ALJ/BWM/LTC/jva DRAFT Agenda ID # 3690
Ratesetting
7/8/04 Item 58
Decision DRAFT DECISION OF ALJ (Mailed 6/28/2004)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Promote Policy and Program Coordination and Integration in Electric Utility Resource Planning. |
Rulemaking 04-04-003 (Filed April 1, 2004) |
INTERIM ORDER REGARDING
ELECTRICITY RELIABILITY ISSUES
Table of Contents
Title Pages
ELECTRICITY RELIABILITY ISSUES 22
3.1. CAISO and Utility Roles in Assuring Reliability 77
3.1.1. Incremental Improvement 88
3.1.2. Reliance on RMR Contracts 1313
3.1.3. Modify Restriction on Use of Bilateral Negotiated Contracts 1616
4. California Environmental Quality Act 2525
5. Need for Expedited Consideration 2626
6. Comments on Draft Decision 2727
7. Assignment of Proceeding 2727
Attachment A Summary of Comments
Attachment B Table of Acronyms
1. Summary
The California Independent System Operator (ISO or CAISO) recently brought important concerns to our attention. In particular, these concerns relate to the CAISO's increasing need to manage congestion and address reliability issues in Southern California, particularly in the area South of Path 15 (SP 15). This has resulted in operational difficulties for the CAISO, along with immediate and important reliability concerns for this summer.
In response, we clarify and modify prior orders because reliability is not only the CAISO's job. We make clear that it is also a utility responsibility to procure all the resources necessary to meet its load, not only service area wide but also locally. In doing so, a utility must take into account not only cost but also transmission congestion and reliability.
These clarifications and modifications specifically apply to the facts presented in Southern California, but the principles also apply statewide. We direct Energy Division to seek information from CAISO and utilities to monitor their responses to this order, and bring any concerns to our attention. This proceeding remains open.
