Southern California Ed solar deals with Recurrent, 8minutenergy up for approval

The California Public Utilities Commission at its March 12 meeting is due to decide on a resolution that approves cost recovery for two long-term renewable energy power purchase agreements (PPAs) between Southern California Edison (SCE) and Recurrent Energy LLC for its Tranquillity project and 8minutenergy LLC for its Borden Solar Farm project.

Both PPAs were executed through SCE’s 2013 RPS solicitation.

  • Under the 15-year Tranquillity PPA, RPS-eligible generation will be purchased from the proposed Tranquillity facility. The Tranquillity facility is to be located in Fresno County and have a capacity of approximately 206 MW. Under this PPA, SCE is to begin purchasing generation beginning Dec. 1, 2019. The expected annual generation to be purchased is 555 gigaWatt-hours (GWh). This generation could count towards SCE’s RPS requirements in Compliance Period 2017-2020.
  • Under the 20-year Borden PPA, RPS-eligible generation will be purchased from the proposed Borden Solar Farm facility. The Borden facility is to be located in Madera County and have a capacity of approximately 51.3 MW. Under the Borden PPA, SCE is to begin purchasing generation beginning June 1, 2020. The expected annual generation to be purchased is 125 GWh. This generation could count towards SCE’s RPS requirements in Compliance Period 2017-2020.

Said a resolution from its staff that the commission will decide on at the March 12 meeting: “This Resolution approves both the Tranquillity PPA and the Borden PPA. SCE’s execution of these PPAs is consistent with SCE’s 2013 RPS Procurement Plan (RPS Plan), which the Commission approved in Decision (D.) 13-11-024. In addition, RPS deliveries pursuant both the Tranquillity PPA and the Borden PPA are reasonably priced. Consequently, the related costs to SCE are fully recoverable in rates over the life of both the Tranquillity PPA and the Borden PPA, subject to Commission review of SCE’s administration of the PPA.”

SCE retained Merrimack Energy Group as the independent evaluator (IE) to oversee its 2013 RPS solicitation. Merrimack also oversaw the negotiations between SCE and the two developers. Lastly, the IE evaluated the overall merits of the Tranquillity and Borden PPAs. In the IE’s opinion, both the Tranquillity and Borden PPAs were reasonably negotiated with contract terms that taken as a whole appropriately protect the interests of SCE’s ratepayers. The IE also concludes that both projects are very mature in terms of project development. Overall, the IE states that he agrees with SCE that the Tranquillity PPA and the Borden PAA merit commission approval. 

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.