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 year 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
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
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