II. Procedural History

Senate Bill 1078, effective January 1, 2003, established the RPS program.¹ Decision (D.) 03-06-017, the first of several decisions implementing the program as part of R.01-01-024, set initial parameters and requirements. These included: (a) a process for determining the market price of electricity, (b) criteria for the rank ordering and selection of Least Cost/Best Fit (LCBF) renewable resources, (c) flexible compliance rules, and (d) an approach to forming standard contract terms and conditions.

We opened this proceeding, R.04-04-026, in April 2004 to continue implementation of the RPS program. In D.04-06-014, we adopted limited standard terms and conditions for RFOs, and directed compliance filings for both Plans and RFOs. We also provisionally approved each IOU issuing an RFO for the 2004 RPS program solicitations.

In D.05-07-039, we conditionally approved the Plans and RFOs for the 2005 solicitations. In D.05-10-014, we conditionally approved the long-term RPS procurement plans of each IOU, directed the filing of a supplement to each IOU's long-term plan, and ordered that review of future long-term plans be conducted in R.04-04-003 or its successor proceeding. We also noted that the Assigned Commissioner and assigned Administrative Law Judge (ALJ) should set a schedule for the consideration of 2006 draft Plans and RFOs. By Assigned Commissioner and ALJ Ruling dated November 19, 2005, the IOUs were directed to submit their 2006 RPS Plans and draft RFOs.

On December 7, 2005, PG&E, SCE and SDG&E filed supplements to their respective 2005 long-term Plans. On December 22, 2005, PG&E, SCE and SDG&E filed the annual RPS Plans for 2006 and draft RFOs. On January 17, 2006, the following parties filed comments on the 2006 Plans: PG&E, the Commission's Division of Ratepayer Advocates (DRA), Aglet, Green Power Institute (GPI), and Union of Concerned Scientists (UCS). On January 31, 2006, the following parties filed reply comments: PG&E, SCE, SDG&E, DRA, Aglet, UCS and Alliance for Retail Energy Markets (AReM).

Regarding the benchmarking methodology, on January 10, 2006, SCE filed updated TOD factors for its 2006 solicitation, as ordered in D.05-12-042. On January 17, 2006, PG&E, SCE and SDG&E filed proposals for benchmarking TOD profiles. On February 8, 2006, PG&E filed a supplement to its 2006 solicitation protocol and TOD benchmarking proposal. Also on February 8, 2006, SCE filed a supplement to its benchmarking proposal. On February 15, 2006, DRA, Aglet, GPI, and Solel Inc. (Solel) filed comments. On March 1, 2006, PG&E, SCE and SDG&E filed reply comments.

This decision addresses the most recently proposed RPS Plans, including RFOs. We also address issues that arise from parties' proposals and comments on a TOD benchmarking methodology.

¹ Stats. 202, Ch. 516, S3, codified as Pub. Util. Code §§ 399.11, et seq. All subsequent code section references are to the Public Utilities Code unless noted otherwise.