CPUC Public Agenda 3253 Thursday, May 6, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco

1. CPUC Public Agenda 3253Thursday, May 6, 2010, 10:00 a.m.505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Timothy Alan SimonNancy E. Ryan www.cpuc.ca.gov

2. 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: Item: 33 All items on the Closed Session Agenda

3. 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, 4, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 & 29. • 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. • Item: 37 from the Regular Agenda has 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: 5 has been moved to the Regular Agenda. • Item: 43has been withdrawn. • The following items have been held to future Commission Meetings: • Held to 5/20/10: 2, 3, 6, 10, 30, 31, 35 & 36 • Held to 6/3/10: 33

4. 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.

5. Regular Agenda – Energy Orders Item #32 [9337] New Order Instituting Rulemaking R_________ Order Instituting Rulemaking to Integrate and Refine Procurement Policies and Consider Long-Term Procurement Plans. ----------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Initiates a three-track proceeding considering long term utility electric resource procurement • policies and programs. • Initiates a track for consideration of adoption of “bundled” procurement plans pursuant to Pub. Util. • Code § 454.4 for Pacific Gas and Electric Company, San Diego Gas & Electric Company, and • Southern California Edison Company. These bundled procurement plans will authorize the utilities to • contract to procure energy resources for a ten year period to handle the projected need of their • customers. • Initiates a track for consideration of overall long-term system and local reliability procurement • needs consistent with state and Commission policies, including development of a system-level • resource plan to inform the next cycle of bundled procurement plans. • Initiates a track to consider a number of rule and policy issues related to procurement plans and • the planning process. • Continues work undertaken in Rulemaking 08-02-007 and closes that proceeding. • ESTIMATED COST: • Not known at this time.

6. Regular Agenda – Energy Orders Item #34 [9397] Decision Staying Decision 10-03-021 R06-02-012 Order Instituting Rulemaking to Develop Additional Methods to Implement the California Renewables Portfolio Standard Program. Ratesetting Comr Peevey/ALJ Simon --------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Stays Decision 10-03-021 pending resolution of petitions for modification filed April 12, 2010 and April 15, 2010. • As authorized by Rule 14.6(c)(1), waives public review and comment because temporary • injunctive relief is under consideration. • ESTIMATED COST: • None.

7. Regular Agenda - Communication Orders Item #38 [9293] Exemption for Certain Telecommunications Carriers from Compliance with Section 851 of the Public Utilities Code R09-05-006 Rulemaking on the Commission’s own Motion into the Exemption From Pub. Util. Code § 851 for Uniform Regulatory Framework and other Competitive Carriers. Quasi-Legislative Comr Peevey/ALJ McKenzie ------------------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Grants an exemption from Public Utilities Code § 851 for a period of four (4) years for carriers subject to the Uniform Regulatory Framework adopted in Decision 06-08-030 (except incumbent local exchange carriers that must still file general rate cases) when these carriers sell or dispose of certain non-controversial assets. The exemptions granted are: • Covers utility assets falling within Account Nos. 2111, 2112, 2113, 2114, 2122, 2123, 2124, 2690 and portions of 2121; • Does not include payment centers or buildings within Account 2121 that are used to provide collocation; • Requires carriers invoking the exemption to file an annual report summarizing transactions to which it applied in the previous calendar year; and • Will continue past 2014 if no party to this proceeding requests re-examination of the exemption. • Whether an exemption should be granted in connection with more controversial assets, such as those used to provide collocation, unbundled network elements, or other wholesale services, will be considered in Phase II of this proceeding. • ESTIMATED COST: • Very small costs for utilities in preparing the annual report and for the Commission to review such reports.

8. Regular Agenda – Communications Resolutions and Reports Item #5 [9306] Funding Approval for Audeamus LLC. (dba Sebastian) Last Mile Project from the California Advanced Services Fund Res T-17265 ----------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Adopts $1,154,494.50 from the California Advanced Services Fund funding for Audeamus Last Mile Project. • ESTIMATED COST: • $1,154,494.50.

9. Regular Agenda – Communication Resolutions and Reports Item #39 [9375] Funding for Mother Lode Broadband Project of Telenational Communications Inc. and Mother Lode Internet from California Advanced Services Fund Res T-17225 ------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Adopts California Advanced Services (CASF) funding for Mother Lode Broadband Project in underseved areas covering Alpine, Amador, Calveras, Tuolumne and Mariposa Counties. • ESTIMATED COST: • $3,110,064 from the CASF which represents 40% of the total project cost to provide a new level of speed throughout the Mother Lode region.

10. Item 5 - Res. T-17265 Approval of Funding for Audeamus LLC. (dba Sebastian) • Project Type: Underserved and Unserved • Project Location: Fresno County • Project Size: 20.6 square miles • 0.6 Unserved • 20.0 Underserved • Speeds: • Residential: Up to 35 mbps download and up to 5 mbps upload • Businesses: Up to 50 mbps download and up to 20 mbps upload • Total Beneficiaries: 585 households and 34 businesses • Deployment Schedule: 18 months • Amount requested: $1,154,494.50 • This project is also funded by the Recovery Act

11. Item 39 - Res. T-17225 Approval of Funding for the MotherLode Broadband Project of Telenational Communications Inc. and Mother Lode Internet • Project Type: Underserved • Areas: Tuolumne, Calaveras, Amador, Alpine & Mariposa Counties • Project Size: 525 sq. miles • Download Speed: Up to 14 mbps upload and download for residential and business • Total Households: 17,841 • Deployment Schedule: 20 months • Amount requested: $3,110,064

12. Audeamus and Mother Lode Broadband Statewide Map

13. Funding Status • Today’s CASF funding approval brings total approved CASF grants to 44 projects amounting to $91.37 million, covering 29,287 square miles, and benefiting 313,283 households • Funding for 7 CASF approved projects that were not successful in securing Recovery Act funds in round 1 and were not resubmitted for Recovery Act funding in round 2 are proposed to be rescinded at the May 20th Commission meeting, freeing up funds, of approximately $38 million allocated to these projects.

14. Regular Agenda – Communications Resolutions and Reports Item #5 [9306] Funding Approval for Audeamus LLC. (dba Sebastian) Last Mile Project from the California Advanced Services Fund Res T-17265 ----------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Adopts $1,154,494.50 from the California Advanced Services Fund funding for Audeamus Last Mile Project. • ESTIMATED COST: • $1,154,494.50.

15. Regular Agenda – Communication Resolutions and Reports Item #39 [9375] Funding for Mother Lode Broadband Project of Telenational Communications Inc. and Mother Lode Internet from California Advanced Services Fund Res T-17225 ------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Adopts California Advanced Services (CASF) funding for Mother Lode Broadband Project in underseved areas covering Alpine, Amador, Calveras, Tuolumne and Mariposa Counties. • ESTIMATED COST: • $3,110,064 from the CASF which represents 40% of the total project cost to provide a new level of speed throughout the Mother Lode region.

16. Regular Agenda – Water/Sewer Orders Item #53 [9455] Modification of Rates Charged by Sunbird Mobilehome Park and Injunction on Evictions and Disconnects Pending Resolution of This Complaint C09-11-019 Lucas D. Hernandez, Mayela Barroso, Maria Martinez, Trinidad Martinez, Janette Sandoval, Erika Toledo, Marvi Bonilla, Maria Garcia, Guadalupe Ramirez, Martha Amezquita, Socorro Hernandez, Daniel Gonzalez, Hugo Hernandez, Patricia Hernandez, Maria Razo, Aurora Cabral, Gabriel Cabrera, Severo Rosa, Mauricio Frias, Celia Ruiz, Rosa Maria Montellano, Martha Alvarado, Maria Palma, Ruben Zepeda, Adriana Ceja, Jose Meza, Samuel Espinoza, Eva Montellanos, Federico Garcia, Luis Morales vs. Sunbird Mobile Home Park, Hawkeye Asset Management, James Martin and Betty Martin. This matter is added to the Agenda pursuant to Government Code Section 11125.3(2). Ratesetting Comr Grueneich/ALJ Weatherford -------------------------------------------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Orders Sunbird Mobilehome Park to stop billing for Tier 3 and Tier 4 water usage at its current Tier 3 and Tier 4 rates and to charge for all water usage above the current Tier 2 usage level at Tier 2 rates, pending the resolution of this complaint. • Pending resolution of this complaint, Sunbird Mobilehome Park may not use non-payment of the tenant’s water bill as a basis for eviction or disconnection of water service. • Orders Sunbird Mobilehome Park to maintain records of the revenues that are not billed as a result of their order, for possible future recovery if this proceeding determines that less-than-reasonable revenues have been collected as a result of the required application of Tier 2 rates to Tier 3 and Tier 4 usage. • ESTIMATED COST: • This temporary injunctive relief will lower rates for customers whose usage exceeds current Tier 2 limits.

17. Regular Agenda – Legislative and Other Matters Item #40 [9349] Electrical and Gas Corporations: Collection of Charges AB 1879 (Beall) ----------------------------------------------------------------------------------- This bill would prohibit an electrical corporation or gas corporation from billing a residential customer or small commercial customer, as defined, for charges that were unbilled or undercharged for a period exceeding 3 months, if the previous mistake in billing is the result of a meter error or billing error. The bill would additionally require that the risk of undercollection of lawful tariff charges by an electrical corporation or gas corporation that results from the above-described 3-month backbilling limitation, is borne by the shareholders of the utility. (Legislative Subcommittee Recommendation: Support)

18. Regular Agenda – Legislative and Other Matters Item #41 [9419] Electrical Transmission: Renewable Energy Resources AB 1954 (Skinner) ----------------------------------------------------------------------------------- This bill would authorize the California Public Utilities Commission to approve the recovery in retail rates by an electrical corporation of certain costs for transmission facilities that are incurred in certain circumstances if not approved for recovery in transmission rates by the Federal Energy Regulatory Commission. (Legislative Subcommittee Recommendation: Support)

19. Regular Agenda – Legislative and Other Matters Item #42 [9420] Energy Storage Systems AB 2514 (Skinner) ----------------------------------------------------------------------------------- This bill would require the California Public Utilities Commission, by April 1, 2011, to open a proceeding to establish procurement targets for each electrical corporation for viable and cost-effective energy storage systems and, by January 1, 2013, to adopt an appropriate energy storage system procurement target to be achieved by each electrical corporation by January 1, 2015, and a second target to be achieved by January 1, 2020. (Legislative Subcommittee Recommendation: Oppose unless Amended)

20. Regular Agenda – Legislative and Other Matters Item #44 [9421] Safe Digging Month ACR 115 (Emmerson) ----------------------------------------------------------------------------------- This resolution proclaims the month of April 2010 as California Safe Digging Month in honor of the services provided by the One Call Center, which are at no cost to the caller; and the free notification service provided by USA/SC and USA North has resulted in a dramatic reduction in the number of accidents causing personal injury and the interruption of vital services. (Legislative Subcommittee Recommendation: Support)

21. Regular Agenda – Legislative and Other Matters Item #45 [9422] Telephone Directory Distribution SB 920 (Yee) ----------------------------------------------------------------------------------- This bill would require a telephone corporation or third-party vendor, as defined, to allow a telephone service customer to opt out of receiving an alphabetical telephone directory, as prescribed. The bill would require those entities to comply with certain other requirements regarding directory recycling and recycled content. (Legislative Subcommittee Recommendation: Oppose Unless Amended)

22. Regular Agenda – Legislative and Other Matters Item #46 [9357] Public Utilities Commission: Procedures: Rehearings SB 1414 (Kehoe) ----------------------------------------------------------------------- Public Utilities Commission: procedures: rehearings. (Legislative Subcommittee Recommendation: Oppose unless Amended)

23. Regular Agenda – Legislative and Other Matters Item #47 [9360] Electric Vehicles: Electric Vehicle Owner Education Handbook SB 1455 (Kehoe) ----------------------------------------------------------------------- This bill would require, by January 1, 2013, the Commission, in consultation with the Energy Commission, electrical corporations, the motor vehicle industry, and the California Electric Transportation Coalition, to develop an electric vehicle owner handbook containing specified information. (Legislative Subcommittee Recommendation: Support with Amendments)

24. Commissioners’ Reports

25. Management Reports

26. Biannual Report May 6, 2010 California Public Utilities Commission

27. The Stewardship Council protects and enhances watershed lands and uses, and invests in efforts to improve the lives of young Californians through connections with the outdoors. Mission

28. Land Conservation 141,000 acres 100% to be protected by easements or equivalent Approximately 50% of lands available for donation

29. Land Conservation Program • Lands are located in nine watersheds in 22 counties • 1,000 parcels • Grouped into 47 planning units

30. Land Conservation Program Recent Progress • Transaction negotiations underway with recommended donees at Kennedy Meadows pilot planning unit • Stewardship Council is evaluating capacity of interested donees of fee title for 10 Round 1 planning units

31. Land Conservation ProgramRecent Progress (cont.) • Stewardship Council is meeting with several organizations interested in holding conservation easements over multiple planning units in three watersheds

32. Land Conservation Program Next Steps • Summer/Fall 2010 - Land Stewardship Proposals will be submitted by interested donees of fee title for Round 1 planning units • June 2010 - process begins to select fee title holders on Round 2 planning units

33. Land Conservation Program Next Steps • First 851 filings are expected in late 2010 or early 2011

34. Forested Watershed Lands – Carbon Sequestration PG&E’s forested lands have value for carbon sequestration

35. PG&E’s Forested Lands • 52,000 acres of commercial conifer and hardwood species • 12,000 acres of non-commercial hardwood and oakwood species • Approximately 40,000 of these forested acres are on lands currently designated as available for donation

36. Forested Watershed Lands – Carbon Sequestration • On April 30, PG&E submitted Forest Project applications with the Climate Action Reserve listing 27 individual projects for consideration as part of the Reserve’s carbon offset program • The listed “improved forest management” projects encompass 63,000 acres in total

37. Climate Action Reserve Carbon Offset Program • PG&E’s listing of the projects by the Reserve’s April 30 deadline preserves an opportunity to register pre-existing projects to obtain credit for historic Carbon Reserve Tons • PG&E has 30 months following listing to complete the verification and registration process for its projects

38. Climate Action Reserve Carbon Offset Program • PG&E and the Stewardship Council will receive stakeholder input and consider potential impacts on PG&E’s Land Conservation Commitment prior to PG&E pursuing verification and registration of any of the projects

39. Financial Update • In January 2010, Stewardship Council received the 7th installment of PG&E ratepayer funds - $10 million • Total commitment of $100 million over 10 years • $70 million for land conservation program • $30 million for youth investment program • $53 million in investments as of 3/31/10

40. Financial Update

41. Youth Investment Program

42. Youth Investment Program • Connecting underserved California youth to the outdoors • Park investments • Support for outdoor programs • Total funding commitment of $30 million

43. Grantmaking 2009 • Over $2.1 million awarded to 48 organizations

44. 2009 Stakeholder Survey • Increase understanding of our grantmaking • Surveyed award winners and non-winners

45. 2009 Stakeholder Survey • Very favorable opinions about the Stewardship Council’s: • Outreach • Application process • Responsiveness and communications • Grantmaking • Role in field of outdoor and environmental programming

46. Grantmaking 2010 • $2.1 million in funding • Over $300K in grants awarded to date • Grant review panels • Ensure integrity/ transparency • Youth Advisory Panel

47. Youth Investment Program Leadership • Evaluation workgroup • Regional gatherings • Native American Best Practices Workshop • Yosemite Youth Program Providers Summit

48. Foundation for Youth Investment (FYI) • New nonprofit approved by SC Board • Pro Bono legal work offered by Morrison & Foerster • First 3 board members appointed by SC

49. Yosemite Field Tour & Site Visit • WildLink Site Visit • Connecting Central Valley youth to Yosemite • National Parks discussion

50. Management Reports