PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Item #31

ID #10764

ENERGY DIVISION RESOLUTION E-4439

November 10, 2011

REDACTED

RESOLUTION

Resolution E-4439. San Diego Gas & Electric Company requests approval of five renewable energy power purchase agreements, as amended, with LanEast Solar Farm, LLC, LanWest Solar Farm, LLC, Desert Green Solar Farm, LLC, Rugged Solar LLC, and Tierra Del Sol Solar Farm, LLC and an Option to purchase additional capacity from Soitec Solar Development, LLC

PROPOSED OUTCOME: This Resolution approves San Diego Gas & Electric Advice Letters AL 2270-E and AL 2270-E-A with modifications. This Resolution approves cost recovery for the long-term renewable energy power purchase agreements, as amended, between San Diego Gas & Electric Company and LanEast Solar Farm, LLC, LanWest Solar Farm, LLC, Desert Green Solar Farm, LLC, Rugged Solar LLC, and Tierra Del Sol Solar Farm, LLC. without modifications. This Resolution also approves the Option between San Diego Gas & Electric Company and Soitec Solar Development, LLC and requires any power purchase agreements executed as a result of the Option to be filed by Tier 2 Advice Letter.

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

By Advice Letter 2270-E filed on July 14, 2011 and Advice Letter 2270-E-A on September 23, 2011.

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SUMMARY

San Diego Gas & Electric Company's renewable energy power purchase agreements with LanEast Solar Farm, LLC, LanWest Solar Farm, LLC, Desert Green Solar Farm, LLC, Rugged Solar LLC, and Tierra Del Sol Solar Farm, LLC comply with the Renewables Portfolio Standard procurement guidelines and are approved without modification

San Diego Gas & Electric Company (SDG&E) filed Advice Letter 2270-E on July 14, 2011, requesting California Public Utilities Commission (Commission) review and approval of five 25-year renewable energy power purchase agreements (PPAs) between SDG&E and LanEast Solar Farm, LLC, LanWest Solar Farm, LLC, Desert Green Solar Farm, LLC, Rugged Solar LLC, and Tierra Del Sol Solar Farm, LLC. On September 23, 2011, SDG&E filed Advice Letter 2270-E-A requesting approval of amendments to all five PPAs that reduce the price of the PPAs. In addition, AL 2270-E-A, requests approval of an Option for the right, but not the obligation, for SDG&E to purchase additional concentrating photovoltaic capacity from the developer, Soitec Solar Development, LLC.

This resolution approves the LanEast Solar Farm, LLC, LanWest Solar Farm, LLC, Desert Green Solar Farm, LLC, Rugged Solar LLC, and Tierra Del Sol Solar Farm, LLC PPAs without modification. SDG&E's execution of these bilateral PPAs, as amended, is consistent with SDG&E's 2011 RPS Procurement Plan, which the Commission approved in Decision 11-04-030.

Deliveries under the LanEast Solar Farm, LLC, LanWest Solar Farm, LLC, Desert Green Solar Farm, LLC, Rugged Solar LLC, and Tierra Del Sol Solar Farm, LLC PPAs, as amended, are reasonably priced and fully recoverable in rates over the life of the PPAs, as amended, subject to Commission review of SDG&E's administration of the PPAs.

The following table provides a summary of the PPAs:

This resolution also approves the Option between SDG&E and Soitec Solar Development, LLC, but the Commission modifies AL 2270-E-A. Specifically, SDG&E is required to file any PPAs executed as a result of the Option as Tier 2 Advice Letters, instead of Tier 1, as requested by San Diego Gas & Electric in AL 2270-E-A.