4. Comments on Draft Decision

The draft decision of Administrative Law Judge Michelle Cooke in this matter was mailed to the parties in accordance with Section 311(g)(1) of the Public Utilities Code and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed on October 20, 2000 by PG&E and October 23, 2000 by SCE. No reply comments were filed. PG&E supports adoption of the order. We believe that the timing concerns raised by SCE are addressed by our direction to implement consensus provisions in the Energy Commission's Supplemental Recommendation. While that recommendation is pending, it is our intent to move expeditiously to address the Supplemental Recommendation.

Findings of Fact

1. The Energy Commission's recommended rules promote application of consistent interconnection standards across utility service territories and provide clear guidance to applicants regarding the standards that must be met for simplified interconnection.

2. The alternative language proposed by PG&E regarding confidentiality accomplishes the objective of maintaining a level playing field between the utility and other providers of services.

3. The language recommended by the Energy Commission regarding the timing of initial and supplemental reviews provides sufficient flexibility for the utility to respond to unusual circumstances.

4. When compared to existing Rule 21 of PG&E, SCE, and SDG&E, the Energy Commission's proposed rule language covers all aspects of the existing tariffs adequately.

Conclusions of Law

1. The following language for Section 2.7 of Rule 21 should be adopted:

2.7 Confidentiality of Information. Any information pertaining to Generation and/or Interconnection Facilities provided to Electrical Corporation by an Electricity Producer shall be treated by Electrical Corporation in a confidential manner. Electrical Corporation shall not use information contained in the Application to propose discounted tariffs to the customer unless authorized to do so by the customer or the information is provided to Electrical Corporation by the customer through other means.

2. The initial and supplemental review should normally be completed in a specified period of time, as recommended by the Energy Commission, absent any extraordinary circumstances.

3. Implementation of new rules (as modified by this decision) should not be delayed pending completion of additional rule development work at the Energy Commission.

4. By adopting clear standards to facilitate interconnection of new, small scale generating facilities, we take a first step towards relieving California's electricity supply constraints consistent with the directives of AB 970.

5. The Rule 21 language recommended by the Energy Commission on June 27, 2000 should be adopted in its entirety, with the modification to Section 2.7 as described above.

6. It is reasonable to adopt the Rule 21 Model Tariff for all respondent utilities because our goal is to apply the same interconnection standard on a statewide basis. There may be compelling reasons why smaller utilities or those utilities with limited California operations may not be able to comply with this standard. Therefore, it is reasonable to allow Sierra, Pacificorp, Mountain Utilities, and Bear Valley Electric to either file a compliance advice letter adopting the model tariff or a compliance filing in this docket showing compelling reasons why the adopted rule should not apply to them.

7. While the Energy Commission's supplemental recommendations are still pending, it is reasonable to encourage utilities to implement consensus procedures recommended by the Energy Commission in its Supplemental Recommendation for requested interconnections.

INTERIM ORDER

Therefore, IT IS ORDERED that:

1. Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company shall file, within 15 days of the effective date of this order, compliance advice letters to revise Rule 21 of their tariffs consistent with Appendix A. The advice letters shall be effective upon filing, subject to Energy Division determining that they are in compliance with this Order.

2. Within 40 days of the effective date of this order, Sierra Pacific Power Company, Pacificorp, Mountain Utilities, and Bear Valley Electric shall either file a compliance advice letter adopting the Model Tariff or a compliance filing in this docket demonstrating compelling reasons why the adopted rule should not

apply to them. If filed, advice letters shall be effective upon filing, subject to Energy Division determining that they are in compliance with this Order.

This order is effective today.

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