SoCal Edison's Major Photovoltaics Program Up For Vote

[OKIsItJustMe]

http://online.wsj.com/article/BT-CO-20090617-716271.html

JUNE 17, 2009, 6:05 P.M. ET

SoCal Edison's Major Photovoltaics Program Up For Vote

By Yuliya Chernova

Of DOW JONES CLEAN TECHNOLOGY INSIGHT

The fate of Southern California Edison Co.'s major solar photovoltaics program is due to be decided imminently, as the state's utilities commission sorts through competing proposals.

The utility, an Edison International (EIX) company, proposed in March 2008 to build and own 250 megawatts of solar PV installations on commercial rooftops throughout its service territory at a cost of $875 million. Several parties expressed concern over the high cost of the program, as well as the utility's asking for an additional rate of return. Other parties wanted the program to diversify beyond utility ownership, with some of the installations being bid out to third parties.

The California Public Utilities Commission is due to make the final decision on the program in its Thursday meeting, although this could be pushed off until its next meeting on July 9.

As utilities undertake large programs for the ownership of renewable-energy projects, they are likely to be beset with questions similar to those raised in the debate over SoCal Edison's plan. Duke Energy Corp. (DUK), for example, had to cut its proposed 100 MW plan by half because of cost as well as questions concerning competition. Utilities are increasingly looking at ownership of projects because they now qualify for the same federal tax credits that were previously available only to independent power producers.

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