2. Procedural History

A prehearing conference (PHC) in Phase 2 was held on July 10, 2001 to identify high priority in-state upgrades that were not being evaluated in other proceedings before the Commission and that could produce significant economic benefits to ratepayers. Based on the discussion at the PHC, the assigned Administrative Law Judge (ALJ) scheduled evidentiary hearings to evaluate the net economic benefits to ratepayers of relieving two potential in-state transmission constraints in Southern California: (1) west of Miguel and (2) at the Imperial Valley substation.⁵ She directed respondents and interested parties to present testimony on the potential for generation projects coming on line that would trigger constraints or congestion in these areas, the costs of alternatives to relieve the constraints as well as the allocation of benefits between ratepayers and project developers.

SDG&E filed direct testimony on September 17, 2001. The Border Generation Group (Border Generation), comprised of Calpine Corporation, Coral Power L.L.C, Intergen, PG&E National Energy Group, and Sempra Energy Resources, filed intervenor testimony on October 11, 2001. SDG&E filed rebuttal testimony on October 19, 2001. SDG&E, the Border Generation Group and the Office of Ratepayer Advocates ("Joint Parties") filed a Joint Recommendation as a late-filed exhibit on October 26, 2001.

By ruling dated October 26, 2001, the assigned ALJ adopted a protective order and nondisclosure agreement to govern the use of confidential and proprietary information presented in this proceeding.

Evidentiary hearings were held on October 29 and 30, 2001 in San Francisco. Briefing was bifurcated to first address the applicability of GO 131-D to the proposed projects, and then to address economic need. On November 13, 2001, SDG&E filed its legal analysis of GO 131-D, and ORA filed a reply brief concurring with SDG&E's position. Opening briefs on all other issues were filed by SDG&E, Border Generation, and ORA on November 21, 2001. In their opening briefs, SDG&E and Border Generation proposed somewhat different milestone schedules for coordinating the construction of the Miguel-Mission and Imperial-Valley Projects with construction of new generation projects. On December 3, 2001, SDG&E filed a reply brief together with a milestone schedule jointly sponsored by SDG&E and Border Generation.