ALJ/TJS/CAB/lil Date of Issuance 11/12/2008

Decision 08-11-004 November 6, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Expedited Approval of The Tesla Generating Station And Issuance of a Certificate of Public Convenience and Necessity and Request For Interim Order Authorizing Early Project Commitment to Stabilize Costs. (U39E)

Application 08-07-018
(Filed July 18, 2008)

DECISION GRANTING MOTION TO DISMISS OF WESTERN POWER TRADING FORUM/THE ALLIANCE FOR RETAIL ENERGY MARKETS AND THE INDEPENDENT ENERGY PRODUCERS ASSOCIATION

TABLE OF CONTENTS

Title Page

DECISION GRANTING MOTION TO DISMISS OF WESTERN POWER TRADING FORUM/THE ALLIANCE FOR RETAIL ENERGY MARKETS
AND THE INDEPENDENT ENERGY PRODUCERS ASSOCIATION 1 1

1. Summary 2 2

2. Procedural Background 2 2

3. Legal Authority 8 8

4. Issues before the Commission 9 9

4.1. Postion of Parties 9 9

4.2. Ruling and Rationale of ACR 13 13

4.3. Analysis: Motion of WPTF/AReM and IEP Warrants Dismissal
of Application 16 16

5. Motions 18 18

6. Comments on Proposed Decision 19 19

7. Conclusion 23 23

8. Assignment of Proceeding 24 24

Finding of Fact 24 24

Conclusions of Law 24 24

ORDER 24 24

DECISION GRANTING MOTION TO DISMISS OF WESTERN POWER TRADING FORUM/THE ALLIANCE FOR RETAIL ENERGY MARKETS AND THE INDEPENDENT ENERGY PRODUCERS ASSOCIATION

1. Summary

This decision grants the motions to dismiss of the Western Power Trading Forum/the Alliance for Retail Energy Markets and the Independent Energy Producers Association the Application of Pacific Gas and Electric Company (PG&E) for Expedited Approval of the Tesla Generating Station and Issuance of a Certificate of Public Convenience and Necessity. This is reasonable because PG&E's proposal fails to conform to Commission policies under which all long-term power should be obtained through "competitive procurements, rather than through preemptive actions by the Investor-owned Utilities, except in truly extraordinary circumstances."¹

More specifically, the Commission finds that facts that PG&E has alleged in its application do not adequately establish that conducting a request for offer is infeasible; a central requirement to proposing utility owned generation outside of a competitive process, as required by Decision 07-12-052.²

¹ Decision (D.) 07-12-042 at 209 (emphasis in original).

² Id. at 210-211.