6. Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Victoria S. Kolakowski is the assigned ALJ in this proceeding.
Findings of Fact
1. There were no protests to this application.
2. The Tajiguas PPA is consistent with SCE's approved 2005 renewable procurement plan.
3. The Tajiguas PPA price is below the 2005 MPR released in
Resolution E-3980 and is per se reasonable as measured according to the net present value calculations explained in D.04-06-015, D.04-07-029, and
D.05-12-042.
4. On February 1, 2007, PG&E and SCE filed a petition for modification of D.04-06-014 seeking clarification and modification of the RPS contract requirements related to standard contract terms and conditions.
5. To the extent that the Tajiguas PPA is otherwise acceptable, it is important to proceed with approval expeditiously, while reserving judgment on treatment of modifications to standard terms and conditions generally to the February 1, 2007 petition for modification of D.04-06-014.
1. The Tajiguas PPA should be approved.
2. SCE should be allowed to fully recover the Tajiguas PPA payments in rates over the life of the project, subject to Commission review of SCE's administration of the PPA.
3. Procurement pursuant to the Tajiguas PPA constitutes procurement from eligible renewable energy resources for purposes of determining SCE's compliance with any obligation that it may have to procure eligible renewable energy resources pursuant to the California Renewables Portfolio Standard (§ 399.11 et seq.), D.03-06-071, or other applicable law.
4. Procurement pursuant to the Tajiguas PPA constitutes incremental procurement or procurement for baseline replenishment by SCE from eligible renewable energy resources for purposes of determining SCE's compliance with any obligation to increase its total procurement of eligible renewable energy resources that it may have pursuant to the California Renewables Portfolio Standard, D.03-06-071, or other applicable law.
5. SCE should be allowed to recover in rates any indirect costs of renewables procurement identified in § 399.15(a)(2).
6. This decision should be made effective immediately so that Tajiguas may begin providing renewable energy to SCE as soon as possible.
ORDER
IT IS ORDERED that:
1. The Southern California Edison Company (SCE) renewables portfolio standard power procurement agreement (PPA) with MM Tajiguas Energy LLC is approved.
2. SCE is authorized to recover in rates payments made pursuant to the PPA, subject to further review with respect to reasonableness of SCE's administration of the PPA.
3. Application 07-01-001 is closed.
This order is effective today.
Dated April 12, 2007, at San Francisco, California.
