VII. Comments on Draft Decision
The draft decision of Administrative Law Judge Econome in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(g)(1) and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed on ________________, and reply comments were filed on ___________________.
1. "Simultaneous buy-sell" is defined for purposes of this decision as a QF selling to Edison the gross output of its generating facility, including the incremental output used to serve its own auxiliary load, or station use.
2. The internal electrical needs of a generating facility are referred to as "auxiliary load" or "station use."
3. Edison seeks to modify D.82-12-120 and D.83-09-054. In D.82-12-120, the Commission approved the utilities' SO2 contracts for compliance with, among other things, D.82-01-103, subject to the utilities incorporating the principles and provisions reflected in the decision. In D.83-09-054, the Commission approved Edison's (as well as PG&E's and SDG&E's) ISO4 contract.
4. Operating Options I and II in Edison's SO2 and ISO4 contract state that the QF dedicates its entire generator output to Edison.
5. No disputes regarding the "simultaneous buy-sell" issue arose between Edison and QFs within one year of the issuance of D.82-12-120 and D.83-09-054.
6. Until April 2000, when the D.C. Circuit Court of Appeals affirmed FERC's holding in Connecticut Valley grandfathering certain pre-Turners Falls contracts, it appeared possible that the issues raised in this petition would be resolved as a matter of federal law.
7. In D.82-12-120, the Commission discussed the Operating Options in PG&E's SO2 contract, neither of which permit "simultaneous buy-sell." When the Commission referred to "simultaneous purchase and sale" in D.82-12-120 and D.82-01-103, it was referring to sales net of auxiliary load, and the Commission did not authorize the "simultaneous buy-sell" arrangement at issue in this petition.
8. Consistent with our basic policy of uniformity governing standard offer contracts, Operating Options I and II in Edison's SO2 should correlate with the analogous Operating Options in PG&E's SO2 contract, and permit a QF to sell its output, less station use, to the utility at avoided cost prices.
9. Edison's ISO4 adopted the language of the Operating Options in Edison's SO2 almost verbatim. The Commission did not separately discuss or analyze the Operating Options in D.83-09-054.
10. In issuing D.83-09-054, we intended that Edison's ISO4 Operating Options to have the same meaning as those in Edison's SO2 contract, and did not intend to approve a significant change that would permit a QF to engage in "simultaneous buy-sell."
1. Edison has justified its submission of this petition to the Commission more than one year after the effective date of the decisions proposed to be modified.
2. The Commission and the courts have concurrent jurisdiction to resolve contract disputes between utilities and QFs.
3. This petition presents overriding policy issues regarding the Commission's implementation of PURPA. Moreover, there is a need for a uniform and consistent manner of resolving the issues presented, which resolution could impact generic terms and clauses embedded in numerous standard offer contracts. Therefore, the Commission should address the merits of Edison's petition for modification.
4. The Commission's basic policy governing these standard offer contracts is uniformity, with very few exceptions due to different operating characteristics among utilities.
5. Operating Options I and II of Edison's SO2 and ISO4 contracts permit a QF to sell its output, less station use, to Edison at avoided cost prices, and do not permit "simultaneous buy-sell."
6. The following finding of fact should be added to D.82-12-120: "Operating Options I and II of Edison's SO2 contract state that the QF dedicates to Edison the QF's entire generator output."
7. The following conclusion of law should be added to D.82-12-120: "Edison's SO2 does not permit a QF to sell to Edison the gross output of its generating facility, including the incremental output used to serve its own auxiliary load, or station use, at standard offer energy and capacity prices, while buying from Edison or other utilities the power required for the station use at a tariffed rate."
8. The following finding of fact should be added to D.83-09-054: "Operating Options I and II of Edison's ISO4 contract state that the QF dedicates to Edison the QF's entire generator output."
9. The following conclusion of law should be added to D.83-09-054: "Edison's ISO4 does not permit a QF to sell to Edison the gross output of its generating facility, including the incremental output used to serve its own auxiliary load, or station use, at standard offer energy and capacity prices, while buying from Edison or other utilities the power required for the station use at a tariffed rate."
10. Because of the ongoing dispute between Edison and Commerce, this decision should be effective immediately.
IT IS ORDERED that:
1. Southern California Edison Company's Petition for Modification of Decision (D.) 82-12-120 and D.83-09-054 is granted as stated in this decision and Ordering Paragraphs set forth below.
2. The following finding of fact shall be added to D.82-12-120: "Operating Options I and II of Edison's Standard Offer 2 (SO2) contract state that the qualifying facility (QF) dedicates to Edison the QF's entire generator output."
3. The following conclusion of law shall be added to D.82-12-120: "Edison's SO2 does not permit a QF to sell to Edison the gross output of its generating facility, including the incremental output used to serve its own auxiliary load, or station use, at standard offer energy and capacity prices, while buying from Edison or other utilities the power required for the station use at a tariffed rate."
4. The following finding of fact should be added to D.83-09-054: "Operating Options I and II of Edison's ISO4 contract state that the QF dedicates to Edison the QF's entire generator output."
5. The following conclusion of law shall be added to D.83-09-054: "Edison's ISO4 does not permit a QF to sell to Edison the gross output of its generating facility, including the incremental output used to serve its own auxiliary load, or station use, at standard offer energy and capacity prices, while buying from Edison or other utilities the power required for the station use at a tariffed rate."
This order is effective today.
Dated , at San Francisco, California.
