Background

In April 2009, Southern California Edison Company (SCE) submitted an application requesting Commission approval to install, own, and operate three fuel cell units with a combined capacity of up to three megawatts (MW) on three University of California (UC) and California State University (CSU) campuses. SCE's application specified that CSU San Bernardino and CSU Long Beach would host fuel cells deployed in combined heat and power applications, and that UC Santa Barbara would host an electric-only fuel cell project. Earlier in 2009, Pacific Gas and Electric Company (PG&E) had submitted a similar application for three fuel cell projects of its own with a combined capacity of three MW. The Commission consolidated the PG&E and SCE applications due to similar issues of law and fact.

In Decision (D.) 10-04-028, the Commission approved both the PG&E and SCE applications with minor modifications, as set forth in the decision. The Commission concluded that fuel cells can play an important role in California's future energy mix and that the Commission should support the advancement of fuel cell technologies, which can supplement the Commission's Self Generation Incentive Program (SGIP) to advance fuel cell technologies. (D.10-04-028, Conclusions of Law 1-3.)

Implementation of D.10-04-028 proceeded immediately for both PG&E and SCE and five of the six fuel cell projects have been successfully installed or are in process. One of SCE's fuel cell projects at CSU Long Beach, however, has been abandoned. According to SCE testimony recently submitted in its 2012 General Rate Case (GRC), SCE does not intend to go forward with the project at CSU Long Beach due to its inability to negotiate a reasonable ground lease with CSU Long Beach.¹ SCE's capital forecast in its GRC application indicates it has cancelled the project and is not pursuing an alternative location for the fuel cell project authorized in D.10-04-028.²

¹ See Application (A.) 10-11-015, Exhibit (Exh.) SCE-084 at 10: 11-12; and A.10-11-015, Reporter's Transcript at 4334: 19 - 4335: 9.

² Id., Exh. SCE-084 at 10: 16-22.