9. Assignment of Proceeding
Michael R. Peevey is the Assigned Commissioner and Seaneen M. Wilson is the assigned ALJ in this proceeding.
1. During 2006, 2007, and 2008, GSWC issued RFP's for contracts for the procurement of renewable resources, none of which resulted in viable bids. GSWC also unsuccessfully proposed partnerships for the development of a renewable energy facility with another investor-owned utility that is a major developer of renewable energy projects, and a wastewater agency.
2. In 2008, GSWC tried using bilateral negotiations to obtain a contract for renewable energy, which resulted in the contract for which it requests approval in the current application.
3. In late 2010, after this application was filed, GSWC learned that BioEnergy had suspended its biogas operations at the location which was going to provide the product to GSWC, and would not be able to fulfill its obligations to provide biogas to GSWC pursuant to the GPA.
4. As a result of the suspension of biogas production, GSWC negotiated an Option with BioEnergy, primarily in order to provide GSWC with the option to acquire biogas from BioEnergy in the future, once biogas production is resumed, and to avoid costly and time-consuming litigation regarding BioEnergy's inability to fulfill its contract to provide biogas to GSWC.
5. On March 9, 2011, Joint Parties filed a Joint Motion requesting approval of the Settlement Agreement.
6. All issues in this proceeding are encompassed by, and resolved in the Settlement Agreement.
7. The parties to the Settlement Agreement are all of the active parties in this proceeding.
8. The parties are fairly reflective of the affected interests.
9. No term of the Settlement Agreement contravenes statutory provisions or prior Commission decisions.
10. The Settlement Agreement, as clarified, is reasonable in light of the record, is consistent with law, and is in the public interest.
11. The designation of the need for hearings pursuant to the Scoping Memo should be changed to no hearings are necessary.
12. Section III of the Settlement Agreement which requests withdrawal of A.10-07-002 is clarified to request withdrawal of the relief (approval of the GPA and memorandum account) initially requested in the application. The Settlement Agreement, as clarified, is reasonable in light of the whole record, consistent with law, in the public interest, and should be approved.
13. GSWC should be granted authority to enter into the Option.
14. Any GPA resulting from the Option that is entered into at a later date should be subject to Commission approval.
15. We should not adopt GSWC's original request in A.10-07-012 for approval of the GPA and the establishment of a GPA memorandum account.
16. This decision should be effective today so that the Settlement Agreement, as clarified, may be implemented expeditiously.
17. The testimony and exhibits served by the Joint Parties in A.10-07-012 should be admitted into the record (see Attachment A for list of documents entered into the record).
18. A. 10-07-012 should be closed.
IT IS ORDERED that:
1. The Settlement Agreement Between the Division of Ratepayer Advocates and Golden State Water Company, On Behalf of it's Bear Valley Electric Service Division, as set forth in the Attachment to the Joint Motion of the Division of Ratepayer Advocates and Golden State Water Company (Bear Valley Electric Service Division) to Approve Settlement (Settlement Agreement Attached), dated March 9, 2011, is approved as clarified. The clarification is that, through the adoption of the Settlement Agreement, we do not adopt Golden State Water Company's original request in Application 10-07-012 for approval of the gas purchase contract and the establishment of a gas purchase contract memorandum account.
2. The testimony and exhibits served by Golden State Water Company and the Division of Ratepayer Advocates in Application 10-07-012 are admitted into the record (see Attachment A of this decision).
3. Golden State Water Company is granted authority to enter into the Biogas Option Agreement with BioEnergy Solutions, LLC, which is Attachment 1 to the Settlement Agreement Between the Division of Ratepayer Advocates and Golden State Water Company, On Behalf of it's Bear Valley Electric Service Division, which is set forth in the Attachment to the Joint Motion of the Division of Ratepayer Advocates and Golden State Water Company (Bear Valley Electric Service Division) to Approve Settlement (Settlement Agreement Attached), dated March 9, 2011.
4. Any gas purchase contract resulting from the Biogas Option Agreement between Golden State Water Company and BioEnergy Solutions, LLC that is entered into at a later date is subject to California Public Utilities Commission approval.
5. The designation of the need for hearings pursuant to the Scoping Memo and Ruling of Assigned Commissioner is changed to no hearings are necessary.
6. Application 10-07-012 is closed.
This order is effective today.
Dated June 23, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
ATTACHMENT A
List of Testimony and Exhibits
Entered into Record in A.10-07-012
Exhibit Number |
Sponsor |
Description |
PARTY |
GSWC-BVEC | |
GSWC/BVEC-1 |
David X. Kolk |
Testimony of David X. Kolk in Support of Bear Valley Electric Service Request for Commission Approval of BioEnergy GPA for Biogas |
GSWC/BVEC-2 |
Gladys Farrow |
Gladys Farrow Testimony Request for GPA Memorandum Account |
PARTY |
DRA | |
DRA-1 |
Rahmon Momoh |
Report on In the Matter of the Application of Golden State Water Company on Behalf of its Bear Valley Electric Service Division (U319E), for Approval of RPS Contract with BioEnergy Solutions, LLC, and for Authority to Recovery the Costs of the Contract in Rates A.10-07-012 |
(END OF ATTACHMENT A)
