Welcome to PG&E's Qualifying Facility and Combined Heat and Power Procurement Program

This site provides an overview of the Qualifying Facilities and Combined Heat and Power ("QF/CHP") Program, as implemented by PG&E. The Wholesale Electric Power Procurement page provides additional information on PG&E's competitive solicitation program and the Renewable Portfolio Standard ("RPS") eligible Renewable Feed-in Tariffs.

Introduction

PG&E's purchase of electricity from CHP facilities under the QF/CHP Program supports the state's goals to reduce greenhouse gases attributable to electric generation. This program establishes the framework for a new CHP program for the California investor-owned utilities that is aligned with other Commission-approved procurement processes, including competitive solicitations, that will obtain the most cost-effective CHP resources for PG&E's customers. The terms of the California QF/CHP Program are contained in the QF/CHP Program Settlement Agreement Term Sheet (PDF, 463 KB). Additional documents associated with the Settlement can be found under the QF/CHP Settlement section of the Energy Supply webpages.

QF/CHP Program Implementation Workshop for Sellers

On November 8, 2011, PG&E held a QF/CHP Program Implementation Workshop for Sellers. The workshop provided an overview of Seller opportunities and obligations under the CHP Program Settlement with a focus on near-term deadlines. The workshop presentation materials (PDF, 158 KB) cover new pricing for qualifying facilities, major provisions in the "Amendment for Legacy QF Sellers" and the recently approved power purchase agreements, interconnection agreements, scheduling, compliance with the CAISO tariff, and GHG reporting requirements. We also provided instructions on how sellers may execute these agreements.

Contract Options

The QF/CHP Settlement Agreement includes pro-forma power purchase agreements ("PPAs") by which an eligible generator that meets the definition of Qualifying Cogeneration Facilities or a QF generator no larger than 20 MW may offer to sell its power to PG&E. Under California's Waste Heat and Carbon Emissions Reduction Act ("AB 1613"), PG&E will also enter into PPAs with eligible generators. These PPAs will help PG&E achieve the CHP procurement targets in the QF/CHP Settlement Agreement. PG&E will also enter into PPAs with AB 1613 Generators.

The Seller's Options (PDF, 10 KB) table provides an overview of commercial options under the QF/CHP Settlement Agreement, the details of which are summarized in the Key Provisions of the PPAs (PDF, 21 KB) chart for ease of comparison. Sellers interested in a particular PPA should refer to the Eligibility Criteria applicable to the specific PPA in the Key Provisions chart.

Existing Sellers

Existing QFs currently selling power to PG&E pursuant to the Public Utility Regulatory Policies Act ("PURPA") have the following options:

  • The Amendment to Legacy QF PPAs (PDF, 128 KB) offers QFs under unexpired QF PPAs the option of amending the energy payment terms of their QF PPAs by selecting one of several payment options. Please note that this option is available only for a limited time. The Legacy Amendment must be executed by May 21, 2012.
  • The Transition PPA for Existing Qualifying Cogeneration Facilities (PDF, 414 KB) offers an existing CHP facility whose existing QF PPA (or extension thereof) is scheduled to expire prior to July 1, 2015 the option to continue deliveries until July 1, 2015.

New Sellers and Existing Sellers with Soon-to-Expire Contracts

Eligible CHP and QF generators not under contract with PG&E have the following options (these are also available to eligible generators currently under contract with PG&E once their current contracts expire):

  • The Qualifying Facilities (or PURPA) PPA (PDF, 483 KB) offers QFs of 20 MW or less, including small power producers and renewable energy resources, the option to make firm or as-available sales to PG&E.
  • The Optional CHP PPA for Eligible As-Available Facilities (PDF, 460 KB) offers gas-fired CHP facilities with nameplate capacities greater than 20 MW, but average annual deliveries of less than 131,400 MWh, the option to make as-available deliveries to meet criteria specified in the QF/CHP Settlement Agreement. This agreement is only available until a subscription limitation in the QF/CHP Settlement Agreement is met.

In addition, eligible CHP generators with a nameplate capacity greater than 5 MW are encouraged to bid into our CHP Request for Offers (RFO) solicitation using {pro forma PPA for the CHP RFO}. PG&E will issue its first CHP RFO within 90 days of the Settlement Effective Date, followed by a Bidder's Conference. The Bidder's Conference will provide an overview of the offer submission, evaluation, and selection process and is open to all interested parties. Information regarding PG&E's first CHP RFO, can be found under the Wholesale Electric Power Procurement.

Interconnection

Each QF/CHP generator with an existing interconnection agreement with PG&E must replace its interconnection agreement if and when its existing PPA/interconnection agreement expires. For those requiring a new interconnection agreement, please note the following directions:

  • For CAISO-controlled grid interconnections, a CAISO interconnection agreement form will need to be executed. We recommend you contact the CAISO to execute a new interconnection agreement as soon as possible. Please consult the CAISO's Generator Interconnection Process webpage for more information.
  • For non CAISO-controlled distribution-level grid interconnections, a PG&E interconnection agreement form will need to be executed. We recommend you contact PG&E's Generation Interconnection Services group to execute a new interconnection agreement as soon as possible. You may also refer to PG&E's Wholesale Generator Interconnection webpage for more information.

In either case, the process of executing an interconnection agreement can be a lengthy one, so we recommend you begin the application process early. However, execution of a Legacy Amendment requires no action regarding interconnection because the existing interconnection agreement will remain in place.

Contract Execution

If you would like to execute a Legacy Amendment, PURPA PPA, As-Available PPA or Transition PPA, PG&E will assist you in preparing the documents. Please send PG&E's Contract Management team an email that states your specific contract request and full contact information (including log number). We will contact you and provide you with instructions to guide you through the contract execution process.

FAQs

Information of interest to existing and new QF/CHP sellers is also available on the Frequently Asked Questions page. Questions and answers appearing on this page will be updated throughout the next six months by our contract management team, so please check back often.

Last Modified: 12/07/2011

The information on this page is provided by PG&E as a convenience to the public and expressly does not constitute legal advice. An appropriate expert should be consulted to determine the effect of the CHP Settlement on any specific transaction, relationship, or circumstances. The publication of this regulatory overview does not constitute a solicitation for offers or an offer to buy or sell electricity. Every power purchase agreement between PG&E and any party is subject to PG&E senior management approval and the prior execution of definitive documents.