6. SCE's Procurement Review Group Participated in Review of the Contract

In D.02-08-071, the Commission required each utility to establish a "Procurement Review Group" (PRG) the members of which, subject to an appropriate non-disclosure agreement, would have the right to consult with the utilities and review the details of:

1. Overall transitional procurement strategy;

2. Proposed procurement processes including, but not limited to, the request for proposal (RFP); and

3. Proposed procurement contracts before any of the contracts are submitted to the Commission for expedited review.

SCE's PRG was formed on or around September 10, 2002. Recent participants include representatives from the Commission's Energy Division, DRA, The Utility Reform Network, the Natural Resources Defense Council, the Consumers' Union, California Utility Employees, and DWR. SCE consulted with the PRG during each step of its renewable procurement process. Among other things, SCE provided solicitation materials and pro forma contracts to the PRG for review and comment before commencing the RFP; informed the PRG of the initial results of the RFP; explained the evaluation process; and updated the PRG periodically concerning the status of contract formation.

SCE met with the PRG on several occasions regarding SCE's 2005 RFP. On December 13, 2005, SCE met with the PRG to describe SCE's least-cost/best-fit (LCBF) methodology and assessment of need for the 2005 RPS solicitation. On December 22, 2005, SCE met with the PRG to review SCE's proposed short list of bids. On March 29, 2006, SCE updated the PRG as to the status of negotiations with bidders. SCE had two separate PRG meetings to discuss the Alta Contract. The first was held on October 25, 2006. The second was held on December 19, 2006, when SCE briefed the PRG concerning the successful conclusion of discussions with Alta. In addition, on December 20, 2007, SCE briefed the PRG on Amendment No. 2.