Discussion

FCE requests a very narrow modification of D.10-04-028 to clarify that SCE can and should attempt to find another suitable site for the CSU Long Beach fuel cell project, within the same budget and other conditions set forth by the Commission. FCE argues this modification is needed so that the benefits of SCE's fuel cell project, which were noted in D.10-04-028, can be achieved. FCE's requested modification is reasonable and should be adopted.

While SCE maintains that no other sites are feasible based on its November 2008 feasibility study, we find it reasonable that SCE should make another effort to consider alternatives now that the CSU Long Beach site has been abandoned. Although the sites in SCE's original application were considered optimal based on the November 2008 feasibility study, this does not mean that alternative sites do not exist today. Indeed, SCE testified in the original case that it would reconsider other sites in the event the selected host sites did not work out. FCE's petition merely asks to clarify that this is allowed. Furthermore, FCE has generously offered to help SCE in this endeavor, and states that it has gained valuable experience working collaboratively and productively with PG&E on fuel cell siting.

DRA's argument opposing FCE's petition relitigates its earlier opposition to the original fuel cell applications. DRA's arguments were rejected in D.10-04-028 and we find no reason to change that determination here.

Finally, SCE argues that FCE's petition should be rejected because SCE has already removed the fuel cell project at CSU Long Beach from its 2012 GRC forecasts. We reject SCE's argument because SCE cannot predetermine an outcome in this petition based on what it chooses to file in its GRC.

Therefore, we will instruct SCE to make a reasonable effort in the next twelve months to explore alternative sites at another state university, college or community college campus or at another state institution. In addition, we authorize SCE to complete a fuel cell project at an alternative site if it can be accomplished within the established budget and applicable conditions approved in D.10-04-028. Specifically, if SCE pursues an alternative site, the cost of the facility at the new site is limited to the dollar amounts approved in D.10-04-028 for both capital and operations and maintenance (O&M) costs, minus whatever SCE will spend on the two fuel cell projects it has already initiated.