|
|
Enron Mail |
The CPUC can do it it it wants---it's a decision about risk and reward. If
the CPUC wants to set up a mechanism by which pre-approval is permitted, it can do so. Here's the catch, pre-approval means that the IOU has to be willing (generally) to accept a bit more risk. They don't like that. The CPUC has to be willing to relinquish a bit of control---this Commission definitely doesn't like that idea. So often, the utility puts up a proposal that the Commission says places to much risk with granny. The CPUC often issues a decision in response that the utility claims leaves to much control (read "second-guessing") with the Commission (and therefore leaves to much risk with the utility). In the end, the utility often "declines" the Commission's offer. However, it can be done. For example, under California's restructuring law, the utility's purchases from the PX are just and reasonable, period. (Of course, we see where the incentive built into that mechanism got us--a debacle.) Do you have PG&E's and Edison's proposals filed regarding bilaterals some weeks ago, in which they propose certain pre-approval mechanisms? The Commission didn't adopt them wholesale, and the decision has made PG&E and Edison reticent to sign any such as a result---witness the unfruitful RFPs. This at all helpful?
|