ADVICE 3516-E - Southern California Edison · ADVICE 3516-E (U 338-E) - 5 - November 21, 2016...

P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-4177 Fax (626) 302-4829

November 21, 2016

ADVICE 3516-E (U 338-E)

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

SUBJECT: Updated Electricity and Natural Gas Procurement Limits and Ratable Rate Limits in Southern California Edison Company's 2014 Assembly Bill 57 Bundled Procurement Plan

PURPOSE

In accordance with Ordering Paragraph (OP) 1 of Decision (“D.”)15-10-031, Southern California Edison Company (SCE) respectfully submits this advice filing to update the electricity and natural gas limits in SCE’s approved 2014 Assembly Bill (AB) 57 Bundled Procurement Plan (“BPP”) covering the years 2015 through 2024.1 On January 20, 2016, SCE submitted Advice 3349-E, SCE’s 2014 AB 57 Conformed BPP, which was approved by the California Public Utilities Commission (“Commission” or “CPUC”) on February 16, 2016. D.15-10-031, OP 1, approved the portion of SCE’s BPP allowing SCE to update “its electricity and/or natural gas position limits and ratable rate limits in the form of a Tier 1 Advice Letter during years in which SCE does not file an updated conformed bundled procurement plan.”2 INTRODUCTION

This advice letter updates the rates and limits tables in Appendix E to SCE’s 2014 AB 57 Conformed BPP. D.15-01-031 granted SCE authority to do so by approving the language on Sheets 68-69 of the BPP permitting SCE to update the electricity and natural gas rates and limits via a Tier 1 Advice Letter during the years between BPP updates through the biennial LTPP cycle.3

In accordance with General Order (“GO”) 96-B, the confidentiality of information included in this advice letter is described below. Consistent with past practice, SCE provides clean and redlined versions of the replacement sheets for the confidential and public Appendix E to the BPP in the attachments to this advice filing as follows:

1 D.15-10-031, issued October 23, 2015, approved SCE’s BPP, with modifications, in Rulemaking

(“R.”)13-12-010. 2 SCE’s BPP at Sheets 68-69. 3 Id.

Russell Worden Managing Director, State Regulatory Operations

ADVICE 3516-E (U 338-E) - 2 - November 21, 2016

• Attachment A: Confidentiality Declaration • Attachment B: Proposed Protective Order • Attachment C: Redlined Confidential Version of Appendix E to SCE’s BPP • Attachment D: Clean Confidential Version of Appendix E to SCE’s BPP • Attachment E: Redlined Public Version of Appendix E to SCE’s BPP • Attachment F: Clean Public Version of Appendix E to SCE’s BPP

DESCRIPTION OF CHANGES TO BPP APPENDIX E

In Appendix E on Sheets E-1 through E-10, SCE updated the tables containing the electricity and natural gas procurement limits and ratable rate limits. In accordance with Section III.C.3.g, Sheets 73-74 of SCE’s BPP, the calculations for the updated tables are consistent with SCE’s Commission-authorized limits methodology. In compliance with D.15-01-031, SCE updated its energy limits for the period 2017 through 2026 using SCE’s preferred planning assumptions.4 All limits for the period 2015 through 2016 remain the same as those approved in D.15-01-031 and are based on the CPUC’s Standardized Planning Assumptions.5

I. Input Assumptions

The table below shows a summary of SCE’s updated assumptions (November 2016 Limits Update) as compared to the “2014 Conformed Planning Assumptions” approved by D.15-01-0316:

2014 AB 57 Conformed

Bundled Procurement Plan

November 2016 Limits Update

Demand Forecast

California Energy Commission’s (CEC’s) 2013

Integrated Energy Policy Report

(IEPR) Demand Forecast

California Energy

Commission’s (CEC’s) 2015 Integrated

Energy Policy Report (IEPR) Demand

Forecast

Natural Gas Prices

CEC's 2013 IEPR NG Henry Hub Price plus SCE

locational adders

Market Price Referent (MPR) methodology (Average of SoCal Border prices plus

SCE locational adders

4 See D.12-01-033, at 16. 5 Id. 6 In D.12-01-033, at 15-16, the Commission authorized SCE “to generally use its preferred analysis

methodology, but only for up to five years from the date of this decision.”


from June 28 to July 28, 2016)

GHG Prices

CEC 2013 IEPR natural gas market assessment outlook report GHG Price

MPR Methodology (Average Market Price from June 28 to July

28, 2016)

Power Prices

SCE Internal Fundamental Forecast using Plexos WECC model and Natural Gas and GHG

Price as above

SCE's updated assumptions reflect the changes SCE incorporated into the 2014 AB 57 Conformed Planning Assumptions for the period of 2017 to 2026.

A. Load Forecast

For the period 2017-2026, the 2015 IEPR bundled peak demand and the annual bundled sales forecasts both decreased when compared to the 2013 IEPR forecasts in the 2014 AB 57 Conformed Planning Assumptions. SCE has incorporated Community Choice Aggregation assumptions in both the 2014 Conformed Plan and the November 2016 Limits Update.

B. Natural Gas and GHG Prices Forecast

Natural gas prices decreased compared to those in the 2014 Conformed Plan. Increased shale gas production and gas pipeline capacity, as well as lower demand for gas due to increased renewable generation, are the major drivers behind the lower prices.

The GHG price forecast decreased compared to the 2014 Conformed Plan. This decrease is attributable to a lower market outlook for the demand of GHG allowances, mostly attributable to increased renewable generation and other actions to reduce GHG emissions.

C. Fundamental SP-15 Price Forecast

The spread between on- and off-peak energy prices reduced compared to the 2014 Conformed Plan. This decrease is attributable to the consistently lower peak prices during the day caused by increased renewable generation, as well as the smaller spread between on- and off-peak average energy prices actually seen in the SP-15 market due to lower gas prices.

D. Portfolio Dispatch

Implied market heat rates (“IMHR”) in the high dispatch case mostly stays unchanged compared to the 2014 Conformed Plan, due to lower power prices and lower gas prices. The decrease of on- and off-peak prices result in lower dispatch from SCE’s utility-owned generation (“UOG”) facilities (Mountainview and five peakers) and tolling contracts in SCE’s existing portfolio.


II. Position Limits

A. Electric Capacity Position Limits

The capacity open position is lower for 2017 compared to the 2014 Conformed Plan. The decrease in 2017 is attributable to the reduced demand forecast and increase of qualified Resource Adequacy (“RA”) capacity in SCE’s portfolio.

B. On- and Off-Peak Energy Purchase limits

On-peak and off-peak energy purchase open positions are lower in 2017 through 2026 compared to the 2014 Conformed Plan due to reduced demand across the years and increased output from renewable resources. Lower prices result in lower dispatch from SCE’s UOG facilities and tolling contracts, but the increase in open position created by lower dispatch has been offset by lower demand and the significantly increased output from renewable resources, especially solar resources.

C. On- and Off-Peak Energy Sale limits

On- and off-peak energy sales open positions are lower in 2017 through 2026 compared to the 2014 Conformed Plan due to the loss of energy contribution from SCE-controlled tolling contracts, as well as lower on- and off-peak prices in the high dispatch case, which results in a lower dispatch from SCE’s UOG facilities and tolling contracts. The decrease in prices are attributable to a lower gas price and lower demand of energy due to the significantly increased output from renewable resources, especially solar resources.

D. Gas Storage Limits

The gas withdrawal and inventory limits decreased compared to the 2014 Conformed Plan because of the smaller volatility of gas usage resulting from a smaller gas resource portfolio. Gas injection limits increased due to a larger dispatch difference between the base case and the low case.

CONFIDENTIALITY

SCE requests confidential treatment of Confidential Attachments C and D to this advice letter. The Confidentiality Declaration attached as Attachment A identifies the information for which SCE seeks confidential treatment. Appropriate parties can obtain the confidential version of this advice letter (in accordance with SCE’s Proposed Protective Order, as discussed below) upon execution of the required non-disclosure agreement. Parties wishing to obtain access to the confidential version of this advice letter may contact Rebecca Meiers-De Pastino in SCE’s Law Department at [email protected] or (626) 302-6016 to obtain a non-disclosure agreement.

In accordance with GO 96-B, a copy of SCE’s Proposed Protective Order is attached hereto as Attachment B. It is appropriate to accord confidential treatment to the information for which SCE requests confidential treatment because D.06-06-066 and D.08-04-023 entitle this information to


confidentiality protection, and it is required to be filed by advice letter as part of the process for obtaining Commission approval. SCE would object if the information were disclosed in an aggregated format.

Attachment A provides the information in this advice letter for which SCE requests confidential treatment, the location of the information, and the length of time for which the information should remain confidential. This information is entitled to confidentiality protection pursuant to D.06-06-066 (as provided in the investor-owned utility (IOU) Matrix) and D.08-04-023. Attachment A also provides the specific provisions of the IOU Matrix that apply to the confidential information in this advice letter.

TIER DESIGNATION

Pursuant to GO 96-B, Energy Industry Rule 5.1, this advice letter is submitted with a Tier 1 designation in accordance with D.15-01-031, Ordering Paragraph 1 and the 2014 BPP at Sheet 68.

EFFECTIVE DATE

SCE requests that its updated limits in this advice letter become effective on January 1, 2017 in accordance with SCE’s AB 57 BPP, Sheet 79.

NOTICE

Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be mailed to:

CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: [email protected]

Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above).

In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:


Russell Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770

Telephone: (626) 302-4177 Facsimile: (626) 302-4829 E-mail: [email protected]

Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: [email protected]

With a copy to:

Rebecca Meiers-De Pastino Attorney Southern California Edison Company 2244 Walnut Grove Avenue, 3rd Floor Rosemead, CA 91770 Facsimile: (626) 302-6962 E-mail: [email protected]

There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously.

In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B, participants in its Procurement Review Group, and R.12-03-014 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to [email protected] or at (626) 302-3719. For changes to all other service lists, please contact the Commission’s Process Office at (415) 703-2021 or by electronic mail at [email protected].

Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE’s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.


For questions, please contact Janos Kakuk at (626) 302-3584 or by electronic mail at: [email protected].

Southern California Edison Company

/s/ Russell G. Worden Russell G. Worden

RGW:jk:cm Enclosures

CALIFORNIA PUBLIC UTILITIES COMMISSION

ADVICE LETTER FILING SUMMARY ENERGY UTILITY

MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Company name/CPUC Utility No.: Southern California Edison Company (U 338-E)

Utility type: Contact Person: Darrah Morgan

ELC GAS Phone #: (626) 302-2086

PLC HEAT WATER E-mail: [email protected]

E-mail Disposition Notice to: [email protected]

EXPLANATION OF UTILITY TYPE

ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water

(Date Filed/ Received Stamp by CPUC)

Advice Letter (AL) #: 3516-E Tier Designation: 1

Subject of AL: Updated Electricity and Natural Gas Procurement Limits and Ratable Rate Limits in Southern California Edison Company's 2014 Assembly Bill 57 Bundled Procurement Plan

Keywords (choose from CPUC listing): Compliance

AL filing type: Monthly Quarterly Annual One-Time Other

If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #:

Decision 15-10-031

Does AL replace a withdrawn or rejected AL? If so, identify the prior AL:

Summarize differences between the AL and the prior withdrawn or rejected AL:

Confidential treatment requested? Yes No

If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Rebecca Meiers-De Pastino, Law Department, (626) 302-6016 or [email protected]

Resolution Required? Yes No

Requested effective date: 1/1/17 No. of tariff sheets: -0-

Estimated system annual revenue effect: (%):

Estimated system average rate effect (%):

When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting).

Tariff schedules affected: None

Service affected and changes proposed1:

Pending advice letters that revise the same tariff sheets: N/A

1 Discuss in AL if more space is needed.

Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to:

CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: [email protected]

Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Telephone: (626) 302-4177 Facsimile: (626) 302-4829 E-mail: [email protected] Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: [email protected] With a copy to: Rebecca Meiers-De Pastino Attorney Southern California Edison Company 2244 Walnut Grove Avenue, 3rd Floor Rosemead, CA 91770 Facsimile: (626) 302-6962 E-mail: [email protected]

Attachment A

Confidentiality Declaration

Attachment B

Proposed Protective Order

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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Updated Electricity and Natural Gas Procurement Limits and Ratable Rate Limits in Southern California Edison Company's 2014 Assembly Bill (AB) 57 Bundled Procurement Plan

) ) Advice 3516-E

PROTECTIVE ORDER

1. Scope. This Protective Order shall govern access to and the use of Protected

Materials, produced by, or on behalf of, any Disclosing Party (as defined in Paragraph 2 below)

in this proceeding.

2. Definitions

In addition to the terms defined and capitalized in other sections of this Protective Order,

the following terms are defined for the purposes of this Protective Order:

A. For purposes of this Protective Order, the term “Protected Materials”

means: (i) trade secret, market sensitive, or other confidential and/or proprietary information as

determined by the Disclosing Party in accordance with the provisions of Decision (“D.”) 06-06-

066 and subsequent decisions, including D.14-10-033 which governs the treatment of market

sensitive greenhouse gas data and information, General Order 66-C, Public Utilities Code section

454.5(g), or any other right of confidentiality provided by law; or (ii) any other materials that are

made subject to this Protective Order by the Assigned Administrative Law Judge (“Assigned

ALJ”), Law and Motion Administrative Law Judge (“Law and Motion ALJ”), Assigned

Commissioner, the California Public Utilities Commission (“Commission”), or any court or

other body having appropriate authority. Protected Materials also include memoranda,

handwritten notes, spreadsheets, computer files and reports, and any other form of information

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(including information in electronic form) that copies, discloses, incorporates, includes or

compiles other Protected Materials or from which such materials may be derived (except that any

derivative materials must be separately shown to be confidential). Protected Materials do not

include: (i) any information or document contained in the public files of the Commission or any

other state or federal agency, or in any state or federal court; or (ii) any information that is public

knowledge, or which becomes public knowledge, other than through disclosure in violation of

this Protective Order or any other nondisclosure agreement or protective order.

B. The term “redacted” refers to situations in which Protected Material in a

document, whether the document is in paper or electronic form, have been covered, blocked out,

or removed.

C. The term “Disclosing Party” means a party who initially discloses any

specified Protected Material in this proceeding.

D. The term “Requesting Party” means any party that is requesting receipt of

Protected Material from a Disclosing Party.

E. The term “Party” refers to the Requesting Party or the Disclosing Party

and the term “Parties” refers to both the Requesting Party and the Disclosing Party.

F. The term “Market Participant” refers to a Requesting Party that is:

1) A person or entity, or an employee of an entity, that engages in the wholesale purchase, sale or marketing of energy or capacity, or the bidding on or purchasing of power plants, or bidding on utility procurement solicitations, or consulting on such matters, subject to the limitations in 3) below.

2) A trade association or similar organization, or an employee of such organization,

a) whose primary focus in proceedings at the Commission is to advocate for persons/entities that purchase, sell or market energy or capacity at wholesale; bid on, own, or purchase power plants; or bid on utility procurement solicitations; or

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b) a majority of whose members purchase, sell or market energy or capacity at wholesale; bid on, own, or purchase power plants; or bid on utility procurement solicitations; or

c) formed for the purpose of obtaining Protected Materials; or

d) controlled or primarily funded by a person or entity whose primary purpose is to purchase, sell or market energy or capacity at wholesale; bid on, own, or purchase power plants; or bid on utility procurement solicitations.

3) A person or entity that meets the criteria of 1) above is not a Market Participant for purpose of access to Protected Materials unless the person/entity seeking access to Protected Materials has the potential to materially affect the price paid or received for electricity if in possession of such information. An entity will be considered not to have such potential if:

a) the person or entity’s participation in the California electricity market is de minimis in nature. In the resource adequacy proceeding (R.05-12-013) it was determined in D.06-06-064 § 3.3.2 that the resource adequacy requirement should be rounded to the nearest megawatt (MW), and load serving entities (LSEs) with local resource adequacy requirements less than 1 MW are not required to make a showing. Therefore, a de minimis amount of energy would be less than 1 MW of capacity per year, and/or an equivalent of energy; and/or

b) the person or entity has no ability to dictate the price of electricity it purchases or sells because such price is set by a process over which the person or entity has no control, i.e., where the prices for power put to the grid are completely overseen by the Commission, such as subject to a standard offer contract or tariff price. A person or entity that currently has no ability to dictate the price of electricity it purchases or sells under this section, but that will have such ability within one year because its contract is expiring or other circumstances are changing, does not meet this exception; and/or

c) the person or entity is a cogenerator that consumes all the power it generates in its own industrial and commercial processes, if it can establish a legitimate need for Protected Materials.

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G. The term “Non-Market Participant” refers to a Requesting Party that does

not meet the definition of Market Participant. The California Independent System Operator is

deemed a Non-Market Participant for purposes of this Protective Order.

H. “Reviewing Representatives” are limited to person(s) designated in

accordance with Paragraph 5 who meet the following criteria:

1) Reviewing Representatives may not currently be engaged in: (a) a transaction for the purchase, sale, or marketing at wholesale of electrical energy or capacity or natural gas (or the direct supervision of any employee(s) engagement in such a transaction); (b) the bidding on or purchasing of power plants (or the direct supervision of any employee(s) engagement in such a transaction); or (c) knowingly providing electricity or gas marketing consulting or advisory services to others in connection with a transaction for the purchase, sale, or marketing at wholesale of electrical energy or capacity or natural gas or the bidding on or purchasing of power plants (or the direct supervision of any employee(s) engagement in such a transaction or consulting).

2) Reviewing Representatives may not be an employee of a Market Participant. If the Market Participant or Non-Market Participant chooses to retain outside attorneys, consultants, or experts in the same law firm or consulting firm to provide advice in connection with marketing activities, then the attorney, consultant, or expert serving as a Reviewing Representative must be separated by an ethics wall consistent with the ethics wall requirements in D.11-07-028, as that decision may be subsequently modified or changed by the Commission, from those in the firm who are involved in wholesale commercial dealings.

3) Reviewing Representatives shall use Protected Materials only for the purpose of participating in the Commission proceeding in which they received the information.

4) Reviewing Representatives are permitted to participate in regulatory proceedings on behalf of Market Participants and Non-Market Participants.

5) All Reviewing Representatives are required to execute the Nondisclosure Certificate attached to this Protective Order and are bound by the terms of this Protective Order.

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I. The term “Authorized Reviewers” refers to: (1) a Requesting Party that is

a Non-Market Participant; or (2) a Reviewing Representative of a Requesting Party. A

Requesting Party that is a Market Participant is not an Authorized Reviewer but it may designate

a Reviewing Representative in accordance with Paragraph 5.

J. The term “Nondisclosure Certificate” refers to the Nondisclosure

Certificate attached as Appendix A.

3. Designation, Filing, and Service of Protected Materials.

When filing or providing in discovery any documents or items containing Protected

Materials, a party shall physically mark such documents (or in the case of non-documentary

materials such as computer diskettes, on each item) as “PROTECTED MATERIALS SUBJECT

TO PROTECTIVE ORDER,” or with words of similar import as long as one or more of the

terms “Protected Materials” or “Protective Order” is included in the designation to indicate that

the materials in question are Protected Materials. All materials so designated shall be treated as

Protected Materials unless and until: (a) the designation is withdrawn pursuant to Paragraph 14

hereof; (b) an Assigned ALJ, Law and Motion ALJ, Assigned Commissioner, or the Commission

makes a determination that: (i) the document does not contain Protected Materials or does not

warrant confidential treatment or (ii) denies a motion to file the document under seal; or (c) the

document or information becomes public knowledge, other than through disclosure in violation

of this Protective Order or any other nondisclosure agreement or protective order. However, the

Disclosing Party has the burden of showing that the documents are Protected Materials, and

merely marking a document “Protected Materials” is insufficient to meet that burden.

All documents containing Protected Materials that are tendered for filing with the

Commission shall be placed in sealed envelopes or otherwise appropriately protected and shall

be tendered with a motion to file the document under seal pursuant to Rule 11.4 of the

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Commission’s Rules of Practice and Procedure. All documents containing Protected Materials

that are served on parties in a proceeding shall be placed in sealed envelopes or otherwise

appropriately protected and shall be endorsed to the effect that they are served under seal

pursuant to this Protective Order. Such documents shall only be served upon Authorized

Reviewers and persons employed by or working on behalf of the Commission. Service upon

Authorized Reviewers and persons employed by or working on behalf of the Commission may

either be: (a) by electronic mail in accordance with the procedures adopted in this proceeding;

(b) by facsimile; or (c) by overnight mail or messenger service. Whenever service of a document

containing Protected Materials is made by overnight mail or messenger service, the Assigned

ALJ shall be served with such document by the same means and at the same time.

4. Redaction of Documents. Whenever a Party files, serves or provides in discovery

a document that includes Protected Materials (including but not limited to briefs, testimony,

exhibits, and responses to data requests), such Party shall also prepare a redacted version of such

document. The redacted version shall enable persons familiar with this proceeding to determine

with reasonable certainty the nature of the data that has been redacted and where the redactions

occurred. The redacted version of a document to be filed shall be served on all persons on the

service list, and the redacted version of a discovery document shall be served on all persons

entitled thereto.

5. Designation of Reviewing Representatives. The Requesting Party shall provide

written notice identifying its proposed Reviewing Representative(s) to the Disclosing Party

before the Disclosing Party provides any Protected Materials to the Requesting Party’s

Authorized Reviewers. The written notice shall include the information identified in this

paragraph. If the Requesting Party decides to designate any additional Reviewing

Representative(s) after the Requesting Party’s Authorized Reviewers receive Protected

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Materials, the Requesting Party shall identify the additional proposed Reviewing

Representative(s) to the Disclosing Party before the Requesting Party provides Protected

Materials to the additional Reviewing Representative(s). Within five (5) business days after

receiving written notice of the identity of any Reviewing Representative, the Disclosing Party

may provide the Requesting Party with a written objection to a specific Reviewing

Representative stating the grounds for the objection. Any dispute concerning whether an

identified person or entity is an appropriate Reviewing Representative shall be resolved through

the dispute resolution procedures in Paragraph 11 of this Protective Order. If a Disclosing Party

objects to a specific Reviewing Representative within five (5) business days after the Reviewing

Representative is identified, the Parties shall not provide any Protected Materials to the disputed

Reviewing Representative until the Parties are able to resolve the dispute consistent with the

dispute resolution procedures in Paragraph 11. Failure by the Disclosing Party to object within

five (5) business days does not waive the Disclosing Party’s right to later object to the Reviewing

Representative, even if Protected Materials has already been disclosed. However, further

disclosure of Protected Materials would be stayed until the parties are able to resolve the dispute

consistent with the dispute resolution procedures in Paragraph 11.

Reviewing Representative(s) have a duty to disclose to the Disclosing Party any potential

conflict of interest that puts the Reviewing Representative in violation of D.06-12-030, as

modified by subsequent decisions of the Commission. A resume or curriculum vitae is

reasonable disclosure of such potential conflicts, and should be the default evidence provided in

most cases.

6. Nondisclosure Certificates. A Reviewing Representative shall not inspect,

participate in discussions regarding, or otherwise be granted access to, Protected Materials unless

and until he or she has first completed and executed a Nondisclosure Certificate, attached hereto

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as Appendix A, and delivered the signed Nondisclosure Certificate to the Disclosing Party. The

Disclosing Party shall retain the executed Nondisclosure Certificates pertaining to the Protected

Materials it has disclosed and shall promptly provide copies of the Nondisclosure Certificates to

Commission Staff upon request.

7. Access to Protected Materials and Use of Protected Materials. Subject to the

terms of this Protective Order, Authorized Reviewers shall be entitled to access any Protected

Materials and may make copies of Protected Materials, but such copies become Protected

Materials. Authorized Reviewers may make notes of Protected Materials, which shall be treated

as Protected Materials if such notes disclose any Protected Materials. Protected Materials

obtained by a Party in this proceeding may also be requested by that Party in a subsequent

Commission proceeding, subject to the terms of any nondisclosure agreement or protective order

governing that subsequent proceeding, without constituting a violation of this Protective Order.

8. Maintaining Confidentiality of Protected Materials. Each Authorized Reviewer

shall treat Protected Materials as confidential in accordance with this Protective Order and the

Nondisclosure Certificate. Protected Materials shall not be used except as necessary for

participation in this proceeding, and shall not be disclosed in any manner to any person except:

(i) Authorized Reviewers; (ii) an Authorized Reviewer’s employees and administrative

personnel, such as clerks, secretaries, and word processors, to the extent necessary to assist the

Authorized Reviewer, provided that they shall first ensure that such personnel are familiar with

the terms of this Protective Order and have signed a Nondisclosure Certificate; and (iii) persons

employed by or working on behalf of the Commission. Authorized Reviewers shall adopt

suitable measures to maintain the confidentiality of Protected Materials they have obtained

pursuant to this Protective Order, and shall treat such Protected Materials in the same manner as

they treat their own most highly confidential information.

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Authorized Reviewers shall be liable for any unauthorized disclosure or use by

themselves and/or employees, paralegals, or administrative staff. In the event any Authorized

Reviewer is requested or required by applicable laws or regulations, or in the course of

administrative or judicial proceedings (in response to oral questions, interrogatories, requests for

information or documents, subpoena, civil investigative demand or similar process) to disclose

any of Protected Materials, the Authorized Reviewer shall immediately inform the Disclosing

Party of the request, and the Disclosing Party may, at its sole discretion and cost, direct any

challenge or defense against the disclosure requirement, and the Authorized Reviewer shall

cooperate in good faith with such Party either to oppose the disclosure of the Protected Materials

consistent with applicable law, or to obtain confidential treatment of the Protected Materials by

the person or entity who wishes to receive them prior to any such disclosure. If there are

multiple requests for substantially similar Protected Materials in the same case or proceeding

where an Authorized Reviewer has been ordered to produce certain specific Protected Materials,

the Authorized Reviewer may, upon request for substantially similar materials by another person

or entity, respond in a manner consistent with that order to those substantially similar requests.

9. Return or Destruction of Protected Materials. Protected Materials shall remain

available to Authorized Reviewers until an order terminating this proceeding becomes no longer

subject to judicial review. If requested to do so in writing after that date, the Authorized

Reviewers shall, within fifteen days after such request, return the Protected Materials to the

Disclosing Party that produced such Protected Materials, or shall destroy the materials, except

that copies of filings, official transcripts and exhibits in this proceeding that contain Protected

Materials, and notes of Protected Materials may be retained, if such Protected Materials are

maintained in accordance with Paragraph 8. Within such time period each Authorized Reviewer,

if requested to do so, shall also submit to the Disclosing Party an affidavit stating that, to the best

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of its knowledge, all Protected Materials have been returned or have been destroyed or will be

maintained in accordance with Paragraph 8. To the extent Protected Materials are not returned

or destroyed, they shall remain subject to this Protective Order.

In the event that a Reviewing Representative to whom Protected Materials are disclosed

ceases to be engaged to provide services in this proceeding, then access to such materials by that

person shall be terminated and the Reviewing Representative shall immediately return or destroy

all Protected Materials, or provide an affidavit stating that all Protected Materials and all notes of

Protected Materials will be maintained in accordance with Paragraph 8. Even if a Reviewing

Representative is no longer engaged in this proceeding, every such person shall continue to be

bound by the provisions of this Protective Order and the Nondisclosure Certificate.

10. Access and Use by Governmental Entities.

A. In the event the Commission receives a request from the California Energy

Commission (“CEC”) for a copy of or access to any Party’s Protected Materials, the procedure

for handling such requests shall be as follows. Not less than five (5) business days after

delivering written notice to the Disclosing Party of the request, the Commission shall release

such Protected Materials to the CEC upon receipt from the CEC of an Interagency Information

Request and Confidentiality Agreement (“Interagency Confidentiality Agreement”). Such

Interagency Confidentiality Agreement shall: (i) provide that the CEC will treat the requested

Protected Materials as confidential in accordance with this Protective Order; (ii) include an

explanation of the purpose for the CEC’s request, as well as an explanation of how the request

relates to furtherance of the CEC’s functions; (iii) be signed by a person authorized to bind the

CEC contractually; and (iv) expressly state that furnishing of the requested Protected Materials

to employees or representatives of the CEC does not, by itself, make such Protected Materials

public. In addition, the Interagency Confidentiality Agreement shall include an express

11

acknowledgment of the Commission’s sole authority (subject to judicial review) to make the

determination whether the Protected Materials should remain confidential or be disclosed to the

public, notwithstanding any provision to the contrary in the statutes or regulations applicable to

the CEC.

B. In the event the Commission receives a request for a copy of or access to a

party’s Protected Materials from a state governmental agency other than the CEC that is

authorized to enter into a written agreement sufficient to satisfy the requirements for maintaining

confidentiality set forth in Government Code Section 6254.5(e), the Commission may, not less

than five (5) business days after giving written notice to the Disclosing Party of the request,

release such Protected Materials to the requesting governmental agency, upon receiving from the

requesting agency an executed Interagency Confidentiality Agreement that contains the same

provisions described in Paragraph 10.A above.

C. The CEC may use Protected Materials when needed to fulfill its statutory

responsibilities or cooperative agreements with the Commission. Commission confidentiality

designations will be maintained by the CEC in making such assessments, and the CEC will not

publish any assessment that directly reveals the data or allows the data submitted by an

individual load serving entity to be “reverse engineered.”

11. Dispute Resolution. All disputes that arise under this Protective Order, including

but not limited to alleged violations of this Protective Order and disputes concerning whether

materials were properly designated as Protected Materials, shall first be addressed by the parties

through a meet and confer process in an attempt to resolve such disputes. If the meet and confer

process is unsuccessful, either party may present the dispute for resolution to the Assigned ALJ

or the Law and Motion ALJ.

12

12. Other Objections to Use or Disclosure. Nothing in this Protective Order shall be

construed as limiting the right of a Party, the Commission Staff, or a state governmental agency

covered by Paragraph 10 to object to the use or disclosure of Protected Materials on any legal

ground, including relevance or privilege.

13. Remedies. Any violation of this Protective Order shall constitute a violation of an

order of the Commission. Notwithstanding the foregoing, the parties and Commission Staff

reserve their rights to pursue any legal or equitable remedies that may be available in the event of

an actual or anticipated disclosure of Protected Materials.

14. Withdrawal of Designation. A Disclosing Party may agree at any time to remove

the “Protected Materials” designation from any materials of such Party if, in its opinion,

confidentiality protection is no longer required. In such a case, the Disclosing Party will notify

all Requesting Parties that the Disclosing Party has agreed to withdraw its designation of

Protected Materials for specific documents or material.

15. Modification. This Protective Order shall remain in effect unless and until it is

modified or terminated by the Commission or the Assigned ALJ. The identity of the parties

submitting Protected Materials may differ from time to time. In light of this situation,

modifications to this Protective Order may become necessary. The Parties shall work

cooperatively to develop such modifications and, to the extent the Parties are able to agree to

modifications, shall file a motion with the Assigned ALJ or the Commission seeking approval of

the modifications. To the extent Parties are unable to agree on modifications after a good faith

effort, each party governed by this Protective Order has the right to seek modifications in it as

appropriate from the Assigned ALJ or the Commission.

16. Interpretation. Headings are for convenience only and may not be used to restrict

the scope of this Protective Order.

13

Entered: __________________________________

Administrative Law Judge

Date: __________________________________

APPENDIX A TO MODEL PROTECTIVE ORDER


[Insert Proceeding Caption] ) ) Docket No. XX-XX-XXX

NONDISCLOSURE CERTIFICATE

I hereby certify my understanding that access to Protected Materials is provided to me

pursuant to the terms and restrictions of the Protective Order in this proceeding, that I have been

given a copy of and have read the Protective Order, and that I agree to be bound by it. I

understand that the contents of the Protected Materials, any notes or other memoranda, or any

other form of information that copies or discloses Protected Materials shall not be disclosed to

anyone other than in accordance with that Protective Order. I acknowledge that a violation of

this certificate constitutes a violation of an order of California Public Utilities Commission. Signed: _______________________ Name ________________________ Title: _________________________ Organization: __________________ Dated: ________________________

1


Updated Electricity and Natural Gas Procurement Limits and Ratable Rate Limits in Southern California Edison Company's 2014 Assembly Bill (AB) 57 Bundled Procurement Plan

) ) Advice 3516-E

NONDISLOSURE AGREEMENT REGARDING MARKET PROTECTED MATERIALS

1. Scope. This Nondisclosure Agreement Regarding Protected Materials

(“Nondisclosure Agreement”) shall govern access to and the use of Protected Materials, produced

by, or on behalf of, a Disclosing Party (as defined in Paragraph 2 below) in this proceeding.

2. Definitions

In addition to the terms defined and capitalized in other sections of this Nondisclosure

Agreement, the following terms are defined for the purposes of this Nondisclosure Agreement:

A. For purposes of this Nondisclosure Agreement, the term “Protected

Materials” means: (i) trade secret, market sensitive, or other confidential and/or proprietary

information as determined by the Disclosing Party in accordance with the provisions of Decision

(“D.”) 06-06-066 and subsequent decisions, including D.14-10-033 which governs the treatment

of market sensitive greenhouse gas data and information, General Order 66-C, Public Utilities

Code section 454.5(g), or any other right of confidentiality provided by law; or (ii) any other

materials that are made subject to this Nondisclosure Agreement by the Assigned Administrative

Law Judge (“Assigned ALJ”), Law and Motion Administrative Law Judge (“Law and Motion

ALJ”), Assigned Commissioner, the California Public Utilities Commission (“Commission”), or

any court or other body having appropriate authority. Protected Materials also include

memoranda, handwritten notes, spreadsheets, computer files and reports, and any other form of

2

information (including information in electronic form) that copies, discloses, incorporates,

includes or compiles other Protected Materials or from which such materials may be derived

(except that any derivative materials must be separately shown to be confidential). Protected

Materials do not include: (i) any information or document contained in the public files of the

Commission or any other state or federal agency, or in any state or federal court; or (ii) any

information that is public knowledge, or which becomes public knowledge, other than through

disclosure in violation of this Nondisclosure Agreement or any other nondisclosure agreement or

protective order.

B. The term “redacted” refers to situations in which Protected Materials in a

document, whether the document is in paper or electronic form, have been covered, blocked out,

or removed.

C. The “Disclosing Party” is _________________ [Insert entity name].

D. The “Requesting Party” is _________________ [Insert entity name].

E. The term “Party” refers to the Requesting Party or the Disclosing Party and

the term “Parties” refers to both the Requesting Party and the Disclosing Party.

F. The term “Market Participant” refers to a Requesting Party that is:

1) A person or entity, or an employee of an entity, that engages in the wholesale purchase, sale or marketing of energy or capacity, or the bidding on or purchasing of power plants, or bidding on utility procurement solicitations, or consulting on such matters, subject to the limitations in 3) below.

2) A trade association or similar organization, or an employee of such organization,

a) whose primary focus in proceedings at the Commission is to advocate for persons/entities that purchase, sell or market energy or capacity at wholesale; bid on, own, or purchase power plants; or bid on utility procurement solicitations; or

3

b) a majority of whose members purchase, sell or market energy or capacity at wholesale; bid on, own, or purchase power plants; or bid on utility procurement solicitations; or

c) formed for the purpose of obtaining Protected Materials; or

d) controlled or primarily funded by a person or entity whose primary purpose is to purchase, sell or market energy or capacity at wholesale; bid on, own, or purchase power plants; or bid on utility procurement solicitations.

3) A person or entity that meets the criteria of 1) above is not a Market Participant for purpose of access to Protected Materials unless the person/entity seeking access to Protected Materials has the potential to materially affect the price paid or received for electricity if in possession of such information. An entity will be considered not to have such potential if:

a) the person or entity’s participation in the California electricity market is de minimis in nature. In the resource adequacy proceeding (R.05-12-013) it was determined in D.06-06-064 §3.3.2 that the resource adequacy requirement should be rounded to the nearest megawatt (MW), and load serving entities (LSEs) with local resource adequacy requirements less than 1 MW are not required to make a showing. Therefore, a de minimis amount of energy would be less than 1 MW of capacity per year, and/or an equivalent of energy; and/or

b) the person or entity has no ability to dictate the price of electricity it purchases or sells because such price is set by a process over which the person or entity has no control, i.e., where the prices for power put to the grid are completely overseen by the Commission, such as subject to a standard offer contract or tariff price. A person or entity that currently has no ability to dictate the price of electricity it purchases or sells under this section, but that will have such ability within one year because its contract is expiring or other circumstances are changing, does not meet this exception; and/or

c) the person or entity is a cogenerator that consumes all the power it generates in its own industrial and commercial processes, if it can establish a legitimate need for Protected Materials.

4

G. The term “Non-Market Participant” refers to a Requesting Party that does

not meet the definition of Market Participant. The California Independent System Operator is

deemed a Non-Market Participant for purposes of this Nondisclosure Agreement.

H. “Reviewing Representatives” are limited to person(s) designated in

accordance with Paragraph 5 who meet the following criteria:

1) Reviewing Representatives may not currently be engaged in: (a) a transaction for the purchase, sale, or marketing at wholesale of electrical energy or capacity or natural gas (or the direct supervision of any employee(s) engagement in such a transaction); (b) the bidding on or purchasing of power plants (or the direct supervision of any employee(s) engagement in such a transaction); or (c) knowingly providing electricity or gas marketing consulting or advisory services to others in connection with a transaction for the purchase, sale, or marketing at wholesale of electrical energy or capacity or natural gas or the bidding on or purchasing of power plants (or the direct supervision of any employee(s) engagement in such a transaction or consulting).

2) Reviewing Representatives may not be an employee of a Market Participant. If the Market Participant or Non-Market Participant chooses to retain outside attorneys, consultants, or experts in the same law firm or consulting firm to provide advice in connection with marketing activities, then the attorney, consultant, or expert serving as a Reviewing Representative must be separated by an ethics wall consistent with the ethics wall requirements in D.11-07-028, as that decision may be subsequently modified or changed by the Commission, from those in the firm who are involved in wholesale commercial dealings.

3) Reviewing Representatives shall use Protected Materials only for the purpose of participating in the Commission proceeding in which they received the information.

4) Reviewing Representatives are permitted to participate in regulatory proceedings on behalf of Market Participants and Non-Market Participants.

5) All Reviewing Representatives are required to execute the Nondisclosure Certificate attached to this Nondisclosure Agreement and are bound by the terms of this Nondisclosure Agreement.

5

I. The term “Authorized Reviewers” refers to: (1) a Requesting Party that is a

Non-Market Participant that has executed a Nondisclosure Agreement; or (2) a Reviewing

Representative of a Requesting Party if the Requesting Party has executed a Nondisclosure

Agreement and the Reviewing Representative has executed a Nondisclosure Certificate. A

Requesting Party that is a Market Participant is not an Authorized Reviewer but it may designate

a Reviewing Representative in accordance with Paragraph 5.

J. The term “Nondisclosure Certificate” refers to the Nondisclosure

Certificate attached as Appendix A.

3. Designation, Filing and Service of Protected Materials.

When filing or providing in discovery any documents or items containing Protected

Materials, a Party shall physically mark such documents (or in the case of non-documentary

materials such as computer diskettes, on each item) as “ PROTECTED MATERIALS SUBJECT

TO NONDISCLOSURE AGREEMENT,” or with words of similar import as long as one or more

of the terms, “Protected Materials” or “Nondisclosure Agreement” is included in the designation

to indicate that the materials in question are Protected Materials. All materials so designated shall

be treated as Protected Materials unless and until: (a) the designation is withdrawn pursuant to

Paragraph 13 hereof; (b) an Assigned ALJ, Law and Motion ALJ, Assigned Commissioner, or the

Commission makes a determination that: (i) the document does not contain Protected Materials or

does not warrant confidential treatment or (ii) denies a motion to file the document under seal; or

(c) the document or information becomes public knowledge, other than through disclosure in

violation of this Nondisclosure Agreement or any other nondisclosure agreement or protective

order. However, the Disclosing Party has the burden of showing that the documents are Protected

Materials, and merely marking a document “Protected Materials” is insufficient to meet that

burden.

6

All documents containing Protected Materials that are tendered for filing with the

Commission shall be placed in sealed envelopes or otherwise appropriately protected and shall be

tendered with a motion to file the document under seal pursuant to Rule 11.4 of the Commission’s

Rules of Practice and Procedure. All documents containing Protected Materials that are served on

parties in a proceeding shall be placed in sealed envelopes or otherwise appropriately protected

and shall be endorsed to the effect that they are served under seal pursuant to this Nondisclosure

Agreement. Such documents shall only be served upon Authorized Reviewers and persons

employed by or working on behalf of the Commission. Service upon Authorized Reviewers and

persons employed by or working on behalf of the Commission may either be: (a) by electronic

mail in accordance with the procedures adopted in this proceeding; (b) by facsimile; or (c) by

overnight mail or messenger service. Whenever service of a document containing Protected

Materials is made by overnight mail or messenger service, the Assigned ALJ shall be served with

such document by the same means and at the same time.

4. Redaction of Documents. Whenever a Party files, serves, or provides in discovery

a document that includes Protected Materials (including but not limited to briefs, testimony,

exhibits, and responses to data requests), such Party shall also prepare a redacted version of such

document. The redacted version shall enable persons familiar with this proceeding to determine

with reasonable certainty the nature of the data that has been redacted and where the redactions

occurred. The redacted version of a document to be filed shall be served on all persons on the

service list, and the redacted version of a discovery document shall be served on all persons

entitled thereto.

5. Designation of Reviewing Representatives. The Requesting Party shall provide

written notice identifying its proposed Reviewing Representative(s) to the Disclosing Party before

the Disclosing Party provides any Protected Materials to the Requesting Party’s Authorized

7

Reviewers. The written notice shall include the information identified in this paragraph. If the

Requesting Party decides to designate any additional Reviewing Representative(s) after the

Requesting Party receives Protected Materials, the Requesting Party shall identify the additional

proposed Reviewing Representative(s) to the Disclosing Party before the Requesting Party

provides Protected Materials to the additional Reviewing Representative(s). Within five (5)

business days after receiving written notice of the identity of any Reviewing Representative, the

Disclosing Party may provide the Requesting Party with a written objection to a specific

Reviewing Representative stating the grounds for the objection. Any dispute concerning whether

an identified person or entity is an appropriate Reviewing Representative shall be resolved

through the dispute resolution procedures in Paragraph 10 of this Nondisclosure Agreement. If a

Disclosing Party objects to a specific Reviewing Representative within five (5) business days

after the Reviewing Representative is identified, the Requesting Party shall not provide any

Protected Materials to the disputed Reviewing Representative until the Parties are able to resolve

the dispute consistent with the dispute resolution procedures in Paragraph 10. Failure by the

Disclosing Party to object within five (5) business days does not waive the Disclosing Party’s

right to later object to the Reviewing Representative, even if Protected Materials has already been

disclosed. However, further disclosure of Protected Materials would be stayed until the parties

are able to resolve the dispute consistent with the dispute resolution procedures in Paragraph 10.

Reviewing Representative(s) have a duty to disclose to the Disclosing Party any potential

conflict that puts the Reviewing Representative in violation of D.06-12-030, as modified by

subsequent decisions of the Commission. A resume or curriculum vitae is reasonable disclosure

of such potential conflicts, and should be the default evidence provided in most cases.

6. Nondisclosure Certificates. A Reviewing Representative shall not inspect,

participate in discussions regarding, or otherwise be granted access to, Protected Materials unless

8

and until he or she has first completed and executed a Nondisclosure Certificate, attached hereto

as Appendix A, and delivered the signed Nondisclosure Certificate to the Disclosing Party. The

Disclosing Party shall retain the executed Nondisclosure Certificates pertaining to the Protected

Materials it has disclosed and shall promptly provide copies of the Nondisclosure Certificates to

Commission Staff upon request.

7. Access to Protected Materials and Use of Protected Materials. Subject to the terms

of this Nondisclosure Agreement, Authorized Reviewers shall be entitled to access any Protected

Materials and may make copies of Protected Materials, but such copies become Protected

Materials. Authorized Reviewers may make notes of Protected Materials, which shall be treated

as Protected Materials if such notes disclose any Protected Materials. Protected Materials

obtained by a Party in this proceeding may also be requested by that Party in a subsequent

Commission proceeding, subject to the terms of any nondisclosure agreement or protective order

governing that subsequent proceeding, without constituting a violation of this Nondisclosure

Agreement.

8. Maintaining Confidentiality of Protected Materials. Each Authorized Reviewer

shall treat Protected Materials as confidential in accordance with this Nondisclosure Agreement

and the Nondisclosure Certificate. Protected Materials shall not be used except as necessary for

participation in this proceeding, and shall not be disclosed in any manner to any person except: (i)

Authorized Reviewers; (ii) an Authorized Reviewer’s employees and administrative personnel,

such as clerks, secretaries, and word processors, to the extent necessary to assist the Authorized

Reviewer, provided that they shall first ensure that such personnel are familiar with the terms of

this Nondisclosure Agreement and have signed a Nondisclosure Certificate; and (iii) persons

employed by or working on behalf of the Commission. Authorized Reviewers shall adopt

suitable measures to maintain the confidentiality of Protected Materials they have obtained

9

pursuant to this Nondisclosure Agreement, and shall treat such Protected Materials in the same

manner as they treat their own most highly confidential information.

Reviewing Representatives shall be liable for any unauthorized disclosure or use by

themselves and/or their employees, paralegal, or administrative staff. In the event any Requesting

Party and/or its Reviewing Representative is requested or required by applicable laws or

regulations, or in the course of administrative or judicial proceedings (in response to oral

questions, interrogatories, requests for information or documents, subpoena, civil investigative

demand or similar process) to disclose any of Protected Materials, the Requesting Party shall

immediately inform the Disclosing Party of the request, and the Disclosing Party may, at its sole

discretion and cost, direct any challenge or defense against the disclosure requirement, and the

Requesting Party and its Reviewing Representative shall cooperate in good faith with such Party

either to oppose the disclosure of the Protected Materials consistent with applicable law, or to

obtain confidential treatment of the Protected Materials by the person or entity who wishes to

receive them prior to any such disclosure. If there are multiple requests for substantially similar

Protected Materials in the same case or proceeding where a Requesting Party and/or Reviewing

Representative has been ordered to produce certain specific Protected Materials, the Requesting

Party and/or Reviewing Representative may, upon request for substantially similar materials by

another person or entity, respond in a manner consistent with that order to those substantially

similar requests.

9. Return or Destruction of Protected Materials. Protected Materials shall remain

available to an Authorized Reviewer until an order terminating this proceeding becomes no longer

subject to judicial review. If requested to do so in writing after that date, the Authorized

Reviewer shall, within fifteen days after such request, return the Protected Materials to the

Disclosing Party that produced such Protected Materials, or shall destroy the materials, except

10

that copies of filings, official transcripts and exhibits in this proceeding that contain Protected

Materials, and notes of Protected Materials may be retained, if such Protected Materials are

maintained in accordance with Paragraph 8. Within such time period each Authorized Reviewer,

if requested to do so, shall also submit to the Disclosing Party an affidavit stating that, to the best

of its knowledge, all Protected Materials have been returned or have been destroyed, or will be

maintained in accordance with Paragraph 8. To the extent Protected Materials are not returned or

destroyed, such Protected Materials shall remain subject to this Nondisclosure Agreement.

In the event that a Reviewing Representative to whom Protected Materials are disclosed

ceases to be engaged to provide services in this proceeding, then access to such materials by that

person shall be terminated and the Reviewing Representative shall immediately return or destroy

all Protected Materials, or provide a declaration stating that all Protected Materials and all notes

of Protected Materials will be maintained in accordance with Paragraph 8. Even if a Reviewing

Representative is no longer engaged in this proceeding, every such person shall continue to be

bound by the provisions of this Nondisclosure Agreement and the Nondisclosure Certificate.

10. Dispute Resolution. All disputes that arise under this Nondisclosure Agreement,

including but not limited to alleged violations of this Nondisclosure Agreement and disputes

concerning whether materials were properly designated as Protected Materials, shall first be

addressed by the Parties through a meet and confer process in an attempt to resolve such disputes.

If the meet and confer process is unsuccessful, either Party may present the dispute for resolution

to the Assigned ALJ or the Law and Motion ALJ.

11. Other Objections to Use or Disclosure. Nothing in this Nondisclosure Agreement

shall be construed as limiting the right of a Party to object to the use or disclosure of Protected

Materials on any legal ground, including relevance or privilege.

11

12. Remedies. Any violation of this Nondisclosure Agreement shall constitute a

violation of an order of the Commission. Notwithstanding the foregoing, the Parties reserve their

rights to pursue any legal or equitable remedies that may be available in the event of an actual or

anticipated disclosure of Protected Materials.

13. Withdrawal of Designation. A Disclosing Party may agree at any time to remove

the “Protected Materials” designation from any materials of such Party if, in its opinion,

confidentiality protection is no longer required. In such a case, the Disclosing Party will notify all

Requesting Parties that the Disclosing Party has agreed to withdraw its designation of Protected

Materials for specific documents or material.

14. Modification. This Nondisclosure Agreement shall remain in effect unless and

until it is modified or terminated by written agreement of the parties or by order of the

Commission or Assigned ALJ. The Parties agree that modifications to this Nondisclosure

Agreement may become necessary, and they further agree to work cooperatively to devise and

implement such modifications in as timely a manner as possible. Each Party governed by this

Nondisclosure Agreement has the right to seek modifications in it as appropriate from the

Assigned ALJ or the Commission.

15. Interpretation. Headings are for convenience only and may not be used to restrict

the scope of this Nondisclosure Agreement. REQUESTING PARTY

By: _____________________________

Title: __________________________ _

Representing: _____________________

Date: __________________________ _

DISCLOSING PARTY

By: _____________________________

Title: __________________________ _

Representing: _____________________

Date: __________________________ _

13

APPENDIX A TO MODEL NONDISCLOSURE AGREEMENT


[Insert Proceeding Caption] ) ) Docket No. XX-XX-XXX

NONDISCLOSURE CERTIFICATE

I hereby certify my understanding that access to Protected Materials is provided to me pursuant to the terms and restrictions of the Nondisclosure Agreement between [REQUESTING PARTY] and [DISCLOSING PARTY] in this proceeding, that I have been given a copy of and have read the Nondisclosure Agreement, and that I agree to be bound by it. I understand that the contents of the Protected Materials, any notes or other memoranda, or any other form of information that copies or discloses Protected Materials shall not be disclosed to anyone other than in accordance with that Nondisclosure Agreement. I acknowledge that a violation of this certificate constitutes a violation of an order of California Public Utilities Commission. Signed: _______________________ Name ________________________ Title: _________________________ Organization: __________________ Dated: ________________________

Attachment C

Redlined Confidential Version of Appendix E to SCE’s Bundled Procurement Plan

Attachment D

Clean Confidential Version of Appendix E to SCE’s Bundled Procurement Plan

Attachment E

Redlined Public Version of Appendix E to SCE’s Bundled Procurement Plan

PROTECTED MATERIALS PURSUANT TO CALIFORNIA PUBLIC UTILITIES COMMISSION DECISIONS AND APPLICABLE LAW. PUBLIC DISCLOSURE RESTRICTED.

Southern California Edison

Rosemead, California (U 338-E)

SOUTHERN CALIFORNIA EDISON COMPANY’S

CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN

APPENDICES

(To be inserted by utility) Issued by (To be inserted by Cal. PUC)

Advice 3349-E Russell G. Worden Date Filed

Decision 15-10-031 Director Effective

1D0 Resolution

Appendix E

Procurement Limits and Ratable Rates Tables






APPENDICES

Sheet E-1




1D0 Resolution


Table E-1 Electrical Capacity Position Limit and 1 x Ratable Rate (RR) in Megawatts (MW)

(Confidential)

Delivery Year Position Limit (MW) 1x RR in 2015 1x RR in 2016 1x RR in 2017 1x RR in 2018 � 2019 � 2020 � 2021 � 2022 � 2023 � 2024

2015 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a


2017 n/a n/a n/a n/a n/a n/a n/a n/a n/a

2018 n/a n/a n/a n/a n/a n/a n/a n/a

2019 n/a n/a n/a n/a n/a n/a n/a

2020 n/a n/a n/a n/a n/a n/a

2021 n/a n/a n/a n/a n/a

2022 n/a n/a n/a n/a

2023 n/a n/a n/a

2024 n/a n/a

Delivery YearPosition Limit

(MW) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

2017 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a








2025 n/a n/a n/a

2026 n/a n/a






APPENDICES

Sheet E-2




1D0 Resolution

Table E-2 Electrical Capacity Implied Market Heat Rate Market Condition Measure

(Confidential)

Measure Value

2 Standard deviation high

Measure Value







APPENDICES

Sheet E-3




1D0 Resolution

Table E-3 On-Peak Electrical Energy Purchase Position Limits (MWh)

(Confidential)

Month 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-4




1D0 Resolution

Table E-3a Off-Peak Electrical Energy Purchase Position Limits (MWh)

(Confidential)

Month 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-5




1D0 Resolution

Table E-4 On-Peak Electrical Energy Sale Position Limits (MWh)

(Confidential)

Month 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

F

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-6




1D0 Resolution

Table E-4a Off-Peak Electrical Energy Sale Position Limits (MWh)

(Confidential)

Month 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-7




1D0 Resolution

Table E-5 Electrical Energy and Natural Gas Ratable Rate (RR) Transaction Authority

“Year 1” is a rolling 12-month period comprised of the first traded delivery month in the

futures / forwards market for that commodity through the following 11 delivery months. This 12-

month period, also defined as the Prompt Year, is labeled as “Year 1” in the table. Each

subsequent year (e.g., Year 2) is defined in a similar manner, except that the delivery month dates

shift one year forward. For example, in January 2015, the prompt month will be February 2015,

and the Year 1 contracts will be the February 2015 through January 2016 delivery months, Year 2

contracts will be the February 2016 through January 2017 delivery months, and so forth. When

January 2015 elapses and February 2015 commences, Year 1 will consist of the March 2015

Name

From

Delivery

Month

To Delivery

MonthRR 2x RR

Year 1 Prompt Prompt +11 100.00% 100.00%

Year 2 Prompt +12 Prompt +23 50.00% 100.00%




Year 6 Prompt +60 Prompt +71 16.70% n/a





RR Delivery Month Periods

RR (as a % of the sum of

each 12‐month period's

effective monthly position

limit)






APPENDICES

Sheet E-8




1D0 Resolution

through February 2015 delivery month contracts, Year 2 will consist of the March 2016 through

February 2017 delivery month contracts, and so on.

Table E-6 Electrical Energy SP-15 On-Peak Power Price Market Condition Measure ($/MWh)

(Confidential)

Measure Value


Measure Value







APPENDICES

Sheet E-9




1D0 Resolution

Table E-7 Natural Gas Position Limits (MMBtu) (Confidential)

Table E-8 Topock Natural Gas Price Market Condition Measure ($/MMBTu) (Confidential)

Month 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Measure Value


Measure Value







APPENDICES

Sheet E-10




1D0 Resolution

Table E-9 Natural Gas Storage Limits (Confidential)

SCE’s storage injection, inventory, and withdrawal limits are based on SCE’s monthly gas

burn forecast, assuming economic dispatch of SCE’s portfolio under an implied market heat rate

that is two standard deviations higher than the base case. SCE’s maximum firm storage

withdrawal limit for the year is calculated as the largest difference between the maximum daily

natural gas usage forecast and the average-day gas usage forecast for each month throughout the

gas storage year. Similarly, SCE’s maximum storage injection limit is calculated identifying the

largest difference between the minimum daily natural gas usage forecast and the forecast of

average-day gas usage for each month throughout the gas storage year. SCE’s annual storage

inventory capacity limit is calculated to secure enough inventory for days of withdrawal as

calculated above (i.e., times the Storage Withdrawal Limit). Prior to transacting for storage

under a contract having a term of one calendar quarter or longer, SCE will consult with its

Procurement Review Group (PRG) relative to its current estimate of its storage needs.

Storage Components 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Withdrawal Capacity (MmBtu/day)

Injection Capacity (MmBtu/day)

Inventory (MMBtu)


Withdrawal Capacity (MMBtu/day)

Injection Capacity (MMBtu/day)

Inventory (MMBtu)





CONFORMED 2014 AB 57 BUNDLED PROCUREMENT PLAN APPENDICES

Sheet E-11




1D0 Resolution

Table E-10 GHG Transaction Rate Authority

Limits on Direct Compliance Obligation Purchases

Transaction Year 2015 2016 2017 2018 2019 2020

2015 100.0% 60.0% 40.0% 20.0% 0.0% 0.0%

2016 100.0% 60.0% 40.0% 20.0% 0.0%

2017 100.0% 60.0% 40.0% 20.0%

2018 100.0% 60.0% 40.0%

2019 100.0% 60.0%

2020 100.0%

Delivery Year


2017 100.00% 60.00% 40.00% 20.00% 0.00% 0.00%

2018 n/a 100.00% 60.00% 40.00% 20.00% 0.00%

2019 n/a n/a 100.00% 60.00% 40.00% 20.00%

2020 n/a n/a n/a 100.00% 60.00% 40.00%

2021 n/a n/a n/a n/a 100.00% 60.00%

2022 n/a n/a n/a n/a n/a 100.00%

Delivery Year






APPENDICES

Sheet E-12




1D0 Resolution


Limits on Financial Exposure Purchases


2015 20.00% 10.00% 5.00% 2.50% 0.00% 0.00%

2016 20.00% 10.00% 5.00% 2.50% 0.00%

2017 20.00% 10.00% 5.00% 2.50%

2018 20.00% 10.00% 5.00%

2019 20.00% 10.00%

2020 20.00%

Delivery Year


2017 20.00% 10.00% 5.00% 2.50% 0.00% 0.00%

2018 n/a 20.00% 10.00% 5.00% 2.50% 0.00%

2019 n/a n/a 20.00% 10.00% 5.00% 2.50%

2020 n/a n/a n/a 20.00% 10.00% 5.00%

2021 n/a n/a n/a n/a 20.00% 10.00%

2022 n/a n/a n/a n/a n/a 20.00%

Delivery Year






Sheet E-13




1D0 Resolution

Table E-12 GHG Direct Compliance Obligation and Financial Exposure Forecasts (MTCO2e) 11

(Confidential)

11 MTCO2e = Metric Tons of CO2 equivalent.

Exposure Type 2015 2016 2017 2018 2019 2020

Physical

Financial

Delivery Year

Exposure Type 2017 2018 2019 2020 2021 2022

Physical

Financial

Delivery Year






APPENDICES

Sheet E-14




1D0 Resolution

Table E-13 Transaction Rate Limits for GHG Direct Compliance Obligation Purchases (MTCO2e)

(Confidential)*

*Any GHG compliance obligation net balance remaining at the end of 2014 will be debited/credited against 2014 Transaction Rate Limits.

* Any GHG compliance obligation net balance remaining at the end of 2016 will be debited/credited against 2016 Transaction Rate Limits.


2015

2016 n/a

2017 n/a n/a

2018 n/a n/a n/a



Delivery Year


2017

2018 n/a

2019 n/a n/a

2020 n/a n/a n/a



Delivery Year






APPENDICES

Sheet E-15




1D0 Resolution

Table E-14 Transaction Rate Limits for GHG Financial Exposure Purchases (MTCO2e)

(Confidential)*

*This transaction rate limit already accounts for net purchases of GHG compliance instruments to date for financial exposure hedging purposes, as of 9/10/2014. Therefore, SCE would be allowed to purchase an additional tons in the remainder of 2014 and in 2015 for Delivery Year 2015.

* This transaction rate limit already accounts for net purchases of GHG compliance instruments to date for financial exposure hedging purposes, as of 10/05/2016. Therefore, SCE would be allowed to purchase an additional tons in the remainder of 2016 and in 2017 for Delivery Year 2017.


2015

2016 n/a

2017 n/a n/a

2018 n/a n/a n/a



Delivery Year


2017

2018 n/a

2019 n/a n/a

2020 n/a n/a n/a

2021 n/a n/a n/a


Delivery Year

Attachment F

Clean Public Version of Appendix E to SCE’s Bundled Procurement Plan






APPENDICES




1D0 Resolution

Appendix E







APPENDICES

Sheet E-1




1D0 Resolution


Table E-1 Electrical Capacity Position Limit and 1 x Ratable Rate (RR) in Megawatts (MW)

(Confidential)

Table E-2 Electrical Capacity Implied Market Heat Rate Market Condition Measure

(Confidential)

Delivery YearPosition Limit

(MW) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

2017 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a








2025 n/a n/a n/a

2026 n/a n/a

Measure Value







APPENDICES

Sheet E-2




1D0 Resolution

Table E-3 On-Peak Electrical Energy Purchase Position Limits (MWh)

(Confidential)

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-3




1D0 Resolution

Table E-3a Off-Peak Electrical Energy Purchase Position Limits (MWh)

(Confidential)

Table E-4 On-Peak Electrical Energy Sale Position Limits (MWh)

(Confidential)

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

F

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-4




1D0 Resolution

Table E-4a Off-Peak Electrical Energy Sale Position Limits (MWh)

(Confidential)

Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec






APPENDICES

Sheet E-5




1D0 Resolution

Table E-5 Electrical Energy and Natural Gas Ratable Rate (RR) Transaction Authority

“Year 1” is a rolling 12-month period comprised of the first traded delivery month in the

futures / forwards market for that commodity through the following 11 delivery months. This 12-

month period, also defined as the Prompt Year, is labeled as “Year 1” in the table. Each

subsequent year (e.g., Year 2) is defined in a similar manner, except that the delivery month dates

shift one year forward. For example, in January 2015, the prompt month will be February 2015,

and the Year 1 contracts will be the February 2015 through January 2016 delivery months, Year 2

contracts will be the February 2016 through January 2017 delivery months, and so forth. When

January 2015 elapses and February 2015 commences, Year 1 will consist of the March 2015

Name

From

Delivery

Month

To Delivery

MonthRR 2x RR

Year 1 Prompt Prompt +11 100.00% 100.00%










RR Delivery Month Periods

RR (as a % of the sum of

each 12‐month period's

effective monthly position

limit)






APPENDICES

Sheet E-6




1D0 Resolution

through February 2015 delivery month contracts, Year 2 will consist of the March 2016 through

February 2017 delivery month contracts, and so on.

Table E-6 Electrical Energy SP-15 On-Peak Power Price Market Condition Measure ($/MWh)

(Confidential)

Table E-7 Natural Gas Position Limits (MMBtu) (Confidential)

Table E-8 Topock Natural Gas Price Market Condition Measure ($/MMBTu) (Confidential)

Measure Value


Month 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Measure Value







APPENDICES

Sheet E-7




1D0 Resolution

Table E-9 Natural Gas Storage Limits (Confidential)

SCE’s storage injection, inventory, and withdrawal limits are based on SCE’s monthly gas

burn forecast, assuming economic dispatch of SCE’s portfolio under an implied market heat rate

that is two standard deviations higher than the base case. SCE’s maximum firm storage

withdrawal limit for the year is calculated as the largest difference between the maximum daily

natural gas usage forecast and the average-day gas usage forecast for each month throughout the

gas storage year. Similarly, SCE’s maximum storage injection limit is calculated identifying the

largest difference between the minimum daily natural gas usage forecast and the forecast of

average-day gas usage for each month throughout the gas storage year. SCE’s annual storage

inventory capacity limit is calculated to secure enough inventory for days of withdrawal as

calculated above (i.e., times the Storage Withdrawal Limit). Prior to transacting for storage

under a contract having a term of one calendar quarter or longer, SCE will consult with its

Procurement Review Group (PRG) relative to its current estimate of its storage needs.


Withdrawal Capacity (MMBtu/day)

Injection Capacity (MMBtu/day)

Inventory (MMBtu)






Sheet E-8




1D0 Resolution


Limits on Direct Compliance Obligation Purchases


Limits on Financial Exposure Purchases


2017 100.00% 60.00% 40.00% 20.00% 0.00% 0.00%

2018 n/a 100.00% 60.00% 40.00% 20.00% 0.00%

2019 n/a n/a 100.00% 60.00% 40.00% 20.00%

2020 n/a n/a n/a 100.00% 60.00% 40.00%

2021 n/a n/a n/a n/a 100.00% 60.00%

2022 n/a n/a n/a n/a n/a 100.00%

Delivery Year


2017 20.00% 10.00% 5.00% 2.50% 0.00% 0.00%

2018 n/a 20.00% 10.00% 5.00% 2.50% 0.00%

2019 n/a n/a 20.00% 10.00% 5.00% 2.50%

2020 n/a n/a n/a 20.00% 10.00% 5.00%

2021 n/a n/a n/a n/a 20.00% 10.00%

2022 n/a n/a n/a n/a n/a 20.00%

Delivery Year






Sheet E-9




1D0 Resolution

Table E-12 GHG Direct Compliance Obligation and Financial Exposure Forecasts (MTCO2e) 11

(Confidential)

Table E-13 Transaction Rate Limits for GHG Direct Compliance Obligation Purchases (MTCO2e)

(Confidential)*

* Any GHG compliance obligation net balance remaining at the end of 2016 will be debited/credited against 2016 Transaction Rate Limits.

11 MTCO2e = Metric Tons of CO2 equivalent.

Exposure Type 2017 2018 2019 2020 2021 2022

Physical

Financial

Delivery Year


2017

2018 n/a

2019 n/a n/a

2020 n/a n/a n/a



Delivery Year






APPENDICES

Sheet E-10




1D0 Resolution

Table E-14 Transaction Rate Limits for GHG Financial Exposure Purchases (MTCO2e)

(Confidential)*

* This transaction rate limit already accounts for net purchases of GHG compliance instruments to date for financial exposure hedging purposes, as of 10/05/2016. Therefore, SCE would be allowed to purchase an additional tons in the remainder of 2016 and in 2017 for Delivery Year 2017.


2017

2018 n/a

2019 n/a n/a

2020 n/a n/a n/a

2021 n/a n/a n/a


Delivery Year

ADVICE 3516-E - Southern California Edison · ADVICE 3516-E (U 338-E) - 5 - November 21, 2016...

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Transcript of ADVICE 3516-E - Southern California Edison · ADVICE 3516-E (U 338-E) - 5 - November 21, 2016...