Volume I. Part I - California Public Utilities Commission

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PACIFIC GAS AND ELECTRIC COMPANY VOLUME 1 – 2006 LONG-TERM PROCUREMENT PLAN SECTION I – EXECUTIVE SUMMARY
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 PACIFIC GAS AND ELECTRIC COMPANY VOLUME 1 – 2006 LONG-TERM PROCUREMENT PLAN SECTION I – EXECUTIVE SUMMARY I. EXECUTIVE SUMMARY Long-term procurement planning in California is becoming increasingly important and complex. Planning is important because, as loads continue to grow and existing generation continues to retire, adequate planning for California’s energy needs is the only way to ensure reliable, cost-effective and environmentally preferred electric service for all Californians. At the same time, long-term planning has become increasingly complex. In addition to numerous California Public Utilities Commission (“Commission”) and legislative directives regarding procurement, there are a wide variety of energy products, services and procurement alternatives to consider, as well as transmission and fuel issues. Numerous cyclical and structural uncertainties make long-term planning and procurement even more challenging. This proceeding is critical because it provides California’s investor-owned utilities (“IOUs”) a forum to present detailed long-term procurement plans and to seek Commission approval of these plans, consistent with Public Utilities Code section 454.5. Over the past several years, the legislature and the Commission have often focused on resource specific issues – such as statutes addressing repowering, biomass or renewable energy and decisions focused on energy efficiency, solar initiatives or demand response. While these statutes and decisions are important, it is essential that procurement policy not be developed in a piecemeal fashion of set-asides and silos for particular resources. This proceeding provides the Commission with an opportunity to examine the larger procurement picture, over an extended period, and consider policies and plans to procure an optimal portfolio of reliable, environmentally preferred and reasonably priced energy for the next 10 years and beyond. In Volume 1, Pacific Gas and Electric Company (“PG&E”) submits its 2006 Long-Term Procurement Plan (“2006 LTPP”) in compliance with the Assigned Commissioner’s Ruling and Scoping Memo on the Long-Term Procurement Phase of R.06-02-013, issued on September 25, 2006 (“Scoping Memo”). Volume 1 includes a detailed description of PG&E’s energy and fuel procurement plans and its proposal for implementing these plans. I-1
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Volume I. Part I - California Public Utilities Commission

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