VIII. Next Steps

In this decision, we adopt the long-term regulatory framework under which each utility will conduct integrated resource planning, to include a resource adequacy requirement and market structure rules. We also adopt modified short-term procurement plans, a revised ERRA procedural process, and direct Energy Division to hire a consultant to perform a CRT study.

We expect to complete all outstanding matters in this rulemaking by the end of May 2004. The outstanding matters are (1) the October 7, 2003 motion of SDG&E for approval to enter into new contracts resulting from its Grid Reliability Capacity RFPs; and (2) the resource adequacy workshops scheduled in Section IV.A of this decision that are needed for the utilities to file revised 2004 long-term plans.

We should open a new procurement rulemaking in the second quarter of 2004 that specifically addresses the additional procurement issues we identify here: (1) the need to develop procurement incentive mechanisms for each utility; (2) the need to develop a long-term policy for expiring QF contracts; (3) review of the management audits of SDG&E's and PG&E's electric procurement transactions with their regulated affiliates; (4) handling resource adequacy issues not addressed in the workshop process; and (5) review and adoption of revised 2004 long-term procurement plans for the three utilities. We expect to open this new procurement OIR in the second quarter of 2004.