June 19, 2001
ROSEMEAD, Calif., June 19, 2001-Southern California Edison (SCE) announced today that it has reached an agreement with most of its renewable Qualifying Facilities (QF) power producers that addresses past payment issues and future pricing considerations, and creates a mechanism for ending numerous lawsuits.
"We believe this agreement will help bring stability to an important segment of California's energy market," said SCE Chairman, President & CEO Stephen E. Frank.
The plan was negotiated between the utility and key representatives of the QF industry and facilitated by Governor Gray Davis' office. To date, SCE has received signed agreements from QFs representing approximately 95% of its renewable energy capacity and today executed those contracts. The company hopes that the small number of remaining producers will also agree. Certain elements of the agreements are subject to the approval of the California Public Utilities Commission.
The plan calls for generators to provide power at a fixed price-5.37 cents/kWh-over the next five years, eliminating some of the price volatility that has plagued California's energy markets during the current crisis. The plan stays all existing legal action, and assures that no new legal action will be initiated unless the terms of the agreement are not met.
"The people of Edison are committed to pursuing the benefits of negotiated practical solutions to California's energy crisis," said Frank. "The QF agreement and the MOU, if approved, are critical steps toward resolving the crisis. A bankruptcy, in contrast, would lead to years of delay and uncertainty for our customers and raise serious questions about the business climate in California."
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An Edison International company, Southern California Edison is one of the nation's largest electric utilities, serving a population of more than 11 million via 4.3 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.