2. Background
In R.01-10-024, the Commission worked to give the IOUs procurement authority, often referred to as "AB57 authority," including the authority to sign contracts for up to five years' duration. Utilities resumed procurement on January 1, 2003, and undertook power procurement in 2003 in accordance with Commission approved 2003 short-term plans. In D.03-12-062, the Commission approved the utilities' 2004 short-term procurement plans. In D.04-01-050, the Commission established that each load serving entity has an obligation to acquire sufficient reserves for its customer loads, endorsed a hybrid market structure, and extended utilities' procurement authority into 2005. In R.04-04-003 (especially D.04-12-048), the Commission approved the IOUs' long-term procurement plans and gave the IOUs procurement authority for short, medium, and long term contracts for the planning period 2005 through 2014.
On December 2, 2005, the Assigned Commissioner in R.04-04-003 issued a ruling that expressed an intention to open a new proceeding for the next long-term procurement review cycle.7 Attached to the December 2nd ACR was a draft staff proposal for the organization of the upcoming cycle of the procurement proceeding. A workshop was held on December 14, 2005 to discuss the staff proposal, and parties were offered the opportunity to issue pre- and post-workshop comments. The central focus of the workshop and related comments was to inform the efficient development of this OIR, as well as its subsequent scoping memo and schedule.
Several parties8 submitted pre-workshop comments on the staff proposal. The December 14, 2005 workshop was attended by numerous agency staff from the CPUC and the CEC, CAISO, all three IOUs (PG&E, SCE and SDG&E), many of the entities that filed pre-workshop comments, and others interested in the issues presented.9 Eleven parties10 submitted post-workshop comments, and eight parties11 submitted post-workshop reply comments.
7 Assigned Commissioner's Ruling Regarding Next Steps in Procurement Proceeding (dated December 2, 2005).
8 Division of Ratepayer Advocates, California Clean DG Coalition, Mirant California, LLC, Mirant Delta, LLC and Mirant Potero, LLC, Alliance for Retail Energy Markets, Western Power Trading Forum, The Utility Reform Network, PG&E, Sempra Global, Natural Resources Defense Council, SCE, Silicon Valley Leadership Group, Cogeneration Association of California and the Energy Producers & Users Coalition, West Coast Power, Constellation Energy Commodities Group, Inc. and Constellation New Energy, Inc., Californians for Renewable Energy, Inc., San Diego Association of Governments, and Mountain Utilities.
9 City of Chula Vista, CLECA, Calpine Corporation (Calpine), City and County of San Francisco, League of Women Voters, Independent Energy Producers (IEP), and Van Horn Consulting, Strategic Energy, CEERT EMS, Union of Concerned Scientists, FERC, Williams, CalWind Energy Associates, McCarthy & Berlin, MRW Associates, San Diego Regional Energy Office, CDWR CERS, Cities of Temucula, Hamet and Muneta, Energy Policy Initiatives Center, CMUA, ESH, FPL Energy, Green Power and SLD Energy Solutions.
10 PG&E, Independent Energy Producers Association, Southern California Energy, National Grid, San Diego Gas & Electric, Division of Ratepayer Advocates, City and County of San Francisco, WPTF, California Farm Bureau, Alliance for Retail Energy Markets, Constellation Energy Commodities Group, Inc. and Constellation Newenergy, Inc.
11 PG&E, Union of Concerned Scientists, Constellation Energy Commodities Group, Inc. and Constellation Newenergy, Inc., Alliance for Retail Energy Markets, Independent Energy Producers Association, NRDC, Western Power Trading Forum, and Division of Ratepayer Advocates.
