CHRONOLOGY OF ELECTRIC RESTRUCTURING September 1992 Commission Decision (D.) 92-09-088 formally directs the Division of Strategic Planning to make a comprehensive review of "conditions the electric industry currently confronts, as well as future trends likely to influence the industry... examine the Commission's comprehensive set of regulatory programs, and ...explore alternatives to the current regulatory approach in light of the conditions and trends identified." THE "YELLOW BOOK" February 3, 1993 Division of Strategic Planning issues report California's Electric Services Industry: Perspectives on the Past, Strategies for the Future (the Yellow Book). It reviews the history of the electric industry and California's regulatory structure from 1945-1993; discusses the current incompatibility of Commission regulation and the electric services industry as it has evolved; projects likely future trends in the state's economic outlook and industry development; and presents several options for regulatory reform that could be undertaken by the Commission. April 22 First of three Full Panel Hearings (FPH) on the Yellow Book is held in San Francisco. The CEOs of PG&E, Edison, SDG&E, and SoCalGas discuss their views on the state of the industry and the need for regulatory reform; a panel of utility representatives, large and small customers, consumer advocates and industry experts discusses the challenges and opportunities confronting California and the need for regulatory reform; and a discussion is held with a variety of industry observers examining likely industry trends and how the industry and regulatory structures may need to change. May 25 Second Yellow Book FPH on "Crafting a Vision for California's Electric Services Industry" is held with panels of experts and stakeholders examining the role of utilities in the competitive market for electricity and electric services and looking at alternative industry structures. June 24 Third Yellow Book FPH on "Exploring Alternative Regulatory Reform Strategies for a Changing Electric Services Industry": SDG&E, PG&E, and Southern California Edison present their preferred strategies for industry reform, with a panel of experts and stakeholders providing comments. July-August After conducting three FPH and listening to the counsel of numerous observers, the Commission finds it necessary to pose additional questions on the electric services industry and the need for regulatory reform. The Commission releases its questions on July 15, 1993; responses to the questions are due by August 30, 1993. Over twenty parties respond to the Commission's questions. THE "BLUE BOOK" April 20, 1994 Commission issues "Order Instituting Rulemaking on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation" (R.94-04-031/I.94-04-032 referred to as the "Blue Book"). Comments from parties are due May 20 and reply comments June 6. June 14/15 First Blue Book FPH held in Los Angeles, focusing on "Competitive Premise, Regulator's Role and Marketplace Implications" to hear parties' broad-based reactions on key issues of the Blue Book and the wisdom and practicality of proceeding with the proposed policies. The Commission revises the filing dates prior to the hearing, requiring initial comments by June 8 and reply comments June 21. Comments focus on three issues: (1) whether the generation market is now, or will become, sufficiently competitive for the level of consumer choice envisioned in the Commission's proposal; (2) the Commission's future role in maintaining the integrity of the competitive market for energy supplies now emerging; and (3) the likelihood of the proposal to provide benefits to consumers, businesses, utilities, and the state's economy. June 23 Electric Restructuring documents such as the Blue Book, FPH transcripts, and parties' comments begin to be posted on the Internet to provide wide access to restructuring information. July 1 Second Blue Book FPH held in Sacramento on "Balancing Public Policy Objectives in the Competitive Environment." Hearing focuses on comments regarding how the Blue Book proposal might affect low-income ratepayer assistance, economic development, and low-emission vehicle programs, fuel diversity, demand-side management, energy conservation, and renewable resources. Comments due June 24 and reply comments due July 21. August 4 Third Blue Book FPH held in San Francisco on "Competitive Wholesale Electric Markets: Role, Structure, and Efficacy" and "Market Institutions in the Restructured Electric Industry." Parties are to discuss what role, if any, a competitive wholesale market should play in a restructured electric market, whether a mature competitive wholesale market is a necessary precursor to direct access and retail competition, what role the Commission should play in assuring that an efficient wholesale market exists, what the structure of the market should be and what market institutions must develop. This hearing also examines the role of government in shaping other countries' electric markets and lessons learned from the gas industry. Comments due July 26 and reply comments August 18. August 25 Public Participation Hearings begin (all held at 7 p.m.): Assigned Commissioners' Ruling on July 8 ordered utilities to notify customers of these PPHs by August 15: August 25 Eureka (Fessler) September 7 San Diego (Knight) September 7 San Francisco (Shumway) September 7 South Lake Tahoe (ALJ Malcolm) September 8 Stockton (Shumway) September 12 Martinez (Knight) September 20 San Jose (Conlon and ALJ Wetzell) September 26 Fresno (Fessler) September 27 Pasadena (Eckert) September 16 Fourth FPH held in San Francisco on "Exploring Customer Choice Through Direct Access." So many people wanted to October 24 speak on this issue that this FPH was continued for a second day in San Diego in October. The issue was the desirability and practicality of establishing consumer choice through direct access to electricity suppliers. Comments due August 24 and reply comments due September 30. November Public Participation Hearings continue. Assigned Commissioners' Ruling on September 1 required utilities to notify customers of the following PPHs by October 1: November 1 Bakersfield (Mike Doyle) November 2 Ventura (Shumway) November 2 Garden Grove (ALJ Malcolm) November 3 Carson (Conlon) Hearings originally scheduled for November 9 in San Bernardino and November 10 in Huntington Park were cancelled because the rooms were considered too small for the expected crowd and rescheduled to January 1995: January 3 San Bernardino January 10 Pasadena January 23 Huntington Park December 7 Interim Opinion on revised procedural schedule, working groups, and briefs on legal issues. December 14-22 Evidentiary Hearings on the issue of electric utilities' uneconomic assets and obligations. Utilities submit testimony by November 18 and other parties by December 5. (END OF ATTACHMENT 5)