5. Conclusion
We evaluated SCE's application for approval of the Blythe PPA in light of the following factors: conduct of the RFO; need for new capacity in SCE's service territory; need for new capacity by August 1, 2010; applicability of SB 1368 and GHG emissions; transmission delivery; compliance with the EAP loading order; and LCBF evaluation. In summary, we make the following findings:
1. SCE's conduct in respect to the fast-track RFO and the selection of Blythe was reasonable;
2. The Blythe PPA is needed to preserve system reliability and there is no precise certainty as to whether the need for power from Blythe will be significantly greater in 2011 than in August 2010 when Blythe is scheduled to come on line;
3. The Blythe facility is an existing operating CCGT generating unit that will be newly interconnected to the CAISO control area under the terms of the contract and is therefore "deemed compliant" with the EPS rules;
4. The most recent CAISO Reliability Study indicates that the Blythe facility can reliably interconnect with the grid once the developer performs several interconnection upgrades identified in the study;
5. The most recent CAISO Deliverability Study indicates that the project is 96% deliverable under current system conditions;
6. SCE's 2006 LTPP indicated that SCE complied with the EAP loading order in assessing what resources were needed to meet the needs of its service territory; and
7. SCE utilized a LCBF methodology in evaluating the Blythe bid against other bids in the fast-track RFO.
We therefore approve SCE's application for approval of the Blythe PPA. Consistent with the PPA, payments to Blythe will begin when the project comes on-line. In addition, we find that the Blythe payments are recoverable in full through rates, subject only to SCE's prudent administration of the contract, and that the costs and benefits of the Blythe PPA are to be allocated to all benefitting customers in accordance with D.06-07-029.21
21 We recognize that the benefits of the project are not fully available at this time due to the CAISO Deliverability Study's finding that the project is only 96% deliverable under existing system conditions. However, because this fact would not have affected the project's selection in the RFO, we conclude that all benefitting customers should be allocated the full share of costs and available resources associated with this project.
