R.09-10-032 2011 RA Phase II Proposals Workshop (day

R.09-10-032 2011 RA Phase II Proposals Workshop (day

R.09-10-032 2011 RA Phase II Proposals Workshop (day 2) January 25 , 2011 Court Yard room 10:00 am- 2:45 pm The Basics Bathrooms - 2 locations In the main CPUC lobby towards the cafeteria Across the courtyard through the doors to the south side of the building Refreshments- Cafeteria, Peets Coffee, restaurants in the area Participants on the phone- all are on mute. If you have a question please press *6 to unmute your phone then *6 to remute your phone when finished. Participants in the room- please ensure that you speak near a microphone for the phone so people on the phone can hear you.

Agenda 10:00 10:15 Introductions and announcements 10:1511:00 Energy Division Proposals -Timeline for changes to year-ahead load forecast -Revision or elimination of Schedule outage rules 11:00 12:00 SCE Proposals -Planned Outage Adder (20 min)

- Review of Path 26 capacity (20 min) 12:00-1:00 Lunch Agenda cont. 1:00 2:00 PG&E Proposals - Peak Day Pricing (10 min) -NQC for new wind and solar resources (20 min) 2:002:30 SDG&E Proposals -Monthly or Seasonal Local RA R 2:302:45 Questions and Answers Next steps Objectives 1. Understand the Phase II proposals

2. Provide parties with information that will better inform comments Agenda 10:00 10:15 Introductions and announcements 10:1511:00 Energy Division Proposals -Timeline for changes to year-ahead load forecast -Revision or elimination of Schedule outage rules SCE Presentations

-Planned Outage Adder (20 min) - Review of Path 26 capacity (20 min) 11:00 12:00 12:00-1:00 Lunch Energy Division Proposal 4 Background: D.06-07-031 adopted a counting protocol for units that take scheduled outage during the RA compliance year. This protocol been implemented consistently since 2006, regardless of changes to the CAISO markets or other RA program developments. Through the course of multiple CAISO proceedings over the previous three years during the Standard Capacity Product effort, the CAISO and stakeholders (including the CPUC) have been developing an alternative to the current CPUC scheduled outage rule.

The CAISO currently has an open proceeding wherein CAISO is developing a supplier based process to coordinate outages on RA units, with the intent to develop a tariff to implement the process and coordinate with the CPUC RA program. Energy Division Proposal 4 Proposal: Energy Division proposes that the scheduled outage rule be retained in the CPUC RA program until the CAISO files, and the Federal Energy Regulatory Commission (FERC) approves, a tariff that provides for the following: (1.) Allows the CAISO to reliably operate the system including outage coordination with a reserve margin that may be lower than 15% due to resource outages. (2.) Allows the CAISO to accept or deny outages while operating the system within all the NERC and WECC constraints CAISO is required to observe. Energy Division Proposal 4 cont.

(3.) Relies solely on CAISO and suppliers of RA capacity to manage and coordinate unit outages, without interaction with the LSE that contracted that unit or consultation of the contract with the unit. Relies solely on CAISO tariff authority over the unit as a provider of RA capacity (4.) Removes LSEs completely from the coordination of unit outages such that the CPUC would not need to maintain rules to govern LSE behavior related to performance of RA contracted and committed units. (5.) Create a specific penalty/incentive structure to limit the amount of time RA units are on outage. Energy Division Proposal 5 Background: The RA program relies on the CEC adjusted forecasts as the basis for each LSE's RA obligations. Energy Division uses these final load forecast to allocate Year-Ahead RA system and Local RA requirements which include allocations of any Demand Response, Cost Allocation Mechanism (CAM), and RMR capacity. Currently the Year-Ahead RA forecast and compliance process maintains a 90 day

window between notification of final RA obligations and submission of final YearAhead RA compliance filings Some LSEs have requested the opportunity to update and revise their Year-Ahead forecast information closer to the due date for submission of the Year-Ahead RA compliance filings. D.05-10-042 specified that LSEs may dispute adjustments made to their forecasts but did not include timelines for that dispute. Energy Division Proposal 5 Proposal: Energy Division proposes to set a firm deadline for LSEs to submit revisions to their forecasts. Energy Division presents the following draft timelines to parties to sketch out the broad outline of a process for LSEs to make revisions to their yearahead load forecasts. Three timelines follow, which illustrate #1 the current process, #2 a firm deadline for revisions and possible reallocations based on revisions, and #3 a timeline for revisions without the Preliminary Local RA Filing based on Energy Division proposal #3. Parties are requested to comment on the

following timelines. Timeline #1 Timeline #1 - current 2012 timeline Filing Days before Year-Ahead RA Filing Due date LSEs file Historical load info 15-Mar 230 LSEs file Final 2012 Year-Ahead

Load Forecast 22-Apr 192 LSEs receive 2012 Year-Ahead RA obligations 25-Jul 98 LSEs filed Preliminary 2012 Local RA Filing 17-Sep

44 8-Oct 23 31-Oct 0 LSEs receive RMR allocations LSEs file Final 2012 Year-Ahead RA Filing Timeline #2 Timeline #2 2012 Year-Ahead forecast process with due date for revisions - with Preliminary Local RA Filing Filing

Due date Days before Year-Ahead RA Filing LSEs file Historical load info 15-Mar 230 LSEs file 2012 Year-Ahead Load Forecast 22-Apr 192 LSEs receive 2012 Year-Ahead RA obligations 25-Jul 98

Final date to file revised forecasts for 2012 19-Aug 73 LSEs receive revised 2012 RA obligations 15-Sep 46 LSEs file 2012 Preliminary Local RA Filing LSEs receive RMR allocations

15-Sep 7-Oct 46 24 LSEs file Final 2012 Year-Ahead RA Filing 31-Oct 0 Timeline #3 Timeline #3 2012 Year-Ahead forecast process with due date for revisions - no Preliminary Local RA Filing Filing

Due date Days before Year-Ahead RA Filing LSEs file Historical load info 15-Mar 230 LSEs file 2012 Year-Ahead Load Forecast 22-Apr 192 LSEs receive 2012 Year-Ahead RA

obligations 25-Jul 98 Final date to file revised forecasts for 2012 19-Aug 73 LSEs receive revised 2012 RA obligations 15-Sep

46 LSEs receive RMR allocations 7-Oct 24 31-Oct 0 LSEs file Final 2012 Year-Ahead RA Filing Agenda 10:00 10:15

Introductions and announcements 10:1511:00 Energy Division Proposals -Timeline for changes to year-ahead load forecast -Revision or elimination of Schedule outage rules 11:00 12:00 SCE Proposals -Planned Outage Adder (20 min) - Review of Path 26 capacity (20 min) 12:00-1:00 Lunch

SCEs Presentation place holder Agenda 10:00 10:15 Introductions and announcements 10:1511:00 Energy Division Proposals -Timeline for changes to year-ahead load forecast -Revision or elimination of Schedule outage rules 11:00 12:00

SCE Proposals -Planned Outage Adder (20 min) - Review of Path 26 capacity (20 min) 12:001:00 Lunch Agenda cont. 1:00 2:00 PG&E Proposals - Peak Day Pricing (10 min) -NQC for new wind and solar resources (20 min) 2:002:30 SDG&E Proposals

-Monthly or Seasonal Local RA R 2:302:45 Questions and Answers Next steps PG&Es Presentation place holder Agenda cont. 1:00 2:00 PG&E Proposals - Peak Day Pricing (10 min) -NQC for new wind and solar resources (20 min) 2:002:30 SDG&E Proposals -Monthly or Seasonal Local RA R 2:302:45 Questions and Answers Next steps

SDG&Es Presentation place holder Agenda cont. 1:00 2:00 PG&E Proposals - Peak Day Pricing (10 min) -NQC for new wind and solar resources (20 min) 2:002:30 SDG&E Proposals -Monthly or Seasonal Local RA R 2:302:45 Questions and Answers Next steps Next Steps February 8th : Due date for Parties to file comments on Phase II workshop issues

February 22nd : Due date for parties to file reply comments based on Phase II workshop issues

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