DISCUSSION OF MERIT FOR APPROVAL Clause Samples

DISCUSSION OF MERIT FOR APPROVAL. In ▇▇▇▇▇▇’▇ opinion, both the contract amendment to extend price relief under the existing contract and the new five-year agreement with Wheelabrator Shasta merit CPUC approval. • The CPUC found the project’s 2011 price relief amendment to be reasonable, including its pricing; the current amendment’s pricing is than the price of the 2011 amendment that applied in the last eleven months of its term. While ▇▇▇▇▇▇ ranks the PPA’s contract price as high compared to recent competing proposals from projects delivering renewable energy, the more relevant peer group to which to compare this short-term amendment is other recent opportunities available to PG&E from biomass-fueled facilities that agree to deliver power in the short term from biofuel harvested from High Hazard Zones. The pricing of the new contract ranks low to moderate compared to that peer group; its value ranks moderate to high. • Similarly, the contract amendment will likely result in payments above the market price of renewable energy. This might amount to excess payments in the vicinity of by ratepayers above what they would pay for renewable energy at market prices, depending on market and performance outcomes. The $/MWh net market value of the Wheelabrator Shasta amendment deliveries will however be those of previous price extensions that PG&E granted to other QFs that are burning HHZ fuel and those of proposals received in PG&E’s BioRAM solicitation for delivering energy derived from HHZ fuel. The contract amendment is an immediate means of obtaining bioenergy from HHZ fuel at a value better than or comparable to competing alternatives. • While the price of the new five-year contract ranks high compared to competing proposals to deliver renewable energy, the more relevant peer group to which to compare this contract is other proposals from biomass-fueled facilities that offered to deliver power from biofuel harvested from High Hazard Zones. The price of the new agreement ranks low when compared to those proposals that still remained available to PG&E after the BioRAM RFO selections were completed. • The Portfolio-Adjusted Value of the new contract in levelized $/MWh ranks high compared to those of competing proposals for HHZ fuel-derived energy that were available to PG&E after the BioRAM solicitation. ▇▇▇▇▇▇ independently ranked the new contract as moderate in net market value among those proposals. However, ▇▇▇▇▇▇ agrees that contracting with Wheelabrator Shasta was the highest-valued alter...

DISCUSSION OF MERIT FOR APPROVAL. ▇▇▇▇▇▇ concurs with PG&E management that the DG Fairhaven contract amendment merits CPUC approval, although ▇▇▇▇▇▇ has a few reservations about the amendment, described in greater detail in the confidential appendix to this report. In ▇▇▇▇▇▇’▇ opinion the contract offers low to moderate net value, low to moderate contract price, and high project viability. It would contribute to PG&E's efforts to meet its short-term RPS Goals under flexible compliance rules. In particular, the contract amendment would support continued compliance with Executive Order S-06-06 regarding the goal for biomass-fueled generation in the state; it would protect against employment losses in a locality with a higher proportion of low-income residents than the state at large.

DISCUSSION OF MERIT FOR APPROVAL. In Arroyo’s opinion, the 83WI 8ME contract merits CPUC approval:

DISCUSSION OF MERIT FOR APPROVAL. Based on an opinion that the North Star Solar contract likely ranks as moderate for net valuation and contract price, moderate for project viability, and moderate for portfolio fit, ▇▇▇▇▇▇ agrees with PG&E that the PPA merits Commission approval.

DISCUSSION OF MERIT FOR APPROVAL. In ▇▇▇▇▇▇’▇ opinion, the RE Astoria contract merits CPUC approval:

DISCUSSION OF MERIT FOR APPROVAL. In ▇▇▇▇▇▇’▇ opinion, the contract amendment to extend price relief for ▇▇▇▇▇▇ Forest Products merits CPUC approval.

DISCUSSION OF MERIT FOR APPROVAL. ▇▇▇▇▇▇ concurs with PG&E management that the HLP contract amendment merits CPUC approval, although ▇▇▇▇▇▇ has a few reservations about the amendment, described in greater detail in the confidential appendix to this report. In Arroyo’s opinion the contract amendment offers moderate net value, moderate contract price, and high project viability. It would contribute to PG&E's efforts to meet its RPS Goals. In particular, the contract amendment would support continued compliance with Executive Order S-06-06 regarding the goal for biomass-fueled generation in the state. It would protect against employment losses in a locality with a higher proportion of low-income residents than the state at large.

DISCUSSION OF MERIT FOR APPROVAL. ▇▇▇▇▇▇ concurs with PG&E management that the SGS-1 contract merits CPUC approval. In ▇▇▇▇▇▇’▇ opinion the contract offers moderate net value, a moderate contract price, moderate portfolio fit, and moderate to high project viability. It would contribute to PG&E's efforts to meet its long-term RPS Goals, and will likely also support its short-term RPS goal under flexible compliance rules. ▇▇▇▇▇▇’▇ opinion is that negotiations between parties were conducted fairly, and that the resulting contract is fair to ratepayers and to competing developers.

DISCUSSION OF MERIT FOR APPROVAL. ▇▇▇▇▇▇ concurs with PG&E management that the ERP contract amendment merits CPUC approval, although ▇▇▇▇▇▇ has a few reservations about the amendment, described in greater detail in the confidential appendix to this report. In ▇▇▇▇▇▇’▇ opinion the contract