VIII. Next Steps

In this decision, we provide additional policy guidance and direction to the utilities for their revised long-term procurement plans and continue to develop the long-term regulatory framework under which each utility will conduct integrated resource planning. We also adopt a revised ERRA procedural process.

We expect to complete all outstanding matters in this rulemaking by the end of May 2004. The outstanding matters are (1) the October 7, 2003 motion of SDG&E for approval to enter into new contracts resulting from its Grid Reliability Capacity RFPs; and (2) the workshops scheduled and discussed in this decision that are needed for the utilities to file revised 2004 long-term plans.

We should open a new procurement rulemaking in the first quarter of 2004 that specifically addresses the additional procurement issues we identify here: (1) review and adoption of revised 2004 long-term procurement plans for the three utilities; (2) the need to develop a long-term policy for expiring QF contracts; (3) review of the management audits of SDG&E's and PG&E's electric procurement transactions with their regulated affiliates; (4) address and resolve resource adequacy issues that are the subject of the workshop process; and (5) consideration of procurement incentive mechanisms for each utility. We expect to open this new procurement OIR in the first quarter of 2004.