Conclusions of Law

10. It is reasonable to extend the interim relief and pricing terms that D.04-01-050 provided for QF contracts expiring prior to January 1, 2006, to QF contracts expiring post January 1, 2006, and pre the Commission's issuance of a final decision in the combined QF dockets establishing the state's policy going forward for QF resources and the appropriate pricing structure for such resources.

11. The pricing terms of said contract extended pursuant to this decision shall be modified to reflect any revised QF pricing policy as of the effective date of a Commission decision adopting a revised pricing policy.

ORDER

IT IS ORDERED that:

12. Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company are directed to continue purchasing power pursuant to a five-year SO1 contract from any Qualifying Facility (QF) with a contract set to expire after January 1, 2006, and before the Commission's issuance of a final decision in the combined dockets, Rulemaking (R.) 04-04-003 and R.04-04-025.

13. The pricing terms for any such contract should be consistent with existing SRAC policy set forth in Decision (D.) 01-03-067, as modified by D.02-02-028, provided that 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.

This order is effective today.

Dated December 1, 2005, at San Francisco, California.

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