Many regulatory proceedings of interest to San Diegans are ongoing at the California Public Utilities Commission (CPUC) in San Francisco. For monthly Regulatory updates, please see or subscribe to Energy Connection, CCSE's monthly electronic newsletter.
For a detailed 2008 California Legislative calendar, visit the California Assembly Legislative Calendar.
Also, you can easily identify your state representatives here.
Advanced Metering Infrastructure
Rate Design Window (A.07-01-047)
On December 8, 2006 and January 31, 2007, SDG&E filed a Rate Design Window Application for authority to make various rate design changes. In their application, the Investor Owned Utility focused on their need for rate adjustments due to market volatility and policy changes. They cited the failure of a restructured energy market, increasing natural gas prices, increase in customer needs and the evolution of policy priorities that emphasize energy efficiency, demand reduction and renewables above conventional energy resources as reasons for their rate adjustments.
Advanced Metering Infrastructure (A.05-03-015)
SDG&E's proposal to deploy advanced metering infrastructure (AMI) in the SDG&E territory reached a settlement with the plan's protestors (Department of Ratepayer Advocates and the Utility Customer Action Network) on March 8, 2007. SDG&E recommends full-scale implementation of AMI, which would install advanced "smart meters" with integrated two-way communications functionality. SDG&E expects to commence full-scale implementation beginning in 2008 to be completed by 2011.
Energy Efficiency Programs (R.06-04-010)
On February 16, 2007, the CPUC issued a staff proposal for the implementation of the 2009-2011 energy efficiency program cycle. SDG&E is expected to file their new energy efficiency programs by year's end. One item for discussion is whether there will be an increase in the percentage of EE programs put out for competitive bidding, up from the current 20 percent allotment.
California Solar Initiative (R.06-03-004)
On January 12, 2006, the CPUC issued a ruling that set the schedule and regulations for the California Solar Initiative ( CSI). The CPUC was nearing an August 24, 2006 Commission vote on proposed incentive level design, administrative structure, and planning schedule, when SB1 was signed into law on August 21, 2006. While SB 1 codified the state's commitment to the creation of a self-sustaining solar market, it also introduced several unanticipated requirements for the program. In order to conform to state law, the CPUC then worked with interested parties to issue a decision on SB1's impacts to the CSI program on January 11, 2007.
Overview of California Regulatory Structure
In California, there are three main governing agencies involved in electricity and natural gas:
California Public Utilities Commission (PUC or CPUC)
The PUC regulates the electricity and natural gas markets. The PUC is responsible for setting electric rates, protecting consumers, promoting energy efficiency, promoting electric system reliability, and promoting utility financial integrity. The PUC also regulates natural gas local distribution facilities and services, natural gas procurement, intrastate pipelines, and intrastate production and gathering.
The PUC-regulated electricity market in California serves 10.2 million customers with 33,347 miles of transmission lines and 162,768 miles of distribution lines for a total economic value of $17.8 billion. The natural gas industry serves 8.7 million customers in California with 11,000 transmission lines, 91,000 distribution lines and generates $5 billion in revenue.
California Energy Commission (CEC)
In addition to FERC and the PUC, the state agency primarily responsible for energy policy and planning is the California Energy Commission. Created by the Legislature in 1974 and located in Sacramento, the Commission has five major responsibilities:
- Forecasting future energy needs and keeping historical energy data
- Licensing thermal power plants 50 megawatts or larger
- Promoting energy efficiency through appliance and building standards
- Developing energy technologies and supporting renewable energy
- Planning for and directing state response to energy emergency
Federal Energy Regulatory Commission (FERC)
FERC regulates the interstate transmission of natural gas, oil, and electricity. FERC also regulates natural gas and hydropower projects. As part of that responsibility, FERC:
- Regulates the transmission and sale of natural gas for resale in interstate commerce;
- Regulates the transmission of oil by pipeline in interstate commerce;
- Regulates the transmission and wholesale sales of electricity in interstate commerce;
- Licenses and inspects private, municipal, and state hydroelectric projects;
- Approves the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas;
- Oversees environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives; and
- Administers accounting and financial reporting regulations and conduct of regulated companies.
Areas considered outside of FERC’s jurisdictional responsibility include:
- Regulation of retail electricity and natural gas sales to consumers
- Approval for the physical construction of electric generation, transmission, or distribution facilities
- Regulation of activities of the municipal power systems, federal power marketing agencies like the Tennessee Valley Authority, and most rural electric cooperatives
- Regulation of nuclear power plants (which are regulated by the Nuclear Regulatory Commission)
- Oversight for the construction or abandonment of service of oil pipelines & facilities
- Mergers and acquisitions as related to oil companies
- Regulation of local distribution pipelines of natural gas
