Commission Revised Proposed Decision on the IOUs' Market Offer Process

The following is a brief summary of revisions to the Proposed Decision:

• It is reasonable to let the IOUs include language and modify the sales protocol to sell additional short-term volumes from the long-term pool to reduce near-term costs for PCIA-eligible customers.
• The RPS resources that have less than 10 years remaining on their contract terms as of their first delivery date will be placed in the short-term pool. The RPS resources that have 10 or more years remaining on their contract terms as of the first date of their delivery will be placed in the long-term pool.
• To facilitate the sale of long-term contracts, the Commission finds it reasonable to let the IOUs include language and modify the sales protocol to sell additional short-term volumes from the long-term pool to reduce near-term costs for PCIA-eligible customers. To optimize their portfolios when selling the remaining 65 percent of their long-term contracts, the IOUs may offer to sell them as both short-term or long-term contracts in the long-term solicitation.
• If an IOU decides to offer both long-term and short-term offers in the long-term solicitation, they should request approval for their methodology to optimize short-term and long-term bids in the Tier 2 Advice Letter file.
• The Commission authorizes the IOUs to each submit Tier 2 Advice Letters with long-term pro forma contract language within 30 days of the issuance of this decision as well as relevant modifications to the Market Offer process adopted in this decision.
• The IOUs shall each submit a Tier 1 Advice Letter within 15 days of the issuance of this decision with updated Market Offer pro forma for short-term contracts as well as relevant modifications to the Market Offer process adopted in this decision.
• It is reasonable to restrict transfers between evaluation team members and the bid teams when the IOU is also a bidder in its own Market Offer solicitation, for the duration of the Market Offer process and until the executed agreements have been submitted to the Commission for approval for both short-term and long-term solicitations.
• In no event should bidders be granted the right to bypass Commission-overseen processes to directly challenge Market Offer request for offer results in state or federal court. Bringing a claim in state or federal court against the IOU before raising it with the Commission may cause the suspension of a solicitation or the overturning of a solicitation and result in years of uncertainty and expensive and time-consuming litigation which would deprive customers of the benefits of monetizing these RECs and brings uncertainty to the Market Offer process.
• The IOU proposal to use the same accounting rules as Voluntary Allocations is reasonable because it lends consistency to the process of allocating sales revenue.
• Regarding the calculation of the forecasted RPS value of the PCIA-eligible portfolios in the respective ERRA proceedings, the IOUs must determine actual and forecasted price and quantity of RPS sales volume.
• Given the revisions adopted in this decision, the IOUs are best placed to recommend a schedule implementing Market Offer. The IOUs may jointly propose two schedules, one in their short-term implementation Advice Letter and the other in their Long-Term implementation Advice Letter.