Clean Coalition Scores Victory on SCE “Termination Clause”
The Clean Coalition recommendations for the termination clause were the only suggested changes that SCE adopted from all filed comments.
At a May 11 Renewable Auction Mechanism (RAM) Forum, Southern California Edison (SCE) proposed changes to its RAM PPA, incorporating key recommendations by the Clean Coalition.
The proposed changes alter an unreasonable ‘termination clause’ within the PPA that allowed SCE to terminate signed PPAs with renewable energy developers. Proposed changes to the PPA include: invalidating the ‘termination clause’ once an Interconnection Agreement is executed; raising the ‘termination clause’ trigger from 10% above the projected interconnection cost to the lesser of either 25% above the projected interconnection cost or $100,000 above the projected cost; and allowing developers to pay for the total grid upgrade cost overrun, which gives developers the option to proceed even if the interconnection costs have exceeded the limit. These Clean Coalition recommendations for the termination clause were the only suggested changes that SCE adopted from all filed comments.
Although the changes have yet to be formally adopted, SCE already removed the termination clause from its PPA. Furthermore, the Clean Coalition expects the changes to soon be reflected in a new resolution by SCE.