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ALJ/CAB/JMH/jva Mailed 12/2/2005

Decision 05-12-009 December 1, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Promote Policy and Program Coordination and Integration in Electric Utility Resource Planning.

Rulemaking 04-04-003

(Filed April 1, 2004)

Order Instituting Rulemaking to Promote Consistency in Methodology and Input Assumptions in Commission Applications of Short-run and Long-run Avoided Costs, Including Pricing for Qualifying Facilities.

Rulemaking 04-04-025

(Filed April 22, 2004)

OPINION REGARDING EXPIRING QUALIFYING FACILITY CONTRACTS

Summary

This decision continues the interim relief as provided in Decision (D.) 04-01-050 for Qualifying Facilities (QFs) with expired or expiring contracts from January 1, 2006 until the Commission issues a final decision in the combined two dockets, Rulemaking (R.) 04-04-003 and R.04-04-025. The Investor-Owned Utilities (IOUs) are to continue purchasing power pursuant to a five-year SO1 contract from QFs with a contract set to expire during this term. The pricing terms should be consistent with the guidelines provided in D.04-01-050, and shall be modified to reflect said revised QF pricing policy, as of the effective date of a Commission decision adopting such a revised pricing policy.

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