Energy Auction Proposals, R.06-02-013, December 18, 2006

The Energy Division plans to revise the RA Monthly Guide and Template for 2007, but has not completed that process. Until a new guide and template is distributed please continue to use the 2006 Monthly guide and template for 2007 . Energy Division notifies parties herein of one template change and a revised RA and Load forecast filing schedule.

This note also reiterates that physical copies of the filings are to arrive on the due date, and postmarks are not accepted. Filings must be complete, including all supporting materials such as the Advice Letter, Advice Letter Summary sheet, signed Certification Sheet, Confidentiality Declaration, and all relevant templates.

A minor revision is required to make the 2006 template appropriate for 2007. Please modify Cell B52 of the Summary page. This is the LD phase out percentage. As you are all aware, that cell stipulates that non-LD contracts must comprise a minimum of 25% of your portfolio to reflect that your RAR cannot be met with more than 75% reliance on LD contracts. Please change that number from 25% to 50% for 2007 filings. ED will be checking this cell to determine that it is done as ED reviews the templates for compliance. This is to reflect that for 2007, LSEs may only meet 50% of their RAR with LDs, meaning that the LSE must show a minimum of 50% of their RAR met with non-LD contracts.

Also please consult the table below to see deadlines for the upcoming RA-related filings. Please note that although the 2006 monthly guide states that load forecasts are due 30 days before the applicable month's compliance filing date, the Energy Division and CEC would find it easier to receive the load forecast mailing at the same time as the RA complaince mailing due near that same time. For example, the January Month Ahead RA Filing and the February load forecast adjustments are now both due on November 30th instead of on two seperate dates. This is done to streamline mailing for both the LSE and the CPUC, as now load forecasts can go on the same CDROM as the RA compliance filing to the CEC and CPUC, and go into the same envelope. The load forecast adjustments still are not sent to the CAISO, so the RA compliance filing sent to the CAISO will not include the load forecast information.

Thanks a lot for your time and patience, and please await further instructions regarding the 2007 monthly RA template and guide.