Frequently Asked Questions
About the AB 1613 Program
Power Purchase Agreement Completion and Submission
- How do I obtain an AB 1613 Power Purchase Agreement?Send a request to the AB 1613 mailbox at AB1613Inquiries@pge.com specifying whether you wish the 20 MW, 5 MW, or 500 kW power purchase agreement ("PPA"). PG&E will then send the Seller a questionnaire with the information necessary to complete the PPA. Upon receipt of all the necessary information, PG&E will send a completed form PPA back to the Seller. After Seller signs and returns the form PPA to PG&E, PG&E will execute the PPA. The date of PG&E's execution will be the "Effective Date" of the PPA.
Pricing and Term
- How can my project qualify for the 10% location bonus?Prospective generators interconnected within an area identified by the California Independent System Operator ("CAISO") as having local resource adequacy requirements ("Local Resource Adequacy Areas") during the year in which the PPA is signed are eligible for a "location bonus" consisting of a 10 percent adder to each monthly contract payment. The interconnection point will be determined by the interconnection study performed in conjunction with the project.
- Will the 10% location bonus apply throughout the PPA term, even if the area no longer has a local resource adequacy requirement? Yes, if the project is in a local Resource Adequacy area during the year in which the PPA was signed, then the project will receive the 10% bonus for the term of the PPA.
- Will the price per kWh remain fixed over the life of the PPA?No. The Monthly Contract Payment contains a fixed price component and a variable price component. The fixed price component, which is based on components of the Market Price Referent approved by the CPUC, will be established by the term start date and will not escalate. The variable price component is derived from monthly gas prices times a fixed heat rate and a schedule of annually escalating variable O&M rates. Monthly variable pricing for AB 1613 facilities is available on the PG&E pricing website
- How is the PPA term determined?The PPA term is determined by the Seller at the time of execution and must be between 1 and 10 years.
- When must the project start deliveries?The project must start deliveries before the date specified by the Seller in the PPA. This date can be no later than 24 months following the execution date of the PPA for an existing CHP facility or 60 months for a new CHP facility.
- How do I know if the project meets the CEC eligibility requirements for AB 1613 generation? The project must be certified by the CEC prior to operation. Prospective generators should consult the CEC website for information on how to obtain certification. The Guidelines for Certification of Combined Heat and Power Systems, published in May 2010, is another resource that is available to prospective generators from the CEC's website.
- Are any other certifications required?YesThe facility must be a Qualifying Facility under Public Utilities Regulatory Policy Act ("PURPA"), unless it is owned by a public agency exempt from FERC jurisdiction under 16 USC §824(f),.
- What happens if CEC eligibility requirements change during the term?The project must meet the CEC eligibility requirements, as may be amended from time to time, throughout the term.
- What happens if the facility no longer meets CEC certification requirements during the contract term?If the facility is decertified after the Term Start Date and the Seller demonstrates compliance under PURPA, then PG&E will pay Short Run Avoided Cost ("SRAC") and payments for As-Delivered Capacity, as posted monthly pursuant to CPUC Decision 07-09-040 at the time of decertification. By accepting this payment, Seller will agree to replace its AB 1613 PPA with the "Standard Contract for Qualifying Facilities with a Power Rating that is Less than or Equal to 20 MW," which was adopted as part of the QF/CHP Settlement Agreement in D.10-12-035, for the remainder of the AB 1613 PPA term.
- Do I need to have identified a location for the project?Yes. Not only must the location be identified, Seller must also demonstrate site control, as defined in the AB 1613 PPA, within 60 days of the Effective Date. If the project is a new facility, then Seller must also update PG&E on the status of its site control prior to commencing construction on the Generating Facility.
- What sort of deliverability assessment do AB 1613 sellers need? Unless a waiver from the CPUC is obtained, AB 1613 sellers interconnecting under PG&E's "Wholesale Distribution Acccess Tariff" ("WDAT") or the California Independent System Operator ("CAISO") tariff must comply with requirements to provide resource adequacy, including obtaining full capacity delivery status under CAISO rules, to receive full AB 1613 pricing.
If the project will use a different form of interconnection, it is not currently required to provide full deliverability. However, future CPUC decisions may require Seller to obtain deliverability assessments.
- For projects interconnecting under the WDAT or CAISO tariff , what is the contract price if the projects do not provide Resource Adequacy?Generators will receive the PURPA energy price and as-available capacity prices.
Alternatives to the AB 1613 PPA
- What other contracting alternatives does PG&E offer for CHP projects?This table provides an overview of different contract options available to CHP projects.
- How different is the AB 1613 contract from the PURPA PPA (for QFs 20 MW or less) approved under the QF/CHP Settlement?Many of the terms and conditions vary. However, the most significant differences are the eligibility requirements and the pricing terms under the PURPA PPA (PDF, 483 KB). Please make sure to carefully review the terms and conditions on both contracting options before making your decision.