II. Regulatory and Statutory Mandates Relating to DWR Power Procurement

(b) The department shall notify the commission of its revenue requirement pursuant to Section 80110.

3 The Governor's Proclamation was attached as Appendix A to Decision (D.) 01-01-061. 4 SB 7X authorized DWR activities only for a period of twelve days in January. 5 DWR had regularly engaged in electric purchase and sale activities in connection with the State Water Project for a number of years. In December 2000 it also apparently worked with the ISO to fund ISO electricity procurement activities on an informal basis, using State Water Project moneys. 6 The term "net short" came to be used to describe the difference between utility retail demand and the supply resources provided by the utility's own generation and committed power purchase contracts with qualifying facilities (QFs) and other suppliers.

7 Prior to commencing any program of power purchases DWR is required to "... assess the need for power in the state in consultation with the Public Utilities Commission and local publicly owned electric utilities and electrical corporations in the state and such other entities in the state as the department determines are appropriate." (Water Code Section 80100(f).)

8 Administrative costs are to be approved in the annual Budget Act. (Water Code Section 80200(c).)

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