6. Assignment of Proceeding

The assigned Commissioner is Michael R. Peevey and the assigned ALJ is David M. Gamson.

1. The facility will begin deliveries no later than March 1, 2008.

2. The Independent Evaluator's Report concludes that SDG&E in its RFO designed a fair evaluation for ranking bids, and fairly applied this method to determine its short list.

3. The proposed agreement is for a new facility.

4. The RPS Program requires each utility, including SDG&E, to increase the amount of renewable energy in its portfolio to 20% by 2010, increasing by a minimum of one percent per year.

5. D.07-11-025 set forth standard terms and conditions to be incorporated into RPS PPAs.

6. SDGE filed a supplemental application on December 20, 2007 to amend certain terms and conditions to conform with D.07-11-025.

1. SDG&E's RFO process was fair and reasonable.

2. SDG&E's Proposed Agreement is reasonable.

3. The minimum quantity requirements of D.07-05-028 are met because the short-term contract is with a new facility.

4. The costs of the contract between SDG&E and Sellers are reasonable and in the public interest; accordingly, the payments to be made by SDG&E are fully recoverable in rates over the life of the project, subject to CPUC review of SDG&E's administration of the PPA.

ORDER

IT IS ORDERED that:

1. The Proposed Agreement is approved.

2. San Diego Gas & Electric Company (SDG&E) may seek to have the generation procured under the Proposed Agreement count toward its renewable portfolio standard compliance obligations.

3. The costs of the contract between SDG&E and Sellers are reasonable and in the public interest; accordingly, the payments to be made by SDG&E, at or below the MPR, are fully recoverable in rates over the life of the project, subject to CPUC review of SDG&E's administration of the PPA.

4. Application 07-09-017 is closed.

This order is effective today.

Dated January 31, 2008, at San Francisco, California.

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