CPUC Adopts Energy Action Plan II

The California Public Utilities Commission approved the second interagency Energy Action Plan. A day earlier, the California Energy Commission put off adopting the same plan in response to the governor's long-awaited energy policy letter. The CPUC also voted to allow San Diego Gas & Electric to recover more than $40 million in costs related to an intense 2003 wildfire. The energy action plan "provides California with a roadmap of the actions necessary to ensure the state meets its energy needs going forward, while controlling costs, maintaining leadership on energy efficiency and renewables and addressing global climate change," stated CPUC president Mike Peevey. Also at its August 25 meeting, the CPUC on a 5-0 vote approved commissioner Susan Kennedy's alternate decision granting recovery of SDG&E's $41 million claim for the cost of responding to a 2003 wildfire. Kennedy'?s decision gives the utility about $1 million more than the one proposed by administrative law judge Doug Long. The summer wildfire two years ago "was the largest disaster of this type ever to occur in California," Kennedy said. "SDG&E did an amazing job in responding to the emergency." Therefore, she objected to applying a standard test on whether the utility kept a close watch on its vendors' costs. Close to 400,000 acres burned, 2,400 homes were destroyed, and 108,000 customers were without power for a week. A few thousand poles and hundreds of transformers and other utility equipment had to be replaced. The Utility Consumers' Action Network took issue with a number of SDG&E's claims, including the vendors' bills of $5.4 million. The consumer advocate argued that $700,000 of the cost for drink and food could not be justified. The Office of Ratepayer Advocates disagreed and found the utility's contested claims reasonable under the circumstances. ORA called only for the subtraction of $9,146 spent on advertisements thanking other utilities for their assistance, which Kennedy incorporated in her decision. Also adopted was Southern California Edison's proposal to spread the cost of revenue shortfalls related to subsidized billing required by legislation enacted during the energy crisis. The shortfall associated with customers whose power use is 130 percent of baseline or lower will be collected from other residential customers. Pacific Gas & Electric's renewables contract with PPM Energy for 75 MW of wind power in Solano County also got the green light. PG&E said the deal allows it to meet the requisite minimum 1 percent annual increase in renewables purchases. The CPUC also formally established a voluntary alternative dispute resolution program. It is an expansion of an existing program aimed at increasing stakeholder participation and saving time and money. Lastly, more tweaking of the CPUC's legislatively mandated power plant operation and maintenance standards was approved. It requires utilities to file preliminary reports on qualifying facility data by November.

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CPUC Adopts Energy Action Plan II

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