CA Pub Util Code Section 454.6


A contract entered into pursuant to Section 454.5 by an electrical corporation for the electricity generated by a replacement or repowering project that meets the criteria specified in subdivision (b) shall be recoverable in rates, taking into account any collateral requirements and debt equivalence associated with the contract, in a manner determined by the commission to provide the best value to ratepayers.


To be eligible for rate treatment in accordance with subdivision (a), a contract shall be for a project which meets all of the following criteria:


The project is a replacement or repowering of an existing generation unit of a thermal powerplant.


The project complies with all applicable requirements of federal, state, and local laws.


The project will not require significant additional rights-of-way for electrical or fuel-related transmission facilities.


The project will result in significant and substantial increases in the efficiency of the production of electricity.


The Independent System Operator or local system operator certifies that the project is needed for local area reliability.


The project provides electricity to consumers of this state at the cost of generating that electricity, including a reasonable return on the investment and the costs of financing the project.
Last Updated

Aug. 19, 2023

§ 454.6’s source at ca​.gov