6. Other Conventions

Allocation of DWR Contracts. The utilities should assume that the new DWR contracts, Kings River and CCSF, will be allocated to PG&E as proposed by DWR, whereas the allocation of the Sunrise contract remains as is.

Interim Treatment of Qualifying Facilities and SRAC. The Commission has already committed to considering a modification of current QF pricing methodologies and instituted R.04-04-002. This rulemaking will not produce a modified SRAC methodology in time to be incorporated into the utilities' Long-Term Plans. Therefore, the utilities should assume that current SRAC prices stay in effect pending further PUC order. D.04-01-050 has provided interim relief for the expiring QF contracts. In their Long-Term Plans, the utilities should show the amount of baseload power needs that are currently being met by QFs, and their plans to continue meeting those needs with existing or new QF resources. Utilities should also describe how they plan to continue to meet their PURPA obligations and allow for long-term QF contracts to facilitate upgrades, replacements, and additional power output from upgraded facilities. Utilities should also assess the amount of QF capacity that might leave the system due to the expiring or not renewed contracts, given the existing SRAC and forecast market prices, and assuming that those QFs may receive reduced or no capacity payments.