2. Background

In 2006, the Commission authorized its Executive Director to hire and manage one or more contractors to provide technical and other support to assist Commission staff address certain renewables portfolio standard (RPS) tasks. (Decision (D.) 06-10-050.) We did this to ensure that the Commission could be responsive to the needs of load serving entities (LSEs), in order for the LSEs to accomplish RPS program goals by 2010 and advance the public interest.

We provided that approved invoices would be sent to Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company for payment of consultant costs on a proportional basis. We authorized each of the three investor owned utilities (IOUs) to establish a Renewables Portfolio Standard Costs Memorandum Account (RPSCMA) to record these costs upon payment through December 31, 2010. We limited the total billable amount to $400,000 annually, or a total of about $1.6 million, to be recovered from ratepayers via rates.¹

The contracted work requires input from the California Independent System Operator (CAISO). The CAISO is actively engaged in developing that information.

¹ The decision authorizing these additional resources was issued on October 23, 2006. Assuming the consultants were first hired in 2007, and costs were paid through 2010, the project was limited to $400,000 per year for 4 years, or a total of $1.6 million.