3. Goals of this Proceeding

The primary purpose of this rulemaking is to serve as the Commission's forum to integrate all procurement policies and related programs. A key representation of this integration is the filing, review and adoption of long-term procurement plans by the IOUs. These plans will cover the period 2007 to 2016 and they will reflect all of the decisions made by the Commission since the last filing of long-term plans. In addition, this rulemaking will seek the participation of ESPs and CCAs as contributors to the state's long-term resource planning process. We leave the details of that participation to the Assigned Commissioner and assigned ALJ.

This rulemaking will serve as an umbrella proceeding to handle the procurement policy issues that do not warrant a separate rulemaking and it will provide a place to integrate all of our efforts ongoing in the other procurement related dockets, including:

1. Community Choice Aggregation (R.03-10-003);

2. Demand Response program plans (A.05-06-006 et al.);

3. Critical Peak Pricing (A.05-01-016 et al.);

4. Distributed Generation (R.04-03-017 and its successor);

5. Energy Efficiency (R.01-08-028 and its successor);

6. Avoided Cost and Qualifying Facility (QF) Pricing (R.04-04-025);

7. Renewable Portfolio Standards (R.04-04-026 and its successor);

8. Transmission OII, I.00-11-001; and Renewable Energy Transmission (I.05-09-005);

9. Confidentiality (R.05-06-040); and

10. Resource Adequacy Requirements (R.05-12-013).

This rulemaking will host any other procurement policy issues that need to be addressed by the Commission in a comprehensive or integrated fashion.

A. Review of the Need for Policies to Support New Generation

The first order of business for this proceeding will be to review additional policies to support new generation and long-term contracts in California, including consideration of transitional and/or permanent mechanisms (e.g., cost allocation and benefit sharing, or some other alternative) which can ensure construction of and investment in new generation in a timely fashion.

B. Review and Adoption of Long-Term Plans

The second order of business for this proceeding will be to serve as the forum for the Commission's biennial procurement review process, established pursuant to AB57, D.04-01-050 and D.04-12-048, which requires that IOUs submit long-term procurement plans that serve as the basis for utility procurement activities until refinement during the next biennial planning cycle. Long-term procurement plans are the place to comprehensively integrate all Commission decisions from all procurement related proceedings. The long-term plan review process will reflect an integrated resource planning approach to planning for the future of the state's electric system.