Volume I. Part I - California Public Utilities Commission

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
changes in pricing and transmission access. The CAISO is proposing that MRTU
take effect in November 2007.
FERC recently accepted the MRTU tariff, subject to a number of
modifications, conditions and compliance filings to be made by the CAISO. 42 The
CAISO is now proceeding with efforts to implement FERC’s order and to develop
and test the MRTU systems and software so that MRTU can become effective. The
effect of MRTU on PG&E’s procurement practices is still evolving. MRTU will add
significant market complexity and will require major changes to PG&E’s systems and
software interfacing with the CAISO. While the full effect of MRTU is uncertain,
PG&E is cautiously optimistic that it will not substantially impact the results of
PG&E’s resource planning and the majority of the procurement processes that
typically happen in timeframes that extend well beyond the day-ahead and day-of
focus of MRTU market changes. However, there are a number of elements of MRTU
that remain open to change. Thus, MRTU is an important area of future uncertainty
that will effect procurement and PG&E’s planning process.
d. Community Choice Aggregation
Community Choice Aggregators (“CCA”) are governmental entities formed by
cities and counties to serve the energy requirements of local residents and businesses.
The California legislature enacted AB 117 in 2002 to permit and promote CCA.
CCAs are subject to certain statutory requirements, such as the RA requirements
under AB 380, and the relationship between CCAs and the IOUs is subject to
Commission rules and decisions. In December 2004, the Commission issued a
decision addressing certain rate, tariff and cost allocation issues between the IOUs
and CCAs. 43 In December 2005, the Commission issued a second decision that
addressed issues including jurisdiction, tariffs and services, CCA implementation
plans and some cost allocation issues. 44
To date, there are no CCAs in PG&E’s service area. However, a number of
entities have expressed interest including the City and County of San Francisco
(“CCSF”), the cities of Emeryville, Berkeley and Oakland, and a number of cities in
Kings County. If any of these entities becomes a CCA, it could have a significant
42 California Independent System Operator, 116 FERC 61,274 (2006).
43 D.04-12-046.
44 D.05-12-041.
II-11