SAN FRANCISCO, April 10, 2008
The California Public Utilities Commission (CPUC), in its ongoing efforts to ensure a reliable supply of electricity for the state, today approved a 10-year contract for Southern California Edison Company to purchase up to 455 megawatts of capacity and energy, beginning August 1, 2010, from CPV Sentinel, LLC.
“Our actions today are demonstrative of our efforts to get customers and Investor-Owned Utilities, Community Choice Aggregators, and Energy Service Providers ahead of the curve and add energy resources to the supply mix before the need reaches a critical state,” said CPUC President Michael R. Peevey. “Our approval of this contract is another step toward continuing to provide a reliable, cost effective energy supply for California’s consumers while minimizing potential environmental impacts.”
On July 20, 2006, the CPUC issued a decision (D.06-07-029) designed to encourage the development of new electric resources for system reliability. The decision established a mechanism for allocating the benefits and costs of new generation to all benefitting customers in an Investor-Owned Utility’s service territory, including Investor-Owned Utility customers, Direct Access customers, and Community Choice Aggregation customers. Southern California Edison has elected to apply this cost allocation mechanism to the CPV Sentinel contract.