Background on Relevant Terms of the CHP/QF Settlement On December 16, 2010, the Commission adopted the Qualifying Facility and Combined Heat and Power Program Settlement Agreement (Settlement) with the issuance of Decision (D).10-12-035. The Settlement resolved a number of longstanding issues regarding the contractual obligations and procurement options for facilities operating under legacy and Qualifying Facility (QF) contracts. The Settlement establishes megawatt (MW) procurement targets and GHG Emissions Reduction Targets the investor-owned utilities (IOUs) are required to meet by entering into contracts with eligible CHP Facilities, as defined in the Settlement. Pursuant to D.10-12-035, the three large electric IOUs must procure a combined minimum of 3,000 MW of CHP and reduce GHG emissions consistent with the California Air Resources Board Scoping Plan, currently set at 4.8 million metric tons (MMT) by the end of 2020. Sections 6 and 7 of the Settlement Term Sheet provide accounting methodology and principles for the IOUs and the CPUC to track GHG emissions reductions as a result of various activities, including contracting new CHP facilities, physically changing a CHP facility, shutting down existing CHP facilities, changing operations, etc. Under D.15-06-028, the Greenhouse Gas Emissions Reduction Targets were revised to collectively achieve 2.72 MMT of emissions reductions from CHP facilities by 2020. Background on the Corona Generating Facility SCE and Corona executed a Power Purchase Agreement (Legacy Contract) on May 31, 1985 for the procurement of energy and capacity from Corona for a term, set to expire on June 4, 2018. The CHP Settlement required that SCE offer its CHP contract counterparties the option to negotiate the terms of the pro year
The Commission is thus satisfied with SCE’s accounting methodology and proof that the thermal need no longer exists. The Commission approves SCE’s request for 7,727 MT of GHG reduction credits from the shutdown of the Corona facility. Public Utilities Code section 311(g)(1) provides that this resolution must be served on all parties and subject to at least 30 days public review and comment prior to a vote of the Commission. Section 311(g)(2) provides that this 30-day period may be reduced or waived upon the stipulation of all parties in the proceeding. The 30-day comment period for the draft of this resolution was neither waived nor reduced. Accordingly, this draft resolution was mailed to parties for comments, and will be placed on the Commission's agenda no earlier than 30 days from today. Commission Decision 10-12-035 directed SCE to procure 1,402 MW of combined heat and power capacity and established 1.22 MMT GHG reduction target. On March 26, 2018, Southern California Edison (SCE) filed Advice Letter (AL) 33752-E, seeking approval of 7,727 MT of GHG credit towards their reduction target. SCE correctly calculated the time differentiated Heat Rate (TDHR) as directed by Energy Division guidance from Cem Turhal’s February 12, 2012 presentation. The thermal need for the Corona Energy Partners, Ltd facility no longer exists. The request of Southern California Edison to claim GHG credits associated with permanently shutting down the Corona Energy Partners, Ltd facility, as requested in Advice Letter 3752-E, is approved.