5. Schedule, Initial Comments

Since the local component of the RA program was first implemented, the Commission has determined that the annual compliance cycle should begin with issuance of a decision each June that establishes local procurement obligations for the following calendar year. Although the Commission may consider changes to the RA compliance calendar in this proceeding, prudence dictates that we plan at least initially to continue with the existing calendar. Accordingly, we establish Phase 1 of this proceeding to address LCRs and establish local procurement obligations for 2013 and to consider those RA program refinement issues that the assigned Commissioner deems appropriate for inclusion in Phase 1. Subject to further order of the Commission or determination by the assigned Commissioner, the target date for issuance of a decision that concludes Phase 1 is June 2012.¹ We expect Phase 2 to address LCRs and establish local procurement obligations for 2014 and to consider those RA program refinement issues that the assigned Commissioner deems appropriate for inclusion in Phase 2. Subject to further order of the Commission or determination by the assigned Commissioner, the target date for issuance of a decision that concludes Phase 2 is June 2013. We anticipate that the Phase 2 decision will make a determination whether to continue or close the proceeding.

To assist the assigned Commissioner in preparation of the scoping memo, we will provide for the filing of initial comments and replies per the schedule below. Comments should address the following:

· Identification of the party and interest of the party in this proceeding. (See Rule 1.4(b).)

· Any objections to or recommendations regarding this order's determinations as to categorization of the proceeding as ratesetting, the need for hearing, issues to be considered, or scheduling. (See Rule 6.2.)

· Priorities of issues to be considered, including recommendations for which issues should be taken up in Phase 1 (June 2012 target date for Commission decision) and which issues should be considered in Phase 2 (June 2013 target date for Commission decision).

· Scheduling issues and concerns.

The preliminary Phase 1 schedule, set forth below, is adapted from previous RA proceedings. It will be further developed and modified as determined to be necessary and appropriate by the assigned Commissioner, based upon initial comments.

Phase 1 Schedule

* Dates for those components of the LCR study and review process that are administered by the CAISO will be determined by the CAISO in consultation with the Commission's Energy Division.

This proceeding will conform to the statutory case management deadline for ratesetting matters set forth in Pub. Util. Code § 1701.5. In particular, it is our intention to resolve all relevant issues within 24 months of the date of the assigned Commissioner's Scoping Memo for each phase. In using the authority granted in § 1701.5(b) to set a time longer than 18 months, we consider the number and complexity of the tasks, the need to coordinate with other proceedings, and the need to coordinate with the processes and role of the California Energy Commission and the CAISO.

¹ It may be appropriate to establish an expedited procedural track within Phase 1 to address standard capacity product integration issues.