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CPUC Public Agenda 3296 Thursday, June 21, 2012, 9:00 a.m. San Francisco, CA

CPUC Public Agenda 3296 Thursday, June 21, 2012, 9:00 a.m. San Francisco, CA. Commissioners: Michael R. Peevey Timothy Alan Simon Michel Peter Florio Catherine J.K. Sandoval Mark J. Ferron www.cpuc.ca.gov. Public Comment.

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CPUC Public Agenda 3296 Thursday, June 21, 2012, 9:00 a.m. San Francisco, CA

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  1. CPUC Public Agenda 3296Thursday, June 21, 2012, 9:00 a.m.San Francisco, CA Commissioners: Michael R. Peevey Timothy Alan Simon Michel Peter Florio Catherine J.K. Sandoval Mark J. Ferron www.cpuc.ca.gov

  2. Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must sign up with the Public Advisor’s Office table before the meeting begins. If an individual has signed up using the electronic system on the Commission’s website, they must check in with the Public Advisor’s Office on the day of the meeting, by the sign-up deadline. Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers the time limit may be reduced to 1 minute. 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: Item: 10 & 21 All items on the Closed Session Agenda

  3. Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must sign up with the Public Advisor’s Office table before the meeting begins. If an individual has signed up using the electronic system on the Commission’s website, they must check in with the Public Advisor’s Office on the day of the meeting, by the sign-up deadline. 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. The following items are NOT subject to Public Comment: Item: 10 & 21 All items on the Closed Session Agenda

  4. Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must sign up with the Public Advisor’s Office table before the meeting begins. If an individual has signed up using the electronic system on the Commission’s website, they must check in with the Public Advisor’s Office on the day of the meeting, by the sign-up deadline. 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: 10 & 21 All items on the Closed Session Agenda

  5. 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, 2, 3, 7, 8, 9, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 31, 32, 33, 34, 36 & 37 • 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, 42, 46, 48, 49, 52 & 56 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. • Item: 47has been withdrawn. • The following items have been held to future Commission Meetings: • Held to 7/12/12: 6, 13, 35, 41, 43, 45, 50, 51, 54 & 55 • Held to 8/2/12: 4, 5, 10, & 30

  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: www.cpuc.ca.gov. • Late changes to agenda items are available on the Escutia Table.

  7. Regular Agenda – Other Utility Orders Item #10 [11340] The Consumer Protection and Safety Division's Settlement Agreement I09-01-018 Investigation on the Commission’s Own Motion into the Operations and Practices of Southern California Edison Company, Cellco Partnership LLP d/b/a Verizon Wireless, Sprint Communications Company LP, NextG Networks of California, Inc. and Pacific Bell Telephone Company d/b/a AT&T California and AT&T Mobility LLC, Regarding the Utility Facilities and the Canyon Fire in Malibu of October 2007. Adjudicatory Comr. Simon/ Judge Kenney ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Approves a settlement agreement between the Commission’s Consumer Protection and Safety Division and the following Respondents: AT&T Mobility LLC, Sprint Telephony PCS, L.P., and Cellco Partnership LLP, d/b/a Verizon Wireless. The settlement resolves all issues regarding the Settling Respondents’ involvement with the Malibu Canyon Fire in October of 2007. • Requires the Settling Respondents to pay $12 million. Of this amount, $6.9 million will be paid to the State’s General Fund and $5.1 million to the Enhanced Infrastructure and Inspection Fund (EIIF) that will be established pursuant to the settlement agreement. The money paid to the EIIF will be used to strengthen utility poles in Malibu Canyon and to conduct a statistically valid survey of joint-use poles in Southern California Edison Company’s (SCE) service territory for compliance with General Order (GO) 95 safety factor requirements. • The Commission’s approval of the Settlement Agreement is subject to the following conditions: • (1) The Settling Respondents shall: (a) establish a bank account to receive and disburse funds for the EIIF, and (b) deposit $5.1 million into the EIIF bank account within 45 days from the effective date of today’s decision. • (2) If $5.1 million is not adequate to accomplish the objectives of the EIIF that are specified in the settlement agreement, the Settling Respondents shall deposit sufficient additional funds into the EIIF to complete these objectives. • (3) The following activities shall be completed within 18 months: conducting a statistically valid survey of joint-use poles in SCE’s service territory for compliance with GO 95 safety factor requirements. • (4) The following activities shall be completed within 30 months: upgrading the safety factor for utility poles along 3.38 miles of Malibu Canyon Road. • (5) The EIIF shall only pay for material, labor, and services that are directly related to Items 3 and 4 above. The EIIF shall not pay for internal administrative and overhead costs incurred by the Settling Respondents. • ESTIMATED COST: • There are no costs to customers.

  8. Regular Agenda – Energy Orders Item #38 [11149] Sacramento Natural Gas Storage, LLC for a Certificate of Public Convenience and Necessity to Construct and Operate a Gas Storage Facility A07-04-013 Application by Sacramento Natural Gas Storage, LLC, for a Certificate of Public Convenience and Necessity for Construction and Operation of Natural Gas Storage Facilities and Requests for Related Determinations. Ratesetting Comr. Simon/ Judge Smith ----------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Grants Applicant’s request for a certificate of public convenience and necessity (CPCN) to construct and operate the Sacramento Natural Gas Storage Facility (Proposed Project) to provide natural gas storage services at market based rates, and certifies the environmental impact report (EIR) for the Proposed Project. • The EIR identifies significant environmental impacts that can not be mitigated to less than significant levels. • Finds that the Proposed Project’s benefits justify its approval despite its unavoidable environmental effects, and conditions the CPCN on the mitigation measures set forth in the EIR and other requirements established pursuant to recently-enacted legislation. • Closes the proceeding. • ESTIMATED COST: • $57 million, however, Sacramento Natural Gas Storage, LLC will be an independent storage provider that must bare the entire financial risk of the Proposed Project. • Ratepayers are not at risk if demand for the Proposed Project's gas storage services does not materialize.

  9. Regular Agenda – Energy Orders Item #38a [11150] ALTERNATE TO ITEM 11149 Ratesetting Comr. Simon ------------------------------------------------------------------------------------------------------ • PROPOSED OUTCOME: • This alternate proposed decision (APD) differs from the proposed decision (PD) in that: • Additional insurance coverage is required (Sacramento Natural Gas Storage (SNGS) must obtain and maintain a general liability insurance policy with a minimum policy limit of $4.0 million and minimum umbrella coverage of $100.0 million (the PD requires $2.0 million/$50.0 million). • Requires a surety bond in the amount of $30 million. • SNGS must contribute 0.25 percent of the Proposed Project’s annual gross revenues (estimated to range from $25,000 to $44,000 or more per year) to a community foundation to support community projects and activities that will benefit the entire neighborhood. • SNGS is encouraged to contribute at least 0.1 percent of the Proposed Project’s annual gross revenues to local charitable and non profit organizations. • SNGS is encouraged to annually contribute $50,000/year, or an amount to be agreed upon between SNGS and the City, for the exclusive benefit of Danny Nunn Park facilities and programs, in addition to any dedication of storage lease income the City may make to maintain and improve the Park. • SNGS is encouraged to establish a scholarship fund to award a single four-year engineering scholarship for, at a minimum, $6000/year to cover the cost of tuition and fees for a student attending the California State University - Sacramento, and a single four-year engineering scholarship for, at a minimum, $6000/year to cover the cost of tuition and fees for a student attending the University of California, Davis. • SNGS is encouraged to commit itself to diversity, consistent with General Order 156, by actively recruiting minorities, women, and disabled veterans. • ESTIMATED COST: • $57 million, however, SNGS will be an independent storage provider that must bare the entire financial risk of the Proposed Project. • Ratepayers are not at risk if demand for the Proposed Project's gas storage services does not materialize.

  10. Regular Agenda – Energy Orders Item #38b [11308] ALTERNATE TO ITEM 11149 Ratesetting Comr. Florio ------------------------------------------------------------------------ • PROPOSED OUTCOME: • Denies the Applicant’s request for a certificate of public convenience and necessity to construct and operate the Sacramento Natural Gas Storage Facility to provide natural gas storage services at market based rates. • Certifies the environmental impact report for the Proposed Project. • Finds that after the safety risks outweigh the benefits of the Proposed Project. • ESTIMATED COST: • None.

  11. Regular Agenda – Energy Orders Item #39 [11283] Rules of Compliance with New Renewables Portfolio Standard R11-05-005 Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program. Ratesetting Comr. Ferron/ Judge Simon -------------------------------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Provides rules for retail sellers to: • Calculate and resolve any net deficits in meeting their renewables portfolio standard (RPS) annual procurement target (APT) obligations in 2010 and earlier years. • Make use of the statutory “safe harbor” created by Senate Bill 2 (1X) to excuse certain prior APT deficits. • Apply procurement from RPS procurement contracts or ownership agreements signed prior to June 1, 2010 to RPS procurement obligations in 2011 and later years. • Carry forward banked procurement from contracts or ownership agreements signed prior to June 1, 2010, subject to certain limitations. • Meet the procurement quantity requirements set in Decision 11-12-020. • Use procurement from contracts of less than 10 years’ duration to meet RPS procurement requirements. • Meet the portfolio balance requirements set forth in Pub. Util. Code § 399.16(c). • Apply excess procurement in one compliance period to future compliance periods, subject to certain limitations. • Report annually to the Commission on RPS procurement and compliance. • Report to the Commission within 60 days of the effective date of this decision on any net deficits in meeting APT for 2010 and prior years and on meeting the statutory safe harbor requirements. • Request a reduction of the portfolio balance requirements and/or a waiver of the procurement quantity requirements at the end of a compliance period. • Authorizes the Director of Energy Division to develop any forms and information requirements necessary for retail sellers to submit the reports required by this decision. • ESTIMATED COST: • None.

  12. Regular Agenda – Water/Sewer Orders Item #44 [10823] Approval to Implement the Carmel River Reroute and San Clemente Dam Removal Project A10-09-018 Application of California-American Water Company for Authorization to Implement the Carmel River reroute and San Clemente Dam Removal Project and to Recover the Costs Associated with the Project in Rates. Ratesetting Comr. Peevey/ Judge Walwyn ---------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Approves California-American Water Company’s (Cal-Am) request to implement the Carmel River Reroute and San Clemente Dam Removal Project (Project) in partnership with the California State Coastal Conservancy and the National Marine Fisheries Service. • Authorizes ratepayer recovery of Cal-Am’s funding portion of the Project, $49 million, to be paid through a volumetric surcharge on customers’ bills over the next 20 years. • Opens an adjudicatory phase of this proceeding to consider an order to show cause as to why applicant should not be fined or otherwise sanctioned for a failure to comply with Rule 1.1 of the Commission's Rules of Practice and Procedure, and Sections 2107 and 2108 of the Public Utilities Code. • ESTIMATED COST: • $49 million.

  13. Regular Agenda – Water/Sewer Orders Item #44a [11298] ALTERNATE TO ITEM 10823 Ratesetting Comr. Sandoval --------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Approves California-American Water Company’s (Cal-Am) request to implement the Carmel River Reroute and San Clemente Dam Removal Project (Project) in partnership with the California State Coastal Conservancy and the National Marine Fisheries Service. • Authorizes ratepayer recovery of Cal-Am’s historical costs accumulated in its San Clemente Dam Memorandum Account. • Authorizes rate base treatment for San Clemente Dam Removal Project costs. • Finds Cal-Am’s pursuit of dam buttressing prudent, reasonable and appropriate to enable it to comply with the California Department of Water Resources Division of Safety and Dams seismic safety requirements while seeking to resolve the issue at least cost to its ratepayers. • Authorizes ratepayer recovery of Cal-Am’s funding portion of the Project through a monthly surcharge on customer’s bills over the next 20 years. • Finds the San Clemente Dam to be used and useful and an ongoing benefit to ratepayers. • Authorizes Cal-Am to file a Tier 3 Advice Letter to request a change in its $49 million Project cap should there be a need to change the cap. • Excludes the transfer of a 77.6 acre land parcel being used for utility purposes and not part of the project from being donated to the project or designated open space. • Finds no Rule 1.1 violation and no need to open an adjudicatory phase of this proceeding. • Finds Planning Conservation League Foundation eligible to seek intervenor compensation. • Closes the proceeding. • ESTIMATED COST: • $49 million project cost. • $27 million Historical San Clemente Dam Memorandum Account Balance. • $76 million in total cost.

  14. Regular Agenda – Water/Sewer Orders Item #45 [11279] Southern California Edison Company’s Catalina Water Company Seeks to Increase Rates by 80% A10-11-009 Application of Southern California Edison Company for Authority to, Among Other Things, Increase Its Authorized Revenues For Santa Catalina Island Water Operations, And to Reflect That Increase In Rates. Ratesetting Comr. Peevey/ Judge Barnett ---------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Disallows approximately $1 million of operating expenses; approximately $8 million in rate base; and by adopting Southern California Edison Company’s alternate rate proposal, shifts $10.7 million of the water company’s increased costs as a one-time cost to electric rates. • The result of our disallowances and adjustments makes no change in the current revenue requirement of $3.948 million. • Closes the proceeding. • ESTIMATED COST: • $10.7 million.

  15. Regular Agenda – Legislative and Other Matters Item #53 [11338] Telecommunications Policies SB 379 (Fuller) ----------------------------------------------------------------------- This bill would clarify that the California High Cost Fund-A (CHCF-A) support can be used for investment in broadband-capable facilities and further directs the California Public Utilities Commission to create a streamlined Uniform Regulatory Framework option for small, rural Local Exchange Carriers that do not participate in the CHCF-A program. (Legislative Subcommittee Recommendation: Oppose unless amended).

  16. Commissioners’ Reports

  17. Management Reports

  18. Regular Agenda – Management Reports and Resolutions Item #57 [11372] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

  19. CPSD Safety Report: Operation Lifesaver Chuck Magee Senior Engineering Specialist, Section/Branch title California Public Utilities Commission June 21, 2012

  20. Operation Lifesaver Presents In the Interestof Safety

  21. California Operation Lifesaver, Inc. • CA Operation Lifesaver, Inc., (OLI) is part of a National Non-Profit Educational Organization • OLI is the primary effort to implement the third “E” of crossing safety, Engineering, Enforcement, and Education. • OLI, through education, seeks to reduce collisions, injuries, and fatalities at: • highway-rail grade crossings and • on the railroad rights-of-way

  22. Highway-rail grade crossing collisions and pedestrian trespass on tracks together account for over 95% of all railroad fatalities nationally.

  23. 2011 CA Grade Crossing Incidents • There were 113 highway crossing incidents in California - an 11% decrease from 2010 • 27 fatalities were recorded at highway-rail grade crossings • 113 non-fatal injuries resulted from train-car collisions

  24. CRITICAL RAIL SAFETY FACTS It takes the average freight train more than a mile to stop. The view from the tracks makes it very difficult to judge the speed of an oncoming train. Most incidents happen with trains traveling slower than 30 mph. The weight ratio between your car and a train is 4000 to 1. Thatʼs equal to the difference between a car and a can of soda.

  25. 2011 CA Rail Trespassing Incidents 103 Trespassing Incidents in 2011. 61 were fatal (5.1% increase from 2010). 42 resulted in injury (18.9% decrease from 2010). In addition, California data shows 67 Suicides (31% increase from 2010).

  26. National Trend – Railroad Incidents

  27. OLI Safety Tips for Drivers Trains and cars don't mix. Never race a train to the crossing — even if you tie, you lose. The train you see is closer and faster moving than you think. If you see a train approaching, wait for it to go by before you proceed across the tracks. Be aware that trains cannot stop quickly. Even if the locomotive engineer sees you, a freight train moving at 55 miles per hour can take a mile or more to stop once the emergency brakes are applied. That's 18 football fields! Never drive around lowered gates — it's illegal and deadly. If you suspect a signal is malfunctioning, call the 1-800 number posted on or near the crossing signal or your local law enforcement agency. Do not get trapped on the tracks; proceed through a highway-rail grade crossing only if you are sure you can completely clear the crossing without stopping. Remember, the train is three feet wider than the tracks on both sides. If your vehicle ever stalls on a track with a train coming, get out immediately and move quickly away from the tracks in the direction from which the train is coming. If you run in the same direction the train is traveling, when the train hits your car you could be injured by flying debris. Call your local law enforcement agency for assistance. At a multiple track crossing waiting for a train to pass, watch out for a second train on the other tracks, approaching from either direction. When you need to cross train tracks, go to a designated crossing, look both ways, and cross the tracks quickly, without stopping. Remember it isn't safe to stop closer than 15 feet from a rail. ALWAYS EXPECT A TRAIN! Freight trains do not follow set schedules.

  28. OLI Safety Tips for Pedestrians Do not cross the tracks immediately after a train passes. A second train might be blocked by the first. Trains can come from either direction. Wait until you can see clearly around the first train in both directions. Flashing red lights indicate a train is approaching from either direction. You can be fined for failure to obey these signals. Never walk around or behind lowered gates at a crossing, and DO NOT cross the tracks until the lights have stopped flashing and it's safe to do so. Do not hunt, fish or bungee jump from railroad trestles. There is only enough clearance on the tracks for a train to pass. Trestles are not meant to be sidewalks or pedestrian bridges! Never walk, run, cycle or operate all terrain vehicles (ATVs) on railroad tracks, rights-of-way or through tunnels. Do not attempt to hop aboard railroad equipment at any time. A slip of the foot can cost you a limb or your life. Be aware trains do not follow set schedules. Any Time is Train Time! The only safe place to cross is at a designated public crossing with either a cross-buck, flashing red lights or a gate. If you cross at any other place, you are trespassing and can be ticketed or fined. Cross tracks ONLY at designated pedestrian or roadway crossings. Railroad tracks, trestles, yards and equipment are private property and trespassers are subject to arrest and fine. If you are in a rail yard uninvited by a railroad official you are trespassing and subject to criminal prosecution; you could be injured or killed in a busy rail yard. It can take a mile or more to stop a train, so a locomotive engineer who suddenly sees someone on the tracks will likely be unable to stop in time. Railroad property is private property. For your safety, it is illegal to be there unless you are at a designated public crossing. Trains overhang the tracks by at least three feet in both directions; loose straps hanging from rail cars may extend even further. If you are in the right-of-way next to the tracks, you can be hit by the train.

  29. CPUC Operation Lifesaver Volunteers • Michael Yuan • Dave Stewart • Felipe Ayala • Linda Passini • George Erickson • Irma Ramos • Jim Hernandez • Jim Esparza • Greg Shivy • John Healy • Julie Watson • Chuck Magee • Carlos Tapia CPSD currently has 13 volunteers that participate in presentations, community special events, and Driver’s Education classes:

  30. California Operation Lifesaver Inc In 2011 CA volunteers shared the OLI Safety Message with 136,757 people CA OLI recognizes and appreciates all volunteers. Annually, CA OLI gives a special recognition to the top volunteer in the state with the “Gary L. Bartlett Award of Excellence”

  31. Gary L. Bartlett Award of Excellence The Gary L Bartlett ward of Excellence is the highest form of recognition for California Operation Lifesaver volunteers who have made an outstanding contribution to CAOL. Dave Stewart, CPSD-Rail Crossings Engineering Section Utilities Engineer received the top honors for 2011 earlier this month for his overall commitment to CAOL and his special attention to the North Coast areas that are once again seeing trains after a 10 year absence!

  32. Our Message is for Everyone

  33. OLI Presentation to School Children at the CPUC Halloween 2012

  34. LOOK, LISTEN & LIVE! ®

  35. Regular Agenda – Management Reports and Resolutions Item #57 [11372] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

  36. Management Reports

  37. The CPUC Thanks YouFor Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: July 12, 2012, at 9:00 a.m. in San Francisco, CA

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