3. The Proposed Solar Energy Project
SDG&E's initial proposed Solar Energy Project would authorize SDG&E to build, own, and operate up to 52 MW of direct current (dc)1 solar photovoltaic (PV) generation facilities in its service territory over a five-year period with a spending cap of $250 million. The facilities will be approximately 1-2 MW, located in open areas and parking lots, such as shopping malls, and would utilize tracking technology. SDG&E notes that each project or set of projects will be submitted to the Commission for approval via a Tier 3 Advice Letter before any funds are expended. SDG&E expects that the proposed Solar Energy Project would also result in an additional 25 MW of capacity under the California Solar Initiative (CSI). SDG&E proposes to use a competitive solicitation for the equipment and installation of the solar projects.
SDG&E claims that its proposed Solar Energy Project supports a number of existing state policies and programs regarding renewable generation.2 First, the Commission and the California Energy Commission (CEC) have adopted the 2003 Energy Action Plan (EAP) and subsequent EAP updates with emphasis on renewables and solar energy. The Renewables Portfolio Standard (RPS) program, established in 2002 under SB 1078 (Stats. 2002, ch. 516) and accelerated in 2006 under SB 107 (Stats. 2006, ch. 464) also requires 20% of all retail electric sales of all investor-owned utilities (IOUs) to be served by renewable resources by 2010. The Governor has also signed legislation establishing the CSI to develop 3,000 MW of rooftop solar PV facilities by 2016. Furthermore, AB 32 requires a reduction in the statewide greenhouse gas (GHG) emission to 1990 levels by 2020.
SDG&E claims that it fully supports other initiatives such the CSI and the RPS programs, and views its proposed Solar Energy Project as an adjunct to these initiatives, not as a substitute.3 According to SDG&E, its proposed Solar Energy Project fills a gap in the CSI and the RPS and complements both programs. SDG&E asserts that no project between 1-2 MW has been built in SDG&E's load center through SDG&E's RPS request for offers (RFO) process.4 Further, SDG&E contends that all of the CSI installations located in SDG&E's load center are comprised of only fixed panel installations.
In addition to the request to authorize $250 million for the Solar Energy Project, SDG&E requests funding in the amounts of $214,000 in the first year of the program and $1,662,000 for each program year until SDG&E's 2012 general rate case (GRC) for annual administration and preliminary development costs.
1 All references to the program MWs are to direct current unless otherwise noted.
2 Exhibit 6 at I-3, 4.
3 Exhibit 10 at 2.
4 Exhibit 6 at I-5.
