Standard Contracts for Combined Heat and Power Facilities pursuant to AB 1613

This site provides an overview of PG&E's Feed-in-Tariff (FiT) program for new efficient Combined Heat and Power ("CHP") facilities pursuant to Assembly Bill (AB) 1613. AB 1613 (Stats. 2007, Ch. 713), known as the "Waste Heat and Carbon Emissions Reduction Act" ("Act"), may be found at California Public Utilities Code section 2840.

Introduction

Under the AB 1613 program, PG&E will purchase excess power from qualifying cogeneration facilities, as defined by the Public Utilities Regulatory Policy Act ("PURPA"), with generating capacity of not more than 20 megawatts ("MW"). These facilities must have begun operations no earlier than January 1, 2008 and must meet the efficiency requirements issued by the California Energy Commission ("CEC") for CHP facilities under the Act. PG&E will pay an all-in price adopted by the California Public Utilities Commission ("CPUC") which is based on the capital cost of a combined cycle gas turbine and a variable natural gas based price. Generators interconnected in an area identified by the California Independent System Operator ("CAISO") as having local resource adequacy requirements ("Local Resource Adequacy Areas") are eligible for a "location bonus" consisting of a 10 percent energy price adder. The term of agreement may be no less than 1 year and no more than 10 years.

PG&E's AB 1613 tariff will offer three CPUC-approved pro-forma contracts (power purchase agreements or ("PPAs") which are applicable to generators of different sizes. These three non-modifiable and non-negotiable contracts may be accessed through the following hyperlinks.

  • The less than 20 MW PPA is used by AB 1613-eligible CHP systems with a nameplate electrical capacity rating equal to or less than 20 MW;
  • The less than 5 MW PPA is used by AB 1613-eligible CHP facilities with a nameplate electrical capacity of no more than 20 MW but providing no more than 5 MW of as-available contract capacity; and
  • The less than 500 kw PPA is used by AB 1613-eligible CHP electric generation systems with a power rating under 500 kW.

All three PPAs are non-negotiable and may be used by generators that meet the PPA criteria. The form contracts, including their prices and other terms and conditions, were developed and approved by Decision 09-12-042 and subsequent decisions in the AB 1613 proceeding, Rulemaking ("R.") 08-06-024. These decisions are available on the CPUC's website. The efficiency certification guidelines are available on the CEC website. Monthly variable pricing for AB 1613 facilities is available on the PG&E pricing website.

AB1613 CHP Facilities Located within Local Resource Adequacy Areas

To facilitate a seller’s determination of whether it is eligible for the location bonus, PG&E has identified the substations located within Local Resource Adequacy ("RA") Areas, also known as "Location Bonus Areas", on its website. Any AB 1613 generator seeking the location bonus must provide PG&E's Energy Procurement Contract Management with acceptable documentation that its serving substation was located within a Location Bonus Area during the year of contract execution, and that the AB 1613 generating facility is interconnected to that substation, prior to commercial operation under the AB 1613 PPA.

This list of substations (PDF, 745 KB) will be updated upon the CPUC’s annual adoption of the Local Resource Adequacy program requirements and the CAISO's annual identification of substations within RA Areas as part of its Technical Analysis. Currently, updates are expected to be made during the summer. PG&E is not responsible for any possible discrepancies between the Location Bonus Areas, Local RA Areas and the list of substations within the Local RA Area. The links below provide additional information about Local Resource Adequacy Areas:

For More Information

Parties with questions or inquiries about this program should send an email to PG&E's AB 1613 team. PG&E will make every effort to respond within two business days. For more information, please see the Frequently Asked Questions page for new efficient CHP systems.