Subject: RE: BRPU Rides Again -- CPUC Begins "Integrated Resource Planning"
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Thu, 25 Oct 2001 14:05:45 -0700 (PDT)

Seems like something IEP would certaintly be way out in front on. After suppliers' last experience with the PUC's planning process, seems like they'd aggressively go after its return in a very big way.

-----Original Message-----
From: Mara, Susan 
Sent: Thursday, October 25, 2001 3:42 PM
To: Parquet, David; Steffes, James D.
Cc: Schoen, Mary; Dasovich, Jeff; Comnes, Alan; Kaufman, Paul
Subject: BRPU Rides Again -- CPUC Begins "Integrated Resource Planning"
Importance: High

Dave and company,

Here we go again.  Dave, is this anything you want us to engage in?  Jim, what do you think about this?

-----Original Message-----
From: Steven Kelly [mailto:[email-masked]]
Sent: Thursday, October 25, 2001 12:23 PM
To: 'Aaron Thomas'; Alex Sugaoka (E-mail); Bill Woods (E-mail); Bob
Ellery (E-mail); Bob Escalante (E-mail); Brian T. Cragg (E-mail);
Carolyn A Baker (E-mail); Curtis Kebler (E-mail); Douglas Kerner
(E-mail); 'Doyle Hibler'; Duane Nelsen (E-mail); Ed Maddox (E-mail); Ed
Tomeo (E-mail); Eric Edstrom (E-mail); Greg Blue (E-mail); Hap Boyd
(E-mail); Jack Pigott (E-mail); Joe Ronan (E-mail); John G. Larrea
(E-mail); John O'Rourke (E-mail); Kate Castillo (E-mail); Ken Hoffman
(E-mail); Kent Burton (E-mail); Kent Palmerton (E-mail); Mark J. Smith
(E-mail); Marty McFadden (E-mail); Schoen, Mary; Michael L. Hawkins
(E-mail); Nam Nguyen (E-mail); Paul Wood (E-mail); Paula Soos (E-mail);
Peter H. Weiner (E-mail); Rachel King (E-mail); Rich Dyer (E-mail);
Roger Pelote (E-mail); Ross Ain (E-mail); Scott Harlan (E-mail); Steve
Ponder (E-mail); Steve Schleimer (E-mail); Susan J Mara (E-mail); Ted
Cortopassi (E-mail); Tom Hartman (E-mail); Tony Wetzel (E-mail); Trond
Aschehoug (E-mail); Ward Scobee (E-mail); 'Warren Mack'
Cc: Andy Brown (E-mail); 'Carol Hudson (E-mail)'; Chris Ellison
(E-mail); 'Jan Smutny-Jones (E-mail)'; 'Katie Kaplan (E-mail)'; 'Kelli
Norton'; Sandra Moseley (E-mail); 'Steven Kelly (E-mail)'; Thomas R.
McMorrow (E-mail); Gates, Bob; Charles Linthicum (E-mail); 'Cody Carter
(E-mail)'; 'Curt Hatton (E-mail)'; Parquet, David; 'Dean Gosselin
(E-mail)'; 'Eileen Koch (E-mail)'; 'Eric Eisenman (E-mail)'; 'Frank
DeRosa (E-mail)'; 'Hap Boyd (E-mail)'; 'Hawks Jack (E-mail)'; 'Jim
Willey (E-mail)'; 'Joe Greco (E-mail)'; John Stout (E-mail); 'Jonathan
Weisgall (E-mail)'; 'Kelly Lloyd (E-mail)'; 'Kent Fickett (E-mail)';
'Lynn Lednicky (E-mail)'; Fillinger, Mark; 'Randy Hickok (E-mail)';
Scott Sadler (E-mail); 'Stephanie Newell (E-mail)'; Steve Iliff
(E-mail); William Carlson (E-mail)
Subject: CPUC Initiating Rulemaking on "Integrated Resource Planning"
Importance: High

The IEP Regulatory Affairs Committee over the past few weeks has been
discussing the prospects of state agencies (e.g. the CEC) pursuing a
long-term (1-2 year) strategy of re-introducing centralized, Integrated
Resource Planning in California.  Indeed, some CEC staff have used sought to
obtain planning/modelling authorities that could lead to dispatch
instructions or, perhaps, identification of generation units for
"retirement."

The CPUC is opening a rulemaking (OIR) to return to "integrated resource
planning."  The BRPU returns!  Anyway, we will be discussing this further at
the Regulatory Affairs conference call next Tuesday.

We will provide additional information on the OII as soon as it becomes
available.

-----Original Message-----
From: Andy Brown [mailto:[email-masked]]
Sent: Thursday, October 25, 2001 10:36 AM
To: Steven Kelly; doug kerner; Jan Smutny-Jones
Subject: highlights from CPUC meeting
Importance: High

FYI.  Highlights from today's CPUC meeting.  It is still in progress,
with few energy items remaining.  Regular results memo to follow.

CPUC opens new rulemaking to return to "integrated resource planning"
with contemplation of process that sounds much like the discredited
Biennial Resource Plan Update (BRPU) proceeding.  Clearly contemplates
utility construction of new generation projects, but also calls for
life-cycle cost analysis of all options, including new asset
construction, power purchase agreements, conservation, transmission,
etc.

CPUC rejects new interstate transmission facilities as not needed for
reliability purposes (lines to NV, AZ and MX).  Will begin new phase re
economic projects.

CPUC rejects request for clarification regarding QF contract
amendments.  Parties had requested clarification from CPUC decision
based on language in Admin Law Judge (ALJ) ruling that stated extensions
could go forward until the Commission acts.  CPUC states that parties
remain free to negotiation changes, but that they must move forward on
ordinary review process.  This decision primarily undermines QF contract
amendments with SCE's.

CPUC rejects PG&E's call for market valuation of retained generation.
PG&E argued that CPUC must use market value of retained assets to set
cost of service rates.  CPUC rejects argument.  Duque will concur, but
notes that there are outstanding issues including the likelihood that
CPUC will fail to meet statutory deadline to market value retained
assets, and fact that PG&E still has stranded cost recovery rights that
require market valuation.  It is also unclear, notwithstanding the CPUC
settlement with SCE, how post-transitions period costs will be recovered
per that agreement.

--
Andrew Brown
Sacramento, CA
[email-masked]