SCE - Biomass Standard Contract

Summary

Southern California Edison Company (SCE), an investor-owned electric utility, offers a production incentive to customers who generate electricity with eligible biomass-energy systems, including landfill gas, municipal solid waste, wood and wood waste, fuel cells, digester gas, and sewer gas. Separate contracts are available to facilities with capacities of less than 1 megawatt (MW), facilities greater than or equal to 1 MW but not greater than 5 MW, and systems greater than 5 MW but not greater than 20 MW. The seller may select a term of 10, 15 or 20 years. The production incentive payment is tied to the Market Price Referent, which increases annually. Participants will receive the rate that is available when their project comes on-line for the duration of their contract period. The Market Price Referent for 2008 varies from $92.71 per megawatt-hour (MWh) to $95.72 per MWh, depending on the length of the contract. All renewable-energy credits (RECs) convey to SCE. On April 25, 2006, Governor Arnold Schwarzenegger issued Executive Order S-06-06, which sets goals for energy produced by biomass resources. SCE voluntarily initiated this program in accordance with the order.