The CPUC has commenced, "an investigation of the state's transmission and  
electric generation system reliability pursuant to AB 970."? The OII will  
also look into, "utility acquisition of new peaking generation reosurces for  
Summer 2001 and beyond."? The OII notes that the state currently has a,  
"mismatch between supply and demand statewide and in specific geographic  
areas."? An appendix to the OII lists various system upgrades which may  
require improvements.? The investigation, "will examine the most  
cost-effective ways of easing transmission constraints and associated 
generation  shortfalls, both in the short term and the longer term."
?
The OII notes the ISO's RFP for 2,00 MW of peaking capacity, complains that  
the terms of such deals are to be kept confidential until the contracts are  
signed, and concludes that,?"contract terms that offer project proponents  
market prices plus full capacity costs appear exorbitant, especially if, as 
we  understand, the ISO's contracts do not commit the power to be available 
to serve  the state's interests."? The OII challenges ISO's authority, "to 
plan,  solicit and pay for construction of new power plants across the state, 
absent  some substantial involvement of agencies that represent the state's  
interests."? In other words, as noted in an article?from today's  Electricity 
Daily (excerpted below), we now have a "turf war" between the CPUC  and ISO.
?
The Commission has classified the investigation as a ratesetting proceeding  
and ordered the three?utilities to file a cost/benefit analysis on new  
transmission upgrades as well as their own ability to build new peaking  
generation for next summer. Their responses are due Nov. 22.? ISO and other  
interested parties have until December 20 to files analyses and comments on 
the  utilities' November 22 filings.? WPTF should discuss this new OII at 
its  meeting on the 14th to decide if it wishes to become involved.? Please 
let  me know if you want a copy of the OII.? 
?
Dan
?
The following is excerpted from the 11/7 issue of Electricity Daily:
?
Turf War Breaks Out Between CPUC and ISO
"In  opening an investigation last week into California's transmission 
system  reliability, the California Public Utilities Commission has started a 
turf war  with the California Independent System Operator. Until now, Cal-ISO 
had the  unquestioned authority to keep the lights on, but the CPUC now asks, 
"At what  price?" and questions whether Cal-ISO has siting authority for a 
slew of  transmission upgrades to be built by utilities to hasten more power 
into the  state's strained system.

The CPUC has authority over utilities, but Cal-ISO is the agency that  is 
approving transmission upgrades to be built by utilities and complementary  
new generation to be built by market forces to hook into that transmission.  
Although the CPUC has not stepped fully into the new generation siting 
process  -- so far, a procedure that has been up to Cal-ISO and the 
California Energy  Commission -- it does use the transmission inquisition as 
a foundation to  question both transmission and generation projects."