Section 740.5 Of Article 2. Rates From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 2.
740.5
. (a) For purposes of this section, "21st Century Energy
System Decision" means commission Decision 12-12-031 (December 20,
2012), Decision Granting Authority to Enter Into a Research and
Development Agreement with Lawrence Livermore National Laboratory for
21st Century Energy Systems and for costs up to $152.19 million, or
any subsequent decision in Application 11-07-008 (July 18, 2011),
Application of Pacific Gas and Electric Company (U39M), San Diego Gas
and Electric Company (U902E), and Southern California Edison Company
(U338E) for Authority to Increase Electric Rates and Charges to
Recover Costs of Research and Development Agreement with Lawrence
Livermore National Laboratory for 21st Century Energy Systems.
(b) In implementing the 21st Century Energy System Decision, the
commission shall not authorize recovery from ratepayers of any
expense for research and development projects that are not for
purposes of cyber security and grid integration. Total funding for
research and development projects for purposes of cyber security and
grid integration pursuant to the 21st Century Energy System Decision
shall not exceed thirty-five million dollars ($35,000,000). All cyber
security and grid integration research and development projects
shall be concluded by the fifth anniversary of their start date.
(c) The commission shall not approve for recovery from ratepayers
those program management expenditures proposed, commencing with page
seven, in the joint advice letter filed by the state's three largest
electrical corporations, Advice 3379-G/4215-E (Pacific Gas and
Electric Company), Advice 2887-E (Southern California Edison
Company), and Advice 2473-E (San Diego Gas and Electric Company),
dated April 19, 2013. Project managers for the 21st Century Energy
System Decision shall be limited to three representatives, one
representative each from Pacific Gas and Electric Company, Southern
California Edison Company, and San Diego Gas and Electric Company.
(d) The commission shall require the Lawrence Livermore National
Laboratory, as a condition for entering into any contract pursuant to
the 21st Century Energy System Decision, and Pacific Gas and
Electric Company, Southern California Edison Company, and San Diego
Gas and Electric Company to ensure that research parameters reflect a
new contribution to cyber security and that there not be a
duplication of research being done by other private and governmental
entities.
(e) (1) The commission shall require each participating electrical
corporation to prepare and submit to the commission by December 1,
2013, a joint report on the scope of all proposed research projects,
how the proposed project may lead to technological advancement and
potential breakthroughs in cyber security and grid integration, and
the expected timelines for concluding the projects. The commission
shall, within 30 days of receiving the joint report, determine
whether the report is sufficient or requires revision and, upon
determining that the report is sufficient, submit the report to the
Legislature in compliance with Section 9795 of the Government Code.
(2) The commission shall require each participating electrical
corporation to prepare and submit to the commission, by 60 days
following the conclusion of all research and development projects, a
joint report summarizing the outcome of all funded projects,
including an accounting of expenditures by the project managers and
grant recipients on administrative and overhead costs and whether the
project resulted in any technological advancements or breakthroughs
in promoting cyber security and grid integration. The commission
shall, within 30 days of receiving the joint report, determine
whether the report is sufficient or requires revision and, upon
determining that the report is sufficient, submit the report to the
Legislature in compliance with Section 9795 of the Government Code.
(3) This subdivision shall become inoperative on January 1, 2023,
pursuant to Section 10231.5 of the Government Code.