A. Phase II Issues
As part of the development of the Phase II issues, the Commission ordered the utilities to file their Phase II proposals by April 23, 2004. San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas) filed a joint proposal. Pacific Gas and Electric Company (PG&E) and Southwest Gas Corporation filed separate proposals.
The OIR allowed interested persons to file comments on the utilities' Phase II proposals, as well as reply comments. Nineteen comments on the Phase II proposals were filed, and 13 reply comments were filed.
The OIR stated that following the filing of the Phase II pleadings, we would hold a PHC or issue a ruling to address the handling of the Phase II issues. This scoping memo and ruling provide that direction.
For Phase II of this proceeding, we plan to coordinate and work closely with the California Energy Commission (CEC) as part of the collaborative efforts initiated by the Energy Action Plan. A stated goal of the Energy Action plan is to:
"Ensure that adequate, reliable, and reasonably-priced electrical power and natural gas supplies, including prudent reserves, are achieved and provided through policies, strategies, and actions that are cost-effective and environmentally sound for California's consumers and taxpayers." (Energy Action Plan, p. 2.)
Since the CEC and this Commission are the agencies with primary responsibility for ensuring reliable and reasonable cost natural gas supply for all Californians, this collaborative effort will lead to better statewide coordination between the two agencies, minimize duplication, and send appropriate signals to market participants of our policies. Having the Commission staff work closely with the CEC will enable both agencies to develop policies that fulfill the goal of having adequate, reliable, and reasonably-priced natural gas supplies for all of California. This scoping memo and ruling describes how the staff of both the CEC and this Commission will work together to develop policies that meet the Energy Action Plan's goals.
Two matters that were raised in the Phase I decision will be resolved in Phase II. The first is issues addressed in the workshop held February 17 and 18, 2005, regarding the adequacy of the current gas quality specifications. The second issue is whether a standardized operational balancing agreement should be adopted. (See D.04-09-022, pp. 78, 80-81.)
B. Motion
The Ratepayers for Affordable Clean Energy (RACE) filed a motion on October 8, 2004 motion seeking a determination that CEQA applies to "the Phase I Decision, Phase II Draft Decision and the Rulemaking as [a] whole." (Motion, p. 3.)1 A response in opposition to RACE's motion was filed jointly on October 16, 2004, by SDG&E, SoCalGas, and PG&E.
RACE previously submitted a similar motion on August 18, 2004 "for a determination of applicability of the California Environmental Quality Act to the Phase I Draft Decision." That motion was denied in the September 3, 2004 Assigned Commissioners' Ruling (ACR).2
1 Although RACE's motion refers to a "Phase II Draft Decision" or to a "Phase II Proposed Decision," no draft or proposed decision on the Phase II issues has been released for comment.
2 RACE's October 8, 2004 motion does not mention the August 18, 2004 motion and the ACR denying the motion.
