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ALJ/VSK/jt2 Date of Issuance 5/13/2010


Order Instituting Rulemaking to Integrate and Refine Procurement Policies and Consider Long-Term Procurement Plans.



MAY 6, 2010


RULEMAKING 10-05-006


Table of Contents

10. Public Advisor 2626

11. Intervenor Compensation 2626

12. Ex Parte Communications 2727

Appendix A - Load-Serving Entities as Defined in Section 380(j)


1. Summary

We open this rulemaking to continue our efforts to ensure a reliable and cost-effective electricity supply in California through integration and refinement of a comprehensive set of procurement policies, practices and procedures underlying long-term procurement plans. This is the forum in which we shall consider the Commission's electric resource procurement policies and programs and how to implement them.

This Order establishes a multi-track proceeding separately addressing several issues. In one track, we shall consider adoption of "bundled" procurement plans1 pursuant to AB 57 (Stats. 202, ch. 83, Sec. 3) (codified as Pub. Util. Code §454.5.)2 for the three major electric IOUs (Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison) to authorize their procurement needs for their bundled customers.

In a separate but concurrent track of the proceeding, we shall consider issues related to the overall long-term need for new system and local reliability resources, including adoption of "system" resource plans3 for each of these three utilities' service area that will inform the next available cycle of bundled procurement plans. These resource plans will allow the Commission to comprehensively consider the impacts of state energy policies on the need for new resources.

Lastly, we shall also consider a number of rule and policy issues related to procurement plans within a third track.

While the three tracks shall be conducted concurrently, any interim decisions and rulings from one track may inform future activities in the other tracks as described below.

All resource and procurement planning in this proceeding will be done in the context of the Energy Action Plan II (EAP II)4 and other state energy policies.

1 We define "bundled" as pertaining to an investor-owned utility's (IOU's) load and resources in its role as a Load Serving Entity (LSE). To distinguish filings related to bundled Assembly Bill (AB) 57 obligations from separate filings related to system reliability needs, we will refer to these as "procurement plans."

2 Unless otherwise stated, all references to code sections are to the Public Utilities Code.

3 We define "system" as pertaining to the loads and resources in each IOUs' service area. "Service area" generally corresponds to the IOUs' respective distribution service territories, inclusive of bundled, direct access, and community choice aggregator loads, but exclusive of embedded publicly-owned utility loads. To distinguish filings related to system reliability needs from bundled AB 57 procurement plans, we will refer to these as "resource plans."

4 EAP I was issued jointly on May 8, 2003, by the Commission, the California Energy Commission and the California Consumer Power and Conservation Financing Authority. EAP I was updated with the adoption of EAP II, as a joint policy plan of the CPUC and the CEC, in October 2005. See www.energy.ca.gov/energy_action_plan/2005-09-21_EAP2_FINAL.PDF.

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