2. Background
In D.02-09-053, the Commission ordered PG&E, SDG&E and SCE to assume the operational, dispatch and administrative functions for certain power supply contracts entered into by DWR. The utilities were also ordered to jointly file Operating Agreements with DWR. On December 19, 2002, after several unsuccessful attempts by the utilities and DWR to reach consensus on Operating Agreements, the Commission adopted D.02-12-069, ordering the utilities to enter into and comply with the Operating Orders attached therein. On December 20, 2002, DWR executed an Operating Agreement with PG&E and another with SDG&E. PG&E and SDG&E filed requests for approval of the Operating Agreements on December 20, 2002, respectively.
In D.03-04-029, dated April 3, 2003, the Commission approved, with modifications, the Operating Agreements that DWR executed with PG&E and SDG&E. PG&E and SDG&E submitted advice letters, attaching the modified Operating Agreements, as directed by D.03-04-029.1 The approved Operating Agreements describe and define the respective duties of the utilities and DWR with respect to the operation and administration of the DWR contracts, including the management of gas tolling provisions and reporting requirements, consequences of default, limitations on liability, confidentiality of information, audit rights and dispute resolution.
1 SCE did not enter into an Operating Agreement with DWR, and therefore remains subject to the Operating Order adopted in D.02-12-069, as modified by D.03-12-062.
