The LTPP Rulemaking provides a biennial review of the IOUs’ procurement review process, established pursuant to AB57. The IOUs submit long-term procurement plans (LTPPs) that serve as the basis for utility procurement and comprehensively integrate all Commission decisions from all procurement related proceedings. The 2008 LTPP proceeding followed immediately after D0712052 – the decision approving the IOUs 2006 LTPPs and granting authority to procure new generation. Thus, this successor rulemaking will not review and approve a new set of LTPPs. Rather, this rulemaking will address a series of policy proposals to refine technical practices used to develop procurement plans, and consider other procedural matters. Any new policies, practices and procedures adopted in this proceeding will, in turn, be incorporated into subsequent planning cycles, principally the 2010 LTPP, which is anticipated to begin early 2009.
On February 20, 2008, the Commission issued the R0802007 Order Instituting Rulemaking (OIR) setting forth five goals for the LTPP process as it relates to the other proceedings:
- Ensure the IOUs’ plans meet their forecast load and balance the costs, benefits and price risks of various policy directives (e.g., EAP, reliability);
- Develop policies so that each IOU can meet its forecast load and obtain procurement authority for new and existing resources to meet system and bundled forecast load, with sufficient lead time to enable efficient procurement of new resources;
- Coordinate between the various generation cost policy proceedings (e.g., EE, DR, renewable portfolio standard) and to ensure that they are consistent and coherent;
- Establish procurement rules that (a) shall be followed to ensure recovery of generation costs in rates and (b) address issues of regulatory and/or market failure related to generation issues; and
- Serve as the forum for comparing resource alternatives against each other, in terms of uniform criteria such as cost, risk, reliability, and environmental impact, in order to optimize California’s electric resource portfolio.
On August 28, 2008, Assigned Commissioner Peevey issued the Phase 1 Assigned Commissioner’s Ruling (ACR)/Scoping Memo further refining the scope of issues to be considered.
See more information about the 2008 LTPP Rulemaking: