Requirements of CAM Group Members:

Participation in the CAM Group - The current PRG participants will be participants of the CAM Group, if they so choose, subject to their execution of a Non-Disclosure Agreement ("NDA") for the CAM Group. Commission personnel may participate in a utility's CAM Group under the same conditions that they participate in the utility's PRG. A reasonable number of non-wholesale market representatives that are end-use DA, CCA, and other non-bundled customers, as well as non-wholesale market participant groups whose representation includes such customers, shall be allowed to participate in each utility's CAM Group.

Intervenor Compensation - PRG participants should continue to be eligible to obtain intervenor compensation for their participation in the CAM Group under the same conditions that the Commission's rules govern such compensation for PRG participation. Non-PRG participants who are authorized to receive intervenor compensation shall qualify for such compensation for their activities in the CAM Group pursuant to the Commission's rules that govern such compensation.

Qualities of Non-PRG Participants - Each non-PRG participant in the CAM Group will either be an end-use customer or an individual hired to represent end-use customers' interests, and shall not be a wholesale market participant or represent a wholesale market participant. For example, the representative for DA customers could be a non-wholesale market participant end-use customer who has accounts supplied through DA service. The CCA representative could be a non-wholesale market participant resident of the community that has implemented a CCA. Alternatively, the non-PRG CAM Group participants could be consultants or attorneys for groups that represent DA end-use customers, CCAs, or other non-bundled customers in whole or in part in proceedings before the Commission, provided that the representatives execute and comply with the CAM Group NDA.

Obligations of non-PRG Members - The non-PRG participants of the CAM Group are obligated to sign the same NDA that is signed by the PRG participants, except that it will be modified only as necessary to reflect the new organization of customer interests in the CAM Group. Subsequent changes to the PRG and CAM Group NDAs shall be done in a consistent manner, except as necessary to delineate the composition of each advisory group.

Disputes - Disputes regarding the appropriateness of an entity (or its representatives) participating in the CAM Group shall be submitted to the Commission for resolution.

Effective Period - Each utility shall be required to establish its CAM Group for solicitations of new generation projects subject to the CAM in advance of the commencement of such procurement activity. However, utilities shall be permitted to continue to utilize their existing PRG process in lieu of the CAM Group process to conclude existing, on-going CAM procurement activity, provided that the utilities shall make final contract selection decisions within 60 days of a final decision in Track 2 of the 2006 Long-Term Procurement Plan Proceeding (R.06-02-013).

(END OF APPENDIX D)

APPENDIX E

2006 LTPP Compliance Table

Forecasts, Resources, and Need Determination · IOUs are to use the CEC's forecast in their LTPPs. · Until a new PRM methodology is developed, need determination shall be based on the CEC's base forecast under baseline (1-in-2) temperature conditions pursuant to D.04-12-048. · The non-overlapping portion of IOU's uncommitted EE goals not included in the CEC forecast should be treated as a resource.

Procurement Process Issues PRG · IOUs are to provide PRG members with meeting agendas and materials a minimum of 48 hours in advance of the PRG meeting, unless there are unusual, extenuating circumstances that the IOU communicates to PRG members in an email announcing a meeting or distributing meeting materials on a tighter timeframe. · The IOUs are to provide confidential meeting summaries to PRG members that include a list of attending PRG members (including the organizations represented), a summary of topics presented and discussed, and a list of information requested or offered to be supplied after the meeting, (and identify the requesting party). · The IOUs are to individually set up and maintain a web-based PRG calendar that can be accessed and updated by the IOU. · The IOUs are to provide the following information to the public through a web-based forum: date, meeting time and duration of the meeting; the individuals participating in the meeting and organization represented by the individual; and a list of non-confidential items discussed. · When procuring or potentially procuring CAM resources, the IOUs are to utilize an advisory CAM Group consistent with the proposal as presented in Attachment D. · The IOUs are required to consult with their PRGs for any transaction with a delivery term greater than three months' duration. IE · Each IOU, in conjunction with each respective PRG, shall develop a pool of at least three, but preferably more, IEs to be used beginning January 1, 2009. Each IOU should develop and periodically add to its IE pool as follows: 1. The IOU shall develop a list of prospective IEs via industry contacts, literature searches, PRG recommendations, and similar methods, solicit information from the prospective IEs and circulate the list of candidates and their "resumes" to the PRG and ED staff for feedback. 2. The IOU should rely on the guidance regarding IE expertise and qualifications provided in D.04-12-048. However, these qualifications should represent the minimum necessary for an IE to be effective, and the IOU and the PRG should include any additional relevant information that it has gained thru its experiences implementing the IE requirements; 3. The IOU and PRG shall interview a subset of prospective candidates that the IOU, PRG, and ED staff deem most suitable for the role (IOUs should arrange for the PRG to conduct interviews with candidate IEs in isolation from the contracting IOU); 4. The PRG shall coordinate the development and submittal to the IOU its recommendations on each prospective candidate (including the general consensus and any opposition to the consensus). The IOU shall submit a written list of qualified IEs to ED to add to the contracting IOU's pool. The list must contain the recommendations of the PRG that were submitted to the IOU. ED will evaluate the proposed IE's competencies based on the guidelines in D.04-12-048 as well as evaluating the IEs independence including any conflicts of interest. ED shall give final approval for inclusion of an IE in the IE pool by letter to the submitting IOU. ED will also have the right to final approval of the use of a particular IE for each RFO. 5. Beyond the development of the initial IE pool, additional IE's may be added to the pool by following the same procedures listed above. 6. An IE may remain in the IE pool for two years, after which he/she must go through a reevaluation process based upon the inclusion criteria to assure continued compliance. The reevaluation process will involve additional reviews of the IE candidate by the PRG, IOU and ED staff including additional interviews, if necessary 7. The IOU shall develop a pro forma contract to be used each time it contracts with an IE. If deviations from the pro forma contract are necessary, the modifications must be fully supported when the IOU seeks final approval of the contract. This pro forma contract shall be submitted as part of the next LTPP filing and will be subject to Commission approval. · Each IOU is to provide the name and information of the IE for each IOU, the type of procurement solicitation the IE was used for and the amount of money involved in the procurement solicitation be reported to the IOUs PRG before and after the solicitation takes place. · An IE shall be contracted with and retained for all competitive solicitations that involve affiliate transactions or utility-owned or utility-turnkey bids and for all competitive RFOs seeking products greater than three months in length regardless of the bidders. Competitive RFOs include RFOs issued to satisfy service area need and supply side resources not including EE and DR. For solicitations of less than five years, the IE report shall be filed with the QCR. An IE shall be utilized for all competitive RFOs regardless of length, the bidders or the type of the product being sought. For solicitations of less than five years, the IE report shall be filed with the QCR. · The IOUs, in consultation with the PRG and ED, shall develop comprehensive conflict of interest disclosure requirements for the IE. An IE may be disqualified from participating in an RFO process if there are particular egregious conflicts of interest that arise during the contract. The conflict of interest disclosure requirements shall be approved along with the standard contracts in the next LTPPs proceeding. · In order to clarify the information required in IE reports, we direct ED to develop a template for IEs to use when developing their reports. RFO & RFO Process · The IOUs shall use a project application template developed by ED when developing an application for an approval of winning bid projects. · The IOUs are to hold a meeting with the IE, PRG and ED to outline their plans and solicit feedback prior to drafting RFO bid documents. Draft RFO bid documents are to be developed under the oversight of an IE, vetted through the PRGs and any differences resolved by ED staff in advance of the public issuance of the bid documents. · If an IOU needs new fossil resources not formally authorized in a LTPP decision, the IOU must make a showing through an Advice Letter that unusual or extreme circumstances warrant such an action. · Debt Equivalence is no longer applicable to the evaluation of PPA bids in an RFO. LTPP Compliance Filing · The IOUs are to develop a common numbering system, similar to the one used to track tariff revisions (GO 96-B 8.4.2), with a redline strikeout method, to track revisions to each Commission-approved LTPP. All IOU updates or modifications to the LTPPs, via the Advice Letter process, are to include redlined pages of the existing procurement plan as well as "cleaned-up" replacement pages which include the tariff-like numbering ordered above. · The IOUs are required to file conformed 2006 LTPPs, via a compliance filing [Tier Three Advice Letter] no later than 90 days from the date of this decision. The conformed 2006 LTPPs shall incorporate all of the directives contained in the body of this decision as well as any updates filed through the Commission's Advice Letter process between the issuance of this decision and the due date of the compliance filing. · We direct the utilities to work with the Energy Division to develop a format for the compliance filing. Utility-Owned Generation & Competitive Solicitations ● IOUs' RFOs are changed in the following ways: - RFOs may not seek both PPAs and UOG bids. - UOG resources are to be brought to the Commission via an application that includes justification for the UOG due to a unique circumstance. - IOUs may no longer consider as an option in their competitive RFOs the transfer of the fully depreciated resource underlying the PPA to the IOUs. - Cost- and savings-ratemaking mechanisms will be considered on a case-by-case basis and the requested treatment must be justified by unique circumstances. Risk Management & Fuel Supply Plans · ED, the PRG and the IOUs shall address the issues of concernregardig the risk management proposals discussed in the context of this decision with each respective IOU in future PRG meetings As a result, each IOU should submit revised risk management proposals via Advice Letter. In the interim, we require the two IOUs to continue operating under their existing Commission-approved risk management plans. General Procurement Issues · IOUs are to consider the use of Brownfield sites first before building new generation on Greenfield sites, subject to the parameters set forth in the decision. · ED, the IOUs and interested parties are to create a AB 57 Procurement Plan Implementation Manual of each IOU that includes a comprehensive set of procurement rules, including any IOU-specific requirements, that can be accessed by all interested market participants to determine each IOU's compliance with its AB 57 Procurement Plan. This manual will not substitute for a Commission decision and in case of any conflict, the Commission's decision will govern. · An IOU must publicly reveal the names of winning bidders after key commercial terms have been finalized, within thirty days of filing an application, or withdraw the application until the bidder's identity and other required information can be released. The actual contract does not have to be revealed.

(END OF APPENDIX E)