Comments on Draft Decision

Rule 77.7(f)(9) provides for reduction or waiver of the 30-day period for public review and comment when public necessity requires such reduction. We must balance whether the public necessity of adopting an order outweighs the public interest in having the full 30-day period for review and comment. We are convinced that the petition of SCE as expanded falls under Rule 77.7(f)(9), and for that reason, we established a shortened period for comments on the draft decision.

On January 16, 2001, timely comments were received by SCE, PG&E, SDG&E, jointly by Caithness, FPL, and EWC (Caithness/FPL/EWC), IEP, Watson, Coastal, jointly by CCC and CAC (CCC/CAC), jointly by Tractebel and TEMI (Tractebel/TEMI), Calpine Corporation (Calpine), and CE. No reply comments were allowed.

With respect to modifications to the factor and adoption of the Malin index as a replacement for Topock in the Transition Formula, parties generally reiterate comments made in prior pleadings. Errors in the factor formula were identified and changes have been made as a result. PG&E recommends that we adopt the Malin index only when its use would result in a price lower than use of Topock. SDG&E asks that we modify its factor in the same way that we modify SCE's factor.

In general, parties' comments focus on the draft decision's proposal of a ceiling price for payments to QFs. Commenters representing QFs unanimously oppose adoption of a price ceiling as inconsistent with PURPA, Section 390, and the December 15, 2000 FERC Order. SDG&E also opposes adoption of a price Transition comparing the imposition of a Transition to setting a cap on retail rates without addressing wholesale pricing issues. PG&E and SCE support adoption of a cap. We have made modifications to respond to comments throughout the decision.