9. Direct Access and Community Choice Aggregation

MEA criticizes PG&E's proposed plan on the grounds that it contains inaccurate forecasts of the load served by MEA. Specifically, MEA argues that PG&E's plan improperly excludes the load of MEA. (MEA Opening Brief at 1.) According to MEA, PG&E's plan does not reflect the passage of Senate Bill (SB) 695 (Stats. 2009, ch. 337), and the correspondingly increased certainty regarding future direct access loads. (Id. at 3.). AReM notes that SCE updated its assumptions for direct access load based on SB 695 and D.10-03-022, but that PG&E and SDG&E did not. (AReM Opening Brief at 2-4.) Sierra Club and Shell fundamentally agree with MEA and AReM.

PG&E does not dispute the substance of MEA's argument, but states that it was just using the Commission mandated standardized planning assumptions. (PG&E Reply Brief at 8-10). PG&E also argued that this issue would more appropriately be addressed in Track I, rather than here in Track II. (Ex. 103 at III-1 - III-2.) Administrative Law Judge Allen ruled that the issue would be addressed in Track II (Transcript vol. EH-3 at 150-151).

SCE's approach is more closely aligned with MEA than with PG&E on this issue. Under its alternate analysis, SCE includes in its forecast the maximum allowable phase-in of new direct access sales permitted under SB 695, which are greater than under the Standardized Planning Assumptions. (SCE Opening Brief at 30-31.) Specifically, SCE forecasts that the Commission-authorized increase in direct access would be fully subscribed in each year until 2013, consistent with D.10-03-022. (Id.) SCE argues that their assumptions are more consistent with SB 695 and D.10-03-022 than the standardized planning assumptions.

We agree with MEA and SCE on this issue. It is appropriate to use more accurate load forecasts for MEA, consistent with SB 695, instead of the load forecast in the standardized planning assumptions. SCE is authorized to use its direct access assumptions for purposes of establishing position limits and ratable rates for its bundled procurement plan. The other utilities should engage in procurement consistent with SCE's assumptions for direct access.