ALJ/KK3/avs Date of Issuance 5/30/2012

Decision 12-05-026 May 24, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Order Approving the Termination of Qualifying Facility Contracts with San Joaquin Cogeneration Project and Byron Power Partners Cogeneration Project. (U39E)

Application 11-11-014 (Filed November 18, 2011)

DECISION APPROVING THE TERMINATION OF
QUALIFYING FACILITY CONTRACTS
AND SETTLEMENT AGREEMENT

Summary

We approve the unopposed settlement agreements (Settlements) that provide for the termination of power purchase agreements with two existing Qualifying Facilities: San Joaquin Cogeneration Project and Byron Power Partners. We find that the Settlements eliminate uncertain future litigation costs, terminate Pacific Gas and Electric Company's (PG&E) obligations under the power purchase agreements and yield ratepayer benefits by obtaining some of the debt owed by dissolved companies, and should be approved. Finally, we grant PG&E's motion to file a confidential version of this Application under seal pursuant to General Order 66-C.