4. Phase II Issue Areas

4.1. System vs. Bundled Methodology

In D.07-12-052, we acknowledged comments from parties identifying gaps in the Commissions' rules with regard to the extent to which IOUs can elect the cost allocation mechanism (CAM) for new generation. The Commission heard at least two major concerns in the absence of a standard methodology or consistent practices for identifying system vs. bundled resource needs. First, "it is unclear how Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E) will coordinate the identification of system need to ensure that they do not procure duplicate system resources."42 Second, "there is no way to ensure whether an IOU election to utilize the CAM for a new resource is appropriate."43 In other words, energy service provider (ESP) load may grow at a different rate than bundled load and there should not be a cross-subsidy between the two.

Therefore, in this proceeding, interested parties will be instructed to develop proposals for methodologies for identifying bundled- versus system-driven resource needs to:

· Coordinate the identification of system need to ensure that SCE and SDG&E do not procure duplicate system resources;

· Capture respective growth trends of bundled and unbundled components of service area load;

· Identify how load growth trends and any resources ESPs are procuring to serve their own load can be included in this analysis, given the confidential nature of these data;

· Determine how to allocate the cost of new resources procured in the IOUs' RFOs to the bundled or system customers, based on this analysis (particularly given the "lumpiness" of resource procurement and the different types of resources procured in each solicitation). This could either take the form of a straightforward approximation or by importing an existing customer class allocation structure from the IOU General Rate Case proceedings, but should not take the form of the development of an entirely new customer class allocation structure for the CAM mechanism;

· Develop mechanisms that address instances in which any LSEs' development plans do not materialize and result in a greater amount of system resource needs than predicted; and

· Explore how re-opening of DA, or how Community Choice Aggregator or Electric Service Provider election to opt-out of CAM, would affect the proposed methodology (i.e., can a sufficiently robust methodology be developed at this time, or will the methodology need to be revised, if and when DA is reopened).

4.2. Refinements to Bid Evaluation in Competitive Solicitations with Utility-Owned Generation (UOG) Bids

The 2006 LTPP decision (D.07-12-052) identified several concerns regarding whether the process for evaluating UOG bids against power purchase agreements bids is fair, just and reasonable. In particular, the decision identified the need to determine whether and how bid criteria can be developed that will provide meaningful, "apples-to-apples" comparisons of IOU and Independent Power Producer (IPP) bids. Further, D.07-12-052 posed several questions that needed to be addressed in head-to-head RFOs with UOG bids:

· How IOU bid development costs would be addressed (e.g., are these costs "at-risk" or are they ratepayer-guaranteed?);

· To the extent that penalty and reward components are added to UOG bids to make them more consistent with IPP bids, whether and how limits would be place on the participation of the IOU's ratebased resources on the proposed project (i.e., what would prevent an IOU from re-directing its ratebased staff and other resources well in excess of the amounts estimated built in its winning bid); or

· What measures will be taken to prevent sharing of sensitive information between staff involved in developing utility bids and staff who create the bid evaluation criteria and select winning bids?

Phase II of the 2008 LTPP proceeding may address these questions and any proposals on head-to-head competition methodology developed in response to D.07-12-052.

4.3. Other Issues In Scope

Based on pre-workshop comments and outcomes from the Preliminary Scoping Memo workshop, the assigned Administrative Law Judge and assigned Commissioner may decide, by ruling, that additional issues brought by parties warrant inclusion in the scope of this proceeding.

(END OF APPENDIX A)

APPENDIX B

RESPONDENT LOAD SERVING ENTITIES

(Public Utilities Code Section 380(j))

Electric Corporations

David Coyle (909)

General Manager

Anza Electric Co-Operative, Inc.

58470 Highway 371

Anza, CA 92539-1909

Raymond R. Lee (906)

Chief Operating Officer

Mountain Utilities

P. O. Box 205

Kirkwood, CA 95646

Brian Cherry (39)

Director, Regulatory Relations

Pacific Gas and Electric Company

B10C

P. O. Box 770000

San Francisco, CA 94177

Douglas Larson (901)

Vice President, Regulation

PacifiCorp

201 S, Main

Salt Lake City, UT 84140

Robert Marshall (908)

General Manager

Plumas Sierra Rural Electric Coop.

P. O. Box 2000

Portola, CA 96122-2000

Steve Rahon (902)

Director, Tariff & Regulatory Accounts

San Diego Gas & Electric Company

CP32C

8330 Century Park Court

San Diego, CA 92123-1548

Mary Simmons (903)

Rate Regulatory Relations

Sierra Pacific Power Company

P. O. Box 10100

6100 Neal Road

Reno, NV 89520-0026

Akbar Jazayeiri (338)

Director of Revenue & Tariffs

Southern California Edison Company

P. O. Box 800

2241 Walnut Grove Avenue

Rosemead, CA 91770

Ronald Moore (133)

Southern California Water Company

630 East Foothill Blvd.

San Dimas, CA 91773

Surprize Valley

Bear Valley

Electric Service Providers

Michael Mazur (1350)

3Phases Energy Services

2100 Sepulveda Blvd., Suite 37

Manhattan Beach, CA 90266

Frank Annunziato (1158)

American Utility Network (A.U.N.)

10705 Deer Canyon Drive

Alta Loma, CA 91737

Lili Shahriari (1355)

AOL Utility Corp.

12752 Barrett Lane

Santa Ana, CA 92705

Stacy Aguayo (1361)

APS Energy Services Company, Inc.

400 E. Van Buren Street, Suite 750

Phoenix, AZ 85004

Kevin Boudreaux (1362)

Calpine PowerAmerica-CA, LLC

4160 Dublin Blvd.

Dublin, CA 94568

George Hanson (1367)

City of Corona

Department of Water and Power

730 Corporation Yard Way

Corona, CA 92880

Inger Goodman (1092)

Commerce Energy, Inc.

600 Anton Blvd., Suite 2000

Costa Mesa, CA 92626

Bill Chen (1359)

Constellation NewEnergy, Inc.

Two California Plaza

South Grand Avenue, Suite 3800

Los Angeles, CA 90071

Hank Harris (1360)

Coral Power, L.L.C.

4445 Eastgate Mall, Suite 100

San Diego, CA 92121

Adrian Pye (1341)

Energy America, LLC

263 Tresser Blvd.,

One Stamford Plaza, Eighth Floor

Stamford, CT 06901

Robert S. Nichols (1063)

New West Energy

P.O. Box 61868

Mailing Station ISB 665

Phoenix, AZ 85082-1868

E. J. Wright (1369)

Occidental Power Services, Inc.

5 Greenway Plaza, Suite 110

Houston, TX 77046

Thomas Darton (1365)

Pilot Power Group, Inc.

9320 Chesapeake Drive, Suite 112

San Diego, CA 92123

Rick C. Noger (1370)

Praxair Plainfield, Inc.

2711 Centerville Road, Suite 400

Wilmington, DE 19808

Megan Saunders (1364)

Sempra Energy Solutions

101 Ash Street, HQ09

San Diego, CA 92101-3017

Kerry Hughes (1351)

Strategic Energy, Ltd.

7220 Avenida Encinas, Suite 120

Carlsbad, CA 92209

In addition, any electric service provider that, subsequent to the date of the order instituting this rulemaking, becomes registered to provide services within the service territory of one or more of the respondent electric corporations through direct access transactions shall, upon such registration, become a respondent to this proceeding.

Community Choice Aggregators

Any community choice aggregator that, subsequent to the date of the order instituting this rulemaking, becomes registered to provide services within the service territory of one or more of the respondent electric corporations through community choice aggregation transactions shall, upon such registration, become a respondent to this proceeding.

David Orth

San Joaquin Valley Power Authority

886 East Jensen Avenue

Fresno, CA 93725

(END OF APPENDIX B)

APPENDIX C
PUBLICLY-OWNED LSEs

Alameda Power and Telecom

Valerie O. Fong

2000 Grand Street

Alameda, CA 94501

California Department of Water Resources

Peter Garris

3310 El Camino Avenue, Suite 100

Sacramento, CA 95821

California Department of Water Resources

Susan Lee

3310 El Camino Avenue, Suite 100

Sacramento, CA 95821

City of Anaheim

Stephen Sciortino

201 S. Anaheim Boulevard, Suite 802

Anaheim, CA 92805

City of Anaheim

Mark Frazee

201 S. Anaheim Boulevard, Suite 802

Anaheim, CA 92805

City of Anaheim

Marci Edwards

202 S. Anaheim Boulevard, Suite 802

Anaheim, CA 92805

City of Azusa

Bob Tang

729 North Azusa Avenue

Azusa, CA 91702

City of Banning

Fred Mason

99 East Ramsey Avenue

Banning, CA 92220

City of Burbank

Richard Corbi

164 W. Magnolia

Burbank, CA 91503

City of Colton, Public Utilities

Jeannette Olko

150 South 10th Street

Colton, CA 92324

City of Corona

George Hanson

730 Corporation Yard Way

Corona, CA 92880

City of Glendale

Ignacio Troncoso

141 N. Glendale Avenue, 4th Level

Glendale, CA 91206

City of Palo Alto

Debra Lloyd

250 Hamilton Ave.

Palo Alto, CA 94301

City of Pasadena

Eric Klinkner

150 S. Los Robles Avenue, Suite 200

Pasadena, CA 91101

Lassen Municipal Utility District

65 S. Roop Street
Susanville, CA 96130

City of Riverside

Tom Evans

3900 Main Street

Riverside, CA 92522

City of Riverside

Gary Nolff

2911 Adams Street

Riverside, CA 92504

City of Riverside

LeeAnne Uhler

3900 Main Street

Riverside, CA 92522

City of Santa Clara, dba Silicon Valley Power

Ken Kohtz

1601 Civic Center Drive, Suite 202

Santa Clara, CA 95050

City of Santa Clara, dba Silicon Valley Power

Junona Jonas

1601 Civic Center Drive, Suite 202

Santa Clara, CA 95050

City of Vernon

Danny Garcia

4305 Santa Fe Avenue

Vernon, CA 90058

City of Vernon

Jorge Somano

4305 Santa Fe Avenue

Vernon, CA 90058

CMUA

Jerry Jordan

915 L Street, Suite 1460

Sacramento, CA 95814

CMUA

Tony Braun

916 L Street, Suite 1460

Sacramento, CA 95814

Imperial Irrigation District

Glenn O. Steiger

333 E. Barioni Blvd.

Imperial, CA 92251

Los Angeles Water & Power

Ron Deaton

111 North Hope Street

Los Angeles, CA 90012

Los Angeles Water & Power

Randy Howard

111 North Hope Street

Los Angeles, CA 90012

Modesto Irrigation District

Allen Short

1231 11th Street

Modesto, CA 95354

Metropolitan Water District Headquarters
Mailing address:
P.O. Box 54153
Los Angeles, CA 90054-0153

Northern California Power Agency

Jim Pope

180 Cirby Way

Roseville, CA 95678

Northern California Power Agency

Don Dame

180 Cirby Way

Roseville, CA 95678

Redding Electric

Jim Fielder

777 Cypress Avenue

Redding, CA 96049

Redding Electric

Tim Nichols

777 Cypress Avenue

Redding, CA 96049

Roseville Electric

Tom Habashi

2090 Hilltop Circle

Roseville, CA 95747

Roseville Electric

Tom Green

2090 Hilltop Circle

Roseville, CA 95747

Sacramento Municipal Utility District

Tom Ingwers

6301 S Street

P.O. Box 15830
Sacramento, CA 95852-1830

Sacramento Municipal Utility District

Jim Shelter

6301 S Street

P.O. Box 15830
Sacramento, CA 95852-1830

SCPPA

Bill Carnahan

225 S. Lake Avenue, Suite 1250

Pasadena, CA 91101

Turlock Irrigation District

Larry Weis

333 East Canal Drive

Turlock, CA 95380

Turlock Irrigation District

Ken Weisel

333 East Canal Drive

Turlock, CA 95380

Western Area Power Administration

Jim Kesselberg

114 Parkshore Drive

Folsom, CA 95630

Western Area Power Administration

Tom Boyko

114 Parkshore Drive

Folsom, CA 95630

City of Arcadia Water

240 West Huntington Dr.

P.O. Box 60021

Arcadia, CA 91066

City of Cerritos

P.O. Box 3127

Cerritos, CA 90703-3127

Coachella Valley Water District

P.O. Box 1058
Coachella, CA 92236

City of Compton Water

205 S. Willowbrook Ave.

Compton, CA 90220

East Valley Water District
3654 E. Highland Avenue, Suite 18
Highland, CA 92346-2607

Eastern Municipal Water District
2270 Trumble Road
P.O. Box 8300
Perris, CA 92572-8300

City of Hercules
111 Civic Drive
Hercules, CA  94547

City of Lakewood

5050 Clark Avenue

Lakewood, CA 90712

El Dorado Irrigation District

2890 Mosquito Road

Placerville, CA 95667

City of Hemet

445 E. Florida Ave.

Hemet, CA 92543

City of Inglewood Water

One Manchester Blvd.

Inglewood, CA 90301

East Bay Municipal Utility District
P.O. Box 24055
Oakland, CA 94623-1055

Gridley Municipal Utilities
685 Kentucky Street
Gridley, CA 95948

Healdsburg Municipal Electric Dept.
401 Grove Street
P.O. Box 578
Healdsburg, CA 95448

Hetch Hetchy Water & Power
City & County of San Francisco
1155 Market Street, 4th Floor
San Francisco, CA 94103

Lodi Municipal Electric System
1331 South Ham Lane
Call Box 3006
Lodi, CA 95242

Lompoc Utility Services/Electrical
100 Civic Center Plaza
Lompoc, CA 93438

Long Beach Gas Department 2
East Spring Street
Long Beach, CA 90806

Ukiah Municipal Utility District
300 Seminary Avenue
Ukiah, CA 95482

Modesto Irrigation District
1231 11th Street
Modesto, CA 95354
P.O. Box 4060
Modesto, CA 95352

Shasta Dam Public Utilities District
P.O. Box 777
Central Valley, CA 96019

Transmission Agency of Northern California
P.O. Box 661030
Sacramento, CA 95866

Placer County Water Agency
P.O. Box 667
Foresthill, CA 95631

City of Moreno Valley

14177 Frederick St.

P.O. Box 88005

Moreno Valley, CA 92552

City of Napa Water

P.O. Box 660

Napa, CA 94559

Northern California Power Agency

180 Cirby Way

Roseville, CA 95678-6420

City of Pittsburg/Pittsburg Power Company

65 Civic Avenue

Pittsburg, CA 94565

City of Pomona

City Hall

505 South Garey Ave.

Pomona, CA 91766

City of Rancho Cucamonga

10500 Civic Center Drive

Rancho Cucamonga, CA 91730

City of San Bernardino Water

300 North "D" Street

San Bernardino, CA 92418

City of San Diego Water

202 C Street

San Diego, CA 92101

City of San Francisco Water

1155 Market St., 11th floor

San Francisco, CA 94103

City of San Jose

200 East Santa Clara St.

San Jose, CA 95113

City of San Marcos
1 Civic Center Drive
San Marcos, CA 92069

City of Santa Ana Water

James G. Ross

20 Civic Center Plaza, M-21

Santa Ana, CA 92702

Silicon Valley Power

1500 Warburton Avenue

Silicon Valley, CA 95050

City of Santa Cruz Water

100 Loch Lomond Way

Felton, CA 95018

Southern California Public Power Authority

(SCPPA)

225 South Lake Avenue, Ste 1250

Pasadena, CA 91101

City of Sunnyvale

P.O. Box 3707

Sunnyvale, CA 94088-3707

City of Victorville

14343 Civic Drive

P.O. Box 5001

Victorville, CA 92393-5001

Water Replenishment District of So. Ca.

12621 E. 166th Street

Cerritos, CA 90703

City of Woodland

300 First Street

Woodland, CA 95695

City of Alhambra Water

111 South First Street

Alhambra, CA 91801

(END OF APPENDIX C)

42 D.07-12-052, at p. 117.

43 Id.

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