Section III, Subsection B.1.g. (“Exemption g.”) which exempts certain projects from the requirement to obtain a Permit to Construct, including: –“power line facilities or substations to be located in an existing franchise, road-widening setback easement, or public utility easement;...” The proposed facilities are exempt because they will be located entirely within SCE’s existing easements, rights- of-way and SCE fee-owned property.

Thank you! For Additional Information:

Commissioners’ Reports

Commissioner’s Reports Item #45 [9244] Commissioner Reappointment to the Low-Income Oversight Board President Peevey Report Reappointment of Commissioner Dian Grueneich to the Low-Income Oversight Board.

Commissioners’ Reports

Management Reports

The CPUC Thanks You For Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: April 8, 2010, at 10:00 a.m.