CPUC DECISIONS REQUIRING INDEPEND ENT EVALUATOR PART ICIPATION. The CPUC first mandated a requirement for an independent, third-party evaluator to participate in competitive solicitations for utility power procurement in Decision 00-00-000 on December 16, 2004 (Findings of Fact 94-95, Ordering Paragraph 28). The CPUC required use of an IE when Participants in a competitive procurement solicitation include affiliates of investor-owned utilities (IOUs), IOU-built projects, or IOU-turnkey projects. The Decision envisaged that establishing an IE role would serve as a safeguard against anti- competitive conduct in the process of evaluating IOU-built or IOU-affiliated projects competing against Power Purchase Agreements (PPAs) with independent power developers. In approving the IOUs’ 2006 RPS procurement plans, the CPUC issued Decision 06-05- 039 on May 25, 2006. This Decision expanded the CPUC’s requirements, ordering that each IOU use an IE to evaluate and report on the entire solicitation, evaluation, and selection process, for the 2006 RPS RFO and future competitive solicitations. This requirement now applies whether or not IOU-owned or IOU-affiliate generation participates in the solicitation (Finding of Fact 20, Conclusion of Law 3, and Ordering Paragraph 8). This was intended by the CPUC to increase the fairness and transparency of the Offer selection process. Decision 00-00-000 required the IE to report separately from the utility on the bid solicitation, evaluation, and selection process. Based on that Decision, the IE should provide a preliminary report along with the IOU submitting its short list, and a final report with the advice letter or letters for approval of contracts with the selected Offers.
