Calif. Scoping Ruling: "No Basis" at this Time to Exclude ESPs from Smart Grid Privacy Rules

"[T]here is no basis at this time to doubt that the Commission has authority to adopt privacy rules for either ESPs [electric service providers] or CCAs [community choice aggregators]," California PUC President Michael Peevey said in a scoping ruling concerning smart grid privacy standards, though a final determination will be made at the conclusion of a rulemaking.

In July (7/29), the PUC adopted a decision which, among other things, established policies and procedures for the electric investor-owned utilities to follow regarding the privacy and security of customer usage data generated by smart meters. As previously reported, that decision specifically excluded ESPs and CCAs from the standards, leaving the applicability of the privacy rules to such entities to a future proceeding.

Peevey's ruling, which initiates Phase II of Rulemaking 08-12-009, outlines how the PUC will answer this question, in considering how the Rules Regarding Privacy and Security Protections for Energy Usage Data in Attachment D of D.11-07-056 and other requirements of D.11-07-056 should apply to gas corporations, CCAs, and ESPs.

Peevey noted that there are essentially two sets of issues for Phase II: whether any of the non-electric IOU entities (including ESPs and CCAs) should be subject to the privacy rules; and, if so, should they be subject to the same rules, or a modified version of the rules.

Retail suppliers have argued that SB 1476, which explicitly addresses smart grid data issues for gas and electric utilities, does not apply to ESPs.

Peevey's ruling notes, however, that Pub. Util. Code § 394.4, "gives the Commission broad authority to protect confidential customer data provided to ESPs."

Similarly, Pub. Util. Code § 366.2(c)(4)(D) gives the Commission broad authority to establish rules pertaining to CCAs, Peevey said.

"Although a more detailed analysis of this authority can await parties' comments, there is no basis at this time to doubt that the Commission has authority to adopt privacy rules for either ESPs or CCAs," Peevey held.

Peevey excluded from the scope of the proceeding whether "community aggregators," which are distinct from CCAs and operate under different statutory authority, are subject to the privacy rules.

A workshop on issues related to ESPs and CCAs was scheduled for November 16.

Peevey's procedural schedule contemplates a proposed decision in April 2012 with a final order excepted in June 2012.