Assignment of Proceeding
Michael Peevey is the assigned Commissioner, and Hallie Yacknin is the assigned ALJ in this proceeding.
1. As a result of this scheduling flexibility that they allow PG&E, the three power purchase agreements between PG&E and Kern Front Limited, Double C Limited, and High Sierra Limited will provide approximately $12 million greater market value than the contracts that the sellers could receive in the event that they obtained must-take contracts under the QF/CHP Settlement.
2. The power purchase agreements provide greater operational benefits than PG&E could receive in the event that the sellers obtained must-take contracts under the QF/CHP Settlement.
3. The power purchase agreements may result in reduced GHG emissions than could occur in the event that the sellers obtained must-take contracts under the QF/CHP Settlement.
4. Procurement under the power purchase agreements will satisfy the Emissions Performance Standard adopted by D.07-01-039.
5. Procurement under the power purchase agreements qualifies to meet PG&E's MW targets and GHG emissions reductions under the QF/CHP Settlement.
6. Procurement under the power purchase agreements will serve the Commission's policy preference for the utilities to maintain their current level of QF capacity, as provided in D.07-12-052.
1. The power purchase agreements are just and reasonable and should be approved.
2. Procurement under the power purchase agreements should count toward PG&E's MW and GHG emissions reduction targets.
3. PG&E should proportionately allocate annually the power purchase agreements' net capacity costs and all resource adequacy benefits associated with them to all bundled, electric service provider, community choice aggregator and departing load customers on a non-bypassable basis pursuant to § 13.2.1 of the QF/CHP Settlement, and recover the bundled customer costs associated with them in its Energy Resources Recovery Account.
4. As D.10-12-035 is not suspended by virtue of the pending applications for rehearing the decision, it is inappropriate to make this decision approving the power purchase agreements contingent on the resolution of those applications.
5. The proper vehicle for seeking to apply future potential changes to the QF/CHP Settlement, D.10-12-035, or the CHP Program to the power purchase agreements and/or PG&E's recovery of costs incurred under them is by petition to modify this decision approving the power purchase agreements.
6. As the PPAs are contingent on the QF/CHP Settlement taking effect, it is unnecessary to condition approval of the PPAs on such events
7. A.10-10-004 should be closed.
8. This order should be effective immediately.
IT IS ORDERED that:
1. Pacific Gas and Electric Company's power purchase agreements with Kern Front Limited, Double C Limited, and High Sierra Limited are approved.
2. Procurement under Pacific Gas and Electric Company's power purchase agreements with Kern Front Limited, Double C Limited, and High Sierra Limited shall count toward Pacific Gas & Electric Company's megawatt and greenhouse gas emissions reduction targets.
3. Pacific Gas and Electric Company shall proportionately allocate annually the net capacity costs of its power purchase agreements with Kern Front Limited, Double C Limited, and High Sierra Limited, and all resource adequacy benefits associated with them, to all bundled, electric service provider, community choice aggregator and departing load customers on a non-bypassable basis, and shall recover the bundled customer costs of the power purchase agreements in its Energy Resources Recovery Account.
4. Application 10-10-004 is closed.
This order is effective today.
Dated March 10, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
CATHERINE J.K. SANDOVAL
Commissioners
I abstain.
/s/ MICHEL PETER FLORIO
Commissioner
