9. Ex Parte Communications
Communications with decisionmakers and advisors in this rulemaking are governed by Article 8 of the Rules of Practice and Procedure. (See Rule 8.4(b), Rule 8.2(c), and Rule 8.3.)
IT IS ORDERED that:
1. In accordance with Rule 6.1 of the Rules of Practice and Procedure, the Commission institutes this rulemaking on its own motion to continue its efforts to ensure the availability of reliable and cost-effective electricity supply in California through implementation and administration of, and refinements to, its resource adequacy program. As indicated in Rule 6.1, this proceeding may result in the adoption, repeal, or amendment of rules, regulations, and guidelines that constitute the resource adequacy program, and may modify prior Commission decisions pertaining to the resource adequacy program that were adopted by rulemaking.
2. This is the successor proceeding to Rulemaking 09-10-032 with respect to implementation and administration of, and refinements to, the existing resource adequacy program. As to those matters, the record developed in that proceeding is available for consideration in this proceeding.
3. All load-serving entities as defined in Public Utilities Code Section 380(j) are named as respondents and are parties to this proceeding pursuant to Rule 1.4(d). Appendix B lists such entities as reflected in the Commission's records. Any error or omission in Appendix B shall not excuse any load-serving entity from respondent status.
4. Interested persons must follow the directions in Section 6 of this order instituting rulemaking to become a party or to be placed on the official service list as a non-party.
5. Initial comments on the issues identified in the foregoing discussion may be filed and are due November 7, 2011. Any person who objects to this order's determinations regarding categorization of the proceeding as ratesetting, the need for hearing, issues to be considered, or scheduling shall state such objections in their comments. (See Rule 6.2 of the Rules of Practice and Procedure.) Replies to such comments may be filed and are due November 21, 2011.
6. Any party that expects to claim intervenor compensation for its participation in this rulemaking shall file its notice of intent to claim intervenor compensation no later than 30 days from the date of this order.
7. The Executive Director shall cause this Order Instituting Rulemaking to be served on respondents and on the service list for Rulemaking 09-10-032.
8. The Phase 1 Schedule set forth in the foregoing discussion is hereby approved. The assigned Commissioner or the Administrative Law Judge may make any revisions to the scheduling determinations made herein as necessary to facilitate the efficient management of the proceeding.
This order is effective today.
Dated October 20, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
APPENDIX A
Candidate Issues and Topics Identified by the Energy Division
1. Local Capacity Requirements (LCR) and associated local procurement obligations - This proceeding will establish the LCR for 2013 and 2014.
2. Standard Capacity Product (SCP) - D.09-06-028 deferred final consideration of the SCP to this proceeding. Further, the Federal Energy Regulatory Commission has directed the California Independent System Operator (CAISO) to work toward extending the SCP to currently exempted resources. This proceeding will consider adoption of the SCP and any associated changes to the RA program.
3. Maximum Cumulative Capacity (MCC buckets) - In D.11-06-022 the Commission deferred discussion of the MCC buckets until this year's RA proceeding. The MCC buckets are currently based on load curves dating back to 2005. Further, D.11-10-003 created a new MCC bucket for Demand Response resources, to be determined in this proceeding.
4. Adjustments to the coincidence adjustment - In D.11-06-022, the Commission deferred to this proceeding consideration of a proposal by the Alliance for Retail Energy Markets, in order to study the issue more.
5. Review the plan for a non-generic capacity procurement requirement process to add resource operational characteristics such as regulation and ramping "load following" capabilities into the resource adequacy procurement requirements. CAISO will provide an annual cycle of studies and reports to inform load-serving entities' resource adequacy procurement. In addition, CAISO proposes that the Commission expand the five month year-ahead showing to a full years showing for the year-ahead procurement to support the evaluations and assessments of needed non-generic capacity.
6. On June 21, 2011, a Petition for Modification of D.10-06-036 (the Commission's Order adopting local procurement obligations for 2011 and further refining the RA program) was filed seeking a modification to the system peak demand definition to exclude weekends and holidays from the hours used to calculate the qualifying capacity of combined heat and power resources. This issue has been deferred to this proceeding
7. Qualifying Capacity rules for dynamically scheduled and pseudo tie resources are relatively unused classifications for resources that sell into the CAISO under specific market arrangements in CAISO tariff. It is necessary to nail down what the rules will be for this type of CAISO participating arrangement. Energy Division staff will present a staff proposal on this issue in this proceeding.
8. The Commission has initiated several recent policy activities that concentrate on Distributed Generation. These programs include, but are not limited to, the Renewable Auction Mechanism, the renewable Feed-in Tariff authorized under PU Code 399.20, and the AB 1613 CHP Feed-in Tariff. In light of the increased focus on distributed generation, the Commission recently launched R.11-09-011, to streamline the rules about distribution level interconnection. In light of the activity that docket, this Rulemaking will consider potential modifications to the qualifying capacity rules and deliverability guidelines.
9. In light of the passage of SB 2 1X which establishes a 33% Renewable Portfolio Standard, up to 20,000 MW of new renewable generation could be needed to be added to the system by 2020. The rules and implementation of 33% RPS will remain in R.11-05-005. Because a very large percentage of new generation procurement will need to be renewable, this docket will consider any updates to the RA rules or practices in order to account for differences in renewable procurement.
10. With the passage of AB 2514, the Commission opened R.10-12-007 to consider policies to promote the adoption of viable and cost-effective energy storage systems. In coordination with the policy developments in R.10-12-007, we will consider any technical updates to our RA rules such that flexible grid operational attributes (such as those provided by energy storage technologies) may receive accurate and correct placement within our RA program.
(END OF APPENDIX A)
APPENDIX B
Load-Serving Entities as Defined in Section 380(j)
Electrical Corporations
Gloria Britton (909)
Regulatory Affairs Manager
Anza Electric Co-Operative, Inc.
58470 Highway 371
Anza, CA 92539-1909
Wayne Amer (906)
President
Mountain Utilities
P. O. Box 205
Kirkwood, CA 95646
Brian Cherry (39)
Director, Regulatory Relations
Pacific Gas and Electric Company
P. O. Box 770000, B10C
San Francisco, CA 94177
Mark Tucker (901)
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
Robert Marshall, General Manager (908)
Plumas Sierra Rural Electric Coop.
73233 State Route 70
Portola, CA 96122
Steve Rahon (902)
Director, Tariff & Regulatory Accounts
San Diego Gas & Electric Company
8330 Century Park Court, CP32C
San Diego, CA 92123-1548
NV Energy/Sierra Pacific Power Company
c/o Andy Brown (903)
Ellison, Schneider & Harris, LLP
2600 Capital Avenue, Suite 400
Sacramento, CA 95816-5931
Akbar Jazayeiri (338)
Director of Revenue & Tariffs
Southern California Edison Company
P. O. Box 800
2241 Walnut Grove Avenue
Rosemead, CA 91770
Ronald Moore (133)
Golden State Water Company/Bear Valley Electric
630 East Foothill Blvd.
San Dimas, CA 91773
Daniel Silveria
General Manager
Surprise Valley Electric Corporation
P.O. Box 691
Alturas, CA 96101
Staci Behnke
Valley Electric Association
800 E. Hwy 372
Pahrump, NV 89048
Electric Service Providers
Goodman Inger
Commerce Energy, Inc. (1092)
575 Anton Boulevard, Suite 650
Costa Mesa, CA 92626
Ron Cerniglia
Direct Energy Services, LLC (1341)
12 Greenway Plaza, Suite 600
Houston, TX 77046
ron.cerniglia@directenergy.com
Kerry Hughes
Direct Energy Business (1351)
7220 Avenida Encinas, Suite 120
Carlsbad, CA 92009
customerrelations@directenergy.com
Victor Gonzales
Constellation NewEnergy, Inc. (1359)
111 Market Place, Suite 500
Baltimore, MD 21202
victor.m.gonzalez@constellation.com
Kevin Boudreaux
Calpine PowerAmerica-CA, LLC (1362)
3875 Hopyard Road, Suite 345
Pleasanton, CA 94588-8558
Drake Welch
Sempra Energy Solutions (1364)
401 West A Street, Suite 500
San Diego, CA 92101-3017
Thomas Darton
Pilot Power Group, Inc. (1365)
8910 University Center Lane, Suite 520
San Diego, CA 92122
Rick C. Noger
Praxair Plainfield, Inc. (1370)
2711 Centerville Road, Suite 400
Wilmington, DE 19808
Jenny Zyak
Liberty Power Holdings LLC (1371)
1901 W. Cypress Creek Road, Suite 600
Fort Lauderdale, FL 33309
Jenny Zyak
Liberty Power Delaware LLC (1372)
1901 W. Cypress Creek Road, Suite 600
Fort Lauderdale, FL 33309
Michael Mazur
3 Phases Electrical Consulting (1373)
2100 Sepulveda Blvd., Suite 37
Manhattan Beach, CA 90266
Marcie Milner
Shell Energy (1374)
4445 Eastgate Mall, Suite 100
San Diego, CA 92121
Drake Welch
The Royal Bank of Scotland (1375)
36 St. Andrew Square
Edinburg - Scotland, UK EH2-2YB
Any electric service provider that, subsequent to the date of the order instituting this rulemaking, becomes registered to provide services within the service territory of one or more of the respondent electrical corporations through direct access transactions shall, upon such registration, become a respondent to this proceeding. Any electric service provider respondent whose registration is cancelled during the course of this proceeding shall, upon confirmation of such cancellation by the Energy Division, cease to be a respondent to this proceeding.
Community Choice Aggregators
None
Any community choice aggregator that, subsequent to the date of the order instituting this rulemaking, files an implementation plan or becomes registered to provide services within the service territory of one or more of the respondent electrical corporations through community choice aggregation transactions shall, upon such filing or registration, become a respondent to this proceeding. Any community choice aggregator respondent that withdraws its implementation plan or whose registration is cancelled during the course of this proceeding shall, upon confirmation of such withdrawal or cancellation by the Energy Division, cease to be a respondent to this proceeding.
(END OF APPENDIX B)
