2. Background

In D.07-09-010, the Commission approved two power purchase agreements (PPAs), along with associated option agreements and proposed leases (collectively, Agreements), between SDG&E and developers J-Power, USA Development Company (J-Power) and Wellhead Power Margarita, LLC (Wellhead) (collectively, the Developers), and found that the Agreements did not require approval under Pub. Util. Code § 851. Under the Agreements, SDG&E would lease to each of the Developers a single parcel of land on which the Developers would construct and operate peaking generation facilities (peakers). The Developers would operate the peakers and sell the output to SDG&E under agreed terms. At the end of the 25-year terms of the Agreements, the leases would expire and SDG&E would take ownership of the peakers.

SDG&E filed the Petition on September 5, 2008. SDG&E filed a minor amendment to the Petition on September 11, 2008.

Ladera Hope, a community organization comprised of residents of properties located near the proposed site of the Wellhead peaker, filed its motion for party status and a response to the Petition on October 6, 2008. Ladera Hope objects to D.07-09-010's granting approval to the Wellhead peaker, and opposes the Petition. SDG&E replied to Ladera Hope's comments on October 16, 2008.