ALJ/DKF/rbg Date of Issuance 11/20/2007

Decision 07-11-047 November 16, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U338E) for Approval of a Contingent Settlement Agreement and an Associated Power Purchase and Sale Agreement and Resource Adequacy Confirmation Between SCE, and Calpine Energy Services and Geysers Power Company.

Application 07-06-007 (Filed June 4, 2007)

OPINION APPROVING SETTLEMENT AGREEMENT AND

ASSOCIATED POWER PURCHASE AGREEMENT AND

RESOURCE ADEQUACY CONFIRMATION

1. Summary

This decision grants the request of Southern California Edison Company (SCE) as follows:

1. A contingent settlement agreement between SCE, Calpine Energy Services, LP (CES) and Geysers Power Company, LLC (Geysers) is approved.

2. An associated renewables portfolio standard (RPS) power purchase agreement (PPA) is approved. The contract will provide SCE with eligible renewable energy from the existing Geysers northern California geothermal facility for a term of 10 years.

3. An associated resource adequacy (RA) confirmation for 2009 through 2011 is approved. RA benefits are provided from Calpine's Pastoria Energy Facility as opposed to the Geysers facility. In addition to satisfying system RA needs during this period, this transaction may also count toward meeting any contemplated Big Creek/Ventura local RA requirement, all at a competitive price and terms.