STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
October 21, 2002 Agenda ID #1272
and
Agenda ID #1274
TO: PARTIES OF RECORD IN APPLICATION 01-03-036
These are the proposed decision of Administrative Law Judge (ALJ) Cooke previously designated as the principal hearing officer in this proceeding and the alternate proposed decision of Commissioner Duque. They will not appear on the Commission's agenda for at least 30 days after the date they are mailed. This matter was categorized as ratesetting and is subject to Pub. Util. Code § 1701.3(c). Pursuant to Resolution ALJ-180 a Ratesetting Deliberative Meeting to consider this matter may be held upon the request of any Commissioner. If that occurs, the Commission will prepare and mail an agenda for the Ratesetting Deliberative Meeting 10 days beforehand, and will advise the parties of this fact, and of the related ex parte communications prohibition period.
The Commission may act at the regular meeting, or it may postpone action until later. If action is postponed, the Commission will announce whether and when there will be a further prohibition on communications.
When the Commission acts on the proposed decision or the alternate, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Parties to the proceeding may file comments on the proposed decision and alternate proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 25 pages. Finally, comments must be served separately on the ALJ and all Commissioners, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.
/s/ ANGELA K. MINKIN for
Carol A. Brown, Interim Chief
Administrative Law Judge
CAB:tcg
ALJ/MLC/tcg DRAFT Agenda ID #1272
Decision PROPOSED DECISION OF ALJ COOKE (Mailed 10/21/2002)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of San Diego Gas & Electric Company (U 902-E) for a Certificate Of Public Convenience & Necessity Valley-Rainbow 500kV Inter-Connect Project. |
Application 01-03-036 (Filed March 23, 2001) |
OPINION ON THE NEED FOR ADDITIONAL
TRANSMISSION CAPACITY TO SERVE THE
SAN DIEGO GAS & ELECTRIC COMPANY SERVICE TERRITORY
OPINION ON THE NEED FOR ADDITIONAL TRANSMISSION
CAPACITY TO SERVE THE SAN DIEGO GAS & ELECTRIC
COMPANY SERVICE TERRITORY 1
1. Summary 2
2. Project Description 3
3. Procedural Background 4
4. Request 5
5. Jurisdictional Issues 5
6. Reliability Need 7
6.1. What is the appropriate time horizon over which to
assess the need for SDG&E's Proposed Project? 9
6.1.0. Discussion 14
6.2. What is a reasonable supply forecast? 17
6.2.0. Will existing in-basin generating units remain on line? 19
6.2.0.1. RAMCO 19
6.2.0.2. Navy 21
6.2.0.3. Retirements of Encina and South Bay 22
6.2.0.4. Reasonable existing generation assumptions 23
6.2.1. Will new generating resources be built in SDG&E's
service territory? 25
6.2.1.1. Otay Mesa Generating Project 25
6.2.1.2. Palomar 30
6.2.1.3. Additional RAMCO units 31
6.2.1.4. Repowering and New Construction at
Existing Units 31
6.2.1.5. Reasonable new generation assumptions 32
6.2.2. What is the relevant G-1 event under reasonable
existing and new generation assumptions? 34
6.2.3. Will the Path 44 (South-of-SONGS) non-simultaneous import limit remain 2500 MW? 35
6.2.4. Will resources be available from Mexico? 36
TABLE OF CONTENTS
(Continued)
6.3. What is a reasonable demand forecast? 46
6.4. Based on these forecasts, will SDG&E have sufficient
resources to meet its customer demand over the adopted
planning horizon? 49
7. Economic Need 54
7.1. Estimated Project Costs 54
7.2. SDG&E's Economic Analysis 56
7.3. Critiques of SDG&E's Analysis 59
7.4. Discussion 65
8. Other Issues 66
9. Conclusion 67
10. Comments on Proposed Decision 68
11. Assignment of Proceeding 68
Findings of Fact 68
Conclusions of Law 71
ORDER 74
Attachment 1- Table of Acronyms
1.
