3. SCE's Request

SCE requests approval of the Alta Contract, which consists of the Master Agreement and the PPA, and two amendments. The Master Agreement provides for the development of a minimum of 1,500 MW and a maximum of 1,550 MW from multiple wind generating facilities to be built in the Tehachapi Wind Resource Area. Under the terms of the Master Agreement, for each wind generating facility proposed by Alta and accepted by SCE under the contract procedure, a separate power purchase agreement will be created in the form of the PPA. Alta will form a separate special purpose entity that will finance, construct, own, and operate each facility. SCE asserts that this two-piece Master Agreement-individual project PPA structure provides Alta development flexibility and contract certainty for financing, while providing a substantial amount of RPS-eligible energy, fair prices and reasonable contract terms and conditions to SCE.

SCE also seeks approval of Amendment No. 1 and Amendment No. 2 to the Master Agreement. Amendment No. 1, which is reflected in SCE's July 6, 2007 application, includes additional detail regarding the real property supporting Alta's Development Obligation, clarifies Alta's obligations regarding its land rights to such real property, specifically identifies Alta's interconnection applications associated with the Alta Contract, imposes certain obligations on Alta with respect to interconnection obligations, and clarifies the energy pricing in the PPA in the event a generating facility comes online in a different year than was expected.

Amendment No. 2, which is reflected in SCE's January 31, 2008 amendment to the application, makes two changes to the Alta Contract. First, it amends the Alta Contract to include the four standard "non-modifiable" contract terms that are to be included in all RPS contracts pursuant to Decision (D.) 07-11-025. Second, it amends pricing terms in the Alta Contract, as a result of a renegotiation of such terms.