1. Public Utilities Section 399.2.5
Section 399.2.5 authorizes the Commission to deem a transmission project "necessary to the provisions of electrical service" if the project is "necessary to facilitate the achievement of the [state's] renewable power goals." (Pub. Util. Code, §399.2.5(a).)3 The State's renewable power goals, described in part, in §399.11, include the goal "to attain a target of generating 20 percent of total retail sales of electricity in California from eligible renewable energy resources by December 31, 2010...."
A project qualifies as "necessary to facilitate" achievement of the State's renewable power goals under section 399.2.5, and thereby qualify for the cost recovery under the statute, if the project proponent demonstrates by a preponderance of the evidence that: (1) a project would bring the grid renewable generation that would otherwise remain unavailable; (2) the area within the line's reach would play a critical role in meeting the [Renewables Portfolio Standard (RPS)] goals; and (3) the cost of the line is appropriately balanced against the certainty of the line's contribution to economically rational RPS compliance." (See Application of SCE for a CPCN Concerning Antelope-Pardee Project ("ATP") (2007) [D.07-03-012] ___Cal.P.U.C.3d__, p. 16, establishing the three-prong test.)
In its application for rehearing, CBD claims that the findings of fact and conclusions of law regarding the finding of "need" under section 399.2.5 are not supported by the evidence in the record.4 (See Rehearing App., pp. 4-5.) CBD argues that the Commission unlawfully disregards alterative available transmission to reach its conclusion, and improperly relies on the existence of power purchase agreements ("PPAs") to establish need under section 399.2.5. These claims lack merit.
3 Specifically, Section 399.2.5 states: "Notwithstanding Sections 1001 to 1013, inclusive, an application of an electrical corporation for a certificate authorizing the construction of new transmission facilities is necessary to the provision of electric service if the Commission finds that the new facility is necessary to facilitate achievement of the renewable portfolio standard established in Article in 16...."
4 Specifically, CBD argues that EITP is not needed to meet reliability needs or increased demand. It asserts that there is insufficient evidence in the record that other transmission alternatives cannot be utilized, the project presents unacceptable costs, and alternatives for renewable generation that would avoid impacts to species and inhabitants. (See CBD Rehrg. App., p. 4.)
