IV. Preliminary Scoping Memo
Rule 6(c)(2) of our Rules of Practice and Procedure12 provides that an OIR "shall preliminarily determine the category and need for hearing, and shall attach a preliminary scoping memo." This OIR is preliminarily determined to be quasi-legislative, as that term is defined in Rule 5(d). It appears that there may not be material factual disputes on Phase I issues. In addition, due to the need for a decision this summer on these issues, it is contemplated that Phase I of this proceeding will be conducted expeditiously through a written record, with no evidentiary hearing for this phase, and that an order will issue based on the comments timely filed in this docket. As to Phase II of this proceeding, there will be a prehearing conference, Assigned Commissioner Ruling or an Administrative Law Judge (ALJ) Ruling governing the subsequent procedures after the initial rounds of pleadings on the Phase II issues. In addition, if warranted, through an Assigned Commissioner Ruling or an ALJ Ruling, a Phase I issue may be transferred to Phase II of this proceeding.
The scope of Phase I of the OIR is to adopt rules, which will provide guidelines over how the designated utilities should: (1) enter into contracts with interstate pipelines (whether new contracts or renewals of existing contracts) to meet core supply obligations; (2) provide access to LNG supplies of natural gas; and (3) provide access to additional supplies of natural gas transported on interstate pipelines. These issues are discussed in greater detail in Section III. B., above.
The scope of Phase II of the OIR is to adopt rules, which will provide guidelines over: (1) how the designated utilities should provide emergency reserves consisting of slack intrastate pipeline capacity, contracts for additional firm interstate pipeline transportation rights, and supplies of natural gas in storage dedicated for emergency needs; (2) the process by which the utilities should keep us informed of whether or not they would need to perform a backstop function to secure enough additional firm transportation rights if the noncore participants do not subscribe to sufficient interstate pipeline firm capacity rights; and (3) new ratemaking policies that will be consistent with the goal of ensuring adequate and reliable long-term supplies of natural gas to California. All of these issues are discussed in greater detail in Section III.C., above.
Respondents are required to file Phase I and Phase II proposals. Interested parties are invited to file comments on these proposals. Respondents may file replies to the comments of interested parties and to the proposals of other Respondents, if necessary. In their original filings in Phase I of this proceeding, Respondents and interested parties shall include in their pleadings any objections they may have regarding the categorization of this proceeding as quasi-legislative, as well as whether there are any objections to this preliminary scoping memo, or to the expedited schedule set forth herein.
Pleadings shall conform to the requirements of Rule 14.5 and shall be filed with the Commission's Docket Office and served according to the schedule below.
