4. Scope of This Proceeding

This Commission supports the review and possible adoption of viable, cost-effective energy storage technologies because they may provide a strategy for meeting the state's long-term clean energy goals while maintaining system reliability.

The purpose of this proceeding is to: (1) review, analyze and establish, if appropriate, opportunities for the development and deployment of energy storage technologies throughout California's electricity system; (2) remove or lessen any barriers to such development and deployment; (3) review and weigh the associated costs and benefits of such development and deployment; and, (4) establish how those costs and benefits should be distributed.

On July 9, 2010, the Commission's Policy and Planning Division issued a white paper entitled, Electric Energy Storage: An Assessment of Potential Barriers and Opportunities. This white paper, which is appended to this order instituting rulemaking (OIR) as Attachment A, provides a starting point for shaping the issues to be considered in this rulemaking.

Because AB 2514 provides broad discretion to the Commission, we request parties provide us with their views of the issues to be addressed in this proceeding before we establish a precise scope. Accordingly, other than the guidance herein, we are not providing a preliminary scoping of the issues to be explored in this proceeding at this time. Rather we shall direct the parties to file initial comments responding to the guidance in this OIR and the Policy and Planning Division's white paper, which, together with an initial workshop, will serve as the basis for a future detailed scope of this proceeding.

4.1. Preliminary Schedule

The preliminary schedule for this proceeding shall be as follows:

By January 21, 2011, parties shall file comments that will identify the facts and issues of laws that they believe to be relevant to this proceeding's scope as guided by the directions and comments in this OIR and staff's white paper. The Comments should also: identify the party and interest of the party in this proceeding (see Rule 1.4(b) of the Commission's Rules of Practice and Procedure (Rules)); raise any objections to or recommendations regarding this order's determinations as to categorization of the proceeding as quasi-legislative, the need for hearing, issues to be considered, or scheduling (see Rule 6.2); and, identify any other procedural or substantive issues parties believe to be relevant.

In the first quarter of 2011, Commission staff shall convene a workshop at which key stakeholders shall have the opportunity to present their views regarding the opportunities for development and deployment of energy storage technologies, the obstacles to such development and deployment, the costs and benefits of such development and deployment, and how those costs and benefits should be distributed.

Based on the parties' filings and the information presented at the workshop, the assigned Commissioner or the Administrative Law Judge shall develop a Preliminary Ruling, specifying the particular topics on which additional information and input from the parties will be solicited.

Following the issuance of this Preliminary Ruling, we anticipate holding a prehearing conference (PHC) to address scoping and scheduling issues. Shortly thereafter, the assigned Commissioner will issue a scoping memo setting forth the scope of the proceeding and establishing a procedural schedule.

Subsequent to the issuance of such a scoping memo, we expect that additional workshops and filed comments will be required to establish a full record.

4.2. Proceeding Category and Need for Hearing

Rule 7.1(d) of the Commission's Rules specifies that an OIR will preliminarily determine the category of the proceeding and the need for hearing. We determine that this proceeding is quasi-legislative as defined in Rule 1.3(d). While it appears that the issues may be resolved through comments and workshops without the need for evidentiary hearings, a final determination on the need for hearings will be made in the assigned Commissioner's scoping memo.