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1 In the Energy Action Plan II (2005), the CPUC and CEC called for the examination of a 33% RPS. The CEC, through the 2008 Integrated Energy Policy Report (IEPR) Update, makes various recommendations pertaining to a 33% RPS. The CEC and CPUC supported a greater reliance on renewable energy so that at least 33% of the State's electricity needs are met by renewable resources by 2020 in their October 2008 decision recommending greenhouse gas regulatory strategies for the electric sector.

2 Except for one limited category of transmission interconnecting individual generators to the grid, which would apparently continue to be permitted by the California Energy Commission.

3 The California Legislative Counsel has determined that "[B]ecause the California Constitution confers the function of public utility regulation on the commission, the Governor is precluded from transferring the statutory and constitutional authority of the commission that relates to the regulation of public utilities to any other entity of state government pursuant to the Governor's statutory authority to reorganize state government." (Legislative Counsel letter to Little Hoover Commission, June 20, 2005, p. 3.) Similarly, constitutionally-granted powers of the CPUC cannot be modified, curtailed, or abridged by legislation. (People v. Western Air Lines, Inc. (1954), 42 Cal. 2d 621, 637, citing Western Assn. etc. R.R. v. Railroad Com. (1916), 173 Cal. 802, 804.)

4 If the RIA would actually own a new transmission facility, that facility might not be subject to the same extent of FERC jurisdiction as public utility-owned transmission. However, this would complicate "seams" issues reflecting the contrasting jurisdictional and operational models for the CAISO's independently operated grid versus neighboring transmission systems owned by municipal or federal entities. If, more consistent with AB 64's emphasis on centralization of decisions, any RIA-owned transmission were to become part of the CAISO-operated system, then it would be fully subject to FERC jurisdiction regarding planning, cost recovery and other matters

5 Transmission projects must ultimately go to FERC for approval of rates and cost recovery, where the CPUC, within its retail ratemaking role, represents the interests of California consumers and other market participants.

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