13. Renewable Portfolio Standards
Contract Administration and Costs

SCE originates certain power purchase agreements pursuant to California's renewable portfolios standard (RPS) legislation, which became effective on January 1, 2003. Commission resolutions approving these contracts typically provide for the recovery of all payments made pursuant to those contracts, subject to the Commission's review of the reasonableness of SCE's contract administration. Accordingly, SCE provided testimony to set forth its RPS contract-related expenses, describe its RPS contract development and administration activities during the Record Period, and demonstrate that such activities were reasonable and in accordance with all applicable standards.

As indicated above, DRA recommends that that the Commission grant SCE's request that its Non-QF contract administration activities, which include that related to RPS contracts, be found reasonable.

Based on the testimony of SCE and DRA, we conclude that SCE's administration and management of its RPS contracts during the Record Period was reasonable, and the associated RPS costs are recoverable.