ALJ/RMD/jt2 Date of Issuance 11/17/2011

Decision 11-11-012 November 10, 2011

BEFORE THE PUBLIC COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program.

Rulemaking 11-05-005
(Filed May 5, 2011)

DECISION GRANTING, WITH MODIFICATIONS, THE MOTION BY CLEAN COALITION FOR IMMEDIATE AMENDMENTS OF THE SOUTHERN CALIFORNIA EDISON COMPANY AB 1969 CREST POWER PURCHASE AGREEMENT

TABLE OF CONTENTS

Title Page

DECISION GRANTING, WITH MODIFICATIONS, THE MOTION BY CLEAN COALITION FOR IMMEDIATE AMENDMENTS OF THE SOUTHERN CALIFORNIA EDISON COMPANY AB 1969 CREST POWER PURCHASE AGREEMENT 2 2

1. Summary 2 2

2. Background 2 2

3. Jurisdiction 7 7

4. SCE Opposition to Clean Coalition Motion 7 7

5. Clean Coalition Motion - Request for Revisions to CREST PPA 9 9

5.1. Section 2.8 (Date of Initial Operation) and Section 4.2(d)(3) (Term and Termination) of the CREST PPA 10 10

5.2. Section 4 (Term and Termination) of the CREST PPA 14 14

5.3. Section 12 (Assignment) of the CREST PPA 17 17

5.4. Sections 14.2 (future modification) and 14.4 (application for modifications) of the CREST PPA 19 19

5.5. Addition of Force Majeure and Indemnification Provisions to CREST PPA 21 21

5.6. Modification of the CREST PPA to Provide More Interconnection Agreement Options 24 24

6. Additional Modifications to the CREST PPA 30 30

6.1. Execution Date of the CREST PPA for Purposes of Determining
Rates 30 30

6.2. Curtailment under the CREST PPA 30 30

6.3. Collateral Requirement for the CREST PPA 33 33

7. Comments on Proposed Decision 34 34

8. Assignment of Proceeding 35 35

Findings of Fact 35 35

Conclusions of Law 40 40

ORDER 42 42

Attachment A - Southern California Edison Company General Order 96-B Electric Additional Service List.

DECISION GRANTING, WITH MODIFICATIONS, THE MOTION BY CLEAN COALITION FOR IMMEDIATE AMENDMENTS OF THE SOUTHERN CALIFORNIA EDISON COMPANY AB 1969 CREST POWER PURCHASE AGREEMENT

1. Summary

This decision grants, with modifications, the motion by Clean Coalition,¹ entitled Motion of Clean Coalition for Immediate Amendments of AB 1969 CREST Power Purchase Agreement. Clean Coalition's motion requests changes to the Southern California Edison Company's (SCE) California Renewable Energy Small Tariff Power Purchase Agreement (PPA) so that small renewable developers have an acceptable PPA to receive federal cash grants under § 1603 of the American Recovery and Reinvestment Tax Act for their projects. We direct SCE to file a Tier 1 advice letter to, among other changes, (1) modify Section 2.8 (Date of Initial Operation) and Section 4.2(d)(3) (Term and Termination); (2) modify Section 4 (Term and Termination); (3) modify Section 12 (Assignment); (4) remove Sections 14.2 (future modifications) and 14.4 (application for modifications); and 5) add four new contract sections, Force Majeure, Indemnification, Curtailment, and Collateral Requirements. We also clarify certain matters regarding interconnection. This proceeding remains open.

¹ The Clean Coalition describes itself as a California-based advocacy group, part of Natural Capitalism Solutions, a non-profit entity based in Colorado which advocates primarily for vigorous Feed-in Tariffs and wholesale distributed generation.