7. Assignment of Proceeding

Mark J. Ferron is the assigned Commissioner and Anne E. Simon and Thomas R. Pulsifer are the assigned ALJs in this proceeding.

1. No hearing was needed or held.

2. SCE no longer requests approval of either the Novation Agreement or the Replacement Agreement.

3. The Buy-Out Agreements and the Letter Agreement rebundle RECs from the MVPP facility with the output from the MVPP facility.

4. The prices in the Buy-Out Agreements and the Letter Agreement compare favorably to reasonable benchmarks or alternatives; and the agreements involve output from a viable facility, are reasonable in light of market conditions at the time and the unique circumstances of these agreements, and are consistent with SCE's RPS procurement plan.

5. Procurement of electricity by SCE pursuant to the Buy-Out Agreements and the Letter Agreement:

a. constitutes procurement by SCE from an ERR, subject to CEC certification of the facility as an ERR; and

b. meets all Commission requirements to count this electricity towards RPS targets, subject to verification by the CEC that the electricity is RPS-eligible.

6. Payments made by SCE for electricity procurement pursuant to the
Buy-Out Agreements and the Letter Agreement (including broker fees) are fully recoverable in rates, subject to Commission review of SCE's administration of the agreements.

1. No hearing is needed, and the determination of the need for a hearing should be changed.

2. The five Buy-Out Agreements and the Letter Agreement should be approved, in accordance with D.11-12-052, OP 15.

3. The CEC certifies ERRs, and verifies that energy from ERRs is RPS-eligible.

4. The findings requested by SCE should be made, subject to specific qualifications.

5. This order should be effective today so that any uncertainty regarding these transactions, and their application to SCE's RPS procurement quantity requirements, is removed.

ORDER

IT IS ORDERED that:

1. The request by Southern California Edison Company for Commission approval of the following agreements is granted: (a) 3Degrees Buy-Out Agreement, (b) Grey K Buy-Out Agreement, (c) Grey K II Buy-Out Agreement, (d) CE2 CC Buy-Out Agreement, (e) CE2 EO Buy-Out Agreement, and (f) Letter Agreement.

2. All electricity procured by Southern California Edison Company (SCE) pursuant to the five Buy-Out Agreements and the Letter Agreement:

a. constitutes procurement by SCE from an eligible renewable energy resource (ERR) for the purpose of determining SCE's compliance with its obligations under applicable law to procure from ERRs, subject to verification by the California Energy Commission (CEC) that the facility is an ERR; and

b. meets all Commission requirements to count towards SCE's Renewable Portfolio Standard (RPS) obligations, subject to CEC verification that the electricity is
RPS-eligible.

3. Southern California Edison Company may acquire the unbundled renewable energy credits pursuant to the five Buy-Out Agreements and the Letter Agreement separately from the energy conveyed under the contracts, but receive credit for compliance with the California renewables portfolio standard as though the energy and the renewable energy credits had been purchased together.

4. All payments made by Southern California Edison Company (SCE) for electricity and renewable energy credits procured pursuant to the five Buy-Out Agreements and the Letter Agreement (including broker fees with respect to such transactions) are fully recoverable in rates over the life of these agreements, subject to Commission review of SCE's administration of these agreements.

5. No hearing is needed.

6. Application 09-09-015 is closed.

This order is effective today.

Dated June 21, 2012, at San Francisco, California.

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