THE SENATE COMMITTEE ON
ENERGY, UTILITIES AND
COMMUNICATIONS WILL NOT COME TO
ORDER. GOOD MORNING, EVERYONE AS
WE CONTINUE TO TAKE SOME
PRECAUTIONS TO MANAGE THE
ONGOING COVID 19 RISKS, THE
SENATE CONTINUES TO WELCOME THE
PUBLIC AND HAS PROVIDED ACCESS
AND TO BOTH IN PERSON AND
TELECONFERENCE PARTICIPATION FOR
PUBLIC COMMENT. FOR INDIVIDUALS
WISHING TO PROVIDE PUBLIC
COMMENT VIA TELECONFERENCE
SERVICE. THE PARTICIPANTS OF
FREE NUMBER AND ACCESS CODE IS
POSTED ON OUR COMMITTEE WEBSITE.
IT WILL BE DISPLAYED ON THERE IT
IS. IT'S ON THE SCREEN AND I
WILL ANNOUNCE IT NOW TODAY'S
PARTICIPANTS, BUT TODAY'S
PARTICIPANT NUMBER IS 1877226 81
63. AND THE ACCESS CODE IS 736
28 33. I WILL MAINTAIN DECORUM
DURING THE HEARING, AS IS
CUSTOMARY AND ANY INDIVIDUAL WHO
HAS DISRUPTIVE MAY BE REMOVED
FROM THE REMOTE MEETING SERVICE
OR HAVE THEIR CONNECTIONS MUTED.
WE ALSO HAVE. REPRESENTATIVES
FROM THE CALIFORNIA PUBLIC
UTILITIES COMMISSION. AND THE
PUBLIC ADVOCATE'S OFFICE OR
PARTICIPATING REMOTELY. FOR OUR
REMOTE PARTICIPANTS. PLEASE MUTE
YOUR PHONES OR COMPUTERS. THIS
WILL GREATLY AID IN ELIMINATING
ANY ACOUSTIC FEEDBACK. I ASKED
THAT EVERY TIME YOU WISH TO BE
RECOGNIZED THAT YOU USED TO
RAISE YOUR HAND FEATURE IN THE
PROGRAM EACH TIME YOU ARE
RECOGNIZED TO SPEAK A POP UP
WINDOW WILL APPEAR ASKING YOU TO
IF YOU WOULD LIKE TO BE MUTED.
PLEASE SELECT AND MUTE BEFORE
YOU BEGIN SPEAKING. OR I T
PERSONNEL WILL PUT IT BACK ON
MUTE WHEN YOU ARE DONE ONCE
RECOGNIZED TO SPEAK, PLEASE MAKE
SURE YOU CAN BE SEEN ON THE
SCREEN. STATE YOUR NAME AND THEN
YOU'RE READY TO ADDRESS THE
COMMITTEE FOR TODAY'S HEARING
WILL BE HEARING ALL OF THE
PANELS HAVE WITNESSES ON THE
AGENDA PRIOR TO TAKING ANY
PUBLIC COMMENT. ONCE WE'VE HEARD
ALL THE WITNESSES WILL HAVE
ENOUGH, A PUBLIC COMMENT PERIOD
FOR THOSE WHO WISH TO COMMENT ON
THE TOPICS ON TODAY'S AGENDA.
TODAY'S HEARING IS THE ANNUAL
UPDATE AND OVERSIGHT HEARING OF
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION, THE CPUC AND THE
PUBLIC ADVOCATE'S OFFICE AT THE
CPUC, FORMERLY KNOWN AS THE
OFFICE OF REPAIR ADVOCATES. THIS
IS THE FIRST PRESENTATION BY THE
CPUC PRESIDENT ELLIS REYNOLDS
AND DIRECTOR OF THE PUBLIC
ADVOCATE'S OFFICE MATT BAKER TO
THIS COMMITTEE. AS THEY WERE
BOTH APPOINTED BY GOVERNMENT
GOVERNOR NEWSOM SINCE OUR
PREVIOUS ANNUAL OVERSIGHT
HEARING LAST AUGUST. WHILE
STATUTORILY REQUIRED OR
OVERSIGHT HEARING ALLOWS MEMBERS
OF THE COMMITTEE AND THE PUBLIC
TO RECEIVE AN UPDATE FROM THE
CPUC ON THE MYRIAD OF ISSUES
BEFORE THE COMMISSION. THESE
ISSUES INCLUDE ELECTRIC GAS,
WATER AND ELECTRIC UTILITY BILL
AFFORDABILITY AND DISCONNECTIONS
ELECTRIC GRID RELIABILITY
UTILITY CAUSED WILDFIRES,
BROADBAND SERVICE EXPANSION AND
ACCESS TARIFFS ON DISTRIBUTED
ENERGY RESOURCES AND MANY MORE
ISSUES. THE CPUC HAS A
CRITICALLY IMPORTANT ROLE.
HOWEVER IT IS A ROLE THAT IS
OFTEN IN COORDINATION WITH OTHER
AGENCIES, DEPENDING ON THE ISSUE
, AND NOT EXCLUDING THE
LEGISLATURE IN THAT PROCESS. THE
IMPORTANCE TO THIS COMMITTEE.
THE ISSUE OF REVIEWING UTILITY
WEALTH OF IRON MEDICATION PLANS
HAS BEEN TASKED TO THE OFFICE OF
ENERGY, INFRASTRUCTURE AND
SAFETY. WHILE THE CPUC MAINTAINS
ITS ROLE IN REVIEWING THE
PRUDENCE E OF COSTS OF THESE
PLANS TO ENSURE THEIR JUST AND
REASONABLE ELECTRIC IT GREATER
RELIABILITY IS A COORDINATED
EFFORT WITH THE CALIFORNIA
INDEPENDENT SYSTEM. OPERATOR
KAIZU. AND CALIFORNIA ENERGY
COMMISSION. LAST YEAR, WE HEARD
FROM ALL THREE ENTITIES ABOUT
THEIR COORDINATION EFFORTS TO
PREVENT FUTURE ELECTRICITY
SUPPLY CHALLENGES FOLLOWING THE
AUGUST 2020 ROTATING OUTAGES.
NONETHELESS THE ROLE OF THE CPI
IS ONE THAT IS CRITICAL TO
ACHIEVING SAFE, RELIABLE AND
AFFORDABLE UTILITY SERVICE,
WHILE ATTAINING THE STATE'S
ENERGY AND CLIMATE POLICIES. AT
A TIME WHEN WE'RE JUST COMING
OUT OF THE PANDEMIC. THERE IS A
NEED TO ENSURE THAT CALIFORNIA
RESIDENTS STRUGGLING TO PAY
THEIR UTILITY BILLS RECEIVED THE
ASSISTANCE OF FORDED BY THE
LEGISLATURE AND THE GOVERNOR.
AND, UM. AND WHICH IS NOW THREE
BILLION. TO ADDRESS UTILITY
ARREARAGES TWO BILLION FOR
ENERGY AND ONE BILLION FOR
WATER. AND THOSE ARE FOR THE
BILLS THAT WE'VE PROVIDED
ASSISTANCE TO THE PUBLIC ON WE
MUST ALSO ENSURE THAT SAFETY
CONTINUES TO RECEIVE THE
IMPORTANT ATTENTION IT DESERVES
. WHETHER WE ARE TALKING ABOUT
GAS PIPELINES OR ELECTRIC
UTILITY INFRASTRUCTURE ELECTRIC
RELIABILITY, WHICH HAS MANY
DIMENSIONS, NOT STRICTLY
INSURANCE SUPPLY, BUT ENSURING
THE ELECTRON FROM THE SUPPLY
REACHES THE CUSTOMERS. BROADBAND
ACCESS HAS PROVEN TO BE MORE
CRITICAL TO DAILY LIFE. THE CPUC
ALSO HAS AN IMPORTANT ROLE IN
THE STATES BUILD OUT OF THE
INFRASTRUCTURE AND AUTHORITY
OVER PROVIDERS TO ENSURE
RESIDENTS RECEIVE ACCESS TO
SERVICE. I LOOK FORWARD TO THE
CPUC PRESENTATION TO ADDRESS
THESE AND OTHER ISSUES. NOW
LET'S HEAR FROM OUR PURSE. FIRST
PRESENTERS CPUC PRESIDENT ELLIS
REYNOLDS. WELCOME PRESIDENT RENT
REYNOLDS AND YOUR STAFF, AND I
UNDERSTAND SHE IS WITH US NOW
VIA THE TELECONFERENCE SERVICE,
AND SHE IS NOW ON THE SCREEN.
HELLO? WELCOME. THANKS FOR
JOINING US. THANK YOU VERY MUCH
SHARE HUESO AND GOOD MORNING TO
YOU, CHAIR AND COMMITTEE
MEMBERS. THANK YOU FOR INVITING
ME HERE TODAY TO PROVIDE AN
OVERVIEW OF THE CALIFORNIA
PUBLIC UTILITIES COMMISSIONS
ACTIVITIES OVER THE PAST YEAR.
I'M ALICE REYNOLDS, PRESIDENT OF
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION, AND IT IS AN HONOR
TO BE HERE. I WANTED TO START BY
INTRODUCING MY COLLEAGUES WHO
ARE HERE WITH ME TODAY AND WILL
BE AVAILABLE FOR QUESTIONS.
RACHEL PETERSON, OUR EXECUTIVE
DIRECTOR OF THE PUC. LU
TESTIFY, EXECUTIVE DEPUTY
EXECUTIVE DIRECTOR FOR ENERGY
AND CLIMATE POLICY, AND ROB
OSBORNE, DIRECTOR OF THE
COMMUNICATIONS DIVISION. BEFORE
I BEGIN. I ALSO WANT TO EXPRESS
ESPECIALLY THANK YOU TO YOU.
CHAIR HUESO FOR YOUR LEADERSHIP
AND PARTNERSHIP WITH THE
COMMISSION DURING YOUR TENURE IN
THIS CITY SENATE COMMITTEE ON
BEHALF OF MYSELF AND THE PSC
STAFF. I CAN TELL YOU HOW MUCH
WE HAVE APPRECIATED YOUR END UP
COLLABORATIVE PERSPECTIVE ON THE
COMMISSION'S ESSENTIAL WORK OVER
MANY YEARS. FOR THE BENEFIT OF
ALL CALIFORNIANS. WITH THAT I
WILL BEGIN MY PRESENTATION. AS
YOU WERE ALL KEENLY AWARE, THE
COMMISSION OVERSEES MANY ISSUES
THAT DIRECTLY IMPACT THE LIVES
OF THE PUBLIC. ONE OF THE THINGS
WE HAVE BEEN WORKING ON THIS
YEAR, IS CONTINUING TO ENGAGE
WITH THE PUBLIC AND ENCOURAGING
PUBLIC PARTICIPATION IN THE WORK
OF THE COMMISSION, ESPECIALLY AS
THE PANDEMIC REMAINS PRESENT.
ALL COMMUNITIES LARGE AND SMALL
, RURAL AND URBAN, AS WELL AS
TRIBAL GOVERNMENTS ARE IMPORTANT
TO OUR DECISIONS. AND THOSE
COMMUNITIES THAT HAVE BEEN
UNDERREPRESENTED IN THE PAST
DESERVE EVEN MORE ATTENTION AND
CONSIDERATION. WE'RE WORKING TO
BE TRANSPARENT IN OUR DEALINGS
AND SERVED WITH A FOCUS ON THE
STATE'S MOST VULNERABLE AND
IMPACTED RESIDENTS. IT IS ALSO
WORTH NOTING THAT THE SERVICE
PROVIDERS FROM THE REGULATE
DRIVE THE ENTIRE STATE, THE
FIFTH LARGEST ECONOMY IN THE
WORLD, THEY MUST PROVIDE THE
POWER, WATER, TRANSPORTATION AND
COMMUNICATIONS SERVICES TO MEET
OUR 21ST CENTURY NEEDS. YOU SEE
, WE'RE LASER FOCUSED ON
CONSUMER PROTECTION,
AFFORDABILITY, SAFETY AND
RELIABILITY OF UTILITY SERVICES
, TRANSITIONING TO A CLEAN
ENERGY SYSTEM AND EQUITY. WE
CARRY FORWARD A VISION TO
ACHIEVE THE BROAD GOALS OF THE
STATE WHILE PROTECTING THE
RATEPAYERS WHO DEPEND ON
ESSENTIAL SERVICES AND CENTERING
THE TRANSFORMATION ON EQUITY. I
WANTED TO TOUCH ON A FEW
SPECIFIC TOPICS THIS MORNING,
STARTING WITH THE ISSUE OF
KEEPING THE LIGHTS ON. THE
COMMISSION IS IN AN ALL HANDS ON
DECK TO MODE TO ENSURE THE
RELIABILITY OF OUR ELECTRIC
SYSTEM FOR CALIFORNIANS THIS
SUMMER. WE'RE DOING THIS AMID
THE FACTS THAT WE CAN ALL SEE ON
THE GROUND IN OUR DAILY LIVES
THAT ARE CHANGING CLIMATE IS
MAKING EXTREME WEATHER EVENTS
MORE FREQUENT AND SEVERE
WILDFIRES, DROUGHT AND EXTREME
HEAT EVENTS ALL THREATENED
ENERGY RELIABILITY. SINCE 2020.
WE HAVE WORKED TOGETHER WITH
CALIFORNIA'S OTHER ENERGY
AGENCIES, THE CALIFORNIA ENERGY
COMMISSION AND CALIFORNIA
INDEPENDENT SYSTEM, OPERATOR OR
CASE SO AS WELL AS THE
CALIFORNIA AIR RESOURCES BOARD
TO QUICKLY INCREASE ENERGY
SUPPLY AND DECREASED A MAN AT
THE CRITICAL NET PEAK PERIOD
DURING THE SUMMER MONTHS. FOR
EXAMPLE, CALIFORNIA'S BATTERY
STORAGE CAPACITY HAS SKYROCKETED
WITH A 24 FOLD INCREASE FROM A
MINOR AMOUNT ABOUT 200 MEGAWATTS
IN 2020. TO ALMOST 4000
MEGAWATTS EXPECTED BY THE END OF
THIS SUMMER. AND WE'VE SEEN THAT
THESE BATTERIES WORK WITH THE
GRID EXACTLY AS NEEDED. CHARGING
DURING THE DAY WHEN SOLAR IS
PLENTIFUL AND JUST CHARGING IN
THE EVENING AS SOLAR GOES, OUR
SOLAR POWER GOES TO ZERO. WE
HAVE ALSO MODIFIED OUR DEMAND
RESPONSE PROGRAMS OF ALL TYPES
TO INCREASE PARTICIPATION,
INCLUDING CREATING A NEW PILOT
EMERGENCY LOAD REDUCTION
PROGRAM. THAT PROGRAM HAS
INCREASED ITS ENROLLMENT LEVELS
FROM 175 MEGAWATTS LAST YEAR TO
750 MEGAWATTS AND COUNTING THIS
YEAR. WE HAVE ALSO ORDERED THE
UTILITIES TO MODIFY THEIR
CRITICAL PEOPLE PRICING PROGRAMS
AND ESTABLISHED TO DYNAMIC GREAT
PILOT PROGRAMS TO TEST THE
EFFECTIVENESS OF CUSTOMER
RESPONSE TO ELECTRICITY RATES
THAT CHANGE RAPIDLY DURING GRID
EMERGENCIES. WE HAVE INCREASED
ENERGY EFFICIENCY PROGRAMS AND
AUTHORIZED A NEW PROGRAM FOR
RAPID DEPLOYMENT OF EFFICIENT
EQUIPMENT. AND APPLIANCES THAT
MAXIMIZE ENERGY SAVINGS AT PEAK
OR NOT PEAK TIMES AS WELL AS A
222.5 MILLION SMART THERMOSTAT
INCENTIVE PROGRAM THAT WILL
ENCOURAGE CUSTOMERS TO REDUCE
AIR CONDITIONING USAGE A FEW
DEGREES DURING CRITICAL TIMES.
FINALLY WE HAVE APPROVED TWO
MORE YEARS OF FUNDING FOR THE
STATEWIDE FLEX ALERT PROGRAM,
INCLUDING CREATING A PROGRAM TO
PROVIDE COMPENSATION FOR
RESIDENTIAL CUSTOMERS WHO
REDUCED DEMAND. DURING FLEX
ALERT EVENTS. THESE SUMMER,
RELIABLY ACTIONS ARE IN MOTION
CONCURRENTLY WITH LONGER TERM
PLANNING ACTIONS THAT I WOULD
LIKE ALSO LIKE TO DISCUSS THE
COMMISSION AND OUR SISTER
AGENCIES COLLABORATED AND
DEVELOPING THE JOINT AGENCY. SB
100 REPORTS THAT ASSESS VARIOUS
PATHWAYS FOR MEETING ARE 100%
CLEAN ENERGY GOAL BY 2045. AND
WE COLLABORATED ON THE
GOVERNOR'S 60 DAY, EMERGENCY
PROCLAMATION REPORT OUTLINING
LEGISLATIVE AND REGULATORY
RECOMMENDATIONS TO ACCELERATE
PROGRESS TOLD TOWARD OUR CLEAN
ENERGY GOALS. ARTORGANIZATIONS
CONTINUE TO JOINTLY CARRY OUT
CRITICAL PLANNING EFFORTS THAT
FACILITATE THE INFRASTRUCTURE
BUILD OUT NECESSARY TO DRIVE FOR
CLEAN ENERGY ECONOMY. THE C P.
U. C S PRIMARY ROLE IS TO ENSURE
THAT ALL LOADS SERVING ENTITIES
UNDER OUR JURISDICTION THE
INVESTOR AND UTILITIES, THE
COMMUNITY CHOICE AGGREGATORS AND
THE DIRECT ACCESS PROVIDERS.
PROCURING ENOUGH RESOURCES TO
MEET INCREASED DEMAND FROM
CLIMATE CHANGE INDUCED HEAT
EVENTS AND INCREASED
ELECTRIFICATION OF OUR
TRANSPORTATION AND BUILDING
SECTORS AS WELL AS REPLACEMENT
OF FOSSIL FUEL RESOURCES
THROUGHOUT THE ENTIRE GRID TO
MAKE THE STATE'S FUTURE
RELIABILITY NEEDS LESS SUMMER,
WE ISSUED AN UNPRECEDENTED
PROCUREMENT ORDER. ORDERING AN
11.5 GIGAWATT INCREASE IN CLEAN
ENERGY PROCUREMENT OVER THE NEXT
FIVE YEARS AS PART OF OUR
INTEGRATED RESOURCE PLANNING
PROCEEDING. THIS WILL RESULT IN
A SIGNIFICANTLY HIGHER PLANNING
BUFFER. THE PLANNING RESERVE
MARGIN THAT WE HAVE THEN WE HAVE
REQUIRED OVER THE PAST 20 YEARS
OF PLANNING EFFORTS IN
ANTICIPATION OF INCREASED
STRESSES ON OUR GRID. WITH THIS
PROCUREMENT ORDER, THE
COMMISSION IS TRACKING THE
GREENHOUSE GAS EMISSION
REDUCTIONS NECESSARY TO CARRY
OT STATEWIDE GOALS SET FORTH IN
THE CALIFORNIA AIR RESOURCES.
BUT FORD SCOPING PLAN AMOUNTING
TO A 35 MILLION METRIC TON
TARGET BY 2032. THIS TARGET
EQUATES TO A RENEWABLE,
RENEWABLE PORTFOLIO STANDARD OF
73% AND A 60 86% GREENHOUSE GAS
FREE RESOURCES BY 2032 ALSO
WORKING ON SMART INVESTMENTS TO
TRANSMISSION TOGETHER WITH THE
CASE OF TRANSMISSION
INVESTMENTS. AND TO SUPPORT THE
DEVELOPMENT OF NEW TRANSMISSION
THAT HAS BEEN IDENTIFIED AS
NEEDED. THE CHI SO AND THE PUC
ARE NOW JOINTLY HOSTING A
TRANSMISSION DEVELOPMENT FORUM
TO PUBLICLY DISCUSSED THE STATUS
OF TRANSMISSION DEPENDENCIES
THAT MAY IMPACT GENERATION
PROJECTS. THIS ONGOING FORUM
WILL GIVE DEVELOPERS LOAD
SERVING ENTITIES AND OTHER
STAKEHOLDERS. MORE INFORMATION
ABOUT TRANSMISSION
INTERCONNECTION ISSUES THAT MAY
IMPACT THEIR DEVELOPMENT
TIMELINES. ANOTHER EFFORT THAT
WE HAVE TAKEN TO FACILITATE
BRINGING NEW ENERGY PROJECTS
ONLINE IS THE FORMATION OF THE
TRACKING, ENERGY DEVELOPMENT OR
TED TASK FORCE. A JOINT EFFORT
WITH GO BIZ C E. C AND K SO
FOCUSED ON BRINGING HIGH
PRIORITY ENERGY PROJECTS ONLINE
BY PLAN DATES. AS I HAVE
DESCRIBED. THE COMMISSION IS ON
EMERGENCY FOOTING WITH RESPECT
TO RELIABILITY IN THE FACE OF
THE GROWING AND COMPLEX IMPACTS
OF CLIMATE CHANGE IN CALIFORNIA.
AND WE ARE ALSO VERY AWARE THAT
THERE REMAINS A RISK OF UTILITY
IGNITED WILDFIRES IN
CALIFORNIA'S HIGH FIRE THREAT
AREAS ALL AROUND THE STATE. AS
THE CHAIRMAN SHIN THIS MORNING,
THE CORE COMPETENCY AND
EXPERTISE FOR PLANS AND ACTIONS
TO REDUCE THE RISK OF UTILITY
WHILE IGNITED. WILDFIRES NOW
LIES WITH THE OFFICE OF ENERGY
INFRASTRUCTURE SAFETY, OR OH, EI
S, WHICH BECAME ITS OWN AGENCY
IN JULY. 2021 PURSUANT TO YOUR
LEGISLATIVE ACTION. THAT
TRANSITION OCCURRED SUCCESSFULLY
AND O I S IS NOW FULLY
INTEGRATED WITH THE CALIFORNIA
NATURAL RESOURCES AGENCY. OH,
YEAH? YES HAS THE PRIMARY
RESPONSIBILITY FOR EVALUATING
AND MAKING DETERMINATIONS ABOUT
THE ELECTRIC INVESTOR OWNED
UTILITY WHILE THEIR MEDICATION
PLANS AT THE SAME TIME, THE
ELECTRIC UTILITIES ARE
CONTINUING ONE OF THEIR RISK
REDUCTION PROGRAMS, THE PUBLIC
SAFETY POWER SHUT OFF PROGRAM OR
PS PS. AS YOU ARE NOW, PS PS IS
A TOOL THE UTILITIES USED TO
AVOID CATASTROPHIC WILDFIRES.
THE PSC HAS BEEN CLEAR FOR MANY
YEARS. WELL THAT WELL, THIS IS A
WELFARE RISK PRODUCTION STRATEGY
. IT MUST BE TOOL OF LAST RESORT
BECAUSE IT IN ITSELF CREATES
MAJOR DISRUPTIONS FOR THE
PUBLIC, AND KURT CAN CREATE ITS
OWN SAFETY CONCERNS. WE HAVE
MADE VERY CLEAR TO THE STATES
INVEST AROUND UTILITIES THAT
EACH YEAR THEY MUST DO
EVERYTHING POSSIBLE TO REDUCE
THE SCOPE, DURATION AND
FREQUENCY OF PS PS EVENTS. JUST
YESTERDAY AND TAKING PLACE RIGHT
NOW WE ARE HOLDING A JOINT
PUBLIC BRIEFING WITH CAL FIRE
CALLOWAY S AND O E. I S TO
REQUIRE EACH OF THE SIX ELECTRIC
CORPORATIONS TO PRESENT THEIR PS
PS PREPAREDNESS FOR 2022. THEY
ARE EACH GIVING UPDATES ON THE
STATUS OF THEIR PREPARATION
EFFORTS, COORDINATION WITH
PUBLIC SAFETY PARTNERS ABILITY
TO NOTIFY OWNERS OF CRITICAL
INFRASTRUCTURE AND FACILITIES
AND PREPAREDNESS. TO NOTIFY
CUSTOMERS. INCLUDING THOSE MOST
VULNERABLE OR WITH ACCESS AND
FUNCTIONAL NEEDS. THERE ARE ALSO
PRESENTING THEIR ACTIONS SINCE
LAST YEAR TO REDUCE THE
FREQUENCY SCOPE AND DURATION OF
PS PS EVENTS. AND LAST, BUT
ABSOLUTELY NOT LEAST I'LL TURN
TO MY TO OUR IMPLEMENTATION OF
BROADBAND FOR ALL. THE PSC HAS
BEEN ESPECIALLY FOCUSED ON
IMPLEMENTING BROADBAND PROGRAMS
STEMMING FROM THE PASSAGE OF THE
TRANSFORM NATIONAL LEGISLATION
FROM LAST YEAR S B 1 56. AND I
WILL OUTLINE A SHORT VERSION OF
WHAT WE HAVE DONE SINCE THAT
BILL PASSED IN FEBRUARY, WE
ADOPTED FINAL PROGRAM RULES FOR
LOCAL AGENCY TECHNICAL
ASSISTANCE, AND WE STARTED
ACCEPTING APPLICATIONS YESTERDAY
ON AUGUST 1ST. ON APRIL 21ST.
THE COMMISSION ADOPTED THE FINAL
PROGRAM RULES, APPLICATION
GUIDELINES AND FUNDING
ALLOCATIONS FOR THE FEDERAL
FUNDING ACCOUNT. IN MAY, THE
COMMISSION ADOPTED NEW RULES AND
FUND ALLOCATIONS FOR THE
BROADBAND PUBLIC HOUSING ACCOUNT
, BROADBAND ADOPTION ACCOUNT AND
THE RURAL AND URBAN BROADBAND
REGIONAL BROADBAND CONSORTIUM
ACCOUNT. OUR STAFF HAD HAD
PARTNERED WITH GO GO BIZ AND I
BANK TO IMPLEMENT THE $750
MILLION BROADBAND LOAN LOSS
RESERVE PROGRAM, WHICH WILL WORK
AS CREDIT ENHANCEMENT AND
PROVIDE COLLATERAL TO LOCAL
GOVERNMENTS AND NON PROFITS FOR
BOND FINANCING TO BUILD OUT
BROADBAND NETWORKS IN THEIR
AREAS. AND THROUGHOUT THESE
IMPLEMENTATION STEPS, OUR STAFF
CONTINUE TO WORK CLOSELY WITH
THE CALIFORNIA DEPARTMENT OF
TECHNOLOGY. OUR TEAM ASSISTED IN
THE PUBLIC COMMENT AND ANCHOR
BUILD OUT PHASES OF THE STATE
WIDE OPEN ACCESS, MIDDLE MILE
PROJECT AND COMMISSION STAFF ARE
COORDINATED, COORDINATING WITH
CDT ON THE INFRASTRUCTURE
INVESTMENT AND JOB ACTS.
BROADBAND INITIATIVES OR I J.
SPECIFICALLY THE BROADBAND
EQUITY ACCESS AND DEPLOYMENT.
THE BEAD FUND FOR WHICH WE
RECENTLY SUBMITTED A LETTER OF
INTENT TO THE N T I A AND ON THE
DIGITAL EQUITY PLANNING GRANT
APPLICATION RECENTLY SUBMITTED
BY C D T BROADBAND, FOR ALL IS A
GENERATIONAL INVESTMENT IN
CALIFORNIA, AND IT IS AN HONOR
TO BE SERVING ON THE COMMISSION
AND IMPLEMENTING THE PROGRAM.
WITH THAT I WILL CONCLUDE MY
REMARKS BY AGAIN EXPRESSING
GRATITUDE TO THE CHAIR AND
COMMITTEE MEMBERS FOR THE
INVITATION TO SPEAK TODAY. THANK
YOU. THANK YOU. WE APPRECIATE
YOUR PRESENTATION VERY MUCH, AND
I WILL GO ANNOUNCE TO THE
MEMBERS OF THE MEMBERS HAVE ANY
QUESTIONS THAT THEY'D LIKE TO
ASK? THE PRESIDENT'S COMMISSION.
SENATOR STERN. THANK YOU, MR
CHAIR. AND, UM THANK YOU, TOO.
PRESIDENT REYNOLDS FOR YOUR
SERVICE, NOT JUST IN YOUR
CURRENT CAPACITY. BUT OVER THE
YEARS, THE STATE OF CALIFORNIA,
UM, STARTING OUT WITH DEFENDING
OUR NATIONS, OUR NATION'S
LEADING CLIMATE LAWS AND AIR
QUALITY LAWS OVER THE AIR
RESOURCES BOARD THROUGH YOUR
SERVICE TO THE GOVERNOR'S OFFICE
AND NOW LEADING THIS COMMISSION.
IT'S UM IT'S STEADYING TO HAVE
THAT KIND OF EXPERIENCE. WE KNOW
THAT IN THE WAKE OF PRESIDENT
BACHELORS WORK, UM ON REALLY
BUCKLING DOWN ON ENFORCEMENT AND
BRINGING RIGOR TO THE RATE
MAKING PROCESS. UM YOU MENTIONED
A BIT ABOUT SORT OF FUTURE
PLANNING EFFORTS. MY FIRST
QUESTION IS ABOUT THE PLANNING
EFFORTS GOING AROUND ELECTRICITY
VERSUS THE PLANNING GOING AROUND
THE GAS SYSTEM. AND WE KNOW IN
THE RECENT HYPER FROM THE C E C.
THEY NOTED THAT THOSE NEED TO BE
MORE INTEGRATED THAT AS WE'RE
THINKING ABOUT THE FUTURE OF THE
GAS SYSTEM, WE ALSO NEED TO BE
THINKING ABOUT THE FUTURE OF
ELECTRIFICATION OF
DECARBONIZATION AND YET IN THE
LONG TERM PROCEEDING UNDERWAY,
IT DOESN'T SEEM TO DOVETAIL BACK
TO THE ELECTRIC SIDE. THE GAS
PROCEEDINGS SERVICES SORT OF
SEEMS TO BE THOUGHT OF ON ITS
OWN TERMS. SO I'M WONDERING IF
YOU ALL HAVE TAKEN A LOOK AT THE
HYPER AND WHAT YOUR PLANS ARE
FOR. FOR THAT KIND OF
INTEGRATION. IT'S SPECIFICALLY
WHEN I THINK ABOUT RELIABILITY,
PINCH POINTS OF OLD DATED
PIPELINES IN THE SYSTEM THAT
HAVEN'T HAD SAFETY CHECKS FOR 50
50 YEARS OR SO CANYON, WHICH IS
AT THE HEART OF MY DISTRICT, BUT
IT'S THERE'S A BROADER CONCERN
ABOUT THE COSTS AROUND
MAINTAINING THAT SYSTEM AND WHAT
THE COST EFFECTIVENESS IS OF
MAKING NEW TRANSITIONS,
ESPECIALLY ON THE RETAIL SIDE,
BUT IN INDUSTRIAL AS WELL, SO
JUST WANTED YOUR COMMENT ON HE
SORT OF PAPER AND
DECARBONIZATION GOALS AND HOW
THEY SQUARE WITH WITH YOUR
PLANNING PROCESS ON THE GAS
SIDE. YES ABSOLUTELY. AND THANK
YOU FOR THE QUESTION. IT IS A
VERY GOOD QUESTION AND SOMETHING
THAT WE HAVE BEEN THINKING ABOUT
A LOT AT THE PUC. AND THIS
REALLY INVOLVES A LOT OF
INTERAGENCY COORDINATION. YOU
MENTIONED THAT PIPER, WHICH IS
THE PLANNING DOCUMENT PREPARED
BY THE CALIFORNIA ENERGY
COMMISSION. UM AND WE HAVE
ABSOLUTELY BEEN TAKING A LOOK AT
THAT AND WORKING CLOSELY WITH
THE C E C. I REALLY THINK THAT
AT THIS POINT, WE'RE WORKING
MORE CLOSELY WITH THE C C AND
THE CAISO THAN EVER BEFORE, AND
THIS IS ABSOLUTELY NECESSARY FOR
THE REASONS THAT YOU'VE
IDENTIFIED. WE ARE AS A STATE
FOCUSED ON DECARBONIZATION, NOT
JUST OF THE TRANSPORTATION
SYSTEM, BUT ALSO OF THE BUILDING
SECTOR AND REALLY WORKING AND
PLANNING FOR, UM, TRANSITION
AWAY FROM FOSSIL FUELS. THE
QUESTION OF THE QUESTIONS YOU'RE
RAISING ABOUT ENSURING THE
SAFETY OF THE GAS SYSTEM AT THE
SAME TIME THAT WE PULL AWAY FROM
USE OF FOSSIL FUELS FOR OUR
BUILDINGS. UM IT'S SOMETHING
THAT IS TAKING A LOT OF
ATTENTION AND THOUGHT ON BEHALF
OF THE C P U. C AND THE C E C.
WE DO HAVE AN OPEN PROCEEDING ON
DECARBONIZATION. SO WE'RE DOING
THAT CONCURRENTLY WITH THE JOINT
AGENCY WORK THAT THE C E C IS
CONDUCTING. I THINK ONE EXAMPLE.
OF THE JOINT WORK IS THE C E. C
S DEMAND FORECAST, WHICH IS A
COMPONENT OF THE HYPER AND THE C
C NOW, MORE THAN EVER BEFORE, IS
BOTH THINKING ABOUT HOW DOES
CLIMATE CHANGE? HOW DO WE
ANTICIPATE THE EFFECTS OF
CLIMATE CHANGE? AND HOW DOES
THAT IMPACT OR DEMAND FORECASTS
WHICH, AS YOU KNOW, IS
INTEGRATED WITH OUR PLANNING
EFFORTS ON THE ELECTRICITY SIDE.
UM BUT ALSO, HOW DOES THE
INCREASED ELECTRIFICATION OF
TRANSPORTATION BUILDINGS? HOW
DOES THAT PLAY INTO THE DEMAND
FORECAST? UM AND SO IT'S REALLY
A DIFFERENT APPROACH THAN HAS
BEEN TAKEN IN THE PAST, WHERE
DEMAND FORECASTING WAS BASED ON
HISTORIC TRENDS, AND SO INSTEAD
OF LOOKING BACKWARDS, WE'RE NOW
LOOKING FORWARD. UM IN THE SAME
WAY. THE PUC IS, UM, ALSO
MATCHING OUR PROCEEDINGS WITH
WHAT WE'RE SEEING IN THE ENERGY
COMMISSION'S ANALYSIS AND
THROUGH THE I BURN PARTICULAR.
UM IN PROCEEDINGS, SUCH AS THE
ALISO CANYON PROCEEDING. AND
SENATOR YOUR LEADERSHIP ON
ELISSA CANYON HAS REALLY BEEN
INSTRUMENTAL AND IN IN DRIVING
THE LEGISLATION THAT ESTABLISHED
THIS DIRECTED CPUC TO OPEN THIS
PROCEEDING, UM, AND THE
PROCEEDING IS TAKING INTO
ACCOUNT THE DECARBONIZATION OF
THE BUILDING SECTOR AND REALLY
KIND OF WHERE WE'RE GOING AS A
STATE. ON DECARBONIZATION AND
HOW OUR GAS SYSTEM WILL FUNCTION
WILL BE USED IN THE FUTURE. UM
SO THOSE ARE SOME GENERAL
THOUGHTS. IF YOU HAVE A FOLLOW
UP QUESTION, I AM HAPPY TO
ANSWER AND ALSO I HAVE A LONG
TESTIFY. THE DIRECTOR OF HER
ENERGY DIVISION WHO CAN BE
AVAILABLE FOR ANY DETAILS. I
APPRECIATE THAT. JUST 11 FINAL
QUESTION. THEN IT QUICK COMMENT
. THE FOLLOW UP QUESTION ON THAT
IS IN THIS NEAR TERM RELIABILITY
CHALLENGE THAT WE'RE SEEKING TO
MEET. WE JUST PASSED SOME MAJOR
LEGISLATION TO GIVE THE GOVERNOR
AUTHORITY WITH DEPARTMENT OF
WATER RESOURCES TO BUILD THIS
STRATEGIC ENERGY RESERVE. UM
THERE'S A CRITICAL ROLE, THOUGH.
FOR THE PUC RIGHT NOW, IN
PROCUREMENT. I THINK IN IN THE L
A ALONE YOU'VE YOU'VE ORDERED
ABOUT 11.5 GIGAWATTS IF I'M NOT
MISTAKEN OF NEW POWER INTO THE
SYSTEM, AND SO I WAS CURIOUS
ABOUT, YOU KNOW, I THINK YOU
WERE HERE DURING THE BROWN
ADMINISTRATION DURING THE LAST
STIMULUS WHEN WE HAD A AH, A
SOCK OF FEDERAL FUNDING. AH THAT
WAS ENOUGH TO SORT OF
SUPERCHARGED THE MARKETPLACE IF
YOU WILL, AND NOW WE HAVE BOTH
MORE ROBUST STATE FUNDING AND
THIS NEW FLEXIBLE RESERVE. SO IS
THERE A WAY FOR THE BUCS SORT OF
PROCUREMENT ORDER. TO GET AHEAD
OF EVEN THE RESERVE TO NOT HAVE
TO RELY ON THE RESERVE STAY IN
YEAR TWO OR YEAR THREE. BUT TO
GET ENOUGH ENERGY STORAGE,
THEY'RE SORT OF, UH, YOU KNOW,
DISPATCH HERBAL CLEAN ASSETS
ONLINE IN THE NEXT STATE. TWO
YEARS. I MEAN, HOW DO YOU THINK
YOU CAN BEAT THE LAST BROWN
ADMINISTRATION IN TERMS OF THE
GIGAWATTS ONLINE AND THEN IN THE
NEXT YEAR TO WHERE EVERYTHING IS
MOVING FAST. WHAT'S YOUR
PROGNOSIS THERE? YES WE
ABSOLUTELY WANT TO TRY AND
THAT'S CERTAINLY WHAT WE HAVE
BEEN LOOKING AT. SO THE IDEA OF
WHAT ARE THE HISTORIC BUILDING%
RATES AND REALLY TAKING INTO
ACCOUNT THOSE THAT ESCALATION
THAT WE SAW DURING THE BROWN
ADMINISTRATION FOR THE ERA FUNDS
WHERE THERE WAS A CONCERTED
EFFORT ON BEHALF OF THE STATE TO
GET PROJECTS DONE QUICKLY TO
TAKE ADVANTAGE OF FEDERAL
FUNDING. SO UM, WE'RE A VALUE
WAITING LESSONS LEARNED FROM
THAT I YOU KNOW, HISTORY AND
THEN ALSO TRYING TO BUILD ON IT
AND DO EVEN BETTER. UM AND I
THINK YOUR QUESTION UM REFLECTS
EXACTLY THE WAY THAT WE'RE
THINKING ABOUT THE STRATEGIC
RESERVE. UM THE STRATEGIC
RESERVE IS A DIFFERENT WAY OF
WHERE A TOOL THAT IS USED TO
ADDRESS THE CIRCUMSTANCES THAT
WE'RE FACING NOW THAT ARE REALLY
UNPRECEDENTED WITH CLIMATE
CHANGE IMPACTS AND THE
UNCERTAINTY. OF CLIMATE CHANGE
AND SOME OF THE SIGNIFICANT
DISRUPTIVE EVENTS THAT WE'VE
SEEN IN THE PAST, WITH WILDFIRES
THREATENING TRANSMISSION LINES
AND EXTREME EVENTS AFFECTING THE
ENTIRE WEST. THE ENTIRE WEST IS
MORE RESOURCE CONSTRAINED THAN
IT HAS IN THE PAST. AND SO
HAVING THAT STRATEGIC RESERVE IN
PLACE THAT IS CONTROLLED BY THE
STATE AND REALLY KIND OF OUTSIDE
OF THE PUC PLANNING PROCESS. IS
A WAY TO MAKE SURE THAT WILL BE
CERTAIN WILL BE AS AS WELL
PREPARED AS POSSIBLE TO
WITHSTAND UNANTICIPATED AND
REALLY MORE EXTREME EVENTS THAN
WE'VE EVEN SEEN IN THE PAST, SO
READY FOR THOSE RELIABILITY
CHALLENGES WELL, ALSO DOING
EVERYTHING WE CAN TO MOVE
FORWARD WITH THE PLANNING THAT
WE NEED TO MEET OUR CLEAN ENERGY
GOALS. AND TO MEET THE INCREASED
DEMAND THAT WE EXPECT TO SEE.
AND SO ON THE PUC SIDE WE ARE
PLAYING AN IMPORTANT ROLE IN
MAKING SURE THAT PROJECTS ARE
ACTUALLY BEING BUILT. SO WE
DON'T WANT THIS TO BE JUST A
PAPER EXERCISE. WHERE YES, WE
HAVE THE 11.5 GIGAWATT ORDER OUT
, BUT WE NEED THE PROJECTS TO
ACTUALLY COME ONLINE. TO PROVIDE
THE CAPACITY THAT IS REFLECTED
IN THAT ORDER. AND PART OF THAT
IS THE TED TASK FORCE THAT I
MENTIONED AT BUILDING ON THAT
THAT JOINT COOPERATION. UM IT'S
REALLY LOOKING HARD AND
ANTICIPATING SUPPLY CHAIN ISSUES
THAT WE ARE ALL AWARE, WELL
AWARE OF IN RECENT YEARS UM SO
THAT WE LOOK AT AND ANTICIPATE
BARRIERS AND WORK TOGETHER IN
WAYS TO GET OVER THEM. IT'S ALSO
UM EXAMINING PERMITTING AND HOW
WE CAN BOTH KEEP, UM
ENVIRONMENTAL, UM, IMPACTS IN
MIND AND ADDRESSED AND ANALYZED
WHILE ALSO MOVING QUICKLY ON THE
CLEAN ENERGY PROJECTS THAT WE
KNOW WE NEED TO COMBAT CLIMATE
CHANGE. MOVING FORWARD. UM, SO A
LOT OF JOINT AGENCY WORK IS
GOING ON ON ALL OF THESE ISSUES,
AND IN PARTICULAR, THE PUC IS
VERY FOCUSED ON THIS. WE HAVE A
FANTASTIC TEAM. UM WHO IS TAKING
TRACKING? REALLY EVERY PROJECT,
UM, THROUGH THE CONTRACTS THAT
ARE LOAD SERVING ENTITIES HAVE
ENTERED INTO AND, UM, BEING
AVAILABLE TO FACILITATE TO WORK
WITH CAISSON AND
INTERCONNECTIONS AND TAKE INTO
ACCOUNT ALL ASPECTS OF PROJECT
DEVELOPMENT. SO REALLY, JUST
OVERALL. YES, WE'RE STUDYING
THAT THE HISTORIC BUILD RATES
AND HOPING TO BEAT THEM. THANK
YOU FOR THAT. AND THE MORE YOU
CAN NOT JUST LET US KNOW, BUT
BUT SHARE WITH THE PUBLIC IN
THAT THIS SORT OF RACE TO GET
CLEAN ENERGY CAPACITY ONLINE TO
THE FUTURE OF RELIABILITY IN
CALIFORNIA. I THINK EVERYONE'S
GOING TO BE KEENLY AWARE, SO THE
MORE YOU CAN SORT OF SHARING AND
B B, UM, YOU KNOW, LET US ALL
HELP ALONG WITH YOU AND LET THE
PUBLIC GET BEHIND IT TOO. I
THINK YOU'LL BUILD MOMENTUM.
THANKS FOR THE TIME, MR CHAIR.
THANK YOU AND I WANT TO THANK TO
PRESIDENT FOR PRESENTATION AND
SHE STARTED OUT BY TALKING ABOUT
THE MOST VULNERABLE POPULATION
AND AFFORDABILITY THAT BEING THE
CASE. I HEARD NOTHING ABOUT NOON
AND NET ENERGY MEETING IS THE
BIGGEST BOONDOGGLE GOING ON IN
THE INDUSTRY RIGHT NOW WE'RE
WORKING IN POOR PEOPLE CONTINUE
TO SUBSIDIZE WEALTHY PEOPLE TO
HAVE SOLAR ON THEIR HOMES. WHEN
IS THE LAST TIME YOU FLEW OVER A
LOW INCOME COMMUNITY AND YOU SAW
SOLAR, BUT EVERY TIME I FLY OVER
MALIBU, BEVERLY HILLS, PALOS
VERDE IS CARAMEL. I SEE SOLAR
JUST I LOSE TRACK OF THE NUMBER
OF SOLAR ROOFTOPS. I SEE. SO
WHEN ARE WE GONNA REALLY ADDRESS
THIS? BECAUSE AGAIN. IT'S A COST
SHIFT OF BILLIONS OF DOLLARS.
WHERE AGAIN IT'S A USELESS
COMMODITY. WE'RE PAYING A RETAIL
RATE FOR WHAT AT BEST SHOULD BE
A WHOLE WHOLESALE PRICE ON A
USELESS ELECTRON. IT SERVES
ABSOLUTELY NO ONE SO WERE WE
WITH THAT? THANK YOU FOR THE
QUESTION, SENATOR. AS YOU NOTED
, WE DO HAVE A OPEN PROCEEDINGS
. SO I'M GOING TO BE A LITTLE
BIT CAREFUL ABOUT MY COMMENTS.
BUT I ALSO WANT TO PROVIDE YOU
WITH AS MUCH INFORMATION AS
POSSIBLE. UM AS YOU'RE LIKELY
AWARE THERE WAS A PROPOSED
DECISION ISSUED IN THE NUM
PROCEEDING IN DECEMBER OF 2021.
AFTER THAT THE ADMINISTRATIVE
LAW JUDGE WHO'S PROVIDED
PRESIDING OVER THE PROCEEDING.
UM ISSUED A RULING. UM IN THE
SPRING, ASKING ADDITIONAL
QUESTIONS ABOUT APPROACHES TO,
UH, THE NAME TARIFF. WE RECEIVED
COMMENTS FROM ALL OF THE PARTIES
ON THIS ADDITIONAL RULING ENDING
ON JULY 1ST. THE FINAL COMMENTS
CAME IN, SO WE'RE CURRENTLY
EVALUATING THOSE COMMENTS AND
WORKING ON THE NEXT PHASES OF
THE PROCEEDING. I WANTED TO NOTE
THAT, UM, WE'RE ALSO THINKING
ABOUT IN IN, YOU KNOW, KIND OF
COORDINATION WITH THE WORK GOING
ON ON THE NIM. UM THEIR RECENT
AUTHORITY THAT THE LEGISLATURE
GRANTED TO THE PUC A VERY
IMPORTANT, UM, PART OF THE
RECENT BUDGET PACKAGE. TO UM TO
DIRECTING THE PUC TO ESTABLISH A
FIXED CHARGE THAT IS INCOME
GRADUATED. SO WE'RE CERTAINLY
TAKING THAT DIRECTION. VERY VERY
SERIOUSLY. UM AND WE'LL BE
WORKING ON THAT TO MAKE PROGRESS
AS SOON AS POSSIBLE. SO I DO
WANT TO STOP THERE IN TERMS OF
THE NUMB, BUT I HEAR YOU ON YOUR
CONCERNS. UM ABOUT COMMUNITIES
AND WILL CERTAINLY TAKE THAT
INTO CONSIDERATION. I APPRECIATE
THAT, BECAUSE AND 2013 I CHEERED
UTILITIES AND COMMERCE IN THE
ASSEMBLY AND HENRY PEREA
AUTHORED A B UH 3 27. I BELIEVE
IT WAS THAT CLEARLY CALLED FOR
ADDRESSING THE NAME ISSUE THEN
AND HERE WE ARE NINE YEARS
LATER. AND WE'RE STILL HAVING
POOR PEOPLE AGAIN SUBSIDIZE
SOMETHING, AND REALLY, I WANT TO
DRIVE HOME THE POINT AGAIN. THIS
IS A USELESS ELECTRON. IT
BENEFITS NO ONE. SO WHY PAY FOR
IT?
THANK YOU. THANK YOU FOR THE
TESTIMONY HERE TODAY AND FOR ALL
THAT YOU ARE DOING, UM MAYBE A
FEW THOUGHTS OF THE PREVIOUS
TOPIC, BUT FIRST I WANTED TO ASK
ABOUT DEMAND RESPONSE.
APPRECIATE BEING ABLE TO ENGAGE
WITH YOUR OFFICE ON THIS, UM
YOUR RESPONSE IS ONE OF THE FEW
THINGS WE CAN DO TO EXPAND.
QUICKLY UM, YOU KNOW THIS SUMMER
NEXT SUMMER. AND. DOES SEEM THAT
HE'LL RP IS A GOOD WAY TO DO
THAT. BUT THAT WE SHOULD BE
PREFERRING TO GET PEOPLE IN. THE
PROGRAMS AREN'T JUST EMERGENCY.
BECAUSE THEY ARE MUCH CHEAPER
AND MORE PREDICTABLE. CURRENTLY
CALIFORNIA LIMITED TO
PARTICIPATING IN ONE DEMAND
RESPONSE PROGRAMS. SO I'VE HEARD
THERE IS SOME CONCERN THAT WE'RE
KIND OF STEALING PEOPLE OUT OF
THOSE CHEAPER MARKET INTEGRATED
PROGRAMS. INTO L R. P SO I GUESS
MY QUESTION IS, WHAT ARE WE
DOING TO GROW THE PIE? E AS WELL
AS GETTING MORE PEOPLE INTO
THESE CHEAPER MARKET INTEGRATED.
PROGRAMS WHERE CAPACITIES BID
INTO THE CASE SO MARKET. YEAH
THANK YOU FOR THE QUESTION. UM
AND I UNDERSTAND THE POINT IS
THAT WE SHOULDN'T NECESSARILY
HAVE TRIED TO ESTABLISH A ONE
SIZE FITS ALL DEMAND RESPONSE
PROGRAM AND SHOVE EVERYBODY INTO
IT BECAUSE WE MIGHT NOT BE
GETTING THE GREATEST BENEFITS OR
THE GREATEST COMPENSATION FOR
CUSTOMERS. AND SO WHAT WE HAVE
DONE, UM IS LOOK AT ALL TYPES OF
DEMAND RESPONSE AND WE'RE IN THE
PROCESS NOW OF, UM, SEEING HOW
THESE DEMAND RESPONSE PROGRAMS
PERFORM AND EVALUATING THEM, AND
WE'VE WE'VE SEEN SOME VERY GOOD
RESULTS, UM, AND ARE MODIFYING
PROGRAMS WITH THAT IN MIND. WE
HAVE PROGRAMS THAT ARE THAT THAT
ARE RUN BY BOTH THE INVESTOR AND
UTILITIES AS WELL AS SOME OF THE
COMMUNITY CHOICE. AGGREGATORS.
UM AND WE'RE CONTINUING TO
EXPLORE ALL TYPES OF I
MENTIONED. WE ALSO HAVE A
THERMOSTAT SMART THERMOSTAT
PROGRAM FOR RESIDENTIAL
CUSTOMERS TO TAKE ADVANTAGE OF
EVEN THE SMALLEST CHANGES SO
THAT WE'RE REALLY LOOKING FOR
WAYS TO INCORPORATE THOSE INTO
THE MARKET. UM AND PROVIDED
COMPENSATION AND INCENTIVES FOR
CUSTOMERS. UM WE'RE ALSO LOOKING
MORE BROADLY AT LOAD FLEXIBILITY
AND JUST OPENED A NEW PROCEEDING
TO EXPLORE INNOVATIVE WAYS, UM,
TO ENCOURAGE FLEXIBLE LOAD TO
INTEGRATE, UM, DISTRIBUTED
ENERGY RESOURCES AND MAKE THE
MOST OF ALL CUSTOMERS' ABILITY
TO SHAPE THEIR LOAD IN RESPONSE
TO THE GRID CONDITIONS. UM I AM
GOING TO SEE IF LUÌN TESTIFY,
WANTS TO ADD ANY ADDITIONAL
DETAIL ABOUT THE VARIOUS
PROGRAMS THAT WE HAVE, BECAUSE I
DO THINK, SENATOR THAT WE'RE YOU
KNOW, WE'RE THINKING ALONG THE
SAME LINES AS YOUR QUESTION
SUGGESTS THAT WE WANT TO MAKE A
MAXIMIZED IN AND RESPONSE BUT
ALSO DO IT SMARTLY SO THAT WE'RE
COMPLEMENTING THE GRID AND NOT
UNDERPAYING BUT ALSO NOT OVER
PAYING CUSTOMERS BUT PROVIDING
ENOUGH INCENTIVES TO DO THIS
RIGHT AND TO MAKE SURE THAT THE
DEMAND RESPONSE RESULTS ARE REAL
AND MEANINGFUL. UM AND AGAIN,
WE'VE WE'VE SEEN SOME GREAT
RESULTS SO FAR, AND WE'RE JUST
LOOKING AT BUILDING ON THOSE, UM
MISS TESTIFY. DO YOU HAVE
ANYTHING TO ADD? THANK YOU,
PRESIDENT REYNOLDS AND GOOD
MORNING CHAIR WHO IS OH, AND THE
MEMBERS. THANK YOU FOR THIS
QUESTION. UM WHAT I WOULD LIKE
TO ADD, IN ADDITION TO WHAT
PRESIDENT REYNOLDS HAS ALREADY
DETAILED IS THAT WE ALSO HAVE
NEW DEMAND RESPONSE APPLICATIONS
THAT HAVE BEEN FILED BY ARGUMENT
TILL IT EASE. AND SO THESE ARE
NEWLY OPENED PROCEEDINGS. UM AND
APPLICATIONS WHERE OUR UTILITIES
ARE PROPOSING. UM ENHANCEMENTS
TO THE DEMAND RESPONSE
PORTFOLIOS, AS WELL AS DEMAND
RESPONSE POLICY MATTERS IN
GENERAL, IN ORDER TO BE
RESPONSIVE TO BOTH THE NEEDS OF
THE GRID AS WELL AS
PARTICIPATING CUSTOMERS. UM
TODAY AS WELL AS YOU KNOW, INTO
THE FUTURE, AND SO THESE ARE
LOOKING AT A 2023 TO 2027
PROGRAM CYCLE. AS REALLY AN
OPPORTUNITY TO NOT ONLY
SIGNIFICANTLY GROWTH, THE SIZE
AND CAPABILITIES OF THE DEMAND
RESPONSE PORTFOLIOS BUT ALSO THE
TEST OUT NEW CONTEXTS AND INVEST
IN OUR DEMAND RESPONSE
INFRASTRUCTURE. AND SO YOU KNOW,
THESE APPLICATIONS ARE LOOKING.
OF COURSE, AT SOME OF OUR CORE
PROGRAMS ARE MANY CORE PROGRAMS
AND DEMAND RESPONSE LIKE THAT
THE BIT OR THE BASE
INTERRUPTIBLE PROGRAM. AT THE
CAPACITY BUILDING PROGRAM. UH,
SMART, UM, A C PROGRAM AUTOMATED
DEMAND RESPONSE INCENTIVE
MECHANISMS, AND SO THROUGH THIS
PROCEEDING WILL BE ABLE TO LOOK
AT THOSE HISTORIC COMMAND
RESPONSE PROGRAMS, BUT ALSO, UM
THERE HAVE BEEN A NUMBER OF
PILOTS THAT HAVE BEEN PROPOSED
IN THESE APPLICATIONS, INCLUDING
, UM, I HAD SEEN THE SMART,
SMART PANEL PILOT AND
AGRICULTURAL DEMAND RESPONSE
PLOT, SO THIS PROCEEDING WILL
REALLY BE ABLE TO LOOK AT
DEVELOPING AND TESTING NEW
DEMAND RESPONSE PROGRAMS AND
REALLY DESIGNINGFOCUS BASED ON
CUSTOMER CAPABILITIES,
TECHNOLOGY RESPONSES AND JUST
THE OPERATIONAL EXPERIENCE TO
MAKE SURE THAT DEMAND RESPONSE
CAN ENHANCE AT THE FLEXIBILITY
OF OUR GRID. THANK YOU. WELL,
THANKS GOOD TO SEE THE EXPLORING
. CERTAINLY VERY SUPPORTIVE OF
TRYING TO INNOVATION, TRYING NEW
THINGS. SO I APPRECIATE THAT.
THOSE PILOTS? YEAH. JUST BACK ON
THE EMERGENCY PROGRAM FOR A
MOMENT. I THINK THAT'S WHAT I'VE
SEEN. THAT'S ABOUT $2 A KILOWATT
VERSUS THE TRADITIONAL MARKET
INTEGRATED BID INTO THE CAISO
MARKET PROGRAMS ARE MORE LIKE 10
CENTS TO 50 CENTS. YOU KNOW,
KILOWATTS, SO I GUESS THAT WAS
SORT OF THE BASIS OF MY
QUESTION. UM SO IT SHOULDN'T YOU
KNOW YOU EVALUATING? I MEAN, I
USE YOUR SPENDING, RATEPAYER
MONEY. AND ARE YOU VALUING
THAT'S COST EFFECTIVE. SÜ VERSUS
WORKING WITH THIRD PARTY
AGGREGATORS. AND HOW ARE YOU
MEASURING THAT? AND I THINK THAT
THE BEGINNING OF YOUR QUESTION
IS, UM, THE IMPORTANT POINT THAT
I WANTED TO TOUCH ON AND ABOUT
THE EVALUATION AND MEASURING,
AND I THINK YOU'RE RIGHT THAT WE
CERTAINLY NEED TO, UM, TAKE INTO
ACCOUNT THE COST EFFECTIVENESS
BECAUSE THIS IS GREAT PARA
FUNDING SO TO START, I'LL NOTE
THAT THE EMERGENCY LOAD
REDUCTION PROGRAM IS ONLY
TRIGGERED IN EMERGENCY
CONDITIONS. SO IN CONTRAST TO
THE PRICING THAT YOU REFERENCE
FOR OTHER DEMAND RESPONSE
PROGRAMS THAT ARE BIT INTO THE
MARKET THAT CAN OPERATE SOME
THROUGHOUT THE YEAR AND NOT JUST
IN THE SUMMER. UM BUT THE
EMERGENCY LOAD REDUCTION PROGRAM
WILL ONLY BE TRIGGERED WHEN WE
GO INTO EMERGENCY GRID
CONDITIONS. UM SO WE'RE ALL
HOPEFUL THAT WE WON'T EVEN GET
THERE TO HAVE TO USE THE
EMERGENCY LOAD REDUCTION
PROGRAM. BUT IF WE DO NEED IT,
IT WILL BE THERE. AND THE IDEA
IS THAT AT THAT POINT, UM WE'RE
WE'VE AS A STATE OF THE CASE, SO
I HAVE BEEN TRYING TO BRING
IMPORTS IN AS MUCH AS POSSIBLE
TRYING TO COVER LOAD BUT HAVE
STILL COME UP SHORT, AND THAT'S
WHEN WE BRING ON CONTINGENCY
MEASURES LIKE THE EMERGENCY LOAD
REDUCTION PROGRAM. AND SO THAT'S
WHY THE COMPENSATION IS MUCH
HIGHER THAN THE NORMAL DEMAND
RESPONSE PROGRAM. UM IT'S REALLY
BUILT IN AND STRUCTURED THAT WAY
TO PROVIDE THE STRONG INCENTIVES
FOR THE VERY RARE BUT VERY
IMPORTANT TIMES WHEN WE NEED, UM
AS MUCH LOAD REDUCTION AS WE CAN
GET, AND WE EXPECT THAT IT WOULD
ONLY OPERATE, UM, DURING THE
CERTAIN HOURS OF THE DAY, SO
LATE EVENING, WHEN THE GRID
REALLY NEEDS THE SUPPORT OF THE
PROGRAM. UM SO IT'S BUILT FOR A
DIFFERENT PURPOSE THAN THE OTHER
DEMAND RESPONSE PROGRAMS, BUT WE
CERTAINLY WILL BE EVALUATING IF
IT IS USED THIS SUMMER. UM WE
WILL BE DOING AN EVALUATION OF
ITS VALUE, THE COST
EFFECTIVENESS AND OTHER OPTIONS
THAT WE CONTINUE TO EXPLORE. UM
SO THAT WE DON'T HAVE TO RELY AS
MUCH OR AT ALL ON THESE
EMERGENCY PROGRAMS. YEAH THAT'S
GREAT. WE CAN MOVE ON. I JUST
APPRECIATE YOU JUST WANT TO JUST
YOU KNOW, WE'LL JUST UNDERSCORE
A COUPLE OF POINTS. BUT, UM YOU
KNOW, IT'S. THE PUNISHER TRYING
TO GET IS HOW WELL ARE WE
EVALUATING? UM HOW THIS MONEY IS
BEING SPENT SAY. BY I. O U S
VERSUS GETTING CAPACITY FROM
THIRD PARTY AGGREGATORS. THAT'S
I GUESS ONE OF THE THINGS I WAS
TRYING TO GET AT AND THEN THE
OTHER THING IS JUST THAT. IF I
HAVE MULTIPLE DEVICES, I CAN
ONLY PARTICIPATE IN ONE AND I'M
GETTING RECRUITED TO SWITCH
BETWEEN PROGRAMS, WHICH IS WHICH
ISN'T DOING ANYTHING TO ADD TO
THE TOTAL TR CAPACITY, SO JUST
MAYBE A THOUGHTAROUND FOR THE
FUTURE. YOU KNOW HOW WE CAN
ALLOW MULTIPLE DEVICES TO
PARTICIPATE. SO IF I HAVE YOU
KNOW, I HAVE THE POTENTIAL TO
REDUCE DIFFERENT LOADS IN MY
HOME VEHICLE CHARGING AND
REDUCING APPLIANCES. UM. BUT
RIGHT NOW, I CAN ONLY GET CREDIT
FOR ONE. SO THAT WAS SORT OF THE
POINT ABOUT THAT PROGRAM. AND
THEN AGAIN, JUST THE CONCERN IS
THAT WE'RE SPENDING MONEY TO, UM
YOU KNOW, THEN WE CAN KIND OF
SPENDING MONEY TO RECRUIT PEOPLE
TO SWITCH BETWEEN PROGRAMS
ESSENTIALLY AND JUST WANT TO
MAKE SURE THAT WE'RE
PRIORITIZING THE MORE COST
EFFICIENT. PROGRAMS AND THAT
WE'RE NOT. UM WE'RE GIVING A
CHANCE FOR THESE THIRD PARTY
AGGREGATORS WHO HAVE SHOWN THE
ABILITY TO RECRUIT WITHOUT
RATEPAYER MONEY. THANK YOU,
SENATOR. AND IF IT'LL BE HELPFUL
, WE CAN FOLLOW UP WITH SOME
INFORMATION FOR YOUR OFFICE. UM
WE DO HAVE INFORMATION ON THE
VALUATION OF INVESTOR IN UTILITY
PROGRAMS, WHICH ACTUALLY MANY OF
WHICH INCLUDE PARTICIPATION BY
THIRD PARTY AGGREGATORS, UM AND
WE CAN AND WE HAVE BEEN
EVALUATING THOSE PROGRAMS AND
THEIR EFFICIENCIES. I UNDERSTAND
THAT THERE, UM, THAT THAT
MULTIPLES SOURCES VEHICLE
CHARGING, UM OTHER SOURCES OF A
LOAD REDUCTION CAN ALL BE
COORDINATED INTO PROGRAMS. BUT
WHY DON'T WE CAN FOLLOW UP WITH
YOUR OFFICE TO RESOLVE ANY
QUESTIONS OR INCONSISTENCIES
WITH INFORMATION THAT WE'VE
RECEIVED? GREAT WELL, THANK YOU
AGAIN. THANKS YOUR FOCUS IS I DO
THINK IT'S REALLY IMPORTANT. I
ALSO WANT TO THANK YOU FOR THE
JUNE UM, THE ADVANCED STRATEGIES
FOR DEMAND, FLEXIBILITY
MANAGEMENT AND CUSTOMER D OR
COMPENSATION THAT WAS PUT OUT BY
YOUR OFFICE. SO THAT THAT WAS
GREAT. UM AND I'LL JUST BEFORE
CHAIRMAN MY COLLEAGUES JUST ON
THE LAST PART ABOUT NAM A AND
YOU, YOU KNOW MY OWN OPINION.
YOU KNOW, I THINK PEOPLE BELIEVE
THAT IT SHOULD BE PHASED OVER
TIME. I THINK THE CONCERN I
HEARD FOR A LOT OF MY
CONSTITUENTS WAS THE UM AROUND
ABRUPT CUT OFF, AND PEOPLE WHO
HAD KIND OF PAID INTO CURRENT
PROGRAM AND IDEAS. I WOULD HAVE
A LITTLE CONTENTION THAT IT'S A
WASTED ELECTRON, ESPECIALLY FOR
INCENTIVE. SOLAR PLUS STORAGE AT
THE HOME. I THINK IT CONTINUES
TO ADD A LOT OF VALUE TO OUR
GRID, AND I JUST WANTTO UM, YOU
KNOW, LET'S BE THOUGHTFUL ABOUT
HOW WE'RE COMMUNICATING WITH THE
PUBLIC ON THIS BECAUSE WE ARE
GETTING A LOT OF CALLS OF PEOPLE
AND THEY WERE JUST THEY WANT TO
KEEP INSTALLING SOLAR, AND
THEY'RE JUST WONDERING HOW THIS
CAN IMPACT THEIR DECISION. SO,
UM YOU KNOW, JUST KEEP THAT IN
MIND AS WE GO THROUGH THE
PROCESS, BUT THANKS FOR YOUR
CONSIDERATION. THANK YOU,
SENATOR. THANK YOU, MR CHAIR AND
THANK YOU VERY MUCH FOR THE
PRESENTATION. JUST HAVE A COUPLE
OF QUESTIONS. ONE. UM FIRST ON
JUST LOOKING AT YOUR ANNUAL
REPORT HERE AND ANY UPDATES ON
THE GAS AND ELECTRIC SERVICE
DISCONNECTIONS. I KNOW.
OBVIOUSLY WE'VE GOT A FEW
BILLION DOLLARS THAT WE'VE
ALLOCATED TOWARDS UTILITY DEBT
RELIEF. UM, BUT JUST FIGURING
OUT WHAT GOES BEYOND THAT. I
MEAN, I KNOW THIS LEGISLATURE IS
VERY INTERESTED IN SHARING THAT
PEOPLE ARE NOT DISCONNECTED,
ESPECIALLY DURING LIKE EXTREME
HEAT AND WEATHER CONDITIONS, BUT
OTHER STATES HAVE TEMPERATURE
BASED, UH, DISCONNECTION
POLICIES. BUT WHAT IF ANY
UPDATES ARE THERE ON THIS FRONT,
PLEASE? YEAH THANK YOU FOR THAT
QUESTION. AS YOU MENTIONED THAT
THERE'S A SECOND TRANCHE OF
FUNDING FOR UTILITY ARREARAGES
THROUGH THE BUDGET THAT WAS
RECENTLY PASSED THAT FUNDING IS
GOING TO BE GOING TO GO A LONG
WAY AND BE INCREDIBLY IMPORTANT
IN, UM TO CLEARING PAST
ARREARAGES FROM CUSTOMERS,
ESPECIALLY WITH THE LEGACY OF
THE COVID 19 PANDEMIC. AFFECTING
THE ECONOMIC SITUATION OF MANY
CALIFORNIANS, UM THAT THAT THAT
FUNDING IS DISTRIBUTED THROUGH
THE CAP PROGRAM AT UM UH UM AND
SO IS IN THE PROCESS OF GOING
OUT TO CUSTOMERS. IT'S ALLOCATED
AUTOMATICALLY, SO THERE'S NO
NEED TO APPLY. IT SHOWS UP AS
CREDITS ON CUSTOMERS BILLS. UM
AND WITH THAT PROGRAM, UM THERE
IS A REQUIREMENT AND I BELIEVE
IT'S 90 DAYS FROM THE PAYMENT OF
ARREARAGES. NO DISCONNECTION CAN
OCCUR. UM, SO THAT GIVES
CUSTOMERS A LITTLE BIT OF A
BUFFER TO CLEAR THE ARREARAGES.
UM AND TO GET BACK ON THEIR
FEET, WE HAVE ALSO THROUGH PRIOR
DECISIONS, ORDERED ALL OF THE
UTILITIES TO PLACE CUSTOMERS ON
FEMALE PLANS IF THEY'RE BEHIND
IN THEIR PAYMENTS, SO IT'S
ESSENTIALLY A PROCESS WHERE UM
CUSTOMERS, UM. WORK OUT THE
SCHEDULE TO, UM TO PAY ANY
REMAINING DEBT AND HAVE THE
ABILITY TO KIND OF COME INTO TO
GET BACK TO A REGULAR PAYMENT
SCHEDULE. UM WE'RE HOPEFUL THAT
WITH THE NEW FUNDING THAT, UM,
THAT WILL RESOLVE A LOT OF THE
PRIOR DEBT. THERE'S CERTAINLY
ARE CONTINUING STRUGGLES WITH
CALIFORNIANS IN PAYING THEIR
UTILITY BILLS, AND THAT'S
SOMETHING THAT WILL BE LOOKING
AT CAREFULLY, UM IN THE PAST IN
THE FUTURE. EXCUSE ME. UM, BUT
AT THIS POINT, WE'RE AT A STAGE
WHERE WHERE WITH THE NEW FUNDING
, WE EXPECT TO HAVE A CONTINUED
ESSENTIALLY MORATORIUM ON
DISCONNECTIONS UNTIL THERE'S A
RARE RIDGES CAN BE CLEARED AND
ANY REMAINING CUSTOMERS WITH
ARREARAGES CAN BE PUT ON PAYMENT
PLANS. BUT IT'S SOMETHING THAT
WE'RE TRACKING AND WATCHING VERY
CLOSELY. OKAY. THANK YOU VERY
MUCH. I APPRECIATE THAT. YES I
WAS GOING TO SAY ANYTHING ON THE
NET ENERGY METERING, BUT I'VE
HEARD 22 SIDES OF THAT
CONVERSATION HERE, AND I'M KIND
OF YOU KNOW, IN THE MIDDLE, I
GUESS. WHAT I OBJECT TO IS THAT,
UH I DON'T KNOW WHY WE SHOULD BE
PAYING SO MUCH MORE OVER MARKET.
I MEAN, WE'RE A MARKET BASED
ECONOMY. AND WITH THE MARKET
RATE IS OF SOLAR, FOR EXAMPLE,
ON THE LARGE COMMERCIAL SHOULD
BE IN FACT, IN MY VIEW AROUND
THE SAME AMOUNT THAT WE WOULD
PAY. YO FOR ROOFTOP SORE AND I
KNOW THAT I HAVE A LOT OF
CONSTITUENTS AND DO NOT AGREE
WITH THAT. BUT AT THE END OF THE
DAY AS I HAVE BEEN OUT IN MY
COMMUNITIES TALKING TO PEOPLE,
MOST PEOPLE AND IT MAY BE
DIFFERENT FOR SMALL, ROOFTOP
SOLAR VERSUS A LITTLE YOU HAVE
THE LARGER SYSTEMS AREN'T REALLY
COUNTING ON THAT. YOU KNOW MONEY
THAT THEY'RE GETTING BACK. SO I
DON'T THINK THE SOLAR INDUSTRY
HAS DONE A PHENOMENAL JOB AT
CREATING ANGST IN OUR
COMMUNITIES. AND I'M NOT SURE
THAT, UH, IT IS AS BIG A DEAL.
I, UH PRESIDENT REYNOLDS. I'M
SORRY. I'M JUST MAKING A COMMENT
WITH NO QUESTIONS DO APPRECIATE
. UH YOUR PRESENTATION AND ALSO
THE WORK YOU'RE DOING AT THE
CPUC. THANK YOU VERY MUCH
SENATOR FOR THE COMMENT. OKAY
THANK YOU VERY MUCH. AND I ALSO
WANT TO THANK YOU FOR YOUR
PRESENTATION TODAY. IF I COULD
JUST COMMENT, I MEAN, I DID AS
YOU LITTER. TO THE CPUC IN A IN
SUPPORT OF THE NAME DECISION
THAT WAS OR THE NAME PROPOSAL.
THAT WAS, UH, PUT OUT IN
DECEMBER BECAUSE I THINK IT'S
FAIR. IT COMES UP WITH UH,
REASONABLE. UH, UH, YOU KNOW?
WHAT YOU WHAT YOU WOULD CALL A,
YOU KNOW. WHAT DO YOU CALL IT?
UH, WHEN YOU COME TO A CONSENSUS
ON AN AGREEMENT ON IT'S STRUCK
STRUCK A NICE BALANCE. IN TERMS
OF REDUCING THE COST. OF WHAT
WHAT IS PAID TO SOLAR PROVIDERS.
BRITISH STILL CONTINUES TO PAY
SOMETHING. I THINK THAT'S FAIR.
I THINK IT'S GIVES THEM UH SOME
LEVEL OF CERTAINTY THAT IF THEY
PUT SOLAR THEY'LL GET HEY'LL
GET COMPENSATED FOR ANYTHING.
THAT'S FAIR, BUT AT THE SAME
TIME I ALSO AGREE THAT UH,
OFTENTIMES THAT COSTS BE
SHOULDERED BY LOW INCOME
FAMILIES. AND WHILE ESPECIALLY
SAN DIEGO, ANOTHER PARTS OF
CALIFORNIA. ARE GRAPPLING WITH
SOME OF THE HIGHEST UTILITY
RATES CURRENTLY IN THE COUNTRY.
WE HAVE TO DO EVERYTHING IN OUR
POWER. TO BRING BACK THAT COSTS,
INCLUDING UM, YOU KNOW SOME OF
THE PURCHASES THAT ARE MADE OVER
THE SUMMER TO GET TO RESOURCE
ADEQUACY. THAT'S CANAL SO HAVE
CERTAIN COSTS ON THE SYSTEM THAT
ARE GOING TO BE BORN BY REPAIRS
AS SOMETHING THAT WE ALSO HAVE
TO BE VERY CAREFUL OF, SO I'M
I'M VERY SUPPORTIVE OF LOOKING
AT, UM, EVERYTHING THAT THAT WE
PROVIDE IN TERMS OF PROGRAMS AND
BENEFITS TO THE CUSTOMER. AND
REALLY CUTTING OUT THE FAT. I
THINK NEM IS ONE OF THOSE
PROGRAMS THAT HAS AN ENORMOUS
AMOUNT OF FAT ON IT. WHERE
PEOPLE CAN AGREE THAT A SMALLER
RATE WE'LL STILL MAKE IT
WORTHWHILE TO HAVE SOLAR AND, UM. THERE WAS STILL DO THEIR PART
TO HELP THE ENVIRONMENT AND TO
CONTRIBUTE TO RESOURCE ADEQUACY
AND TO HAVE BALANCING THE GRID.
I THINK THERE ARE WAYS WE CAN DO
THAT. BUT THERE'LL BE A LOT MORE
SOLAR BE PUT ON AUTOMATICALLY
WITH NEW CONSTRUCTION. AND I
DON'T KNOW THAT THAT NECESSARILY
REQUIRES US TO OVER PAY FOR THE
COSTS OF THOSE ELECTRONS. ALSO I
WANT TO THANK PRESIDENT REYNOLDS
FOR HER RESPONSIVENESS AND THE
CPUC S RESPONSIVENESS. IN UH,
CONCERNS THAT I SHARED REGARDING
THE PACE OF REIMBURSEMENTS FOR
THE INTERVENER COMPENSATION
PROGRAM. THIS PROGRAM IS VERY
IMPORTANT AND OFFERING A
PLATFORM FOR DUBBERS. AH VOICES
, UH, PARTICIPATING IN CPUC
PROCEEDINGS AND SO, UH, THE
ABILITY TO MAKE SURE THAT
THEY'RE MADE WHOLE IN TERMS OF
THEIR PARTICIPATION IS EXTREMELY
VITAL. AND I WANT O THANK HER
AND HER STAFF FOR BEING
RESPONSIVE TO THAT. AND SO WITH
THAT WE WILL MOVE ON TO OUR NEXT
PRESENTER WILL GO NOW TO, UH ARE
UM. THE OFFICE OF FORMERLY KNOWN
REPAIR ADVOCATES IS TO
CALIFORNIA. UM SORRY. HERE, UM.
WORD WE'RE GOING TO GO NOW TO
HEAR FROM THE PUBLIC ADVOCATE'S
OFFICE. FIRMLY KNOWN THE OFFICE
OF REPAIR ADVOCATES. WE WELCOME
A DIRECTOR AH, MR BAKER, UM. HE
HAS A STAFF AVAILABLE WITH THEM
TO. AH, SORRY, BUT I'M GETTING,
UH WE HAVE MATT BAKER HERE. UH
DO I SEEM YES, HE IS. OKAY. VERY
GOOD. UM I SEE YOU THERE.
WELCOME AND YOU CAN BEGIN AS
SOON AS YOU'RE READY. CHAIRMAN
HUESO VICE CHAIRMAN DOLLY AND
MEMBERS OF THE COMMITTEE. THANK
YOU FOR THE OPPORTUNITY TO BE
HERE TODAY. MY NAME IS MATT
BAKER, DIRECTOR OF THE PUBLIC
ADVOCATE'S OFFICE. WITH ME HERE
TODAY, OR LINDA SERIZAWA, DEPUTY
FOR ENERGY. CHRIS ANGSTROM,
DEPUTY DEPUTY FOR WATER AND
COMMUNICATIONS AND CHIEF
COUNSEL, DARWIN FOR R, AND I MAY
TURN TO THOSE FOR MORE DETAILED
ANSWERS IS PERCEIVED. I WAS
RECENTLY APPOINTED BY GOVERNOR
NUISANCE TO DIRECT THE OFFICE,
SO I THINK IT'S ONLY APPROPRIATE
THAT I BEGIN BY THIS BRIEFING BY
INTRODUCING MYSELF AND
DISCUSSING SOME OF MY GOALS FOR
THE PUBLIC ADVOCATE'S OFFICE.
PRIOR TO BEING APPOINTED BY
GOVERNOR NEWSOM TO DIRECT THE
OFFICE. I SERVED IN MANY PUBLIC
AND PRIVATE LEADERSHIP ROLES,
MOST RECENTLY AS DEPUTY
SECRETARY FOR ENERGY AT THE
NATURAL RESOURCES AGENCIES. I'M
HONORED TO SERVE AS THE NEW
DIRECTOR, MY TOP GOAL FOR THE
PUBLIC ADVOCATE'S OFFICE
ADVOCATE FOR AFFORDABLE, SAFE
AND RELIABLE UTILITY SERVICE AT
THE LOWEST POSSIBLE COST. THERE
ARE THREE RELATED ENERGY ISSUES
THAT ARE TOP OF MIND FOR US
RIGHT NOW, AND THOSE ARE CLIMATE
CHANGE, RELIABILITY AND WILDFIRE
MITIGATION. FIRST CLIMATE CHANGE
PUBLIC ADVOCATE'S OFFICE IS HERE
TO HELP CALIFORNIA TRANSITION TO
CLEAN ENERGY. WE CAN HELP MAKE
THE RIGHT POLICY AND INVESTMENT
DECISIONS WITH AN EYE TOWARDS
COST EFFECTIVENESS. CALIFORNIA
MUST SUCCEED IN MEETING OUR
CLIMATE GOALS AND WE ALSO HAVE
TO DO SO AT THE LOWEST POSSIBLE
COST. SECOND IS RELIABILITY.
THIS IS AS IMPORTANT AS
AFFORDABILITY. HERE WE CAN PLAY
A CONSTRUCTIVE ROLE IN
IDENTIFYING AND RECOMMENDING THE
LOWEST COST PATHWAYS TO GRID
RELIABILITY. THIRD IS WILDFIRES.
THIS CHALLENGE WILL BE WITH US
INTO THE FORESEEABLE FUTURE. OUR
OFFICE WORKS WITH O I S N C P U
C. TO ENSURE THAT UTILITIES FOR
DOING ALL THEY CAN TO PREVENT
THEIR EQUIPMENT FROM STARTING
WILDFIRES. OUR OTHER POINTS OF
FOCUS OR IN COMMUNICATIONS AND
WATER. HERE WE HOPE TO PARTNER
WITH YOU TO PRIORITIZE ACCESS
AND AFFORDABILITY IN UNDERSERVED
AND UNSERVED AREAS. ALL OUR WORK
IN ALL OUR AREAS IS INFUSED WITH
A COMMITMENT TO BEING A STRONG
VOICE FOR UTILITY CONSUMERS, AND
I ALSO WANT MY OFFICE TO BE A
RESOURCE. UH TO YOU ON THE
POTENTIAL IMPACTS OF MANY OF THE
STATE POLICY GOALS. OUR GOAL IS
TO ACHIEVE THE GREATEST BENEFITS
AT THE LOWEST POSSIBLE COST. YOU
SHOULD HAVE OUR ANNUAL REPORT
AND SLIDE DECK BEFORE YOU THAT
DISCUSSES THIS, AND IN THE
INTEREST OF TIME, I WILL BRIEFLY
ADDRESS SOME OF THE HIGHLIGHTS
FROM THOSE DOCUMENTS. AS YOU
KNOW, OUR MISSION IS TO ADVOCATE
FOR THE LOWEST POSSIBLE UTILITY
RATES FOR CALIFORNIA'S CONSUMERS
CONSISTENT WITH SAFETY,
RELIABILITY AND THE STATE'S
CLIMATE GOALS. IN 2021. WE FACED
MANY CHALLENGES, INCLUDING
WILDFIRES, POWER SHUTOFFS, THE
PANDEMIC AND THE LOSS OF
TELEPHONE AND INTERNET SERVICES.
IN ALL OUR AREAS. WE'RE SEEING
COST INCREASES. YOU KNOW
ELECTRICITY. HOWEVER, THIS
CHALLENGE IS THE GREATEST
STARTING AROUND 2014. WE WERE
STARTING TO SEE REAL ENERGY
BILLS INCREASED FASTER THAN
INFLATION. MORE RECENTLY, THIS
TREND HAS GOTTEN MORE
PRONOUNCED. THREE MAIN DRIVERS
OF RAPE AND BILL INCREASES IN
ELECTRICITY IN OUR OPINION, THEN
INCREASED CAPITAL INVESTMENTS,
PARTICULARLY INVESTMENTS IN
TRANSMISSION AND DISTRIBUTION
INFRASTRUCTURE. INCREASED
PROGRAM COSTS ASSOCIATED WITH
WILDFIRE MITIGATION. AND FINALLY
, I'D BE REMISS IF I DID NOT
ENTER, IDENTIFY NET ENERGY
METERING AS A SIGNIFICANT COST
DRIVER. WE'VE HAD SOME
DISCUSSIONS ON THAT, AND I JUST
WANT TO SAY AN OUR MOST RECENT
ANALYSIS. WE'VE SHOWN THAT
ALMOST 27% OF THE SAN DIEGO GAS
AND ELECTRIC NON NEM RESIDENTIAL
CUSTOMERS RATE IS ASSOCIATED
WITH NOW. WE APPRECIATE THAT THE
CUSTOMER THAT THE COMMISSION IS
MOVING FORWARD WITH NET ENERGY
METERING REFORM IN A THOUGHTFUL
, EVIDENCE BASED MANNER, AND I
LOOK FORWARD TO WORKING WITH THE
CPUC AND OTHER STAKEHOLDERS TO
ENSURE THAT THIS PROGRAM
CONTINUES IN THE FAIREST MANNER
AND AT THE LOWEST POSSIBLE COST.
IN THE BROADER AREA OF
AFFORDABILITY. OUR ADVOCACY WILL
FOCUS ON FIVE OBJECTIVES. FIRST
WE WILL ADVOCATE TO REVIEW ALL
RIGHT. THEY'RE FUNDED PROGRAMS
THAT ARE NOT CURRENTLY COST
EFFECTIVE. ALL RATEPAYER FUNDED
PROGRAMS NOT DEALING WITH THE
PROVISION DIRECT PROVISION OF
ELECTRICITY. SHOULD HAVE TO MEET
SHOULD HAVE BENEFITS THAT EXCEED
THE COSTS. SECOND WE WILL
CONTINUE TO SCRUTINIZE ALL
REQUESTS FOR NEW INFRASTRUCTURE
AND WORK WITH PARTIES TO FOCUS
ON BOTH LEAST COST AND LEAST
REGRETS. PATHWAYS FOR NEW
GENERATION TRANSMISSION AND
DISTRIBUTION, AND THIS IS
PARTICULARLY IMPORTANT AS WE
TRANSITION INTO THIRD, WE WILL
BEGIN TO WORK MORE FURTHER
UPSTREAM WITH THE COMMISSION,
EEC AND CALLOUS. SO THE RATE AND
BILL IMPACTS ARE INCORPORATED
INTO ENERGY PLANNING DECISIONS.
WE WILL ALSO WORK TO IDENTIFY
COST DRIVERS IN INFRASTRUCTURE
SIGHTING AND THE PERMITTING
PROCESS. FOURTH. WE WILL PROPOSE
CREATIVE WAYS TO BOTH FINANCE
AND PAY FOR THE INFRASTRUCTURE
THAT WE KNOW HAS TO BE BUILT.
AND FINALLY, WE WILL IDENTIFY
RATE DESIGN, PROTECT OUR MOST
VULNERABLE POPULATIONS WHILE
ADVANCING OUR ELECTRICITY,
ELECTRIFICATION, RELIABILITY AND
SAFETY GOALS. COUPLE OF QUICK
HIGHLIGHTS FOR US FROM 2021 IN
ENERGY OR ADVOCACY, LED TO A
REDUCTION IN SOUTHERN CALIFORNIA
EDISON'S REVENUE REQUEST BY OVER
$2.4 BILLION SAVING CUSTOMERS IS
SIGNIFICANT. YOU KNOW, REDUCING
THE INCREASE THAT THEY WERE
EXPERIENCING. IN WATER OR
ADVOCACY, LED TO A REDUCTION IN
SUBURBAN WATER SYSTEM AND
CALIFORNIA AMERICAN WATERS.
REVENUE REQUEST BY OVER $60
MILLION AGAIN SAVING CUSTOMERS
MONEY. FOR COMMUNICATIONS. WE
SUCCESSFULLY HELPED LOWER
TELEPHONE SERVICE FEES FOR THE
INCARCERATED SO THAT THEY CAN
COMMUNICATE MORE OFTEN AND MORE
EASILY WITH THEIR FAMILY AND
THEIR ATTORNEYS. AND A COUPLE OF
HIGHLIGHTS FROM 2021 ON SAFETY
AND RELIABILITY. AN ENERGY OR
ADVOCACY RESULTED IN ELECTRIC
UTILITIES REVISING THEIR 2021
WILDFIRE MEDICATION PLAN UPDATES
TO IMPROVE SAFETY
COMMUNICATIONS. WE WORKED BEFORE
THE PEWS COMMISSION TO HELP
EXTEND THE 72 HOUR BACKUP POWER
REQUIREMENT TO WIRE LINE
COMPANIES, WHICH HAVE NETWORKS
IN AREAS WITH THE GREATEST
WILDFIRE RISKS. UTILITY SERVICES
ARE NECESSITY AND I LOOK FORWARD
TO WORKING WITH YOU. THE
GOVERNOR'S OFFICE, THE CPUC AND
ALL OTHERS TO PROTECT THE HEALTH
AND SAFETY OF ALL CALIFORNIA.
WITH THIS WOULD LIKE TO CONCLUDE
BY THANKING YOU AGAIN FOR THIS
OPPORTUNITY TO BE HERE TODAY.
PLEASE CONTACT ME DIRECTLY. IF
YOU HAVE ANY QUESTIONS, YOU WANT
TO DISCUSS ANY MATTERS ANY
FURTHER. UH AND I'M HAPPY TO
ENTER. ANSWER ANY QUESTIONS THAT
YOU LIKE THAT? THANK YOU. THANK
YOU VERY MUCH APPRECIATE YOUR
YOUR PRESENTATION, AND I JUST
HAVE A QUESTION REGARDING HOW DO
YOU MEASURE SUCCESS WHEN YOU
COME UP WITH A NUMBER AND YOU
SAY THAT YOU SAVED RATEPAYERS,
2.4 MILLION OR WHATEVER SPECIFIC
NUMBER THAT YOU, UM THAT YOU
ACCOUNT. NOW. YOU KNOW, WE HAVE
GONE OVER FOR YEARS. WE'VE GONE
OVER KIND OF SOME OF OUR
FAILURES HERE IN TERMS OF AH,
YOU KNOW, COSTS ASSOCIATED WITH
THE GRID AND PRODUCTION OF
ELECTRICITY. BUT ALSO WE'VE
WE'VE OFTEN ASKED THAT AN
EXAMPLE IN PG AND E WHEN THEY
WERE AUTHORIZED TO MAKE CERTAIN
EXPENDITURES IN IMPROVEMENTS AND
POWER LINE SAFETY, BUT THEY
DIDN'T DO THAT. WHO WHO FAILED
IN THAT PROCESS, WAS IT I MEAN,
VIRGINIA. APPARENTLY DIDN'T DO
THE WORK. BUT THEY WERE REQUIRED
TO BUY THE PUC AND, OF COURSE
THE OFFICE AT THAT TIME. THE
RIGHT PAIR ADVOCATES THIS
SCRUTINIZE THAT BUT EVENTUALLY
THEY DIDN'T MAKE THE
IMPROVEMENTS AND IT CAUSED TO
THE RESULT WERE EXPLOSIONS
FIRES. THAT HAVE SINCE HAD AN
INCREASE IN AH, THE COSTS
ASSOCIATED WITH PROVIDING THAT
POWER. IN ADDITION, WE'VE OFTEN
TALKED ABOUT HOW THERE WERE
CERTAIN INVESTMENTS THAT WERE
MADE. IN, UH, SHORING UP THE
GRID AND MAKING CAROLINE'S
REPLACING POLLS REPLACING
PARALYZED, MAKING THEM SAFER,
MAKING THEM MORE RESILIENT TO
CLIMATE CHANGE. THOSE
INVESTMENTS WEREN'T MADE OR EVEN
PROPOSED, OR THEY WERE PROPOSED
AND TAKEN OFF THE TABLE, AS AS,
UH THEY WERE DEEMED TOO COSTLY.
THAT'S RESULTING IN FIRES THAT
NOW ARE DEFINITELY TRANSFERRING
COSTS TO RATEPAYERS. SO WHAT I'M
TALKING ABOUT IS WHEN WE GO
THROUGH THESE PROCEEDINGS THAT
WE TALKED ABOUT SHORT TERM
SAVINGS IS THAT ARE HAVING AND
THAT IMPACT AND INCREASING THE
LONG TERM COSTS OF MAINTAINING
OUR GRID. AND WHAT'S YOUR ROLE
IN THAT? SO I WOULD SAY OUR ROLE
IS A COUPLE OF OLD ONE IS WE
HAVE A VERY ACTIVE, UH, SAFETY
DIVISION, PARTICULARLY AROUND
WILDFIRE. UM WHO LOOKS AT SAFETY
FIRST, UM AND LOOKS TO IDENTIFY
. YOU KNOW WHAT DO WE NEED TO,
UM UH, YOU KNOW, ADDRESS THE
SAFETY CONCERNS THAT WE HAVE
IDENTIFIED. UTILITIES HAVE
IDENTIFIED THE OTHER PARTIES MAY
HAVE IDENTIFIED SO WE ALWAYS
WANT TO PUT THAT FIRST. AND WE
ALWAYS WANT TO PUT. I SHOULD
ALSO SAY RELIABILITY FIRST, BUT
AS WE'RE WORKING TOWARDS THOSE
TWO GOALS, UM WE WANT TO BE ABLE
TO DO SO AT THE MOST COST
EFFECTIVE MANNER POSSIBLE. UM
AND SO IF WE ARE, UH, YOU KNOW
IT IN A TYPICAL RAPE CASE
UTILITY WILL COME FORWARD WITH A
PROPOSAL. UM AND WE WILL
SCRUTINIZE THAT AND WE WILL LOOK
FOR AREAS WHERE THERE IS, UH YOU
KNOW WHERE WE THINK THERE IS
WASTE. UH YOU KNOW, IN GENERAL,
WE ARE LOOKING AT, UH, YOU KNOW
, AT BOTH SAFETY AND RELIABILITY
HAS PRIMARY GOALS THAT HAVE TO
BE MET. UM AND YOU KNOW, BUT
WITHIN THAT WE DO WANT TO FIGURE
OUT WHAT THE MOST COST EFFECTIVE
WAYS ARE. TO ADDRESS THESE
PROBLEMS. SO WITH REGARDS TO THE
$2.5 BILLION THAT WITH THE
SOUTHERN CALIFORNIA EDISON, UH,
MOST RECENT REQUEST WITH THAT?
THAT'S THOSE ARE SOME OF THE
THINGS THAT WE WERE THAT YOU
KNOW SOME OF THE VALUES THAT WE
USE TO DETERMINE. YOU KNOW WHAT
COULD BE IN AND WHAT COULD BE
OUT. UM AFTER YOU GET PAST
SAFETY AND RELIABILITY, IT IS
IMPORTANT TO, YOU KNOW, TO
REALIZE WHAT THE RATEPAYER
IMPACTS FOR ALL OF THIS WILL BE
, UM AND YOU KNOW WHAT?
GENERALLY WE CAN'T AFFORD TO DO
RIGHT NOW AND WHAT WE WOULD NEED
TO DEFER. UH YOU KNOW, IN IN
OTHER AREAS, SO UM YOU KNOW, ALL
I CAN SAY IS THAT THERE IS A
CERTAIN AMOUNT OF BALANCING THAT
NEEDS TO HAPPEN. UM BUT WE ARE
NOT BALANCING. UH YOU KNOW,
SAFETY. WE WANT TO ACCOMPLISH
SAFETY AND THE BEST POSSIBLE WAY
. WE ALSO WANT TO GET OUR
MONEY'S WORTH, WHICH MEANS WE
WANT TO HOLD THE UTILITIES
ACCOUNTABLE FOR WHAT THEY HAVE
SAID THEY WERE GOING TO DO AND
MAKE SURE THAT THEY DO IT. UM
AND YOU KNOW, AND WE WANT TO
MAKE SURE THAT THE COMMISSION
HAS ALL OF THIS INFORMATION
BEFORE THEM, AND THE RECORD IS
ROBUST ENOUGH SO THAT THEY CAN
MAKE A DECISION ON YOU KNOW WHAT
CAN STAY IN THE RIGHT CASE OR
WHAT CAN STAY IN THE RIGHT
BASIS. AND UH, YOU KNOW, AND
WHAT IF ANY PENALTIES ARE NEEDED
FOR NONCOMPLIANCE? YOU MENTIONED
IN YOUR. PRESENTATION THE 70%
AND YOU'RE SPEAKING SPECIFICALLY
TO STU AND ME. AND ON THE BILLS
OF THE CUSTOMERS OF STD JUNIE
THAT 70% UM NON NEM. STU NEED
CUSTOMER BILL IS NIM. AND SO
THAT KIND OF SORRY, 2027% MR
CHAIRMAN. AND COULD YOU EXPLAIN
THAT, PLEASE? UM SO I'LL GIVE
YOU A HIGH LEVEL EXPLANATION,
AND THEN I'D LIKE TO TURN IT
OVER TO OUR DEPUTY FOR ENERGY.
LINDA TOOK A LITTLE BIT TOO
SEVERAS ELLIPTICAL IN A LITTLE
BIT MORE DEPTH. BUT THERE ARE
TWO COMPONENTS TO THAT, UH,
NUMBER ONE IS JUST THE AMOUNT
THAT WE'RE PAYING FOR ELECTRONS
. UH WHICH IS ESSENTIALLY WHAT
YOU KNOW, TIED TO THE RETAIL
RATE. AND THEN THE SECOND
COMPONENT IS THE COST SHIFT BY
WHICH IS THE PARTS OF THE
INFRASTRUCTURE THAT ARE CARRYING
THE ELECTRONS THAT ARE
DISTRIBUTED. YOU KNOW, THE
DISTRIBUTION PARTS OF THE GRID
PROGRAMS THAT EVERYBODY HAS TO
PAY FOR. UM AND THAT NAME
CUSTOMERS ARE NOT PAYING FOR
THOSE TWO COMPONENTS. UH IN OUR
ANALYSIS ADD UP TO ABOUT 27% OF
THE, UH, RETAIL RATE THAT, UM UH
THEIR CUSTOMERS IN SAN DIEGO GAS
AND ELECTRIC HAVE TO PAY. UH
LINDA, WOULD YOU LIKE YOU HAVE A
DISSERVICE? OLOGY? YOU HAVE
ANYTHING? YES GOOD AFTERNOON,
TEARAWAY SO, AND NUMBERS. UM I
WOULD JUST ADD THAT WE DID
DETERMINE WHAT THE COST OF IS
THAT NON DOWN CUSTOMERS PAIN AND
STD'S SERVICE TERRITORY, AND
THAT AMOUNTS TO 20 ABOUT 27% OF
THEIR RATE AGAIN. THIS THESE
THIS REPRESENTS THE COST SHIP
THE COST FOR THEM. THAT MEMBER
CUSTOMERS DO NOT PAY TOWARDS,
UH, OPERATING THE SYSTEM. UM,
WHEN THEY USED YEAH, AND SO THAT
PERCENTAGE ACTUALLY BREAKS DOWN
TO ABOUT 40/45 DOLLARS A MONTH
ON THEIR BILL. IT'S QUITE
DIFFERENTLY. SO IF THE COST OF
THE NIM UH BUT WHAT? WHAT
RATEPAYERS PAY FOR SUBSIDIZING
SOLAR ON ROOFTOP IF THAT WAS
REDUCED TO A WHOLESALE RATE,
YOU'RE SAYING THAT THE BILLS OF
NON SOLAR CUSTOMERS COULD GO
DOWN 27. I WOULD ADD TO WHAT YOU
SAID. WHAT YOU SAID, IS CORRECT,
BUT I WOULD ALSO ADD THAT, UM UH
, NO. WE WOULD LOOK TO THEM
CUSTOMERS TO PAY THEIR SHARE.
UH, FIXED CARDS. ON THAT
ASSOCIATED WITH RUNNING THE
SYSTEM. IN ADDITION TO THE
UNCOMPENSATED 12-1 OR LET'S CALL
THE AVOIDED COST. OKAY THAT'S
VERY, VERY SIGNIFICANT. I
APPRECIATE THAT COMMENT. THANK
YOU VERY MUCH. WE'LL GO TO THE
MEMBERS. UH, SENATOR STERN.
THANK YOU, MR CHAIR AND
CONGRATULATIONS ON YOUR YOUR
APPOINTMENT. UM MR BAKER. IT'S
GOOD TO HAVE YOU AT THE HELM OF
THIS INCREDIBLY IMPORTANT OFFICE
. UM, I WANNA FEEL DOWN ON TWO
AREAS THAT I THINK HAVE EXT.
THIS OFFICE OVER THE LAST FEW
YEARS THAT ARE MENTIONED IN YOUR
REPORT, BUT NOW THAT THAT YOU'RE
YOU'RE IN A LEADERSHIP ROLE HERE
WITH YOUR QUITE EXCELLENT TEAM.
UM I WANT TO KNOW HOW YOU'RE
GOING TO APPROACH THESE SORT OF
AREAS OF FRUSTRATION OR AREAS
THAT YOU'VE HIT. HIT A WALL. UM
FIRST IS, UH, WHEN IT COMES TO
SOCAL GAS, THE GAS COMPANIES
MISUSE OF RATEPAYER FUNDS. FOR
LOBBYING ACTIVITIES. UM, AND THE
INABILITY TO ACCESS THEIR
FINANCIAL RECORDS IN THIS EFFORT
. YOUR REPORT NOTES THAT THEY'VE
GONE AS FAR AS TO DISOBEY A
SUBPOENA FROM THE CPUC IN THIS
REGARD TO HIDE HOW THEIR
FINANCIAL RECORDS AND
DISCLOSURES AROUND THESE FILINGS
MAY INDICATE, AND VERIFY SOME OF
THE UNCOVERED THE SUBSTANTIAL
EVIDENCE THAT YOU'VE UNCOVERED
SO I WONDER WHERE THINGS STAND
IN THAT EFFORT AND WHAT MORE YOU
CAN DO TO TRY TO ENSURE THAT
RATEPAYERS DOLLARS AREN'T BEING
USED FOR POLITICAL ADVOCACY
EFFORTS, UM, SPECIFICALLY ONES
THAT PROMOTE FOSSIL FUELS AND
UNDERCUT BOTH LOCAL ACTION
WITHIN THE CITY OF L. A OR IN
METROPOLITAN TRANSPORTATION
AUTHORITY, OR HERE STATEWIDE. WE
KNOW FRONT ORGANIZATIONS WERE
DEVELOPED AND THERE WERE FINES
ISSUED, BUT IT SOUNDS LIKE YOUR
OFFICES INDICATED THAT THERE MAY
BE MORE THAN THAN WHAT WE KNOW.
SO WOULD YOU CARE TO COMMENT ON
THAT? YEAH, AND BUT BEFORE I
COMMENT, I DO WANNA, UM YOU
KNOW, HIGHLIGHT THE WORK THAT
THE STAFF DID BEFORE I GOT HERE
WAS TRULY EXCELLENT. UM IN
UNCOVERING SOME OF THE SOURCES
OF UH, YOU KNOW, UNCOVERING THE
FACT THAT SOME OF THIS ADVOCACY
WAS PAID FOR BY RATEPAYER
DOLLARS TO START WITH, WE THINK
IT'S INCREDIBLY IMPORTANT FOR
THE, UM FOR THE INTEGRITY OF THE
REGULATORY PROCESS, BOTH THAT,
UM, REGULATED ENTITIES BE
FORTHRIGHT ABOUT WHAT THEIR
ACTIVITIES ARE. AND WHO'S PAYING
FOR THEM AND WHERE THEY'RE
COUPLE WHERE THE FUNDS ARE
COMING FROM, UM AND, UH, YOU
KNOW, ALSO THAT THE WHOLE
PROCESS DEPENDS ON THE
FOUNDATION OF DISCOVERY AND THE
ABILITY OF OFFICES LIKE OURS
THAT ARE PART OF THE COMMISSION
TO BE ABLE TO GET THE
INFORMATION THAT WE NEED TO
UNDERSTAND. UM YOU KNOW, I'M SO
THIS IS THIS IS A SUPER
IMPORTANT AREA FOR US. I WOULD
LIKE TO TURN IT OVER TO OUR, UM
OUR OUR GENERAL COUNSEL, DARMAN
FARRAR, WHO COULD TALK ABOUT THE
STATUS OF SOME OF OUR APPEALS
AND WHERE, UM, WHERE WE ARE AT
THIS TIME? UM BUT THE SHORT
ANSWER IS WELL, WE'RE RATING
RIGHT NOW. YEAH I'M WONDERING
WHAT WHAT RECOURSE YOU HAVE
AROUND THAT WAITING, I GUESS.
GENERAL COUNSEL. BE CURIOUS TO
HEAR WHAT WHAT YOUR EFFORTS ARE
ON. SORT OF THE DEFIANCE FROM
THE GAS COMPANY ABOUT THIS
TRANSPARENCY. THANK YOU. YES,
YOU ARE CORRECT. THIS MATTER IS
CURRENT. YOU MIGHT HAVE CUT OUT
THERE. JUST TRY YOUR AUDIO. YEAH
WE'RE HAVING SOME TECHNICAL
DIFFICULTIES HERE. YOU CUT OUT.
TRY IT AGAIN. NOPE. THERE WE GO.
YOU'RE THERE. NO, YOU'RE NOT. I
THINK THAT WAS ME. UM, LET ME
JUST TAKE IT. UH, BECAUSE I
DON'T THINK I DON'T THINK WE
HAVE DARWIN. UH GIVE IT GIVE IT
YOUR BEST SHOT. AND THEN I WOULD
APPRECIATE ANY FOLLOW UP. YOU
GUYS HAVE MY MAYBE IN WRITTEN
FORM. SO WE ARE IN THE WELL, ONE
IS YES. HAPPY TO FOLLOW UP WITH
YOU AFTER AFTER THIS IN WRITTEN
FORM CURRENTLY RIGHT NOW, THE
CASES AT THE COURT OF APPEALS,
UM AND WE CAN'T SAY TOO MUCH
ABOUT WHAT'S HAPPENING FROM
THERE, BECAUSE THERE'S NOT MUCH
WE CAN DO TO INFLUENCE WHAT THE
COURT OF APPEALS SAYS. WE ARE
CONTINUING TO PRESS FOR THIS
INFORMATION. UH YOU KNOW, IN OUR
INTERACTIONS WITH SOCAL GAS, UH
AND WE'RE ALSO CONTINUING TO, UH
, YOU KNOW, PRESS UH, YOU KNOW,
ARE JUST START DISCOVERED. WE
REQUEST IN OTHER VENUES AS WELL
. AND THAT DIRECTOR BAKER. I
DON'T MEAN IMPORTANT AND THAT'S
THAT'S GREAT. I MEAN, I GET I
GET THAT IT'S PENDING IN IN
JUDICIAL PROCEEDINGS, I GUESS.
TO THE BROADER POLICY POINT
ABOUT HOW YOU WANT TO RUN THIS
OFFICE AND TO YOUR POINT ABOUT
TRYING TO GET ADDITIONAL
INFORMATION IN THESE OTHER OTHER
VENUES. I'M THINKING OF THE GET
THE LONG TERM GAS PROCEEDING I
MENTIONED TO PRESIDENT REYNOLDS
. UM AND IN THAT PROCEEDING AND
IN THE MAPPING OF OUR ENTIRE GAS
SYSTEM RIGHT NOW, WE'VE BEEN
LEFT WITH THE CHOICE TO EITHER
RELY ON THE GAS COMPANIES MAP OF
THEIR GAS PIPELINE SYSTEM IN
SOUTHERN CALIFORNIA OR DO WHAT
THE PUC ENDEAVOR TO DO UNDER
COMMISSIONER RANDOLPH'S
LEADERSHIP BEFORE SHE WENT OVER
TO THE AIR BOARD, WHICH IS TO
DEVELOP THEIR OWN MODEL OF THE
GAS SYSTEM IN SOUTHERN
CALIFORNIA. HOWEVER IN
DEVELOPING THAT MODEL, THE GAS
COMPANY HAS REFUSED TO SHARE
CRITICAL INFORMATION ABOUT HOW
THEIR GAS SYSTEM RUNS. YOU'RE
BASICALLY MAKING A MAP WITHOUT
FULL INFORMATION, SO. I'M GONNA
BE PRESSING ON THAT ISSUE IN THE
LONG TERM PROCEEDING BECAUSE
WHEN YOU'RE TRYING TO DIG OUT
WHERE THOSE RATEPAYER
VULNERABILITIES ARE, AND THOSE
SAFETY VULNERABILITIES ARE IF
YOU DON'T KNOW WHERE ALL THESE
PINCH POINTS ARE, JUST LIKE WE
LEARNED IN SAN BRUNO, WHERE
THERE WAS A BIG TRUNK LINE THAT
NOBODY KNEW ABOUT THAT WAS
THERE, BUT THEY HADN'T EVEN
MAPPED IT. AND NOBODY KNEW. UM
I'M CURIOUS FOR YOUR TAKE ON
WHETHER YOU'RE GOING TO BE
WEIGHING IN ON THAT SORT OF GAS
SIDE OF THE SYSTEM. I NOTICED IT
WASN'T A REAL CENTRAL PART OF
YOUR REPORT. BUT UM, YOU KNOW,
LOOKING AT SAFETY, THEIR PLANS
ON EXPANSION, UM AND SORT OF THE
LONGER TERM RATE AND SAFETY
VULNERABILITIES THERE. YEAH I
THINK I CAN. I'LL TAKE THAT
QUESTION IN A COUPLE OF WAYS AND
REALLY HAPPY TO FOLLOW UP IN
MORE DETAIL WITH YOUR OFFICE,
BUT I THINK THERE ARE A COUPLE
OF PRINCIPLES THAT WE HAVE IN
MIND WITH THE TRANSITION OF THE
GAS SYSTEM. YOU NO ONE IS AS FAR
AS WE CAN SEE. IT LOOKS LIKE THE
FUTURE OF, UH, YOU KNOW, HITTING
IN MOST PLACES IN CALIFORNIA IS
GOING TO BE TO ELECTRIFICATION.
UM, THERE WAS SOME DISCUSSION.
THERE'S SOME DEBATE ON WHAT'S
COST EFFECTIVE. HOW FAR TO GO.
HOW FAR NOT TO GO. BUT YOU KNOW,
ON THE WHOLE AND ON THE AVERAGE,
THAT'S THAT'S YOU KNOW, THAT'S
THAT'S WHERE WE'RE GOING IN THE
20 YOU KNOW BY 2040 2045. UH UM
, UH, YOU KNOW HOW WE GET THERE,
BETWEEN HERE AND THERE ARE
OFFICE WILL BE ADVOCATING FOR
REALLY KIND OF A ROBUST. NO
REGRETS, UH, HUESO THAT INVOLVES
A NUMBER OF DIFFERENT UH,
APPROACHES TO SOME OF THESE
PINCH WORKS THAT YOU MENTIONED
BUILDING ELECTRIFICATION. UH,
YOU KNOW, PROMOTING THAT, UH,
YOU KNOW, THROUGH EARLY ADOPTION
RIGHT NOW, BUT THEN ALSO, YOU
KNOW, LEARNING FROM THAT AND
THEN USING THAT AS A WAY TO
THINK ABOUT HOW OUR YOU KNOW HOW
THE GAS SYSTEM ITSELF MIGHT
MIGHT HAVE TO SHRINK. UM I, UH,
YOU KNOW, SO ON THAT SIDE,
THAT'S THAT'S SUPER IMPORTANT,
AND I THINK THE POINT THAT YOU
MADE IS THAT IT'S ABSOLUTELY
IMPORTANT IS THAT THE BC NEEDS
TO HAVE ALL OF THE INFORMATION
ON THE GAS SYSTEM THAT IT NEEDS
TO PROPERLY REGULATED. UM, YOU
KNOW, AND I THINK THE PUC HAS
DONE A VERY GOOD JOB ON MANY OF
THESE ISSUES AROUND DATA
TRANSPARENCY AND ABOUT, YOU
KNOW, PUSHING THE UTILITIES FOR
YOU KNOW THIS INFORMATION THAT
IS, THAT IS, UH UH, YOU KNOW,
THAT IS THAT IS VERY IMPORTANT.
UM SO, UH, YOU KNOW, SO YOU KNOW
, WITH THAT THAT YOU KNOW, WE
SEE THE FUTURE AS ELECTRIC. WE
WANTED TO BE DONE IN A COST
EFFECTIVE WAY. WE WANT TO BE
DONE IN AN OVER REGRETS KIND OF
WAY. WE WANT TO MAKE SURE THAT
SAFETY IS PROTECTED AND WE WANT
TO MAKE SURE THAT PEOPLE WHO ARE
YOU KNOW, ELECTRIFYING LATER ON
ARE YOU KNOW NOT SADDLED WITH AH
, YOU KNOW THE COSTS ASSOCIATED
WITH THE SHRINKING GAS SYSTEM,
SO IT'S A LOT OF THINGS TO DO
ALL AT ONCE. UM AND YOU KNOW, I
YOU KNOW, I THINK YOU KNOW, I
THINK IT'S IMPORTANT FOR THE
LEGISLATURE TO CONTINUE TO BE
ASKING THESE QUESTIONS REALLY
HELPS US. UM BUT IT'S ALSO
IMPORTANT TO REALIZE YOU KNOW
THAT YOU KNOW IT WILL. IT WILL
TAKE A LITTLE BIT OF TIME TO GET
WHERE WE NEED TO GO. OKAY. THANK
YOU VERY MUCH. NO MORE QUESTIONS
WILL MOVE ON. DID YOU HAVE
SENATOR BECKER? THANK YOU. THANK
YOU, DIRECTOR. THANK YOU FOR
YOUR WORK. JUST A COUPLE QUICK
THINGS ONE DURING YOUR REPORT
ABOUT TELECOMMUNICATION NEEDS OF
PERSONS WHO ARE INCARCERATED.
APPRECIATE YOU. LOOKING AT THAT.
I'D HOPE YOU'D AGREE WITH THESE.
RATES ARE STILL I THINK, WAY TOO
HIGH, AND I DO APPRECIATE YOUR
EFFORTS TO ELIMINATE PAPER BILLS
AND PAYING FOR PAPER BILLS OR
PAYING FOR AUTOMATED PAYMENTS IN
SUPPORT. SO, UM, APPRECIATE SOME
OF THOSE EFFORTS, BUT I THINK WE
STILL NEED TO DO A LOT MORE, UM
, TO MAKE THOSE AFFORDABLE WHEN
NONE OF US KNOW NONE OF THE REST
OF US PAY PER MINUTE. UM AND
IT'S REALLY NOT THOSE THE FEES
ARE THE FEES FOR EMAILS OR OTHER
OR OTHER THINGS THAT PEOPLE PAY.
UM WHO ARE INCARCERATED BY DO
APPRECIATE YOU LOOKING AT THAT,
UM QUICK QUESTION THAT YOU
MENTIONED INTO LOOKING TO COST
DRIVERS FOR INFRASTRUCTURE
PERMITTING, INCITING AND
ANYTHING YOU CAN SAY QUICKLY
ABOUT WHAT YOU'RE FINDING IS
COST DRIVERS. AND ARE YOU GOING
TO BE MAKING RECOMMENDATIONS ON
REFORMS TO REDUCE THOSE COSTS? I
THINK FIRST AND FOREMOST, WHAT
WE WANT TO BE LOOKING AT IS WHAT
IF ANY OF THOSE COSTS ARE YOU
KNOW WE HAVE A SUSPICION THAT
THEY'RE RELATIVELY, UH, YOU KNOW
THAT THEY THAT THEY MAY BE
FAIRLY SIGNIFICANT, PARTICULARLY
GIVEN HOW MUCH MORE
INFRASTRUCTURE COSTS IN
CALIFORNIA THAN IN SOME OTHER
PLACES. UM I ALSO WANT TO ECHO.
WHAT? UM UH, YOU KNOW WITH THE
PRESIDENT HAS SAID THAT WE ALSO
WANT TO BE ABLE TO BE MINDFUL
AND DO AND LOOK AT THESE COSTS
THROUGH THE LENS OF YOU KNOW,
BOTH ENERGY PROVISION AND YOU
KNOW THE ENVIRONMENTAL VALUES
THAT WE THINK ARE IMPORTANT. UM
BUT WHAT WE WOULD BE LIKE TO
WHAT WE WOULD LIKE TO BE MOVING
FORWARD TO TOWARDS IS, UM YOU
KNOW, SOMETHING THAT COULD BE
PRESENTED AS A YOU KNOW, AS A
WHITE PAPER OR SOME, UH,
CONSIDERATIONS FOR FURTHER
DISCUSSION. UM THAT LOOK AT YOU
KNOW WHAT? WHAT ARE SOME OF
THESE DRIVERS, PARTICULARLY
WHETHER THESE DRIVERS EXIST
WITHIN UH, EXCITING AND
PERMITTING PROCESS AND TO WHAT
EXTENT CAN THEY BE AMELIORATED?
GREAT LOOK FORWARD TO FLYING
WITH YOUR OFFICE. LOOK AT YOU
KNOW, MAKE SURE WE'RE LOOKING
FOR THE MOST COST COST EFFECTIVE
WAYS TO MAKE SURE WE HAVE ENOUGH
TRANSMISSION. SO THANK YOU FOR
THAT. THANK YOU VERY MUCH, UH,
OVER THE YEARS. UH, WE HAVE
RIGHTFULLY SO WITH OUR POLICIES
AND EVERYTHING TO TRY TO GET
MORE. LOW CARBON ELECTRICITY AND
PEOPLE AREN'T SOLAR. WE KNOW
THAT WE'VE IMPACTED YOU KNOW
RATES SIGNIFICANTLY. MOST
RECENTLY IN OUR LAST BUDGET THAT
WE HAD, I THINK THIS YEAR THERE
WAS ABOUT $5 BILLION IN THINGS
THAT WE PUT ON OUR GENERAL FUND.
AND I THINK THERE IS ANOTHER 9
TO $12 BILLION FOR FUTURE YEARS
. I GUESS WHAT I'M WONDERING IS
AH, WHAT YOUR THOUGHTS ARE ON A
PROCESS WHERE WE LOOK AT ANY
FUTURE. THOUGHTS ABOUT
INCREASING OUR RATES FOR A
POLICY THAT IS THE POLICY OF THE
STATE. THAT THE STATE OF
CALIFORNIA WOULD YO, LOOK AT
THOSE AS A COST OF AN IMPORTANT
POLICY IN THE STATE INSTEAD OF
PASSING ON THESE COSTS TO OUR
REPAIRS AND MAKING THEIR RATES
SO MUCH SIGNIFICANTLY HIGHER
THAN THEY ARE PRACTICALLY IN ANY
OTHER STATE. SO I THINK THAT IS
AN EXCELLENT QUESTION. AND UM, I
THINK WHERE WE ARE RIGHT NOW, IN
OUR PROGRESS TOWARDS THE CARBON
IZATION AND OUR, UM, EMPHASIS IS
ON EQUITY. UM AND YOU KNOW, AND
THEN AN ENVIRONMENTAL CONTROLS.
UM HMM. IT'S OUR OPINION THAT WE
SHOULDN'T ASK THE RATEPAYERS TO
FUND SOMETHING THAT IS NOT
RELATED TO THE PROVISION OF
ELECTRICITY. UM, UNLESS THEY
CAUGHT THE BENEFITS OUTWEIGH THE
COSTS. UM, SO, UH, AND THAT IS
NOT NECESSARILY HOW WE OPERATED
IN THE PAST. UM AND I YOU KNOW,
AND I IN THE IN MY PREVIOUS
LIVES, I HAVE BEEN AN ADVOCATE
OF USING RATEPAYER DOLLARS FOR
FUND ALL SORTS OF PROGRAMS. UM
AND HAS, YOU KNOW PERSONALLY
COME AROUND TO THE NOTION THAT
REALLY IF WE'RE GONNA MEET OUR
ELECTRIFICATION GOALS, UM WHAT
YOU'RE PROBABLY THE MOST
IMPORTANT DECARBONIZATION GOALS
THAT WE HAVE ABOVE. YOU KNOW
THAT THAT THAT AREN'T AROUND,
MAKING THE GENERATION COMPLETELY
CARBON NEUTRAL CARBON OR FREE OF
CARBON. IF WE'RE GOING TO MEET
THOSE GOALS, THEN WE HAVE TO BE
MUCH, MUCH MORE MINDFUL OF COST.
I. ALSO PART OF THAT ARE
THINKING ALSO INVOLVES THAT
ELECTRIC UTILITY RATES ARE NOT
REALLY AN EQUITABLE WAY TO
SPREAD THE COSTS OF MANY OF
THESE PROGRAMS, IF THERE'S NOT A
BENEFIT THAT OUTWEIGHS THE COST
FOR, YOU KNOW, FOR THE
RATEPAYERS. AND IN THAT SENSE,
IT IS MUCH MORE EQUITABLE FOR TO
FUND THESE PROGRAMS THROUGH
OTHER MEANS, SUCH AS THE GENERAL
FUND, OR SUCH AS THE YOU KNOW
THE G R F OR, UM, IN MANY CASES
, MAYBE WE CAN EVEN LOOK AT ON
BILL FINANCE FOR THINGS THAT
BENEFIT SPECIFIC CONSUMERS. UM
SO I OR LONG TERM BONDING AS A
WAY TO ACTUALLY HELP REDUCE THE
COST OF THINGS THAT ARE BACKED
BY THE STATE, SUCH AS SOME OF
THE THINGS THAT DWR HAS BEEN
CURRENTLY TASKED WITH DOING SO I
THINK I FEEL VERY STRONGLY THAT
WE REALLY HAVE TO BE VERY, VERY
MINDFUL OF ANY INCREASED COSTS
THAT WE PUT ON UTILITY BILLS.
AND WE REALLY ALWAYS HAVE TO ASK
THE QUESTION. YOU KNOW WHO'S
GOING TO PAY FOR IT FROM HERE ON
OUT? I HOPE THAT ANSWERED YOUR
QUESTIONS. IT SURELY DOES. THANK
YOU VERY MUCH. ON THE OTHER
SENATOR BRADFORD. YES I AM. MY
QUESTION HAS TO DO DEAL WITH CCS
. AND WHAT REFORMS DO YOU SEE,
ARE NEEDED THERE BECAUSE AGAIN.
WHERE WE HAVE A THIRD PARTY RE
MARKET OR HOUSE, YOU KNOW,
INFRASTRUCTURE DOES NOT READ TO
BILL. WE'VE ASKED OUR UTILITIES
TO ENTER INTO LONG TERM.
CONTRACTS ONLY TO LET THEIR
CUSTOMERS MIGRATE AWAY AND WE
CALL IT COMMUNITY CHOICE
AGGREGATION WHEN IT'S REALLY
COMMUNITY FORCE AGGREGATION.
WHEN ARE WE GOING TO REMOVE IT
FROM A OPT OUT TO OPT IN? WHAT'S
YOUR POSITION ON THAT? SO I
THINK THAT IS A POLICY DECISION
THAT REALLY IS UP TO THE
LEGISLATURE ON OPT IN, OPT OUT.
NO, I UNDERSTAND, BUT I'M JUST
WONDERING AS A RAPIER ADVOCATES
YOU WHY WOULDN'T WE BE SPEAKING
OUT LOUD ON THAT BECAUSE THAT'S
ANOTHER COST SHIFT TO THE
REPAIR. UH AND I SHOULD SAY, I
THINK WE ARE TRYING TO ADDRESS
THAT COST SHIFT THROUGH THE P C.
I A, BUT I DEFINITELY SEE YOUR
POINT. SENATOR UM AND I THINK
ONE OF THE THINGS THAT WE WOULD
BE AN ADVOCATE FOR YOU KNOW, ARE
MORE PROTECTIONS FOR C C. A
CUSTOMERS. UM AND WE ARE ARGUING
CURRENTLY FOR MORE FINANCIAL
REQUIREMENTS. UH FOR THE CCS SO
THAT, UM, YOU KNOW, SO THAT SO
THAT HMM. THEY CAN CARRY AS MUCH
OF YOU KNOW THEIR FAIR SHARE OF
THE YOU KNOW OF THE WAY. UM UH,
I WOULD BE HAPPY TO TALK MORE
ABOUT THIS WHERE I COULD TURN IT
OVER TO LINDA SERIZAWA TALK A
LITTLE BIT ABOUT WHAT OUR
ADVOCACY DATE HAS BEEN IN THIS
AREA. UM BECAUSE IT'S REALLY,
YOU KNOW, RESTED ON THE, UM YOU
KNOW ON MAKING SURE THAT THERE
ARE NO COST SHIFTS BETWEEN CCS
AND NON CCS. INACTIVE IN THE PC?
A, UH UH, PROCEEDINGS, UM,
MAKING SURE THAT AS PART OF THAT
, BUT THERE ARE MORE FINANCIAL
REQUIREMENTS. UM SO THAT YOU
KNOW SO THAT THE RELIABILITY YOU
KNOW, SO THAT THE CCS ARE
RESPONSIBLE FOR THEIR SHARES OF
RELIABILITY. UM YOU KNOW, AND
THAT THAT'S YOU KNOW, THAT'S
PRETTY MUCH KIND OF WHERE WE'VE
COME DOWN ON THIS. SO, UM UH,
LINDA, DO YOU HAVE ANY OTHER
THINGS TO ADD FOR THE SENATOR?
HI, SENATOR. UM YOU KNOW, WE ARE
VERY CONCERNED ABOUT WHAT'S BEEN
GOING ON WITH THE. YOU KNOW,
CURRENT BANKRUPTCIES OF SOME CCS
AND, UM, RETURN OF THE CCF
CUSTOMERS TO THE INDUSTRIAL
UTILITY. UM, IMPACT ON YOU,
NANCY CIA CUSTOMERS AS WELL AS
THE CC CUSTOMERS ABILITY DURING
WANT TO MAKE SURE THAT THEY ARE
NOT HIT FINANCIALLY, UM, WITH
ADDITIONAL COST BURDENS WE ARE
ARGUING FOR AS AS DIRECTOR BAKER
HAS MET. YOU WERE ARGUING FOR
STRONGER STRIPPER. FINANCIAL
SECURITY REQUIREMENTS SHOULD, UH
, A, UH, SHOULD ASSOCIATE
REFORMED. UM AND THE COMMISSION
IS DOING A GOOD JOB ON PUSHING
FORWARD WITH THAT PROCEEDING TO
ESTABLISH THOSE KINDS OF
REQUIREMENTS. UM WE ARE ACTIVELY
MONITORING FOR CAUTION THINGS TO
ENSURE THAT THERE IS NO CONTRACT
WITH CUSTOMERS AND CONSUMERS. UM
AND WE ALSO THERE IS A FINE LINE
IN TERMS OF WATER TO SUPPORT
CUSTOMERS CHOICE BUT MAKING SURE
THAT THEY ARE PROTECTED WHEN
THEY THIS CHOICES. THANKS LINDA.
OKAY, ANYONE ELSE? OKAY VERY
WELL. I WANT TO THANK ALL OF YOU
FOR YOUR WONDERFUL WORK THAT YOU
DO ON BEHALF OF RATEPAYERS. I
WANT TO THANK AH, PRESIDENT
ALICE REYNOLDS FOR PRESENTATION
. AND ALSO AH, MR BAKER FOR YOUR
PRESENTATION VERY MUCH. AH! AND
FOR BEING HERE TODAY TO PRESENT
ON BEHALF OF CALIFORNIANS AND
THE LEGISLATURE. NOW WE WILL
MOVE ON TO, UH, ANYONE WANTED TO
PROVIDE PUBLIC COMMENT WILL GO
TO BIG WILL BEGIN HERE IN THE UH
, CHAMBERS, AND THEN WE'LL MOVE
TO THE PHONE LINES TO THE
CONSTRAINTS REGARDING THE LATE
APPEARANCE TECHNOLOGY
CONSIDERATION. THE COMMITTEE
CHAIRMAN INSTITUTE TIME LIMITS
ON TESTIMONIES, ALL OTHERS
WISHING TO TESTIFY MUSLIM AT
THEIR COMMENTS TO ONE MINUTE
EACH. IT IS NOT MANDATORY THAT
THE CHAIR LIMIT THE LENGTH OF
PUBLIC TESTIMONY. BUT IT'S AN
OPTION IF SUCH LIMITS ARE
APPROPRIATE AND NECESSARY. SO
WE'RE ASKING PEOPLE GIVEN THESE
CONSIDERATIONS TO LIMIT THEIR
PUBLIC COMMENT TO ONE MINUTE
WE'LL BEGIN HERE IN ROOM 2100.
IF THERE ARE ANY MEMBERS OF THE
PUBLIC THAT WOULD LIKE TO
PROVIDE PUBLIC TESTIMONY, PLEASE
APPROACH THE MIC. NOW. IF NOT,
WE WILL GO TO THE PHONE LINES.
OKAY WE HAVE ONE SPEAKER COMING
FORWARD. MR CHAIR. THANK YOU. MY
NAME IS BILL JULIAN. I'M A
RETIRED, UH, LEGISLATIVE STAFFER
AND RETIRED MEMBER OF THE, UH OF
THE PUBLIC UTILITY COMMISSION
STAFF. I WAS THE LEGISLATIVE
DIRECTOR FOR THE COMMISSION
DURING THE ENERGY CRISIS. I WAS
THE CHIEF CONSULTANT TO THE
UTILITIES COMMITTEE IN THE STATE
ASSEMBLY WHEN GWEN MOORE CHAIRED
IT FOR 13 YEARS. AND I RETIRED
FROM THE STATE SENATE IN 2006
AFTER SERVING UNDER CHAIR MARTHA
SCORDIA. I WENT TO MAKE A VERY
BRIEF COMMENT ABOUT THE ISSUE OF
AFFORDABILITY AND COST. THE PSC
IS THE PRIMARY AGENCY IN
CALIFORNIA FOR THAT
RESPONSIBILITY. HOWEVER
INCREASINGLY COST DRIVERS THAT
ORIGINATE FROM THE FEDERAL
ENERGY REGULATORY COMMISSION ARE
DRIVING COSTS IN CALIFORNIA, AND
THAT INCLUDES PARTICULARLY
TRANSMISSION COSTS. AH I WANT TO
SAY THAT THE COMMISSION DOES A
GOOD JOB IN REPRESENTING THE
STATE OF CALIFORNIA AT FIRST,
BUT THEY CAN BE MUCH MORE
EFFECTIVE AND NEED TO BE MUCH
MORE AGGRESSIVE IN THAT AREA,
PARTICULARLY IN THE AREA OF
TRANSMISSION COSTS. TRANSMISSION
IS CITED IN PART BY THE
COMMISSION AND IN PART BY THE
FIRST AND COST ALLOCATION AND
COST DRIVERS ARE DETERMINED BY
THE FIRST THIS MEANS TWO THINGS.
FIRST. THAT THE STATE OF
CALIFORNIA LOSES CONTROL. OVER.
CAUGHT OVER ITS ABILITY TO
MANAGE COSTS. FOR CONSUMERS FOR
RETAIL CONSUMERS WHEN IT SEES
JURISDICTION TO FERC, AND THIS
HAS TO DO WITH THE WAY THAT THE
STATE OVERSEES THE CALLOUS OH,
AND HAS TO DO WITH THE WAY THAT
THE STATE PARTICIPATES IN FOR
TRANSMISSION ON A RAID CASES. UH
THE PUBLIC ADVOCATE'S OFFICE
DOES NOT HAVE THAT
RESPONSIBILITY. CURRENTLY IT'S
NOT CLEAR TO ME WHY, BUT, UH
THAT'S ONE THING THAT YOU NEED
TO LOOK AT, AND THAT IS
EMPOWERING THE PUC AT THE FERC
AND MANAGING THE RELATIONSHIP
WITH THE CALYX. SO UH, THAT'S
OKAY. THANK YOU APPRECIATE YOUR
COMMENTS. AND I'LL GIVE YOU A
LITTLE MORE TIME THERE BECAUSE I
THINK YOU MADE A GREAT POINT.
SOMETHING WORTH NOTING. WE'LL GO
NOW TO, UM, THE TELECONFERENCE
SERVICE. AND WE'LL ASK FOR
WITNESSES WAITING TO PROVIDE
PROVIDE PUBLIC COMMENT VIA
TELECONFERENCE SERVICE AND YOU
HAVE ONE MINUTE LIMIT. UM
MODERATOR, POLICE QUÊ. AH
SPEAKERS AND PUBLIC COMMENT.
THANK YOU, MR CHAIR, AND LADIES
AND GENTLEMEN, IF YOU WISH TO
COMMENT ON TODAY'S AGENDA, YOU
MAY PRESS ONE AND THEN ZERO AT
THIS TIME. ONCE AGAIN IF YOU
WISH TO COMMENT ON TODAY'S
AGENDA, YOU MAY PRESS ONE AND
THEN DO AT THIS TIME. WE DO HAVE
TWO COMMENTS AND QUEUES AT THIS
TIME. OUR FIRST COMMENT COMES
FROM MAYAN 11. YOUR LINE IS
OPEN. PLEASE GO AHEAD. GOOD
MORNING. I'M JOHN KENNEDY WITH
THE RURAL COUNTY REPRESENTATIVES
OF THE CALIFORNIA COUNTIES HAVE
BEEN HIT HARD BY UTILITY CAUSED
WILDFIRES. AND SO WE SUPPORT
UTILITY EFFORTS TO REDUCE THAT
RISK. UNFORTUNATELY MANY RURAL
COMMUNITIES HAVE SEEN
SUBSTANTIAL DECLINE AND ENERGY
RELIABILITY. PS PS EVENTS WOULD
TREAT HABIT A FEW YEARS AGO ARE
NOW BEING REPLACED BY UNPLANNED
FASTER ABOUT ITCHES. LAST YEAR,
THERE WERE ABOUT 600 OUTAGES
IMPACTING ABOUT 650,000 PUGGIONI
CUSTOMERS ABOUT 1 TO 2 MILLION
CALIFORNIANS. SOME CIRCUITS HAD
19 OUTAGES OVER THE COURSE OF
JUST A FEW MONTHS. THIS YEAR.
THEY'VE ALREADY BEEN ABOUT 590
OUTAGES AND TEACHING NEWS
SERVICE TERRITORY IMPACTING
ABOUT 590,000 CUSTOMERS. THESE
AREN'T BRIEF OUTAGES. MOST
CUSTOMERS HAVE TO WAIT ABOUT 6.5
HOURS BEFORE POWER'S RESTORED
ABOUT A FULL SCHOOL OR WORK DAY.
47 CIRCUITS BETWEEN17 AND 57.
HOURS BEFORE SERVICE WAS
RESTORED. WHAT'S WORSE IS THAT
THESE OUTAGES ARE FREQUENTLY
RECURRING, WITH ONE AFER
ANOTHER AFTER ANOTHER OVER A
SHORT PERIOD OF TIME. WE DON'T
DISPUTE THE NEED TO REDUCE
UTILITY CAUSED WILDFIRES. BUT
UTILITIES AND THE PUC ARE ALSO
CHARGED WITH ENSURING ENERGY
RELIABILITY AND AFFORDABILITY.
CALIFORNIANS CAN'T BE LEFT WITH
THE CHOICE BETWEEN SAFE OR
RELIABLE ELECTRICITY. WE MUST
HAVE SAFE AND RELIABLE
ELECTRICITY, SO WE URGE THE PUC
AND THE LEGISLATURE TO
VIGOROUSLY OVERSEE THESE OUT.
RIDGES. AND TO ENSURE THAT
UTILITIES ARE IMPROVING THEIR
INFRASTRUCTURE, REDUCE THE
NUMBER OF FREQUENCY AND DURATION
OF THEM. THANK YOU. WE'LL MOVE
ON TO THE NEXT SPEAKER.
MODERATOR, PLEASE. CALL ON THE
NEXT SPEAKER. LINE 13. YOUR LINE
IS OPEN. PLEASE GO AHEAD. GOOD
MORNING, MR CHAIR, REMEMBERS
IGNACIO HERNANDEZ ON BEHALF OF
THE UTILITY REFORM NETWORK
RETURN. I WANT TO THANK EVERYONE
TODAY FOR THE CONVERSATION ON
ARREARAGES IN THE IMPORTANCE OF
GETTING THAT MONEY OUT IN THE
RIGHT WAY TO THE RIGHT PEOPLE
AND ALSO THANKFUL FOR THE BUDGET
ALLOCATION THE WORK LEGISLATURE
DID TO PUSH. FOR THE ADDITIONAL
MONEY THIS YEAR ON ARREARAGES,
AND I ALSO WANT TO MENTION AN
ONGOING PROBLEM, AND THAT IS THE
BACKLOG ON INTERVENER COMPLAINTS
. I KNOW THERE WASN'T A LOT OF
DISCUSSION ON THAT TODAY, BUT I
DO THINK IT IS IMPORTANT TO
HIGHLIGHT. I KNOW THERE HAVE
BEEN SOME ACTIONS TAKEN SOME
ADDITIONAL BUDGET REQUESTED, BUT
THE BACKLOG IS IN THE
MULTIMILLIONS OF DOLLARS, NOT
JUST DAYS OR WEEKS BEYOND THE
STATUTORY DEADLINE, BUT MULTI
MONTHS AND MORE THAN A YEAR FOR
SOME CLAIMS. WHICH IS PUTTING A
SIGNIFICANT STRAIN ON NON PROFIT
ORGANIZATIONS THAT ARE TRYING TO
PARTICIPATE. DO PARTICIPATE. DO
A GREAT JOB AT THE PUC. WHAT WE
WOULD LIKE TO SEE IS A VERY
CLEAR SIDE. UM REPORT BACK TO
THIS COMMITTEE. ON THE TIMELINE
TO ELIMINATE THE BACKLOG WITH
BENCHMARK IT CAN'T JUST BE HERE.
THE EFFORTS THAT WE WANT TO TAKE
HERE'S THE ADDITIONAL MONEY WE
NEED FOR STAFF THAT'S GREAT, BUT
WITHOUT BENCHMARK WITHOUT A
SPECIFIC TIMELINE TO ELIMINATE
UH, THE BACKLOG. WE ARE
CONCERNED THAT THIS MAJOR
CONTINUE AND IT WILL NOT BE
SUSTAINABLE FOR THE
ORGANIZATIONS THAT ARE DOING
GREAT WORK AT THE COMMISSION.
THANK YOU VERY MUCH. APPRECIATE
YOUR COMMENTS WILL GO TO THE
NEXT SPEAKER. MODERATOR, PLEASE
GIVE THE NEXT SPEAKER. THERE ARE
NO ADDITIONAL COMMENTS IN THE
QUEUE AT THIS TIME. OKAY WELL,
WE WANNA THANK EVERYBODY FOR
THEIR PARTS PARTICIPATION TODAY.
I WANT TO THANK ALL THE
INDIVIDUALS WHO CALLED IN TO
PARTICIPATE IN PUBLIC TESTIMONY
TODAY. IF YOU ARE NOT ABLE TO
TESTIFY VIA THE TELECONFERENCE
SERVICE, PLEASE SUBMIT YOUR
COMMENTS OR SUGGESTIONS IN
WRITING TO THE SENATE COMMITTEE
ON ENERGY, UTILITIES AND
COMMUNICATIONS OR VISIT OUR
WEBSITE. YOUR COMMENTS AND
SUGGESTIONS ARE IMPORTAT TO US
AND WE WANT TO INCLUDE THEM. AND
YOUR TESTIMONY AND THE OFFICIAL
HEARING RECORDS. THANK YOU. AND
WE APPRECIATE YOUR PARTICIPATION
. THANK YOU, EVERYONE FOR YOUR
PATIENCE AND COOPERATION. WE
HAVE CONCLUDED THE AGENDA. THE
SENATE COMMITTEE ON ENERGY,
UTILITIES AND COMMUNICATIONS IS
NOW ENDURED.