Southern California Edison (SCE) recently announced revisions to the pro forma power purchase agreement (PPA) governing the California Renewable Energy Small Tariff (CREST) acquisition program.

CREST is designed to be “a simple and streamlined mechanism for [small renewable] generators to sell electricity to the utility without complex negotiations and delays.”1 The program is available to any renewable energy generation facility not exceeding 1.5 megawatts (MWs), utilizing a certified resource listed under California’s Renewables Portfolio Standard (RPS),2 and operated within SCE’s service territory. SCE enters into CREST PPAs on a first-come, first-served basis, purchasing at predetermined, non-negotiable prices either: (1) the entire output of a renewable generation facility or (2) the excess energy produced by the facility and not used onsite by the customer. Generating facilities receiving subsidies from other California renewable energy programs, including net metering and the California Solar Initiative, may not participate in CREST.

SCE recently released a draft of its proposed CREST PPA, which is based on SCE’s previously proposed PPA for Solar Photovoltaic Generating Facilities Not Greater Than 5 MWs (the Solar PV Program 5MW PPA).3 The Solar PV Program is one of the primary vehicles by which SCE acquires solarpowered electricity, and the 5MW PPA is a streamlined contract designed to reduce the transaction costs associated with aggregating power from smaller producers.

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