ALJ/CAB/jva Mailed 5/28/2004
Decision 04-05-050 May 27, 2004
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Southern California Edison Company (U 338-E) for Approval of a Power Purchase Agreement under PUHCA Section 32(k) Between the Utility and a Wholly-owned Subsidiary and for Authority to Recover the Costs of Such Power Purchase Agreement in Rates. |
Application 03-07-032 (Filed July 21, 2003) |
OPINION GRANTING INTERVENOR COMPENSATION
TO THE UTILITY REFORM NETWORK FOR SUBSTANTIAL CONTRIBUTIONS TO DECISION 03-12-059
This decision awards The Utility Reform Network (TURN) $ 84,824.72 in compensation for its contribution to Decision (D.) 03-12-059.
Background
In an expedited proceeding commencing on July 21, 2003, Southern California Edison Company (Edison) requested the Commission's permission to acquire Mountainview Power Company, LLC, (Mountainview) as a wholly -owned subsidiary of Edison. At the time, this company was a subsidiary of Sequoia Generating Company, LLC. Mountainview had rights to build a combined-cycle gas turbine generating station in Redlands, California. Under an option agreement expiring on February 29, 2004, Edison sought to acquire Mountainview as a wholly owned utility subsidiary and to enter into a power purchase agreement (PPA) for the electricity from the new power plant. The PPA was proposed as a cost-based contract providing for recovery of investment, fixed and variable costs, and a regulated rate of return over the 30-year term of the contract to be reviewed and approved by the Federal Energy Regulatory Commission (FERC), rather than this Commission.
Because of the short period to acquire Mountainview, Edison did not seek a certificate of public convenience and necessity (CPCN) from the Commission and did not issue a request for proposal seeking alternative bids for electricity anticipated from the new plant.
Eight entities protested Edison's application. The assigned Commissioner issued a Scoping Memo on September 16, 2003; evidentiary hearings were held October 14-24, 2003. On December 18, 2003, in D.03-12-059, the Commission authorized Edison to execute the PPA for the electricity output of the Mountainview Power Plant so long as the agreement was also approved by FERC without rate-changing modifications. The Commission also authorized Edison to acquire Mountainview Power Company as a wholly-owned subsidiary and to acquire the Mountainview Power Plant as a utility-owned generation facility. With the issuance of this decision, the Commission closed the proceeding.
TURN participated in prehearing proceedings and the briefing of selected issues, in the evidentiary hearing, and in post-hearing briefing. TURN's primary role in the proceeding was to propose limitations and modifications of the PPA. In D.03-12-059, the Commission adopted almost all of TURN's recommendations.
