XI. The PPA Does Not Violate Any State Law

Edison contends that the PPA does not violate any state law or regulation. In particular, Edison asserts that MVL will fully comply with any non-utility laws, such as construction, taxes, business; environmental laws, since necessary environmental and CEC permits have been obtained; Pub. Util. Code provisions regarding generating assets,9 and utility affiliate transaction laws and regulations.10

As discussed earlier, EPUC, CAC, and CCC argue that the PPA is inconsistent with state and federal laws mandating the encouragement of cogeneration technologies in California. Specifically, CCC alleges that the approval of Mountainview will allow Edison to violate the Public Utility Regulatory Policies Act of 1978 (PURPA) by not purchasing all energy and capacity that is made available by QFs. Instead the other energy producers fear Edison will meet all of its power needs from Mountainview and then existing industrial sites will be faced with shutting down electric generation and replacing it with fossil-fuel fired facilities.

We find that the PPA does not violate any state law or regulation.

While we understand the QFs' concerns about Edison's continuing need to purchase QF power if Mountainview is appraised, nothing in this decision is intended to foreclose or prejudice Edison's future obligation or choice to meet its resource needs from QFs.

Furthermore, we have determined that Edison is not required to obtain a CPCN under Pub. Util. Code § 1001; no further environmental studies are necessary under CEQA; and although the ATRs and two-year affiliate transaction moratorium apply, we granted a one-time waiver.

9 Although Pub. Util. Code § 1001 usually requires a utility to obtain a CPCN, Edison claims one is not required in this case since Edison is "not beginning construction" of the facility, and the facility will not be owned by a public utility, instead it will be owned by MVL. 10 Edison contends that the affiliate transaction rules do not apply to MVL, as it will be a direct subsidiary of Edison.

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