COMMENTS

PU Code section 311(g)(1) provides that this resolution must be served on all parties and subject to at least 30 days public review and comment prior to a vote of the Commission.

Commission Rule 77.7 implements provisions of Public Utilities Code Section 311(g) for public review and comment by parties on Commission decisions and alternates. In the interest of public necessity²¹ as set forth in Rule 77.7(f)(9), the Commission may reduce or waive the 30-day period for public review and comment for draft decisions (and resolutions) and may reduce, but not waive, the public review and comment period for alternates.

In D.03-04-029, the Commission found that the "initial Utility Gas Supply Plans should be subject to expedited Commission review and approval."

Comment Period on Draft Resolution E-3833

On June 24, 2003, the Energy Division circulated draft resolution E-3833 for public comment to parties in SCE AL 1701-E. The draft resolution was also circulated via email on June 25, 2003 to SCE's Procurement Review Group (PRG). Comments were due on Thursday, July 3, 2003. Reply comments were due on Tuesday, July 8, 2003. Comments were filed by SCE and DWR. Reply comments were filed only by DWR.

On July 2, 2003, DWR emailed separate draft Fuels Protocols for SCE, PG&E, and SDG&E to the Energy Division. DWR indicated that these were non-public documents. The same day, Energy Division circulated draft Fuels Protocols specific to SCE via email to the SCE PRG. No feedback was received on the draft Fuels Protocols specific to SCE from the SCE PRG.

SCE had two comments on draft Resolution E-3833:

· "The Commission should clarify what course of conduct SCE should take during the interim period of time before the Commission and DWR resolve any conflict that may arise between the Commission-approved GSP and specific DWR requirements."

· "The Commission should require SCE to file its next GSP on October 17, 2003, and not on August 15, 2003." (SCE Comments, page 2)

In its comments on the draft resolution, ²² DWR suggested that the Commission should consider "adopting uniform language in the Resolutions adopting the GSPs" (DWR Comments, page 1). In its July 8, 2003 reply comments regarding draft resolution E-3833, DWR essentially reiterated points already made in its comments.

The draft resolution has been modified in response to comments and reply comment, specifically, (1) to recognize that the SCE is bound by both the gas supply plan as well as the approval of DWR, and that DWR is at liberty to impose additional restrictions and requirements outside the scope of the gas supply plan; (2) to adopt DWR's proposed language regarding the Fuels Protocols as shown below, and (3) to require five business days to validate gas invoices, instead of two.

The following language in the draft resolution at page 11 as circulated on June 24, 2003 has been deleted:

"We recommend that DWR file any draft and final "Fuel Protocols" as further supplemental comments to SCE AL 1701-E and provide, at least via email, a redacted copy on the R.01-10-024 service list, and an unredacted copy to the SCE PRG. Alternatively, DWR and SCE could opt to include the Fuel Protocols in the next gas supply plan filing."

DWR's proposed language regarding the Fuels Protocols has been added to the resolution as noted above:

"The Commission is not adopting DWR's Fuels Protocols as part of the utilities' Gas Supply Plan approval process. DWR has informed the Commission that it will provide the Commission a final copy of its Fuels Protocols once they are complete. To the extent that DWR's Fuels Protocols only authorize a subset of what the Commission has approved, the utilities must operate within the limitations of DWR's authorization." (DWR Comments, page 2)

The draft resolution has also been modified to require that all gas supply plans meet all standards in adopted procurement plans. Findings 10, 12, 13, and 19 are added, along with Order 5.