V. Public Review and Comment
The draft decision of the ALJ in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(g)(3) and Rule 77.7 of the Rules of Practice and Procedure. Comments are due on July 9, 2001.
Rule 77.7(f)(9) of the Commission's Rules of Practice and Procedure provides in relevant part that:
"...the Commission may reduce or waive the period for public comment under this rule...for a decision where the Commission determines, on the motion of the party or on its own motion, that public necessity requires reduction or waiver of the 30-day period for public review and comment. For purposes of this subsection, `public necessity' refers to circumstances in which the public interest in the Commission adopting a decision before expiration of the 30-day review and comment period clearly outweighs the public interest in having the full 30-day period for review and comment. `Public necessity' includes, without limitation, circumstances where failure to adopt a decision before expiration of the 30-day review and comment period...would cause significant harm to public health or welfare. When acting pursuant to this subsection, the Commission will provide such reduced period for public review and comment as is consistent with the public necessity requiring reduction or waiver."
We balance the public interest in quickly addressing PG&E's open season application against the public interest in having a full 30-day comment cycle on the proposed amendment. Expedited action must be taken in order to quickly address whether the open season should continue as proposed by PG&E. A reduced period for review and comment balances the need for parties' input with the need for timely action.
1. Concurrently with the filing of this application, PG&E initiated the open season awarding firm capacity on its transmission facilities and sent the information contained in the exhibits attached to its application to potential customers as part of the open season information packet.
2. The open season information addressed the following topics: term; volume; rate; award criteria; market concentration limits; cogeneration parity; and timelines.
3. By order of the assigned ALJ, an expedited comment period was established and the parties were asked to address the following topics: amount of core reservation; limits on capacity for shippers; term of contracts; reserved capacity; and maximum length of contract terms.
4. PG&E's application for approval of its open season procedures asks the Commission, and potential bidders, to project into the future, (beginning January 1, 2003, and continuing for potentially 15 years) conditions of the gas capacity market in PG&E's territory.
5. Until the Commission determines the appropriate market structure and rules to apply to PG&E's intrastate pipelines, potential bidders will not know what they are buying in PG&E's open season.
6. These issues, sufficient core reservation, maximum capacity limitations, contract terms and rates, and reserved amounts, as well as other significant topics, need to be reviewed, analyzed, and understood before the Commission can process PG&E's current opens season application.
1. The terms, conditions, and structure established in the current Gas Accord will expire December 31, 2002.
2. It is reasonable to review PG&E's open season procedures in the context of the anticipated Gas Accord II proceeding where the Commission will consider the appropriate framework and rules for intrastate transportation in PG&E's system in the years beyond 2002. Therefore, it is reasonable to order PG&E to cease its current open season procedures.
IT IS ORDERED that:
1. Pacific Gas and Electric Company's (PG&E) application for approval of the open season procedures for awarding firm capacity on it transmission facilities is denied.
2. PG&E is directed to cease its current open season.
3. PG&E is ordered to file its Gas Accord II application, as soon as possible, but in no event later than July 20, 2001.
4. The issues raised in the instant application for the open season will be addressed in the Gas Accord II proceeding pursuant to the expedited schedule set forth herein. The assigned Commissioner or Administrative Law Judge may modify the schedule as necessary to expeditiously address the issues presented in PG&E's application.
This order is effective today.
Dated , at San Francisco, California.
