Common use of Minimum Quantity Clause in Contracts

Minimum Quantity. Minimum contracting requirements apply to short term contracts less than 10 years in length 1. Explain whether or not the proposed contract triggers the minimum quantity requirement 2. If the minimum quantity requirement applies, provide a detailed calculation that shows the extent to which the utility has satisfied the minimum quantity requirement. If the requirement has not yet been satisfied for the current year, explain how the utility expects to satisfy the quantity by the end of the year to count the proposed contract for compliance. In D.▇▇-▇▇-▇▇▇, the Commission determined that in order to count energy deliveries from short- term contracts toward RPS goals, RPS-obligated load-serving entities must contract for deliveries equal to at least 0.25 percent of total retail sales in 2010 if the contract is signed during the first compliance period from 2011-2013. The proposed PSA is a long-term 10-year contract that does not trigger the minimum quantity requirement set forth in D.▇▇-▇▇-▇▇▇. PG&E expects to be in compliance with the long-term contracting requirement for the first compliance period. 10 See D.▇▇-▇▇-▇▇▇ at 56 (explaining that an IOU’s upfront showing for approval of procurement contracts that would fit within Portfolio Content Category Three must be sufficient for the Commission to determine that the electricity was generated by an RPS-eligible facility). Advice 4300-E October 10, 2013

Minimum Quantity. Minimum contracting requirements apply to short term contracts less than 10 years in length 1. Explain whether or not the proposed contract triggers the minimum quantity requirement 2. If the minimum quantity requirement applies, provide a detailed calculation that shows the extent to which the utility has satisfied the minimum quantity requirement. If the requirement has not yet been satisfied for the current year, explain how the utility expects to satisfy the quantity by the end of the year to count the proposed contract for compliance. In D.▇▇-▇▇-▇▇▇, the Commission determined that in order to count energy deliveries from short- term contracts toward RPS goals, RPS-obligated load-serving entities must contract for deliveries equal to at least 0.25 percent of total retail sales in 2010 if the contract is signed during the first compliance period from 2011-2013. The proposed PSA is a long-term 10-year contract that does not trigger the minimum quantity requirement set forth in D.▇▇-▇▇-▇▇▇. PG&E expects to be in compliance with the long-term contracting requirement for the first compliance period. 10 7 See D.▇▇-▇▇-▇▇▇ at 56 (explaining that an IOU’s upfront showing for approval of procurement contracts that would fit within Portfolio Content Category Three must be sufficient for the Commission to determine that the electricity was generated by an RPS-eligible facility). Advice 43004299-E October 10, 20132013 PG&E expects to be in compliance with the long-term contracting requirement for the first compliance period.

Minimum Quantity. Minimum contracting requirements apply to short term contracts less than 10 years in length 1. Explain whether or not the proposed contract triggers the minimum quantity requirement 2. If the minimum quantity requirement applies, provide a detailed calculation that shows the extent to which the utility has satisfied the minimum quantity requirement. If the requirement has not yet been satisfied for the current year, explain how the utility expects to satisfy the quantity by the end of the year to count the proposed contract for compliance. In D.▇▇-▇▇-▇▇▇, the Commission determined that in order to count energy deliveries from short- term contracts toward RPS goals, RPS-obligated load-serving entities must contract for deliveries equal to at least 0.25 percent of total retail sales in 2010 if the contract is signed during the first compliance period from 2011-2013. The proposed PSA is a long-term 10-year contract that does not trigger the minimum quantity requirement set forth in D.▇▇-▇▇-▇▇▇. PG&E expects to be in compliance with the long-term contracting requirement for the first compliance period. 10 See D.▇▇-▇▇-▇▇▇ at 56 (explaining that an IOU’s upfront showing for approval of procurement contracts that would fit within Portfolio Content Category Three must be sufficient for the Commission to determine that the electricity was generated by an RPS-eligible facility). Advice 43004301-E October 10, 2013