Assignment of Proceeding
Loretta M. Lynch is the Assigned Commissioner and John S. Wong is the assigned ALJ in this proceeding.
1. In response to D.02-09-053, on October 8, 2002, DWR submitted a memorandum and its proposed modifications to the Original Servicing Order.
2. Prior to today's decision, the existing servicing arrangement that PG&E operates under is the Original Servicing Order.
3. D.02-09-053 allocated the DWR contracts, and ordered PG&E and the other two large electric utilities, to assume all of the operational, dispatch, and administrative functions for the allocated electricity contracts, effective January 1, 2003.
4. The proposed modifications to the Original Servicing Order and related attachments have been compared to the Original Servicing Order that was approved in D.02-05-048, and have been reviewed in light of the Contract Allocation Decision.
5. One of the goals of R.01-10-024 is to allow the utilities to resume purchasing electric energy, capacity, ancillary services and related hedging instruments to fulfill their obligation to serve and meet the needs of their customers.
6. In order for PG&E and the other utilities to undertake the operational responsibilities associated with the allocated DWR contracts beginning on January 1, 2003, certain operational arrangements and servicing arrangements need to be in place before that date.
7. Certain provisions of the proposed Operating Agreement may affect certain provisions of the proposed modifications to the Original Servicing Order and related attachments.
8. The proposed Operational Agreement is being considered by the Commission in R.01-10-024.
9. The concerns of PG&E over the proposed modifications to the Original Servicing Order and related attachments have been reviewed and considered, and appropriate changes have been made as discussed in this decision.
1. All of the proposed modifications to the Original Servicing Order and the related attachments are consistent with the directives ordered in prior Commission decisions.
2. Since DWR and PG&E have been unable to agree on a mutually acceptable servicing arrangement, the Commission should adopt an arrangement in the form of the 2003 Servicing Order.
3. The 2003 Servicing Order attached to this decision should be approved.
4. PG&E should be directed to comply with the terms and conditions contained in the approved 2003 Servicing Order.
IT IS ORDERED that:
1. The marked version, attached hereto as Appendix A, and the clean version, attached hereto as Appendix B, of the "2003 Servicing Order Concerning State of California Department of Water Resources And Pacific Gas and Electric Company" (2003 Servicing Order) is approved.
2. Pacific Gas and Electric Company shall comply with all of the terms and conditions of the approved 2003 Servicing Order.
This order is effective today.
Dated December 19, 2002, at San Francisco, California.
LORETTA M. LYNCH
President
HENRY M. DUQUE
CARL W. WOOD
GEOFFREY F. BROWN
MICHAEL R. PEEVEY
Commissioners
APPENDIX A
2003 Servicing Order
APPENDIX B
2003 Servicing Order
Appendix A
Appendix A, Attachments
Appendix B
Appendix B, Attachments
