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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

I.D. #7353

ENERGY DIVISION RESOLUTION E-4126

RESOLUTION

Resolution E-4126. Southern California Edison Company requests approval of two renewable portfolio standard power purchase agreements between Caithness Dixie Valley, LLC and ORNI #18, LLC. These contracts are approved without modifications.

By Advice Letter (AL) 2137-E filed on July 13, 2007, AL 2137-E-A filed on August 16, 2007 and AL 2137-E-B filed on January 10, 2008

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SUMMARY

Southern California Edison's (SCE) renewable energy contracts comply with the Renewable Portfolio Standard (RPS) procurement guidelines and are approved

SCE filed advice letter (AL) 2137-E on July 13, 2007 requesting Commission review and approval of two renewable energy power purchase agreements (PPAs) executed with Caithness Dixie Valley, LLC (Dixie Valley) and ORNI #18, LLC (ORNI 18). SCE filed AL 2137-E-A on August 16, 2007 to supplement, in part, AL 2137-E in order to include the Independent Evaluation Report for SCE's 2006 renewable resource solicitation. SCE filed Al 2137-E-B on January 10, 2008 to supplement, in part, AL 2137-E and AL 2137-E-A to reflect changes to the PPAs made in order to comply with Commission Decision (D.) 07-11-025, "Opinion on Amended Petition for Modification of Decision 04-06-014 Regarding Standard Terms and Conditions", issued November 19, 2007.

Generating facility

Type

Term Years

MW Capacity

GWh Energy

Online

Date

Location

Dixie Valley

Geothermal, existing

20

50

394

7/2018

Dixie Valley, NV

ORNI #18

Geothermal, new

20

50-100

416-832

12/2009

North Brawley, CA

The Agreement between Caithness Dixie Valley and SCE is for 20 years of geothermal energy from an existing plant. Currently, SCE receives eligible renewable energy from this facility under an interim standard offer no. 4 (ISO4) contract. The Dixie Valley contract will begin in July 2018, when the ISO4 is set to expire. The ORNI 18 project is for 20 years of geothermal energy from a new facility, expected to be come online in December 2009.

Deliveries from these PPAs are reasonably priced and the contract prices are fully recoverable in rates over the life of the contract, subject to Commission review of SCE's administration of the contracts. Both contract prices are below the 2006 market price referent.

Confidential information about the contract should remain confidential

This resolution finds that certain material filed under seal pursuant to Public Utilities (Pub. Util.) Code Section 583, General Order (G.O.) 66-C, and D.06-06-066 should be kept confidential to ensure that market sensitive data does not influence the behavior of bidders in future RPS solicitations.

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