5. Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Melanie M. Darling is the assigned Administrative Law Judge in this proceeding.
1. As a result of litigation, the South Coast Air Quality Management District delayed issuing an air permit to El Segundo so that El Segundo is unable to complete construction of the Facility under the time frame approved in the El Segundo Contract.
2. El Segundo received its air permit in July 2010 and is on track to receive all other necessary permits to complete construction and go on-line by August 1, 2013.
3. The proposed changes in the Amended El Segundo Contract contained in the Petition for Modification of D.08-09-041, filed on August 25, 2010 by SCE, are reasonable, justified, consistent with the purposes of D.08-09-041, and in the public interest.
The Commission should grant the Petition for Modification of D.08-09-041, filed on August 25, 2010 by Southern California Edison Company as set forth in the order below.
IT IS ORDERED that:
1. The Petition for Modification of Decision 08-09-041 filed by Southern California Edison Company is granted as set forth in Appendix A.
2. Decision 08-09-041 is modified as set forth in Appendix A.
3. Application 08-04-011 is closed.
This order is effective today.
Dated October 28, 2010, at San Francisco, California.
MICHAEL R. PEEVEY
President
JOHN A. BOHN
TIMOTHY ALAN SIMON
NANCY E. RYAN
Commissioners
Commissioner Dian M. Grueneich, being necessarily absent, did not participate.
APPENDIX A
Modifications to Decision 08-09-041
Decision (D.) 08-09-041 is modified as follows:
With respect to the Findings of Fact, add these findings:
21. SCE's conduct in respect of the negotiation of the Amended El Segundo Contract was reasonable.
22. The Amended El Segundo Contract is needed to preserve system reliability and will advance other Commission energy policies.
23. The Amended El Segundo Contract is reasonable, justified, and in the public interest and SCE should recover any payments it makes pursuant to the contract in full through rates or other cost recovery mechanism as may be authorized by the Commission, subject to SCE's prudent administration of the contract.
24. SCE is authorized to allocate the benefits and costs of the Amended El Segundo Contract to all benefitting customers in accordance with D.06-07-029.
With respect to Conclusions of Law, add these conclusions:
6. The Amended El Segundo Contract for up to 550 MW of expected capacity and associated energy with an expected initial delivery date of August 1, 2013, with the term ending July 31, 2023, is reasonable, justified, in the public interest, and should be approved.
7. The costs and benefits of the Amended El Segundo Contract should be shared with all benefitting customers in SCE's service territory, in accordance with D.06-07-029.
With respect to the Ordering Paragraphs, add the following:
10. We authorize Southern California Edison Company to enter into the Amended El Segundo Contract with El Segundo Energy Center, LLC for 550 megawatts of capacity and energy deliverable from August 1, 2013 through July 31, 2023.
11. We authorize Southern California Edison Company to allocate costs and benefits of the Amended El Segundo Contract with El Segundo Energy Center, LLC to all benefitting customers in accordance with the cost allocation methodology adopted in Decision 06-07-029.
(END OF APPENDIX A)
