COM/MP1/sid Date of Issuance 4/25/2008

Decision 08-04-049 April 24, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Rulemaking 08-03-008 (Filed March 13, 2008)

OPINION GRANTING IN PART PETITION BY FUELCELL ENERGY

TO MODIFY DECISION 04-12-045

1. Summary

In Rulemaking (R.) 08-03-008, the Commission transferred the petition of FuelCell Energy (FCE) to modify Decision (D.) 04-12-045 to the Commission's new distributed generation rulemaking to be handled in the above-captioned proceeding.

This decision grants in part the petition by FCE to raise the cap on incentives to individual projects that apply for incentives through the Commission Self-Generation Incentive Program (SGIP). During 2008 and 2009 only, this decision allows program administrators of SGIP to use any carryover funds from prior budget years to pay incentives up to 3 megawatts (MW) for qualifying fuel cell or wind distributed generation (DG) projects. Incentives over 1 MW will be paid at a lower rate.