IV. PRELIMINARY SCOPING MEMO

Rule 6(c)(2) of our Rules of Practice and Procedure⁴ provides that an OIR "shall preliminarily determine the category and need for hearing, and shall attach a preliminary scoping memo." This OIR is preliminarily determined to be quasi-legislative, as that term is defined in Rule 5(d). It is contemplated that this proceeding will be conducted through a written record, with no evidentiary hearing for this phase, and that an order will issue based on the comments timely filed in this docket.

The scope of this initial phase of the OIR is to adopt rules by which the designated utilities are each required to sign up for a proportionate amount of turned back capacity that is not subscribed to by other replacement shippers serving California. As a corollary to this proposal, the Commission finds just and reasonable and pre-approves the California utilities subscribing to this turned back capacity. All other related issues, such as the allocation among the California utilities' customers for the recovery of these costs, or any necessary adjustments to a utility company's core procurement incentive mechanism, will be addressed in a later phase of this proceeding.

Interested parties are invited to file comments to these proposals. In addition to commenting on these two proposals, parties filing comments shall include in their comments any objections they may have regarding the categorization of this proceeding as quasi-legislative, as well as whether there are any objections to this preliminary scoping memo, or to the expedited schedule set forth herein.

Comments shall conform to the requirements of Rule 14.5 and opening comments shall be filed with the Commission's Docket Office and served no later than July 8, 2002. Reply comments are limited to ten pages and are due July 12, 2002.

In accordance with Rule 6.3 and 6(c)(2) we provide a preliminary schedule for Phase I. Phase II scheduling will be addressed in a subsequent ruling.