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Joint Agency Meetings
ENERGY ACTION PLAN MEETING

STATE OF CALIFORNIA

Press Release

Media Contacts:

Terrie Prosper, PUC, (415) 703-1366, tdp@cpuc.ca.gov
Linda Chou, CPA, (916) 651-9750, linda.chou@dgs.ca.gov
Claudia Chandler, CEC, (916) 654-4989, cchandle@energy.state.ca.us

CALIFORNIA'S PRINCIPAL ENERGY AGENCIES
TAKE KEY STEPS TO IMPLEMENT ENERGY POLICY

SAN FRANCISCO, July 17, 2003 - The California Public Utilities Commission (PUC), the California Energy Commission (CEC), and the California Power Authority (CPA) held a public meeting today to announce and highlight steps being taken to implement their joint Energy Action Plan (EAP). The EAP, approved by each of the three agencies this past spring, provides a blueprint for implementing unified state energy policy. The group also discussed further actions to take to ensure that adequate, reliable, and reasonably priced electrical power and natural gas supplies are achieved for California's consumers and taxpayers.

"Since the adoption of the Energy Action Plan the state has taken specific steps to prevent another energy crisis and get California back on its feet while promoting environmentally friendly power," said PUC President Michael R. Peevey. "It is a pleasure to work with the Commission's sister agencies in implementing energy policy for the state and in taking actions that will benefit California's consumers, economy, and environment."

"The Energy Action Plan implementation matrix as jointly developed by the three agencies, establishes the state's commitment and benchmarks our future collaborative efforts," noted Energy Commission Chair William Keese. "The actions identified in this matrix are clear commitments, measurable, and forward looking for California and the West."

"The Energy Action Plan provides a yardstick by which the public can measure our success in 'keeping the lights on' and reducing prices," said Power Authority Chair S. David Freeman. "We are working together recognizing that much work lies ahead."

The following steps have been implemented by the agencies in accordance with the EAP:

An Energy-Efficient State

  • Established priority for energy efficiency, demand reduction programs, and renewables for utility energy procurement plans. Hearings will be held next week to establish short- and long-term procurement plans for investor-owned utilities (IOUs) that will implement these priorities.
  • Laid the groundwork for multi-year commitment of energy efficiency funds.

A Green California

  • Established Renewable Portfolio Standard implementation rules, including market price benchmarks, standard contract terms, flexible compliance and penalty mechanisms, and bid-ranking criteria for the IOUs.
  • Began development of transmission plans for renewable energy to lessen the burden on renewable developers.

Reliable, Affordable Electricity

  • Decreased rates for customers of Southern California Edison by a total of $1.25 billion.
  • Pledged quick action on a proposal by Southern California Edison to build a new 1,050 MW power plant near Redlands, CA.
  • Began process of developing 300 MW of peaker plants to ensure local reliability needs and help achieve an adequate supply of reserves.
  • Collaborated with the Independent System Operator (ISO) to redesign the electric market, including market power mitigations.
  • Developed a commercially agreeable approach to increasing San Diego Gas and Electric Company's owned electric generation.
  • Eliminated State roadblocks to the upgrade of the Path 15 transmission line.

Reliable, Affordable Natural Gas

  • Increased storage capacity for Wild Goose Project in the Sacramento Valley so that more natural gas can be stored in California rather than bought on the spot market when prices may be higher. Wild Goose is four months ahead of schedule in its expansion project, which will help ease the constraints during peak demand periods in the state this winter.
  • Continuously monitor natural gas prices and trends for signs of market manipulation.

Members of the PUC, Energy Commission, and Power Authority will continue to hold public meetings to discuss the Energy Action Plan implementation progress. Further steps include adopting new 2005 building standards to improve energy efficiency, determining procurement options for 2006, and implementing generator maintenance standards to ensure reliability.

For more information on the EAP, worksheets on the implementation process, and materials given out at the meeting, please visit the PUC's website at www.cpuc.ca.gov.