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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Item #11

ENERGY DIVISION RESOLUTION E-4347

REDACTED

RESOLUTION

Resolution E-4347. Southern California Edison Company requests approval of two renewable energy power purchase agreements with Desert Sunlight LLC and Desert Stateline LLC, each a wholly owned subsidiary of First Solar, Inc., resulting from Southern California Edison Company's 2008 Renewables Portfolio Standard solicitation.

PROPOSED OUTCOME: This Resolution approves cost recovery for two long-term renewable energy power purchase agreements, one between Southern California Edison Company and Desert Sunlight LLC and one between Southern California Edison Company and Desert Stateline LLC. These power purchase agreements are approved without modification.

ESTIMATED COST: Costs of the power purchase agreements are confidential at this time.

By Advice Letter 2391-E filed on October 16, 2009 and Advice Letter 2391-E-A filed on October 29, 2009.

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SUMMARY

Southern California Edison's renewable energy power purchase agreements with Desert Sunlight LLC and Desert Stateline LLC comply with the Renewables Portfolio Standard (RPS) procurement guidelines and are approved without modification

Southern California Edison Company (SCE) filed Advice Letter (AL) 2391-E on October 16, 2009, requesting Commission approval of two long-term power purchase agreements (PPAs) with Desert Sunlight LLC and Desert Stateline LLC, both wholly owned subsidiaries of First Solar, Inc (First Solar). The Desert Sunlight PPA and Desert Stateline PPA (collectively referred to as the First Solar PPAs) resulted from SCE's 2008 RPS solicitation. On October 29, 2009, SCE filed a supplemental advice letter (AL 2391-E-A) to include the IE report for the First Solar PPAs and an amendment to the Desert Stateline PPA to correct a typographical error.

The following table summarizes the First Solar PPAs:

Generating Facility

Technology Type

Term

(Years)

Capacity

(MW)1

Energy

(GWh/yr)2

Online

Date

Location

Desert Sunlight

Solar Photovoltaic

20

250

571

4/30/20153

Desert Center, CA4

Desert Stateline

Solar Photovoltaic

20

300

673

12/31/20155

San Bernardino, CA 6

The Desert Sunlight project is actively seeking American Recovery and Reinvestment Act of 2009 (ARRA) funding and is listed as a "fast-track" project for permitting by the Bureau of Land Management. The Desert Stateline project is not pursuing ARRA funding at this time.

The First Solar PPAs are priced at or below the applicable 2008 Market Price Referent. Deliveries from the First Solar PPAs are consistent with SCE's 2008 RPS Procurement Plan, which the Commission conditionally approved in Decision (D.) 08-02-008. Deliveries under the First Solar PPAs are reasonably priced and fully recoverable in rates over the life of the contracts, subject to Commission review of SCE's administration of the PPAs.

The First Solar PPAs are approved without modification.

1 MW = megawatts.

2 GWh/yr = gigawatt hours per year.

3 Forecasted initial synchronization date = 3/31/2013.

4 Location is within the California Independent System Operator control area.

5 Forecasted initial synchronization date = 7/31/2013.

6 Location is within the California Independent Systems Operator control area.

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