before the public utilities commission f i l e d of the ...docs.cpuc.ca.gov/efile/exp/74974.pdf ·...
TRANSCRIPT
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Integrate Procurement Policies and Consider Long-Term Procurement Plans.
R.06-02-013(Filed February 16, 2003)
NOTICE OF EX PARTE COMMUNICATION
Date: November 7, 2007
GOODIN, MACBRIDE, SQUERI, DAY & LAMPREY, LLP Brian T. Cragg Vidhya Prabhakaran 505 Sansome Street, Suite 900 San Francisco, CA 94111 Telephone: (415) 392-7900 Facsimile: (415) 398-4321 Email: [email protected]
Attorneys for the Independent Energy Producers Association
F I L E D 11-07-0704:59 PM
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Integrate Procurement Policies and Consider Long-Term Procurement Plans.
R.06-02-013(Filed February 16, 2003)
NOTICE OF EX PARTE COMMUNICATION
Pursuant to Rule 8.3 of the Commission’s Rules of Practice and Procedure,
the Independent Energy Producers Association (“IEP”) provides the following notice of
ex parte communication.
On Friday, November 2, 2007 at 11:00 a.m., a meeting was held between
representatives of IEP and representatives of President Peevey. In attendance for IEP
were Steven Kelly, Policy Director of IEP; Margaret Meal, outside consultant for IEP;
and Brian Cragg, outside counsel for IEP. In attendance from President Peevey’s Office
were Nancy Ryan, Chief of Staff to President Peevey, and Andrew Schwartz, advisor to
President Peevey. The meeting took place at the Commission’s offices and was initiated
by Mr. Cragg. The meeting lasted about 55 minutes.
During the meeting, Mr. Kelly outlined the current treatment of debt
equivalence in the evaluation of bids in competitive solicitations for electric generating
resources. Ms. Meal described debt equivalence associated with utilities’ purchases
under power purchase agreements (“PPAs”) and how its impact was evaluated by the
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credit rating agencies. She explained that debt equivalence was not a direct cost and that
it has no impact on the balance sheets of the purchasing utilities. She explained the
importance to rating agencies of regulatory mechanisms and legislative assurances for
recovery of the costs incurred under a PPA. She then described what happens with
regard to debt equivalence when a California utility enters into a PPA. Mr. Cragg stated
that consideration of debt equivalence in the evaluation of bids in competitive
solicitations tilted the evaluation in favor of utility-owned projects and projects with
lower capacity costs and shorter contract terms, even though the Commission’s policy on
renewable power and greenhouse gas reduction might encourage projects with relatively
high capacity costs. For that reason, among others, debt equivalence should not be
included in the evaluation of PPA bids. Ms. Meal stated that focusing only on one
possible risk in bid evaluation while ignoring the risks that PPAs enable the utility to
avoid skewed the evaluation. Finally, Ms. Meal explained how any debt equivalence
impacts on credit quality are accounted for in cost of capital proceedings where all of a
utility’s risks can be evaluated and where utilities can be compensated for any adverse
impacts of debt equivalence.
Four documents were used during the course of this meeting:
1. A one-page document entitled “IEP Meeting on Debt Equivalence.”
2. A table listing risks associated with power plants and showing how
those risks are allocated.
3. A chart showing the California utilities’ bond ratings.
4. An excerpt from IEP’s Opening Brief.
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Copies of these documents are attached to this notice.
To obtain a copy of this notice, please contact Melinda LaJaunie at Goodin,
MacBride, Squeri, Day & Lamprey, LLP, 505 Sansome Street, 9th Floor, San Francisco,
California 94111, (415) 392-7900.
Respectfully submitted this 7th day of November, 2007 at San Francisco,
California.
GOODIN, MACBRIDE, SQUERI, DAY & LAMPREY, LLP Brian T. Cragg Vidhya Prabhakaran 505 Sansome Street, Suite 900 San Francisco, California 94111 Telephone: (415) 392-7900 Facsimile: (415) 398-4321
By Brian T. Cragg Brian T. Cragg
Attorneys for the Independent Energy Producers Association
2970/005/X94082.v1
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CERTIFICATE OF SERVICE
I, Melinda LaJaunie, certify that I have on this 7th day of November 2007 caused
a copy of the foregoing
NOTICE OF EX PARTE COMMUNICATION
to be served on all known parties to R.06-02-013 via email to those listed with email on
the most recent service list on the CPUC website, and via U.S. mail to those without
email service. I also caused courtesy copies to be hand-delivered as follows:
Commissioner Michael R. Peevey California Public Utilities Commission 505 Van Ness Avenue, Room 5218 San Francisco, CA 94102
ALJ Carol A. Brown California Public Utilities Commission 505 Van Ness Avenue, Room 5103 San Francisco, CA 94102
ALJ David K. Fukutome California Public Utilities Commission 505 Van Ness Avenue, Room 5042 San Francisco, CA 94102
ALJ Kenneth L. Koss California Public Utilities Commission 505 Van Ness Avenue, 5th Floor San Francisco, CA 94102
I declare on penalty of perjury under California law that the foregoing is true.
Executed this 7th day of November 2007 at San Francisco, California.
/s/ Melinda LaJaunie Melinda LaJaunie
2970/005/X94112.v1
Service List – R.06-02-013 (Updated November 6, 2007)
ABBAS M. ABED [email protected]
Amanda C. Baker [email protected]
ANDREW BROWN [email protected]
AUDREY CHANG [email protected]
ANGELA TORR [email protected]
ADAM BRIONES [email protected]
Anne Gillette [email protected]
Andrew Campbell [email protected]
ANN G. GRIMALDI [email protected]
ADAM J. KATZ [email protected]
G. ALAN COMNES [email protected]
ALAN COMNES [email protected]
FRANK ANNUNZIATO [email protected]
ANDREW J. VAN HORN [email protected]
ALLEN K. TRIAL [email protected]
ANN L. TROWBRIDGE [email protected]
AUDRA HARTMANN [email protected]
ANDREA WELLER [email protected]
Bishu Chatterjee [email protected]
ROBERT E. BURT [email protected]
BRIAN T. CRAGG [email protected]
BALDASSARO DI CAPO, [email protected]
BERJ K. PARSEGHIAN [email protected]
BETH A. FOX [email protected]
BETH VAUGHAN [email protected]
ROBERT FINKELSTEIN [email protected]
WILLIAM H. CHEN [email protected]
BRIAN K. CHERRY [email protected]
SCOTT BLAISING [email protected]
BARRY F. MCCARTHY [email protected]
ROBERT B. GEX [email protected]
KEVIN BOUDREAUX [email protected]
BARBARA R. BARKOVICH [email protected]
BOB TANG [email protected]
Carol A. Brown [email protected]
CATHIE ALLEN [email protected]
CARLA PETERMAN [email protected]
CASE ADMINISTRATION [email protected]
CATHY A. KARLSTAD [email protected]
CLIFF CHEN [email protected]
CALIFORNIA ENERGY MARKETS [email protected]
CENTRAL FILES [email protected]
CARLOS F. PENA [email protected]
CHI DOAN [email protected]
CARYN HOLMES [email protected]
CHRISTOPHER C. O'HARA [email protected]
CARL K. OSHIRO [email protected]
CLARE LAUFENBERG [email protected]
CONTANCE LENI [email protected]
CLYDE MURLEY [email protected]
CAROLYN KEHREIN [email protected]
CRYSTAL NEEDHAM [email protected]
CHARLES MIDDLEKAUFF [email protected]
CURTIS KEBLER [email protected]
DALE E. FREDERICKS [email protected]
DAVID BRANCHCOMB [email protected]
Donald J. Brooks [email protected]
DAN L. CARROLL [email protected]
DOUG DAVIE [email protected]
DEANA M. WHITE [email protected]
DENNIS M.P. EHLING [email protected]
DAVID MORSE [email protected]
DIANE I. FELLMAN [email protected]
RICHARD D. ELY [email protected]
Donna J. Hines [email protected]
David K. Fukutome [email protected]
DAVID X. KOLK, PH.D. [email protected]
DAVID MARCUS [email protected]
DOUGLAS MCFARLAN [email protected]
DOUGLAS R. KIVIAT [email protected]
DANIEL W. DOUGLASS [email protected]
Donald R. Smith [email protected]
KEVIN DUGGAN [email protected]
DAVID VIDAVER [email protected]
DEVRA WANG [email protected]
DONALD SCHOENBECK [email protected]
EDWARD C. REMEDIOS [email protected]
ED CHANG [email protected]
E.J. WRIGHT [email protected]
EVELYN KAHL [email protected]
Elizabeth Stoltzfus [email protected]
ERIC LARSEN [email protected]
ED LUCHA [email protected]
ERIC OLSON [email protected]
EDWARD G. POOLE [email protected]
CALIFORNIA ISO [email protected]
ERIC C. WOYCHIK [email protected]
Ellen S. LeVine [email protected]
EDWARD V. KURZ [email protected]
KAREN TERRANOVA [email protected]
FRED MOBASHERI [email protected]
FRITZ ORTLIEB [email protected]
FRANCISCO DA COSTA [email protected]
GREGORY T. BLUE [email protected]
GINA M. DIXON [email protected]
GARY HINNERS [email protected]
GREGGORY L. WHEATLAND [email protected]
GREGG MORRIS [email protected]
GRANT A. ROSENBLUM [email protected]
GUSTAVO LUNA [email protected]
GRACE LIVINGSTON-NUNLEY [email protected]
GEORGE ZAHARIUDAKIS [email protected]
IRYNA KWASNY [email protected]
JOHN CROSSON [email protected]
JACK BURKE [email protected]
JANICE LIN [email protected]
L. JAN REID [email protected]
JEANNE ARMSTRONG [email protected]
JUSTIN D. BRADLEY [email protected]
JENNIFER CHAMBERLIN [email protected]
JEFFERY D. HARRIS [email protected]
JEFF DIAMOND [email protected]
JEFFREY P. GRAY [email protected]
JENNIFER PORTER [email protected]
JESUS ARREDONDO [email protected]
JOSEPH GRECO [email protected]
JIM HENDRY [email protected]
JAMES ROSS [email protected]
JOHN JENSEN [email protected]
Jason R. Salmi Klotz [email protected]
KAREN E. BOWEN [email protected]
JOHN W. LESLIE [email protected]
JANE E. LUCKHARDT [email protected]
Jaclyn Marks [email protected]
JAMES MCMAHON [email protected]
Joe Como [email protected]
JODY S. LONDON [email protected]
JOSEPH M. PAUL [email protected]
Jerry Oh [email protected]
JOHN R. REDDING [email protected]
JOSEPH ROSSIGNOLI [email protected]
JOY A. WARREN [email protected]
JOHN PACHECO [email protected]
JUDITH SANDERS [email protected]
JANINE L. SCANCARELLI [email protected]
JEFFREY SHIELDS [email protected]
JAMES D. SQUERI [email protected]
Jeorge S. Tagnipes [email protected]
JUDY PAU [email protected]
JULIE L. MARTIN [email protected]
JAMES WEIL [email protected]
JAMES WEIL [email protected]
JOSEPH F. WIEDMAN [email protected]
JIM WOODWARD [email protected]
KENNETH E. ABREU [email protected]
Kenneth Bruno [email protected]
KAREN LINDH [email protected]
KATHRYN WIG [email protected]
Kevin R. Dudney [email protected]
KIRBY DUSEL [email protected]
Kathryn Auriemma [email protected]
KEVIN WOODRUFF [email protected]
KEITH R. MCCREA [email protected]
KENNY SWAIN [email protected]
KERRY HATTEVIK [email protected]
KATHLEEN ESPOSITO [email protected]
KAREN GRIFFIN [email protected]
KURT KAMMERER [email protected]
KEITH G. JOHNSON [email protected]
KEVIN J. SIMONSEN [email protected]
KEVIN KENNEDY [email protected]
KHURSHID KHOJA [email protected]
GREGORY KLATT [email protected]
Kenneth L. Koss [email protected]
KAREN MILLS [email protected]
KIMBERLY KIENER [email protected]
AVIS KOWALEWSKI [email protected]
KRIS G. CHISHOLM [email protected]
LYNNE M. BROWN [email protected]
Laurence Chaset [email protected]
LAURA GENAO [email protected]
LISA A. COTTLE [email protected]
LEON BASS [email protected]
DONALD C. LIDDELL [email protected]
LISA DECKER [email protected]
LISA WEINZIMER [email protected]
LAWRENCE KOSTRZEWA [email protected]
LYNELLE LUND [email protected]
LYNNE MACKEY [email protected]
LYNN HAUG [email protected]
Lisa-Marie Salvacion [email protected]
James Loewen [email protected]
Laura A. Martin [email protected]
2.
STEVE RAHON [email protected]
LISA URICK [email protected]
LANA WONG [email protected]
LINDA WRAZEN [email protected]
MARCIE MILNER [email protected]
MARY LYNCH [email protected]
BRUCE MCLAUGHLIN [email protected]
MARC D. JOSEPH [email protected]
MICHAEL DOUGHTON [email protected]
MICHEL PETER FLORIO [email protected]
MICHAEL A. BACKSTROM [email protected]
MICHAEL D. EVANS [email protected]
MICHAEL E. BOYD [email protected]
Matthew Deal [email protected]
MICHAEL MAZUR [email protected]
MICHAEL ALCANTAR [email protected]
MARC PRYOR [email protected]
MIKE RINGER [email protected]
MRW & ASSOCIATES, INC. [email protected]
MICHAEL SHAMES [email protected]
MICHAEL A. YUFFEE [email protected]
Noel Obiora [email protected]
Nancy Ryan [email protected]
NORA SHERIFF [email protected]
NORMAN J. FURUTA [email protected]
NORMAN A. PEDERSEN [email protected]
NANCY RADER [email protected]
NANCY TRONAAS [email protected]
DAVID OLSEN [email protected]
PAUL FENN [email protected]
PIERRE H. DUVAIR, PH.D [email protected]
PHILIP HERRINGTON [email protected]
PHILIPPE AUCLAIR [email protected]
PHILLIP J. MULLER [email protected]
PAUL C. LACOURCIERE [email protected]
Paul Douglas [email protected]
PAUL M. SEBY [email protected]
PATRICK STONER [email protected]
PATRICIA THOMPSON [email protected]
RACHEL MCMAHON [email protected]
RAJ N. PANKHANIA [email protected]
RORY COX [email protected]
RALPH DENNIS [email protected]
ROBERT FREEHLING [email protected]
RYAN WISER [email protected]
RICHARD W. RAUSHENBUSH [email protected]
RICK C. NOGER [email protected]
RONALD MOORE [email protected]
J. RICHARD LAUCKHART [email protected]
Robert L. Strauss [email protected]
RICHARD MCCANN PH.D [email protected]
ROSS MILLER [email protected]
Robert Turner [email protected]
RALPH R. NEVIS [email protected]
ROBERT KEELER [email protected]
ROBYN NARAMORE [email protected]
ROCKY BACCHUS [email protected]
ROGER PELOTE [email protected]
ROBERT OTT [email protected]
RASHA PRINCE [email protected]
ROD AOKI [email protected]
REED V. SCHMIDT [email protected]
ROBERT S. NICHOLS [email protected]
ROBIN J. WALTHER [email protected]
REID A. WINTHROP [email protected]
RYAN FLYNN [email protected]
STEPHANIE LA SHAWN [email protected]
SAEED FARROKHPAY [email protected]
SALLE E. YOO [email protected]
SARA O'NEILL [email protected]
C. SUSIE BERLIN [email protected]
SCOTT TOMASHEFSKY [email protected]
SETH D. HILTON [email protected]
STEVE BOYD [email protected]
SEPHRA A. NINOW [email protected]
SUSAN FREEDMAN [email protected]
STEVE ISSER [email protected]
ISSER STEVE [email protected]
Peter Skala [email protected]
Sepideh Khosrowjah [email protected]
SEEMA SRINIVASAN [email protected]
Sara M. Kamins [email protected]
SEBASTIEN CSAPO [email protected]
SARA STECK MYERS [email protected]
STACY AGUAYO [email protected]
STEPHEN D. BAKER [email protected]
STEPHEN A. S. MORRISON [email protected]
STEVE KOERNER [email protected]
STEVEN HUHMAN [email protected]
STEVEN S. SCHLEIMER [email protected]
STEVEN KELLY [email protected]
3.
Sean A. Simon [email protected]
SOUMYA SASTRY [email protected]
THOMAS BLAIR [email protected]
TRENT A. CARLSON [email protected]
THOMAS DARTON [email protected]
TREVOR DILLARD [email protected]
TED POPE [email protected]
TAM HUNT [email protected]
TIM HEMIG [email protected]
TIMOTHY R. ODIL [email protected]
R. THOMAS BEACH [email protected]
THOMAS S. KIMBALL [email protected]
TRACEY DRABANT [email protected]
THEODORE ROBERTS [email protected]
VITALY LEE [email protected]
Valerie Beck [email protected]
VALERIE WINN [email protected]
VIDHYA PRABHAKARAN [email protected]
WILLIAM H. BOOTH [email protected]
BARBARA GEORGE [email protected]
WAYNE TOMLINSON [email protected]
WENDY KEILANI [email protected]
OSA L. WOLFF [email protected]
WILLIAM TOBIN [email protected]
WILLIAM V. MANHEIM [email protected]
WILLIAM W. WESTERFIELD [email protected]
YVONNE GROSS [email protected]
LOCAL POWER 4281 PIEDMONT AVENUE OAKLAND, CA 94611
DAVID J. COYLE ANZA ELECTRIC COOPERATIVE, INC 58470 HIGHWAY 371 ANZA, CA 92539-1909
MELANIE GILLETTE DUKE ENERGY NORTH AMERICA 980 NINTH STREET, SUITE 1420SACRAMENTO, CA 95814
PUC/X94111.v1
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