PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Item #19
ID #9732
ENERGY DIVISION RESOLUTION E-4359
September 23, 2010
Resolution E-4359. Southern California Edison Resolution E-4359. Southern California Edison (SCE) requests approval of thirteen renewable power purchase agreements and four related amendments to two existing power purchase and sale agreements with WM Energy Solutions, Inc.
PROPOSED OUTCOME: This Resolution approves cost recovery for twelve renewable power purchase agreements resulting from SCE's 2009 Renewables Standard Contracts Program and four related amendments to two existing purchase and sale agreements with WM Energy Solutions, Inc. These power purchase agreements and amendments are approved without modification.
ESTIMATED COST: The estimated total cost of the thirteen power purchase agreements is $548,000,000.
By Advice Letter 2457-E filed on March 29, 2010 and Advice Letter 2457-E-A filed on June 15, 2010.
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SUMMARY
Southern California Edison's renewable power purchase agreements (PPA) and amendments comply with the Renewables Portfolio Standard (RPS) procurement guidelines and are approved
Southern California Edison (SCE) filed advice letter (AL) 2357-E requesting Commission review and approval of thirteen renewable power purchase agreements resulting from SCE's 2009 Renewables Standard Contracts (RSC) Program and four related amendments to two existing power purchase and sale agreements with WM Energy Solutions, Inc (WMES), the seller under two of the RSC PPAs. The WMES amendments transition the existing RPS PPAs into RSC PPAs. SCE filed AL 2357-E-A to modify certain information contained in the confidential Appendix C of AL 2357-E. On August 23, 2010, SCE wrote a letter to Commission staff that one of the RSC PPAs (The Aeromen LLC) was cancelled; thus, this Resolution approves only twelve RSC PPAs.
The following table provides a summary of the twelve approved RSC contracts:
Generating Facility |
Technology Type |
Term (Years) |
Capacity (MW) |
Energy (GWh/year) |
Contract Delivery Start Date |
Location |
Relevant 2008 MPR ($/MWh) |
WM Energy Solutions, Inc (Simi Valley) |
Biomass (landfill gas) |
10 |
2.49-5 |
11-22 |
2009 |
Simi Valley, CA |
100.43 |
WM Energy Solutions Inc. (El Sobrante) |
Biomass (landfill gas) |
10 |
3.77-5 |
17-22 |
2009 |
Simi Valley, CA |
100.43 |
Sustainable Energy Capital Partners, LLC |
Solar Photovoltaic (PV) |
20 |
20 |
56 |
2010 |
29 Palms, CA |
113.90 |
TA - High Desert, LLC |
Solar PV |
20 |
20 |
42 |
2011 |
Lancaster, CA |
117.30 |
RE Rio Grande, LLC |
Solar PV |
20 |
5 |
11 |
2012 |
Mojave, CA |
121.26 |
RE Victor Phelan Solar One, LLC |
Solar PV |
20 |
20 |
49 |
2013 |
Adelanto, CA |
125.27 |
RE Rosamond Two LLC |
Solar PV |
20 |
20 |
47 |
2013 |
Rosamond, CA |
125.27 |
Boron Solar, LLC |
Solar PV |
20 |
15 |
30 |
2014 |
San Bernardino County, CA |
128.97 |
North Edwards Solar, LLC |
Solar PV |
20 |
20 |
39 |
2014 |
San Bernardino County, CA |
128.97 |
LSR Kramer South, LLC |
Solar PV |
20 |
20 |
40 |
2014 |
San Bernardino County, CA |
128.97 |
Clear Vista Ranch, LLC |
Wind |
20 |
20 |
55 |
2011 |
Tehachapi, CA |
117.30 |
Sand Canyon of Tehachapi LLC |
Wind |
20 |
20 |
55 |
2011 |
Tehachapi, CA |
117.30 |
SCE initiated the RSC Program for renewable energy projects under 20 megawatts (MW) to provide a streamlined procurement process for smaller RPS-eligible projects. The RSC Program is a bilateral standard contracting program and will encourage contracts with small renewable generators by reducing barriers smaller projects may face when participating in the annual RPS solicitations. Projects with smaller capacities face difficulties competing in renewable solicitations with larger projects because of economies of scale and the cost of submitting bids and negotiating contracts. Each contract executed as part of its 2009 RSC Program is priced at the applicable 2008 Market Price Referent (MPR).
Deliveries from the 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 contracts.
AL 2457-E and AL 2457-E-A are approved without modification.
