Independent Energy Producers Association (IEP)

The focus of IEP's 18 recommendations is on improving the procurement process to promote a true hybrid market. From IEP's perspective, the hybrid market structure and competitive solicitations are not working as well as the Commission forecast. For example, IEP refers to the fact that a considerable amount of utility-owned generation has been procured outside of any competitive process, and the fact that the utilities are the primary purchasers of power and the sponsors of the RFOs. IEP believes this system gives proposals for utility-owned projects a competitive advantage over independent projects from merchant generators. IEP does question whether the RFO process will ever be fair and transparent since the IOUs run the RFOs.

IEP would like to recommend abolishing the hybrid market, but accepts that any discussion or the hybrid market is out of the scope of this proceeding. Instead, IEP suggests that the Commission adopt all of its 18 recommendations, some of which are summarized below:

¬ requiring all utility-owned projects to be subject to a competitive solicitation;

¬ not allowing utilities to arbitrarily exclude projects, especially repowering projects, from solicitations;

¬ authorizing additional procurement for the three IOUs, as long as all procurement is through a competitive solicitation;

¬ requiring the use of an IE, hired by the ED, in all RFOs,

¬ eliminating the use of DE for the evaluation of PPAs;

¬ endorsing the principles of inclusion, fairness, transparency, clarity and oversight to guide the development of competitive solicitations; and

¬ making utility-owned plants face the same risks and incentives faced by non-utility participants.