2. Background

On June 16, 2008, SDG&E filed its application for approval of the MEF II project and supported the application with testimony and exhibits, including the Commission-approved Request for Offer (RFO) Solicitation Contract Approval Request (RFO Template).¹ The June 16, 2008 application also sought expedited approval of the project by September 4, 2008 so the unit could be on-line and available to serve SDG&E's summer 2009 peak load.

The Utility Consumers Action Network (UCAN), Western Power Trading Forum (WPTF) and MMC Energy, Inc. (MMC) filed protests and the Independent Energy Producers Association (IEP) filed a response to the application. UCAN and MMC objected to SDG&E's request for expedited approval of the project. UCAN, MMC, WPTF and IEP all questioned whether SDG&E's choice of the Engineering, Procurement and Construction (EPC) contract with Wellhead was the result of a fair competitive process, or if not, whether it met the exceptions for resources chosen outside of solicitations set forth in Decision (D.) 07-12-052.

A prehearing conference (PHC) was held on August 13, 2008 and MMC and WPTF requested evidentiary hearings (EH) on the issue of whether or not SDG&E had justified its request for expedited processing of the application, as well as EHs on the topic of whether or not the choice of the MEF II project met the Commission's specifications for procurement as established in D.07-12-052. A telephonic PHC to calendar the EHs was scheduled for September 9, 2008. In advance of that conference, parties determined that no EHs were required for resolution of the application and a briefing schedule was set.

On September 10, 2008, an Administrative Law Judge (ALJ) ruling confirmed that no EHs were necessary, established the briefing scheduling, marked submitted testimony as exhibits and admitted the exhibits into the record.

Opening briefs were received on September 30, 2008 from MMC, IEP, WPTF and SDG&E. Reply briefs were received on October 15, 2008 from IEP and SDG&E.

¹ SDG&E's use of the RFO Template facilitated the Commission's review of the MEF II project.