2. Procedural Background

The Commission's Resource Adequacy program and requirements apply to all load serving entities (LSEs) under our jurisdiction. Certain small or
multi-jurisdictional LSEs are subject to different Resource Adequacy requirements which are more appropriate to their situations than those described in this order. A current list of LSEs subject to the requirements of this decision is found in Appendix A.

The Assigned Commissioner's Ruling and Scoping Memo (Scoping Memo), issued on December 23, 2009, identified the issues to be considered in Phase 1 of this proceeding 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) 2011 local capacity requirements (LCR) study as well as this Commission's establishment of local procurement obligations for 2011 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 December 14, 2009 and on January 27, 2010. In connection with the December workshops, parties were permitted to file workshop proposals on January 11, 2010. The Energy Division issued a workshop report on February 18, 2010. Comments on the Phase 1 issues discussed in the workshops were filed on March 12, 2010 by Alliance for Retail Energy Markets (AReM); Calpine Corporation; CAISO; California Wind Energy Association, California Wind Energy Association and the California Cogeneration Council (CalWEA/CCC); California Large Energy Consumers Association (CLECA), Cogeneration Association of California (CAC); Division of Ratepayer Advocates (DRA); Dynegy Morro Bay, LLC, Dynegy Moss Landing, LLC, Dynegy Oakland, LLC and Dynegy South Bay, LLC (Dynegy); EnerNOC, Inc. (EnerNOC); Independent Energy Producers Association; J.P. Morgan Ventures Enerty Corporation and BE CA LLC (J.P. Morgan); Mirant California, LLC and Mirant Delta, LLC (Mirant); Pacific Gas and Electric Company (PG&E); Southern California Edison Company (SCE); San Diego Gas & Electric Company (SDG&E); The Utility Reform Network (TURN); and the Western Power Trading Forum (WPTF). AReM; CAISO; CAC; CalWEA/CCC; Calpine Corporation; DRA; Dynegy; EnerNOC; North America Power Partners (NAPP); PG&E; SCE; SDG&E; and TURN filed replies on March 26, 2010. Sempra Energy Solutions (SES) and TURN also filed joint comments and reply comments.

Following a stakeholder process that began in 2008, on April 30, 2010, the CAISO posted its "2011 Local Capacity Technical Analysis, Final Report and Study Results" (2011 LCR Study) on its website, served notice of the report's availability, and filed it with the Commission on May 3, 2010. To accommodate the CAISO's LCR study schedule and associated stakeholder review process, the Scoping Memo deferred the dates for comments and reply comments on local
RA issues to May 10 and May 17, 2010, respectively. AReM and SDG&E filed comments regarding the LCR study and the establishment of local procurement obligations for 2011. Replies were filed by SCE and PG&E on May 17, 2010.