4. Conclusion

We approve the petition to the extent provided herein, and deny it in every other respect. Specifically, we modify D.09-06-049 and D.10-12-048 to accomplish the following:

1. Reduce the 250 MW UOG portion to no more than 125 MW, with the maximum amount of ground-mounted facilities increased from 10% to 20% (25 MW), but other parameters unchanged; require SCE to file an advice letter for authorization if UOG procurement will be less than 115 MW by the end of year five.

2. Reduce the 250 MW IPP portion to no more than 125 MW, with the maximum amount of ground-mounted facilities increased from 10% to 20% (25 MW), but other parameters unchanged; require SCE to file an advice letter for authorization if IPP procurement will be less than 115 MW by the end of year five.

3. Procure the remaining amount of SPVP through 225 MW of RAM, with an increase in SCE's total RAM allocation from 498.4 MW to 723.4 MW. (SCE has applied 144 MW procured via its 2010 RSC program to RAM, leaving a net initial RAM procurement of 354.4 MW, or net adjusted 579.4 MW when increased by the 225 MW transferred here.) All other RAM parameters and protocols are unchanged (e.g., projects up to 20 MW; any eligible renewable technology; commercial operation within 18 months from Commission approval of the PPA, subject to a one-time six month extension).

4. Reduce the reasonable cost estimates for 125 MW of UOG over the 2008 to 2014 program period to approximately $20.655 million (2008 dollars) in O&M expenses, and $481.25 million (2008 dollars) in direct capital expenditures ($427.5 million (2008 dollars) direct capital plus a 10% contingency). These costs are based on $3.50 per Watt ($3.85 per Watt including contingency), with costs in excess of $3.85 per Watt subject to a reasonableness review. If SCE develops less that 125 MW of UOG, the reasonable total cost estimates are based on the number of Watts times $3.50 per Watt ($3.85 per Watt including contingency), with costs in excess of $3.85 per Watt subject to a reasonableness review.

Because this decision only changes the SPVP and RAM programs going forward, we do not need to change the language in D.09-06-049 or D.10-12-048. Rather, to implement the changes adopted today, we only need to modify each program effective today. We do that by adopting appendices attached to this order that summarize each program, as modified.

Finally, we also direct SCE to file and serve a Tier 2 advice letter to specify the amount of each product it will solicit in each remaining RAM auction for the 225 MW of capacity added to RAM via today's order, along with identifying the resulting amount of each product in its new RAM total of 723.4 MW.