CPUC Public Agenda 3249Thursday, February 25, 2010, 10:00 a.m.

505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey Dian M. Grueneich

John A. Bohn Timothy Alan Simon

Nancy E. Ryan

www.cpuc.ca.gov

Public Comment

• Any member of the public who wishes to address the CPUC about matters before the Commission, must first sign up with the Public Advisor before the meeting begins.

• Once called, at the discretion of the President of the CPUC, each speaker has up to 2 minutes.

• 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: Items: 29 & 32 All items on the Closed Session Agenda

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, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 22, 23, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40 & 41

• 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: 48, 50 & 51 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: None have been moved to the Regular Agenda.

• Item: 4 has been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 3/11/10: 2, 3, 5, 6, 8, 21, 24, 42, 43, 45, 45a, 46, 47 & 49

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.

Regular Agenda – Energy OrdersItem #44 [9127] Pacific Gas and Electric Company Peak Day Pricing

A09-02-022 Application of Pacific Gas and Electric Company for Approval of its 2009 Rate Design Window Proposals for Dynamic Pricing and Recovery of Incremental Expenditures Required for Implementation.

Ratesetting Comr. Peevey/ ALJ Fukutome --------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Continues implementation of the Commission’s policy to make dynamic pricing available for all electric

customers by adopting and implementing default and optional critical peak pricing and time-of-use rates (together, referred to as Peak Day Pricing) beginning May 1, 2010, for Pacific Gas and Electric Company.

• This decision also adopts appropriate customer outreach and education activities and measures to ensure customer awareness and understanding of the new rates and options.

• The revenue requirement associated with authorized costs will be included in rates through Pacific Gas and Electric Company’s Annual Electric True-up advice letter filing.

• Recovery of potential cost overruns, including contingencies, and costs associated with Customer Care and Billing conversions are deferred to after-the-fact reasonableness review applications.

• Closes the Proceeding.

ESTIMATED COST:• Authorizes cost recovery of capital expenditures and operating expenses amounting to $92,072,000 for

the years 2008-2010.

Commissioners’ Reports

Nancy E. Ryan

Management Reports

“Soup to Nuts” Process Review Update

Karen Clopton

Chief Administrative Law Judge

February 25, 2010

The Charge:President Peevey’s “Renewed Vision” message to

the CPUC staff on January 28, 2009 stated the goal as:

“Continuing the streamlining and reinvention of our processes. We’re moving more quickly now than before, but too often I think we rely on process not just to gather information and give everyone their day in court, but as a way of delaying the tough choices. Our new Chief ALJ will lead a soup-to-nuts review of our processes, and make recommendations for change.”

Summary of Recommendations at May 21, 2009 Commission Meeting

• New Agenda Format

• Subject Matter Compendiums

• Working Groups

Old Agenda Format

New Agenda Format

New Agenda Format• We are continuing to work with staff to refine the

approach for all item descriptions to ensure greater clarity of what is being considered

• By mid-year we expect to implement a new agenda system that will provide greater flexibility in the report writing and results functions and allow us to build on the format changes already implemented

Subject Matter Compendiums• Recent decisions incorporate the concepts underlying

the compendium goal (see, for example, D.10-01-022, which includes Attachment A spelling out the details of the adopted program)

• Initial focus for compendiums is:• Solar• Energy Efficiency• Procurement

• We are working with Energy Division staff to identify different audiences and how our approach to the compendium might vary by audience before settling on a specific format

Online Search Project

Drivers for project:

• Searches on website take forever

• Agency is turning 100 years old!

• Google Scholar has agreed to include Commission decisions in its content

Online Search ProjectGoals:• Improve searchability of decisions• Improve free access to decisions• Improve public access to information about areas we regulate• Allow online search providers to more easily access our online

resources

Steps:• Embed specific “metadata” in new decisions and those already

online• Digitize historical decisions that are not currently on CPUC website

Timeline: All decisions online and searchable by June 2011

Establishment of Working GroupsThree small working groups from diverse perspectives were established to address decision-making process issues that might require statutory initiatives including:

• Practice and Procedure modifications with a focus on identifying opportunities for improving initial case management, calendaring, scheduling and utilization of ADR;

• Ex Parte and Proceeding Categorization Rules; and

• Public Access, Participation and Accommodation, Public Notices, Intervenor Compensation Program;

Their reports were submitted on November 30, 2009.

Practice & Procedure Action Items

• Develop a Practitioner’s page on the website for the posting of information related to topics like:– Discovery Custom And Practice Guidelines– Updated “Docket Office FAQs”– Constitutional and statutory references– Rules of Practice and Procedure– General Orders– Resolutions/Decisions addressing practice before the

Commission– Other relevant materials

Practice & Procedure Action Items

• Accept the Working Group’s offer to assist in updating the Docket Office FAQs

• Develop FAQ related to procedure for preliminary determination of category and need for hearings and challenge/appeal opportunities

• Develop a definition/guideline for what goes on the consent agenda, modify appropriate language on the website/agenda and post a FAQ to Practitioner’s page

Practice & Procedure Action ItemsWe have formed two internal working groups to

develop:• Guidelines for use of workshops in proceedings

including:– Notice, reports, transcription, and facilitation

• Rule 1.1 (Ethics) violations procedure– Identify appropriate Rule changes to clarify process

for parties to raise Rule 1.1 charge– Incorporate training, both internal and external (for

example, at Conference of California Public Utility Counsel events)

Practice & Procedure Action Items

• Provide regular training to ALJs and Commissioner offices regarding best practices related to Scoping Memo Rulings to improve usefulness of this tool

• Continue to educate practitioners and the public about the availability of the Commission’s subscription service in order to meet certain information needs, such as notification of “revised” decisions

Practice & Procedure Action Items

• Expand the electronic filing interface to encompass documents tendered under seal, testimony and exhibits– Contract is in place and work is underway on this

expansion– We project pilot testing for electronic intake of

testimony and exhibits in June 2010

Ex Parte Action Items• Develop an "ex parte procedures" overview sheet, to emphasize

that CPUC won't tolerate violations – publish to Practitioner’s page described above

• Invite a Commissioner to undertake a pilot project to allow 1-way phone bridge to allow parties to listen in to individual ex parte meetings

• Invite ALJs and Commissioners to establish an electronic same-day (rather than 3-day) ex parte reporting rule on a proceeding specific basis in the Scoping Memo Rulings

• Invite Commissioners to utilize final oral arguments, all party meetings, ratesetting deliberative meetings, and quiet time procedures that are already available to them

• Explore efficient way for offices to maintain a public real-time log of scheduled and conducted ex parte contacts by proceeding number (currently discoverable) for easy public access

Public Participation and Access Action Items

Areas of focus are:• Public Meetings• Website Improvements• Outreach

Public Meetings Action Items

• Develop "Guidelines for Public Comment at Business Meetings," to be issued as resolution – Address whether a non-party who engaged in

reported ex parte contacts can comment at meeting – Clarify that public is able to comment at meetings

from date the PD mails   – Update the website to reflect adoption of Guidelines

Public Meetings Action Items

• Establish two non-agenda/ town hall style meetings to allow the public to comment on matters under the Commission’s jurisdiction with all Commissioners in attendance– Schedule one in Northern California and one in

Southern California

• Review and develop options for electronic sign-in procedures for Commission business meetings and PPHs

Website Improvement Action Items

• Submitted a project to the information technology group designed to allow for different ways of displaying and searching for documents and information on the website, reflecting the input and building on the mock-ups submitted

• Modified docket card data accessibility on website to conform with 30 year document retention schedule

Website Improvement Action Items

• Review the suggested improvements in structure and content made by the Public Participation and Access group. In particular, we have already implemented and expect to incorporate several additional organizational and content approaches recommended

• Expand the electronic filing system to encompass advice letters once the foundational work associated with electronic submission of testimony is completed

Outreach Action Items• Direct ALJs to highlight relevant issues

raised at Public Participation Hearings in Proposed Decisions

• Continue to educate practitioners and the public about the availability of the Commission’s subscription service in order to meet certain information needs, such as notification of ex parte communications

Rules of Practice and Procedure Changes

• Consider Rule modifications in next round of Rules of Practice and Procedure changes, including:– Rule 8.3 modifications to adopt a same day (rather than 3-day)

ex parte reporting rule – Rule 8.1(c)(3) modification to define “other public proceeding”– Moving Rule 8.5 forward within Article 8 to precede the current

Rule 8.3 to better integrate the requirements associated with Commissioner’s personal advisor

– Rule 3.2 modifications designed to streamline notice procedures developed in conjunction with efforts led by the Public Advisor’s Office

– Other suggestions by the Working Groups• We expect to submit proposed changes to the Office of

Administrative Law in September 2010

Thank you to:Working Group Members:

Mark Berry, Billie Blattner, Stephanie Chen, Joe Como, Sarah DeYoung, David Discher, Mike Florio, Marcel Hawiger, Sepideh Khosrowjah, James Lehrer, Ron Liebert, Thomas MacBride, Karen Miller, Andy Niven, Valerie

Ontiveroz, Mark Schreiber, Nick Selby, Mark Toney, Lisa Urick, Marzia ZafarWorking Group Alternates and Consultants: Michael Backstrom,

Keith Brown, Bob Finkelstein, Joel Perlstein

ALJ Division, especially the Working Group Facilitators: ALJ Regina DeAngelis, ALJ Maryam Ebke, ALJ Hallie Yacknin

_________________________

Presentation to the Commission

February 25, 2010

California Public Utilities Commission

Consumer Protection and Safety DivisionRail Operations Safety Branch

BNSF Railway

TEHACHAPI LOOP DERAILMENTFebruary 20, 2010

Tunnel Nine – Tehachapi Loop

Video credit: KBAK, Bakersfield

• Union Pacific tracks, Mojave Subdivision - shared with BNSF Railway.

• Northbound BNSF train - Barstow to Bakersfield.

• Route through Tehachapi mountains with 11 tunnels.

• 2.2% descending grade.

• Maximum authorized speed 23 mph.

Tehachapi Loop

Photo credit: Google

Close up aerial view of the Tunnel #9

Photo credit: Google

Saturday, Feb. 20th shortly after derailment

Photo credit: Tehachapi News

Tunnel #9 - North Portal

Photo credit: Kern County Fire Department

Railroad personnel, emergency responders, and CPUC & FRA investigators hold briefing

HAZMAT response to the burning Alcohol NOS car

RR crew dragging burning cars

Preparing to pull burning cars from tunnel portal

Kern Co. emergency personnel at north portal

Decision to extinguish plastics and grain car fires

Derailment occurred south of the south portal

Issues• Smoke and fume inhalation.• Cooling of tunnel and ballast.• Heavy rains during the investigation.• Rough terrain & difficult access to the site.• Sensitive balancing of needs to address

hazards, restore service, and yet find evidence for cause and compliance.

Heavy duty equipment in fire fight

Firefighting with Foam, Water, & Soil

Grinding off damaged tunnel lining

Photo credit: FRA

Laying new trackbed

Final touches to new rail

Photo credit: FRA

Trains running again – Investigation continues

Photo credit: William Puhl

ROSB Staff continues to investigate:

• Motive, Power, and Equipment. • Operating Practices – train makeup,

train handling, dynamic braking.• Track.

Thanks to ROSB Staff who were on scene for several days from 1:00 a.m. Sunday morning.

SPECIAL THANKS

to ROSB Track Inspector Dale Clugston for the many photographs and updates throughout the

derailment, and to our FRA partners.

Note: All pictures were taken by ROSB Track Inspector Dale Clugston, unless otherwise noted.

Remembering Eddie Quon1930-2010

A 55-year Veteran of the CPUC

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

March 11, 2010, at 10:00 a.m.