12. Assignment of Proceeding
Catherine J.K. Sandoval is the assigned Commissioner and Melissa K. Semcer is the assigned Administrative Law Judge in this proceeding.
1. Application 11-01-023 is uncontested.
2. As a result of scheduling flexibility, the three power purchase agreement amendments between PG&E and Yuba City Cogen, Greenleaf 1, and KES Kingsburg will provide approximately $14 million in greater market value than current must-take contract provisions.
3. The power purchase agreement amendments provide greater operational benefits than could be achieved under the existing contracts.
4. The power purchase agreement amendments may result in reduced greenhouse gas emissions as compared to the existing must-take contracts.
5. Procurement under the power purchase agreement amendments is consistent with the QF/CHP Settlement Agreement and qualifies to meet PG&E's GHG Emissions Reduction Targets.
6. The power purchase agreement amendments continue to meet the cost recovery eligibility requirements of Pub. Util. Code § 367(a)(2).
7. The power purchase agreement amendments are contingent upon the QF/CHP Program Settlement Agreement becoming effective.
8. PG&E's April 14, 2011 Motion for Leave to File Under Seal was unopposed and is reasonable.
1. The power purchase agreement amendments are just and reasonable and should be approved contingent upon the QF/CHP Program Settlement Agreement becoming effective.
2. Procurement under the power purchase agreement should count towards PG&E's GHG reduction targets.
3. The stranded cost recovery mechanisms described in Pub. Util. Code § 367 should apply to the Amendments and underlying qualifying facility contracts in this application.
4. PG&E should recover all costs associated with the power purchase agreement amendments in its Energy Resources Recovery Account.
5. In the event the QF/CHP Program Settlement Agreement does not become effective, PG&E should reapply for approval of the power purchase agreement amendments if it chooses to pursue them outside of the settlement.
6. PG&E's April 14, 2011 Motion for Leave to File Under Seal should be granted pursuant to D.06-06-066, Appendix 1, Item VII.B
7. Application 11-01-023 should be closed.
IT IS ORDERED that:
1. Pacific Gas and Electric Company's power purchase agreement amendments with Yuba City Cogen, Greenleaf 1, and KES Kingsburg are approved contingent upon the Qualifying Facility and Combined Heat and Power Program Settlement Agreement becoming effective.
2. Procurement under Pacific Gas and Electric Company's power purchase agreement amendments with Yuba City Cogen, Greenleaf 1, and KES Kingsburg will count towards Pacific Gas and Electric Company's Greenhouse Gas Reduction Targets pursuant to the "Qualifying Facility and Combined Heat and Power Program Settlement Agreement" approved in Decision 10-12-035.
3. Stranded cost recovery associated with the power purchase agreement amendments and underlying qualifying facility contracts between Pacific Gas and Electric Company and Yuba City Cogen, Greenleaf 1 and KES Kingsburg shall be recovered through the Competition Transition Cost pursuant to Public Utilities Code § 367.
4. Pacific Gas and Electric Company shall recover all costs associated with the power purchase agreement amendments with Yuba City Cogen, Greenleaf 1, and KES Kingsburg in its Energy Resources Recovery Account.
5. In the event the Qualifying Facility and Combined Heat and Power Program Settlement Agreement does not become effective, Pacific Gas and Electric Company must reapply for approval of the power purchase agreement amendments if it chooses to pursue them outside of the settlement.
6. Pacific Gas and Electric Company's April 14, 2011 motion for leave to file confidential information under seal is granted as set forth below:
a. The confidential information placed under seal pursuant to this ruling shall remain under seal for three years as provided in Decision 06-06-066, Appendix 1, Item VII.B. During this period, the confidential information shall not be made accessible or be disclosed to anyone except on the further order or ruling of the Commission, the assigned Commissioner, the assigned Administrative Law Judge, or the Administrative Law Judge then designated as Law and Motion Judge, which order shall be entered only after notice to Pacific Gas and Electric Company and an opportunity to be heard.
b. The confidential information is: Pacific Gas and Electric Company's responses to questions 1-6 of the April 7, 2011 ALJ ruling.
7. Application 11-01-023 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
