Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Anne E. Simon is the assigned Administrative Law Judge in this proceeding.

1. AB 32 provides that GHG emissions limits shall be adopted by CARB and shall become operative by January 1, 2012.

2. In D.07-01-039, the Commission established interim GHG emissions performance standards for long-term financial commitments of California LSEs for baseload generation, as required by SB 1368.

3. Any RPS procurement contract subject to the 2007 MPR will continue for many years past January 1, 2012.

4. The E3 model for calculating GHG emissions costs has been reviewed and accepted in several Commission proceedings.

5. It is reasonable to include in the 2007 MPR a calculation of GHG emissions costs to be incurred by the MPR proxy CCGT beginning January 1, 2012.

6. It is reasonable to review the role of a GHG adder in the MPR for 2008 and later years separately from a determination of whether to include a GHG adder for the 2007 MPR only.

1. The 2007 MPR calculation should use the E3 model for calculating GHG emissions costs to be incurred by the MPR proxy CCGT beginning January 1, 2012.

2. The assigned Commissioner and assigned administrative law judges in R.06-02-012, in R.06-05-027, and/or their successor proceedings, should be authorized to set a schedule for examining the MPR for 2008 and later years for purposes of determining what changes should be made to the MPR methodology, including how the costs of GHG emissions should be reflected in the MPR for 2008 and later years.

3. In order to allow the 2007 MPR to be calculated expeditiously and negotiation of RPS procurement contracts from the 2007 solicitation to proceed expeditiously, this order should be effective immediately.

ORDER

IT IS ORDERED that:

1. The calculation of the 2007 market price referent (MPR) used in the renewables portfolio standard program shall use the model for calculating greenhouse gas emissions costs (GHG adder) developed by Energy and Environmental Economics and adopted in Decision 04-12-048, applied to the MPR's combined cycle combustion turbine proxy plant for GHG emissions costs beginning January 1, 2012.

2. The assigned Commissioner and assigned administrative law judges in Rulemaking (R.) 06-02-012, in R.06-05-027, and/or their successor proceedings, may set a schedule for examining the MPR for 2008 and later years for purposes of determining what changes should be made to the MPR methodology, including how the costs of GHG emissions should be reflected in the MPR for 2008 and later years.

3. In all respects other than those set forth in Paragraphs 1 and 2, above, the Petition of the California Wind Energy Association and the Green Power Institute for Modification of Decision 05-12-042: Interim Opinion Adopting Methodology for the 2005 Market Price Referent is denied.

This order is effective today.

Dated September 20, 2007, at San Francisco, California.

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