ALJ/RMD/avs/lil Date of Issuance 9/27/2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's own motion to improve distribution level interconnection rules and regulations for certain classes of electric generators and electric storage resources.

FILED PUBLIC UTILITIES COMMISSION SEPTEMBER 22, 2011 SAN FRANCISCO, CALIFORNIA RULEMAKING 11-09-011

ORDER INSTITUTING RULEMAKING

TABLE OF CONTENTS

Title Page

ORDER INSTITUTING RULEMAKING 22

1. Summary 22

2. Generation Programs and Interconnection 22

3. Preliminary Scoping Memo - Issues 55

4. Proceeding Category and Need for Hearings 77

5. Proposed Schedule 88

6. Coordination with Other State Agencies, Entities, and Local Agencies 1010

7. Respondents 1010

8. Parties and Creation of Official Service List 1010

9. Service of the Rulemaking 1212

10. Service of Documents 1313

11. Commission's Public Advisor's Office 1414

12. Intervenor Compensation 1414

13. Ex Parte Communications 1414

Attachment A - Respondents

Attachment B -Various Service Lists for Commission Proceedings

Attachment C - Mailing List for Rule 21 Settlement

Attachment D - Notice of Rule 21 Settlement Efforts

ORDER INSTITUTING RULEMAKING

1. Summary

The Commission issues this Order Instituting Rulemaking to review the rules and regulations governing interconnecting generation and storage resources to the electric distribution systems of Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). The current rules and regulations are set forth in Rule 21 of the Electric Tariffs of PG&E, SCE, and SDG&E. In this rulemaking, we seek to review, and, if necessary, revise, Rule 21 to ensure that the interconnection process is timely, non-discriminatory, cost-effective, and transparent. We also seek to revise Rule 21 to incorporate processes appropriate for new technologies, such as energy storage. In addition, we intend to revise Rule 21 to ensure compliance with certain statutory obligations, such as those contained in Pub. Util. Code § 399.20(e).¹ Lastly, this rulemaking may be used by the Commission as the procedural forum for the recently initiated settlement efforts to address matters related to Rule 21.

¹ All statutory references are to the Public Utilities Code unless otherwise indicated.