2. Procedural Background

This decision completes the second of three procedural tracks that were established for Phase 2 of this resource adequacy (RA) proceeding.¹ The Phase 2 Scoping Memo identified eight topics for consideration in Track 2, summarizing them as follows:

a. Centralized capacity market, bilateral trading, and alternative market design

b. Registration/tagging for RA capacity

c. Multi-year forward commitment time horizons

d. [Load-serving entity (LSE)] opt-out from cost allocation mechanism (D.06-07-029)

e. Coordination of RA program with [the California Independent System Operator Corporation's (CAISO's) Market Redesign and Technology Update (MRTU)] as necessary

f. Procurement obligations for resource mix and ancillary services

g. Market power mitigation

h. Planning Reserve Margin (Phase 2 Scoping Memo at 17.)

In this decision we examine proposals that focus on topics a, c, and d. Market power mitigation is considered in the context of our evaluation of the other topics, not as a stand-alone issue. We are considering the planning reserve margin (PRM) in a separate proceeding (Rulemaking (R.) 08-04-012). Other topics were, or will be, addressed elsewhere.

Pursuant to the schedule and procedure established by the Phase 2 Scoping Memo and subsequent rulings by the assigned Commissioner and Administrative Law Judge (ALJ), the record for Track 2 was developed through filed proposals, stakeholder meetings and workshops facilitated by the Commission's Energy Division, an Energy Division report on Track 2 issues (Staff Report) prepared in collaboration with the CAISO,² a supplemental staff report, motions to supplement the record, and pre- and post-workshop comments. The following table summarizes this process:

Development of the Track 2 Record

Initial proposals filed	March 30, 2007
Energy Division-facilitated stakeholder meeting	April 25, 2007
Pre-workshop comments filed	May 18, 2007
Pre-workshop reply comments filed	July 13, 2007
New/updated proposals filed	August 3, 2007
Energy Division-facilitated workshops	August 15, 20-22, and 27-28, 2007
Energy Division Staff Report on Track 2 Issues released	January 18, 2008
Post-workshop comments filed	February 29, 2008
Post-workshop reply comments filed	March 14, 2008
Motions to supplement the record granted by amended Phase 2 Scoping Memo	June 17, 2008
Energy Division-facilitated workshops	August 22 and 25, 2008
Motion to supplement the record granted by ALJ Ruling	August 6, 2008
Supplemental Staff Report issued	September 17, 2008
Comments on supplemental staff report filed	October 1, 2008
Reply comments on supplemental staff report filed	October 8, 2008

As detailed in the following table, which lists the parties and indicates the acronyms used in this decision to identify parties, 31 parties or party coalitions filed a total of 90 documents containing Track 2 proposals and/or comments.

Parties Filing Track 2 Proposals and/or Comments

Filing Party or Parties For party groups, the parties listed below did not, in all cases, participate in each of the filings of the group	Acronym or Title for Party or Party Group	Initial Proposals 3/30/07	Pre-workshop comments 5/18/07	Pre-workshop reply comments 7/13/07	New/ updated proposals 8/03/07	Post-workshop comments 2/29/08	Post-workshop reply comments 3/14/08	Supp. comments 10/01/08	Supp. reply comments 10/08/08
Aglet Consumer Alliance	Aglet	X	X	X	X	X	X	X	X
Alliance for Retail Energy Markets	AReM	X	X	X		X	X	X
Bilateral Trading Group (APS Energy Services, California Electricity Oversight Board, California Large Energy Consumers Association, California Manufacturers & Technology Association, City and County of San Francisco, Shell Energy North America (US), L.P., DRA, Energy Users Forum, J. Aron & Company, TURN, and Direct Energy, LLC.)	BTG	X	X	X		X	X	X
Cogeneration Association of California	CAC	X
California Independent System Operator Corporation	CAISO	X				X	X	X	X
Calpine Corporation	Calpine	X				X	X	X	X
California Forward Capacity Market Advocates (FPL Energy, NRG Energy, Reliant Energy, SCE, and SDG&E	CFCMA		X	X	X	X	X	X	X
Capacity Market Advocacy Group (Commerce Energy, Constellation Energy Commodities Group, Inc, Edison Mission Energy, FPL Energy Project Management, Mirant Corporation, Reliant Energy, Inc, SCE, and SDG&E)	CMAG	X
California Municipal Utilities Association	CMUA					X
Complete Energy Holdings LLC	Complete Energy					X			X
Constellation Energy Commodities Group, Inc., Constellation NewEnergy, Inc., and Constellation Generation Group, LLC	Constellation	X	X	X	X	X	X	X
Coalition of California Utility Employees	CUE		X			X		X
Division of Ratepayer Advocates	DRA	X

Filing Party or Parties For party groups, the parties listed below did not, in all cases, participate in each of the filings of the group	Acronym or Title for Party or Party Group	Initial Proposals 3/30/07	Pre-workshop comments 5/18/07	Pre-workshop reply comments 7/13/07	New/ updated proposals 8/03/07	Post-workshop comments 2/29/08	Post-workshop reply comments 3/14/08	Supp. comments 10/01/08	Supp. reply comments 10/08/08
Dynegy Morro Bay LLC, Dynegy Moss Landing LLC, Dynegy South Bay, LLC, and Dynegy Oakland LLC	Dynegy						X	X	X
Electricity Consumers Resource Council	ELCON	X
Ice Energy, Inc.	Ice Energy					X
Independent Energy Producers Association	IEP	X	X			X	X	X
Constellation; SDG&E; AES Southland, LLC; Calpine; CFCMA; Complete Energy; Dynegy; IEP; Mirant; and Sempra Global	N/A						X
AReM; AES Southland, LLC; CFCMA; Complete Energy; Constellation; Dynegy; IEP; LS Power Associates, LP; Mirant; and Sempra Global	N/A								X
Kinder Morgan Energy Partners, L.P.	Kinder Morgan					X
Mirant California LLC, Mirant Delta LLC, and Mirant Potrero LLC	Mirant	X	X			X			X
Morgan Stanley Capital Group, Inc.	Morgan Stanley		X
NRG Energy, Inc.	NRG	X	X
Pacific Gas and Electric Company	PG&E	X	X	X	X	X	X	X	X
PPM Energy	PPM Energy	X
Reliant Energy, Inc.	Reliant/RRI	X	X
Southern California Edison Company	SCE	X	X
San Diego Gas & Electric Company	SDG&E	X
Sempra Global	Sempra Global					X
The Utility Reform Network	TURN						X
Western Power Trading Forum	WPTF					X

¹ See Assigned Commissioner's Ruling and Scoping Memo for Phase 2 (Phase 2 Scoping Memo), issued December 22, 2006. Track 1 addressed RA program implementation for the 2008 compliance year and was concluded by Decision (D.) 07-06-029. Track 3 addresses how the RA program will be extended to small and multi-jurisdictional LSEs. On June 17, 2008 the Assigned Commissioner issued an amended scoping memo for Phase 2 (Amended Phase 2 Scoping Memo). The statutory deadline for resolving the proceeding was extended by the Commission in several decisions.

² Although the CAISO collaborated with our Energy Division staff in the preparation of the Staff Report, the CAISO maintained its party status and did not participate in the Commissions deliberations.