ALJ/JJJ/hkr Mailed 5/25/2001

Decision 01-05-085 May 24, 2001

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation on the Commission's Own Motion to Implement the Biennial Resource Plan Update Following the California Energy Commission's Seventh Electricity Report.

Investigation 89-07-004 (Filed July 6, 1989)

OPINION ON SOUTHERN CALIFORNIA EDISON COMPANY'S PETITION FOR MODIFICATION OF DECISION (D.) 83-09-054 AND D.82-12-120

I. Summary

This decision addresses Southern California Edison Company's (Edison) July 28, 2000, petition for modification of D.83-09-054 and D.82-12-120. We grant Edison's petition to modify these decisions as more fully stated in this opinion. We find that Edison's Standard Offer 2 contract (SO2) and Interim Standard Offer 4 contract (ISO4), which Edison used as a basis for entering into agreements with qualifying facilities (QFs), do not permit a QF to engage in "simultaneous buy-sell". "Simultaneous buy-sell" is defined for purposes of this decision as a QF selling to Edison the gross output of its generating facility, including the incremental output used to serve its own auxiliary load, or station use,¹ at standard offer energy and capacity prices, while buying from Edison, or other utilities, the power required for the station use at a tariffed rate.