ALJ/MD2/avs Date of Issuance 11/2/2010
Decision 10-10-029 October 28, 2010
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E), for Approval of Results of Standard Track of Its New Generation Request for Offers and For Cost Recovery. |
Application 08-04-011 (Filed April 4, 2008) |
DECISION GRANTING PETITION BY SOUTHERN CALIFORNIA EDISON COMPANY FOR MODIFICATION OF DECISION 08-09-041
TABLE OF CONTENTS
Title Page
DECISION GRANTING PETITION BY SOUTHERN CALIFORNIA EDISON COMPANY FOR MODIFICATION OF DECISION 08-09-041 1
Summary 1
1. Background and Procedural History 1
2. Petition for Modification 1
2.1. The SCAQMD Permit Delays 1
2.2. The Amendments to El Segundo PPA 1
2.3. Evaluations of the Amendments to the El Segundo Contract 1
3. Discussion 1
3.1. Appropriate Procedure 1
3.2. Justification for Late Filed Petitionfor Modification 1
3.3. Reasonable, Justified and in the Public Interest 1
4. Comments on Proposed Decision 1
5. Assignment of Proceeding 1
Findings of Fact 1
Conclusion of Law 1
ORDER 1
APPENDIX A - Modifications to Decision 08-09-041
DECISION GRANTING PETITION BY SOUTHERN CALIFORNIA EDISON COMPANY FOR MODIFICATION OF DECISION 08-09-041
Summary
Decision (D.) 08-09-041 approved the application by Southern California Edison Company (SCE) for authorization to sign four power purchase agreements (Contracts) for up to 1350.30 megawatts (MW) selected in the standard track of its New Generation Request for Offers (New Gen RFO), and approved the allocation of the benefits and costs of the four Contracts to all benefitting customers in accordance with D.06-07-0291 and D.07-09-044.2
One of the approved Contracts was a ten-year contract with El Segundo Energy Center LLC (El Segundo), a wholly-owned subsidiary of NRG Energy, Inc., for up to 550 MW of expected capacity and associated energy from El Segundo Energy Center Facility (Facility) located in El Segundo, California. However, due to litigation which led to a moratorium on required air permits for the underlying Facility, the original construction schedule was delayed.
This Decision grants the Petition for Modification of D.08-09-041 filed by SCE on the grounds that it is reasonable, justified and in the public interest. The freeze on air permits was lifted after the enactment of new legislation3, and the proposed amendments are the result of arms-length negotiations between SCE and El Segundo to move the project forward with a revised schedule.
The effect of this modification is to approve the amendments to the Contract between SCE and El Segundo, which provides limited changes to the terms and conditions of the Agreement, including a reduction in price and deferral of the delivery date by about two years from June 1, 2011 to August 1, 2013. The Commission concludes that the amendments are reasonable, justified, and in the public interest.
1 D.06-07-029 (July 20, 2006) directed SCE to issue a RFO seeking up to 1,500 MW of long-term contracts for New Generation resources and adopted a cost allocation methodology that allows costs and benefits of new generation to be shared by all benefitting customers within an investor-owned utility's (IOU's) service territory.
2 D.07-09-044 (September 20, 2007) established the particulars of the energy auctions to be held periodically to help establish the net cost of capacity to be shared by all benefitting customers within an IOU's service territory.
3 Senate Bill (SB) 827 (Stats. 2009, ch. 206).
