ALJ/AES/hl2 Mailed 7/27/2005

Decision 05-07-039 July 21, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Implement the California Renewables Portfolio Standard Program.

Rulemaking 04-04-026 (Filed April 22, 2004)

OPINION APPROVING PROCUREMENT PLANS AND
REQUESTS FOR OFFERS FOR 2005 RPS SOLICITATIONS

I. Summary 22

II. Procedural History 22

III. Discussion 33

A. Overview of Utility Plans 33

1. PG&E 33

2. SCE 44

3. SDG&E 55

B. Fundamental issues 66

1. Resource "Stacks" 66

2. Transmission Constraints, Delivery Points, and
Curtailability 77

3. Compliance 1111

C. Common Issues in 2005 Plans and RFOs 1515

1. Proposals that Include Utility Ownership 1515

2. Bid Deposits 1616

3. CAISO Market Redesign Contingencies 1717

4. Miscellaneous Contracting Issues 1818

D. Individual utility plans 1919

1. PG&E 1919

2. SCE 2020

3. SDG&E 2323

E. Reporting 2626

F. Next Steps for 2005 2929

G. Procurement planning in 2006 2929

IV. Assignment of Proceeding 3030

V. Comments on Draft Decision 3030

Findings of Fact 3636

Conclusions of Law 3939

ORDER 4141

I. Summary

We approve, with additions, the procurement plans and draft requests for offers (RFOs) for the 2005 solicitation for the Renewables Portfolio Standard (RPS) program submitted by Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). We also clarify the requirements for reporting on RPS compliance.