II. Background

On January 28, 2005, President Peevey issued an Assigned Commissioner's Ruling (ACR), initiating the Commission's consideration of the potential reallocation of the following DWR contracts: Sempra, Williams, Kings River, CCSF and Sunrise. Sunrise was under consideration in Rulemaking (R.) 01-10-024, a proceeding slated for closing; Kings River and CCSF were under consideration in this docket; and the other contracts were not assigned to any proceeding. The ACR set forth various reallocation proposals advanced by the IOUs, DWR and Commission's Energy Division (ED) staff.

Parties were asked to file comments on the proposed alternatives, to suggest new proposals for the allocation of the above-referenced contacts and to discuss whether workshops and/or Evidentiary Hearings (EHs) would be effective in assisting the Commission with its decision. DWR was asked to work with the IOUs to provide the Commission with information on the effect of any reallocations. Comments were received from the CCSF, PG&E, SDG&E, and SCE. Responses to the comments were received from California Independent System Operator (ISO), Office of Ratepayer Advocates (ORA), PG&E, SDG&E, Sempra Global (Sempra), and SCE.

In general, parties did not think EHs would be helpful or necessary, but they did advance various scenarios concerning the possible reallocation of the contracts, including keeping the status quo.

A Prehearing Conference (PHC) was held on April 26, 2005. Parties discussed their proposed reallocation concepts and agreed that the Commission had enough information from the comments and the statements at the PHC to proceed without further briefings or hearings.