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F I L E D San Francisco, Ca 94102-3298 10-31-08 11:42 Am +STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE F I L E D SAN FRANCISCO, CA 94102-3298 10-31-08 11:42 AM October 31, 2008 Agenda ID #8065 and Alternate Agenda ID #8066 Ratesetting TO PARTIES OF RECORD IN APPLICATION 06-08-010 Enclosed are the proposed decision of Administrative Law Judge (ALJ) Vieth and the alternate proposed decision of Commissioner Grueneich. The proposed decision and the alternate proposed decision will not appear on the Commission’s agenda for at least 30 days after the date it is mailed. Pub. Util. Code § 311(e) requires that the alternate item be accompanied by a digest that clearly explains the substantive revisions to the proposed decision. The digest of the alternate proposed decision is attached. This matter was categorized as ratesetting and is subject to Pub. Util. Code § 1701.3(c). Upon the request of any Commissioner, a Ratesetting Deliberative Meeting (RDM) may be held. If that occurs, the Commission will prepare and publish an agenda for the RDM 10 days beforehand. When an RDM is held, there is a related ex parte communications prohibition period. (See Rule 8.2(c)(4).) When the Commission acts on these agenda items, it may adopt all or part of the decision as written, amend or modify them, or set them aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties. Parties to the proceeding may file comments on the proposed decision and alternate proposed decision as provided in Pub. Util. Code §§ 311(d) and 311(e) and in Article 14 of the Commission’s Rules of Practice and Procedure (Rules), accessible on the Commission’s website at www.cpuc.ca.gov. Pursuant to Rule 14.3(b), the page limit for opening comments is extended to 25 pages. As further provided by Rule 14.3(b): “Comments shall include a subject index listing the recommended changes to the proposed or alternate decision, a table of authorities and an appendix setting forth proposed findings of fact and conclusions of law. The subject index, table of authorities, and appendix do not count against the page limit.” The Commission does not accept redlined versions of proposed decisions or alternate A.06-08-010 DGX/XJV/tcg decisions and any comments that include redlined versions of those documents will be rejected by the Commission’s Docket Office. As provided by Rule 14.3(c): “Comments shall focus on factual, legal or technical errors in the proposed or alternate decision and in citing such errors shall make specific references to the record. Comments which merely reargue positions taken in briefs will be accorded no weight. Comments proposing specific changes to the proposed or alternate decision shall include supporting findings of fact and conclusions of law.” As provided by Rule 14.3(d): “Replies to comments may be filed within five days after the last day for filing comments and shall be limited to identifying misrepresentations of law, fact or condition of the record contained in the comments of other parties. Replies shall not exceed five pages in length.” Comments must be filed either electronically pursuant to Resolution ALJ-188 or with the Commission’s Docket Office. Comments should be served on parties to this proceeding in accordance with Rules 1.9 and 1.10. Electronic and hard copies of comments should be sent to ALJ Vieth at [email protected] and Commissioner Grueneich’s advisor Traci Bone at [email protected]. The current service list for this proceeding is available on the Commission’s website at www.cpuc.ca.gov. /s/ ANGELA K. MINKIN Angela K. Minkin, Chief Administrative Law Judge ANG:tcg Attachment - 2 - ATTACHMENT DIGEST OF SUBSTANTIVE DIFFERENCES BETWEEN PROPOSED DECISION AND ALTERNATIVE MAILED OCTOBER 31, 2008 A.06-08-010: Application of San Diego Gas & Electric Company for a Certificate of Public Convenience and Necessity for the Sunrise Powerlink Transmission Project This digest is prepared pursuant to Pub. Util. Code Sec. 311(e). The substantive differences between the proposed decision and the alternative proposed decision (both mailed October 31, 2008) are as follows: The proposed decision denies San Diego Gas & Electric Company’s (SDG&E) application for a certificate of public convenience and necessity (CPCN) to build the Sunrise Powerlink Transmission Project (Sunrise) for the following reasons: • It is not needed to meet SDG&E’s renewable portfolio standard (RPS) obligation of 20% by 2010; • Assuming a 20% RPS, it is not economic and will potentially generate significant ratepayer costs; • It will have many significant and unmitigable impacts on the environment; and • Other alternatives will meet SDG&E’s eventual reliability needs more economically and with fewer significant and unmitigable impacts on the environment. The alternate proposed decision conditionally approves SDG&E’s CPCN application to build Sunrise along the Final Environmentally Superior Southern Route based on Commission approval of an SDG&E compliance plan to ensure that substantial amounts of Imperial Valley renewable resources will be delivered over Sunrise. The alternate proposed decision deviates from the proposed decision by assuming higher combustion turbine prices and focusing on the economic results - 1 - A.06-08-010 ALJ/XJV/tcg DRAFT assuming renewable procurement at 33% RPS levels. Under these assumptions, the alternate proposed decision finds: • Sunrise will generate over $100 million per year in ratepayer benefits, significantly more than the other alternatives; • This Commission is committed to achieving GHG reductions in the energy sector through, in part, renewable procurement at 33% RPS levels; • The other environmentally preferred alternatives are infeasible for meeting these broader policy goals. • Sunrise – in the form of the Final Environmentally Superior Southern Route – is the highest ranked Alternative that will facilitate Commission policy to achieve GHG reductions through renewable procurement at 33% RPS levels in the shortest time possible with the greatest economic benefits. (END OF ATTACHMENT) - 2 - COM/DGX/tcg ALTERNATE DRAFT Agenda ID #8066 Alternate to Agenda ID #8065 Ratesetting Decision ALTERNATE PROPOSED DECISION OF COMMISSIONER GRUENEICH (Mailed 10/31/2008) BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of San Diego Gas & Electric Company (U 902 E) Application 06-08-010 for a Certificate of Public Convenience and (Filed August 4, 2006) Necessity for the Sunrise Powerlink Transmission Project. (See Appendix F for List of Appearances.) DECISION GRANTING AS CONDITIONED A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE SUNRISE POWERLINK TRANSMISSION PROJECT 358601 - 1 - A.06-08-010 COM/DGX/tcg ALTERNATE DRAFT TABLE OF CONTENTS Title Page DECISION GRANTING AS CONDITIONED A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE SUNRISE POWERLINK TRANSMISSION PROJECT................................................................................................ 2 1. Executive Summary................................................................................................... 2 2. Background................................................................................................................. 8 2.1. Procedural History......................................................................................... 8 2.2. Scoping Memo.............................................................................................. 12 3. Project Objectives and Description........................................................................ 13 3.1. Project Objectives......................................................................................... 13 3.2. Description of the Northern Routes .......................................................... 14 3.2.1. The Proposed Project ........................................................................ 14 3.2.2. SDG&E’s “Enhanced” Northern Route.......................................... 16 3.2.3. The Final Environmentally Superior Northern Route ................. 16 4. Standard of Review and Governing Law............................................................. 17 4.1. Burden of Proof ............................................................................................ 17 4.2. Section 1001 et seq........................................................................................ 20 4.3. Section 399.25................................................................................................ 21 4.4. Rebuttable Presumption of Economic Need............................................ 21 5. SDG&E’s Electric System........................................................................................ 24 5.1. SDG&E’s Transmission Resources ............................................................ 25 5.2. SDG&E’s Generation Resources................................................................ 26 5.3. Future Generation Additions ..................................................................... 27 5.4. Local Capacity Requirement ...................................................................... 29 5.5. Upgrades Planned for Neighboring Transmission Systems.................. 30 5.5.1. Imperial Irrigation District Transmission Upgrades.................... 30 5.5.2. Green Path.......................................................................................... 31 6. Modeling Assumptions for the Analytical Baseline ........................................... 33 6.1.
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