MP1/SK1/sid 2/28/2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Establish Policies and Rules to Ensure Reliable, Long-Term Supplies of Natural Gas to California.

Rulemaking 04-01-025 (Filed January 22, 2004)

SCOPING MEMO AND RULING OF THE ASSIGNED COMMISSIONERS

FOR PHASE II, AND NOTICE OF PREHEARING CONFERENCE

I. Summary

On January 22, 2004, the Commission opened this Order Instituting Rulemaking (OIR or rulemaking) to examine the kinds of policies and rules that need to be in place to ensure that California's residential and business consumers have access to reliable long-term supplies of natural gas. The rulemaking was divided into two phases. After an extensive comment process, the Phase I issues were addressed by the Commission in Decision (D.) 04-09-022.

Today's scoping memo and ruling sets forth the issues to be addressed in Phase II of this proceeding, the process that will be followed for resolving the Phase II issues, and the categorization of the Phase II issues. We will hold a prehearing conference (PHC) on Wednesday, March 23, 2005, at 10:30 a.m., in the Commission Court Room, State Office Building, 505 Van Ness Avenue, San Francisco, California, to discuss the evidentiary hearing (EH) schedule for the Phase II issues.

Today's ruling also addresses the October 8, 2004 motion filed by the Ratepayers for Affordable Clean Energy (RACE) seeking a determination of the applicability of the California Environmental Quality Act (CEQA) to this proceeding.