Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned Administrative Law Judge in this proceeding.

1. In D.10-04-028, the Commission approved the fuel cell projects of PG&E and SCE.

2. SCE cancelled the CSU Long Beach fuel cell project in early 2011 when it could not reach agreement with the university on the lease of campus space.

3. D.10-04-028 does not contain specific language allowing SCE to relocate its fuel cell projects and does not direct SCE to seek an alternate site if problems arise with the planned project locations.

4. In A.09-04-018, SCE identified alternate sites and stated it would reconsider other sites in the event the selected host sites did not work out.

5. FCE did not file its petition within one year of the effective date of D.10-04-028 because SCE only recently stated its intention to abandon the fuel cell project at CSU Long Beach.

1. SCE should make an effort in the next 12 months to consider alternative sites for the abandoned CSU Long Beach fuel cell project.

2. D.10-04-028 should be modified to clarify that the project benefits are not specific to any specific host site and PG&E and SCE should seek an alternate site for an approved fuel cell project at another campus or state institution, as needed.

3. D.10-04-028 should be modified to authorize PG&E and SCE to complete the fuel cell projects authorized in the decision at alternative sites, provided that the projects are completed within the budget limits and conditions set forth in D.10-04-028.

4. If SCE pursues an alternative site, the total cost of the facility at the new site should be limited to the capital costs and O&M costs approved in D.10-04-028 minus whatever SCE will spend on the two fuel cell projects it has already initiated.

5. FCE's petition should be considered although it was filed more than a year after the Commission issued D.10-04-028.

ORDER

IT IS ORDERED that:

1. The petition of FuelCell Energy, Inc. filed on December 6, 2011, is granted.

2. Decision 10-04-028 is modified as follows:

The project benefits identified in this decision are not specific to any specific host site, and Pacific Gas and Electric Company and Southern California Edison Company should seek an alternate site for an approved fuel cell project at another campus or state institution, as needed.

In the event that either Pacific Gas and Electric Company (PG&E) or Southern California Edison Company (SCE) is unable to complete a project authorized by this decision at the host site initially identified in its respective application, PG&E and SCE shall seek alternate host sites at other state university, college or community college campuses or at other state institutions. PG&E and SCE are authorized to complete any project authorized by this decision at such alternative site, provided that the project is completed within the budget limits and conditions set forth in this decision.

3. Within 12 months of the effective date of this order, Southern California Edison Company shall make a reasonable effort to identify an alternative site for the California State University Long Beach fuel cell project approved in Decision 10-04-028.

4. Southern California Edison Company must file a Tier 2 advice letter identifying any alternative site and project costs and demonstrating that total costs will not exceed those adopted in Decision 10-04-028.

5. Application (A.) 09-02-013 and A.09-04-018 are closed.

This order is effective today.

Dated April 19, 2012, at San Francisco, California.

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