"QUALIFYING FACILITY ISSUES"

Recent Activity on QF Issues

Proceeding Implementing P.U. Code § 390

On November 18, 1999, the Commission issued O.I.R. 99-11-022. The Scoping Memo of January 4, 2000 established two phases for the proceeding. Phase 1 was designated to (1) establish the criteria/test to be used in determining whether the PX were ready to use for SRAC purposes, (2) establish exactly what PX-based index to use, (3) address line loss issues, and (4) address as-available capacity payment issues. Following filed testimony, workshops, and two rounds of hearings, a proposed decision was issued on September 5, 2000.

The PD (1) establishes test/criteria focused narrowly on the PX's being applicable to SRAC payments, (2) proposes the PX day-ahead price with a capacity subtractor of zero (since this is the same index as the one adopted in D.99-11-025 for QFs switching to a PX-based price pursuant to §390(c), there would be no true-up), (3) revises the line loss factors to incorporate Generator Meter Multipliers developed by the ISO, and (4) eliminates as-availability capacity payments.

On July 28, 2000 Edison filed a motion to revise the transition formula, claiming the current formula was no longer accurate.

On August 31, 2000 Edison filed an emergency motion to revise the SRAC posting beginning September 2000, claiming that the border index was not reflective of actual prices, and warning of irreparable ratepayer harm if the posting were not revised. On October 5, 2000 the Commission denied this motion (D. 00-10-030)

Resolution E-3657: February 17, 2000
PG&E - Ultrapower3 QF Contract Restructuring Agreement
On October 13, 1999, PG&E filed Advice Letter 1927-E, seeking Commission approval for an agreement terminating the ISO4 QF contract with Ultrapower 3. PG&E estimates net ratepayer benefits of between $12.1 and $12.7 million. The agreement also provides for a PG&E shareholder incentive payment of $1.09 million. The buyout agreement is approved without modification.

For More Information on QF Issues from the Energy Division

Contact James Loewen, Energy Division, at 415-703-1866, or by email at loe@cpuc.ca.gov