PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Item #16

ID #10063

ENERGY DIVISION RESOLUTION E-4390

January 27, 2011

REDACTED

RESOLUTION

Resolution E-4390. Pacific Gas and Electric Company requests approval of contracts with Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP, and Blackspring Ridge IB Wind Project LP; all affiliates of Greengate Power Corporation.

PROPOSED OUTCOME: This Resolution approves cost recovery for Pacific Gas and Electric Company's contracts with Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP, and Blackspring Ridge IB Wind Project LP. The contracts are approved without modifications.

ESTIMATED COST: Costs of the contracts are confidential at this time.

By Advice Letter 3620-E filed on February 22, 2010, supplemental Advice Letter 3620-E-A filed on May 5, 2010 and supplemental Advice Letter 3620-E-B filed on January 20, 2011.

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SUMMARY

Pacific Gas and Electric Company's contracts with Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP, and Blackspring Ridge IB Wind Project LP comply with the Renewables Portfolio Standard (RPS) procurement guidelines and are approved without modification

Pacific Gas and Electric Company (PG&E) filed Advice Letter (AL) 3620-E on February 22, 2010, requesting California Public Utilities Commission (Commission) review and approval of three contracts between PG&E and Greengate Power Corporation. For purpose of meeting its RPS targets, PG&E executed the 20 year contracts with Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP, and Blackspring Ridge IB Wind Project LP, all subsidiaries of Greengate, through bilateral negotiations. Each 150 megawatt wind facility is being developed in Alberta, Canada. The Halkirk I facility is scheduled to achieve commercial operation by December 31, 2011 and the Blackspring Ridge IA and Blackspring Ridge IB facilities are scheduled to achieve commercial operation by December 31, 2012. On January 20, 2011, PG&E filed supplemental AL 3620-E-B to bring the contracts into conformance with Decision (D.) 10-03-021, as modified by D.11-01-025.

This resolution approves the Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP, and Blackspring Ridge IB Wind Project LP contracts (collectively, Greengate contracts) without modification. PG&E's execution of these contracts is consistent with PG&E's 2009 RPS Procurement Plan, including its resource need, which the Commission approved in D.09-06-018. Pursuant to D.10-03-021, as modified by D.11-01-025, the Greengate contracts constitute a renewable energy credits (RECs) only transaction. This resolution finds that the prices in the Greengate contracts are reasonable.

Subject to ex-post verification through the California Energy Commission's (CEC) verification and tracking methodology, the CEC has determined that PG&E's contract structure meets the RPS delivery requirements established in the California Energy Commission's Renewables Portfolio Standard Eligibility Guidebook.

Deliveries under the Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP, and Blackspring Ridge IB Wind Project LP contracts are reasonably priced and fully recoverable in rates over the life of the contracts, subject to Commission review of PG&E's administration of the contracts.

The following table provides a summary of the Greengate contracts: