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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Item #14

ID #10946

ENERGY DIVISION RESOLUTION E-4463

RESOLUTION

Resolution E-4463. Pacific Gas and Electric Company seeks approval of a power purchase agreement with North Sky River Energy, LLC.

PROPOSED OUTCOME: This Resolution approves cost recovery for the long-term renewable energy power purchase agreement between Pacific Gas and Electric Company and North Sky River Energy, LLC, a wholly-owned subsidiary of NextEra Energy Resources, LLC.

ESTIMATED COST: Actual costs are confidential at this time.

By Advice Letter 3885-E filed on August 5, 2011.

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SUMMARY

Pacific Gas and Electric Company's renewable energy power purchase agreement with North Sky River Energy, LLC is approved without modification.

Pacific Gas and Electric Company ("PG&E") filed Advice Letter (AL) 3885-E on August 5, 2011 requesting approval of a 25-year Power Purchase Agreement ("PPA") with North Sky River Energy, LLC ("North Sky" or "Project"), a wholly-owned subsidiary of NextEra Energy Resources, LLC, which resulted from bilateral negotiations.

PG&E proposes that the 163.2 megawatt (MW) wind Project will interconnect directly into the California Independent System Operator (CAISO) balancing authority area at Southern California Edison's ("SCE") High Winds Substation. Annual deliveries, expected at 597 gigawatt-hours (GWh), will be received by PG&E at the CAISO designated PNode with an expected commercial operation date ("COD") of December 31, 2012.

This resolution approves the PPA without modification. PG&E's execution of this PPA is consistent with PG&E's 2009 and 2011 RPS Procurement Plan, including a moderate fit with its resource need, which the Commission approved in Decisions 09-06-018 and 11-04-030. Deliveries under the PPA are fully recoverable in rates over the life of the contract, subject to Commission review of PG&E's administration of the PPA.

The following table summarizes the Project-specific features of the agreement:

Generating Facility

Type

Term
Years

MW Capacity

Annual Deliveries

Operation

Date

Project Location

North Sky

Wind

25

163.2

597 GWh

12/31/2012

Tehachapi, Kern Co., CA

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