Word Document

STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 16, 2001

TO: PARTIES OF RECORD IN RULEMAKING 00-10-002

This is the draft decision of Commissioner Carl Wood. It will be on the Commission's agenda at the next meeting. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

All parties stipulated to a reduced time for public review and comment. (Rule 77.7(g); Ruling dated December 12, 2000.) As a result, comments on the draft decision must be filed within 10 days of today, and reply comments within five days of the date comments are filed.

Service of comments and reply comments should be consistent with the December 7, 2000 ruling on service. That is, service shall be performed on the service list by electronic mail, including Commission members on the service list. In addition, limited service of paper copies is required as explained in the Ruling. Finally, comments must be served separately on the Presiding Officer and Assigned Commissioner, and the Administrative Law Judge. For that purpose I suggest delivery at the same time the document is filed in the Docket Office.

/s/ Lynn T. Carew

Lynn T. Carew, Chief

Administrative Law Judge

LTC:t94

Attachments

CXW/t94 3/16/2001                                    DRAFT              Item 6

Agenda 3/27/2001

Decision DRAFT DECISION OF COMMISSIONER WOOD (Mailed 3/16/01)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking into the operation of interruptible load programs offered by Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company and the effect of these programs on energy prices, other demand responsiveness programs, and the reliability of the electric system.

Rulemaking 00-10-002

(Filed October 5, 2000)

TABLE OF CONTENTS

Page

INTERIM OPINION 1

1. Summary 1

2. Interruptible Tariffs Background 1

3. Curtailment Priorities Background 6

4. Proceeding Background 7

5. Adopted Improvements to Current Interruptible Programs and New Programs 11

6. Rotating Outage Programs 31

7. Other Issues 49

8. Funding and Program Limits 56

9. Implementation 63

Findings of Facts 64

Conclusions of Law 71

INTERIM ORDER 76

ATTACHMENT A - Changes to Current Interruptible Programs, New Interruptible Programs, and Rotating Outage Programs

ATTACHMENT B - Decision No. 91584: Priority System for Rotating Outages

ATTACHMENT C - Adopted Priority System for Rotating Outages

ATTACHMENT D - Adopted Studies and Reports

INTERIM OPINION

1. Summary

This decision adopts important improvements to the interruptible tariffs and rotating outage programs of Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). These changes will improve the reliability of California's electric system for the near term, particularly Summer 2001.

The adopted programs are described in Attachment A. These programs largely implement the February 9, 2001 recommendations of the Energy Division, which we clarify and modify based on reasonable proposals and suggestions made in the February 14, 2001 Joint Proposal, the February 22, 2001 comments, and the February 26, 2001 reply comments.

This order provides a broad range of short-term and mid-term tools to help California get through the challenges of the immediate future, while additional steps are taken elsewhere to implement a more comprehensive response to the situations that Californians now face.

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