Findings of Fact

1. On October 3, 2008, SDG&E filed an application seeking approval of an agreement entered into with Celerity.

2. The Celerity Agreement allows SDG&E to dispatch capacity from a series of diesel generators of varying sizes, in a proscribed number of MWs, up to 210 hours per year, for the life of the agreement.

3. The Celerity Agreement provides a capacity price that is lower than the range of capacity prices that cleared the 2008 Peaker RFOs.

4. The price of capacity alone does not reflect the relative value of the unit when compared to other units bid into the 2008 Peaker RFOs.

5. The capacity will be of significant value to ratepayers only if the Commission and the CAISO affirm that it counts towards SDG&E's resource adequacy requirements.

6. The local nature of the Celerity units means that new transmission facilities, and related costs, are not needed to bring the power to SDG&E's load centers.

7. For particulates and other specified types of emissions, the installation of upgraded filters will offset the increased number of hours that the units would run under the revised agreement.

8. The result of the Celerity Agreement is that there likely will be a minor change up or down, in the overall emissions of carbon dioxide.

9. It is unlikely that the CAISO would consider the Celerity units in any RMR decision regarding the South Bay facility.