VIII. Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Sarah Thomas is the assigned ALJ in this proceeding.

Findings of Fact

1. The PPAs for renewable energy (two hydroelectric and one dairy PPA) each contain the four terms required to be in RPS contracts.

2. The contract terms are reasonable for the reasons stated herein.

3. The contract terms approved here shall not serve as precedent for any future PPA without justification in the RPS proceeding.

Conclusions of Law

1. The generic biogas issues the parties raised should be handled in a generic proceeding, and not here.

2. PG&E may seek approval of whether we should approve a non-bypassable charge as a mechanism to recover stranded costs associated with these contracts in the Commission's Long Term Procurement Plan proceeding.

3. PG&E shall more fully provide pricing detail in all future applications for approval of an RPS contract, as more fully discussed herein.

4. The PPAs at issue should be approved.

ORDER

IT IS ORDERED that:

1. Pacific Gas and Electric Company's (PG&E) application for approval of the following four power purchase agreements (PPAs) is granted:

Generating Facility

Type

Term

kW

Online

Location

Tunnel Hill Hydroelectric Project

Hydroelectric

10 years

600

6/07

5605 Volcanoville Road, El Dorado County, CA

Buckeye Hydroelectric Project

Hydroelectric

10 years

400

6/07

2900 Fox Run Road, El Dorado County, CA

Cogeneration -Simplot- waste heat from sulfuric acid manufacturing

  

10 years

4,000

1/07

16777 Howland Road, Lathrop, San Joaquin County, CA

Eden Vale Dairy

Biogas

10 years

150

Already operational

6944-21-1/2 Avenue, Lemoore, Kings County, CA

2. PG&E may recover the cost of the PPAs in rates, subject to reasonable contract administration.

3. We require PG&E to work more closely with the Commission's Energy Division on future applications for Renewable Portfolio Standard (RPS) contracts. PG&E shall contact the Energy Division before filing any such application to ensure that it is 1) filing appropriate template information to enable the Commission to summarize contract terms in a standard way, 2) justifying contractual provisions adequately, and 3) using the Application or Advice Letter process appropriately. In addition, PG&E should consult with the Energy Division as to the appropriateness of filing applications for approval of different types of PPAs (e.g., cogeneration and RPS) separately.

4. Application 06-10-003 is closed.

This order is effective today.

Dated March 15, 2007, at San Francisco, California.

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