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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

ENERGY DIVISION RESOLUTION E-4051

RESOLUTION

Resolution E-4051. Southern California Edison requests approval of the amended and restated Dillon Wind LLC renewable resource procurement contract. SCE's Advice Letter (AL) 2035-E is approved contingent upon Dillon securing the necessary environmental clearances required pursuant to the California Environmental Quality Act (CEQA) and Commission approval under Section 851 of California Public Utilities Code.

By Advice Letter 2035-E filed on August 31, 2006.

__________________________________________________________

SUMMARY

SCE's renewable contract complies with the Renewable Portfolio Standard (RPS) procurement guidelines and is conditionally approved

Southern California Edison (SCE) filed Advice Letter (AL) 2035-E on August 31, 2006, requesting Commission review and approval of a power purchase

agreement (PPA) executed with Dillon Wind, LLC ("Dillon"). The Agreement between Dillon and SCE amends and restates a power purchase agreement between SCE and PPM Energy, Inc3 (the "Original PPA"), which was negotiated as part of SCE's 2003 interim RPS solicitation and approved by the Commission on December 1, 20054. The amended and restated PPA contains renegotiated pricing terms, a newly established special purpose entity as the counterparty to the PPA and modified terms and conditions. The expected online date for the Dillon project is December 31, 2007, and no transmission upgrades are necessary.

AL 2035-E is conditionally approved contingent upon Dillon securing the necessary environmental clearances required pursuant to the California Environmental Quality Act (CEQA) and receiving Commission approval under Section 851 of California Public Utilities Code.

The price for the current contract is deemed reasonable5 by the Commission and fully recoverable in rates over the life of the contracts, subject to Commission review of SCE's administration of the contracts. Deliveries from this power purchase agreement (PPA) are not eligible for supplemental energy payments (SEPs) from the California Energy Commission (CEC).6

Confidential information about the contract should remain confidential

This resolution finds that certain material filed under seal pursuant to Public Utilities (Pub. Util.) Code Section 583, General Order (G.O.) 66-C, and D.06-06-066 should be kept confidential to ensure that market sensitive data does not influence the behavior of bidders in future RPS solicitations.

BACKGROUND

Commission issued guidelines and procedures for implementation of the Renewable Portfolio Standard (RPS) program.

Senate Bill (SB) 1078, chaptered on September 12, 20027, established the California Renewable Portfolio Standard Program, which required an electrical corporation to increase its use of eligible renewable energy resources8 to 20 percent of total retail sales no later than December 31, 2017.9

The State's Energy Action Plan (EAP) called for acceleration of the RPS goal to reach 20 percent by 2010. The Commission adopted this accelerated goal in the Order Instituting Rulemaking (R.04-04-026) issued on April 28, 2004.10 On September 26, 2006, Governor Schwarzenegger signed Senate Bill 10711, which officially accelerates the State's RPS targets to 20 percent by 2010. The bill takes effect on January 1, 2007.

In response to SB 1078, the Commission has issued a series of decisions that established the regulatory and transactional parameters of the utility renewables procurement program. On June 19, 2003, the Commission issued its "Order Initiating Implementation of the Senate Bill 1078 Renewable Portfolio Standard Program," D.03-06-071.

On June 9, 2004, the Commission adopted its Market Price Referent methodology12 for determining the Utility's share of the RPS seller's bid price, as defined in Public Utilities Code Sections 399.14(a)(2)(A) and 399.15(c). On the same day, the Commission adopted Standard Terms and Conditions for RPS power purchase agreements in D.04-06-014 as required by Public Utilities Code Section 399.14(a)(2)(D). Instructions for evaluating the value of each offer to sell products that are requested in a RPS solicitation were provided in D.04-07-029.

In addition, the Commission has established an annual procurement target (APT) for each utility, which consists of two separate components: the baseline, representing the amount of renewable generation a utility must retain in its portfolio to continue to satisfy its obligations under the RPS targets of previous years, and the incremental procurement target13 (IPT), defined as at least one percent of the previous year's total retail electrical sales, including power sold to a utility's customers from its DWR contracts.

CPUC developed interim renewable procurement guidelines

Prior to the approval of D.03-06-071, which established the processes for implementing the RPS program, the Commission authorized 2002 and 2003 interim RPS solicitations. In D.02-08-07114, the Commission adopted an interim reasonableness benchmark. Conclusion of Law 7 of this decision found that,

"Renewables contracts that meet or exceed the provisional benchmark price of 5.37 cents per kWh should be deemed per se reasonable. Other renewables contracts may also be approved by the Commission through the advice letter process outlined in this decision."

On August 13, 2003, the Assigned Commissioner issued a ruling, "Assigned Commissioner's Ruling Specifying Criteria for Interim Renewable Energy Solicitations" ("ACR")15, which established interim procurement requirements for both competitive solicitations and bilateral agreements for renewable energy products.

The ACR set forth general process requirements:

1. A utility must abide by the terms of the Commission's first RPS implementation decision (D.03-06-071).

2. Utilities may engage in bilateral negotiations or may issue a competitive solicitation (request for offer [RFO]) to receive bids.

3. Issuance of an interim RFO by a utility does not constitute filing of an RPS procurement plan under the terms of D.03-06-071.

4. The utilities are allowed to "roll over" any under-procurement in 2003 into the Annual Procurement Target (APT)16 for 2004 without penalty. A decision not to issue an RFO prior to full RPS implementation will not waive this immunity. Conversely, any contract signed as a result of a bilateral negotiation or an RFO, and approved by the Commission, should count toward the APT.

5. Following PRG review of any proposed contracts, the utility may submit those contracts for Commission approval via Advice Letter.

The ACR also set forth criteria for interim procurement:

1. Any renewable procurement in the interim period must not anticipate the use of any Supplemental Energy Payments (SEPs) to be awarded by the California Energy Commission (CEC) pursuant to Public Utilities Code Sec. 383.5(d).

2. A solicitation must not anticipate the creation of the Market Price Referent (MPR) under development in the RPS process. Internal market benchmarks developed by the utility for bid evaluation are appropriate for preliminary evaluation, but should not be made public in the RFO or at any point in the solicitation process, and should not be referred to as the MPR.

3. Any internal benchmarks and details of their development should be provided to the Procurement Review Group (PRG) when the Preliminary Evaluation of submitted bids is performed, and to the Commission when any proposed contracts are ultimately submitted for approval.

4. Any RFO must clearly stipulate up front precisely how the utility will calculate adders for transmission upgrades and integration costs, and how the utility will assign capacity values and payments to as-available resources.

PPA procured under interim authority

SCE procured seven contracts pursuant to an interim renewable energy procurement solicitation in accordance with R. 01-10-024. These contracts were filed with AL 1876-E and Al 1909-E and were approved in Resolutions E-3934 and E-3957 respectively. In these Resolutions, the Commission found that the 2003 interim solicitation was reasonable in all respects.

The Original PPM project was negotiated pursuant to the authority granted by the August 2003 ACR. In Ordering Paragraph 21 of D.04-12-048, the Commission adopted February 8, 2005 as the deadline after which the interim authority would expire. SCE requested two extensions to file advice letters for contracts from the 2003 interim RFO. The Commission's Executive Director granted both requests. The Original PPM PPA was filed with the Commission on August 31, 2005.

SCE requests approval of an amended renewable energy contract

On August 31, 2005, SCE filed AL-1914-E seeking approval of a power purchase agreement (Original PPA) between SCE and PPM Energy, Inc. The Original PPA was approved by the Commission on December 1, 2005 in Resolution E-3963. On the same day, PPM notified SCE that, pursuant to PPM's rights under the Original PPA to terminate the Original PPA and re-bid the project into SCE's 2005 RPS solicitation under different terms, it was necessary to update certain terms of the Original PPA. As a result, SCE and PPM entered into negotiations to restructure certain terms, including pricing terms, of the Original PPA, and SCE required PPM to establish a special purpose entity ("SPE") as the counterparty to the PPA. PPM established Dillon Wind LLC as the SPE. The amended PPA was filed on August 31, 2006.

The PPA for which SCE is currently requesting approval will contribute energy deliveries towards SCE's 20 percent renewable procurement goal required by California's RPS statute.17 With the approval of this PPA18, SCE will have contracted for deliveries of up to 132 GWh towards that target.

SCE requests CPUC Approval of PPA

SCE requests that the Commission issue a resolution finding that:

1. Any electric energy sold or dedicated to SCE pursuant to the amended and restated PPA ("Procurement") constitutes procurement by SCE from an eligible renewable resource ("ERR") for the purpose of determining SCE's compliance with any obligation that it may have to procure from ERRs pursuant to the RPS Legislation or other applicable law concerning the procurement of electric energy from renewable energy resources;

2. All Procurement counts, in full and without condition towards any annual procurement target established by the RPS Legislation or the CPUC which is applicable to SCE;

3. All Procurement counts, in full and without condition towards any incremental procurement target established by the RPS Legislation or the CPUC which is applicable to SCE;

4. All Procurement counts, in full and without condition towards the requirement in the RPS Legislation that SCE procure 20% (or such other percentage as may be established by law) of its retail sales from ERRs by 2020 (or such other date as may be established by law); and

5. The amended and restated PPA, and SCE's entry into the amended and restated PPA, is reasonable and prudent for all purposes, including, but not limited to, recovery in rates of payments made pursuant to the PPA, subject only to further review with respect to the reasonableness of SCE's administration of the amended and restated PPA.

SCE's Procurement Review Group participated in review of the contracts

In D. 02-08-071, the Commission required each utility to establish a "Procurement Review Group" (PRG) whose members, subject to an appropriate non-disclosure agreement, would have the right to consult with the utilities and review the details of:

SCE communicated with its PRG prior to and during the 2003 interim request for proposals (RFP), under which the Original PPA was procured, and then briefed the PRG concerning the amended and restated PPA with Dillon Wind LLC. SCE's discussions with the PRG prior to March 8, 2005 regarding the RFP were described in AL-1876-E. Subsequently, on August 30, 2005, SCE briefed the PRG on the conclusion of negotiations with PPM and the basic terms and conditions of the Original PPA. Members of the PRG did not oppose going forward with the Original PPA and the PPM project. On August 9, 2006, SCE briefed the PRG concerning the conclusion of negotiations with Dillon and the basic terms and conditions of the amended and restated PPA. Members of the PRG supported or did not oppose going forward with the Dillon project.

Although Energy Division is a member of the PRG, it reserved its judgment on the contracts until the resolution process. Energy Division reviewed the transactions independent of the PRG, and allowed for a full protest period before concluding its analysis.

NOTICE

Notice of AL 2035-E was made by publication in the Commission's Daily Calendar. SCE states that a copy of the Advice Letter was mailed and distributed in accordance with Section III-G of General Order 96-A.

PROTESTS

Advice Letter 2035-E was not protested.

DISCUSSION

Description of the projects

The following table summarizes the substantive features of the Dillon PPA. See confidential Appendix A for a detailed discussion of contract terms and conditions and confidential Appendix B for a price analysis:

Energy Division has reviewed the proposed PPA based upon multiple grounds:

PPA is consistent with the requirements outlined in the 2003 interim procurement ACR

The Original PPA arose from the interim renewable solicitation SCE initiated in August 2003. CPUC Resolution E-3934 approved the least-cost best-fit evaluation criteria used for the interim solicitation, and Resolution E-3963 found that SCE had complied with the directives detailed in the 2003 Assigned Commissioner's Ruling concerning renewable energy procurement prior to full RPS implementation.

Because the Original PPA was negotiated as part of the 2003 interim solicitation, it does not contain the non-modifiable Standard Terms and Conditions (STCs) set forth in D.04-06-014. Neither the 2003 ACR, nor any subsequent Commission decision, requires the utilities to include the STCs adopted in D.04-06-014 in the PPAs that were submitted under the 2003 interim solicitation guidelines. The 2003 ACR did, however, direct the utilities to abide by D.03-06-071, which did not adopt STCs, but rather allowed the utilities to further negotiate standard terms and conditions.

Thus, in approving the IOU's 2003 interim procurement plans, the CPUC did not require the inclusion of the non-modifiable STCs subsequently adopted in D.04-06-014. We have reviewed the terms and conditions in the amended and restated PPA, and observe that the comparable terms and conditions identified as "May not be Modified" in D.04-06-014 are generally equivalent to those in the Original PPA which the CPUC approved. Having found the originally negotiated terms of the PPA reasonable, and finding no substantial change in these same terms in the amended PPA, we conclude that the amended PPA is likewise reasonable. We wish to make clear, however, that while we do not require the parties to the Dillon PPA to comply with D.04-06-014, based on the facts of this case, we do not hereby set a precedent on the issue of including non-modifiable STCs in amended renewable procurement PPAs.

PPA price is reasonable

D.02-08-07121 adopted a reasonableness benchmark of 5.37 cents per kilowatt-hour for RPS procurement contracts submitted in the 2003 interim solicitation. In Conclusion of Law 7, the decision found that contracts whose price is more than this benchmark may also be approved by the Commission through the advice letter process. D.02-08-071 takes the position that a benchmark is not strictly required, but will be chosen to provide guidance to bidders and utilities.22 Additionally in this decision, the Commission found that all costs associated with a renewable contract approved through the transitional procurement process would be fully recoverable by the utilities.

The contract price in the Original PPA was less than the benchmark price. Although the new contract price exceeds the benchmark amount, the Commission finds the price reasonable. The Commission deems the price for the Dillon PPA reasonable based on the following considerations:

Confidential Appendix B provides further analysis on the reasonableness of the contract payments.

The PPA is not eligible for supplemental energy payments.

The PPA is a viable project

SCE believes that the project is viable because:

Site Control

The Dillon project is to be primarily developed on surplus non-operating property owned by SCE. This land is known as Areas 1, 3, and 5. SCE has made the land available to Dillon solely for purposes of this PPA and SCE has the exclusive rights to purchase the energy generated on these parcels of land.

Permitting

The parties have submitted applications for California Environmental Quality Act (CEQA) compliance, for a Conditional Use Permit (CUP) with the City of Palm Springs and the County of Riverside, and for Public Utilities Code Section 851 approval. SCE expects to obtain CUP approval and CEQA certification by March, 2006. Subsequently, the Section 851 application can be evaluated. The parties project that all permits will be obtained in time to construct the Dillon project for an online date of December 31, 2007. However, the Dillon project does have some permitting risk since essential permits have not yet been obtained, and the commercial online date is expected to be less than a year from the approval of the advice letter.

Transmission

Areas 1, 3, and 5 are located near SCE's Devers substation. Dillon and SCE have completed negotiations authorizing access within the Transmission Corridors to interconnect the Dillon Project to the SCE Transmission System. The Dillon Project will, therefore, not require any transmission upgrades. The parties expect the gen-tie to be complete by December 31, 2006.

Production Tax Credit

The Agreement is contingent on receiving PTCs. With an online date of December 31, 2007, the facility will qualify for PTCs. In addition, the recent extension of PTC to December 31, 2008 will provide Dillon Wind with a cushion to complete construction.

Sponsor's creditworthiness and experience

The renegotiations of the PPA led to the development of a special purpose entity, Dillon Wind LLC, as the counterparty to the amended and restated PPA. This allows the project to be protected from bankruptcy or other insolvency issues and other risks that may occur from PPM's other affiliates; for the same reasons, this also benefits the ratepayer. Scottish Power, an experienced and creditworthy corporation, remains the corporate guarantor.

PPA contributes to SCE's RPS goals

The Dillon project is a particularly attractive RPS wind project because no transmission upgrades are necessary, and the project is expected to initiate deliveries in late 2007. This relatively quick development period was facilitated because the project is located on non-operating SCE land, and PPM was able to negotiate an interconnection agreement with no transmission upgrades.

With the approval of this PPA, SCE will have contracted for deliveries of up to 132 GWh towards their 20% renewable energy target.

Amended and restated PPA's modified capacity terms

A notable difference in the amended and restated PPA from the Original PPA is the contracted capacity. The Original PPA allowed for a minimum of 22 MW to be developed on Areas 1 and 5, with an option to build on Area 3 by at least 15 MW; the maximum project capacity was 75 MW. The amended and restated PPA provides for a development of at least 45 MW on Areas 1, 3, and 5, with a maximum one time reduction potential of 15 MW.

As a result, the total capacity potential has changed, as well as the flexibility to expand or reduce the size of the project. The capacity reduction from 75 MW to 45 MW occurred because Dillon Wind successfully negotiated the assignment of a grandfathered interconnection agreement for up to 45 MW, without any additional transmission upgrades. A larger project would require a new interconnection agreement, new environmental studies, and potentially transmission and substation upgrades to support the additional capacity. These factors would require Dillon Wind to enter the ISO queue as a new project. As for the amendment to allow a one time reduction in nameplate capacity, Dillon Wind needs this flexibility to conclude its wind studies on Area 3.

Further amendments to the PPA could require evaluation of contract based on decisions approved since the 2003 ACR

The Energy Division evaluated this amended and restated PPA based on the interim RPS guidelines detailed in the 2003 Assigned Commissioners Ruling. Since then, the Commission has adopted Standard Terms and Conditions (D.04-06-014), a Market Price Referent (D.05-12-042), and a Least-Cost Best-Fit methodology (D.04-07-029). Any additional changes to the Dillon PPA could subject the PPA to the requirements valid at the time the advice letter is filed, which may include the abovementioned decisions.

The proposed PPA is, however, subject to the confidentiality protection and requirements in D.06-06-066.24

COMMENTS

This is an uncontested matter in which the decision grants the requested relief.  Therefore, pursuant to Public Utilities Code § 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

FINDINGS OF FACT

1. SCE filed Advice Letter 1914-E on August 31, 2005 requesting approval of a PPA between SCE and PPM Energy, Inc. The Commission approved the PPM Agreement with Resolution E-3963 on December 1, 2005.

2. SCE filed Advice Letter 2035-E on August 31, 2006, requesting Commission review and approval of an amended and restated PPM renewable energy contract. PPM established a special purpose entity, Dillon Wind LLC, to be the counterparty to the renegotiated PPA.

3. SCE briefed its Procurement Review Group regarding the PPM contract on August 30, 2005 and again briefed the PRG concerning the renegotiations on August 9, 2006. The members of SCE's PRG either supported or did not oppose the approval of this contract.

4. CPUC Resolution E-3934 approved the least-cost best-fit evaluation criteria used for SCE's 2003 interim solicitation, and Resolution E-3963 found that SCE had complied with the directives detailed in the 2003 Assigned Commissioner's Ruling concerning renewable energy procurement prior to full RPS implementation.

5. As part of the contract renegotiations, SCE required PPM to establish a special purpose entity, Dillon Wind LLC, which is the new counterparty to the PPA.

6. The amended and restated PPA has renegotiated pricing and contract terms.

CONCLUSIONS OF LAW

1. The RPS Program requires each utility, including SCE, to increase the amount of renewable energy in its portfolio to 20 percent by 2010, increasing by a minimum of one percent per year.

2. The Commission requires each utility to establish a Procurement Review Group (PRG) to review the utilities' interim procurement needs and strategy, proposed procurement process, and selected contracts.

3. The proposed amended and restated PPA is subject to D. 06-06-066, a CPUC decision regarding the confidentiality of electric procurement data submitted to the Commission.

4. D.02-08-071 approved an interim renewables contract reasonableness benchmark price of 5.37 cents/kWh. The decision found that other renewables contracts with a price above the benchmark may also be approved through advice letter.

5. Neither the 2003 ACR, nor any subsequent Commission decision, requires the utilities to include the standard terms and conditions adopted in D.04-06-014 in the PPAs that were submitted under the 2003 interim solicitation guidelines. The terms of the amended PPA, however, are reasonable because they are virtually the same as those found reasonable in the original PPA approved by the Commission.

6. Subject to CEC verification requirements, procurement pursuant to these Agreements constitutes procurement from eligible renewable energy resources for purposes of determining SCE's compliance with any obligation that it may have to procure eligible renewable energy resources pursuant to the California Renewables Portfolio Standard (Public Utilities Code Section 399.11 et seq.), Decision 03-06-071, or other applicable law.

7. Procurement pursuant to these Agreements constitutes procurement by SCE from eligible renewable energy resources for purposes of determining SCE's compliance with any procurement obligation SCE may have pursuant to the California Renewables Portfolio Standard, Decision 03-06-071, or other applicable law

8. The payments made under this contract between SCE and Sellers are reasonable and in the public interest; accordingly, the payments to be made by SCE are fully recoverable in rates over the life of the project, subject to CPUC review of SCE's administration of the PPA.

9. The payments made under the PPA and any indirect costs of renewables procurement identified in Section 399.15(a)(2) shall be recovered in rates.

10. Certain material filed under seal pursuant to Public Utilities (Pub. Util.) Code Section 583, General Order (G.O.) 66-C and D.06-06-066, and considered for possible disclosure, should not be disclosed. Accordingly, the confidential appendices, marked "[REDACTED]" in the redacted copy, should not be made public upon Commission approval of this resolution.

11. Approval of this advice letter does not constitute a precedent for the approval criteria for future amended renewable contracts.

12. Advice Letter 2035-E should be approved effective today.

THEREFORE IT IS ORDERED THAT:

1. Advice Letter AL 2827-E is approved contingent upon Dillon Wind LLC securing the necessary environmental clearances required pursuant to the California Environmental Quality Act (CEQA) and Commission approval under Section 851 of the California Public Utilities Code.

2. The costs of the contracts between SCE and Sellers are reasonable and in the public interest; accordingly, the payments to be made by SCE are fully recoverable in rates over the life of the project, subject to CPUC review of SCE's administration of the PPA.

3. This Resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on January 11, 2007; the following Commissioners voting favorably thereon:

Confidential Appendix A

Contract Summary: Dillon Wind LLC

[Redacted]

Confidential Appendix B

Contract Price Analysis

[Redacted]

Confidential Appendix C

PPM Letter

[Redacted]

Confidential Appendix D

Contribution towards RPS goals

[Redacted]

1 The PPA provides for a development of 45 MW and a maximum one time reduction potential of 15 MW

2 SCE will procure a minimum of 88 GWh and a maximum of 132 GWh, based on the contract terms that Dillon could supply 30 MW or 45 MW

3 The renegotiation of this contract led PPM Energy to establish Dillon Wind LLC, a special purpose entity, as the counterparty to the amended and restated PPA.

4 Resolution E-3963, source: http://www.cpuc.ca.gov/Published/Final_resolution/51714.htm

5 Although not subject to Market Price Referent decisions, the Dillon contract price is both below the 2005 MPR (Resolution E-3980) and 2006 MPR (Resolution E-4049) values for 20-year contracts with an online date in 2007.

6 "Any renewable procurement in the interim period must not anticipate the use of any Supplemental Energy Payments (SEPs) to be awarded by the California Energy Commission (CEC) pursuant to Public Utilities Code Sec. 383.5(d)." Source: Assigned Commissioner's Ruling Specifying Criteria for Interim Renewable Energy Solicitations

7 Statutes of 2002, Chapter 516

8 Defined in PU Code section 399.12(a)

9 PU Code Section 399.15(b)(1)

10 http://www.cpuc.ca.gov/Published/Final_decision/36206.htm

11 SB 107, Chapter 464, Statutes of 2006

12 D.04-06-015, source: http://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/37383.htm

13 IPT - The incremental procurement target (IPT) represents the amount of RPS-eligible procurement that the LSE must purchase, in a given year, over and above the total amount the LSE was required to procure in the prior year. An LSE's IPT equals at least 1% of the previous year's total retail electrical sales, including power sold to a utility's customers from its DWR contracts

14 http://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/18659.htm

15 Rulemaking (R.) 01-10-024, source: http://www.cpuc.ca.gov/PUBLISHED/RULINGS/28681.htm

16 The APT is the minimum amount of renewable generation the utility must procure each year to meet its RPS requirement, subject to the flexible compliance mechanisms authorized in D.03-06-071.

17 California Public Utilities Code section 399.11 et seq., as interpreted by D.03-07-061, the "Order Initiating Implementation of the Senate Bill 1078 Renewables Portfolio Standard Program", and subsequent CPUC decisions in Rulemaking (R.) 04-04-026.

18 The California Energy Commission is responsible for determining the RPS-eligibility of a renewable generator. See Public Utilities Code Sect. 399.12 and D.04-06-014.

19 The PPA provides for a development of 45 MW and a maximum one time reduction potential of 15 MW

20 SCE will procure a minimum of 88 GWh and a maximum of 132 GWh, based on the contract terms that Dillon could supply 30 MW or 45 MW

21 http://www.cpuc.ca.gov/word_pdf/FINAL_DECISION/18659.pdf

22 pgs. 34-35

23 Although the Dillon contract is not subject to Market Price Referent decisions, the MPR represents a reasonable benchmark for the Commission to use in evaluating this 20-year contract. Resolution E-3980 found the 2005 MPR for 20-year contracts that commence delivery in 2007 to be $80.98. Resolution E-4049 found the 2006 MPR for 20-year contracts that commence delivery in 2007 to be $84.60.

24 http://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/57772.htm

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