PREWORKSHOP REPLY COMMENTS OF PACIFIC GAS AND preworkshop回复评论的太平洋天然气与.docVIP

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PREWORKSHOP REPLY COMMENTS OF PACIFIC GAS AND preworkshop回复评论的太平洋天然气与.doc

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PREWORKSHOP REPLY COMMENTS OF PACIFIC GAS AND preworkshop回复评论的太平洋天然气与

BEFORE THE PUBLIC UTILITIES COMMISSIONOF THE STATE OF CALIFORNIA Order Instituting Rulemaking to Promote Consistency in Methodology and Input Assumptions in Commission Applications of Short-run and Long-run Avoided Costs, Including Pricing for Qualifying Facilities. Rulemaking 04-04-025 PRE-WORKSHOP REPLY COMMENTS OF PACIFIC GAS AND ELECTRIC COMPANY ON AVOIDED COST METHODOLOGY As provided in the Order Instituting Rulemaking 04-04-025 (“OIR”), Pacific Gas and Electric Company (“PGE”) submits its pre-workshop reply comments in response to the opening pre-workshop comments (“opening comments”) filed by the respondent utilities and interveners on June 4, 2004. Besides comments from the respondent utilities, four interveners with QF interests filed opening comments. Only two other sets of comments were submitted, one from an intervener representing large noncore customer interests and one from an environmental intervener. Despite the OIR’s intent to consider avoided cost methodologies for a variety of applications that cross a number of Commission proceedings, the majority of the opening comments from non-utility interveners focused on just one avoided cost-related issue, payments to QFs. PGE’s reply to other parties’ opening comments makes the following major points: Avoided costs for planning purposes cannot lawfully be used to determine payments to QFs under existing contracts. Policy questions regarding what to do about QFs whose contracts will expire and QFs with lapsing fixed-price provisions in 2006-2007 are to be addressed in the long-term resource proceeding, R.04-04-003 and are beyond the scope of this OIR. The E3 avoided cost methodology is not useful for reforming QF SRAC pricing for existing contracts, which should be addressed in a bifurcated phase of this proceeding as soon as possible. The E3 avoided cost methodology would be appropriate to apply across various technologies for planning purposes with further refinement to provide more flexibili