Qualifying Facilities and CHP Program Settlement


Qualifying Facilities and Combined Heat and Power Program Settlement Commission Decision (D).10-12-035 adopted a comprehensive Settlement for Qualifying Facilities and Combined Heat and Power (QF/CHP Settlement).  This Settlement is the result of an 18 month-long negotiation between the investor-owned utilities (IOUs), CHP trade representatives and ratepayer advocacy groups.  The Settlement addresses numerous QF-related issues and transitions to a new QF/CHP Program focused on CHP benefits and greenhouse gas (GHG) emissions reductions.

The new CHP Program, established by the Settlement, identifies two goals:  (1) IOUs will procure a minimum of 3,000 megawatts (MW) of CHP over the program period, and (2) the IOUs will reduce GHG emissions consistent with the ARB Climate Change Scoping Plan.

Progress towards these goals is tracked via CHP Program Semi-Annual Reports that the IOUs submit to Energy Division.  The publicly available reports are posted on this site along with a summary of both the MW and GHG Emissions Reduction Targets.

Key Documents

  • D.10-12-035 Decision adopting the proposed QF/CHP Settlement
  • QF/CHP Settlement Term Sheet Document outlining settlement periods, PPA matters, CHP procurement processes, targets and accounting methodologies, Semi-Annual CHP Program Reports, SRAC pricing structure and other items.
  • D.11-03-051 Decision denying rehearing of D.10-12-035, as modified, on certain issues
  • D.11-07-010 Decision granting petition to modify D.10-12-035
  • A.08-11-001 Consolidated QF/CHP Docket Card (closed)
  • R.12-03-014 Long Term Procurement Plan Docket Card
  • R.13-12-010 Long Term Procurement Plan Docket Card

CHP Reports

  • CHP Program Semi-Annual Reports (updated 2014-07-07) - Download a zip folder containing the current and all previous Semi-Annual Reports. Each Report has aggregated information on the IOUs' CHP procurement and data on how individual projects contribute to the IOUs' MW and GHG reduction targets under the QF/CHP Settlement. Each successive report provides cumulative information on the IOUs' CHP resources.
  • CHP Reporting Template (Version 3.3.3)  Download the CHP Program Semi-Annual reporting template.  Reported facilities are fictitious and are provided for demonstrative use only.

QF Semi-Annual Reports

QF/CHP Decisions and Resolutions

The Decisions and Resolutions pursuant to the QF/CHP Settlement below are listed with the most recent ones at the bottom.

Quick Links

  • CHP Overview  Includes a description of CHP programs and projects. 
  • CHP Procurement Processes  Procurement options available under the QF/CHP Settlement and information on SRAC pricing. 
  • IOU pages on the QF/CHP Settlement including links to their CHP Request for Offers (RFOs).   

Overview of CHP Program Targets

IOUs must procure a minimum of 3,000 MW of CHP for the entire QF/CHP Program and reduce GHG emissions consistent with the ARB Scoping Plan.

Pursuant to Decision 10-12-035, the IOUs submit CHP Program Semi-Annual Reports to track their MW and GHG reduction targets outlined in the Settlement.

GHG Emissions Reduction Targets

In the Climate Change Scoping Plan, ARB has identified a CHP GHG Emissions Reduction Target of 6.7 million metric tonnes (MMT) by 2020.  The investor owned utilities (IOUs) are responsible for 4.8 MMT of the statewide target, which is allocated among the IOUs based on retail sales from bundled and unbundled customers within their service territories.

    GHG Emissions Reduction Table

    Utility

    IOU Retail Sales(%) 2012 IOU Target by 2020
    (MMT) 

    PG&E

    44.7

    2.16

    SCE

    44.9

    2.17

    SDG&E

    10.4

    0.50

    Total

    100.0

    4.8

     

Refer to the GHG ERT Calculator (updated 2015-03-27) for the assumptions used in the allocation of the Emissions Reduction Target.

Megawatt Procurement Targets

    Megawatt Procurement Targets
    Utility Target A (MW) Target B (MW) Target C (MW) Total (MW)

    SCE    

    630

    378

    394

    1,402

    PG&E

    630

    376

    381

    1,387

    SDG&E

    60

    50

    50

    160

    Total

    1320

    804

    825

    2,949*

     

*SDG&E will procure an additional 51 MW by 2018 in the Second Program Period to meet the minimum procurement Target of 3,000 MW.
Three MW target periods (A, B and C) correspond to the three CHP competitive solicitations (or Request for Offer or RFOs) and are outlined in the QF/CHP Program Settlement Term Sheet (Section 5.1.2).  The three CHP RFOs will be scheduled at regular intervals. The IOUs initiated their first RFO by the end of February 2012.
To view the term sheet and other background information, visit the QF/CHP Settlement page.