2. Background

On June 8, 2001, Governor Gray Davis issued Executive Order (EO) D-39-01. EO D-39-01 addresses consolidation of load curtailment programs now authorized or offered by the California Independent System Operator (ISO), the Commission, and electric corporations. Further, it orders the California Department of Water Resources (DWR) and ISO to implement voluntary, emergency load curtailment programs.

By letter dated June 25, 2001, Governor Davis asks the Commission to take three actions related to EO D-39-01. These actions are:

1. Modify Decision (D.) 01-04-006 to allow investor owned utilities to serve as load aggregators for a demand bidding program (DBP), and relieve the utilities of the responsibility for implementing the Voluntary Demand Response Program (VDRP). Customers currently enrolled in VDRP should be afforded an opportunity to easily transfer to the new DBP.

2. Expedite consideration of any DBP tariffs to facilitate implementation of the program as early as July 1, but no later than July 15.

3. Direct the utilities, working with the DWR, to aggressively market the program to eligible customers to achieve maximum participation during this critical summer.

Also on June 25, 2001, an emergency petition for modification of D.01-04-006 was filed jointly by Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). Respondent utilities seek modification of D.01-04-006 to allow each utility to withdraw its VDRP and accompanying tariffs, and replace it with a new DBP. Respondent utilities seek approval of the DBP, and authority to file implementing tariffs and agreements on an expedited basis.

By ruling dated June 26, 2001, respondent utilities were each directed to file and serve a draft tariff by June 28, 2001. Further, parties were invited to comment on the June 25, 2001 letter from the Governor to the Commission. Finally, the period for comment on the letter, and responses to the petition for modification, was shortened to July 2, 2001.

On June 28, 2001, respondent utilities filed and served draft tariffs. On July 2, 2001, responses to the petition for modification were filed and served by ISO, Premier Utility Consultants, Inc. (PU Consultants), and the Office of Ratepayer Advocates (ORA). On July 5, 2001, respondent utilities filed and served a reply to the responses.