3. The Geysers PPSA

Facility	Type	Term Years	MW Capacity	GWh Energy	Expected Online Date	Location
Geysers Project	Geothermal	10	225 MW	1,971	June 1, 2007	Middletown, CA

SCE seeks approval of the Geysers PPSA, awarded in part through SCE's 2005 RPS solicitation and in part as a settlement of CES' attempted rejection of the Existing PPA in its bankruptcy proceeding. The existing PPA is for 200 MW and is set to expire on April 30, 2008. The new PPSA's term commences on June 1, 2007 and replaces the final year of the existing agreement. The base load capacity in the new PPSA will increase to 225 MW after CPUC approval of the agreement, thus adding an incremental 25 MW of RPS-eligible power towards SCE's RPS requirements. The PPSA also includes an option for SCE to purchase additional renewable power above the baseload amounts. In summary, deliveries from the Geysers PPSA are reasonably priced and the contract price should be fully recoverable in rates over the life of the contract, subject to Commission review of SCE's administration of the contract. This PPA is not eligible for supplemental energy payments from the California Energy Commission.⁷

⁷ Pursuant to the CEC RPS Eligibility Guidebook, an RPS-eligible facility must either be "new," meaning the facility first commences commercial operations on or after January 1, 2002, or "repowered" to qualify as eligible for SEPs. Additionally, on October 14, 2007, the Governor signed SB 1036 which transfers the SEP award authority from the California Energy Commission to California Public Utilities Commission.