ALJ/CAB/jva Mailed 12/16/2005

Decision 05-12-021 December 15, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Promote Policy and Program Coordination and Integration in Electric Utility Resource Planning.

Rulemaking 04-04-003 (Filed April 1, 2004)

OPINION ON REALLOCATION OF
DEPARTMENT OF WATER RESOURCES' CONTRACTS

I. Summary

This decision confirms the allocation of the Department of Water Resources' (DWR) Kings River Conservation District (Kings River) contract for operational purposes to Pacific Gas and Electric Company (PG&E), and the allocation of the DWR's City and County of San Francisco (CCSF) contract to PG&E, subject to the terms and conditions of the contract becoming final. The Williams Product D units (Williams) contract is allocated to Southern California Edison Company (SCE) as of January 1, 2007. We preserve the status quo with the two other DWR contracts at issue in this proceeding. The Sempra Energy (Sempra) contract will remain with SCE and the Sunrise Power Company (Sunrise) contract will stay with San Diego Gas & Electric Company (SDG&E). While we are not reallocating these contracts, the Investor-Owned Utilities (IOUs) are free to negotiate mutually agreeable allocations that allow each IOU to maintain grid reliability.