VI. Assignment of Proceeding
Dian Grueneich is the assigned Commissioner and Julie Halligan is the assigned ALJ in this proceeding.
1. The provisions of § 399.25 apply to applications for transmission line construction subject to the Commission's siting jurisdiction, either network or gen-tie, that are deemed necessary to facilitate the achievement of the RPS goals.
2. A finding of "network benefits" pursuant to § 399.25(b)(1) is not a prerequisite for backstop cost recovery under § 399.25(b)(4); the two provisions on the code function independently of one another.
3. High voltage, bulk-transfer transmission facilities, whether classified as network or gen-tie, that are designed to serve multiple RPS-eligible generators where it has been established that the amount of added transmission capacity will likely be utilized by RPS-eligible generation projects within a reasonable period of time are eligible for § 399.25 cost recovery.
4. New transmission facilities needed to interconnect on RPS-eligible resource whose developer has entered into a Commission-approved power purchase agreement are eligible for § 399.25 cost recovery.
5. To protect ratepayers from the risk associated with unnecessary facilities, we do not anticipate finding gen-tie facilities to be necessary to facilitate the achievements of the RPS goals absent at least one approved RPS contract.
6. Costs associated with renewable transmission facilities to be recovered from retail ratepayers pursuant to §399.25 should not be recovered through distribution rates.
1. The Commission's ability to authorize retail rate recovery of transmission upgrade costs pursuant to § 399.25(b)(4) does not interfere with the FERC's jurisdiction over transmission ratemaking such that it would be preempted by federal law.
2. The Commission does not have the authority to require transmission owners to provide up-front funding for transmission upgrades.
3. In order to proceed as expeditiously as possible with the implementation of § 399.25, this decision should be effective today.
IT IS ORDERED that:
1. The provisions of Section 399.25 apply to transmission facilities that come before the Commission in the form of a Certificate of Public Convenience and Necessity or Permit to Construct application and that are deemed necessary to facilitate the Renewable Portfolio Standard (RPS) goals through that process.
2. The provisions of § 399.25 apply to both "network" transmission facilities and high-voltage generation-tie (gen-tie) transmission facilities that are deemed necessary to facilitate the achievement of the RPS goals.
3. Transmission projects that meet the following criteria are eligible for § 399.25 cost recovery: (1) new high voltage, bulk-transfer, transmission facilities, whether classified as network or gen-tie, that are designed to serve multiple RPS-eligible generators where it has been established that the amount of added transmission capacity will be likely to be utilized by RPS-eligible generation projects with a reasonable period of time, and (2) transmission upgrades that are required to connect RPS-eligible resources with approved power purchase contracts.
This order is effective today.
Dated __________________, at San Francisco, California.
ATTACHMENT 1
LIST OF ACRONYMS AND ABBREVIATIONS
AB - Assembly Bill
ALJ - Administrative Law Judge
CAISO - California Independent System Operator
CalWEA - California Wind Energy Association
CEC - California Energy Commission
CEERT - Center for Energy Efficiency and Renewable Technologies
CEQA - California Environmental Quality Act
CPCN - Certificate of Public Convenience and Necessity
FERC - Federal Energy Regulatory Commission
GO - General Order
I. - Investigation
IEP - Independent Energy Producers
IOU - Investor-Owned Utility
PG&E - Pacific Gas and Electric Company
PTC - Permit to Construct
R. - Rulemaking
RPS - Renewable Portfolio Standard
SB - Senate Bill
SDG&E - San Diego Gas and Electric Company
SCE - Southern California Edison Company
TURN - The Utility Reform Network
(END OF ATTACHMENT 1)
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