plant must take corrective action(s) to remedy the deficiency or face enforcement actions by the CPUC. ESTIMATED COST: Contract costs are confidential at this time. By Advice Letter 3488-E, filed on October 10, 2016. __________________________________________________________ Southern California Edison Company (SCE) seeks the California Public Utilities Commission (Commission or CPUC) approval of three bilateral resource adequacy (RA) capacity purchase agreements between SCE and AES Alamitos, LLC, AES Huntington Beach, LLC and AES Redondo Beach, LLC. The following table summarizes the RA contracts: Contract Seller Generation Type Generating Units RA Capacity / Contract Quantity by Unit Product Term of Delivery by Unit Alamitos RA Contract AES Alamitos Gas-fired generation Alamitos Unit 1 174.56 Megawatts (“MW”) RA June 2018 – December 2019 Alamitos Unit 2 175.00 MW RA June 2018 – December 2019 Alamitos Unit 3 332.18 MW RA June 2018 – December 2020 Alamitos Unit 4 335.67 MW RA June 2018 – December 2020 Alamitos Unit 5 497.97 MW RA June 2018 – December 2020 Alamitos Unit 6 495.00 MW RA June 2018 – December 2019 Huntington Beach RA Contract AES Beach Gas-fired generation Huntington Beach Unit 1 225.75 MW RA June 2018 – December 2019
Huntington Beach Unit 2 225.80 MW RA June 2018 – December 2020 Redondo Beach RA Contract AES Redondo Beach Gas-fired generation Redondo Beach Unit 5 178.87 MW RA June 2018 – December 2020 Redondo Beach Unit 6 175.00 MW RA June 2018 – December 2020 Redondo Beach Unit 7 505.96 MW RA June 2018 – September 2019 Redondo Beach Unit 8 495.90 MW RA June 2018 – December 2020 This resolution approves the AES Alamitos contract and the AES Huntington Beach contract but denies the AES Redondo Beach contract. The Alamitos and Huntington Beach units are needed to meet an identified LA Basin local reliability need for 2018 and a forecasted local reliability need for 2019 and 2020. Excess local capacity procured through these contracts will help to meet a forecasted system need. Once Through Cooling Decision (D.) 12-04-046 directed that an Investor-owned Utility (IOU) entering into Once Through Cooling (OTC) power purchase agreement with contract duration of more than two years but less than five years must submit a Tier-3 advice letter to the Commission for approval. Additionally, the decision provided an IOU entering into a power purchase agreement with OTC units that terminate one year or less prior to the applicable SWRCB compliance deadline, must file a Tier 3 advice that shows “how the agreement helps facilitate compliance with the State Water Resources Control Board policy regarding oncethrough cooling.” Finally, the decision specified the following criteria to be included in the Tier 3 Advise letter: 1) how the contract helps facilitate compliance with the SWRCB OTC policy, or at a minimum why it does not delay compliance; 2) the expected operation of the OTC facility under normal load (1 in 2) and high load (1 in 10) conditions, including the number of starts and run time after each start;
Complete data on capacity needs and calculation methodologies not provided ORA does not believe that SCE provided the complete assumptions behind its forecasted need. Specifically, ORA does not believe SCE addressed projected CCA load departure and assumptions regarding the Aliso Canyon gas stage facility. SCE responded to ORAs CCA load departure assumption request with confidentially marked information. Additionally, SCE responded to the assumption about Aliso Canyon gas stage facility by stating that “CAISO’s Final Local Capacity Technical Analysis for 2017 shifted 716 MW of LCR need from the LA Basin to the San Diego/Imperial Valley for 2017 only as a hedge against potential Alison Canyon usage limitations.” SCE response regarding its assumption about the 2018 forecasted need is also marked confidential. Contract duration is not adequately supported ORA argues that the time frames of the contracts do not support SCE’s needs and that “SCE has not demonstrated that extending the contracts though the expected life of the plants is prudent for all units.” SCE argues that it is in the best interest of its customers to bilaterally contract now for the three AES Southland resources for the time periods requested, which will provide both SCE and CAISO the availability of important generating resources that maintain LA Basin local reliability. Lacking issues of material fact requires an application ORA recommends that the Commission request an application for this request since the advice letter lacks material facts. Energy Division has reviewed the Advice Letter 3488-E, including its Appendices A through F, the protest filed by ORA, and SCEs response to ORA’s protest. Additionally, Energy Division has issues two data requests and reviewed these responses.