II. Background

SCWC provides electric service to approximately 22,000 customers in and around the Big Bear Lake resort area located in the San Bernardino Mountains of San Bernardino County. In Decision (D.) 03-07-005, the Commission granted SCWC a Certificate of Public Convenience and Necessity (CPCN) to construct an 8.4 MW gas-fueled facility on property in the City of Big Bear Lake to meet peak

load demands. SCWC states that the generating facility became operational in October 2004. Prior to the operation of the generating facility, all of the energy provided to BVES customers was generated outside of the BVES service territory by third-parties and transported into the BVES system through three Southern California Edison Company transmission lines.