ALJ/PVA/lil Date of Issuance 1/18/2012

Decision 12-01-033 January 12, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Integrate and Refine Procurement Policies and Consider Long-Term Procurement Plans.

Rulemaking 10-05-006
(Filed May 6, 2010)

DECISION APPROVING MODIFIED
BUNDLED PROCUREMENT PLANS

DECISION APPROVING MODIFIED BUNDLED PROCUREMENT PLANS 1 1

1. Summary 2 2

2. Background 2 2

3. Adequacy of Procurement Plans 4 4

4. Standardized Planning Assumptions 15 15

5. Compliance with Loading Order 17 17

6. Energy Efficiency and Demand Response 22 22

7. Hedging 23 23

8. Renewable Integration Products 28 28

9. Direct Access and Community Choice Aggregation 30 30

10. Combined Heat and Power 31 31

11. Gas Supply Plan 33 33

12. Nuclear Fuel Procurement Plan 34 34

13. Convergence Bidding 37 37

14. Short-Term Renewable Contracts 39 39

15. Bilateral Contracts 40 40

16. Contract Duration 40 40

17. Participation in RFOs and RFPs and Electronic Solicitations 41 41

18. Independent Evaluator 43 43

19. Floating Swap 44 44

20. Expiration of Procurement Authorization 44 44

21. Comments on Proposed Decision 45 45

22. Assignment 45 45

Findings of Fact 45 45

Conclusions of Law 48 48

ORDER 51 51

DECISION APPROVING MODIFIED
BUNDLED PROCUREMENT PLANS

1. Summary

This decision approves with modifications the plans of the three major California electric utilities to procure electricity for their bundled customers, consistent with Pub. Util. Code § 454.5. The utilities' bundled plans are approved as proposed by the utilities, except as modified by this decision. In addition, we provide guidance to the utilities for their future bundled procurement plans.