DATE: August 13, 2003
TO: Board of Supervisors
SUBJECT: An Update on Plans for the Region's Energy Future

SUMMARY:
Overview:
Last year, the California Public Utilities Commission (CPUC) ordered all regulated electric utilities to prepare and file long-term plans that outline how each utility intends to meet energy demand over the next two decades. San Diego Gas and Electric (SDG&E) has submitted its 20-year Energy Resource Plan to the CPUC. A Commission decision is expected by the end of the year.

Similarly, the Regional Energy Policy Advisory Committee, under the auspices of the San Diego Association of Governments (SANDAG), has developed a long-term regional energy plan. The two-part Regional Energy Strategy was crafted with community input by a broad advisory panel including representatives from the County of San Diego, City of San Diego, business leaders and the Utility Consumers Action Network (UCAN). If adopted, it will become part of SANDAG's Regional Comprehensive Plan.

California's electricity crisis and the rolling blackouts of 2000 underscore how important it is that the County continues to monitor energy issues from a local perspective. Today's action would give the Board an update on two important regional energy plans, each of which is designed to ensure San Diego a safe and reliable supply of energy.

Recommendation
VICE CHAIRWOMAN DIANNE JACOB AND SUPERVISOR RON ROBERTS:

1. Receive the SDG&E 20-year Energy Resource Plan and the REPAC Regional Energy
   Strategy 2030.

Fiscal Impact
There is no fiscal impact associated with the proposal.

BACKGROUND
A California Public Utilities Commission (CPUC) decision last year returned the State's regulated utilities to their former role in energy planning and supplies effective January 1, 2003. The decision followed a number of years of deregulation during which utilities were required to sell power plants and purchase electricity from the wholesale market.

The CPUC has ordered that all regulated electric utilities prepare and file long-term energy plans that outline how each utility intends to meet energy demand over the next two decades. San Diego Gas and Electric (SDG&E) has submitted its 20-year Energy Resource Plan to the CPUC for public hearings. A Commission decision is expected by the end of the year.

The Regional Energy Policy Advisory Committee, under the auspices of the San Diego Association of Governments (SANDAG), has developed a similar long-term energy plan. The two-part Regional Energy Strategy 2030 was crafted with community input by a broad advisory panel including representatives from the County of San Diego, City of San Diego, business leaders and the Utility Consumers Action Network (UCAN). If adopted, it will become part of SANDAG's Regional Comprehensive Plan.

California's electricity crisis and the rolling blackouts of 2000 underscore how important it is that the County continues to monitor energy issues from a local perspective. Today's action would give the Board an update on two important regional energy plans, each of which is designed to ensure San Diego a safe and reliable supply of energy.

Respectfully submitted,

DIANNE JACOB
Vice Chairwoman

RON ROBERTS
Supervisor, Fourth District