2. Background
On August 9, 2006, President Peevey issued an Assigned Commissioner's Ruling (ACR) in Application (A.) 05-06-006 et al. directing PG&E and the other investor-owned utilities to propose enhancements to their demand response portfolios to increase the amount of demand response available for summer 2007. On August 15, 2006, he issued a second ACR directing PG&E and San Diego Gas & Electric to file reports in R.05-02-013 addressing the need to increase Air Conditioning (AC) load reduction capacity for summer 2007.
In response to the ACRs, on August 30, 2006 PG&E proposed a program to install five MW in peak load reduction capability by summer 2007 through direct control of customer AC load (2007 AC Program). On December 8, 2006, PG&E filed Advice Letter (AL) 2946-E seeking approval of the 2007 AC Program. On February 15, 2007, the Commission issued Resolution E-4061 approving the 2007 AC Program and acknowledging that PG&E intended to file an application for approval of AC cycling program (AC Program).
On October 17, 2006 PG&E issued a request for bids on one or more aspects of the AC Program. Items for which bids were requested included supply and installation of the AC direct load control devices and all other services necessary to start up and maintain the AC Program. PG&E received several bids and entered into two supplier agreements for the AC Program contingent upon Commission approval of an application for that program.
On April 6, 2007, PG&E filed A.07-04-009 requesting approval of the AC Program with a requested budget of approximately $367 million through 2020. PG&E filed concurrent written opening testimony that provided a detailed explanation of the AC Program.
On May 11, 2007, DRA and TURN protested PG&E's A.07-04-009. PG&E replied to the protests on May 21, 2007. No other parties have appeared in the proceeding.
On July 17, 2007, assigned Commissioner Rachelle B. Chong issued an ACR and Scoping Memo which established a schedule for the proceeding and identified the material disputed issues.
On September 17, 2007, TURN and DRA filed written testimony suggesting extensive revisions to PG&E's proposal but not disputing the need for an AC Program in PG&E's service area.
On October 1, 2007, PG&E filed written rebuttal testimony.
On October 10, 2007, PG&E filed errata to its opening testimony.
On October 22, 2007, the Parties filed motions to designate exhibits in the record, which included, among other documents, the Parties' written testimony, extensive PG&E data request responses, and reports regarding the 2007 AC Program.
Prehearing conferences were held on July 10, 2007 and on October 4, 2007. The Parties waived their right to request evidentiary hearings in the proceeding.
A properly-noticed Settlement Conference was held in this proceeding on December 11, 2007, pursuant to Section 12.1 of this Commission's Rules of Practice and Procedure.
On December 18, 2007, PG&E, TURN and DRA entered into a settlement agreement (Settlement Agreement) and simultaneously filed a joint motion for approval of the Settlement Agreement. A copy of the Settlement Agreement is attached to this decision as Exhibit 1.
