4. Procedural Background

According to D.03-06-071 and D.07-02-011, SCE is permitted to seek approval of RPS contracts and amendments to RPS contracts through advice letter filings. However, SCE sought approval of the Alta Contract through the application process because (1) the Alta Contract has a two-piece structure-the Master Agreement and the PPA-that SCE has not previously presented to the Commission for approval and (2) the Alta Contract contains both immaterial and commercially necessary modifications to certain standard contract terms that were identified in D.04-06-014.⁴

There was one response to SCE's application. The Division of Ratepayer Advocates (DRA), while not protesting the application, indicated that it was examining (1) the nature and consequences of the arrangement between SCE and the special purpose entities under the agreement, (2) the relationship of the pricing arrangement to current and future market prices referents, (3) the present understanding of the non-price terms of the anticipated PPAs with the special purpose entities, and (4) the effect of the nature of these lead projects in the development and pricing of renewable resources for the Tehachapi region.

In its response, DRA agreed with SCE's proposed categorization of this proceeding as ratesetting, agreed with SCE that the application and testimony may contain sufficient information and constitute sufficient record for the Commission to rule on the application without the need for evidentiary hearings, did not request an evidentiary hearing, and accepted SCE's proposed schedule.⁵ During the pendency of this proceeding, DRA did not at any time identify specific issues that required resolution by the Commission or indicate that it disagreed in any way with SCE's application, as amended. Therefore, we consider SCE's request to be uncontested.

⁴ In addition, SCE states that during discussions with Energy Division regarding the execution of the Alta Contract, it was suggested by Energy Division that an application would be preferred relative to an advice letter for the reasons discussed above.

⁵ SCE's proposed schedule did not provide for testimony by interested parties.