Resolution E-4137

1. The utilities request approval of proposed feed-in tariffs for the purchase of electricity from eligible small renewable generators Tariffs would be available immediately (2/14/08) Resolution E-4137 February 14, 2008

2. Background: AB 1969 & D.07-07-027 • AB 1969 (Yee, 2006) authorized Feed-In tariffs for small renewable generators (<1.5 MW) owned by public water and wastewater facilities • Facilitates a streamlined interconnection process • Statewide cumulative capacity up to 250 MW • D.07-07-027 allocated proportionally by share of total peak demand, as directed by statute • Rate is determined by Market Price Referent with Time of Delivery adjustments

3. Background: AB 1969 & D.07-07-027 • D.07-07-027 also made Feed-In tariffs available to small non-water customer-sited generation • PG&E and SCE territories only • RPS-eligible small renewable generators (<1.5 MW) • Additional capacity up to 228 MW statewide, for a total of 478 MW • Rates are the same as for the public water and wastewater tariffs

4. Resolution E-4137 • Feed-In tariff approach complements CSI, RPS, SGIP and other programs to promote procurement of renewable energy • No overlap • Allows for generation above on-site demand • Streamlined approach • Standard Terms and Conditions • RECs transfer to utilities with sale of electricity • Helps utilities meet RA requirements • 10, 15, or 20 year fixed base price contracts