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SCE’s LCR Procurement Authorization

Local Capacity Requirements (LCR) RFO for New Resources and Other SCE Solicitations Stu Hemphill September 26, 2013. SCE’s LCR Procurement Authorization. D.13-02-015 orders SCE to procure the following resources by 2021 to meet LCR need due to the expected retirement of OTC units

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SCE’s LCR Procurement Authorization

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  1. Local Capacity Requirements (LCR) RFO for New Resources and Other SCE SolicitationsStu Hemphill September 26, 2013

  2. SCE’s LCR Procurement Authorization • D.13-02-015 orders SCE to procure the following resources by 2021 to meet LCR need due to the expected retirement of OTC units • Authorizes bilaterally negotiated AB1576 “cost of service” PPAs • West LA Basin gas-fired generation beyond minimum consistent with the preferred loading order • Moorpark Sub-Area has no specific technology requirements (consistent with loading order) • Moorpark Sub-Area: • 215-290 MW in Ventura/Big Creek West LA Sub-Area

  3. RFO Schedule • SCE will run a two round RFO process • Bidders Conference will likely occur on October 16 • Check the RFO website for details

  4. LCR RFO Commercial Highlights • SCE has prepared seven pro-forma contracts: • Energy Efficiency • Demand Response • Energy Storage • Resource Adequacy • Pro forma contracts are intended to capture the majority of the offers, but can be customized to meet any offer • SCE regularly negotiates the terms of its pro forma contracts • LCR RFO documents can be found at on.sce.com/lcrrfo • Questions should be directed to LCR.RFO@sce.com • Renewable • Combined Heat and Power • Conventional Gas-Fired

  5. LCR Challenges • Geographic constraints – Western L.A. basin • Timing – resources need to be available in 2021 • Availability of 50 MW of energy storage? • Availability of emissions permits • Resource counting

  6. Highlights of SCE’s Track 4 LTPP Testimony CPUC’s LTPP Track 4 is intended to identify incremental need due to the closure of SONGS • SCE has requested 500 MW of initial additional authority that would be procured through its LCR RFO • The remainder of any Track 4 procurement authorization provided to SCE would be purchased in a separate solicitation • SCE has proposed to develop sites for 500 MW of contingent generation to backstop its proposed Preferred Resource Pilot • If needed, these contingent generation projects would be secured from the market through a competitive process for IPP construction and ownership under a PPA with SCE • SCE has also proposed to contract for “options” for up to 1000 MW of generation as a backstop for transmission development and LTPP planning assumptions not materializing • SCE would sign PPAs with a termination right for SCE that would cover the IPP’s project development costs

  7. SCE Solicitations

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