9. Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned ALJ for this portion of this proceeding.

1. Under the SGIP, projects up to 5 MW in size can apply for incentives, but incentives will be given only up to 1 MW.

2. The Commission has denied requests to increase the 1 MW incentive limit on the basis that this could deplete the SGIP budget.

3. There are $96 million in unspent SGIP funds from prior program years.

4. There has been low participation by fuel cells and wind projects in the SGIP.

1. Increasing the SGIP 1 MW incentive limit without restriction would decrease the number of projects funded by SGIP.

2. Raising the incentive cap to 3 MW for qualifying SGIP wind and fuel cell projects, coupled with tiered incentives over 1 MW, will allow more MW of DG to be installed for the same dollars.

3. Given the large amount of unspent SGIP funds from prior years, the Commission should raise the cap for incentives to 3 MW for qualifying wind and fuel cell projects. Projects applying for incentives up to a maximum of 1 MW will be funded from the annual SGIP budget. Projects applying for incentives greater than 1 MW, if approved, will be funded entirely from SGIP carryover funds, as available.

4. Incentives paid beyond 1 MW should be reduced according to Table 1 and available only for 2008 and 2009.

5. Production cost data and cost projections in Appendix C, Attachment 1 to FCE's filing should be granted confidentiality as trade secrets under Government Code Section 6254.7(d).

ORDER

IT IS ORDERED that:

1. The petition to modify Decision (D.) 04-12-045 filed by FuelCell Energy (FCE) on July 25, 2007, and amended on February 8, 2008 is granted in part as set forth herein.

2. D.04-12-045 is modified to allow Self-Generation Incentive Program administrators to pay qualifying distributed generation projects incentives up to 3 megawatts (MW) from prior years' carryover funds, with incentives over 1 MW reduced as set forth in Table 1, and with all prior Commission orders regarding allocation of funds to renewable and non-renewable incentive categories applying to the use of carryover funds.

3. This modification shall apply for the SGIP in 2008 and 2009 only, unless modified by further order of this Commission.

4. The motion for confidentiality filed by FCE on February 8, 2008 is granted for two years from the date of this order. During that period, the information shall not be made accessible or disclosed to anyone other than Commission staff, except upon execution of an appropriate non-disclosure agreement with FCE, or on the further order or ruling of the Commission, the assigned Commissioner, the assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge.

5. If FCE believes that further protection of the information filed under seal is needed, it may file a motion stating the justification for further withholding of the information from public inspection, or for such other relief as the Commission rules may then provide. This motion shall be filed no later than one month before the expiration date of today's order.

6. This decision shall be served on the service list for Rulemaking (R.) 04-03-017 and R.06-03-004.

7. This order is effective today.

Dated April 24, 2008, at San Francisco, California.

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