Waiver of Comment Period

As noted above, this is an uncontested matter, and the draft decision of the Administrative Law Judge grants the relief requested. Accordingly, pursuant to Rule 77.7(f)(2), the usual 30-day period for public review and comment on the draft decision is being waived.

Findings of Fact

1. Notice of the filing of this application appeared in the Commission's Daily Calendar on January 17, 2002.

2. No protest has been filed to the application, and a hearing is not necessary.

3. Under the terms of the SO1 contracts entered into by Edison with the seven landfill QFs covered by this application, the contracts expire on December 31, 2001 unless extended by order of the Commission.

4. Each contract extension included in Exhibit SCE-2 to the application contains substantially identical terms.

5. There is a benefit to renewing SO1 power purchase contracts with landfill QFs on reasonable terms and conditions, because such QFs use methane gas, a renewable fuel that can be harmful to the environment if flared unnecessarily.

6. The fixed energy price that Edison has agreed to pay the seven landfill QFs covered by this application during the first part of the five-year contract extension is significantly below the 5.37 cents/kWh price that was approved as a substitute for SRAC energy payments in D.01-06-015.

7. The fixed energy price that Edison has agreed to pay the seven landfill QFs covered by this application during the first part of the five-year contract extension is less than the gas-based, forecasted prices Edison would have to pay to acquire energy on equivalent terms and conditions during the same period.

8. Edison has a right, after a certain point during the fixed-price period, to terminate without penalty the contract extensions with the seven landfill QFs at issue here.

9. The pricing terms in the contract extensions that will apply after the end of the fixed-price period are reasonable.

10. In applications concerning settlements and contract extensions negotiated with certain QFs, Edison has included provisions requiring Commission approval within an unreasonably short time frame.

Conclusions of Law

1. Edison's January 11, 2002 motion to file under seal the unredacted versions of the application and of Exhibits SCE-2 and SCE-4, and also to accept for filing a public version of the application and of Exhibit SCE-4, should be granted to the extent set forth herein.

2. The contract amendments set forth in Exhibit SCE-2, as amended on April 29, 2002, should be approved as reasonable.

3. Edison should be authorized to recover in rates (or such other cost recovery mechanism as the Commission may prescribe) all payments made pursuant to the contract amendments described in Conclusion of Law (COL) 2, subject only to Edison's prudent administration of said amendments and of the underlying contracts.

4. This order should be effective immediately.

ORDER

IT IS ORDERED that:

1. The contract amendments set forth in Exhibit SCE-2, as amended on April 29, 2002 and covering those contracts identified by Southern California Edison Company (Edison) as QFID 1103, 1104, 1105, 1106, 1107, 1110 and 1111, are hereby approved as reasonable.

2. Edison's January 11, 2002 motion to file under seal the unredacted versions of the application and of Exhibits SCE-2 and SCE-4, and also to accept for filing a public, redacted version of the application and of Exhibit SCE-4, is granted to the extent set forth in this decision. The aforesaid unredacted documents shall remain under seal for a period of two years from the mailing date of this decision, and during that period shall not be made accessible or disclosed to anyone other than Commission staff except upon the further order or ruling of the Commission, the Assigned Commissioner, the assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge. If Edison believes that further protection of these unredacted documents is needed after two years, it may file a motion stating the justification for further withholding of the material from public inspection, or for such other relief as the Commission rules may then provide. Such a motion shall be filed no later than 30 days before the second anniversary of the mailing date of this decision.

3. Edison is hereby authorized to recover in rates (or such other cost recovery mechanism as the Commission may prescribe) all payments made pursuant to the contract amendments described in Ordering Paragraph 1, subject only to Edison's prudent administration of said amendments and of the underlying contracts.

This order is effective today.

Dated June 27, 2002, at San Francisco, California.

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