ALJ/MEG/k47 DRAFT Item 1

3/15/2001

Decision DRAFT DECISION OF ALJ GOTTSTEIN (Mailed February 14, 2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation into Implementation of Assembly Bill 970 regarding the identification of electric transmission and distribution constraints, actions to resolve those constraints, and related matters affecting the reliability of electric supply.

Investigation 00-11-001 (Filed November 2, 2000)

INTERIM OPINION ON TRANSMISSION

UPGRADES NEEDED FOR SUMMER 2001 (PHASE 1)

Summary

This decision complies with the requirements of AB 970 to "identify and undertake those actions necessary to reduce or remove constraints on the state's existing electrical transmission and distribution system, including, but not limited to, reconductoring of transmission lines, the addition of capacitors to increase voltage, the reinforcement of existing transmission capacity, and the installation of new transformer banks." (Public Utilities Code Section 399.15(a)(1), added by Assembly Bill 970 signed September 6, 2000.)

On the basis of comments and information presented in this proceeding, we direct the utilities to undertake thirty-three transmission projects to relieve system congestion by this summer in specified areas of the state. (See Table 1.) They are currently in various stages of development. The utilities estimate the combined cost of these transmission projects to be approximately $120 million. The utilities should continue submitting monthly status reports on these projects until further notice.

Today's decision also identifies potential system constraints that need to be addressed for the 2002-2005 timeframe. In Phase 2 of this proceeding, we will examine the range of options for removing these constraints, along with other longer-term transmission planning issues.