7. Pricing of Power as an "As Available" Resource

The Joint Utilities ask the Commission to reduce the price paid under the Form Power Purchase Agreements to reflect the fact that eligible units are "as available" resources. The Joint Utilities contend that D.09-12-042 erred in concluding that the eligible CHP systems are likely to operate as if they were a firm resource and that the factors applied to the MPR and proposed in the adopted pricing formula account for the value of different products such as baseload and as available electricity.

FCE opposes the Joint Utilities proposal to reduce the feed-in-tariff price to reflect that CHP resources are "as available" because it is nothing more than repetition of arguments considered and rejected in D.09-12-042.

CCDC objects to the Joint Utilities' proposal to reduce the AB 1613 price to reflect pricing for an as available product. CCDC contends the proposal is based upon the same arguments previously raised in the underlying proceeding that the Commission previously rejected. There the Commission explained that the time-differentiated MPR pricing mechanism specifically accounted for the value of different products, including the difference in value between baseload and
as-available electricity. CCDC contends that the Commission appropriately recognized that the MPR does differentiate between as available and firm baseload power. As a result, CCDC contends the Commission should reject the Joint Utilities' proposal to reduce the price under AB 1613 contracts to reflect an as-available product.

7.1. Discussion

The arguments raised by the Joint Utilities are similar to those raised in both the underlying proceeding and their joint rehearing application. The Commission has already considered and rejected theses arguments in
D.09-12-042 and D.10-04-055.¹¹ Furthermore, Sections 1.02 and 3.02 of the Commission approved contracts for this program require the Seller to commit to an expected amount of energy production per term year and to pledge its generating capacity to the Buyer for the Buyer to use in meeting its resource adequacy obligations. In this regard, the Buyer should have reasonable expectation about the resource that will be provided from a CHP facility participating in this program.¹² The Joint Utilities do not raise any new issues of law or fact in the Joint Petition for consideration by the Commission. Thus, we deny this request.

¹¹ See D.09-12-042 at 36.

¹² See D.09-12-042, Attachment A, Section 1.02(d) and 3.02.