Findings of Fact

1. Commission decision, D.04-01-050, provides interim relief for QFs with contracts expiring prior to January 1, 2006.

2. Pursuant to D.04-01-050, utilities are to continue purchasing power pursuant to a five-year SO1 contract with any QF with a contract set to expire prior to January 1, 2006.

3. The pricing terms of any such contract should be consistent with SRAC policy set forth in D.01-03-067, as modified by D.02-02-028, provided, however, to the extent that the Commission adopts a revised QF pricing policy, the pricing terms of the contract shall be modified to reflect said revised QF pricing policy as of the effective date of the Commission decision adopting a revised pricing policy.

4. The Commission initiated R.04-04-003 and R.04-04-025 to address the state's future policy toward promoting and supporting QF resources and to establish a new pricing mechanism for QF contracts going forward.

5. The two QF dockets, R.04-04-003 and R.04-04-025 are combined for EHs and the hearings are currently scheduled for January 2006.

6. The three IOUs have a number of QF contracts expiring between the time period covered by D. 04-01-050, January 1, 2006, and the anticipated date for a final Commission decision in the combined QF dockets.

7. We find that it is necessary and reasonable to issue a decision to provide interim relief to the QFs with expiring contracts post-2005, so they are not without Commission support during this lag period.

8. We find that it is reasonable to order the IOUs to continue purchasing power pursuant to a five-year SO1 contract from any QF with a contract set to expire post January 1, 2006, and to have the pricing terms of that contract consistent with the SRAC policy se forth in D.01-03-067, as modified by D.02-02-028, subject to a revised pricing policy by this Commission.

9. We find that it is reasonable to treat contracts expiring in the time period between January 1, 2006 and the Commission's final decision in the combined QF dockets the same as contracts expiring up to January 1, 2006.