1. 1 Senate Bill 790 San Diego Energy District Foundation Carlos Velasquez CCA Regulatory Analyst California Public Utilities Commission June 21, 2012

2. Assembly Bill 117 (Preceded SB 790) AB 117: enabled cities and/or counties to implement the CCA program * codified the CCA program statute in the Public Utilities Code R.03-10-003: created rules for the CCA program – Decision 04-12-046 addressed utility costs that would be assumed by the CCAs – Decision 05-12-041 addressed issues concerning transactions between the CCAs/Utilities/Customers. 2

3. Local Governments try CCA San Joaquin Valley Power Authority (2008) – Settlement Agreement: set mutually-agreeable marketing standards Marin Energy Authority (2010) – Resolution E-4250: early customer opt-outs San Francisco (2010) – D.10-05-050: enabled CCA to control opt-out mechanism 3

4. Senate Bill 790 requires the CPUC to develop a utility code of conduct relative to CCA program in order to: facilitate CCA program implementation foster fair competition prevent ratepayer subsidization – March 1, 2012: a rulemaking needed to be opened – January 1, 2013: code of conduct, rules, and enforcement procedures need to be finalized clarified a CCA’s right to administration of EE Funds expanded the definition of the entities that are permitted to form CCAs 4

5. What’s happened so far? February 23, 2012: Rulemaking 12-02-009 was issued & Judge was assigned “It is the Commission’s intent to have a proposed decision on the Commission’s agenda by December 2012.” ( Section 5.3: Preliminary Schedule ) March 26, 2012: opening comments April 16, 2012: reply comments April 23, 2012: motions for hearing 5

6. Proposed Rules a utility can only market or lobby against a CCA program through an independent shareholder funded marketing division support services rendered by ratepayer funded divisions to a utility’s marketing division will be provided at full-cost ensure that a utility marketing division should not have access to competitively sensitive information or proprietary information 6

7. Question posed by CPUC What enforcement procedures are needed to enable an expedited resolution of complaints when a local government believes a utility is not cooperating with CCA program implementation? 7

8. Proposed Rules Regarding Enforcement Procedures a complaint shall be served on the utility and shall be accompanied by evidence and testimony supporting that complaint the complaint shall be answered within 15 days the CPUC will assigned a Judge and conduct evidentiary hearings the CPUC can impose fines and injunctive relief a complaint will be resolved within 180 day 8

9. How to get involved? to add to the R.12-02-009 service list: email Process Office Process_Office@cpuc.ca.govProcess_Office@cpuc.ca.gov or, contact the CPUC’s Public Advisor – Public.advisor@cpuc.ca.gov (415) 703-2074 Public.advisor@cpuc.ca.gov 9