COORDINATING COMMISSIONER'S RULING PURSUANT TO DECISION 97-12-131
The Commission, the Federal Energy Regulatory Commission (FERC), the Legislature, and many stakeholder interests have been engaged in a continuing effort directed toward the establishment of a competitive marketplace for electricity since this Commission announced its policy on restructuring the electric utility industry in Decision (D.) 95-12-063, as modified by D.96-01-009. In D.97-12-131, the Commission recognized that not all of the restructuring initiatives, many of which were scheduled for January 1, 1998, could occur when initially planned. In particular, a delay in the start of operations for the Independent System Operator (ISO) and Power Exchange (PX) required the Commission to postpone the start of direct access initiatives.
That delay can now be ended, and the Commission is prepared to make the final authorization required for the start of direct access and the real beginning of competition in the restructured electrical industry in California.
D.97-12-131 delegated to me the task of issuing a ruling which will order when direct access should commence simulaneous with the commencement of operations of the ISO and the PX. The Commission said:
Consistent with the FERC [order in Pacific Gas and Electric Company, 81 FERC ¶ 61, 378 (1997)], the ISO and the PX must provide notification to FERC at least 15 days prior to the date the ISO and PX will commence operations. Once that notice is provided and the ISO and the PX are ready to commence operations and [the chief executive officers of PG&E, Edison, SDG&E, the ISO, and the PX] provide their certificates to the FERC, direct access should begin within a specified number of business days. We delegate to the Coordinating Commissioner the task of issuing a ruling which will order when direct access should commence. Consistent with [Assembly Bill] 1890, once such … certificates take place, direct access shall begin simultaneous with the commencement of ISO and PX operations, per the Coordinating Commissioner's ruling.
In D.98-01-053, the Commission granted authority to convey operational control of designated transmission lines and associated facilities to the ISO pursuant to Public Utilities Code Section 851, subject to the terms and conditions substantially in the form of the Transmission Control Agreement filed by Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (Edison) (joint applicants) on January 6, 1998.
Ordering Paragraph 2 required that joint applicants provide to the assigned Commissioner in Application (A.) 97-11-038, the certificates required by the FERC in connection with the transfer, which were to be addressed to this Commission as well.
Ordering Paragraph 3 required joint applicants to provide to the assigned Commissioner a verified, executed copy of the Transmission Control Agreement in the form approved by the FERC, including all appendices and all documents incorporated by reference that are not tariffs promptly after execution of the Transmission Control Agreement.
Following satisfactory compliance with Ordering Paragraphs 2 and 3 and the issuance of this ruling of the Coordinating Commissioner, as provided in D.9712-131, the conveyance of operational control will become effective on the date that direct access commences.
On March 30, 1998, joint applicants provided the certificates required by Ordering Paragraph 2 of D.98-01-053. On March 30, 1998, joint applicants provided the verified copy required by Ordering Paragraph 3 of D.98-01-053.
The certificates and copy evidence the notification to FERC at least 15 days prior to the date the ISO and PX will commence operations, which is scheduled to occur after the end of the day on March 31, 1998.
For purposes of this ruling, "direct access" and "operations" shall not be deemed to refer to activities consisting solely of scheduling and planning of deliveries, but shall be deemed to include the physical delivery of energy.
THEREFORE, IT IS RULED that:
- The conditions contemplated by D.97-12-131 have been satisfied.
- Direct access shall begin simultaneously with the commencement of ISO and PX operations, but not before 11:59 P.M. on March 31, 1998.
- Joint applicants have satisfactorily complied with Ordering Paragraphs 2 and 3 of D.98-01-053.
- Joint applicants are authorized by D.98-01-038 to convey operational control to the ISO effective simultaneous with the commencement of direct access.
- A copy of this ruling shall be served on the service list in the following applications in addition to this docket: A.97-11-038, A.96-12-009, A.96-12-011, A.96-12-019, A.97-050-11, A.97-06-046, A.97-07-005, and A.97-08-064.
Dated March 30, 1998, at San Francisco, California.
||P. Gregory Conlon, Commissioner|
CERTIFICATE OF SERVICE
I certify that I have by mail this day served a true copy of the original attached Coordinating Commissioner's Ruling Pursuant to Decision 97-12-131 on all parties of record in this proceeding and Application (A.) 97-11-038, A.96-12-009, A.96-12-011, A.96-12-019, A.97-050-11, A.97-06-046, A.97-07-005, and A.97-08-064 or their attorneys of record.
Dated March 30, 1998, at San Francisco, California.
Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.