Volume I. Part I - California Public Utilities Commission

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TABLE VOL. 1, IID-1
PACIFIC GAS AND ELECTRIC COMPANY
JANUARY 1, 2003 – JULY 30, 2006 COMMISSION PRE-APPROVED
ELECTRIC PROCUREMENT TRANSACTIONS 59
Volume Number of
Number
of RFOs Cost
(GWhs) Transactions Issued ($ Million)
Line No. Capacity Energy
1 Short Term (up to 1 year) 935 104 9 36 54
2 Medium Term (1-5 years) 2,469 17 1 258 35
3 Long Term (5 years and >) 1,030 4 1 0 66
PG&E has used competitive procurement solicitations to procure short- and
medium-term capacity and energy products, energy-only products, options, and
tolling agreements. For longer-term supplies, PG&E conducts annual RFOs for
renewable generation and recently received Commission approval for 2,250 megawatt
(“MW”) of new peaking and shaping resources selected through its 2004 LTRFO.
PG&E has learned a number of important lessons since it resumed
procurement in January 2003. First, the market has responded well to PG&E’s
competitive solicitations. In procurement solicitations, the response has been robust,
making for a competitive process which benefits customers.
The results of PG&E’s LTRFO, with its mix of Purchase Power Agreements
(“PPA”)and Purchase and Sale Agreements (“PSA”), mix of technologies
(combustion turbines, reciprocating engines and combined cycle plants) in response to
PG&E’s request for specific operating attributes and diversity of locations,
demonstrate the benefits of head-to-head competition of utility-owned and purchased
generation.
Second, the Commission’s support of PG&E’s procurement efforts is essential.
Regulatory support has been crucial as PG&E has emerged from bankruptcy and
resumed procurement following the energy crisis. The Commission has followed the
requirements of AB 57 in approving PG&E’s procurement plans and establishing
up-front standards for procurement and cost recovery. The Commission-approved
planning process has enabled PG&E to meet the objectives of AB 57 and the EAP II,
and to procure electric and gas supplies at reasonable costs for customers.
59 This table does not include: (1) spot purchases and sales up to balance of the month;
(2) DWR contracts; (3) QF, Irrigation District and Water Agency contracts (pre-2003
contracts); (4) PG&E-owned generation; and (5) contracts executed in the 2004 LTRFO.
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