PG&E Presentation Template - Pacific Gas and Electric Company

Report
2014 GRC Workshop
Shelly Sharp & Steve Frank
January 18, 2013
Agenda
Case Overview – Shelly Sharp & Steve Frank
•
Introduction
•
Results of Operations and General Issues
Exhibit-Level Summary
•
Gas Distribution – Bill Gibson/Kristina Castrence
•
Electric Distribution – Kathy Wade
•
Customer Care – Steve Phillips
•
Energy Supply – Stephanie Maggard/Joe O’Flanagan
•
Shared Services – Jacquelyn Lewis
•
Information Technology – Ken La Honta
•
Human Resources – Janet Redmond
•
Administrative & General – Tom Varghese
•
Post Test Year Proposal – David Thomason
•
Results of Operations Model - Niel Jones
Questions & Answers
2
5
2014 GRC Application Exhibit Summary
3
•
•
•
Includes overall policy testimony on PG&E’s request, including testimony on PG&E’s safety and risk management programs.
Provides an executive summary of the case and revenue requirement forecast.
Explains the structure of the remaining exhibits.
•
•
•
Presents the electric and gas distribution, and generation results of operations.
Translates the SAP view of costs presented in Exhibits (PG&E-3) through (PG&E-7) and (PG&E-9) to the Federal Energy Regulatory
Commission (FERC) account view required by the Rate Case Plan.
Presents the other technical cost chapters (e.g., taxes, rate base).
(PG&E-3)
Gas Distribution
•
•
•
Describes PG&E’s policy on managing its gas distribution operations.
Describes the activities and costs incurred in operating, maintaining and constructing gas distribution assets.
Describes how proposed spending addresses safety-related risks.
(PG&E-4)
Electric Distribution
•
•
•
Describes PG&E’s policy on managing its electric distribution operations.
Describes the activities and costs incurred in operating, maintaining and constructing electric distribution assets.
Describes how proposed spending addresses safety-related risks.
(PG&E-5)
Customer Care
•
•
Describes PG&E’s policy on managing its distribution customer service functions.
Describes the activities and costs incurred in providing customer services to distribution customers.
(PG&E-6)
Energy Supply
•
•
•
•
Describes PG&E’s policy on managing its energy supply operations.
Describes the activities and costs incurred in operating, maintaining and constructing generation assets.
Describes the activities and costs incurred to procure electricity and gas.
Describes how proposed spending addresses safety-related risks.
(PG&E-7)
Shared Services and Information
Technology
•
•
Describes PG&E’s policies on, and costs relating to, common support costs, such as fleet, materials, and building costs.
Describes PG&E’s policy on, and costs relating to, managing its information technology (IT) assets and processes, including cybersecurity.
(PG&E-8)
Human Resources Policies
•
•
•
Describes PG&E’s HR policies, including those related to executive and non-executive compensation, benefits, diversity, training and hiring.
Includes the methodology relating to, and results of, the Total Compensation Study.
Describes PG&E’s costs relating to the Short-Term Incentive Plan and benefits.
•
Describes PG&E’s Administrative and General (A&G) costs, including Corporate Services department costs, costs of services provided by
PG&E Corporation, insurance, claims and other A&G costs.
(PG&E-10)
General Report
•
•
•
Presents general information supporting the cost exhibits (e.g., escalation rates).
Presents other information required by the Rate Case Plan including a summary of compliance requirements from various CPUC decisions.
Presents a master list of acronyms used throughout the case.
(PG&E-11)
Post-Test Year Ratemaking
•
•
Presents PG&E’s proposed mechanism for cost recovery during the attrition years 2015 and 2016.
Presents the forecast of rate base growth for the attrition years.
(PG&E-12)
Comparison of NOI and Application
•
Describes significant differences between the Notice of Intent and Application
(PG&E-1)
Summary of PG&E’s
2014 General Rate Case
(PG&E-2)
Results of Operations
(PG&E-9)
Administrative and
General Expenses
Key Structural Differences from Prior GRCs
•
New testimony on safety, risk and cyber security
•
Exhibits (PG&E-1) and (PG&E-7); themes throughout LOB
testimony
•
SED (aka CPSD) Third Party Review of Safety/Security
•
Witnesses are more senior
•
Four Officers lead Exhibit (PG&E-1)
•
Senior Officers lead other exhibits
•
Separate exhibits on gas and electric
•
New exhibit on HR policy
•
More detailed workpapers
•
•
We have asked, as before, that the workpapers be part of record
Consolidation of IT, Real Estate and some training costs with business
sponsors
4
Overall Forecast and Key Drivers
2014 GRC Revenue Requirement (Millions)
2014 GRC Application Forecast
2014 GRC Authorized and Pending
Proposed Increase
$8,111
6,829
$1,282
Key drivers of Increase
•
Investment toward achieving industry “best practices” for gas distribution,
consistent with Senate Bill 705
•
Continued investment in electric distribution infrastructure to improve the safety
and reliability of the system and address identified risks
•
Cost to comply with governmental regulations to address nuclear operations,
hydroelectric relicensing conditions and potential risks to public safety
•
Need for new customer connections and capacity-driven additions
•
Improvements to customer service and education
•
Recovery of costs for depreciation associated with PG&E’s plant investments
5
6
Proportion of the 2014 Forecast by Line of Business
LOB Capital Expenditure Forecast
LOB Expense Forecast
Corporate
Services
11%
Shared Services
3%
IT
9%
Energy Supply
24%
Shared Services
6%
Electric
Distribution
21%
IT
6%
Energy Supply
16%
Gas Distribution
16%
Customer Care
5%
Customer Care
16%
Corporate
Services
1%
Gas Distribution
21%
Electric
Distribution
45%
7
Summary of Increases - Expense
(in Millions of Nominal Dollars)
A
B
C
D
E
No.
LOB
Exhibit
No.
2011 Recorded
Adjusted
2014 Forecast
1
Gas
3
$
233
$
465
$
232
100%
2
Electric
4
$
570
$
631
$
61
11%
3
Customer Care
5
$
384
$
462
$
78
20%
4
Energy Supply
6
$
543
$
723
$
180
33%
5
Shared Services
7
$
55
$
103
$
48
87%
6
IT
7
$
217
$
262
$
45
21%
7
Corporate Services
9
$
226
$
257
$
31
14%
$
2,228
$
2,903
$
675
30%
Total
F
G
$ Difference
% Increase
2014 Forecast vs. 2011 2014 Forecast vs. 2011
Recorded Adj.
Recorded Adj.
Notes:
1. Total amount authorized for 2011 expense is $2,293 million and total 2011 recorded unadjusted is $2,297 million
2. Customer Care amounts include costs related to Meter Reading
3. Corporate Services amounts are presented in FERC dollars and include IT spending
8
Summary of Increases – Capital Expenditures
(in Millions of Nominal Dollars)
A
B
C
D
E
F
G
No.
LOB
Exhibit
No.
2011 Recorded
Adjusted
2014 Forecast
$ Difference
2014 Forecast vs. 2011
Recorded Adj
% Increase
2014 Forecast vs. 2011
Recorded Adj
1
2
3
4
5
6
7
Gas
3
$
308
$
842
$
534
173%
Electric
4
$
1,370
$
1,770
$
400
29%
Customer Care
5
$
114
$
190
$
76
67%
Energy Supply
6
$
539
$
636
$
97
18%
Shared Services
7
$
139
$
250
$
111
80%
IT
7
$
142
$
212
$
70
49%
Corporate Services
9
$
21
$
54
$
33
157%
1,321
50%
Total
$
2,634
$
3,955
$
Notes:
1. Total amount authorized for 2011 capital is $2,332 million and total 2011 recorded unadjusted recorded is $2,792 million
2. Customer Care 2011 recorded adjusted amount excludes $158 million of SmartMeter Deployment costs
9
Additional Case Highlights
• New Two-Way Balancing Accounts:
– Gas Leak Survey and Repair ($147M RRQ)
– Major Emergencies ($56M RRQ)
– FERC Relicensing for Hydro Facilities ($20M RRQ)
– Nuclear Regulatory Commission Mandated Measures on Nuclear Safety ($19M RRQ)
• SmartMeter Program: Deployment is forecasted to be completed in 2013; SmartMeter
benefits are included in 2014 forecast
• Short-Term Incentive Program (STIP): Ratepayer recovery sought only for non-officer
employees; officer STIP will be covered by shareholders
• Depreciation: Updated study; $495M increase in depreciation expense due to change in
depreciation rates
Exhibit (PG&E-3)
Gas Distribution
Bill Gibson/Kristina Castrence
Gas Distribution GRC Case Manager
925-974-4205
[email protected]
11
Gas Distribution – Exhibit Structure
Chapter
No.
Chapter Name
Witness
1
Gas Operations Policy and Introduction
Nick Stavropoulos
2
System Operations Gas Control
Mel Christopher
3
Gas Distribution Mapping and Records
Sumeet Singh
4
Gas Distribution Integrity Management Program
Christine Chapman
5
Pipe, Meter and Other Preventative Maintenance
Jodie Kubota
6
Leak Survey and Repair
Steve Redding
7
Gas Field Services and Response
Rich Yamaguchi
8
Gas Distribution Capital and Investment Planning
Louis Krannich
9
New Business and Work at the Request of Others
Nina Bubnova
10
Technical Training and Research and Development
Bill Gibson
11
Gas Operations Technology Costs
Steve Whelan
12
Gas Operations Building Projects, AGA Fees and PAS 55 Certification
Bill Gibson
Summary of Forecast
Capital Expenditures and Expenses
2014 GRC Expense
$1,000
$1,000
$900
$900
$800
$800
$700
$600
$500
$842
$400
$856
$782
$300
$200
$308
$100
Millions of Nominal Dollars
Millions of Nominal Dollars
2014-2016 GRC Capital
$700
$600
$500
$400
$300
$100
$0
$465
$200
$233
$0
2011
2014
2015
2016
2011
2014
12
2014 Expense Forecast by Chapter
Ch 11
Technology Costs
$19,244
Ch 10
Training/R&D
$15,190
Ch 9
WRO
$6,000
Ch 12
AGA/PAS 55/
Buildings $7,359
Ch 2
Gas Control
$20,017
Ch 3
Mapping/Records
$16,199
Ch 4
DIMP
$47,305
Ch 7
Field Services
$113,713
Ch 5
Preventative
Maintenance
$84,415
Ch 6
Leak Survey/
Repair
$135,980
(Thousands of Nominal Dollars)
13
Key Cost Changes from 2011 Expenses
14
2011 Recorded – $233M; 2014 Forecast – $465M; Increase = $232M
Leak Survey and Repair ($78.9M)
Gas Ops Technology ($18.7M)
• Transition from a 5-year to a 3-year leak survey
•
Pathfinder Project (Gas Distribution Asset Management)
• Perform annual leak survey on highest risk pipe
•
Integrity Management Program enhancements
• Deploy new technology (Picarro
and repair more leaks
SurveyorTM)
to quickly identify •
• Repair above-ground Grade 3 leaks in 15 months rather than
resurveying within 5 years
Mobile technology for field employees
Mapping and Records ($15.2M)
•
Improved centralized accessibility of records
Gas Odor Response/Customer Service ($36.8M)
• Respond to 75% of calls within 30 minutes, 99% within 60
minutes
• Treat all gas odor calls as “immediate response”
Training and R&D ($15.2M)
•
Development of technical training curriculum and programs
Preventative Maintenance ($24.5M)
Distribution Control Center ($13M)
• Increased Locate and Mark services due to economic growth
•
• Proactive projects: dedicated painting crew, low pressure vent
elevation for vaults
Distribution Integrity Management Program ($22.6M)
• Cross Bored Sewer Program
• Program Management
Staffing for control center and equipment maintenance
15
2014 Capital Expenditures Forecast by Chapter
Ch 11
Technology
Costs
$43,722
Ch 5
Meter
Protection
Program
$246
Ch 12
Buildings
$61,494
Ch 2
Gas Control
$62,209
Ch 7
Regulator
Replacement
$14,879
Chapter 8 – Gas Distribution Capital & Investment Planning
Tools & Equipment
$2,558
Ch 9
New Bus/
WRO
$128,000
Ch 8
Gas
Distribution
Capital &
Investment
Planning
$531,594
Leak Replacement/
Emergency
$614
GPRP
$331,190
Reliability
$128,055
Capacity
$15,138
Natrual Gas Vehicle
Stations
$2,890
(Thousands of Nominal Dollars)
Replace/Convert
HPR
$51,150
(Thousands of Nominal Dollars)
Key Cost Changes from 2011 Capital
Expenditures
16
2011 Recorded – $308M; 2014 Forecast – $842M; Increase = $534M
Pipeline Replacement, Capacity, Reliability and other
Capital ($310.9M)
• Gas Pipeline Replacement Program (GPRP) ($204.2M)
o
Transition from replacing 30 miles to 180 miles of distribution
main and associated services
• 60 miles of pre-1940 steel pipe per year
• 100 miles of Aldyl-A plastic pipe per year
• 20 miles of post-1940 steel pipe per year
Customer Connections and Requested Work ($45.1M)
• New customer growth projections: backbone construction
(main), customer connections (services), regulators and facility
alterations
Gas Ops Technology ($40.7M)
• Pathfinder Project (Gas Distribution Asset Management)
($15.7M)
• Low pressure to high pressure main replacement ($40.8M)
• Mobile technology for field employees ($8.2M)
• Installation of additional emergency valves ($27.8M)
• Back up radio system ($8.0M)
• Replacement of High Pressure Regulator ($31.5M)
Distribution Control Center Electronic Instrumentation
($62.2M)
• Field installation of 60 Remote Terminal Units and 128 pressure
recorders and the custom software to enable it
Gas Buildings ($61.0M)
•
•
•
•
Gas Training Center ($40.9M)
Antioch Service Center ($7.7M)
San Carlos Service Center ($4.5M)
Construction of Gas Control Center “Hot” backup ($3.3M)
Regulator Replacements ($14.1M)
• Labor costs of replacing non-internal relief valve (IRV)
regulators with an IRV regulator
Exhibit (PG&E-4)
Electric Distribution
Kathy Wade
Electric Distribution GRC Case Manager
415-973-4401
[email protected]
Electric Distribution – Exhibit Structure
Chapter
No.
Chapter Name
Witness
1
Electric Distribution Operations Policy and Introduction
Geisha Williams
2
Electric Operations Technology
Kevin Dasso
3
Applied Technology Services
Kevin Dasso
4
Electric Mapping and Records Management
Kevin Dasso
5
Electric Distribution Maintenance
Jeffery Hulon
6
Pole Test and Treat, Restoration and Joint Utilities Coordination
Jeffery Hulon
7
Pole Replacement
Jeffery Hulon
8
Vegetation Management
Peter Dominguez
9
New Business and Work at the Request of Others
Nina Bubnova
10
Electric Emergency Recovery
Barry Anderson
18
Electric Distribution – Exhibit Structure
(continued)
Chapter
No.
Chapter Name
Witness
11
Distribution System Operations
Barry Anderson
12
Electric Distribution Capacity
Manho Yeung
13
Substation Asset Strategy
Manho Yeung
14
Electric Engineering – Distribution Planning, Operations, & Power
Quality
Manho Yeung
15
Electric Distribution Reliability
Steve Calvert
16
Underground Asset Management
Steve Calvert
17
Distribution Automation and System Protection
Steve Calvert
18
Rule 20A
Sindy Mikkelsen
19
LED Streetlight Program
Steve Dannecker
20
Electric Distribution Support Activities
John Carruthers
19
20
Summary of Forecast:
Capital Expenditures and Expenses
2014 GRC Expense
$2,000
$1,000
$1,800
$900
$1,600
$800
$1,400
$1,200
$1,000
$1,909
$1,370
$1,770
$1,827
$800
$600
Millions of Nominal Dollars
Millions of Nominal Dollars
2014-2016 GRC Capital
$700
$600
$500
$400
$300
$400
$200
$200
$100
$0
$0
2011
2014
2015
2016
$631
$570
2011
2014
2014 Expense Forecast by Chapter
Ch 14
Engineering
Ch 17
Automation
$2,027
$24,147
Ch 20
Support
Ch 2
Elec Ops Tech
($6,056)
$12,075
Ch 3
ATS
$2,151
Ch 4
Elec Mapping
Ch 13
Sub Maint
$31,117
$40,064
Ch 11
Distribution Operations
Ch 5
Elec Maint
$54,985
$125,903
Ch 10
Emergency
Ch 6
Pole Test & Treat
$117,347
$16,117
Ch 8
Vegetation Management
Ch 9
Work at the
Request of Others
$21,231
$190,000
(Thousands of Nominal Dollars)
21
Key Cost Changes from 2011 Expenses
22
2011 Recorded – $570M; 2014 Forecast – $631M; Increase = $61M
Safety, Maintenance and Compliance ($56.3M)
Customer Connection, Demand Growth and Franchise
Obligations ($6.0M)
• Vegetation Management: 1) Expansion of fire risk program 2)
Expenditures for biological oversight as a result of increasing
• New business: Increasing number of new customer
focus on vegetation management work
connections and Plug-In Electric Vehicles service requests
• Electric Distribution Maintenance : 1) Comprehensive infrared Emergency Response ($-39.0M)
and splice inventory program for the overhead system; 2) UG
• Routine Emergency: Forecast uses 3-year average with
Barcoding project ; 3) Underground switch replacement
adjustment associated with implementing MobileConnect
program (not the same as switch replacement program in
technology
Ch16)
• Major Emergency: Forecast uses 5-year average adjusted for
• Pole Test & Treat: Forecast reflects results of 2010 review;
CEMA-related cost recovery
completing current 10-year cycle on schedule; and working an
increased number of poles as a result of working fewer poles
• Reduction because 2011 recorded for Major Emergencies is
in 2009-2011
higher than forecast (largest expenditure in 2007 to 2011)
• Substation Maintenance: Increase for substation support
• Two-Way Balancing Account Proposal (for major
activities and for corrective maintenance to complete higher
emergencies) same as 2011 GRC
priority maintenance work
Operations, Automation and Support ($48.3M)
Work Efficiency ($-10.7M)
• Electric Mapping: 1) Reviewing maps for GIS; 2) Field Asset
• Electric Operations Improvement plan calls for absorbing
Inventory; 3) Convert paper-based records to electronic format
escalation from 2012 to 2015
• Electric Ops Technology: 17 projects in the following
• Escalation is included at a MWC level (two exceptions, Ch. 2
technology portfolios: 1) System Operations (6); 2) Asset and
and Ch. 8)
Records Management (3); 3) Work Design and Management
• A corresponding escalation credit, for the entire exhibit, is
(5); 4) Workforce Mobilization and Scheduling (3)
included in MWC AB (expense)
23
2014 Capital Expenditures Forecast by Chapter
Ch 18
Rule 20A
$88,222
Ch 19
LED St Lts
$18,600
Ch 20
Support
Ch 2
Elec Ops Tech
($44,893)
$71,259
Ch 3
ATS
Ch 17
Automation
$2,833
$73,454
Ch 5
Elec Maint
Ch 7
Pole Replacement
$176,515
Ch 16
UG Assets
$69,578
$140,078
Ch 15
Reliability
$172,026
Ch 9
NB/WRO
$436,031
Ch 13
Substation
$175,012
Ch 12
Capacity
$182,805
Ch 10
Emergency
Response
$173,782
Ch 11
Dist Ops
(Thousands of Nominal Dollars)
$34,753
Key Cost Changes from 2011 Capital
Expenditures
24
2011 Recorded – $1,370M; 2014 Forecast – $1,770M; Increase = $400M
Customer Connection, Demand Growth and Franchise
Obligations ($178.8M)
• New business: Forecast anticipates improving economic
conditions based on data from Moody’s Investor Service
(Moody’s)/Economy.com and HIS Global Insight
• WRO: Forecast indexed to new business work and CalTrans
spending plus additions for specific projects (e.g., Transbay
Terminal, Central Subway, High-Speed Rail)
• Rule 20A: Continue to reduce accumulated work credits
Operations, Automation and Support ($125.5M)
• PG&E’s distribution automation strategy calls for the installation
of substation SCADA automation at nearly all substations by
2017
• Distribution Control Center Consolidation: 1) Original plan was
to construct 4 new facilities; 2) Now planning to construct one
new facility and remodeling two additional facilities –
significantly less cost
Asset Management and Reliability ($114.9M)
• Underground Assets: 1) Network Cable Replacement; 2)
TGRAM/TGRAL Switch Replacement
• Reliability: 1) Overhead conductor replacement to reduce
instances of wire down; 2) Fault Locating, Isolating and Service
Restoration Systems; 3) Used Value of Service (VOS) to
estimate benefit-to-cost ratios
Safety, Maintenance and Compliance ($53.2M)
• Comprehensive infrared and splice inventory program for the
overhead system
• Underground switch replacement program
• SF series street lights
Emergency Response ($-28.7M)
• Routine Emergency: Forecast uses 2009 to 2011 average
with adjustment associated with implementing MobileConnect
technology
• Major Emergency: Forecast uses 2007 to 2011 average
• Reduction because 2011 recorded for Major Emergency is the
highest value in 2007 to 2011 time period
• Two-Way Balancing Account Proposal for major emergencies
(same as 2011 GRC)
Work Efficiency ($-43.7M)
• Electric Operations Improvement Plan calls for absorbing
escalation from 2012 to 2015
• Escalation is included at a MWC level (exceptions Ch. 2 and
Ch. 8)
• A corresponding escalation credit, for the entire exhibit, is
included in MWC 05 (capital).
Exhibit (PG&E-5)
Customer Care
Steve Phillips
Acting Customer Care GRC Case Manager
415-973-2974
[email protected]
Customer Care – Exhibit Structure
Chapter
No.
Chapter Name
Witness
1
Customer Care Policy
Helen Burt
2
Customer Inquiry Assistance
Steve Phillips
3
Office Services
Steve Phillips
4
Meter to Cash
Steve Phillips
5
Metering
Steve Phillips
6
Quality Assurance Programs/Safety Net Program
Steve Phillips
7
Customer Energy Solutions
Jess Brown
8
Customer Retention
David Rubin
9
Information Technology Programs
Brian Rich
10
SmartMeter Program
James Meadows
11
Accessibility Improvements
Steve Phillips
26
Summary of Forecast Capital
Expenditures and Expenses
2014 GRC Expense
$1,000
$1,000
$900
$900
$800
$800
Millions of Nominal Dollars
Millions of Nominal Dollars
2014-2016 GRC Capital
$700
$600
$500
$400
$300
$200
190
$100
167
162
114
$0
2011
113
2014
2015
2016
$700
$600
$500
$400
$300
$200
$384
$462
$100
$0
2011
2014
27
28
2014 Expense Forecast by Chapter
Ch 8
Customer
Retention $2
Ch 9
IT Programs
$8
Ch 7
Customer Energy
Solutions
$80
Ch 2
Customer Inquiry
Assistance
$125
Ch 5
Metering
$75
Ch 3
Office Services
$34
Ch 4
Meter to Cash
$137
(Millions of Nominal Dollars)
Key Cost Changes from 2011 Expenses
29
2011 Recorded1 – $384M; 2014 Forecast – $462M; Increase = $78M
Account Services Staffing Increase ($24.1M)
Validation and Processing of Interval Data ($18.9M)
• Improve base account services work (i.e. administer rates,
rules, contracts, address billing, collection issues, outage
communication)
•
• Increase customer service provided to small and medium
business customers
• Increase of approximately 146 full-time employees
Contact Center Enhancements ($22.9M)
• Improve access to a representative, e.g., reduce average
speed of answer (68 customer service representatives)
• Customer advocacy expansion (19 customer service
employees)
Increase Billing Operations staff to handle increased volume
of interval data for interval billing and web presentment: 137
employees to validate interval data to ensure accuracy for
billing and customer web presentment
Information Technology Programs ($4.7M)
• Customer interaction and relationship management
• Customer self-service and energy management
improvements
• Interval data processing and exceptions management
• Improve billing capabilities for new rates and services
• Meter management
• Expand and improve customer service representative training
• Manage increase in call durations (129 customer service
representatives)
SmartMeterTM Benefits (-$28M)
• SmartMeterTM-related savings included in forecast (2011 –
2014).
Rate Education and Outreach ($23.4M)
• Integrate rate and program education and outreach –
consolidate rate education covering multiple rate programs
rather than requesting separate funding for each program
• Provide outreach and communications to customers regarding
major electric and gas safety and reliability work
Other ($12M)
• Reinstitution of the R-test Program at full scale
• SmartMeterTM maintenance work
• Electric SmartMeterTM testing at GEMS
• Improve service and reduce wait times at local offices
1 – 2011 recorded spending includes $73M in meter reading costs recorded in the Meter Reading Cost Balancing Account
2014 Capital Expenditures Forecast by Chapter
Ch 2
Customer
Inquiry
Assistance
$16
Ch 9
Information
Technology
Programs
$33
Ch 5
Metering
$128
(Millions of Nominal Dollars)
Ch 3
Office
Services
$4
Ch 4
Meter to Cash
$9
30
31
Key Cost Changes from 2011
Capital Expenditures
2011 Recorded – $114M; 2014 Forecast – $190M; Increase = $76M
Information Technology Projects ($25.6M)
Corporate Real Estate Costs ($20.1M)
• Customer interaction and relationship management
• Build out of Fresno and Sacramento Contact Centers
• Customer self-service and energy management improvements • Relocation of Billing and Credit Center
• Interval data processing and exceptions management
• Improve billing capabilities for new rates and services
• Meter management
Ongoing Metering Requirements and Miscellaneous
Capital ($26.9M)
• Ongoing gas and electric meter costs
• Computers, tools, equipment, miscellaneous capital
infrastructure
Local Office Remodels ($4M)
• Improved signage
• Improved customer access
• Installation of ergo equipment for employees
Exhibit (PG&E-6)
Energy Supply
Stephanie Maggard/Joe O’Flanagan
Energy Supply GRC Case Managers
415-973-2812/415-973-3978
[email protected][email protected]
33
Energy Supply – Exhibit Structure
Chapter
No.
Chapter Name
Witness
1
Energy Supply Operations Policy
John Conway
2
Hydro Operations Costs
Mike Jones
3
Nuclear Operations Costs
Ed Halpin
4
Fossil and Other Generation Operations Costs
Debbie Powell
5
Energy Procurement Administration Costs
Kelly Everidge
6
Energy Supply Ratemaking
Joe O’Flanagan
34
Summary of Forecast
Capital Expenditures and Expenses
2014 GRC Expense
$1,000
$1,000
$900
$900
$800
$800
$700
$600
$500
$400
$539
$300
$689
$673
$636
$200
$100
Millions of Nominal Dollars
Millions of Nominal Dollars
2014-2016 GRC Capital
$700
$600
$500
$723
$400
$300
$543
$200
$100
$0
$0
2011
2014
2015
2016
2011
2014
35
2014 Expense Forecast by Chapter
Ch 5
Energy
Procurement
$61,800
Ch 4
Fossil and Other
Generation
Operations
$54,633
Ch 2
Hydro Operations
$191,144
Ch 3
Nuclear
Operations
$415,500
(Thousands of Nominal Dollars)
Key Cost Changes from 2011 Expenses
36
2011 Recorded – $543M; 2014 Forecast – $723M; Increase = $180M
Hydro Operations ($58.1M)
Fossil and Other Generation Operations ($8.8M)
• Enterprise Risk Management efforts and associated Facility
Safety, Water Conveyance, and Penstock Programs
•
Piping integrity program; implementation of a machinery
assessment program
• FERC License Conditions as a result of licenses received and
expected to be received
•
Humboldt Bay Generating Station major engine preventative
maintenance work
• Maintenance to continue the safe and reliable operations of
powerhouses and water storage and conveyance systems
Nuclear Operations ($101.3M)
• Dual Refueling Outage
• Eddy current testing of Unit 2 Steam Generators
• O&M Projects (e.g., Cyber Security, Emergency Planning
Rulemaking, Procedure Upgrade Project, and Water
Storage Tank Concrete Repair)
• Fukushima related regulatory requirements
Energy Procurement Administration ($11.7M)
• New Compliance Requirements (e.g., Renewable Portfolio
Standard, GHG, QF/Combined Heat and Power Settlement,
Dodd-Frank Act of 2010)
37
2014 Capital Expenditures Forecast by Chapter
Ch 4
Fossil and Other
Generation
Operations
$3,355
Ch 5
Energy
Procurement
$33,900
Ch 3
Nuclear
Operations
$254,555
Ch 2
Hydro
Operations,
$344,664
(Thousands of Nominal Dollars)
Key Cost Changes from 2011
Capital Expenditures
38
2011 Recorded – $539M; 2014 Forecast – $636M; Increase = $97M
Hydro Operations ($100.5M)
Fossil and Other Generation Operations (-$26.2M)
• Waterway Projects to enhance public and employee safety
• Reliability Projects and Programs (e.g., Helms rotor and stator
• Completion of Large Construction Projects (Gateway
replacements, generator rewinds, turbine and governor
overhauls/replacements, large valve refurbishments)
Generating Station, Humboldt Bay Generating Station, and
fuel cells)
• FERC license and license conditions work
Energy Procurement Administration ($8.1M)
Nuclear Operations ($15.1M)
• CAISO Market and Performance Initiatives
• Regulatory Required Work (e.g., Fukushima review, Cyber
Security, Emergency Plan modifications, and a new National
Fire Protection standard)
39
Energy Supply Ratemaking
Two-way balancing accounts for Hydro License and License Conditions costs
and Nuclear Regulatory Commission Rulemaking costs
•
Key Parameters:
–
Costs are required by FERC (hydro) or NRC (nuclear)
–
Timing and magnitude of spending difficult to forecast/not in PG&E’s control
–
Funds can only be used for balancing account purposes and cannot be
reallocated
–
Unspent funds returned to customers in next GRC
Credit of DOE Litigation proceeds
Credit of PV Program cost savings
2014 GRC NOI
Exhibit (PG&E-7)
Shared Services
Jacquelyn Lewis
Shared Services GRC Case Manager
925-459-6941
[email protected]
41
Shared Services– Exhibit Structure
Chapter
Title
Witness
1
Introduction
Des Bell
2
Safety
3
Transportation Services
4
Supply Chain – Materials Logistics and Planning
Lance Schultz
5
Supply Chain - Sourcing
Steve Coleman
6
Real Estate
7
Environmental Program
Linda Limberg
Dave Meisel
Helen Vu
Janet Loduca
Summary of Forecast – Capital
Expenditures & Expenses
2014 GRC Expense
$300
$300
$250
$250
$200
$150
$250
$100
$239
$214
$139
Millions of Nominal Dollars
Millions of Nominal Dollars
2014-2016 GRC Capital
$200
$150
$100
$50
$50
$55
$103
$0
$0
2011
2014
2015
2016
2011
2014
42
2014 Expense Forecast by Chapter
($103M)
Ch 3
Transportation Services
$3,120
Ch 4
Supply Chain - Materials
$1,321
Ch 5
Supply Chain Sourcing
$13,077
Ch 7
Environmental
$36,769
Ch 2
Safety
$16,347
Ch 6
Real Estate
$32,590
(Thousands of Nominal Dollars)
43
Key Cost Changes from 2011 Expenses
2011 Recorded – $55M; 2014 Forecast – $103M; Increase = $48M
Real Estate – ($20.6M)
• Non-Customer Service Office (CSO) Americans with Disabilities Act (ADA) compliance program
compliance)
• Maintenance Backlog (6 year program)
• Facility Seismic Safety Upgrades
• Strategic Portfolio Projects
Environmental – ($13.1M)
• Green House Gas (GHG) California Air Resources Board (CARB) Fees
• IT upgrade projects
• Additional remediation support for project management and oversight
• Additional land management work (conservation easements, fire management and inspections etc.)
Supply Chain - ($6.5M)
• Enhancement of supplier diversity and technical assistance programs
• Upgrading Supplier Relationship Management (SRM) system
• Streamlining supplier performance management
• Integrating supply chain with Enterprise Content Management
Safety – ($5.3M)
• Additional staff for improved field support
• Funding for Safety Audit/Assessment Program and Contractor Safety Program
Transportation Services – ($3.1M)
• Fleet Management and Transportation Services IT System Enhancements
(Proactive
44
2014 Capital Expenditure Forecast by
Chapter ($250M)
Ch 6
Real Estate
$81,601
Ch 7
Environmental
$11,526
Ch 5
Supply Chain - Sourcing
$10,020
Ch 3
Transportation Services
$139,302
(Thousands of Nominal Dollars)
Ch 4
Supply Chain - Materials
$7,849
Ch 2
Safety
$145
45
46
Key Cost Changes from 2011 – Capital Expenditures
2011 Recorded – $139M; 2014 Forecast – $250M; Increase = $111M
Transportation - ($62.3)
• Air Resource Board (ARB) compliance replacements
• Vehicle life cycle replacements
• Gas Operations additional vehicles
Real Estate – ($41.0M)
• Service Center consolidation and optimization
• Improvement of operational reliability for critical facilities
• Service Center and General Office projects (improvements on outdated facilities)
Environmental – ($6.0M)
• IT upgrade projects
• Multi Regional Habitat Conservation Program permitting
• Environmental capital projects (e.g., above-ground and underground fuel storage tanks)
Supply Chain – ($1.4M)
• Sourcing Supplier Relationship Management (SRM) IT system upgrade
Safety – ($0.1M)
• Safety Work Management IT software upgrade
Exhibit (PG&E-7)
Information Technology
Ken La Honta
IT Program Office Sr. Manager
415-973-3537
[email protected]
Information Technology
Exhibit Structure
Chapter
No.
Chapter Name
Witness
8
Information Technology Costs
Malia Wolf
9
Cybersecurity
James Sample
Note: All IT “owned” forecasts are located in Exhibit (PG&E-7) Chapter 8.
48
49
Summary of Forecast
Capital Expenditures and Expenses
2014 GRC Expense
2014-2016 GRC Capital
$300
$200
$150
$212
$100
$212
$197
$142
$50
$0
In Millions of Nominal Dollars
In Millions of Nominal Dollars
$250
$250
$200
$150
$262
$100
$217
$50
$0
2011
2014
2015
2016
2011
2014
50
Key Cost Changes from 2011 GRC Capital
Expenditures and Expenses
2011 Recorded Capital = $142M
2014 Forecast = $212M
Increase = $70M
Baseline Portfolio – No capital forecast
2011 Recorded Expense = $217M
2014 Forecast = $262M
Increase = $45M
Baseline Portfolio ($43.8M Increase from 2011-2014)
• Maintenance contracts and licensing to support the
growth of assets and services.
• Increased headcount to support Continuous
Improvement initiatives.
• Increased use of mobile devices and the growing number
of IT applications and systems.
Technology Reliability Portfolio ($70.2M Increase from
2011- 2014)
Technology Reliability Portfolio ($0.9M Increase from
2011-2014)
• Lifecycle replacements and upgrades.
• Increased lifecycle initiatives related to maintaining the
reliability of PG&E’s expanding IT asset base.
• 5 new technology reliability projects:
1. Disaster Recovery
2. Telecommunications Network Enhancement
3. Identity and Access Management (IAM)
4. Service Management
5. Records Management
2014 IT Capital Expenditures Forecast by
IT Owned, LOB and Exhibit
A&G Exhibit 9,
$39,486
Shared Services Exhibit 7, $22,252
Energy Supply Exhibit 6, $59,150
IT Owned, $212,321
Customer Care Exhibit 5, $33,400
Electric Operations Exhibit 4, $72,164
Gas
Operations Exhibit 3,
$43,722
(Thousands of Nominal Dollars)
*LOB = Line of Business
51
2014 IT Expense
Forecast by IT Owned, LOB and Exhibit
Energy Supply Exhibit 6, $9,250
Shared Services Exhibit 7 , $13,585
A&G - Exhibit 9,
$12,874
Customer Care Exhibit 5, $8,200
Electric
Operations Exhibit 4, $12,953
Gas Operations Exhibit 3, $19,244
IT Owned,
$261,603
*LOB = Line of Business
(Thousands of Nominal Dollars)
52
Exhibit (PG&E-8)
Human Resources
Janet Lee Redmond
Human Resources GRC Case Manager
415-972-5208
[email protected]
Human Resources – Exhibit Structure
Chapter
No.
Chapter Name
Witness
1
Human Resources Policy
John Simon
2
Workforce Diversity and Inclusion Policy
Joyce Ibardolasa
3
Total Compensation Study
John Lowe
4
Total Compensation Study Results
F. Pierce Noble
James Vaughan
(Mercer)
5
Short-Term Incentive Plan and Labor Escalation Assumptions
Gene Tate
6
Benefits, Health and Insurance
Dora Choy
7
Retirement, Disability and Other Benefits Including Trust Contributions
Valerie Lewis
Ted Huntley
8
Workers Compensation Costs
Christopher Thomas
9
Workforce Management – Severance Program Costs
Andy Williams
54
2014 Expense Forecast by Chapter
Human Resources Department
Workforce Management
(Ch 9), $14.1
HR Department Costs
(Exh PG&E-9, Ch 4), $62.2
Short-Term Incentive Plan
(Ch 5), $130.3
Workers' Compensation
(Ch 8), $41.6
Benefits, Health and Life
Insurance (Ch 6), $396.8
Other Benefits (Ch 7), $10.2
Retirement Savings and
Pension Pay as You Go
(Ch 7), $90.1
Postretirement Benefits
(Ch 7), $75.2
Retirement Trust
Contributions (see Note),
$327.0
Note: Retirement Plan Trust Contributions of $327 million
are shown for information only and are not included in this
General Rate Case.
Disability (Ch 7), $36.5
(Millions of Nominal Dollars)
55
Key Cost Changes from 2011 to 2014
2011 Recorded $652.4 million
2014 Forecast $793.9 million
Increase $141.5 million
Does not include HR Department Costs
which are in Exhibit 9.
HR Policy
• No funding requested
Workforce Diversity and Inclusion
• No funding requested
Total Compensation Study
• Conducted by Mercer
• Joint effort between PG&E and DRA.
• PG&E’s overall total compensation (total cash
compensation plus in study benefits) is 9.9% relative to the
market median.
• Study concludes that PG&E’s “overall total compensation is
competitive since aggregate total compensation is within
10% of the market median.
• No funding requested
56
Short-Term Incentive Plan and Labor Escalation
Assumptions ($69.5 million)
• PG&E is not requesting recovery of STIP for officers of the
Company and PG&E Corporation
• PG&E has made significant modifications to its STIP design:
safety and customer-focused metrics (including reliability)
constitute the most significant program drivers.
• Forecast labor escalation rates are based on PG&E’s ratified
labor agreements and for non-bargaining unit employees
market surveys. The costs associated with labor escalation are
included in the respective exhibits with labor requests.
Key Cost Changes from 2011 to 2014
Benefits, Health and Insurance ($96.3 million)
• PG&E will introduce a single medical plan design for nonbargaining employees in 2013 and for bargaining employees
in 2014. The plan will replace all existing medical plan
options.
57
Retirement, Disability and Other Benefits,
Including Trust Contributions (-$32.0 million)
• Forecast includes $36 million increase due to headcount
growth.
• In 2013, PG&E will introduce a new retirement income
program featuring a new cash balance pension formula
combined with an enhanced 401(k) matching contribution for
new hires beginning 2013, and existing employees who
choose to switch plans effective 2014.
Workers’ Compensation Costs ($2.7 million)
• Forecast includes $8.8 million increase due to headcount
growth.
• Cost of administering PG&E’s self-insured Workers’
Compensation Program.
Workforce Management – Severance Costs
($5.0 million)
• PG&E’s forecast pertains to Workforce Management Program
costs for non-officer employees only, and is based on the
average Workforce Management Program costs (excluding
executive severance payments) from 2007-2011.
• PG&E is not requesting cost recovery for the pension trust
contribution in this GRC since those amounts have been
separately provided for in CPUC D.09-09-020.
Exhibit (PG&E-9)
Administrative & General
Tom Varghese
A&G GRC Case Manager
415-973-7198
[email protected]
59
A&G Exhibit Structure
Chapter
No.
Chapter Name
Witness
1
Introduction
Judy Gutierrez
2
Finance Organization Costs
Bruce Fraser
3
Risk & Audit Department Costs and Insurance Expenses
Megan Janis
4
HR Department and HR Technology Costs
5
Regulatory Relations Department Costs
Shilpa Ramaiya
6
Law Department and Related Costs
Sandy Hartman
7
Executive Offices and Corporate Secretary Department Costs
8
Corporate Affairs – Communications Department Costs
Susie Martinez
9
Corporate Affairs – External Affairs Department Costs
Susie Martinez
10
A&G Ratemaking Adjustments
Judy Gutierrez
Andy Williams
Linda Cheng
60
Summary of A&G Exhibit Forecast
2014 GRC Expense
2014-2016 GRC Capital
(Millions of Nominal Dollars)
(Millions of Nominal Dollars)
300
300
244
250
250
219
200
200
154
150
150
117
100
100
54
50
50
7
2014
Department
Costs
2011
2014
Companywide
Expenses
2011
20
0
0
2011
27
21
13
2014
IT and Other
Projects
2011
2014
2015
IT and Other Capital Projects
2016
Key Drivers of 2014 Forecast
Department Costs
• 2014 forecast is 11% higher than 2011 recorded adjusted costs
• Majority of increase attributable to annual escalation over a 3-year period;
remaining increase driven by department-specific initiatives to support
2014-2016 goals
Companywide Expenses
• 2014 forecast is 32% higher than 2011 recorded adjusted costs
• Increase largely driven by $54M forecasted increase in insurance
premiums
IT and Other Capital Projects
• 2014 forecast largely driven by department-specific IT projects
• Forecast includes development of an alternate Emergency Operations
Center
61
62
2014 Department Cost Forecast
Ch 8
Corporate Affairs Communications
$19.0
Ch 9
Corporate Affairs –
External
$10.4
Ch 2
Finance
$45.1
Ch 7
Executive Offices
and Corporate
Secretary
$13.8
Ch 3
Risk and Audit
$19.2
Ch 6
Law
$51.7
Ch 4
Human Resources
$62.2
Ch 5
Regulatory
Relations
$22.6
(Millions of Nominal Dollars)
63
Key Drivers of 2014 Department Cost Forecast
2014 Forecast: $244M Expense (11% increase over 2011 recorded adjusted costs)
Finance: $45M (15% increase)
• Wage escalation
• Higher external audit fees
Risk & Audit: $19M (21% increase)
• Wage escalation
• Additional staff to:
•
•
•
Ensure compliance with new legislation and regulations
Work with PG&E’s lines of business to ensure active
management of operational and enterprise risks
Enhance the physical security of facilities, support the
Business Continuity and Emergency Management, and life
safety programs.
HR: $62M (26% increase)
• Wage escalation
• Additional resources to:
•
•
•
Support increased recruiting needs, enhanced workforce
planning and expanded knowledge transfer programs
Deliver new technical training curriculum, maintain existing
and newly developed training courses
Provide increased field support for supervisors to fairly and
consistently implement PG&E’s HR programs and plans.
Regulatory Relations: $23M (17% increase)
• Wage escalation
• Additional staff to:
– Manage a larger caseload and an increasing number of compliance
and reporting requirements
– Perform more complex rate and revenue requirement analyses.
Law: $52M (6% decrease)
• Wage escalation
• Reductions in outside service costs
Executive Offices and Corporate Secretary: $14M (10%
increase)
• Wage escalation
Corporate Affairs – Communications: $19M (5% increase)
• Wage escalation
Corporate Affairs – External Affairs: $10M (1% increase)
• Wage escalation
2014 Companywide Expense Forecast
2014 GRC Expense
(Millions of Nominal Dollars)
120
105
100
80
60
51
37
40
21
20
5
6
10
12
5
15
2
2
2011
2014
0
2011
2014
Bank/Trustee
Fees
2011
2014
Remaining Vacation
Liability
2011
2014
Insurance
2011
2014
Settlements and
Judgments
2011
2014
Third Party Claims
Board of Director
Fees and
Expenses
64
65
2014 IT and Other Projects Forecast
2014 GRC Expense and Capital
(Millions of Nominal Dollars)
35
34
30
25
20
15
10
5
8.2
7.9
3.8
4.0
2.6
1.6
2.2
0.7
0.9
0.3
0.8
Exp
Cap
0
Exp
Cap
Chapter 2:
Finance
Exp
Cap
Chapter 3:
Risk and Audit
Exp
Cap
Chapter 4:
HR
Exp
Cap
Chapter 5:
Regulatory
Relations
Exp
Cap
Chapter 6:
Law
Chapter 8:
Corporate Affairs Communications
66
Summary of 2014 IT and Other Project Forecast
2014 Forecast: $13M Expense and $54M Capital
Finance: $3M Expense and $8M Capital
• IT projects to ensure compliance with new
accounting regulations, maintain core financial
systems, and enhance the capability of PG&E’s
core financial systems
Risk & Audit: $4M Expense and $34M Capital
• Capital project to establish an alternative
Emergency Operations Center outside of the San
Francisco Bay Area
•
IT projects to support (1) the capability to assess
and manage risk associated with commodities
transactions; (2) security and access at PG&E’s
physical locations; and (3) automation and
readiness of PG&E’s Business Continuity and
Emergency Management Program
HR: $4M Expense and $8M Capital
• IT projects to support compliance with employment
laws and regulations through automation, self
service offerings, and other online capabilities for
employees
Regulatory Relations: $2M Expense and $2M Capital
• IT projects to support increasingly complex data analysis
and rate design work
Law: $1M Expense and $1M Capital
• IT projects to support (1) the legal eDiscovery Program
and (2) the Public and Employee Safety and Claims
Management Program
Corporate Affairs – Communications:
$250K Expense and $750K Capital
• IT project to provide employees with mobile tools and
digital communication channels to help improve their
contact with subject-matter experts and their
communication with other employees in the field
Exhibit (PG&E-11)
Post Test Year Ratemaking
David Thomason
Financial Forecasting & Analysis Sr. Director
415-973-1720
[email protected]
Post-Test Year Ratemaking Proposal
2014 GRC Revenue Requirement Forecast
$8,111 million
2015 Attrition Increase
$ 492 million
2015 GRC Revenue Requirement Forecast
$8,603 million
2016 Attrition Increase
$ 504 million
2016 GRC Revenue Requirement Forecast
$9,107 million
68
Mechanism
Post-test year revenue requirement increases are necessary to fund:
• Capital-related costs due to growth in rate base and depreciation expenses, irrespective of inflation
• Operating expense cost escalation for labor, medical, and materials and supplies
• Additional gas leak survey repair activity (subject to balancing account treatment; any unspent funds would be
returned to customers)
PG&E proposes that revenue requirements for the attrition years be estimated using GRC-adopted expenses
and capital additions for 2014; post-test year escalation rates would be set upon final Commission decision in
the 2014 GRC proceeding.
Other Adjustments – Revenue requirement changes associated with approved “Z factor” events, defined as
significant events that are beyond the Company’s ability to control and cause large changes in its cost
structure. Z factor adjustments are subject to a one-time $10 million deductible per event.
2015 Revenue Requirement Increase Comparison
69
Results of Operations
Model
Niel Jones
Results of Operations Model Manager
415-973-8540
[email protected]
71
PG&E GRC Results of Operations (RO) Model
•
Proprietary Excel-based model that
calculates a revenue requirement
using cost, tax and global inputs
• Details of PG&E’s RO are discussed in Exhibit (PG&E-2)
•
PG&E’s GRC RO model includes
three lines of business and
summarizes costs in the following
categories:
Electric
Generation
Electric
Distribution
Gas
Distribution
• Operation & Maintenance Expenses
• Customer Services
• Administrative and General Expenses (salaries, benefits,
etc.)
• Franchise Fees and Uncollectibles, Taxes other than
Total GRC Revenue Request
Income and Other Adjustments
(Including test year and attrition years)
• Income Taxes, Depreciation & Amortization
• Levels of Ratebase and Associated Return
PG&E’s 2014 GRC RO Model Data Flow
RO Inputs Supported by
72
RO Output
Cost Witnesses
Exhibits (PG&E-3)-(PG&E-9)
Capital and Expense
Tax Witnesses
Revenue Requirement
Exhibit (PG&E-2)
•
Deductions and Credits
Global Items Witnesses
Exhibits (PG&E-2)&(PG&E-10)
Escalation Rates,
Depreciation Rates, Working
Cash, Cost of Capital, etc.
Attrition Witnesses
Exhibit (PG&E-11)
Attrition Methodology
RO Model
Exhibit
(PG&E-2)
•
•
•
•
Test Year-2014, Attrition Years-2015
& 2016
Expenses including depreciation
Taxes
Ratebase
Return on Ratebase
Questions & Comments
Thank You
Shelly Sharp
Steve Frank
Minci Han
Case Manager
415-973-2636
[email protected]
Lead Attorney
415-973-6976
[email protected]
Asst. Case Manager
415-973-1140
[email protected]
For additional information and questions regarding PG&E’s
2014 GRC, please contact [email protected]
75
Appendix
Gas Distribution 76
Testimony Location Changes from 2011 GRC
Topic
Location in 2011 GRC
Location in 2014 GRC
Gas Distribution (GD)
Combined with Electric Distribution
Separate GD Exhibit
GD Policy and Introduction
Combined with Electric Distribution
GD Exhibit (Ch. 1)
GD Expense
Single Chapter
Various Chapters (2-7 and 9-12)
GD Capital Expenditures
Single Chapter
Various Chapters (2, 5, 7, 8, 9, 11, 12)
Gas Mapping
Combined with Electric Mapping
Separate Chapter in GD Exhibit (Ch. 3)
Gas Service
Representatives (GSRs)
Customer Care Exhibit
GD Exhibit (Ch. 7)
GD New Business and
Work at the Request of
Others
Combined with Electric Distribution
Separate Chapter in GD Exhibit (Ch. 9)
GD Training
Combined with Electric Technical
Training
Separate Chapter in GD Exhibit (Ch. 10)
GD Technology Costs
Shared Services Exhibit
Separate Chapter in GD Exhibit (Ch. 11)
GD Building Costs
Shared Services Exhibit
Separate Chapter in GD Exhibit (Ch. 12)
Gas Distribution
Testimony Location Changes from 2011 GRC
Topic
Location in 2011 GRC
77
Location in 2014 GRC
Gas Distribution (GD)
Combined with Electric Distribution
Separate GD Exhibit
GD Policy and Introduction
Combined with Electric Distribution
GD Exhibit (Ch. 1)
GD Expense
Single Chapter
Various Chapters (2-7 and 9-12)
GD Capital Expenditures
Single Chapter
Various Chapters (2, 5, 7, 8, 9, 11, 12)
Gas Mapping
Combined with Electric Mapping
Separate Chapter in GD Exhibit (Ch. 3)
Gas Service
Representatives (GSRs)
Customer Care Exhibit
GD Exhibit (Ch. 7)
GD New Business and
Work at the Request of
Others
Combined with Electric Distribution
Separate Chapter in GD Exhibit (Ch. 9)
GD Training
Combined with Electric Technical
Training
Separate Chapter in GD Exhibit (Ch. 10)
GD Technology Costs
Shared Services Exhibit
Separate Chapter in GD Exhibit (Ch. 11)
GD Building Costs
Shared Services Exhibit
Separate Chapter in GD Exhibit (Ch. 12)
Electric Ops – Testimony Location Changes from 2011 GRC
Topic
Location in 2011 GRC
78
Location in 2014 GRC
Electric Distribution (ED)
Combined with Gas Distribution
Separate ED Exhibit
ED Policy and Introduction
Combined with Gas Distribution
ED Exhibit (Ch. 1)
ED Technology Costs
Shared Services Exhibit
Separate Chapter in ED Exhibit (Ch. 2,
small amount in Ch. 11)
ED Research,
Development and
Demonstration
Separate Chapter
Not included in 2014 GRC
Electric Mapping
Combined with Gas Mapping
Separate Chapter in ED Exhibit (Ch. 4)
ED New Business and
Work at the Request of
Others
Combined with Gas Distribution
Separate Chapter in ED Exhibit (Ch. 9)
Electric Service Related
Work (GSRs and
Troublemen)
Customer Care Exhibit
ED Exhibit (Ch. 11)
LED Streetlight Program
Combined with Electric Distribution
Maintenance
Separate Chapter in ED Exhibit (Ch. 19)
79
Electric Ops – Testimony Location Changes from 2011 GRC
Topic
Location in 2011 GRC
Location in 2014 GRC
Operations Support
Separate Chapter
Not included in 2014 GRC
Escalation Offset
Not included in 2014 GRC
Included in ED Exhibit (Ch. 20)
Miscellaneous Tools &
Equipment (MWC 05)
Combined with Electric Reliability
Included in ED Exhibit (Ch. 20)
ED Training
Combined with Gas Technical
Training
Included in ED Exhibit (Ch. 20)
ED Building Costs
Shared Services Exhibit
Included in ED Exhibit (Ch. 20)
Customer Care - Testimony Location Changes from 2011 GRC
2011 GRC Customer Care Chapter:
1
2
3
4
5
2014 GRC Customer Care Chapter:
1
Customer Care Policy
1
Customer Care Policy
2
Customer Inquiry Assistance
2
Customer Inquiry Assistance
3
Office Services
3
Office Services
8
Meter to Cash
4
Meter To Cash
5
Field Services and Dispatch and Scheduling 1
5
Metering
6
Meter Purchase and Maintenance
7
Read and Investigate Meters
15
Quality Assurance Standard/Safety Net Reporting
6
Quality Assurance Program/Safety Net Program
4
Customer Engagement
7
Customer Energy Solutions (CES)
8
Customer Retention
9
Information Technology Programs4
10
SmartMeter ™ Program
11
Accessibility Improvements6
Development 2
9
Customer Retention and Economic
10
Demand – Side Management
11
Clean Air Transportation3
12
Non-Tariffed Products and Services
9
Customer Retention and Economic Development 2
13
SmartMeter TM Program
14
Direct Access and Community Choice Aggregation Service Fees 5
In 2014, Field Metering Operations is included in Metering/ Chapter 5. The remainder of activities previously in Field Services Dispatch and
Scheduling are now included in Exhibit (PG&E-3) Gas Distribution.
In 2014, Economic Development is included as part of CES/Chapter 7, and Customer Retention is a separate chapter- Chapter 8.
In 2014, Clean Air Transportation has been divided between CES/ Chapter 7 and Exhibit (PG&E-7) Shared Services and IT
In 2011, Customer Care Information Technology costs were included as part of the Information Technology Chapter of Exhibit (PG&E-7).
Direct Access and Community Choice Service Fees have been addressed in a separate proceeding.
80
Shared Services
Testimony Location Changes from 2011 GRC
Topic
Location in 2011 GRC
Location in 2014 GRC
Forecast for Shared
Services IT Programs
Shared Services IT Exhibit
(PG&E-7) Chapter 2
Rationale and forecast included in
various Shared Services chapters
Exhibit (PG&E-7) Chapters 2-6
Forecast for Lines of
Business’ initiated CRE
projects
Shared Services CRE Exhibit
(PG&E-7) Chapter 6
Various Lines of Business Exhibits
Safety Health & Claims
Costs
Administrative and General
Expenses Exhibit (PG&E-6) Chapter
2
Shared Services
Exhibit (PG&E-7) Chapter 2
Supplier Diversity Costs
Administrative and General
Expenses Exhibit (PG&E-6) Chapter
15
Shared Services
Exhibit (PG&E-7) Chapter 5
81
Information Technology
Testimony Location Changes from 2011 GRC
Topic
Location in 2011 GRC
Location in 2014 GRC
Gas Operations
Exhibit (PG&E - 3), Chapter 11
Electric Distribution
Exhibit (PG&E - 4), Chapters 2 & 11
Customer Care
Exhibit (PG&E - 5), Chapter 9
Hydro
Exhibit (PG&E - 6), Chapter 2
Nuclear
Exhibit (PG&E - 6), Chapter 3
Energy Procurement
Exhibit (PG&E - 6), Chapter 5
Safety Department
Exhibit (PG&E - 7), Chapter 2
Transportation Services
Exhibit (PG&E - 7), Chapter 3
Supply Chain - Materials Logistics and Planning
Exhibit (PG&E - 7), Chapter 2
82
Exhibit (PG&E - 7), Chapter 4
Supply Chain - Sourcing Operations
Exhibit (PG&E - 7), Chapter 5
Corporate Real Estate
Exhibit (PG&E - 7), Chapter 6
Environmental Program
Exhibit (PG&E - 7), Chapter 7
Finance
Exhibit (PG&E - 9), Chapter 2
Risk & Audit
Exhibit (PG&E - 9), Chapter 3
Human Resources
Exhibit (PG&E - 9), Chapter 4
Regulatory Relations
Exhibit (PG&E - 9), Chapter 5
Law
Exhibit (PG&E - 9), Chapter 6
Corp Affairs - Communications
Exhibit (PG&E - 9), Chapter 8
October 3, 2012
Administrative & General
Testimony Location Changes from 2011 GRC
2011 GRC Topic
Expense forecasting process (A&G Study)
Location in 2014 GRC
Now covered in two chapters
• Chapter 1: Introduction.
• Chapter 10: A&G Ratemaking Adjustments
Controller’s Department Costs and
Tax Department Costs
Now covered in Finance Organization chapter
Corporate Relations Department Costs and
Public Affairs Department Costs
Now covered in Corporate Affairs chapters:
Safety Health & Claims Costs
Now described in Exhibit (PG&E-7), Shared
Services and Information Technology
HR Policies and Benefits
Now described in Exhibit (PG&E-8), Human
Resources Policies
(Chapter 2)
• Chapter 8: Communications
• Chapter 9: External Affairs
83

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