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PROPOSED OUTCOME: This resolution approves cost recovery of a power purchase agreement with 82LV 8ME, LLC. The power purchase agreement is approved without modifications.

ESTIMATED COST: Costs of the power purchase agreements are confidential at this time.

By Advice Letter 2332-E filed on March 5, 2012.

Generating Facility

Technology Type

Term (Years)

Maximum Capacity (MW)

Energy (GWh/year)

Online

Date

Location

Mt. Signal I Solar Farm

Solar PV, new

25

150 - 200

495

June 30, 2013 (100 MW)

Sept. 30, 2013 (150 MW)

Dec. 31, 2013 (150-200 MW)

Calexico, Imperial County, California

         
   

Compliance Period
2011-2013

Compliance Period
2014-2016

Compliance Period
2017-2020

 

RPS Target

10,283

13,662

23,487

         
 

Operating

7,858

6,515

6,671

 

Approveda

2,159

9,640

13,557

 

Subtotal

10,017

16,155

20,228

         
 

Needb

265

-2,493

3,259

 

Mt. Signal

155

1,485

1,485

         
 

Units: GWh

     
 

a The Commission assumes 60% success for projects under development

 

b The Commission assumes no banking of forecasted generation because banking rules have not been adopted

10. Pursuant to D.02-08-071, SDG&E's Procurement Review Group participated in the review of the Mt. Signal PPA.

11. It is reasonable to expect that Mt. Signal will meet the terms and conditions of the PPA.

12. The confidential appendices, marked "[REDACTED]" in the public copy of this resolution, as well as the confidential portions of the advice letter, should remain confidential at this time.

13. Procurement pursuant to the Mt. Signal PPA is procurement from eligible renewable energy resources for purposes of determining SDG&E's compliance with any obligation that it may have to procure eligible renewable energy resources pursuant to the California Renewables Portfolio Standard (Public Utilities Code Section 399.11 et seq.), D.11-12-020 and D.11-12-052, or other applicable law.

14. The immediately preceding finding shall not be read to allow generation from a non-RPS eligible renewable energy resource under this power purchase agreement to count towards an RPS compliance obligation. Nor shall that finding absolve SDG&E of its obligation to enforce compliance with this power purchase agreement.

1 SB 1078 (Sher, Chapter 516, Statutes of 2002); SB 107 (Simitian, Chapter 464, Statutes of 2006); SB 1036 (Perata, Chapter 685, Statutes of 2007); SB 2 (1X) (Simitian, Chapter 1, Statutes of 2011, First Extraordinary Session).

2 All further references to sections refer to Public Utilities Code unless otherwise specified.

3 D.11-12-020 established a methodology to calculate procurement requirement quantities for the three different compliance periods covered in SB 2 (1X) (2011-2013, 2014-2016, and 2017-2020).

4 8minutenergy: http://www.8minutenergy.com/ and AES Solar: http://www.aes-solar.com.

5 Pub. Util. Code § 399.13(a)(5).

6 Pub. Util. Code § 399.13.

7 SDG&E's 2011 RPS Procurement Plan was approved by D.11-04-030 on April 14, 2011.

8 In D.08-12-058, which approved SDG&E's Sunrise Powerlink, SDG&E committed to procuring 33 percent of its electricity from renewables by 2020.

9 In addition to increasing California's RPS requirement to 33 percent from 20 percent, SB 2 (1X) (Simitian, Chapter 1, Statutes of 2011, First Extraordinary Session) establishes three different compliance periods. In D.11-12-020 the Commission defined the compliance periods (2011-2013; 2014-2016; and 2017-2020) and the RPS procurement quantity requirements for each compliance period.

10 The Commission's forecast of SDG&E's RPS Procurement Portfolio is based on SDG&E's March 2012 RPS Progress Report, SDG&E's March 2012 Project Development Status Report, and the Commission's RPS Project Status Table. This forecast does not include any contracts pending Commission approval, executed, but not filed, nor contracts under negotiation.

11 Includes: operating RPS-eligible generation under CPUC-approved PPAs and RPS-eligible generation under CPUC-approved PPAs that are under development. The Commission assumed that projects under development will have a 60 percent rate of meeting the terms and conditions of the PPAs.

12 See § 399.13(a)(2)(A).

13 "Baseload generation" is electricity generation at a power plant "designed and intended to provide electricity at an annualized plant capacity factor of at least 60%." Pub. Util. Code § 8340 (a).

14 D.07-01-039, Attachment 7, p. 4.

15 SDG&E's PRG includes representatives of the Union of Concerned Scientists, the Coalition of California Utility Employees, The Utility Reform Network, the California Public Utility Commission's Energy Division and Division of Ratepayer Advocates, and the California Department of Water Resources.

16 8ME press release: http://www.8minutenergy.com/news/press/boardapproval.

17 BLM project site: http://www.blm.gov/ca/st/en/prog/energy/fasttrack/Mount_Signal.html.

18 ARRA 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits: http://www.treasury.gov/initiatives/recovery/Pages/1603.aspx.

19 See, e.g. D.08-04-009 at Appendix A, STC 6, Eligibility.

20 See, e.g. D.08-04-009 at Appendix A, STC 1, CPUC Approval.

21 Excerpt from: Report of the Independent Evaluator on the 200 MW Mt Signal I Solar contract relative to the shortlist from the 2011 Request for Offers from Eligible Renewable Resources (2011 Renewable RFO), Jonathan Jacobs, PA Consulting,
February 28, 2012, as submitted with Advice Letter 2332-E.

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