2. Background

By Decision (D.) 01-05-089 adopted on May 24, 2001, the Commission added Category M to the list of essential customers normally exempt from rotating outages. Category M is: "limited other customers as necessary to protect public health and safety, to the extent exempted by the Commission."

To facilitate implementation of Category M for Summer 2001, the Commission determined that it was necessary to contract for outside assistance on an expedited basis. This determination was based on the extraordinary circumstance of alleviating unacceptable jeopardy or imminent danger to the general public health and safety from rotating outages during Summer 2001. (D.01-05-089, Finding of Fact 2, Conclusion of Law 5.) The Commission invited competitive bids, and hired Exponent as the consultant and advisor for this project.

To further expedite Category M procedures, the Commission also approved and confirmed a May 21, 2001 Assigned Commissioner's Ruling (ACR). (D.01-05-089, Ordering Paragraph 1, mimeo. p 12.) The ACR established a process to consider non-residential customer requests to be included in Category M. Further, it directed that Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E) each provide direct mail notice of the process to each non-residential customer within four business days of the date of the ruling.

In brief, the adopted process permitted each non-residential customer of PG&E, SCE or SDG&E to file an application seeking Category M essential customer status.² Each applicant was strongly encouraged to submit its application electronically using the form on a Commission web page dedicated to this project. Applicants without Internet access were directed to a toll-free number for further assistance.

Each applicant was required to demonstrate that its inclusion in a rotating outage would present imminent jeopardy or danger to public health and safety. Applicants were specifically advised that claims of economic harm or inconvenience would not be considered. Applicants were also advised that each applicant would be required to state under penalty of perjury that the application was true and correct by submission of a Statement of Authenticity.

Further, applicants were informed that the number of customers who may eventually be exempted is severely limited. As a result, the process included both the review of each application to determine the risks posed to public health and safety, and the prioritization of all applications based on those risks. Moreover, the adopted process required utilities to analyze the effects on electric system load and reliability if exemptions are granted, and measurement of those results against the Commission's standard of maintaining at least 40% of all customers eligible for rotating outage. The process provided for the filing and service of a draft decision upon which applicants and parties could comment. Finally, the ACR provided that the Commission decision would be based on each petition, the consultant's report and recommendations, the load/system analysis, any other data or analysis submitted at the Commission's or consultant's request, the customer's verification of the truth of the application, and comments on the draft decision.

Applications were due no later than June 4, 2001.³ A total of 9,522 complete applications were filed by that deadline.

Applicants were advised that pleadings filed after June 4, 2001 would be considered only if conditions permit additional exemptions. A final deadline for late applications was set, with applications permitted only through June 15, 2001.

Exponent's analysis and report, and this decision, address applications received through June 4, 2001. Late applications will be considered in a subsequent decision, to the extent system conditions and Commission resources permit.