DSP/BAR/kth Mailed 1/28/2004
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on policies and practices for the Commission's transmission assessment process. |
FILED JANUARY 22, 2004 RULEMAKING 04-01-026 |
ORDER INSTITUTING RULEMAKING
I Summary
We open this Rulemaking to consider proposals to streamline the transmission planning process for Investor Owned Utilities (IOUs) in a manner that upholds environmental standards, meets the Commission's statutory obligations under PU Code Section 1001, and ensures consumer benefits. At the same time, in recognition of industry, marketplace, and legislative changes the Commission intends to address claims that the existing transmission review process promotes inefficiencies and unnecessary redundancies in the current transmission review process. To this end, the Commission proposes changes to General Order 131-D. The changes would allow the Commission to apply a universal economic methodology for economic transmission projects, once it is adopted, in a way that eliminates duplicative transmission need determinations that currently exist at the California Independent System Operator (CAISO or ISO) and the Commission. Under the proposal the Commission would utilize the ISO's need determination for reliability projects to the degree there is an agreed upon standard and the ISO applies that standard. The Commission therefore asks the ISO to propose a standard for determining need for a transmission project to maintain or enhance system reliability so that parties have the opportunity to comment. The Commission believes that the new framework for transmission planning outlined in this Rulemaking is an improvement over historic practices and processes in that it leverages existing expertise at the Commission and the CAISO, and facilitates an improved, streamlined, and more comprehensive approach toward transmission planning.
Section III below outlines the issues we expect to address in the course of the rulemaking.
