2. Procedural Background

Phase 1 of this proceeding was concluded with the issuance of Decision (D.) 08-06-031 on June 27, 2008. The Assigned Commissioner's Phase 2 Ruling and Scoping Memo (Phase 2 Scoping Memo), issued on September 15, 2008, identified the issues to be considered in Phase 2 as well as the procedure and schedule for their consideration. Two broad categories of issues were established. The first category, local resource adequacy (RA) issues, pertains to the California Independent System Operator's (CAISO) 2010 local capacity requirements (LCR) study as well as this Commission's establishment of local procurement obligations for 2010 based on the LCR study. The second category, program refinement issues, pertains to various proposals to modify the RA program.

The Commission's Energy Division facilitated workshops on RA program refinement issues on October 6, 2008 and on January 22-23, 2009. In connection with the January workshops, parties were permitted to serve workshop proposals on January 9, 2009. Energy Division issued a workshop report on February 6, 2009. Comments on these issues were filed on February 17, 2009 by Alliance for Retail Energy Markets (AReM); CAISO; California Wind Energy Association, American Wind Energy Association, and Solar Alliance (CalWEA/AWEA/SA); California Large Energy Consumers Association (CLECA), Division of Ratepayer Advocates (DRA); Dynegy Morro Bay, LLC, Dynegy Moss Landing, LLC, Dynegy Oakland, LLC, and Dynegy South Bay, LLC (Dynegy); Large-Scale Solar Association (LSA); NRG Energy, Inc. (NRG); Pacific Gas and Electric Company (PG&E); Southern California Edison Company (SCE); San Diego Gas & Electric Company (SDG&E); Sempra Energy Solutions, LLC (SES); Sempra Generation; and The Utility Reform Network (TURN). AReM; CAISO; CalWEA/AWEA/SA; DRA; Dynegy; EnerNOC, Inc. (EnerNOC); LSA; PG&E; SCE; SDG&E; SES; and TURN filed replies on February 27, 2009.

On March 23, 2009, the Energy Division published a report (2008 Resource Adequacy Report) summarizing the RA program experience for 2008 with the intention of providing factual information relevant to current RA rulemakings, including this proceeding. By joint motion filed on April 14, 2009, SCE, PG&E, and TURN requested that the Energy Division's 2008 RA report be made a part of record. No responses were filed. We will grant the motion as the report provides information relevant to the issues in Phase 2.

Following a stakeholder process that began in 2008, on May 1, 2009, the CAISO posted its "2010 Local Capacity Technical Analysis, Final Report and Study Results" (2010 LCR Study) on its website, served notice of the report's availability, and filed it with the Commission. To accommodate the CAISO's LCR study schedule and associated stakeholder review process, the Phase 2 Scoping Memo deferred the dates for comments and reply comments on Local RA issues to May 8 and May 12, 2009, respectively. AReM and SCE filed comments regarding the LCR study and the establishment of local procurement obligations for 2010. Replies were filed by the CAISO, DRA, and PG&E.