7. Timing of Reports and Reporting Format

7.1. Timing of Reports

Compliance reports are now due each year on March 1 and August 1, with supplemental or amended reports due by May 1. (D.05-07-039, OP 17.) The staff draft paper proposed the following changes:

a. The March 1 report be submitted on May 1 (to coincide with LSE completion of CEC and Federal Energy Regulatory Commission (FERC) reports, facilitating use of the same data).

b. The August 1 report be deleted, with the same information incorporated in the LSE's short-term procurement plan to be filed during the 4^th quarter of each year.

Parties generally agree with staff's proposal. GPI opposes delaying the March 1 report, contending that performance under the RPS program is of considerable interest. GPI argues that IOUs can submit data on March 1, as demonstrated by IOUs successfully filling March 1 reports in 2006. Also, GPI asserts it is important to get data annually as soon as possible.

We already considered and rejected both the May/November schedule, and setting reporting dates in accordance with solicitation cycles. (D.05-07-039, p. 27.) Nonetheless, the issue is before us again, and with limited exception, parties do not oppose some modification.

We agree with the goal of using common data, where feasible. We also agree that early reporting is desirable given considerable interest in this program. In pursuit of these conflicting goals, we retain the reporting dates required by prior Commission orders.

This results in a report early in the year, on March 1, timed to provide performance information on a program that continues to draw considerable interest. It permits an update, as necessary, by May 1, facilitating the use of common data. It requires a second report on August 1. If there are no changes from prior reports, on August 1 the LSE may report that result.

We decline to incorporate the second report into an LSE's filing of its short-term procurement plan. We are reassessing whether or not to continue with an annual procurement cycle. (See August 21, 2006 Scoping Memo, Attachment A, p. 1.) It is unwise to complicate that decision by linking it to a report with independent importance. Also, reports from LSEs are necessary even if some entities need not file procurement plans (e.g., ESPs, CCAs). Thus, at least for now, reporting should be kept separate.

We note, however, that the March 1 and August 1 dates may be adjusted for good cause. These dates may be changed by request to the Commission's Executive Director, made by letter or electronic mail at least three days before the date for compliance, with service of the request on the service list and the Chief ALJ. (Rule 16.6) of the Commission's Rules of Practice and Procedure.) The Executive Director will authorize revised dates, as appropriate.

Moreover, we note that the "opportunity to supplement or amend the March filing by May 1" (D.05-07-039, OP 17) is not itself limiting. The May 1 date is an opportunity-not a requirement-to supplement or amend. Nonetheless, LSEs are obligated to keep the Commission informed of all relevant and material information on a timely basis. The opportunity to supplement by May 1 does not excuse an LSE from informing the Commission on another date where otherwise reasonable to do so. This includes upon CEC's adoption of the relevant Verification Report.

Thus, an LSE must update its March 1 report by May 1, on May 1, or after May 1, as necessary and reasonable. The Energy Division Director may set a date to coordinate filings to be made on or about May 1, as appropriate, to coincide with LSE filing of reports at other agencies. Such coordination does not require a Rule 16.6 request for extension by a party. Whether or not such other date is set, we direct each RPS-obligated LSE to file an updated report within 30 days of the date CEC adopts the relevant Verification Report.

7.2. Reporting Format

As we first specified in 2005, compliance reports must show renewable procurement by type (e.g., biomass, biogas, geothermal, small hydro, solar, wind). They must show APT, IPT, surpluses, deficits, and other appropriate elements. (D.05-07-039, Attachment A.) Given the further clarification and further orders herein, the adopted reporting format may need modification.

GPI presents its proposed simplified reporting method with example numbers as follows:

GPI Proposed

Simplified Reporting and Compliance System

(Source: GPI Comments, p. 10.)

We adopt the GPI proposed reporting system as the structure and foundation upon which reports should be based. To this report must be added the estimated penalty, as discussed above. The report must also state under "total renewable generation" the amount procured or projected to be procured from each renewable resource type.²⁴ In addition to the amount of energy, it must also state the percentage of each resource type related to the total.²⁵ It must also state relevant information with regard to each earmarked contract, to the extent any earmarked contract is being used.²⁶ The report must state each reason an LSE asserts in support of deferral or waiver of any penalty related to any reported deficit. If no reason is stated, the penalty should be paid. If paid (or to be paid), the report should state all relevant information (e.g., amount, date, to whom paid). Finally, the report must state anything else an LSE believes is necessary for a full and complete reporting to the Commission in order to allow an informed decision on compliance. This may include, for example, footnotes and other explanatory information as necessary and reasonable to fully and accurately describe any unique or particular situation.

We direct PG&E, SCE and SDG&E to develop and propose a draft compliance report, starting with the GPI proposed spreadsheet and format, and consistent with the revised, adopted reporting methodology adopted herein. The proposal shall include entries as appropriate for each year beginning with 2003 (the baseline beginning of the RPS Program) and through the reporting year, and at least three years forward (whether or not any surpluses are banked forward, or deficits are carried forward). The proposal shall also clearly identify the data categories which are expected to be publicly available and those for which confidential treatment may be sought (consistent with Commission orders and guidance in D.06-06-066).

The three large IOUs shall collaborate on this with the staffs of the Commission and the CEC beginning today. The draft proposal will be filed in this docket, and served on the service list, within 30 days of the date this order is mailed. If a consensus is reached among the three IOUs, the consensus reporting spreadsheet and format will be filed and served. If no consensus is reached, PG&E, SCE and SDG&E shall each file and serve its own proposal. The three IOUs should accommodate the participation of other LSEs and parties to the extent other LSEs and parties are able and wish to participate.

If necessary or useful, ED staff should then hold a workshop. Whether or not a workshop is held, comments on the proposal shall be filed and served within 21 days of the date the proposal is filed, and reply comments within 7 days of the date comments are filed. The assigned ALJ may modify these dates upon request of parties, or as appropriate.

After reviewing comments, the ALJ should by ruling file and serve a standardized reporting spreadsheet and format. Each LSE shall use this standardized reporting spreadsheet and format for filing each report going forward. In addition to the report in the standardized format, an LSE may submit another, separate report in another format or with other information to the extent it believes another format or other information is necessary to fully and accurately describe its particular situation.

7.3. Updated Compliance Reports and Possible Enforcement

The ALJ should issue a ruling as soon as the standardized reporting spreadsheet and format is determined. The ruling should set a date for all applicable LSEs to file and serve updated compliance reports.

Regarding the first two reports, one should be for 2004 and one for 2005. Each report will only need to demonstrate compliance if the LSE has met its APT, and should show banking of surplusses, if any. If the LSE reports an energy deficit, the accompanying penalty should be estimated and reported, whether or not the LSE asserts temporary deferral of the penalty. If the LSE reports an energy deficit of less than or equal to 25% of its IPT, the report does not need to state a reason for non-compliance, but should state whether or not it is carrying the energy deficit forward and for how many years (up to three). If the LSE reports an energy deficit greater than 25% of its IPT, the report must state the reason, if any, why the energy deficit in excess of 25% should be permitted to be carried forward for up to three years, how many years the LSE seeks to carry the energy deficit forward (up to three), and why any penalty associated with the energy deficit should be temporarily deferred or waived. Alternatively, the LSE may simply pay the penalty.

Whether the first reports show either compliance (with or without a surplus) or an energy deficit (with or without reasons in support of penalty deferral), the ALJ should schedule a round of comments, and motions for hearing, as necessary. This will provide an opportunity to hear from parties whether or not there is any dispute regarding either asserted compliance or the request for deferral or temporary waiver of a penalty. The ALJ may issue a ruling, or prepare a proposed decision if Commission action is required, to conclude the review process for 2004 and 2005, as necessary. A tentative schedule for determining RPS compliance is in Attachment B.

7.4. Ongoing Reporting

Going forward, each LSE's periodic compliance report (e.g., March and August, with May updates), shall be filed with the Energy Division Director, and served on the service list. It need not be filed in this docket.

Finally, each LSE should also file with the ED Director, and serve on the service list, a report that states its targets and procurement for the current year, and projects targets and procurement each year forward through 2020. Projected procurement should clearly differentiate energy to be procured from (a) existing and/or signed contracts and resources and (b) other contracts and resources (e.g., from a future solicitation, under negotiation, to be built). This report should be made once per year as part of the second report (i.e., due August 1 unless modified by the Executive Director). This requirement should expire with the report filed in 2010.

7.5. Updated Reporting Spreadsheet and Format

The Executive Director may change the standardized reporting spreadsheet and format as necessary going forward if changes are necessary after this RPS proceeding is closed. Such modification, for example, may permit exclusion of historic years as they become less relevant after a few cycles of reports. If modified by the Executive Director, the modification should be in writing, served on each LSE subject to the RPS program, and served on the service list.

7.6. Requests for Confidential Treatment

If an LSE seeks confidentiality protection for information contained in the reports discussed in this section, it shall comply with the substantive and procedural rules set forth in D.06-06-066, the Commission's recent decision in its confidentiality proceeding (R.05-06-040), and any subsequent decision issued in the same, or subsequent confidentiality, proceeding. Each LSE should be aware that D.06-06-066 finds that most RPS information should be publicly filed and is not entitled to confidentiality protection.

²⁴ For example, it must show how much is procured or projected to be procured from biomass, biogas, geothermal, small hydro, solar, wind. (See D.05-07-039, Appendix A.) Parties may propose other categories, and the ALJ may adopt other categories, as appropriate and reasonable (e.g., solar thermal, photovoltaic). The requirement to show the amount by type is only with respect to total procurement. It does not apply to other lines on the report (e.g., IPT, APT, total surplus/deficit, AP bank balance, bank deposits/withdrawals).

²⁵ For example, it might show actual renewable generation from biomass 30 kWh (10%), biogas 45 kWh (15%), geothermal 75 kWh (25%), wind 150 kWh (50%), and total 300 kWh (100%). The APT each year (e.g., 12% in year "x," with 20% in 2010) applies to total procurement only. There are no individual targets by renewable resource type. Nonetheless, the Governor's Executive Order S-06-06 seeks 20% biopower within the 20% target by 2010. Therefore, among other things, a statement of the percent of each resource type will assist tracking of biopower as a percentage of total procurement to assess progress toward the Governor's goal. If biomass and biogas are separate items but part of bioenergy, the report should list a subtotal for biopower.

²⁶ The energy from an earmarked contract shall be shown in the year in which physical delivery is actually expected, not the year to which it may be "administratively" applied. Text, a footnote, or other device, may be used to show how the LSE is applying the energy to a prior year consistent with the 25% IPT factor to support temporary deferral or waiver of a penalty.