Path 15 Expansion Project
Evidentiary hearings on the Path 15 expansion project will be bifurcated into two phases. The first phase will examine the economics of the project, based on the testimony submitted to date and any supplemental testimony on project benefits. The second phase will address the allocation of both costs and benefits PG&E's ratepayers, based on the final MOU implementation agreements. Those agreements will finalize the governance structure, ownership percentages, coordinated operations, project work products, a more detailed definition of the project scope and the nature of ownership rights and responsibilities under the project. The target date for the completion of those agreements is mid-January. 2
During the week of February 25, 2001, we will hold evidentiary hearings to determine the plausible range of economic benefits from the Path 15 expansion project, on a stand-alone basis. This will form the basis of the "benefits side" of the equation for our evaluation of the benefits and costs to PG&E's ratepayers under the MOU arrangements.
The opening testimony served by PG&E and CAISO on September 25, 2001, will be subject to cross-examination during the February hearings, as will ORA's November 8, 2001 intervener testimony and CAISO's rebuttal testimony. PG&E's opening testimony focused on more fully describing the project and the expected costs to build the project. The CAISO testimony addressed the need for the project, finding the Path 15 expansion to be economic under certain scenarios.3 PG&E states that the MOU participants are still negotiating issues that may alter the project scope and overall costs. Therefore, we will use the cost figures presented in PG&E's opening testimony (which were also used in the economic analysis presented in CAISO's opening testimony) as placeholders, until the MOU implementation agreements are finalized.
2 The MOU, however, is available at this time. As discussed at the PHC, PG&E shall file a copy of the MOU signed by all participants in this proceeding without further delay. Copies should be served on all appearances and the state service list in this proceeding.
3 PG&E stated at the PHC that the analysis of benefits of Path 15 has been made in the ISO's opening testimony and PG&E does not intend to add any testimony on this issue. However, as indicated in the schedule below, I have provided the opportunity for any interested party (including respondents) to submit additional testimony on Path 15 benefits before we begin evidentiary hearings.
