3. Three-Track Procurement Planning Proceeding

Based on the record in R.08-02-007, we have decided to establish separate tracks for different elements of the 2010 procurement planning cycle:

(1) Track I will identify California Public Utilities Commission (CPUC)-jurisdictional needs for new resources to meet system or local resource adequacy and to consider authorization of IOU procurement to meet that need, including issues related to long-term renewables planning and need for replacement generation infrastructure to eliminate reliance on power plants using once-through-cooling (OTC).

(2) Track II will address the development and approval of individual IOU "bundled" procurement plans consistent with §454.5.

(3) Track III will consider rule and policy changes related to the procurement process which were not resolved in R.08-02-007, as outlined in greater detail below.

This separation of issues into different tracks is intended to clarify jurisdictional differences, as well as to allow the IOUs' bundled procurement plans to be approved on a separate schedule, while robust analyses of system planning issues proceed on a separate track. The numerical ordering of these tracks is not intended to imply a priority ranking or a chronological order to their resolution.

Findings from the decision(s) in the system planning track (Track I) and/or rules track (Track III) are anticipated to feed into bundled procurement plans for the next available cycle, either Track II of the present proceeding or of a successor proceeding, depending upon the timing of decision(s) in Tracks I and III. We anticipate that any decisions in Tracks I and III adopted before the November 19, 2010 Commission meeting will inform Track II of the current proceeding, while any Tracks I and III decisions adopted after this date will not inform Track II of the current proceeding.¹⁸ Given the schedule for Track II noted below, this will allow one year to resolve Track II issues and avoid late changes to input assumptions that could cause significant slowdowns and the need to redo work that has already been completed.

Also, although we will endeavor to resolve as many issues as possible in Track III, resolution of all of the issues identified for consideration in Track III is not necessary for progress to continue on Tracks I and II.

¹⁸ All schedule dates may be revised by the Assigned Commissioner or ALJ as necessary to facilitate the efficient management of the proceeding.