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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Item #20

ID #11055

ENERGY DIVISION RESOLUTION E-4467

REDACTED

RESOLUTION

Resolution E-4467. San Diego Gas & Electric Company requests approval of a renewable energy power purchase agreement, as amended, with Energia Sierra Juarez U.S., LLC.

PROPOSED OUTCOME: This resolution approves cost recovery for the long-term renewable energy power purchase agreement, as amended, between San Diego Gas & Electric Company and Energia Sierra Juarez U.S., LLC. The power purchase agreement, as amended, is approved without modification.

ESTIMATED COST: Approximately $41 million per year for 20 years. Approximately $820 million over the life of the contract. (nominal).

By Advice Letter 2247-E filed on April 19, 2011 and Advice Letter 2247-E-A filed on October 6, 2011.

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SUMMARY

San Diego Gas & Electric Company's renewable energy power purchase agreement with Energia Sierra Juarez U.S., LLC complies with the Renewables Portfolio Standard procurement guidelines and is approved without modification.

San Diego Gas & Electric Company (SDG&E) filed Advice Letter 2247-E on April 19, 2011 requesting California Public Utilities Commission (Commission) approval of a 20 year renewable energy power purchase agreement between SDG&E and Energia Sierra Juarez U.S., LLC. On October 6, 2011, SDG&E filed supplemental Advice Letter 2234-E-A, requesting approval of an amendment to the power purchase agreement that reduces the price of the power purchase agreement and modifies the online date of the facility.

The power purchase agreement is the result of SDG&E's 2009 RPS solicitation. Generation pursuant to the amended power purchase agreement will be from a new wind facility that will be between 100 and 156 megawatts capacity. The wind facility is being developed in Jacume, Baja California, Mexico and it is expected to achieve commercial operation in the fourth quarter of 2013.

Table 1: Summary of the Energia Sierra Juarez, U.S., LLC power purchase agreement

Generating Facility

Technology Type

Term (Years)

Maximum Capacity (MW)

Energy (GWh/year)

Online

Date

Location

Energia Sierra Juarez

Wind

20

100 - 156

324 - 422

18 months after CPUC and FERC approval or 8/31/2013

Jacume, Baja California, Mexico

This resolution approves the Energia Sierra Juarez, U.S., LLC power purchase agreement, as amended, without modification. SDG&E's execution of this power purchase agreement, as amended, is consistent with SDG&E's 2011 RPS Procurement Plan, including its resource need, which the Commission approved in Decision 11-04-030. Deliveries under the Energia Sierra Juarez, U.S., LLC power purchase agreement, as amended, are reasonably priced and fully recoverable in rates over the life of the power purchase agreement, subject to Commission review of SDG&E's administration of the power purchase agreement.

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