CPUC Public Agenda 3267Thursday, January 13, 2011, 10:00 a.m.

505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey

Timothy Alan SimonNancy E. Ryan

www.cpuc.ca.gov

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment: Item: 17, 26, 29 & 42 All items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Once called, each speaker has up to 2 minutes to address the Commission.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment: Item: 17, 26, 29 & 42All items on the Closed Session Agenda

Agenda Changes• Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting.

• Items on Today’s Consent Agenda are: 1, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19, 20, 21, 22, 23, 24, 27, 28, 30, 32, 33, 34, 35, 36, 37, 38, 39 & 40

• 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: 50 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: 26 has been moved to the Regular Agenda.

• Items: 5, 18 & 45 have been withdrawn.

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

Held to 1/27/10: 2, 3, 4, 6, 25, 29, 31, 42, 42a, 43, 47 & 49

Regular Agenda

• Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote.

• For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed.

• The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

Regular Agenda – Legal Division MattersItem #41 [10056] Emergency Authorization to Ensure Safety of Certain Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company, & Southwest Gas Pipelines

Res L-410

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Ratifies the orders of the Executive Director in his letters to Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company & Southwest Gas directing a reduction of pressure on certain pipelines and aggressively search pipeline records to identify segments in high consequence areas to be tested.

Regular Agenda – Energy OrdersItem #44 [9721] Use of Tradable Renewable Energy Credits to Comply With the California Renewables Portfolio Standard

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:• Denies the April 12, 2010 Joint Petition of Southern California Edison Company, Pacific Gas and Electric Company,

and San Diego Gas & Electric Company for Modification of Decision (D) 10-03-021, filed April 12, 2010, with the exception of one technical correction.

• Denies the Petition of the Independent Energy Producers Association for Modification of D10-03-021, filed April 15, 2010.

• Modifies D10-03-021 to change the expiration dates of the temporary limit on the use of tradable renewable energy credits (TRECs) for compliance with the renewables portfolio standard (RPS) and the temporary cap on the price utilities may pay for TRECs from December 31, 2011, to December 31, 2013.

• Defers the application of any limits on TRECs usage to electric service providers to the proposed decision on implementation of Senate Bill 695, mailed September 10, 2010, in Rulemaking 08-08-009.

• Lifts the stay on D10-03-021 imposed by D10-05-018.• Ends the moratorium on Commission approval of certain RPS contracts imposed by D10-05-018.

ESTIMATED COST:• None.

Regular Agenda – Energy OrdersItem #44a [9884] ALTERNATE TO ITEM 9721

Comr. Grueneich--------------------------------------------------------------------------------------• Denies the April 12, 2010, Southern California Edison Company, Pacific

Gas and Electric Company, and San Diego Gas & Electric Company Joint Petition for Modification of Decision (D) 10-03-021 and the April 15, 2010 Independent Energy Producers Association’s Petition for Modification of D10-03-021.

• Modifies D10-03-021 to extend the expiration date for the tradable renewable energy credit usage cap and price cap to December 31, 2013.

• Lifts the stay on D10-03-021 as well as the moratorium on Commission approval of certain renewables portfolio standard contracts, both imposed by D10-05-018.

Regular Agenda – Energy Orders

Item #46 [9768] Renewables Portfolio Standard Obligations of Electric Service Providers

R08-08-009 Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program.

Ratesetting Comr. Peevey/ALJ Simon------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Electric Service Providers (ESPs) must file Renewables Portfolio Standard (RPS) procurement plans in accordance with instructions of the assigned Commissioner and/or assigned Administrative Law Judge.

• ESPs must adhere to all rules for the use of tradable renewable energy credits (TRECs) imposed by the Commission, other than the temporary limit on prices paid for TRECs.

• The temporary limit on the use of TRECs for RPS compliance set out in Decision 10-03-021 applies to ESPs, with the proviso that TREC contracts signed by ESPs prior to the effective date of this decision may be used for RPS compliance in any year, even if the deliveries under the contract would cause an ESP to exceed the temporary annual TRECs usage limit in that year.

• Further specification of the RPS responsibilities of community choice aggregators will be undertaken

in this proceeding or its successor.

ESTIMATED COST:

• None.

Regular Agenda – Communications OrdersItem #26 [10047] Settlement Agreements and Motion for Summary Adjudication Regarding Liability, and Resolving all Other Issues

I10-02-004 Order Instituting Investigation on the Commission’s own motion into the operations, practices, and conduct of Contractors Strategies Group, Inc., Intella II, Inc., A&M Communications, TNT Financial Services, Limo Services, Inc., Calnev Communications, Inc., 1st Capital Source Funding & Financial Services, Inc., and their owners to determine whether Respondents violated the laws, rules, and regulations of this State regarding the connection of Automatic Dialing-Announcing Devices to Customer-Owned Pay Telephones.

Adjudicatory Comr. Ryan/ALJ Darling-------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Respondents together will pay fines totaling $18,413.78, release all claims to illegally generated Dial

Around Compensation (DAC) of $103,194, and barred from future operation of customer owned pay phones.

• DAC divided between General Fund and Telecom Consumer Fund due to administrative problems with refunds.

ESTIMATED COST:• None.

Regular Agenda – Communications OrdersItem #48 [9978] Order Instituting Rulemaking

R____________ Order Instituting Rulemaking on the Commission's Own Motion to Require Interconnected Voice Over Internet Protocol Service Providers to Contribute to the Support of California’s Public Purpose Programs-------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Adds Interconnected Voice Over Internet Providers to the Category of Providers

Required to Fund California's Universal Service Program.

ESTIMATED COST:• None.

12

Order Instituting Rulemaking

Jack LeutzaDirector, Communications Division

California Public Utilities Commission

January 13, 2011

OIR to Require Interconnected Voice over Internet Protocol (VoIP) Service Providers to Contribute to the Support of

California’s Public Purpose Programs

•This Rulemaking is to add California providers of interconnected Voice over Internet Protocol service to the category of voice service providers who are required to fund California's universal service programs.

•Objective is to ensure that our Universal Service programs are adequately supported in a competitively & technologically neutral manner.

VoIP Universal Service Rulemaking

• Rulemaking would require VoIP Providers to:

Contribute support for LifeLine, High-Cost Funds A & B, CASF, CTF, and DDTP;

Collect & remit public program surcharges on intrastate revenues;

Register with the CPUC for this limited purpose.

VoIP Universal Service Rulemaking

• FCC Declaratory Ruling of Nov. 5, 2010:States not pre-empted from requiring

interconnected VoIP providers to contribute to state universal service programs.

The FCC stated that “the application of state universal contribution requirements to interconnected VoIP providers does not conflict with federal policies, and could, in fact promote them.” [Declaratory Ruling at ¶ 15.]

VoIP Universal Service Rulemaking

• Rulemaking tentatively concludes: The CPUC has authority to act on this matter. PU Code

Sec. 234 definition of “telephone corporation” includes interconnected VoIP.

The CPUC should permit VoIP providers to use the FCC safe harbor percentage (35.1%) or other FCC approved option, for determining VoIP intrastate revenues.

Similar to the FCC, the CPUC should establish a de minimus exemption for a VoIP provider whose annual universal service contribution is expected to be less than $10,000.

Regular Agenda – Communications OrdersItem #48 [9978] Order Instituting Rulemaking

R____________ Order Instituting Rulemaking on the Commission's Own Motion to Require Interconnected Voice Over Internet Protocol Service Providers to Contribute to the Support of California’s Public Purpose Programs-------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Adds Interconnected Voice Over Internet Providers to the Category of Providers

Required to Fund California's Universal Service Program.

ESTIMATED COST:• None.

Commissioners’ Reports

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

January 27, 2011, at 10:00 a.m.