Volume I. Part I - California Public Utilities Commission

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issued a decision adopting some, but not all, of PG&E's proposed
enhancements.
• Energy Efficiency. The 2006 LTPP captures the Customer Energy
Efficiency (“CEE”) 2006-2008 savings recently approved by D.05-09-043
and PG&E’s subsequent Compliance Filing in Energy Efficiency
R.01-08-028. The 2006 LTPP also identifies uncertainties associated with
post-2008 CEE targets via scenarios (see Volume 1, Sections IV.C and V.B
for detailed discussion). R.06-04-010 is expected to address the
Commission’s CEE targets beyond 2008.
• Distributed Generation. The 2006 LTPP captures the policy developments
and PG&E efforts in the Distributed Generation proceeding (R.04-03-017) by
incorporating the range of timing and availability of solar generation and
availability of combined heat and power in the LTPP scenarios. Supply
assumptions reflect D.06-01-024, which adopted policies and funding for the
California Solar Initiative (see Volume 1, Section IV.C.1.c). In addition,
PG&E expects a decision in December 2006 or early 2007 that would revise
the 2007-2011 targets for solar generation as a result of SB 1.
• Greenhouse Gas. PG&E has evaluated the environmental effect of the
candidate plans and provides GHG emissions forecasts of candidate resource
plans in Volume 1, Sections VI.B.5. SB 1368, the recently passed Emissions
Performance Standard (“EPS”) legislation, mandates that the Commission
implement an EPS by February 1, 2007. Prior to the passage of SB 1368 in
September 2006, the Commission initiated a GHG Order Instituting
Rulemaking (R.06-04-009). The GHG OIR will incorporate the mandates of
SB 1368 as well as address issues which SB 1368 may not have addressed. A
final decision in Phase 1 of the proceeding is expected in January 2007 and is
intended to create model regulations for AB 32 implementation for all LSEs.
The EPS standard adopted by the Commission will likely apply to baseload
facilities entering into long-term contracts. Phase 2 of the proceeding is
intended to address implementation issues associated with the load based
GHG emissions cap adopted in D.06-02-032 and is mandated to be completed
within two years of the initiation of the second phase. It is expected that
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