BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Diego Gas Application 06-08-010

& Electric Company (U 902-E) for a Certificate of (Filed August 4, 2006)
Public Convenience and Necessity for the Sunrise
Powerlink Transmission Project.

COMMENTS OF THE INDEPENDENT ENERGY

PRODUCERS ASSOCIATION ON COMMISSIONER
GRUENEICH’S ALTERNATE PROPOSED DECISION (APD)

INDEPENDENT ENERGY PRODUCERS

ASSOCIATION
Steven Kelly
Policy Director
1215 K Street, Suite 900
Sacramento, CA 95814
Telephone: (916) 448-9499
Facsimile: (916) 448-0182
Email: steven@iepa.com

Date: November 20, 2008

 BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Diego Gas Application 06-08-010

& Electric Company (U 902-E) for a Certificate of (Filed August 4, 2006)
Public Convenience and Necessity for the Sunrise
Powerlink Transmission Project.

COMMENTS OF THE INDEPENDENT ENERGY

PRODUCERS ASSOCIATION ON COMMISSIONER
GRUENEICH’S ALTERNATE PROPOSED DECISION (APD)

Pursuant to Rule 14.3 of the Commission’s Rules of Practice and

Procedure, the Independent Energy Producers Association (IEP) provides the following

comments on the Alternative Proposed Decision (APD) of Commissioner Grueneich.

Pursuant to the Administrative Law Judge’s Ruling Granting Limited Party Status of

Independent Energy Producers (dated November 12, 2008), IEP limits its comments on

the APD to the issue of commitments proposed by the APD to ensure San Diego Gas &

Electric Company (SDG&E) uses a significant portion of the capacity of the Sunrise

Powerlink to bring renewable energy into the San Diego area.

The APD would condition the Commission’s approval of the Sunrise

Powerlink on SDG&E providing sufficient assurances to the Commission that the Final

Environmentally Superior Southern Route will be used to deliver substantial amounts of

Imperial Valley renewable generation to the California market, including San Diego. In

-1-
addition, the APD specifies that, if SDG&E agrees to such a condition, SDG&E shall

submit a plan to the Commission, in the form of an application filed in this proceeding

within 90 days of the effective date of the final decision. The application is to describe

how SDG&E will ensure that Sunrise Powerlink will be used to deliver substantial

amounts of Imperial Valley renewable generation. The application, becoming the formal

basis for SDG&E to submit its “Sunrise Compliance Plan,” would, among other things,

explain how SDG&E would ensure, through binding commitments, that substantial

amounts of Imperial Valley renewable generation will be developed and delivered via

Sunrise Powerlink starting on the day Sunrise is placed in service; and, specify the

renewable generation that will be developed and delivered on the Sunrise Powerlink in

sufficient detail for the Commission to understand the viability of the generation, the

anticipated capacity factor of the generation, and the process by which the generation will

interconnect to Sunrise Powerlink.

IEP is interested in moving forward with transmission to interconnect

renewable resource zones as quickly as possible. The evidence suggests that the Sunrise

Powerlink is cost-effective under a 33% RPS standard. If the Commission determines

that the Sunrise Powerlink should be approved, then IEP is concerned that the APD may

result in additional delays because the APD requires an additional Application be served

by SDG&E in 2009 to enable the Commission and interested parties the opportunity to

review SDG&E’s Compliance Plan. This may result in additional delay as the SDG&E

filed Compliance Plan is reviewed, debated, etc. IEP is concerned that this procedural

step may hinder real progress on constructing transmission to interconnect to the Imperial

-2-
Valley renewable resource area.

As an alternative, IEP recommends considering, as a condition of

approving the Sunrise Powerlink, additional language in the approved Final Decision

committing the utility to an open, transparent, competitive Renewable Request for Offer

(Renewable RFO), to be fully completed by December 31, 2009. Any such renewable

RFO should result in firm commitments for viable, renewable resources that can become

operational and interconnected coincident with the energization of the Sunrise

Transmission Line (or soon thereafter) to help SDG&E achieve its stated goal of 33% of

retail sales from renewable power by 2020. An IEP-recommended 2009 Renewable

RFO will facilitate the timely development and interconnection of renewable generation

to use the Sunrise Powerlink. It will help ensure that the Sunrise Powerlink, upon

energization, is used for the purposes intended by the Commission (i.e. 33% RPS build-

out) and supported by SDG&E in public comments. The 2009 Renewable RFO should

be planned and conducted in a manner to incent viable renewable projects, i.e. those

capable and prepared to interconnect upon energization of the transmission line (i.e.

2012) or soon thereafter to meet 2020 33% RPS goals.

Importantly, IEP recommends (a) that the renewable RFO be conducted

and completed with binding commitments with renewable resources by no later than

December 31, 2009, (b) that the RFO include transparent consideration of project

milestones and project viability measures, and (c) that the conduct of the renewable RFO

be wholly consistent with Commission policy wherein the Commission has found that

“all long-term procurement should occur via competitive procurements, rather than

-3-
through preemptive actions by the IOU, except in truly extraordinary circumstances.” 1

Regarding transparent project milestones and viability measures, IEP recommends that

the Commission direct the utility to work with the renewable development community

and finalize the identification of such important measures to the Commission by March

2009 for inclusion in the proposed 2009 Renewable RFO.

Finally, as a planning alternative and precaution in the unlikely event that

SDG&E has not made significant progress by December 31, 2009 toward constructing

and energizing the line by 2012, IEP suggests that the Commission consider third-party

transmission construction alternatives. Given the importance of the Sunrise Powerlink

for accessing Imperial Valley renewables as a means to achieving RPS goals, it would be

unfortunate if needed transmission were not built in a timely manner by SDG&E,

assuming third-party transmission developers may be ready and able to provide a timely

and cost-effective alternative.

1
Decision (D.) 07-12-052, pp. 208-209 (emphasis in original).

-4-
 Respectfully submitted this 20th day of November, 2008 at San Francisco,

California.

INDEPENDENT ENERGY PRODUCERS ASSOCIATION

Steven Kelly
Policy Director
1215 K Street, Suite 900
Sacramento, California 95814
Telephone: (916) 448-9499
Facsimile: (916) 448-0182

-5-
 CERTIFICATE OF SERVICE

I, Melinda LaJaunie, certify that I have on this 20th day of November 2008

caused a copy of the foregoing

COMMENTS OF THE INDEPENDENT ENERGY PRODUCERS

ASSOCIATION ON COMMISSIONER GRUENEICH’S ALTERNATE
PROPOSED DECISION (APD)

to be served on all known parties to A.06-08-010 listed on the most recently

updated service list available on the California Public Utilities Commission

website, via email to those listed with email and via U.S. mail to those without

email service. I also caused courtesy copies to be hand-delivered as follows:

Commissioner Dian Grueneich ALJ Steven A. Weissman

California Public Utilities Commission California Public Utilities Commission
State Building, Room 5207 State Building, Room 5107
505 Van Ness Avenue 505 Van Ness Avenue
San Francisco, CA 94102-3214 San Francisco, CA 94102-3214

ALJ Jean Veith

California Public Utilities Commission
State Building, Room 5010
505 Van Ness Avenue
San Francisco, CA 94102-3214
I declare under penalty of perjury that the foregoing is true and

correct. Executed this 20th day of November 2008 at San Francisco, California.

/s/ Melinda LaJaunie

Melinda LaJaunie

2970/010/X105009.v1
 Service List – A.06-08-010
(Updated November 18, 2008)
ANDREW B. BROWN CLAY E. FABER WILLIAM F. DIETRICH
abb@eslawfirm.com cfaber@semprautilities.com dietrichlaw2@earthlink.net

JACQUELINE AYER CLARE LAUFENBERG DIANE J. CONKLIN

AirSpecial@aol.com Claufenb@energy.state.ca.us dj0conklin@earthlink.net

G. ALAN COMNES BRIAN KRAMER DAVID KATES

alan.comnes@nrgenergy.com colobiker@gmail.com dkates@sonic.net

AUDRA HARTMANN CONNIE BULL DIANA LINSDAY

Audra.Hartmann@Dynegy.com conniebull@cox.net dlindsay@sunbeltpub.com

PATRICIA C. SCHNIER PAUL RIDGWAY DAVID MARCUS

barbschnier@yahoo.com cpuc@92036.com dmarcus2@sbcglobal.net

BREWSTER BIRDSALL CAROLYN MORROW DONNA TISDALE

bbirdsall@aspeneg.com Csmmarket@aol.com donnatisdale@hughes.net

Billie C. Blanchard DAHVIA LOCKE Donald R. Smith

bcb@cpuc.ca.gov Dahvia.Lynch@sdcounty.ca.gov dsh@cpuc.ca.gov

BRIAN T. CRAGG DAN PERKINS DAVID T. KRASKA

bcragg@goodinmacbride.com dan@energysmarthomes.net dtk5@pge.com

BONNIE GENDRON DAVID W. CAREY DON WOOD SR.

bgendron@nethere.com dandbcarey@julianweb.com dwood8@cox.net

BRETT JOLLEY DANIEL SUURKASK DAVID VOSS

bjolley@herumcrabtree.com daniel@wildroseenergy.com dwvoss@cox.net

BILL POWERS DARELL HOLMES J.A. SAVAGE

bpowers@powersengineering.com darell.holmes@sce.com editorial@californiaenergycircuit.net

BRUCE V. BIEGELOW DARRON BOUTON ELIZABETH EDWARDS

bruce.bigelow@uniontrib.com darren.bouton@gov.ca.gov edwrdsgrfx@aol.com

BRUCE FOSTER DARRON BOUTTON ELIZABETH KLEIN

bruce.foster@sce.com Darren.Boutton@gov.ca.gov elizabeth.klein@lw.com

BRADLY S. TORGAN DAVID LLOYD CALIFORNIA ISO

btorgan@parks.ca.gov david.lloyd@nrgenergy.com e-recipient@caiso.com

JOHN STHURA DAVID BRANCHCOMB FREDERICK M. ORTLIEB

c@californiabotanicalhabitat.com david@branchcomb.com fortlieb@sandiego.gov

CARRIE DOWNEY DARRELL FREEMAN E. GREGORY BARNES

cadowney@san.rr.com ddfreeman@yahoo.com gbarnes@sempra.com

CAROLYN A. DORROH DAVE DOWNEY GEORGE COURSER

carolyn.dorroh@cubic.com ddowney@nctimes.com gcourser@hotmail.com

CASE ADMINISTRATION DEANNA SPEHN JOHN&PHYLLIS BREMER

Case.Admin@sce.com deanna.spehn@sen.ca.gov gecko_greens@juno.com

CASSANDRA SWEET DENIS TRAFECANTY GLENN E. DROWN

Cassandra.sweet@dowjones.com denis@vitalityweb.com gedrown@mindspring.com

LAUREL GRANQUIST David Ng Gregory Heiden

celloinpines@sbcglobal.net dhn@cpuc.ca.gov gxh@cpuc.ca.gov

CALIFORNIA ENERGY MARKETS DAVID HOGAN HENRY MARTINEZ

cem@newsdata.com dhogan@biologicaldiversity.org Henry.Martinez@ladwp.com

CENTRAL FILES DAVID L. HUARD MARY ALDERN

centralfiles@semprautilities.com dhuard@manatt.com hikermomma1@yahoo.com

STEVE/CAROLYN ESPOSITO DIANE I. FELLMAN Helen M. Mickiewicz

cesposit@sdcoe.k12.ca.us Diane.Fellman@fpl.com hmm@cpuc.ca.gov
 Service List – A.06-08-010
(Updated November 18, 2008)
HARVEY PAYNE JUDITH B. SANDERS LON W. HOUSE
hpayne3@gmail.com jsanders@caiso.com lonwhouse@waterandenergyconsulting.c
om
HENRY ZAININGER JULIE B. GREENISEN
hzaininger@aol.com julie.greenisen@lw.com Marion Peleo
map@cpuc.ca.gov
IRENE STILLINGS JAMES F. WALSH
Irene.stillings@energycenter.org jwalsh@sempra.com MONICA ARGANDONA
margandona@calwild.org
JANICE SCHNEIDER JOSEPH W. MITCHELL, PH. D.
janice.schneider@lw.com jwmitchell@mbartek.com MICHAEL P. CALABRESE
mcalabrese@sandiego.gov
JASON M. OHTA JOSEPH W. MITCHELL, PHD
jason.ohta@lw.com jwmitchell@mbartek.com MICHEL PETER FLORIO
mflorio@turn.org
JUSTIN AUGUSTINE JAMES B. WOODRUFF
jaugustine@biologicaldiversity.org jwoodruff@nextlightrp.com MICHAEL J. GERGEN
michael.gergen@lw.com
JASON YAN KEVIN WOODRUFF
jay2@pge.com kdw@woodruff-expert-services.com Matthew Deal
mjd@cpuc.ca.gov
JEFFERY D. HARRIS KELLIE SMITH
jdh@eslawfirm.com kellie.smith@sen.ca.gov MATTHEW JUMPER
mjumper@sdihf.org
JEFFREY P. GRAY KELLY FULLER
jeffgray@dwt.com kelly@kellyfuller.net MICAH MITROSKY
mmitrosky@sierraclubsandiego.org
JENNIFER PORTER W. KENT PALMERTON
jennifer.porter@energycenter.org kent@wkpalmerton.com MARC PRYOR
mpryor@energy.state.ca.us
JULIE L. FIEBER GLENDA KIMMERLY
jfieber@flk.com kimmerlys@yahoo.com MRW & ASSOCIATES, INC.
mrw@mrwassoc.com
JALEH (SHARON) FIROOZ, P.E. KELLI MCDOWELL
jfirooz@iesnet.com KMCDO@parks.ca.gov Marcus Nixon
mrx@cpuc.ca.gov
JUDY GRAU KAREN NORENE MILLS
jgrau@energy.state.ca.us kmills@cfbf.com MICHAEL SHAMES
mshames@ucan.org
J. HARRY JONES KIM KIENER
jharry.jones@uniontrib.com kmkiener@cox.net MICHAEL S. PORTER
mspe@pge.com
HEIDI FARKASH KATARZYNA M. SMOLEN
jhfark@pacbell.net kmsn@pge.com MICHAEL L. WELLS
mwells@parks.ca.gov
JIM BELL KEVIN O'BEIRNE
jimbellelsi@cox.net ko'beirne@semprautilities.com Nicholas Sher
nms@cpuc.ca.gov
Janet A. Econome KEITH RITCHEY
jjj@cpuc.ca.gov kritchey@san.rr.com NORMAN J. FURUTA
norman.furuta@navy.mil
JOHN W. LESLIE, ESQ. KATHRYN J. TOBIAS
jleslie@luce.com ktobias@parks.ca.gov NANCY PARINELLO
nparinello@gmail.com
Jeanette Lo Keith D White
jlo@cpuc.ca.gov kwh@cpuc.ca.gov S. NANCY WHANG
nwhang@manatt.com
Julie Halligan Laurence Chaset
jmh@cpuc.ca.gov lau@cpuc.ca.gov MICHAEL PAGE
oakhollowranch@wildblue.net
JOSEPH PAUL DONALD C. LIDDELL
joe.paul@dynegy.com liddell@energyattorney.com PETER SCHULTZ
oldjulianco@integrity.com
JOSEPH RAUH Linda J. Woods
joe@ranchitarealty.com ljw@cpuc.ca.gov ONELL SOTO
onell.soto@uniontrib.com
JAMES W. REEDE JR. ED.D LOUIS NASTRO
jreede@energy.state.ca.us Lnastro@parks.ca.gov PATRICIA GUERRERO
patricia.guerrero@lw.com

2.
 Service List – A.06-08-010
(Updated November 18, 2008)
PAT/ALBERT BIANEZ SCOT MARTIN TOM MURPHY
patricia_fallon@sbcglobal.net scotmartin478@msn.com tmurphy@aspeneg.com

PAUL G. SCHEUERMAN SEPHRA A. NINOW Thomas Flynn

PGS@IEEE.org sephra.ninow@energycenter.org trf@cpuc.ca.gov

PHILIPPE AUCLAIR SUSAN FREEDMAN Travis Foss

phil@auclairconsulting.com sfr@sandag.org ttf@cpuc.ca.gov

PAUL C. LACOURCIERE SHAWN D. HAGERTY J. STHURA

placourciere@thelenreid.com shawn.hagerty@bbklaw.com up@undergroundpower.us

ARNOLD B. PODGORSKY KATHARINE WOLFROM EPIC INTERN

Podgorsky@wrightlaw.com sierraclubintern@yahoo.com usdepic@gmail.com

PAUL C. RICHINS JR. STEPHEN KEENE MARTHA BAKER

prichins@energy.state.ca.us sjkeene@iid.com vmp@sbcglobal.net

PAM WHALEN Scott Logan VIDHYA PRABHAKARAN

pwhalen2@cox.net sjl@cpuc.ca.gov vprabhakaran@goodinmacbride.com

Robert Elliott JOHN RAIFSNIDER BILLY BLATTNER

rae@cpuc.ca.gov skyword@sbcglobal.net wblattner@semprautilities.com

RANDY S. HOWARD SUSAN LEE OSA L. WOLFF

randy.howard@ladwp.com slee@aspeneg.com wolff@smwlaw.com

RORY COX LARA LOPEZ SHERIDAN PAUKER

rcox@pacificenvironment.org soliviasmom@gmail.com wolff@smwlaw.com

AARON QUINTANAR ARTHUR FINE PHILLIP &ELIANE BREEDLOVE

rcox@pacificenvironment.org sptp@msk.com wolfmates@cox.net

REBECCA PEARL STEPHEN ROGERS Scott Cauchois

rebeccap@environmentalhealth.org srogers647@aol.com wsc@cpuc.ca.gov

CASE COORDINATION STEVE SEIGEL SCOTT KARDEL

regrelcpuccases@pge.com ssiegel@biologicaldiversity.org WSK@astro.caltech.edu

K. RENEE MARTIN STEVEN SIEGEL Jean Vieth

Reneeandbear@aol.com ssiegel@biologicaldiversity.org xjv@cpuc.ca.gov

RICHARD W. RAUSHENBUSH STEVEN KELLY ZIAD ALAYWAN

richard.raushenbush@lw.com steven@iepa.com ziad@zglobal.biz

RANDALL W. KEEN STEVEN WEISSMAN LINDA A. CARSON

rkeen@manatt.com sweissman@law.berkeley.edu EXECUTIVE DIRECTOR
ANZA-BORREGO FOUNDATION
RICHARD LAUCKHART SUZANNE WILSON PO BOX 2001
rlauckhart@globalenergy.com swilson@pcta.org BORREGO SPRINGS, CA 92004

ROBIN HARRINGTON TOM BLAIR JOETTA MIHALOVICH

robin.harrington@fire.ca.gov tblair@sandiego.gov 11705 ALDERCREST POINT
SAN DIEGO, CA 92131
Robert Haga Traci Bone
rwh@cpuc.ca.gov tbo@cpuc.ca.gov KEVIN LYNCH
IBERDROLA RENEWABLES INC
SABRINA OZTURK Terrie D. Prosper 1125 NW COUCH ST., SUITE 700
sabrina.ozturk@sdcounty.ca.gov tdp@cpuc.ca.gov PORTLAND, OR 97209

EILEEN BIRD THOMAS A. BURHENN E. CRAIG SMAY

sanrocky@aol.com thomas.burhenn@sce.com William and Shannon Davis
174 EAST SOUTH TEMPLE
SARA FELDMAN THOMAS ZALE SALT LAKE CITY, UT 84111
sara@calparks.org Thomas_Zale@blm.gov
BOB & MARGARET BARELMANN
Steven A. Weissman MICHAEL J. THOMPSON 6510 FRANCISCAN ROAD
saw@cpuc.ca.gov thompson@wrightlaw.com CARLSBAD, CA 92011

3.
 Service List – A.06-08-010
(Updated November 18, 2008)
WALLY BESUDEN
PRESIDENT
SPANGLER PEAK RANCH, INC
PO BOX 1959
ESCONDIDO, CA 92033

WILLIAM TULLOCH
28223 HIGHWAY 78
RAMONA, CA 92065

KIMBELRY SCHULZ
10303 CANINITO ARALIA NO 96
SAN DIEGO, CA 92131

GREGORY T. LAMBRON
LAMBRON LAKESIDE RANCH, LLC
PO BOX 15453
SAN DIEGO, CA 92175-5453

LYNDA KASTOLL
REALTY SPECIALIST
BUREAU OF LAND MANAGEMENT
EL CENTRO FIELD OFFICE
1661 SOUTH 4TH STREET
EL CENTRO, CA 92243

NANCY J. SARACINO
ATTORNEY
CALIFORNIA INDEP. SYSTEM
OPERATOR CORP.
151 BLUE RAVINE ROAD
FOLSOM, CA 95630

PUC/X104919.v1

4.