6. Conclusion

After reviewing all the documents submitted by SCE in support of its application we find that the New Gen RFO was an open and competitive solicitation and was conducted in a fair and reasonable manner. In addition, we find that the choice of CPV, El Segundo, Walnut Creek and Wellhead as the selected resources from the RFO was also reasonable. SCE was authorized by the Commission in D.07-12-052 to procure up to 1,700 MW of new generation resources for delivery by 2013. SCE also still had 295 MW to fill from the authorization given in D.06-07-029. SCE's selection of these four resources, for a total of 1350.30 MW is within its established need range and the resources are needed for system reliability. The projected on-line delivery dates for all the contracts are all between 2011 and 2013. In addition, SCE is concerned about potential future retirements of aging plants in the Los Angeles basin, and these chosen resources will help meet SCE's Local Area Requirements in the Los Angeles basin.

All four resources will be new, state-of-the-art facilities and will produce electricity more efficiently and with fewer pollutants than older power plants.

It appears from the information provided that SCE only chose these fossil-fueled resources after all the preferred resources had been exhausted in a cost-effective manner. In addition, by all indicators, these contracts are cost-effective and will not result in large surpluses of resources that will unnecessarily cost ratepayers.