ALJ/EDF/avs Date of Issuance 6/28/2011
Decision 11-06-030 June 23, 2011
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Golden State Water Company on Behalf of its Bear Valley Electric Service Division (U913E) for Approval of RPS Contract with County Sanitation District |
Application 10-06-003 (Filed June 8, 2010) |
DECISION ON APPROVAL OF RPS CONTRACT AND FOR AUTHORITY
TO RECOVER THE COSTS OF THE CONTRACT IN RATES
1. Summary
Golden State Water Company, on behalf of its Bear Valley Electric Service Division (Bear Valley or BVES), filed for advanced approval of the terms and conditions of a proposed Power Purchase Agreement (PPA) with the Los Angeles County Sanitation District No. 2 for landfill gas-generated electricity. In addition, BVES seeks authority to establish a memorandum account to track unrealized gains and/or losses on the PPA. The application was unopposed.
This decision finds Bear Valley is still subject to the ratemaking settlement agreement adopted in Decision 02-07-041 which included a cost cap that is in effect until the earliest of either August 31, 2011 or certain other conditions are met. Therefore, subject to the ratemaking settlement, the agreement is recoverable in rates without further review through August 31, 2011. We approve the remainder of the contract cost recovery after August 31, 2011, although BVES must exercise prudent administration of the contract over its life. This decision also grants BVES's additional request to create a memorandum account to record unrealized gains and losses on the PPA. This proceeding is closed.
