UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION

Mesquite Solar 2, LLC ) Docket No. ER16-_____-000

PETITION OF MESQUITE SOLAR 2, LLC FOR ORDER ACCEPTING MARKET-BASED RATE TARIFF FOR FILING AND GRANTING WAIVERS AND BLANKET APPROVALS AND REQUEST FOR EXPEDITED ACTION

Pursuant to section 205 of the Federal Power Act (FPA),1 Rule 205 of the Rules of

Practice and Procedure of the Federal Energy Regulatory Commission (FERC or Commission),2 and Part 35 of the Commission’s regulations under the FPA,3 Mesquite Solar 2, LLC (Applicant)

hereby petitions the Commission for: (1) acceptance of its Market-Based Rate Tariff with an

effective date of May 20, 2016; (2) waiver of certain Commission regulations under the FPA;

and (3) the granting of certain blanket approvals. As described herein, Applicant respectfully requests issuance of an order granting the above requests no later than May 20, 2016.

As discussed in Section IV of this application, Applicant also requests a blanket authorization under FPA § 204 and Part 34 of the Commission’s regulations to issue securities and assume liabilities. Applicant requests that the Commission issue a notice concerning the request for such blanket authorization under FPA § 204 and Part 34 of the Commission’s

regulations at the same time, and with the same comment period, as that issued for the notice of

1 16 U.S.C. § 824d.

2 18 C.F.R. § 385.205.

3 18 C.F.R. Part 35.

1 Applicant’s FPA § 205 application for market-based rate authorization.4 Applicant further

requests that the Commission grant its request for blanket authorization to issue securities and

assume liabilities (without imposing any additional notice period) in the same order and at the

same time it issues the order granting Applicant’s market-based rate authority so that such

blanket authorization will be fully effective at the time of the order.5

I. COMMUNICATIONS

Communications and correspondence concerning this filing should be directed to the following:

Daniel A. King Adam Wenner Sempra U.S. Gas & Power, LLC Orrick, Herrington & Sutcliffe LLP 488 8th Ave. HQ12S1 Orrick Building at Columbia Center , CA 92101 1152 15th Street NW (619) 696-4350 Washington, DC 20005-1706 [email protected] (202) 339-8515 [email protected]

II. DESCRIPTION OF APPLICANT AND RELEVANT AFFILIATES

A. Applicant

Applicant is a wholly-owned direct subsidiary of Sempra Solar Holdings, LLC (Solar

Holdings), which in turn is a wholly-owned direct subsidiary of Sempra Renewables, LLC

4 See, e.g., Notice Announcing Combined Notice of Initial Market-Based Rate Authorization Filings, 73 Fed. Reg. 19495 (Apr. 10, 2008); Saracen Energy Partners, LP, Docket No. ER08-901-000 “Supplemental Notice That Initial Market-Based Rate Filing Includes Request For Blanket Section 204 Authorization” (May 22, 2008).

5 See Saracen Energy Partners, LP, Docket No. ER08-901-000 (June 12, 2008) (unpublished letter order granting blanket authorization under Part 34 of the Commission’s regulations that was fully effective at the time the order granting market-based rate authority was issued and did not impose any additional notice period for the FPA § 204 and Part 34 blanket authority because notice of that request was issued contemporaneously with market-based rate request).

2 (Sempra Renewables),6 which in turn is a wholly-owned direct subsidiary of Sempra Global, which in turn is a wholly-owned direct subsidiary of .7

Applicant is constructing and will own and operate a solar photovoltaic (PV) electric generation facility currently under construction in Maricopa County, , with a nameplate capacity of 100.82 MW (Solar Facility) located in the CAISO balancing authority area (BAA).8

Applicant will sell the entire output of the Solar Facility pursuant to a 20-year power purchase agreement (PPA)9 with the Southern Edison Company,10 which is unaffiliated with

Applicant.

6 Applicant anticipates that its current upstream ownership will change as a result of a future investor acquiring indirect, passive tax equity interests in Applicant (Tax Equity Transaction), which interests will provide the investor with limited rights consistent with the consent rights held by the passive tax equity investors in AES Creative Resources, L.P. et al., 129 FERC ¶ 61,239 (2009). Any such changes in the upstream ownership of Applicant will be undertaken consistent with applicable requirements pursuant to, among other things, Section 203 of the FPA and Section 35.42 of the Commission’s regulations. Prior to the closing of the Tax Equity Transaction, two additional entities, each of which are wholly-owned by Sempra Energy, will be interposed between Applicant and Solar Holdings, such that Applicant will be a wholly-owned direct subsidiary of CMMS Solar Portfolio Holdings, LLC, which in turn is a wholly-owned direct subsidiary of CMMS Equity Holdings, LLC, which in turn is a wholly-owned direct subsidiary of Sempra Renewables. For the Commission’s convenience, organizational charts depicting Applicant’s above-described current and pre-Tax Equity Transaction ownership structures are included as Attachments A-1 and A-2 to this application.

7 Sempra Energy is a publicly-traded public utility holding company based in San Diego, California, that provides, through various subsidiaries and affiliates, a wide spectrum of electric, natural gas, and energy-related products and services to a diverse range of customers. Sempra Energy also wholly owns Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E). SoCalGas, a natural gas distribution company and Hinshaw pipeline regulated by the California Public Utilities Commission (CPUC), serves customers through most of southern California and part of central California. SDG&E is a public utility with a franchised service territory that provides electric and natural gas service in San Diego County and southern Orange County, California. SDG&E owns transmission facilities and is a Participating Transmission Owner in the market operated by the California Independent System Operator Corporation (CAISO), which has an open access transmission tariff (OATT) on file with the Commission. Transmission service over SDG&E’s transmission facilities is provided under the terms and conditions of the CAISO OATT.

8 See California Independent System Operator Corp., Docket No. ER15-2499-000 (Letter Order dated (Oct. 9, 2015)(accepting CAISO large generator interconnection agreement for filing).

9 The precise expiration date of the PPA is unknown at this time. Within 30 days of the expiration date becoming known, Applicant will submit an informational filing in this docket to inform the Commission of the date. See Refinements to Policies and Procedures for Market-Based Rates for Wholesale Sales of Electric Energy, Capacity and Ancillary Services by Public Utilities, Order No. 816, 153 FERC ¶ 61,065 (2015) at P 44.

10 CPUC Energy Division Resolution E-4738 (issued Nov. 6, 2015).

3 The Solar Facility also consists of certain interconnection facilities that are to be shared

with adjacent generators as tenants in common. Applicant is party to the Amended and Restated

Co-Tenancy and Shared Facilities Agreement (Restated Inter-Phase SFA), which governs the terms and conditions under which the parties will own, utilize, operate, and maintain their respective interests in a 34.5/230kV substation and a 230kV generation-tie line approximately four (4) miles in length (together, the Mesquite Solar Generator-tie Facilities).11 In addition,

Applicant is party to the Assignment, Co-Tenancy and Shared Facilities Agreement (Revised

Inter-Company SFA), which governs the terms and conditions under which the parties will own,

utilize, operate, and maintain their respective interests in certain additional shared generator

interconnection facilities (Shared Switchyard Facilities).12 Pursuant to the Restated Inter-Phase

SFA and the Revised Inter-Company SFA, Applicant’s pro rata interests in the Mesquite Solar

Generator-tie Facilities and the Shared Switchyard Facilities are sized to accommodate the

output of the Solar Facility and will be utilized by Applicant solely to connect its Solar Facility

to the grid.

B. Relevant Generation Affiliates

In addition to SDG&E, Applicant is affiliated with the following entities that own or

control generation in the CAISO BAA, Applicant’s relevant market:13

11 See Mesquite Solar 1, LLC, et al., Docket No. ER16-525-000, et al. (Letter Order dated Feb. 9, 2016)(accepting Restated Inter-Phase SFA for filing).

12 The Shared Switchyard Facilities consist of the following components, each with associated property, fixtures, equipment, and facilities: (i) a 230kV bus; (ii) two 230kV lines each terminating at individual three-phase autotransformer banks; (iii) two 230/500kV three-phase autotransformer banks; (iv) two 500kV lines approximately 0.3 miles in length connecting each autotransformer bank to the Hassayampa switchyard (Hassayampa); and (iv) interconnection facilities in bays 5 and 8 in Hassayampa. See Mesquite Solar 1, LLC, et al., Docket No. ER16-290- 000, et al. (Letter Order dated Dec. 8, 2015)(accepting Revised Inter-Company SFA for filing).

13 Concurrently with this application, Copper Mountain Solar 4, LLC (CMS4) and Mesquite Solar 3, LLC (MS3) – each a wholly-owned indirect subsidiary of Sempra Energy – are also submitting separate applications pursuant to Part 35 of the Commission’s regulations for market-based rate authority and related waivers in

4  Alpaugh North, LLC, which owns a 20 MW (nameplate) solar PV facility;

 Alpaugh 50, LLC, which owns a 50 MW (nameplate) solar PV facility;

 CED White River Solar, LLC, which owns a 20 MW (nameplate) solar PV facility;

 CED Corcoran Solar, LLC, which owns a 20 MW (nameplate) solar PV facility;

 Copper Mountain Solar 1, LLC, which owns a 58.5 MW (nameplate) solar PV facility;

 Copper Mountain Solar 2, LLC, which owns a 155.3 MW (nameplate) solar PV facility;

 Energia Sierra Juarez U.S., LLC, which sells the output from the 155.1 MW (nameplate) Energía Sierra Juarez, S. de R.L. de C.V. wind project;

 Mesquite Solar 1, LLC, which owns a 170 MW (nameplate) solar PV facility; and

 Terrmoelectrica U.S., LLC (T-US), which sells the output from the 680.85 MW (nameplate) Terrmoelectrica de Mexicali, S. de R.L. de C.V. combined cycle facility.14

Applicant identifies affiliates that own or control generation or electric transmission facilities, as well as any other affiliate that has been granted market-based rate authority, or that owns or controls natural gas intrastate pipelines or natural gas intrastate storage facilities in

Attachment B to this application, which is prepared in compliance with the Appendix B format required pursuant to Order No. 816.

III. REQUEST FOR AUTHORIZATION TO SELL ENERGY, CAPACITY, AND ANCILLARY SERVICES AT MARKET-BASED RATES

A. Description of Applicant’s Rate Schedule

Applicant requests authorization under its proposed Market-Based Rate Tariff to sell energy, capacity, and certain ancillary services at market-based rates to any purchaser for resale,

connection with sales from their respective solar PV facilities, both of which will also be located in the CAISO BAA.

14 The “Updated Market Power Analysis for the Southwest Region,” (Sempra SW Triennial) Docket No. ER12-2499-000, et al. (filed Dec. 30, 2015) submitted by sellers affiliated with Sempra Energy provided additional information at pp. 2-16 regarding the above-listed affiliates.

5 consistent with the terms of its proposed Market-Based Rate Tariff, which is included as

Attachment C to this application.

B. Satisfaction of Criteria for Market-Based Rates

The Commission permits sales of energy, capacity, and ancillary services at market-based

rates if the seller and its affiliates (i) lack horizontal market power in the relevant geographic

market, i.e., they do not have (or have adequately mitigated) market power in generation; and

(ii) lack vertical market power in the relevant geographic market, i.e., they do not have (or have

adequately mitigated) market power in transmission and cannot erect barriers to entry to

competing suppliers through the control of inputs to electric power production.15

Applicant has retained Julie R. Solomon, Managing Director of Navigant Consulting,

Inc., to perform a market power analysis for the CAISO market as required by Order No. 697.

Ms. Solomon has concluded that Applicant lacks horizontal and vertical market power. An

affidavit describing more fully the methodology used and conclusions reached by Ms. Solomon,

along with the accompanying exhibits and workpapers, is included as Attachment C hereto.16 As discussed below, because neither Applicant nor any of its affiliates has horizontal or vertical market power, Applicant meets the Commission’s criteria for authority to sell energy, capacity, and ancillary services at market-based rates.

1. Applicant Lacks Horizontal Market Power

The Commission reviews horizontal market power by assessing the market power of the

15 See Market-Based Rates for Wholesale Sales of Electric Energy, Capacity and Ancillary Services by Public Utilities, Order No. 697, 119 FERC ¶ 61,295 (2007), order on clarification, 121 FERC ¶ 61,260 (2007), reh’g, Order No. 697-A, 123 FERC ¶ 61,055 (2008), reh’g, Order No. 697-B, 125 FERC ¶ 61,326 (2008), reh’g, Order No. 697-C, 127 FERC ¶ 61,284 (2009). See also Heartland Energy Services, Inc., 68 FERC ¶ 61,223 (1994) at pp 62,060-63; Enron Power Enterprise Corp., 52 FERC ¶ 61,193 (1990) at 61,708; FirstEnergy Servs., Inc., 94 FERC ¶ 61,052 (2001).

16 As noted in Attachment C, Ms. Solomon’s analysis and conclusions with respect to the lack of horizontal and vertical market power take into account the CMS4 and MS3 facilities.

6 seller and any of its affiliates that own generation or control generation in the relevant market

through tolling agreements, energy management agreements, or other contractual

arrangements.17 The Commission has also authorized the submission of streamlined applications

and the use of simplifying assumptions, where appropriate.18

In Order No. 697, the Commission defines the default relevant market for transmission-

owning sellers located in traditional BAAs, as “first, the balancing authority area where the seller

is physically located, and second, the markets directly interconnected to the seller’s balancing

authority area (first-tier balancing authority areas).”19 For sellers located in organized markets

such as the CAISO, first-tier markets need not be analyzed.20 As outlined below and discussed

in Attachment C, the relevant geographic market for purposes of this analysis is the CAISO, the

location of Applicant’s generation resource.21

The pivotal supplier test compares the amount of uncommitted capacity owned or

controlled by an applicant in the relevant market and the net uncommitted capacity in that

market. If the seller’s total uncommitted capacity in the market is less than the difference between the total uncommitted capacity and the wholesale load, then the seller passes the screen.22 The market share screen calculates the seller’s share of uncommitted capacity in the

17 See Order No. 697 at P 232 n.261; AEP Power Marketing, Inc., 107 FERC ¶ 61,018 (2004) at P 73 n.63.

18 See Order No. 697 at P 337; AEP Power Marketing, Inc., 107 FERC ¶ 61,018 (2004) at PP 113-117.

19 Id. at P 232.

20 Id. at P 231 n.215. Applicant notes that its only affiliated generation owned or controlled in a market first- tier to CAISO is located in the Department of Water and Power BAA. That affiliated generation is fully committed pursuant to a long-term PPA with an unaffiliated purchaser. See Sempra SW Triennial at pp. 7-8 (describing generation owned by Copper Mountain Solar 3, LLC).

21 Ms. Solomon uses seasonal ratings for purposes of the analysis, which is consistent with the rating methodology used by Applicant’s affiliates in the Sempra SW Triennial. See Order No. 816 at P 105.

22 AEP Power Mktg., Inc., et al., 107 FERC ¶ 61,018 (2004) at P 99.

7 relevant market during each of the four seasons. If a seller’s share of uncommitted capacity in

the relevant market is under 20% in each season, the seller passes the market share screen.

Applicant easily passes the pivotal supplier and market share screen in the relevant markets.

As shown in Attachment C, Ms. Solomon concludes that Applicant passes each of the

indicative screens in the relevant market.23 The measures demonstrate that Applicant is not a

pivotal supplier in the relevant market. Furthermore, the analyses confirm that Applicant’s market share in the relevant market is well below the 20 percent threshold established by the

Commission. Indeed, as Ms. Solomon shows, Applicant passes the indicative screens even

without taking into account unaffiliated imports into the CAISO.24 Having passed both screens,

Applicant is presumed not to possess horizontal market power.25

In any event, the Commission has previously stated that it will consider any existing

Commission-approved market monitoring and mitigation regime already in place within

organized markets that provide for mitigation of that market with respect to market

concentration.26 Indeed, the Commission has specifically found that market monitoring and

mitigation rules are sufficient to address market power concerns in a Commission-approved RTO

or ISO, including the CAISO market.27 Applicant commits to comply with all applicable CAISO

23 Ms. Solomon’s analysis relies on data submitted with the affidavit included as part of the Sempra SW Triennial, which is currently pending before the Commission. In addition, Ms. Solomon concludes that, had she instead relied upon the most recent Commission-approved CAISO market data for purposes of her analysis, Applicant would readily pass each of the indicative screens. Attachment C at p. 5-6.

24 Attachment C at p. 5-6.

25 See Order No. 697 at P 62; 18 C.F.R. § 35.37(c)(I).

26 See Order No. 697 at P 240-42, P 290, and Order No. 697-A at P 111 (adopting a rebuttable presumption that existing Commission-approved RTO/ISO market monitoring and mitigation is sufficient to address any market power concerns).

27 NRG Power Marketing LLC, et al., 150 FERC ¶ 61,011 (2015) at P 9. See also, Desert Sunlight 250, LLC, et al., Docket Nos. ER13-1991-004 et al. at p. 2 (Oct. 30, 2015) (unpublished letter order).

8 market rules regarding market monitoring and mitigation. Accordingly, there are no horizontal

market power concerns with regard to Applicant or its affiliates in in the relevant market.

2. Applicant Lacks Vertical Market Power

In determining whether an applicant has vertical market power, the Commission

considers the applicant’s and its affiliates’ ownership, operation or control of transmission

facilities and, through affiliation, the applicant’s ownership or control of inputs to electric power

production, such as the transportation or distribution of the inputs to electric power production.28

The Commission has stated that a market-based rate seller may demonstrate that it lacks, or has mitigated, transmission market power if it or any of its affiliates: (i) have on file a

Commission-approved OATT; (ii) have received from the Commission a waiver of the OATT requirement; or (iii) qualify for the blanket OATT waiver provided for in Section 35.28(d)(2) of

the Commission’s regulations.29 Operational control of SDG&E’s transmission facilities is

exercised by the CAISO, and the use of these assets is governed by the CAISO’s Commission-

approved OATT. This, as the Commission has previously stated, is “deemed to mitigate a

seller’s transmission market power.”30 Other than the aforementioned SDG&E facilities,

Applicant affirms that the transmission facilities owned by Applicant and its affiliates are limited

and discrete, with respect to which Applicant’s affiliates have received from the Commission a

waiver of the OATT requirement31 and otherwise qualify for the blanket open access waivers

28 18 C.F.R. § 35.37(d) – (e).

29 Open Access and Priority Rights on Interconnection Customer’s Interconnection Facilities, Order No. 807, 150 FERC ¶ 61,211(2015) at P 57, order on reh’g, Order No. 807-A, 153 FERC ¶ 61,047 (2015).

30 Order No. 697 at P 21.

31 See e.g., SEP II, LLC, 148 FERC ¶ 61,221 (2014) at P 26 (granting waiver of requirements to file an OATT, establish and maintain an OASIS, and to comply with the Commission’s Standards of Conduct with respect to the Mesquite Solar Generator-tie Facilities and the Shared Switchyard Facilities); and Mesquite Solar 1, LLC, 138 FERC ¶ 61,074 (2012) (granting the same waivers with respect to the aforementioned facilities).

9 provided for under Section 35.28(d)(2) of the Commission’s regulations that grant a public utility

that owns, controls, or operates only Interconnection Customer’s Interconnection Facilities a

blanket waiver from the Commission’s open access requirements.32 Accordingly, Applicant and

its affiliates do not possess transmission market power.

The Commission also considers whether a market-based rate seller or its affiliates have

the ability to erect barriers to entry by competing wholesale power suppliers in the relevant

geographic markets. The Commission has stated that the ability to erect entry barriers may be

present when a seller or its affiliates have control over intrastate natural gas transportation;

intrastate gas storage or distribution facilities; sites for generation capacity development;

physical coal supply sources and ownership of or control over who may access transportation of

coal supplies.33

Applicant is affiliated with entities that own or control intrastate natural gas

transportation and intrastate gas storage or distribution facilities described in Attachment B

hereto. These facilities can be and are used to deliver natural gas to electric generation

customers in southern California. However, this fact does not raise issues with regard to barriers

to entry. Consistent with the conditions imposed in the Enova merger,34 the SoCalGas/SDG&E

pipeline and distribution systems are operated in compliance with a code of conduct that

provides for non-discriminatory access to all customers and restricts interactions between and

among the utilities’ various system operations and merchant components and their affiliates.

Additionally, in order to make sales into the CAISO or to site a facility in southern California, a

32 See 18 C.F.R. § 35.28(d)(2).

33 Order No. 697 at P 446.

34 San Diego Gas & Electric Co., et al., 79 FERC ¶ 61,372 (1997) (granting conditional approval), and San Diego Gas & Electric Co., et al., 83 FERC ¶ 61,199 (1998) (granting final approval). See also CPUC, Decision 98- 03-073, 184 PUR 4th 417 (1998).

10 new gas-fired generation entrant need not even be served via the integrated SoCalGas/SDG&E

system, but could also be served by one of many interstate pipelines. Moreover, the Commission

has adopted a rebuttable presumption that market-based rate sellers cannot erect barriers to entry

with regard to the ownership or control of, or affiliation with any entity that owns or controls

intrastate natural gas transportation, intrastate natural gas storage or distribution facilities, sites for generation capacity development, and sources and transportation of coal supplies.35

Therefore, there are no vertical market power concerns regarding these intrastate natural gas facilities.

A Sempra Energy subsidiary owns Mississippi Hub, LLC, which operates an interstate natural gas storage facility in Mississippi. Sempra Energy subsidiaries also own a majority interest in LA Storage, LLC, which owns and operates an interstate natural gas pipeline that offers transportation and hub services in , Cameron Interstate Pipeline, LLC, which owns an interstate natural gas pipeline that offers transportation services in Louisiana, and a minority interest in the Rockies Express Pipeline system, an interstate natural gas pipeline that extends from natural gas production basins in Colorado and Wyoming to its terminus in eastern

Ohio. Finally, a Sempra Energy subsidiary owns a majority interest in a liquefied natural gas

(LNG) receipt terminal near Lake Charles, Louisiana and is developing an LNG export facility at the same site.36 The Commission has previously found natural gas supply, interstate natural gas

transportation and storage, oil supply, and oil transportation do not raise concerns regarding

barriers to entry.37

35 Order No. 697 at PP 446, 1018.

36 See Cameron LNG, LLC et al., 147 FERC ¶ 61,230 (2014).

37 Order No. 697 at PP 441-444. See also InterCoast Power Marketing Company, 68 FERC ¶ 61,248 (1994) at 62,132-33, order clarifying prior order, 68 FERC ¶ 61,324 (1994) (with respect to barriers to entry, explaining

11 Except for the intrastate natural gas facilities identified herein and in Attachment B, neither Seller nor any of its affiliates own or control any inputs to electric power production, as defined in Section 35.36 of the Commission’s regulations.38

Applicant affirms pursuant to Section 35.37(e)(4) of the Commission’s regulations and

Order 697 that neither it nor its affiliates have erected barriers to entry into the relevant market, including through land acquisitions,39 and will not erect barriers to entry into the relevant market.

Thus, Applicant satisfies the Commission’s requirements for showing a lack of ability to erect barriers to entry and satisfy the second prong of the vertical market power test.

3. There Is No Potential for Affiliate Abuse or Reciprocal Dealing

The Commission has traditionally indicated its concern that a public utility having a franchised service territory and an affiliate may be able to transact in ways that transfer benefits from the captive customers of the franchised utility to the affiliate and its shareholders. In Order

No. 697, the Commission discontinued considering affiliate abuse as a separate “prong” of the market-based rate analysis and codified affiliate restrictions in the Commission’s regulations as a condition of obtaining and retaining market-based rate authority. Applicant will abide by the

Commission’s codified affiliate restrictions as a condition of its market-based rate authority.

C. Ancillary Services

Applicant seeks authorization to sell certain ancillary services in the CAISO BAA. With respect to sales of ancillary services in the market operated by the CAISO, Applicant relies on that the Commission previously has determined that involvement in oil and gas ventures, excluding natural gas distribution, does not constitute a barrier to entry sufficient to preclude power marketing authorization).

38 18 C.F.R. § 35.36 defines “inputs to electric power production” as “intrastate natural gas transportation, intrastate natural gas storage or distribution facilities; sites for generation capacity development; physical coal supply sources and ownership of or control over who may access transportation of coal supplies.” Applicant’s affiliates own sites for potential generation capacity development, but the Commission has clarified that such ownership is not relevant to its evaluation of vertical market power. See Order No. 816 at P 200.

39 Order No. 897 at P 210.

12 the studies submitted and accepted by the Commission in previous orders,40 and has included in

its tariff the standard tariff language adopted by the Commission for such sales. In addition,

Applicant seeks authorization to make third party sales of certain ancillary services, and has

included the Commission’s Order No. 784 standard tariff language for such sales in its tariff.41

D. Determination of Seller Category Status

Because it is affiliated with entities that control more than 500 MW of generation in the

Southwest Region, and is affiliated with SDG&E, which is a franchised public utility that owns transmission facilities in the same region as Applicant’s generation facility, Applicant is a

Category 2 Seller in the Southwest Region.

The Commission’s regulations define Category 1 Sellers as wholesale power marketers

and wholesale power producers that meet each of the following criteria: (1) are either wholesale

power marketers that control or are affiliated with 500 MW or less of generation in aggregate per

region or are wholesale power producers that own, control or are affiliated with 500 MW or less

of generation in aggregate in the same region as its generation assets;42 (2) do not own, operate,

or control transmission facilities other than limited equipment necessary to connect individual

generating facilities to the transmission grid (or have been granted waiver of the requirement of

Order No. 888, [FERC Stats & Regs. ¶ 31,036 (1996)]); (3) are not affiliated with anyone that

owns, operates, or controls transmission facilities in the same region as the seller’s generation

assets; (4) are not affiliated with a franchised public utility in the same region as the seller’s

40 See AES Redondo Beach, L.L.C., et al., 85 FERC ¶ 61,123 (1998), order on reh’g, 87 FERC ¶ 61,208 (1999), order on reh’g and clarification, 90 FERC ¶ 61,036 (2000).

41 Third Party Provision of Ancillary Services, Accounting and Financial Reporting for New Electric Storage Technologies, Order No. 784, 144 FERC ¶ 61,056 (2013) at PP 200-201.

42 For purposes of this analysis, the regions are Northeast, Southeast, Central, Southwest Power Pool, Southwest, and Northwest. See Appendix D to Order No. 697-A.

13 generation assets; and (5) do not raise other vertical market power issues.43 Market-based rate

sellers that do not qualify as Category 1 Sellers are defined as Category 2 Sellers.44 Once the

Commission determines that a seller meets the criteria for classification as a Category 1 Seller,

such seller is not required to file updated market power analyses, or evidence of Category 1

Seller status, as long as it continues to meet the criteria for classification as a Category 1 Seller.45

Applicant requests Category 1 Seller status in the Northeast, Southeast, Central,

Southwest Power Pool, and Northwest regions (collectively, Category 1 Regions) because: (1)

Applicant does not control more than 500 MW of generation in aggregate in any of the Category

1 Regions; (ii) Applicant does not own, operate or control any transmission facilities in the

Category 1 Regions and, except as otherwise described herein, Applicant is not affiliated with

anyone that owns, operates or controls transmission facilities in the same region as its generation

assets;46 (iii) Applicant is not affiliated with a franchised public utility in any region for which it is seeking Category 1 status; and (iv) as noted in Section III.B.2., above, there are no vertical

market power concerns. Therefore, Applicant respectfully requests a determination that it meets the criteria for classification as a Category 1 Seller in the Category 1 Regions.

43 18 C.F.R. § 35.36(a)(2).

44 Id. § 35.36(a)(3).

45 Order No. 697-A at P 376.

46 The Commission’s staff clarified at the Technical Conference on Guidance on Preparation of Market-Based Rate Filings and Electric Quarterly Reports by Public Utilities (Docket No. AD10-4-000) held on March 3, 2010, that, consistent with the definition of a Category 1 Seller, a company that owns, or will own, physical electric assets in one of the regions described in Order No. 697, but does not itself own or control physical electric assets in one or more of the other of the regions, will be a Category 1 Seller in such other regions, regardless of whether its affiliates own or control electric assets in such other regions. See also Vantage Wind Energy LLC, Docket No. ER10-956-000 (May 26, 2010) (unpublished letter order confirming that applicant was a Category 1 Seller in the regions in which it did not own or control physical electric assets, regardless of the fact that its affiliates own or control electric assets in such other regions).

14 IV. REQUEST FOR BLANKET APPROVALS AND WAIVERS

Applicant seeks the same blanket approvals and waivers of Commission rules and filing

requirements previously granted to other sellers permitted to sell electricity at market-based

rates. This relief consists of:

 Waiver of Subparts B and C of Part 35 of the Commission’s regulations, except as to Sections 35.12(a), 35.13(b), 35.15, and 35.16;

 Waiver of Parts 41, 101 (with the exception of provisions thereof that apply to hydropower licenses with respect to licensed hydropower projects), and 141 of the Commission’s accounting and periodic reporting regulations, except as to Sections 141.14 and 141.15;

 Blanket approval under Section 204 of the FPA and Part 34 of the Commission’s regulations for all future issuances of securities and assumptions of liability;47 and

 Such other waiver and authorizations as the Commission may deem appropriate.

V. BLANKET WAIVERS OF REGULATORY REQUIREMENTS APPLICABLE TO TRANSMISSION PROVIDERS

Applicant affirms that the transmission facilities owned by Applicant, which consist

solely of the above-described Mesquite Solar Generator-tie Facilities and the Shared Switchyard

Facilities, qualify for the blanket open access waivers provided for under Section 35.28(d)(2) of the Commission’s regulations, which grant a public utility that owns, controls, or operates only

Interconnection Customer’s Interconnection Facilities a blanket waiver from the Commission’s

open access requirements.48

47 For the reasons set forth on pages 1–2 of this Application, the Applicant requests that the Commission (i) issue a notice of the Part 34 blanket authorization request contemporaneously with, and with the same comment period as, the notice of this Application’s request for market-based rate authorization and (ii) grant the Part 34 request in the order granting market-based rate authority so that it will be fully effective at the time of the order without imposing any further notice period.

48 See 18 C.F.R. § 35.28(d)(2).

15 VI. NOTIFICATION OF PRICE REPORTING STATUS

Section 35.41(c) of the Commission’s regulations, as amended by Order No. 697,49 requires that a seller with market-based rate authority notify the Commission whether it engages in the reporting of transactions to publishers of electricity or natural gas price indices. Applicant hereby notifies the Commission that it does not and will not engage in reporting of transactions to publishers of electricity or natural gas price indices.

VII. EFFECTIVE DATE AND REQUEST FOR EXPEDITED ACTION

Applicant requests a waiver of the 60-day notice requirement in order to permit its

Market-Based Rate Tariff to become effective on May 20, 2016. Good cause exists to grant such waiver, as this application does not present horizontal or vertical market power concerns.

Applicant also respectfully requests that the Commission issue an order granting this application no later than May 20, 2016. Expedited action is requested in order to facilitate the above-described Tax Equity Transaction.

49 18 C.F.R. § 35.41(c).

16 VIII. CONCLUSION

WHEREFORE, for the reasons stated above, Applicant requests that the Commission

issue an order no later than May 20, 2016 accepting for filing Applicant’s proposed Market-

Based Rate Tariff effective May 20, 2016, and granting Applicant’s requests for waivers and blanket approvals.

Respectfully submitted,

/s/ Daniel A. King _ Daniel A. King Sempra U.S. Gas & Power, LLC 488 8th Ave. HQ12S1 San Diego, CA 92101 (619) 696-4350

On behalf of Mesquite Solar 2, LLC Dated: April 1, 2016

17

ATTACHMENT A1

OWNERSHIP STRUCTURE Current

Sempra Energy

100%

Sempra Global

100%

Sempra Renewables, LLC

100%

Sempra Solar Holdings, LLC

100%

Mesquite Solar 2, LLC

ATTACHMENT A-2 OWNERSHIP STRUCTURE Pre-Tax Equity Transaction

Sempra Energy

100%

Sempra Global

100%

Sempra Renewables, LLC

100%

Sempra Solar Holdings, LLC

100%

CMMS Equity Holdings, LLC

100%

CMMS Solar Portfolio Holdings, LLC

100%

Mesquite Solar 2, LLC

ATTACHMENT B

ENERGY AFFILIATES

Asset Appendix: Generation Assets

ABCDEFGHIJKLM Location Capacity Rating: Methodology Used in [K]: Docket # Where MBR Generation Name (Plant or Unit Date Control Capacity Rating: Capacity Rating: Used in Filing Entity and its Energy Affiliates Owned By Controlled By In-Service Date (N)ameplate, (S)easonal, 5-yr End Note Number Authority was Granted Name) Transferred Market/Balancing Nameplate (MW) Filing (MW) Geographic Region (U)nit, 5-yr (E)IA, Authority Area (A)lternative

Alpaugh 50, LLC ER12-2498 Alpaugh 50 Alpaugh 50, LLC Alpaugh 50, LLC N/A CAISO Southwest 2012 50 50 (S) 1 Alpaugh North, LLC ER12-2499 Alpaugh North Alpaugh North, LLC Alpaugh North, LLC N/A CAISO Southwest 2012 20 20 (S) 2 Broken Bow II, LLC ER14-1776 Broken Bow 2 Wind Project Broken Bow Wind II, LLC Broken Bow Wind II, LLC N/A SPP SPP 2014 73.1 73.1 (N) 3 CED Corcoran Solar, LLC N/A Corocoran CED Corcoran Solar, LLC CED Corcoran Solar, LLC N/A CAISO Southwest 2013 20 20 (S) 4 CED White River Solar, LLC ER13-764 White River CED White River Solar, LLC CED White River Solar, LLC N/A CAISO Southwest 2013 20 20 (S) 5 Pub Serv. Co of N/A Northwest 2010 250.8 250.8 (N) Cedar Creek II, LLC ER11-2029 Cedar Creek II Wind Farm Cedar Creek II, LLC Cedar Creek II, LLC Colorado 6 Copper Mountain Solar 1, LLC ER11-4055 CM10 Copper Mountain Solar 1, LLC Copper Mountain Solar 1, LLC N/A CAISO Southwest 2008 10.5 10.5 (N) Copper Mountain Solar 1, LLC ER11-4055 CM48 Copper Mountain Solar 1, LLC Copper Mountain Solar 1, LLC N/A CAISO Southwest 2010 48 48 (N) 2012 (Phase 1) N/A CAISO Southwest 155.3 154 (S) Copper Mountain Solar 2, LLC ER12-1566 Copper Mountain Solar 2 Copper Mountain Solar 2, LLC Copper Mountain Solar 2, LLC 2015 (Phase 2) 7 Copper Mountain Solar 3, LLC ER14-1548 Copper Mountain Solar 3 Copper Mountain Solar 3, LLC Copper Mountain Solar 3, LLC N/A LADWP Southwest 2015 255 255 (S) 8 Copper Mountain Solar 4, LLC ER16-___ Copper Mountain Solar 4 Copper Mountain Solar 4, LLC Copper Mountain Solar 4, LLC N/A CAISO Southwest 2016 (planned) 93.6 93.6 (N) Energia Sierra Juarez U.S., LLC ER12-1470 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 9, 10 Energia Sierra Juarez, S. de R.L. de Energia Sierra Juarez, S. de R.L. Energia Sierra Juarez, S. de R.L. N/A CAISO Southwest 2015 155.1 155.1 (N) C.V. N/A ESJ Wind de C.V. de C.V. 10 Flat Ridge 2 Wind Energy LLC ER12-1400 Flat Ridge 2 Facility Flat Ridge 2 Wind Energy LLC Flat Ridge 2 Wind Energy LLC N/A SPP SPP 2012 419.2 419.2 (N) 11 Flat Ridge 2 Wind Energy LLC ER12-1400 Flat Ridge 2 South Facility Flat Ridge 2 Wind Energy LLC Flat Ridge 2 Wind Energy LLC N/A SPP SPP 2012 51 51 (N) 11 Fowler Ridge II Wind Farm LLC ER09-1655, ER10-2596 Fowler Ridge II Wind Farm Fowler Ridge II Wind Farm LLC Fowler Ridge II Wind Farm LLC N/A PJM Northeast 2009 150 150 (N) 12 Fowler Ridge II Wind Farm LLC ER09-1655, ER10-2596 Fowler Ridge II Wind Farm Fowler Ridge II Wind Farm LLC Fowler Ridge II Wind Farm LLC N/A MISO Central 2009 49.5 49.5 (N) 12 Mehoopany Wind Energy LLC ER12-2200 Mehoopany Wind Farm Mehoopany Wind Energy LLC Mehoopany Wind Energy LLC N/A PJM Northeast 2012 140 140 (N) 13 Mesquite Solar 1, LLC ER11-3987 Mesquite Solar 1 Mesquite Solar 1, LLC Mesquite Solar 1, LLC N/A CAISO Southwest 2011 170 170 (S) 14 Mesquite Solar 2, LLC ER16-___ Mesquite Solar 2 Mesquite Solar 2, LLC Mesquite Solar 2, LLC N/A CAISO Southwest 2016 (planned) 100.82 100.82 (N) Mesquite Solar 3, LLC ER16-___ Mesquite Solar 3 Mesquite Solar 3, LLC Mesquite Solar 3, LLC N/A CAISO Southwest 2016 (planned) 153.97 153.97 (N) San Diego Gas & Electric Company ER99-3426 Cuyamaca Peak Energy Plant San Diego Gas & Electric Co. San Diego Gas & Electric Co. N/A CAISO Southwest 2002 48.94 48.7 (S) San Diego Gas & Electric Company ER99-3426 Palomar Energy Center San Diego Gas & Electric Co. San Diego Gas & Electric Co. N/A CAISO Southwest 2006 550 562 (S) San Diego Gas & Electric Company ER99-3426 Miramar Energy Facility 1 GT San Diego Gas & Electric Co. San Diego Gas & Electric Co. N/A CAISO Southwest 2005 46.6 47 (S) San Diego Gas & Electric Company ER99-3426 Miramar Energy Facility 1 GT San Diego Gas & Electric Co. San Diego Gas & Electric Co. N/A CAISO Southwest 2009 48.5 47 (S) San Diego Gas & Electric Company ER99-3426 Desert Star Energy Center San Diego Gas & Electric Co. San Diego Gas & Electric Co. N/A CAISO Southwest 2000 495 450 (S)

ER01-1178; ER05-440 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Sempra Generation, LLC ER14-474; SEP II, LLC ER14-1775 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Termoelectrica de Mexicali, S. de R.L. Termoelectrica de Mexicali, S. de Termoelectrica de Mexicali, S. de N/A CAISO Southwest 2003 185.3 185.3 (N) de C.V. N/A TDM Unit 1 R.L. de C.V. R.L. de C.V. Termoelectrica de Mexicali, S. de R.L. Termoelectrica de Mexicali, S. de Termoelectrica de Mexicali, S. de N/A CAISO Southwest 2003 185.3 185.3 (N) de C.V. N/A TDM Unit 2 R.L. de C.V. R.L. de C.V. Termoelectrica de Mexicali, S. de R.L. Termoelectrica de Mexicali, S. de Termoelectrica de Mexicali, S. de N/A CAISO Southwest 2003 310.25 310.25 (N) de C.V. N/A TDM Unit 3 R.L. de C.V. R.L. de C.V. Termoelectrica U.S., LLC ER03-175 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Asset Appendix: Long-term Purchased Power Agreements (PPA)

AB CDEFGHI Docket # where Location Filing Entity and its Energy Amount of PPA Start Date End Date MBR authority was Seller Name Market/Balancing Affilaites (MW) Geographic (mo/day/yr) (mo/day/yr) End Note granted Authority Area Region Number

San Diego Gas & Electric Company ER99-3426 Goal Line L.P. 49.9 CAISO Southwest 2/15/1995 2/14/2025

San Diego Gas & Electric Company ER99-3426 Naval Station QF (AEI) 49.9 CAISO Southwest 12/1/1989 11/30/2019

San Diego Gas & Electric Company ER99-3426 North Island QF 34.5 CAISO Southwest 12/1/1989 11/30/2019 NTC/MCRD San Diego Gas & Electric Company ER99-3426 Cogeneration 23 CAISO Southwest 12/1/1989 11/30/2019 NTC/MCRD San Diego Gas & Electric Company ER99-3426 Steam Turbine (AEI) 2.58 CAISO Southwest 12/1/1989 11/30/2019 Garnet Green San Diego Gas & Electric Company ER99-3426 Power 16.5 CAISO Southwest 6/28/2004 12/31/2018

San Diego Gas & Electric Company ER99-3426 Otay Mesa Energy Center - CT 1 163.5 CAISO Southwest 10/3/2009 10/2/2019

San Diego Gas & Electric Company ER99-3426 Otay Mesa Energy Center - CT 2 163.5 CAISO Southwest 10/3/2009 10/2/2019

San Diego Gas & Electric Company ER99-3426 Otay Mesa Energy Center - STG 276 CAISO Southwest 10/3/2009 10/2/2019

San Diego Gas & Electric Company ER99-3426 Otay Landfill V 1.6 CAISO Southwest 6/21/2013 6/20/2033

San Diego Gas & Electric Company ER99-3426 Otay Landfill VI 1.6 CAISO Southwest 6/21/2013 6/20/2033

San Diego Gas & Electric Company ER99-3426 Kumeyaay Wind Farm 50 CAISO Southwest 3/21/2006 12/31/2025 MM San Diego - Miramar San Diego Gas & Electric Company ER99-3426 Landfill 7.3 CAISO Southwest 5/20/2013 5/19/2023

San Diego Gas & Electric Company ER99-3426 Ocotillo Express Wind Project 265 CAISO Southwest 12/27/2012 7/29/1933 City of San Diego - Point Loma Sewage San Diego Gas & Electric Company ER99-3426 Treatment Plant 4.84 CAISO Southwest 1/1/2008 12/31/2016

San Diego Gas & Electric Company ER99-3426 MM - Prima Deschecha (Capistrano) 5 CAISO Southwest 10/1/2007 9/30/2022

San Diego Gas & Electric Company ER99-3426 San Marcos Landfill Bio-Gas 1 CAISO Southwest 5/18/2011 5/17/2031

San Diego Gas & Electric Company ER99-3426 Catalina Solar 110 CAISO Southwest 11/27/2013 11/26/2038

San Diego Gas & Electric Company ER99-3426 ArlingtonValley Solar II 127 CAISO Southwest 11/5/2013 11/4/2038

San Diego Gas & Electric Company ER99-3426 Sycamore Landfill 3.12 CAISO Southwest 5/16/2011 5/15/2031

San Diego Gas & Electric Company ER99-3426 Mountain Wind 22.8 CAISO Southwest 12/15/2003 12/14/2018

San Diego Gas & Electric Company ER99-3426 Phoenix West Wind 2.1 CAISO Southwest 12/15/2003 12/14/2018

San Diego Gas & Electric Company ER99-3426 Oasis Wind 60 CAISO Southwest 12/25/2004 12/24/2019

San Diego Gas & Electric Company ER99-3426 YCA Yuma Cogen 50 CAISO Southwest 5/28/1994 5/27/2024

San Diego Gas & Electric Company ER99-3426 Otay 3 Covanta 3.75 CAISO Southwest 3/8/2007 3/7/2017 San Diego Gas & Electric Company ER99-3426 Rancho Penasquitos Hydro Facility 4.5 CAISO Southwest 1/23/2007 1/22/2017

San Diego Gas & Electric Company ER99-3426 CP Kelco 26.65 CAISO Southwest 10/7/2002 8/31/2016

San Diego Gas & Electric Company ER99-3426 Otay Landfill I 1.8 CAISO Southwest 5/1/2009 4/30/2019

San Diego Gas & Electric Company ER99-3426 Otay Landfill II 1.8 CAISO Southwest 7/1/2011 6/30/2031

San Diego Gas & Electric Company ER99-3426 YMCA Rancho Penasquitos 0.06 CAISO Southwest 1/1/1991 Evergreen

San Diego Gas & Electric Company ER99-3426 Badger Filtration Plant 1.49 CAISO Southwest 7/1/1987 6/30/2017

San Diego Gas & Electric Company ER99-3426 Olivenhain Municipal Water District 0.45 CAISO Southwest 8/27/2012 8/26/2037

San Diego Gas & Electric Company ER99-3426 San Francisco Peak Hydro Plant 0.35 CAISO Southwest 12/15/1985 Evergreen

San Diego Gas & Electric Company ER99-3426 Orange Grove Energy Center 99 CAISO Southwest 6/17/2010 6/16/2035

San Diego Gas & Electric Company ER99-3426 El Cajon Energy Center 47 CAISO Southwest 6/16/2010 12/31/2035

San Diego Gas & Electric Company ER99-3426 Escondido Energy Center 47 CAISO Southwest 1/25/2014 12/31/2039

San Diego Gas & Electric Company ER99-3426 Lake Hodges Pumped Storage 40 CAISO Southwest 8/27/2012 8/26/2037

San Diego Gas & Electric Company ER99-3426 Pacific Wind 140 CAISO Southwest 12/15/2003 12/14/2018

San Diego Gas & Electric Company ER99-3426 NRG Solar Borrego I 26 CAISO Southwest 2/12/2013 2/11/2038

San Diego Gas & Electric Company ER99-3426 Manzana Wind 100 CAISO Southwest 12/31/2012 12/30/2032

San Diego Gas & Electric Company ER99-3426 Imperial Solar Energy Center- South 130 CAISO Southwest 11/1/2013 10/31/2038

San Diego Gas & Electric Company ER99-3426 Centinela Solar 127 CAISO Southwest 8/1/2014 7/31/2034

San Diego Gas & Electric Company ER99-3426 Centinela Solar Expansion 45 CAISO Southwest 8/15/2014 8/14/2034

San Diego Gas & Electric Company ER99-3426 Campo Verde Solar 139 CAISO Southwest 10/25/2013 10/24/2033

San Diego Gas & Electric Company ER99-3426 Imperial Valley Solar I 200 CAISO Southwest 10/10/2013 10/9/2038

San Diego Gas & Electric Company ER99-3426 Cascade Solar 18.5 CAISO Southwest 12/24/2013 12/23/2033

San Diego Gas & Electric Company ER99-3426 Sol Orchard San Diego 20 LLC 2 CAISO Southwest 12/31/2013 12/30/2038

San Diego Gas & Electric Company ER99-3426 Sol Orchard San Diego 21 LLC 5 CAISO Southwest 12/31/2013 12/30/2038

San Diego Gas & Electric Company ER99-3426 Sol Orchard San Diego 22 LLC 2.5 CAISO Southwest 12/31/2013 12/30/2038

San Diego Gas & Electric Company ER99-3426 Sol Orchard San Diego 23 LLC 5 CAISO Southwest 12/31/2013 12/30/2038

San Diego Gas & Electric Company ER99-3426 Oak Creek , LLC 3.5 CAISO Southwest 1/26/2014 1/25/2024

San Diego Gas & Electric Company ER99-3426 SG2 Imperial Valley LLC 150 CAISO Southwest 11/25/2014 11/24/2039

San Diego Gas & Electric Company ER99-3426 Desert Green Solar Farm LLC 6.5 CAISO Southwest 11/26/2014 11/25/2039

San Diego Gas & Electric Company ER99-3426 Sycamore Energy 2 2.4 CAISO Southwest 3/30/2014 3/29/2024 San Diego Gas & Electric Company ER99-3426 CSolar West, LLC 150 CAISO Southwest 1/21/2016 12/31/2041

San Diego Gas & Electric Company ER99-3426 San Gorgonio Westwinds II, LLC 11.2 CAISO Southwest 1/20/2015 1/19/2025

San Diego Gas & Electric Company ER99-3426 Coram Energy LLC 7.5 CAISO Southwest 3/1/2011 2/28/2026

San Diego Gas & Electric Company ER99-3426 TallBear Seville LLC 20 CAISO Southwest 12/30/2015 12/29/2035

San Diego Gas & Electric Company ER99-3426 Maricopa West Solar PV LLC 20 CAISO Southwest 12/18/2015 12/17/2030

San Diego Gas & Electric Company ER99-3426 70SM1 8me LLC 19.99 CAISO Southwest 2/11/2016 2/10/2036 Asset Appendix: Transmission Assets/Natural Gas Assets

Location Filing Entity and its Energy Cite to Order Accepting Date Control Market/Balancing AffiliatesOATT Asset Name and Use Owned By Controlled By Transferred Authority Area Geographic Region Size (length and kV) End Note Number Less than 1 mile radial Alpaugh 50, LLC N/A Interconnection Facilities Alpaugh 50, LLC Alpaugh 50 LLC March 2013 CAISO Southwest transmission line/115 kV Less than 1 mile radial Alpaugh North, LLC N/A Interconnection Facilities Alpaugh North, LLC Alpaugh North, LLC N/A CAISO Southwest transmission line/115 kV Natural gas intrastate Bay Gas Storage Company, Southern Co. Services, Approximately Bay Gas Storage Company, Ltd. N/A storage system Bay Gas Storage Company, Ltd. Ltd. N/A Inc. Southeast 19.8 Bcf of storage capacity

Broken Bow Wind II, LLC N/A Interconnection Facilities Broken Bow Wind II, LLC Broken Bow Wind II, LLC N/A SPP SPP 115 kV switchyard facilities Less than 1 mile radial CED Corcoran Solar, LLC N/A Interconnection Facilities CED Corcoran Solar, LLC CED Corcoran Solar, LLC N/A CAISO Southwest transmission line/115 kV Less than 1 mile radial CED White River Solar, LLC N/A Interconnection Facilities CED White River Solar, LLC CED White River Solar, LLC N/A CAISO Southwest transmission line/115 kV

Cedar Creek II, LLC N/A Interconnection Facilities Cedar Creek II,LLC Cedar Creek II,LLC N/A PSCo Northwest 18 mile/230 kV Cedar Creek Wind Energy , Cedar Creek Wind Energy , Cedar Creek II, LLC N/A Interconnection Facilities Cedar Creek II,LLC Cedar Creek II,LLC N/A PSCo Northwest 72 miles/230 kV Copper Mountain Solar 1, Copper Mountain Solar 1, LLC N/A Interconnection Facilities Copper Mountain Solar 1, LLC LLC N/A CAISO SPP 0.15 mile/230 kV Copper Mountain Solar 2, Copper Mountain Solar 2, LLC N/A Interconnection Facilities Copper Mountain Solar 2, LLC LLC N/A CAISO Southwest 1.6 miles/230 kV Copper Mountain Solar 3, Copper Mountain Solar 3, LLC N/A Interconnection Facilities Copper Mountain Solar 3, LLC LLC N/A LADWP Southwest 6 miles/500 kV Copper Mountain Solar 4, Copper Mountain Solar 4, LLC N/A Interconnection Facilities Copper Mountain Solar 4, LLC LLC N/A CAISO Southwest 0.5 mile/230 kV Energia Sierra Juarez U.S. Energia Sierra Juarez U S. Energia Sierra Juarez Transmission, LLC N/A Interconnection Facilities Transmission, LLC U.S. Transmission, LLC N/A CAISO Southwest 0.6 mile/230kV Flat Ridge 2 Wind Energy Flat Ridge 2 Wind Energy LLC N/A Interconnection Facilities Flat Ridge 2 Wind Energy LLC LLC N/A SPP Southwest 42 miles/345 kV Fowler Ridge II Fowler Ridge II Fowler Ridge II Wind Farm LLC N/A Interconnection Facilities Wind Farm LLC Wind Farm LLC N/A PJM Northeast 15.5 miles/345 kV Mehoopany Wind Energy Mehoopany Wind Energy LLC N/A Interconnection Facilities Mehoopany Wind Energy LLC LLC N/A PJM Northwest 9 miles/115kV 4 miles/230kV 0.3 Mesquite Solar 1, LLC N/A Interconnection Facilities Mesquite Solar 1, LLC Mesquite Solar 1, LLC N/A CAISO Southwest mile/500kV 4 miles/230kV 0.3 Mesquite Solar 2, LLC N/A Interconnection Facilities Mesquite Solar 2, LLC Mesquite Solar 2, LLC N/A CAISO Southwest mile/500kV 4 miles/230kV 0.3 Mesquite Solar 3, LLC N/A Interconnection Facilities Mesquite Solar 3, LLC Mesquite Solar 3, LLC N/A CAISO Southwest mile/500kV Approximately 46 miles of Southern Co Services, intrastate pipeline and 0.8 Mobile Gas Service Corp. N/A Local distribution company Mobile Gas Service Corp. Mobile Gas Service Corp. N/A Inc. Southeast Bcf of storage capacity Approximately 2079 miles San Diego Gas & Electric 81 FERC ¶ 62,210 (1997); of transmission lines at up to Company (SDG&E) 77 FERC ¶ 61,204 (1996) Transmission system SDG&E CAISO 1998 CAISO Southwest 500 kV 4 miles/230kV 0.3 SEP II, LLC N/A Interconnection Facilities SEP II, LLC SEP II, LLC N/A CAISO Southwest mile/500kV Southern California Gas Company Natural gas intrastate Approximately 3130 miles (SoCalGas) and SDG&E N/A pipeline and gas storage SoCalGas and SDG&E SoCal Gas and SDG&E N/A CAISO Southwest of transmission pipeline and Natural gas intrastate Southern Co Services, Approximately 50 miles of Southern Gas Transmission N/A pipeline Southern Gas Transmission Southern Gas Transmission N/A Inc. Southeast intrastate pipeline

Termoelectrica U.S., LLC N/A Interconnection Facilities Termoelectrica U.S , LLC Termoelectnca U S., LLC N/A CAISO Southwest 6 miles/230kV Approximately 714 miles of Southern Co Services, distribution pipeline (no Willmut Gas & Oil Company N/A Local distribution company Willmut Gas & Oil Company Willmut Gas & Oil Company N/A Inc. Southeast intrastate gas transmission) Asset Appendix: End Notes

List End Note (Generation, Explanatory Note Number PPA or Transmission) 1 Generation Sempra Energy indirectly owns 50% of Alpaugh 50, LLC, the remainder of which is owned by a subsidiary of , Inc. (CEI). 2 Generation Sempra Energy indirectly owns 50% of Alpaugh North, LLC, the remainder of which is owned by a subsidiary of CEI. 3 Generation Sempra Energy indirectly owns 50% of Broken Bow Wind II, LLC, the remainder of which is owned by a subsidiary of CEI. 4 Generation Sempra Energy indirectly owns 50% of CED Corcoran Solar, LLC, the remainder of which is owned by a subsidiary of CEI. 5 Generation Sempra Energy indirectly owns 50% of CED White River Solar, LLC, the remainder of which is owned by a subsidiary of CEI. 6 Generation Sempra Energy indirectly owns 50% of Cedar Creek II, LLC, the remainder of which is owned by a subsidiary of BP Wind Energy , Inc. (BPWENA). 7 Generation Sempra Energy indirectly owns 50% of Copper Mountain Solar 2, LLC, the remainder of which is owned by a subsidiary of CEI. 8 Generation Sempra Energy indirectly owns 50% of Copper Mountain Solar 3, LLC, the remainder of which is owned by a subsidiary of CEI. 9 Generation The full output of the Energia Sierra Juarez, S. de R.L. de C.V facility is sold by Energia Sierra Juarez U.S., LLC to SDG&E pursuant to the approval granted in Docket No. ER12-1517-000. 10 Generation Sempra Energy indirectly owns 50% of Energia Sierra Juarez U.S., LLC and Energia Sierra Juarez, S. de R.L. de C.V , the remainder of which is owned by a subsidiary of InterGen, N.V. 11 Generation Sempra Energy indirectly owns 50% of Flat Ridge 2 Wind Energy LLC, the remainder of which is owned by a subsidiary of BPWENA. 12 Generation Sempra Energy indirectly owns 50% of Fowler Ridge II Wind Farm LLC, the remainder of which is owned by a subsidiary of BPWENA. 13 Generation Sempra Energy indirectly owns 50% of Mehoopany Wind Energy LLC, the remainder of which is owned by a subsidiary of BPWENA. 14 Generation Sempra Energy indirectly owns 50% of Mesquite Solar 1, LLC, the remainder of which is owned by a subsidiary of CEI.

ATTACHMENT C AFFIDAVIT OF JULIE SOLOMON

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION

Copper Mountain Solar 4, LLC ) Docket No. ER16-____-___ Mesquite Solar 2, LLC ) Docket No. ER16-____-___ Mesquite Solar 3, LLC ) Docket No. ER16-____-___

AFFIDAVIT OF JULIE R. SOLOMON

I. INTRODUCTION

My name is Julie R. Solomon. I am a Managing Director of Navigant Consulting, Inc. My business address is 1200 19th Street, N.W., Suite 700, Washington, DC 20036. A large portion of my consulting activities involves electric utility industry restructuring and the transition from regulation to competition. I have been involved extensively in consulting on market power issues concerning mergers, other asset transactions and market-based rate applications. I have filed a number of affidavits before the Federal Energy Regulatory Commission (the “Commission”) in connection with electric utility mergers, the purchase and sale of jurisdictional assets, applications for market-based rates, and triennial updates. Among these, I submitted an affidavit on behalf of affiliates of Sempra Energy and San Diego Gas & Electric Company (“SDG&E”) on December 30, 2015 in connection with their recent market-based rate triennial filing for the Southwest Region.1 My resume is attached as Exhibit JRS-1.

I have been asked by counsel for the affiliated above-captioned entities (“Sellers”) to perform an analysis of market power issues related to their market-based rate applications in compliance with the Commission’s guidelines contained in Order No. 697.2

1 Alpaugh North, LLC, et al., ER12-2499-014 et al., filed December 30, 2015 (“Sempra Triennial”). 2 Market-Based Rates for Wholesale Sales of Elec. Energy, Capacity and Ancillary Servs. by Pub. Utils., Order No. 697, FERC Stats. & Regs. ¶ 31,252, clarified, 121 FERC ¶ 61,260 (2007) (“Clarification Order”), order on reh’g and clarification, Order No. 697-A, FERC Stats. & Regs ¶ 31,268, order on reh’g and clarification, 124 FERC ¶ 61,055 (“Order No. 697-A Clarification Order”), order on reh’g and clarification, Order No. 697-B, FERC Stats. & Regs ¶ 31,285 (2008), order on reh’g and clarification, Order No. 697-C, FERC Stats. & Regs ¶ 31,291

1

Here I provide an evaluation of horizontal and vertical market power issues for the relevant market in which Applicants will own or control generation facilities, namely the California Independent System Operator Corporation (“CAISO”) market.

II. SUMMARY OF CONCLUSIONS

Based on the analyses discussed herein, I find that, under the Commission’s guidelines, Sellers satisfy the Commission’s horizontal market power screens in CAISO.

The analysis I have conducted is consistent with Order No. 697 and related orders. I have performed the two indicative horizontal market power screens required by the Commission, namely a pivotal supplier analysis based on the annual peak demand of the relevant market (“Pivotal Supplier Analysis”) and a market share analysis (“Market Share Analysis”) applied on a seasonal basis for a December 2013-November 2014 study period. Consistent with Order No. 697, I examined the only relevant default geographic market, namely CAISO, “the balancing authority area where the seller is physically located.” Although Sellers are affiliated with SDG&E, which is a transmission owner in CAISO, because CAISO is a Commission-approved RTO, markets first- tier to CAISO need not be analyzed.3

Sellers pass both the Pivotal Supplier Analysis and the Market Share Analysis in the relevant market, and, therefore, lack horizontal market power. Sellers also lack vertical market power. SDG&E’s transmission system is under the operational control of CAISO and is subject to the terms and conditions of CAISO’s Commission-approved tariff. The only other transmission facilities affiliated with Sellers consist of those necessary to connect generation to the grid.

Sellers and their affiliates cannot erect barriers to entry. SDG&E and its affiliate Southern California Gas Company (“SoCalGas”) own intrastate natural gas pipelines and local distribution facilities within the CAISO footprint that deliver natural gas to electric generation customers in

(2009), FERC Stats. & Regs. ¶ 31,305, order on clarification, 131 FERC ¶ 61,021 (2010), appeal docketed sub nom. Mont. Consumer Counsel v. FERC, Nos. 08-71827, et al. (9th Cir. filed May 1, 2008) (collectively, “Order No. 697”) (codified at 18 C.F.R. pt. 35). 3 Order No. 697 at P 231, n. 215.

2

southern California.4 These pipeline and distribution systems are operated in compliance with a code of conduct that provides for non-discriminatory access to all customers and restricts interactions between and among the utilities’ various system operations and merchant components and their affiliates. There are no other such affiliated assets in CAISO or the Southwest Region.

Neither Sellers nor their affiliates own or control sites for generation capacity development that can be used to create barriers to entry in any relevant market. Sellers and their affiliates have affirmed that they have not and will not erect barriers to entry.

There are no other issues that raise any relevant competitive concerns.

III. DESCRIPTION OF SELLERS

As described in more detail in the filing letter, each of the Sellers is a wholly-owned indirect subsidiary of Sempra Energy.

Copper Mountain Solar 4, LLC is constructing and will own and operate a 93.6 MW solar photovoltaic (PV) electric generation facility in Clark County, Nevada, which will be interconnected to the CAISO BAA. All of the facility’s output will be sold pursuant to a 20-year power purchase agreement (“PPA”) with Southern California Edison Company (“SCE”), which is an unaffiliated third-party. Deliveries under the SCE PPA do not commence until January 1, 2020. Since the facility is scheduled to be in service by Q3 2016, I have treated this generation as uncommitted for purposes of my analysis.

Mesquite Solar 2, LLC is constructing and will own and operate a 100.8 MW solar photovoltaic (PV) electric generation facility in Maricopa County, Arizona, which will be interconnected to the CAISO BAA. All of the output will be sold pursuant to a 20-year PPA with SCE.

Mesquite Solar 3, LLC is constructing and will own and operate a 154 MW solar photovoltaic (PV) electric generation facility in Maricopa County, Arizona, that will be in the

4 SoCalGas also owns intrastate natural gas pipelines and local distribution facilities within the Los Angeles Department of Water and Power (“LDWP”) footprint.

3

CAISO BAA. All of the output will be sold pursuant to a 20-year PPA with Western Area Power Administration, an unaffiliated third-party.

For purposes of my analysis, Exhibit JRS-2 details the relevant generation and purchases attributable to Sellers and their affiliates in CAISO and first-tier markets.

IV. HORIZONTAL MARKET POWER

My analysis is based on the analysis I did in connection with the Sempra Triennial (see note 1). The only changes were to reflect the additional Sellers’ generation subject to this market- based rate application and minor corrections to unit ratings based on the Sellers’ current Asset Appendix.5 I conservatively did not include a Simultaneous Import Limit (“SIL”) into CAISO. Also, while an affiliate of Sellers owns generation in the LDWP BAA, which is first-tier to CAISO, there is no affiliated uncommitted capacity in LDWP.

My analysis covers the December 2013-November 2014 study period, consistent with the Sempra Triennial and consistent with the Clarification Order, which indicates that the study period for new market-based rate applications “should rely on the same vintage data that were used in the triennial reviews filed by the transmission owners in their region within the past year.”6 However, recognizing that none of the recently-filed triennials for CAISO have been accepted or approved by the Commission, I also include a sensitivity analysis that relies on a previously-approved CAISO analysis for a December 2011-November 2012 study period.7 In both analyses, I conservatively assume a zero SIL.

5 Among the changes made here relative to the Sempra Triennial, I properly reflected the generation associated with the Escondido Energy Center as an SDG&E purchase, rather than owned generation; and I treated the generation pseudo-tied to CAISO as Long-Term Firm Purchases from inside the study area rather than from outside the study area. Also, I included in my analysis generation jointly-owned by Sempra affiliates and Consolidated Edison, Inc., but excluded generation owned solely by Consolidated Edison, Inc., which is not affiliated with Sellers. 6 Id., at 12(d). 7 NRG Power Marketing LLC, Notice of Non-Material Change In Status, Docket Nos. ER10-1569-007, et al. (filed Dec. 31, 2013), Exhibits NRG-6 and NRG-7, accepted, NRG Power Marketing LLC, Docket Nos. ER10-1569- 007, et al. (Apr. 22, 2014) (unreported).

4

Results of Analysis

Exhibits JRS-3 and JRS-4 present the results of the Pivotal Supplier Analysis and the Market Share Analysis in CAISO, respectively, for the December 2013-November 2014 study period. Exhibits JRS-3a and JRS-4a present the results of the Pivotal Supplier Analysis and the Market Share Analysis in CAISO, respectively, for the December 2011-November 2012 study period (see note 7). In both instances, the Sellers’ affiliated generation includes post-study period generation, including the planned generation of Sellers, and Sellers’ affiliated load from the December 2013-November 2014 period.

The indicative screens also are being provided in a workable spreadsheet format, as required under Order No. 816.8

CAISO

Pivotal Supplier Analysis. Sellers’ Installed Capacity is 2,832 MW. They have 3,240 MW of long-term firm purchases within CAISO. They have 770 MW of long-term firm sales. They are assigned no imports, because they have no affiliated capacity uncommitted capacity in first-tier markets. SDG&E’s average daily peak native load in the peak month was 3,340 MW.

Sellers’ Uncommitted Capacity is 1,962 MW. Net Uncommitted Supply is 21,261 MW. Because Sellers’ Uncommitted Capacity is less than the Net Uncommitted Supply, the Pivotal Supplier Analysis is passed. See Exhibit JRS-3.

Market Share Analysis. Sellers’ Installed Capacity ranges from 2,832 MW to 2,880 MW. They have 3,240 MW to 3,301 MW of long-term firm purchases within CAISO. They have 770 MW of long-term firm sales. They are assigned no imports, because they have no uncommitted affiliated capacity in first-tier markets. SDG&E’s average peak native load in the seasons ranges from 2,516 MW to 2,902 MW. Sellers’ Uncommitted Capacity ranges from 2,399 MW to 2,795 MW. Total Uncommitted Capacity ranges from 27,230 MW to 32,991 MW. Sellers’ market share ranges from 8.5 to 10.0 percent, which is conservative because I did not include any non-affiliate

8 Id. at P 80.

5

uncommitted capacity imports. Because Sellers’ market share is less than 20 percent in all seasons, the Market Share Analysis is passed. See Exhibit JRS-4.

Thus, on the basis of the Commission’s screens, Sellers do not have horizontal market power in CAISO.

Sensitivity Analysis

Pivotal Supplier Analysis. For the sensitivity analysis using a December 2011-November 2012 study period, Sellers’ Uncommitted Capacity is 1,962 MW. Net Uncommitted Supply is 9,905 MW. Because Sellers’ Uncommitted Capacity is less than the Net Uncommitted Supply, the Pivotal Supplier Analysis is passed. See Exhibit JRS-3a.

Market Share Analysis. For the sensitivity analysis using a December 2011-November 2012 study period, Sellers’ Uncommitted Capacity ranges from 2,399 MW to 2,795 MW. Total Uncommitted Capacity ranges from 18,292 MW to 22,312 MW. Sellers’ market share ranges from 11.9 to 14.8 percent, which is conservative because I did not include any non-affiliate uncommitted capacity imports and, further, because I included post-study period generation for Sellers and their affiliates but not for non-affiliates. See Exhibit JRS-4a.

Thus, on the basis of the Commission’s screens, approved for an earlier study period, Sellers do not have horizontal market power in CAISO.

CAISO Market Monitoring and Mitigation

The Commission has indicated that it will consider an existing market monitoring and mitigation regime already in place within organized markets that provide for mitigation of that market,9 and the Commission has found that market monitoring and mitigation rules are sufficient to address market power concerns in a Commission-approved RTO or ISO, including the CAISO

9 See Order No. 697 at P 240-42, P 290, and Order No. 697-A at P 111 (adopting a rebuttable presumption that existing Commission-approved RTO/ISO market monitoring and mitigation is sufficient to address any market power concerns).

6

market.10 The presence of the CAISO market monitoring and mitigation regime provides further confirmation that there are no horizontal market power concerns with regard to Sellers or their affiliates in the relevant market.

V. VERTICAL MARKET POWER

Transmission

SDG&E’s transmission systems is under the operational control of CAISO and is subject to the terms and conditions of CAISO’s Commission-approved tariff, which the Commission has deemed mitigates a seller’s transmission market power.11 The only other transmission facilities affiliated with Seller are described in more detail in the filing letter and consist of limited facilities necessary to connect generation to the grid.

Barriers to Entry

SDG&E and its affiliate SoCalGas own intrastate natural gas pipelines and local distribution facilities within the CAISO and LDWP footprints that deliver natural gas to electric generation customers in southern California. These pipeline and distribution systems are operated in compliance with a code of conduct that provides for non-discriminatory access to all customers and restricts interactions between and among the utilities’ various system operations and merchant components and their affiliates. These intrastate pipeline and local distribution facilities do not raise any concerns under the Commission’s guidelines governing entry barriers.12 Sellers do not own or control any other inputs into electricity production. There are no other entry barrier issues that raise any vertical market power concerns.

I understand that an affirmative statement on behalf of Sellers is included in their submission that they have not erected barriers to entry, including through land acquisitions, and will not erect barriers to entry.

10 NRG Power Marketing LLC, et al., 150 FERC ¶ 61,011 (2015) at P 9. See also, Desert Sunlight 250, LLC, et al., Docket Nos. ER13-1991-004 et al. at p. 2 (Letter Order dated October 30, 2015). 11 Order No. 697 at P 21. 12 Id., at P 22.

7

Based on these facts, Sellers have demonstrated a lack of vertical market power.

VI. CONCLUSION

On the basis of the foregoing analysis, Sellers clearly satisfy the Commission’s horizontal and vertical market power tests for market-based rate authority CAISO.

8

Exhibit JRS-1

Julie R. Solomon

Julie Solomon is a Managing Director at Navigant Consulting, Inc. in Julie R. Solomon Managing Director the Energy Practice’s Power Systems, Markets & Pricing group. She Navigant Consulting has more than 20 years of consulting experience, specializing in the Suite 700 areas of regulatory and utility economics, financial analysis and 1200 19th Street NW business valuation. Ms. Solomon has participated in analysis of Washington, DC 20036 Tel: 202-481-8492 proposed regulatory reforms, supply options and utility industry Fax: 202 973-2401 restructuring in the gas and electric industries. She also has advised [email protected] utility clients in corporate strategy and corporate restructuring, and consulted to legal counsel on a variety of litigation and regulatory Professional History matters, including antitrust litigation and contract disputes. She has • Managing Director, Navigant filed testimony in numerous proceedings before the Federal Energy Consulting - 2010-Present Regulatory Commission. Much of her current practice focuses on • Vice President, Charles River Associates - 2001-2010 regulatory and market power issues concerning mergers and • Senior Vice President, Putnam, acquisitions and compliance filings in the electricity market. Hayes and Bartlett, Inc. and PHB Hagler Bailly, Inc., Washington, DC - 1986-2000 » Advised clients in the electric and gas utility industry on • Economist, Economic Consulting competition issues, including the impact of mergers on competition. Services, Inc., Washington, DC - Directed a large number of analytic studies relating to obtaining 1979-1986 merger approval from regulatory authorities. • Economist, U.S. Department of Labor, Washington, DC - 1976-1979 » Advised clients in the electric utility industry on Education restructuring strategies, including potential mergers and acquisitions, • M.B.A. Finance, The Wharton School functional unbundling and cost savings. University of Pennsylvania • B.A. Economics, Connecticut College » Consulted in the electric and gas utility industries in a variety Testimony of regulatory and competition matters, including rate proceedings, • Written testimony provided in more prudence reviews, proposed regulatory reforms, analysis of supply than 150 regulatory proceedings options, privatization and restructuring.

» Advised utility and non-utility clients on many aspects of the competitive independent power industry, including strategic and financial consulting assignments.

» Consulted legal counsel on a variety of litigation matters, including the development of expert testimony on liability issues and the calculation of damages in a variety of industries.

» Provided strategic and economic analyses for clients in trade regulatory proceedings such as dumping and subsidies.

» Provided financial and business valuation analyses in a number of transactions, including fair market value for taxation purposes and valuation of family-owned businesses.

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Julie R. Solomon

Professional Experience

Electric and Gas Utilities Mergers and Acquisitions (Market Power and Competition Issues) » Advised clients and conducted analytic studies in connection with a large number of major electric and electric-gas mergers and asset transactions of regulated companies. Provided testimony to FERC for a number of these types of transactions.

» Advised clients and provided confidential pre-screening analyses for potential mergers and acquisitions.

» Conducted numerous analytic studies in connection with FERC market-based rate applications and compliance filings for electricity sellers. Provided testimony to FERC for a number of these types of transactions.

» Conducted numerous analytic studies in connection with FERC market-based rate applications and compliance filings for gas storage facilities. Provided testimony to FERC for a number of these types of transactions.

Utility Restructuring and Stranded Cost » Conducted analytic studies and provided litigation support in connection with state stranded cost proceedings in Ohio (Cincinnati Gas & Electric and Dayton Power & Light); West Virginia (Monongahela Power and Potomac Edison); Maryland (Potomac Edison) and Pennsylvania (West Penn Power).

» Provided analytic support evaluating the benefits of Public Service of Colorado’s proposed DC transmission line between Colorado and Kansas in support of a regulatory proceeding.

» Assisted in studies relating to privatization of the electricity industry in the United Kingdom, including development of a computer model to simulate electricity dispatch and project future prices, capacity needs and utility revenues under various scenarios. During temporary assignment to London office.

» Participated in antitrust litigation involving a utility and a cogenerator, including preparation of an expert report on liability and damage issues, preparation of expert witnesses for deposition, and assistance in preparation for depositions of opposing expert and in-house witnesses.

» Assisted in the valuation of the interests of several firms in various cogeneration projects for the purpose of combining these interests into a new entity or selling interests to third parties.

» Analyzed the financial feasibility and viability of a large number of cogeneration projects, assisted in the preparation of presentations and filings and presented testimony to the relevant public utility commission. Ms. Solomon also assisted in the development of a PC-based financial model to analyze various cogeneration projects.

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Julie R. Solomon

» Participated in a study to analyze the financial effects of a variety of restructuring options for a utility, including transfer and/or sale of assets and subsequent sale-leasebacks, and debt restructuring alternatives. In addition, she developed a PC-based financial model with applications to utility restructuring plans.

» Provided litigation support in major utility rate proceedings, including assisting in the preparation of responses to interrogatories and data requests, preparation of company and outside expert witnesses for deposition and hearings, and assistance in the deposition and cross- examination of intervenor witnesses.

» Participated in proceedings involving regulation of an oil pipeline, which included evaluating the business risks faced by the company.

Business Valuation » Participated in a valuation study involving the fair market value of a privately held company for purposes of an IRS proceeding.

» Participated in a valuation study in a divorce proceeding, where the assets being valued included a privately held business.

» Participated in two strategic engagements that developed business plans and identified potential acquisition candidates for the client.

» Provided advice to a client concerning the benefits and potential risks of developing a partnership with a competitor.

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Julie R. Solomon

Testimony or Expert Report Experience (2012-Mar 2015)

» Affidavit on behalf of Grande Prairie Wind, LLC, Docket No. ER16-1258, application for market- based rates, March 22, 2016. » Affidavit on behalf of Florida Power & Light Company, Docket No. ER16-628-001, application for market-based rates, March 21, 2016. » Affidavit on behalf of Essential Power, LLC, Docket No. ER16-82, application for authorization of disposition of jurisdictional facilities, February 29, 2016. » Affidavit on behalf of Florida, LLC, Docket No. ER16-69, application for authorization of disposition of jurisdictional facilities, February 10, 2016. » Affidavit on behalf of Nassau Energy, LLC, Docket No. ER16-806, application for market-based rates, January 21, 2016. » Affidavit on behalf of ECP MBR Sellers, Docket No. ER16-72, market-based rate triennial filing, December 31, 2015. » Affidavit on behalf of SDG&E Sellers, Docket No. ER14-474, market-based rate triennial filing, December 30, 2015. » Affidavit on behalf of New Harquahala Generating Company, Docket No. ER15-2013, market- based rate triennial filing, December 30, 2015. » Affidavit on behalf of SPP Entities, Docket No. ER14-474, market-based rate triennial filing, December 29, 2015. » Affidavit on behalf of Florida Power & Light Company, Docket No. ER16-628-000, application for market-based rates, December 23, 2015. » Affidavit on behalf of ENGIE Portfolio Management, LLC et al, Docket No. ER16-581 et al., application for market-based rates, December 18, 2015. » Affidavit on behalf of Marshall Wind Energy, LLC, Docket No. ER16-438, market-based rate triennial filing, December 18, 2015. » Affidavit on behalf of Marshall Wind Energy, LLC, Docket No. ER16-438, application for market- based rates, December 1, 2015. » Affidavit on behalf of Calpine Granite Holdings, LLC, Docket No. EC16-19, application for authorization of disposition of jurisdictional facilities, October 27, 2015. » Affidavit on behalf of Berkshire Hathaway, Inc., Docket No. EC16-10, application for authorization of disposition of jurisdictional facilities, October 8, 2015. » Affidavit on behalf of Panda Patriot, LLC, Docket No. ER15-2472, application for market-based rates, September 29, 2015. » Affidavit on behalf of Talen Energy Corporation, Docket No. EC14-112, Motion to Amend Mitigation Plan, September 25, 2015.

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Julie R. Solomon

» Affidavit on behalf of BHE MBR Sellers, Docket No. ER12-162, notification of change in status, September 25, 2015. » Affidavit on behalf of Talen Energy Corporation, Docket No. EC14-112, Motion to Amend Mitigation Plan, September 8, 2015. » Affidavit on behalf of BHE MBR Sellers, Docket No. ER13-521, response to Commission Staff Deficiency Letter and Request for Additional Information, September 24, 2015. » Affidavit on behalf of BHE MBR Sellers, Docket No. ER13-521, supplemental filing, September 8, 2015. » Affidavit on behalf of GDF SUEZ MBR Sellers, Docket No. ER14-1699, notice of change, August 31, 2015. » Affidavits on behalf of PacifiCorp and NV Energy, Docket No. ER15-2283, EIM analysis, July 27, 2015. » Affidavit on behalf of NorthWestern Corporation and Beethoven Wind, LLC, Docket No. EC15- 176, application for authorization of disposition of jurisdictional facilities, July 24 2015. » Affidavit on behalf of MidAmerican Energy Services, LLC, Docket No. ER15-2211, application for market-based rates, July 24, 2015. » Affidavit on behalf of The Empire District Electric Company, Docket No. ER10-2738, market- based rate triennial filing, June 30, 2015. » Affidavit on behalf of Exelon MBR Sellers, Docket No. ER10-2172 et al., market-based rate triennial filing, June 30, 2015. » Affidavit on behalf of Oklahoma Gas & Electric, Docket No. ER11-2105, market-based rate triennial filing, June 30, 2015. » Affidavit on behalf of LG&E Energy Marketing, Inc., Docket No. ER10-1714, market-based rate triennial filing, June 30, 2015. » Affidavit on behalf of Westar Energy, Inc., Docket No. ER10-2507, market-based rate triennial filing, June 29, 2015. » Affidavit on behalf of the Alabama Power Company, et al., Docket No. EL15-39, et al., response to show cause order, June 26, 2015. » Affidavit on behalf of Wisconsin Electric Power Company, Docket No. ER15-2019 market-based rate triennial filing, June 26, 2015. » Affidavit on behalf of Panda Liberty LLC, Docket No. ER15-1841, market-based rate application, June 2, 2015. » Affidavit on behalf of CCI U.S. Asset Holdings LLC, Docket No. EC15-108, application for authorization of disposition of jurisdictional facilities, March 31, 2015. » Affidavit on behalf of Florida Power & Light Company, Docket No. EC15-102, application for authorization of disposition of jurisdictional facilities, March 23, 2015.

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Julie R. Solomon

» Affidavit on behalf of Osprey Energy Center, LLC, Docket No. EC15-96, application for authorization of disposition of jurisdictional facilities, March 13, 2015. » Affidavit on behalf of the Berkshire Hathaway Energy MBR Sellers, Docket No. EL15-22, et al., response to show cause order, February 9, 2015. » Affidavit on behalf of ECP MBR Sellers, Docket No. ER13-2477, notice of change in status, January 20, 2015. » Affidavit on behalf of NorthWestern Corporation, Docket No. ER11-1859, market-based rate triennial filing, December 30, 2014. » Affidavit on behalf of Exelon, Docket No. ER12-2178, market-based rate triennial filing, December 23, 2014. » Affidavit on behalf of Inc., Docket No. ER14-1569, market-based rate triennial filing, December 23, 2014. » Affidavit on behalf of Northern Indiana Public Service, Docket No. ER10-1781, market-based rate triennial filing, December 23, 2014. » Affidavit on behalf of AES Corp, Docket No. ER10-3415, market-based rate triennial filing, December 22, 2014. » Affidavit on behalf of Ameren Illinois Company, Union Electric Company, and AmerenEnergy Medina Valley Cogen, L.L.C. Docket No. ER10-1119, ER10-1123, and ER10-1103 , market-based rate triennial filing, December 19, 2014. » Affidavit on behalf of Duke Energy MBR Sellers, Docket No. ER10-1325, market-based rate triennial filing, December 19, 2014. » Affidavit on behalf of Duke Energy Progress, Inc., Docket No. EC15-9, application for authorization of disposition of jurisdictional facilities, October 10, 2014. » Comments of Julie R. Solomon and Matthew E. Arenchild regarding NOPR on market-based rate authority, Docket No. RM14-14, September 23, 2014. » Affidavit on behalf of Dynegy Resource I, LLC, Docket No. EC14-141, application for authorization of disposition of jurisdictional facilities, September 11, 2014. » Affidavit on behalf of Dynegy Inc., Docket No. EC14-140, application for authorization of disposition of jurisdictional facilities, September 11, 2014. » Affidavit on behalf of Calpine Fore River Energy Center, LLC, Docket No. EC14-135, application for authorization of disposition of jurisdictional facilities, September 5, 2014. » Affidavit on behalf of Seiling Wind, LLC; Seiling Wind II, LLC; Mammoth Plains Wind Project, LLC; and Palo Duro Wind Energy, LLC, Docket No. ER14-2707-10, market-based rate applications, August 26, 2014. » Affidavit on behalf of ECP MBR Sellers, Docket No. ER10-2302, notification of change in status, August 18, 2014.

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Julie R. Solomon

» Affidavit on behalf of Millennium Power Partners, L.P., Docket No. ER10-3286, notification of change in status, August 4, 2014. » Affidavit on behalf of Granite Acquisition, Inc., Docket No. EC14-125, application for authorization of disposition of jurisdictional facilities, August 15, 2014. » » » » Testimony (Direct and Rebuttal), on behalf of Duke Energy Florida, Inc., Docket No. 140111-EI before the Florida Public Service Commission, Petition for Determination of Cost Effective Generation Alternative to Meet Need Prior to 2018, May 27, 2014 and August 5, 2014. » Affidavit on behalf of LS Power Development, LLC, Docket No. ER13-2318, notification of change in status, August 4, 2014. » Supplemental Affidavit on behalf of Powerex Corp., Docket No. ER11-2664, market-based rate triennial filing, July 25, 2014. » Supplemental Affidavit on behalf of Berkshire Hathaway Energy, Docket No. ER13-1266, notification of change in status, August 17, 2014. » Affidavit on behalf of RJS Power Holdings LLC and PPL Corporation, Docket No. EC14-112, application for authorization of disposition of jurisdictional facilities, July 15, 2014. » Affidavit on behalf of South Carolina Electric & Gas Company, Docket No. ER10-2498, market- based rate triennial filing, July 14, 2014. » Affidavit on behalf of Consumers Energy Company, Docket No. EC14-110, application for authorization of disposition of jurisdictional facilities, July 1, 2014. » Affidavit on behalf of J.P. Morgan Sellers, Docket No. ER10-2331, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of Duke Energy MBR Sellers, Docket No. ER10-1325, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of PPL Southeast Companies, Docket No. ER10-1511, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of NextEra Companies, Docket No. ER10-1852, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of NextEra Companies, Docket No. ER10-1838, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of Brookfield Companies, Docket No. ER11-2292, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of Calpine Corp, Docket No. ER10-1944, market-based rate triennial filing, June 30, 2014.

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Julie R. Solomon

» Affidavit on behalf of LS Northeast MBR Sellers, Docket No. ER13-2318, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of GDF SUEZ Northeast MBR Sellers, Docket No. ER10-2670, market-based rate triennial filing, June 30, 2014. » Affidavit on behalf of Safe Harbor Water Power Corp., Docket No. ER13-395, market-based rate triennial filing, June 27, 2014. » Affidavit on behalf of ECP MBR Sellers, Docket No. ER13-2477, market-based rate triennial filing, June 23, 2014. » Affidavit on behalf of Rockland Sellers, Docket No. ER12-1436, market-based rate triennial filing and notification of change in status, June 19, 2014. » Affidavit on behalf of Exelon Corp and Pepco Holdings, Inc., Docket No. EC14-96, application for authorization of disposition of jurisdictional facilities, May 30, 2014. » Affidavit on behalf of Nevada Power Co and Nevada Sun-Peak Limited Partnership, Docket No. EC14-83, application for authorization of disposition of jurisdictional facilities, May 2, 2014. » Affidavit on behalf of Nevada Power Co and Las Vegas Cogeneration Limited Partnership, Docket No. EC14-84, application for authorization of disposition of jurisdictional facilities, May 2, 2014. » Affidavit on behalf of NatGen Southeast Power LLC, Docket No. EC14-81, application for authorization of disposition of jurisdictional facilities, April 28, 2014. » Surrebuttal Testimony on Behalf of Commonwealth Edison Company, Illinois Commerce Commission, Application for a Certificate of Public Convenience and Necessity, No. 13-0657, April 9, 2014. » Affidavit on behalf of KMC Thermo, LLC, Docket No. ER14-1468, market-based rate application, March 12, 2014. » Affidavit on behalf of Trailstone Power, LLC, Docket No. ER14-1439, market-based rate application, March 6, 2014. » Affidavit on behalf of MACH Gen, LLC et al., Docket No. EC14-61, application for authorization of disposition of jurisdictional facilities, March 4, 2014. » Affidavit on behalf of MidAmerican Geothermal, LLC, et al., Docket No. EC14-59, application for authorization of disposition of jurisdictional facilities, February 20, 2014. » Affidavit on behalf of Green Mountain Power Corporation, Docket No. ER11-1933, market-based rate triennial filing, February 7, 2014. » Affidavit on behalf of NorthWestern Corporation, et al., Docket No. EC14-41, application for authorization of disposition of jurisdictional facilities, January 10, 2014. » Affidavit on behalf of NorthWestern Corporation, Docket No. ER11-1858, notification of change in status, January 10, 2014.

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Julie R. Solomon

» Affidavit on behalf of MidAmerican Energy, Docket No. ER10-2475, notification of change in status, January 2, 2014. » Affidavit on behalf of Powerex Corp., Docket No. ER11-2664, market-based rate triennial filing, December 31, 2013. » Affidavit on behalf of TransAlta, Docket No. ER10-2847, market-based rate triennial filing, December 31, 2013. » Affidavit on behalf of Duquesne Light Company, Docket No. ER10-1910, market-based rate triennial filing, December 31, 2013. » Affidavit on behalf of Constellation Energy Nuclear Group, Docket No. ER10-2179, market-based rate triennial filing, December 30, 2013. » Affidavit on behalf of Exelon, Docket No. ER12-2178, market-based rate triennial filing, December 30, 2013. » Affidavit on behalf of Dominion, Docket No. ER13-434, market-based rate triennial filing, December 30, 2013. » Affidavit on behalf of Brookfield Companies, Docket No. ER10-2895, market-based rate triennial filing, December 30, 2013. » Affidavit on behalf of Oklahoma Gas & Electric, Docket No. ER14-882, notification of change in status/tariff filing, December 30, 2013. » Affidavit on behalf of AES Corp, Docket No. ER10-3415, market-based rate triennial filing, December 26, 2013. » Affidavit on behalf of JPMorgan, Docket No. ER10-2331, market-based rate triennial filing, December 23, 2013. » Affidavit on behalf of Northeast Utilities, Docket No. ER10-1801, market-based rate triennial filing, December 20, 2013. » Affidavit on behalf of Iberdrola, Docket No. ER10-2822, market-based rate triennial filing, December 20, 2013. » Affidavit on behalf of PHI, Docket No. ER10-2997, market-based rate triennial filing, December 20, 2013. » Affidavit on behalf of Essential Power, Docket No. ER12-952, market-based rate triennial filing, December 20, 2013. » Affidavit on behalf of Empire District, Docket No. ER14-793, notification of change in status/tariff filing, December 20, 2013. » Affidavit on behalf of Westar Energy, Inc., Docket No. ER14-724, notification of change in status/tariff filing, December 19, 2013. » Affidavit on behalf of Alpha Gen Power, LLC, Docket No. ER14-630, market-based rate application, December 16, 2013.

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Julie R. Solomon

» Affidavit on behalf of Black Bear Hydro Partners, LLC, Docket No. EC14-28, application for authorization of disposition of jurisdictional facilities, November 14, 2013. » Affidavit on behalf of Sierra Pacific Power Company, Docket No. ER10-2474, notification of change in status, November 4, 2013. » Affidavit on behalf of ECP, Docket No. ER11-3859, notification of change in status, September 30, 2013. » Affidavit on behalf of Steele Flats Wind Project, LLC, Docket No. ER13-2474, market-based rate application, September 27, 2013. » Affidavit on behalf of Tuscola Wind II, LLC, Docket No. ER13-2458, market-based rate application, September 26, 2013. » Affidavit on behalf of Pheasant Run Wind, LLC and Pheasant Run Wind II, LLC, Docket Nos. ER13-2461-2, market-based rate applications, September 26, 2013. » Affidavit on behalf of TPF II and USPG Holdings, LLC, Docket No. EC13-154, application for authorization of disposition of jurisdictional facilities, September 25, 2013. » Affidavit on behalf of Seneca Generation, LLC et al., Docket Nos. ER13-2316-9, market-based rate applications, September 4, 2013. » Affidavit on behalf of Seneca Generation, LLC et al., Docket No. EC13-143, application for authorization of disposition of jurisdictional facilities, September 4, 2013. » Supplemental Affidavit on behalf of MidAmerican Energy (Silver Merger Sub, Inc.), Docket No. EC13-128, application for authorization of disposition of jurisdictional facilities, August 17, 2013. » Affidavit on behalf of Desert Sunlight 250, LLC and Desert Sunlight 300, LLC, Docket Nos. ER13- 1991-2, market-based rate applications, July 17, 2013. » Affidavit on behalf of MidAmerican Energy (Silver Merger Sub, Inc.), Docket No. EC13-128, application for authorization of disposition of jurisdictional facilities, July 12, 2013. » Affidavit on behalf of Calpine Southwest MBR Sellers, Docket No. ER10-1942, market-based rate triennial filing, July 1, 2013. » Affidavit on behalf of NextEra Companies, Docket No. ER10-1847, market-based rate triennial filing, July 1, 2013. » Affidavit on behalf of Wayzata Entities, Docket No. ER10-1777, market-based rate triennial filing, July 1, 2013. » Affidavit on behalf of AES MBR Affiliates, Docket No. ER10-3415, market-based rate triennial filing, July 1, 2013. » Affidavit on behalf of Sierra Pacific Power Company, et al. under ER10-2474, Docket No. ER10- 24744, market-based rate triennial filing, July 1, 2013. » Affidavit on behalf of NorthWestern Corporation, Docket No. ER11-1858, market-based rate triennial filing, July 1, 2013.

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Julie R. Solomon

» Affidavit on behalf of SGOC Southwest MBR Sellers, Docket No. ER10-2864, market-based rate triennial filing, June 28, 2013. » Affidavit on behalf of GWF Energy LLC, et al. Docket No. ER10-3301, market-based rate triennial filing, June 28, 2013. » Affidavit on behalf of NV Energy, Inc., application for approval of internal reorganization, Docket No. EC13-113, May 31, 2013. » Affidavit on behalf of Midwest Generation, LLC, Docket No. EC13-103, application for authorization of disposition of jurisdictional facilities, May 6, 2013. » Affidavit of behalf of Nevada Power Company (with Matthew E. Arenchild), Docket No. EC13- 96, application for authorization of disposition of jurisdictional facilities, April 17, 2013. » Affidavit of behalf of Dynegy Inc., Docket No. EC13-93, application for authorization of disposition of jurisdictional facilities, April 16, 2013. » Application on behalf of Florida Power & Light Company, Docket No. EC13-91, application for authorization of disposition of jurisdictional facilities, April 12, 2013. » Affidavit on behalf of Blythe Energy LLC, et al., Docket No. EC13-89, application for authorization of disposition of jurisdictional facilities, April 2, 2013. » Affidavit on behalf of New Harquahala Generating Company, LLC, Docket No. ER10-3310, market-based rate triennial filing, March 29, 2013. » Affidavit on behalf of Brayton Point, et al., Docket No. EC13-82, application for authorization of disposition of jurisdictional facilities, March 21, 2013. » Affidavit on behalf of Duke Energy Carolinas, LLC et al., Docket No. ER10-2566, et al., notice of change in status, January 29, 2013. » Affidavit on behalf of CCI Roseton LLC, Docket No. ER13-773, market-based rate application, January 17, 2013. » Affidavit on behalf of CCI Roseton LLC, Docket No. EC13-63, application for authorization of disposition of jurisdictional facilities, January 16, 2013. » Affidavit on behalf of Calpine Oneta Power, LLC, Docket No. ER11-3777, et al., market-based rate triennial filing, December 31, 2012. » Affidavit on behalf of NextEra Energy Companies, Docket No. ER12-569, et al., market-based rate triennial filing, December 27, 2012. » Affidavit on behalf of Nevada Power Company, Docket No. ER10-2474, market-based rate triennial filing, December 26, 2012. » Testimony on behalf of Powerex Corp re Puget Sound Energy, Inc v. All Jurisdictional Sellers of Energy & Capacity, Docket No. EL01-10, December 17, 2012. » Affidavit on behalf of AES Beaver Valley, LLC, Docket No. ER13-442, market-based rate application, November 21, 2012.

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Julie R. Solomon

» Affidavit on behalf of Broad River Energy LLC, et al., Docket No. EC13-42, application for authorization of disposition of jurisdictional facilities, November 16, 2012. » Affidavit on behalf of Westar Energy, Inc., Docket No. ER10-2507, notice of change in status, October 29, 2012. » Affidavit on behalf of Homer City Generation, L.P., Docket No. ER13-55, market-based rate application, October 9, 2012. » Affidavit on behalf of Homer City Generation, L.P., et al., Docket No. EC13-9, application for authorization of disposition of jurisdictional facilities, October 9, 2012. » Affidavit on behalf of GenOn Marsh Landing, LLC, Docket No. ER12-2545, market-based rate application, August 29, 2012. » Affidavit on behalf of High Mesa Energy, LLC, Docket No. ER12-2528, market-based rate application, August 27, 2012. » Affidavit on behalf of Brandon Shores LLC, et al., Docket No. EC12-137, application for authorization of disposition of jurisdictional facilities, August 23, 2012. » Affidavit on behalf of North Sky River Energy, LLC, Docket No. ER12-2444, market-based rate application, August 14, 2012. » Affidavit on behalf of Duke Energy Carolinas, LLC et al., Docket No. ER10-2566, et al., notice of change in status, August 1, 2012. » Affidavit on behalf of Canandaigua Power Partners, LLC et al., Docket No. ER10-2460, notice of change in status, July 16, 2012. » Affidavit on behalf of Limon Wind I and Limon Wind II, LLC, Docket Nos. ER12-2225 and -2226, market-based rate application, July 10, 2012. » Affidavit on behalf of Ensign Wind, LLC, Docket No. ER12-2227, market-based rate application, July 10, 2012. » Affidavit on behalf of NextEra Energy Companies, Docket No. ER10-1836, et al., market-based rate triennial filing, July 2, 2012. » Affidavit on behalf of Iberdrola Renewables, LLC, et al., Docket No. ER10-2994, et al., market- based rate triennial filing, June 29, 2012. » Affidavit on behalf of The Empire District Electric Company, Docket No. ER10-2738, market- based rate triennial filing, June 29, 2012. » Affidavit on behalf of Wisconsin Electric Power Company, Docket No. ER10-2563, market-based rate triennial filing, June 29, 2012. » Affidavit on behalf of Baltimore Gas and Electric Company, et al., Docket No. ER10-2172, et al., market-based rate triennial filing, June 29, 2012. » Affidavit on behalf of Westar Energy, Inc., Docket No. ER12-2124, market-based rate triennial filing, June 28, 2012.

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Julie R. Solomon

» Affidavit on behalf of Duke Energy Beckjord, LLC, et al., Docket No. ER12-1946 et al., market- based rate application, June 5, 2012. » Affidavit on behalf of Minco Wind III, LLC, Docket No. ER12-1880, market-based rate application, May 31, 2012. » Affidavit on behalf of Tuscola Bay Wind, LLC, Docket No. ER12-1660, market-based rate application, April 30, 2012. » Affidavit on behalf of Powerex Corp., Docket No. ER11-2664, notice of change in status, April 13, 2012. » Affidavit on behalf of Safe Harbor Water Power Corporation, Docket No. ER11-2780, notice of change in status, April 11, 2012. » Affidavit on behalf of Hot Spring Power Company, LLC, Docket No. EC12-87, application for authorization of disposition of jurisdictional facilities, March 28, 2012. » Affidavit on behalf of High Majestic Wind II, LLC, Docket No. ER12-1228, market-based rate application, March 8, 2012. » Affidavit on behalf of Duke Energy Indiana, Inc. et al., Docket No. ER10-2034 et al., notice of change in status, January 31, 2012. » Affidavit on behalf of CPV Cimarron Renewable Energy Company, LLC, Docket No. ER12-775, market-based rate application, January 6, 2012. » Affidavit on behalf of LS Power Marketing, LLC, et al., Docket No. ER10-2739, et al., market- based rate triennial filing, January 3, 2012. » Affidavit on behalf of Auburndale Peaker Energy Center, LLC, et al., Docket No. ER10-1945, et al., market-based rate triennial filing, January 3, 2012.

Page 13 Exhibit JRS-2

Generation Affiliated with Copper Mountain Solar 4, LLC; Mesquite Solar 2, LLC; and Mesquite Solar 3, LLC in CAISO and First-tier Markets

Ownership Asset Balancing Post- Owned Capacity Purchases/Sales Net Capacity Share Appendix Authority Study (MW) (MW) (MW) (%) (MW) Area Plant Name Period? Summer Winter Summer Winter Summer Winter Sempra Owned Generation CAISO Copper Mountain Solar 4  93.6 93.6 100% - - 93.6 93.6 93.6 CAISO Mesquite Solar 2  100.8 100.8 100% (100.8) (100.8) - - 100.8 CAISO Mesquite Solar 3  154.0 154.0 100% (154.0) (154.0) - - 154.0 CAISO Energia Sierra Juarez 1/  155.1 155.1 100% (155.1) (155.1) - - 155.1 CAISO Copper Mountain Solar 1 CM10 10.5 10.5 100% (10.5) (10.5) - - 10.5 CAISO Copper Mountain Solar 1 CM48 48.0 48.0 100% (48.0) (48.0) - - 48.0 CAISO Mesquite Solar 1 170.0 170.0 50% (85.0) (85.0) - - 170.0 CAISO TDM Units 1-3 680.9 680.9 100% - - 680.9 680.9 680.9 CAISO Copper Mountain Solar 2 2/  154.0 154.0 50% (77.0) (77.0) - - 155.3 CAISO Alpaugh 50 2/ 50.0 50.0 50% (25.0) (25.0) - - 50.0 CAISO Alpaugh North 2/ 20.0 20.0 50% (10.0) (10.0) - - 20.0 CAISO White River Solar 2/ 20.0 20.0 50% (10.0) (10.0) - - 20.0 CAISO Corcoran 2/ 20.0 20.0 50% (10.0) (10.0) - - 20.0 SDG&E Owned Generation CAISO Desert Star Energy Center 450.0 490.0 100% - - 450.0 490.0 495.0 CAISO Cuyamaca Peak Energy Plant 48.7 48.7 100% - - 48.7 48.7 48.9 CAISO Palomar Energy Center 562.0 570.0 100% - - 562.0 570.0 550.0 CAISO Miramar Energy Facility 94.0 94.0 100% - - 94.0 94.0 95.1

SDG&E QF Contracts CAISO Badger Filtration Plant 0% 1.0 0.5 1.0 0.5 1.5 CAISO El Cajon Energy 0% 43.5 48.9 43.5 48.9 47.0 CAISO Goal Line L.P. - - 0% 49.4 49.4 49.4 49.4 49.9 CAISO Kelco - - 0% 26.7 26.7 26.7 26.7 26.7 CAISO Lake Hodges Pumped Storage 0% 42.0 42.0 42.0 42.0 40.0 CAISO Naval Station QF (AEI) - - 0% 46.5 47.5 46.5 47.5 49.9 CAISO North Island QF - - 0% 34.5 34.5 34.5 34.5 34.5 CAISO NTC/MCRD Cogeneration - - 0% 23.0 23.0 23.0 23.0 23.0 CAISO NTC/MCRD Steam Turbine (AEI) - - 0% 2.6 2.6 2.6 2.6 2.6 CAISO Olivenhain Municipal 0% 0.5 0.5 0.5 0.5 0.5 CAISO Rancho Penasquitos Hydro - - 0% 4.5 4.5 4.5 4.5 4.5 CAISO YMCA Rancho Penasquitos 0% 0.1 0.1 0.1 0.1 0.1 SDG&E Renewables Contracts CAISO Campo Verde Solar - - 0% 139.0 139.0 139.0 139.0 139.0 CAISO Cascade Solar - - 0% 18.5 18.5 18.5 18.5 18.5 CAISO Catalina Solar - - 0% 110.0 110.0 110.0 110.0 110.0 CAISO Centinela Solar - - 0% 170.0 170.0 170.0 170.0 172.0 CAISO City of San Diego Point Loma - - 0% 4.8 4.8 4.8 4.8 4.8 CAISO Covanto-Delano 3/ - - 0% 35.0 48.5 35.0 48.5 - CAISO Csolar West  - - 0% 150.0 150.0 150.0 150.0 150.0 CAISO Desert Green Solar Farm - - 0% 6.3 6.3 6.3 6.3 6.5 CAISO Energia Sierra Juarez  - - 0% 155.1 155.1 155.1 155.1 155.1 CAISO Garnet Green Power - - 0% 16.5 16.5 16.5 16.5 16.5 CAISO Imperial Solar Energy Center South - - 0% 130.0 130.0 130.0 130.0 130.0 CAISO Imperial Valley Solar I - - 0% 199.9 199.9 199.9 199.9 200.0 CAISO Kumeyaay Wind Farm - - 0% 50.0 50.0 50.0 50.0 50.0 CAISO Manzana Wind - - 0% 100.0 100.0 100.0 100.0 100.0 CAISO Maricopa West  0% 20.0 20.0 20.0 20.0 20.0 CAISO MM Prima Deschecha (Capistrano) - - 0% 5.0 5.0 5.0 5.0 5.0 CAISO MM San Diego Miramar Landfill - - 0% 7.3 6.4 7.3 6.4 7.3

Page 1 of 3 Exhibit JRS-2

Ownership Asset Balancing Post- Owned Capacity Purchases/Sales Net Capacity Share Appendix Authority Study (MW) (MW) (MW) (%) (MW) Area Plant Name Period? Summer Winter Summer Winter Summer Winter CAISO Mountain Wind - - 0% 22.4 22.4 22.4 22.4 22.8 CAISO NRG Solar Borrego I - - 0% 26.0 26.0 26.0 26.0 26.0 CAISO Oak Creek Wind Power - - 0% 3.5 3.5 3.5 3.5 3.5 CAISO Oasis Wind - - 0% 60.0 60.0 60.0 60.0 60.0 CAISO Ocotillo Express Wind project - - 0% 265.4 265.4 265.4 265.4 265.0 CAISO Otay 3 Covanta - - 0% 3.2 3.2 3.2 3.2 3.8 CAISO Otay Landfill I - - 0% 1.7 1.7 1.7 1.7 1.8 CAISO Otay Landfill II 0% 1.7 1.7 1.7 1.7 1.8 CAISO Otay Landfill V - - 0% 1.5 1.5 1.5 1.5 1.6 CAISO Otay Landfill VI - - 0% 1.5 1.5 1.5 1.5 1.6 CAISO Pacific Wind - - 0% 140.0 140.0 140.0 140.0 140.0 CAISO Phoenix West Wind - - 0% 2.1 2.1 2.1 2.1 2.1 CAISO San Francisco Peak Hydro 0% 0.4 0.4 0.4 0.4 0.4 CAISO San Gorgonio Westwinds II - - 0% 11.2 11.2 11.2 11.2 11.2 CAISO San Marcos Landfill Bio-Gas - - 0% 1.0 1.0 1.0 1.0 1.0 CAISO Sol Orchard Sun San Diego 20 LLC - - 0% 2.0 2.0 2.0 2.0 2.0 CAISO Sol Orchard Sun San Diego 21 LLC - - 0% 5.0 5.0 5.0 5.0 5.0 CAISO Sol Orchard Sun San Diego 22 LLC - - 0% 2.5 2.5 2.5 2.5 2.5 CAISO Sol Orchard Sun San Diego 23 LLC - - 0% 5.0 5.0 5.0 5.0 5.0 CAISO Sycamore Energy - - 0% 2.4 2.4 2.4 2.4 2.4 CAISO Sycamore Landfill - - 0% 3.1 3.1 3.1 3.1 3.1 CAISO YCA Yuma Cogen (pseudo-tied to CAISO) - - 0% 52.2 53.9 52.2 53.9 50.0 CAISO Coram Energy 0% 7.5 7.5 7.5 7.5 7.5 CAISO 70SM1 8me LLC 0% 20.0 20.0 20.0 20.0 20.0 CAISO Arlington Valley Solar II (pseudo-tied to CAISO) - - 0% 125.4 125.4 125.4 125.4 127.0 CAISO SG2 Imperial Valley (pseudo-tied to CAISO) - - 0% 150.0 150.0 150.0 150.0 150.0 CAISO Seville (pseudo-tied to CAISO)  0% 20.0 20.0 20.0 20.0 20.0 Long-term and Tolling Contracts CAISO Escondido Energy Center 0% 45.0 49.9 45.0 49.9 47.0 CAISO Otay Mesa Energy Center - - 0% 571.0 607.1 571.0 607.1 603.0 CAISO Orange Grove Energy Center 0% 95.6 95.6 95.6 95.6 99.0 Subtotal, CAISO 2,554.5 2,615.7 5,169.0 5,278.2 Owned Share 2,614.5 2,662.5 Total Purchases 3,239.8 3,301.0 Total Sales (685.4) (685.4)

Other LDWP Copper Mountain Solar 3 2/  255.0 255.0 50% (127.5) (127.5) - - 255.0

Subtotal, LADWP 255.0 255.0 - -

Page 2 of 3 Exhibit JRS-2

Ownership Asset Balancing Post- Owned Capacity Purchases/Sales Net Capacity Share Appendix Authority Study (MW) (MW) (MW) (%) (MW) Area Plant Name Period? Summer Winter Summer Winter Summer Winter Generation Affiliated with Certain Indirect Subsidiaries of Sempra Energy (through Consolidated Edison, Inc.) CAISO Mesquite Solar 1 2/ 170.0 170.0 50% (85.0) (85.0) - - 170.0 CAISO Copper Mountain Solar 2 2/  154.0 154.0 50% (77.0) (77.0) - - 155.3 CAISO Alpaugh 50 2/ 50.0 50.0 50% (25.0) (25.0) - - 50.0 CAISO Alpaugh North 2/ 20.0 20.0 50% (10.0) (10.0) - - 20.0 CAISO White River Solar 2/ 20.0 20.0 50% (10.0) (10.0) - - 20.0 CAISO Corcoran 2/ 20.0 20.0 50% (10.0) (10.0) - - 20.0 Subtotal, CAISO (217.0) (217.0) - - Owned Share 217.0 217.0

Other LDWP Copper Mountain Solar 3 2/  255.0 255.0 50% (127.5) (127.5) - - 255.0

1/ Energia Sierra Juarez is 50% owned by a subsidiary of Sempra and 50% by a subsidiary of InterGen. Because InterGen does not have any other affiliated uncommitted capacity in the relevant markets, 100% of the project is assigned to Sempra. 2/ These projects are 50% owned by a subsidiary of Sempra and 50% by a subsidiary of Consolidated Edison, Inc. Each of the units is reported under both Sempra and CEI headings. 3/ Contract expired December 31, 2015.

Page 3 of 3 Exhibit JRS-3

Part I – Pivotal Supplier Analysis

Applicant-> Copper Mountain Solar 4, Mesquite Solar 2, Mesquite Solar 3 Market -> CAISO Data Year -> Dec 2013-Nov 2014 Row Generation Reference Seller and Affiliate Capacity (owned or controlled) A Installed Capacity (from inside the study area) 2,832 Exhibit JRS-2 A1 Remote Capacity (from outside the study area) - B Long-Term Firm Purchases (from inside the study area) 3,240 Exhibit JRS-2 B1 Long-Term Firm Purchases (from outside the study area) - C Long-Term Firm Sales (in and outside the study area) 770 Exhibit JRS-2 D Uncommitted Capacity Imports - All affiliated uncommitted capacity in first-tier markets

Non-Affiliate Capacity (owned or controlled) E Installed Capacity (from inside the study area) 60,515 Wkp - Generation Summary, less Row A less Row E1 E1 Remote Capacity (from outside the study area) 4,846 Wkp - Interchange Summary F Long-Term Firm Purchases (from inside the study area) 770 Included in Row E, plus Offset Row C F1 Long-Term Firm Purchases (from outside the study area) - Included in Row E1 G Long-Term Firm Sales (in and outside the study area) 3,240 Offset Rows B and B1 H Uncommitted Capacity Imports - Conservatively assumed to be zero

I Study Area Reserve Requirement 2,238 Wkp - Operating Reserves J Amount of Line I Attributable to Seller, if any - Conservatively assumed to be zero

K Total Uncommitted Supply (A+A1+B+B1+D+E+E1+F+F1+H-C-G-I-M) 28,649

Load L Balancing Authority Area Annual Peak Load 44,694 Wkp - Load Summary M Average Daily Peak Native Load in Peak Month 37,306 Wkp - Load Summary N Amount of Line M Attributable to Seller, if any 3,340 Wkp-714 Load Detailed Data*90%

O Wholesale Load (L-M) 7,388

P Net Uncommitted Supply (K-O) 21,261

Q Seller's Uncommitted Capacity (A+A1+B+B1+D-C-J-N) 1,962

Result of Pivotal Supplier Screen (Pass if Line Q < Line P) Pass (Fail if Line Q > Line P)

Total Imports (Sum D,H), as filed by Seller -> - % of SIL for Seller's imported capacity -> #DIV/0! % of SIL for Other's imported capacity -> #DIV/0!

SIL value -> - Assumed to be zero Do Total Imports exceed the SIL value? -> No Exhibit JRS-4 Part II – Market Share Analysis

Applicant-> Copper Mountain Solar 4, Mesquite Solar 2, Mesquite Solar 3 Study Area -> CAISO Data Year -> Dec 2013-Nov 2014 As filed by the Applicant/Seller Row Winter Spring Summer Fall Reference (MW) (MW) (MW) (MW) Seller and Affiliate Capacity (owned, controlled or under LT contract) A Installed Capacity (inside the study area) 2,880 2,832 2,832 2,832 Exhibit JRS-2 A1 Remote Capacity (from outside the study area) - - - - B Long-Term Firm Purchases (inside the study area) 3,301 3,240 3,240 3,240 Exhibit JRS-2 B1 Long-Term Firm Purchases (from outside the study area) - - - - C Long-Term Firm Sales (in and outside the study area) 770 770 770 770 Exhibit JRS-2 D Seasonal Average Planned Outages - - - - Conservatively assumed to be zero E Uncommitted Capacity Imports - - - - All affiliated uncommitted capacity in first-tier markets

Capacity Deductions F Average Peak Native Load in the Season 29,008 29,123 36,707 32,667 Wkp - Load Summary G Amount of Line F Attributable to Seller, if any 2,615 2,516 2,587 2,902 Wkp-714 Load Detailed Data*90% H Amount of Line F Attributable to Non-Affiliates, if any 26,393 26,607 34,120 29,765 I Study Area Reserve Requirement 1,740 1,747 2,202 1,960 Wkp - Operating Reserves J Amount of Line I Attributable to Seller, if any - - - - Conservatively assumed to be zero K Amount of Line I Attributable to Non-Affiliates, if any 1,740 1,747 2,202 1,960

Non-Affiliate Capacity (owned, controlled or under LT contract) L Installed Capacity (inside the study area) 60,273 59,868 60,200 60,515 Wkp - Generation Summary, less Row A less Row L1 L1 Remote Capacity (from outside the study area) 4,847 4,846 4,846 4,846 Wkp - Interchange Summary M Long-Term Firm Purchases (inside the study area) 770 770 770 770 Included in Row L, plus Offset Row C M1 Long-Term Firm Purchases (from outside the study area) - - - - Included in Row L1 N Long-Term Firm Sales (in and outside the study area) 3,301 3,240 3,240 3,240 Offset Rows B and B1 O Seasonal Average Planned Outages 4,260 6,672 1,739 6,043 Wkp - Summary Outages, Less Row D P Uncommitted Capacity Imports - - - - Conservatively assumed to be zero

Supply Calculation Q Total Competing Supply (L+L1+M+M1+P-H-K-N-O) 30,196 27,218 24,515 25,124 R Seller's Uncommitted Capacity (A+A1+B+B1+E-C-D-G-J) 2,795 2,785 2,715 2,399 S Total Seasonal Uncommitted Capacity (Q+R) 32,991 30,003 27,230 27,523

T Seller's Market Share (R÷S) 8.5% 9.3% 10.0% 8.7% Results (Pass if < 20% and Fail if ≥ 20%) Pass Pass Pass Pass

U Total Imports, as filed by Seller (E+P) 0 0 0 0 V SIL value* - - - - Assumed to be zero

Do Total Imports exceed SIL value? (is U<=V) No No No No Exhibit JRS-3a

Part I – Pivotal Supplier Analysis

Applicant-> Copper Mountain Solar 4, Mesquite Solar 2, Mesquite Solar 3 Market -> CAISO Data Year -> Dec 2011-Nov 2012 Row Generation Reference Seller and Affiliate Capacity (owned or controlled) A Installed Capacity (from inside the study area) 2,832 Exhibit JRS-2 A1 Remote Capacity (from outside the study area) - B Long-Term Firm Purchases (from inside the study area) 3,240 Exhibit JRS-2 B1 Long-Term Firm Purchases (from outside the study area) - Exhibit JRS-2 C Long-Term Firm Sales (in and outside the study area) 770 Exhibit JRS-2 D Uncommitted Capacity Imports - All affiliated uncommitted capacity in first-tier markets

Non-Affiliate Capacity (owned or controlled) E Installed Capacity (from inside the study area) 55,991 NRG CAISO PSA, less Row A less Row E1, plus new gen E1 Remote Capacity (from outside the study area) - Wkp - Interchange Summary F Long-Term Firm Purchases (from inside the study area) 770 Included in Row E, plus Offset Row C F1 Long-Term Firm Purchases (from outside the study area) - Included in Row E1 G Long-Term Firm Sales (in and outside the study area) 3,240 Offset Rows B and B1 H Uncommitted Capacity Imports - Conservatively assumed to be zero

I Study Area Reserve Requirement 2,557 NRG CAISO PSA J Amount of Line I Attributable to Seller, if any - Conservatively assumed to be zero

K Total Uncommitted Supply (A+A1+B+B1+D+E+E1+F+F1+H-C-G-I-M) 15,950

Load L Balancing Authority Area Annual Peak Load 46,360 NRG CAISO PSA M Average Daily Peak Native Load in Peak Month 40,315 NRG CAISO PSA N Amount of Line M Attributable to Seller, if any 3,340 Wkp-714 Load Detailed Data*90% (2013-14 load data)

O Wholesale Load (L-M) 6,045

P Net Uncommitted Supply (K-O) 9,905

Q Seller's Uncommitted Capacity (A+A1+B+B1+D-C-J-N) 1,962

Result of Pivotal Supplier Screen (Pass if Line Q < Line P) Pass (Fail if Line Q > Line P)

Total Imports (Sum D,H), as filed by Seller -> - % of SIL for Seller's imported capacity -> #DIV/0! % of SIL for Other's imported capacity -> #DIV/0!

SIL value -> - Assumed to be zero Do Total Imports exceed the SIL value? -> No Exhibit JRS-4a Part II – Market Share Analysis

Applicant-> Copper Mountain Solar 4, Mesquite Solar 2, Mesquite Solar 3 Study Area -> CAISO Data Year -> Dec 2011-Nov 2012 As filed by the Applicant/Seller Row Winter Spring Summer Fall Reference (MW) (MW) (MW) (MW) Seller and Affiliate Capacity (owned, controlled or under LT contract) A Installed Capacity (inside the study area) 2,880 2,832 2,832 2,832 Exhibit JRS-2 A1 Remote Capacity (from outside the study area) - - - - B Long-Term Firm Purchases (inside the study area) 3,301 3,240 3,240 3,240 Exhibit JRS-2 B1 Long-Term Firm Purchases (from outside the study area) - - - - C Long-Term Firm Sales (in and outside the study area) 770 770 770 770 Exhibit JRS-2 D Seasonal Average Planned Outages - - - - Conservatively assumed to be zero E Uncommitted Capacity Imports - - - - All affiliated uncommitted capacity in first-tier markets

Capacity Deductions F Average Peak Native Load in the Season 26,943 27,265 33,324 30,080 NRG CAISO MSA G Amount of Line F Attributable to Seller, if any 2,615 2,516 2,587 2,902 Wkp-714 Load Detailed Data*90% (2013-14 load data) H Amount of Line F Attributable to Non-Affiliates, if any 24,328 24,749 30,737 27,178 I Study Area Reserve Requirement 1,886 1,909 2,333 2,106 NRG CAISO MSA J Amount of Line I Attributable to Seller, if any - - - - Conservatively assumed to be zero K Amount of Line I Attributable to Non-Affiliates, if any 1,886 1,909 2,333 2,106

Non-Affiliate Capacity (owned, controlled or under LT contract) L Installed Capacity (inside the study area) 56,691 56,365 55,991 56,365 NRG CAISO MSA, less Row A less Row L1, plus new gen L1 Remote Capacity (from outside the study area) - - - - M Long-Term Firm Purchases (inside the study area) 770 770 770 770 Included in Row L, plus Offset Row C M1 Long-Term Firm Purchases (from outside the study area) - - - - Included in Row L1 N Long-Term Firm Sales (in and outside the study area) 3,301 3,240 3,240 3,240 Offset Rows B and B1 O Seasonal Average Planned Outages 8,430 9,181 4,874 6,926 NRG CAISO MSA P Uncommitted Capacity Imports - - - - Conservatively assumed to be zero

Supply Calculation Q Total Competing Supply (L+L1+M+M1+P-H-K-N-O) 19,516 18,057 15,577 17,686 R Seller's Uncommitted Capacity (A+A1+B+B1+E-C-D-G-J) 2,795 2,785 2,715 2,399 S Total Seasonal Uncommitted Capacity (Q+R) 22,312 20,842 18,292 20,085

T Seller's Market Share (R÷S) 12.5% 13.4% 14.8% 11.9% Results (Pass if < 20% and Fail if ≥ 20%) Pass Pass Pass Pass

U Total Imports, as filed by Seller (E+P) 0 0 0 0 V SIL value* - - - - Assumed to be zero

Do Total Imports exceed SIL value? (is U<=V) No No No No

ATTACHMENT D

MARKET-BASED RATE TARIFF

Mesquite Solar 2, LLC

Market-Based Rate Tariff

1. Availability: Mesquite Solar 2, LLC (“Seller”) makes electric energy, capacity and ancillary services available under this Tariff for wholesale sales to purchasers with whom Seller has contracted. Seller makes certain ancillary services available under this Tariff for wholesale sales to purchasers with whom Seller has contracted, subject to the limitations below. Specifically, Seller may sell the ancillary services specified below into the following markets:

California: Seller offers regulation service, spinning reserve service, and non-spinning reserve service to the California Independent System Operator Corporation (“CAISO”) and to others that are self-supplying ancillary services to the CAISO. Third Party Provider: Seller offers Regulation and Frequency Response Service, Reactive Supply and Voltage Control Service, Energy and Generator Imbalance Service, Operating Reserve-Spinning, and Operating Reserve-Supplemental. Sales will not include the following: (1) sales to an RTO or an ISO, i.e., where that entity has no ability to self-supply ancillary services but instead depends on third parties; and (2) sales to a traditional, franchised public utility affiliated with the third-party supplier, or sales where the underlying transmission service is on the system of the public utility affiliated with the third-party supplier. Sales of Operating Reserve-Spinning and Operating Reserve-Supplemental will not include sales to a public utility that is purchasing ancillary services to satisfy its own open access transmission tariff requirements to offer ancillary services to its own customers, except where the Commission has granted authorization. Sales of Regulation and Frequency Response Service and Reactive Supply and Voltage Control Service will not include sales to a public utility that is purchasing ancillary services to satisfy its own open access transmission tariff requirements to offer ancillary services to its own customers, except at rates not to exceed the buying public utility transmission provider’s OATT rate for the same service or where the Commission has granted authorization.

2. Applicability: This schedule is applicable to all sales of energy, capacity, or ancillary services by Seller not otherwise subject to a particular rate schedule or contract of Seller.

3. Rates: All sales hereunder shall be made at rates established by agreement between the purchaser and Seller.

4. Other Terms and Conditions: All other terms and conditions of sale shall be established by agreement between the purchaser and Seller.

5. Compliance with Commission Regulations: Seller shall comply with the provisions of 18 C.F.R. Part 35, Subpart H, as applicable, and with any conditions the Commission imposes in its orders concerning Seller’s market-based rate authority, including orders in which the Commission authorizes Seller to engage in affiliate sales under this Tariff or otherwise restricts or limits the Seller’s market-based rate authority. Failure to comply with the applicable provisions of 18 C.F.R. Part 35, Subpart H, and with any orders of the Commission concerning Seller’s market-based rate authority, will constitute a violation of this Tariff.

6. Limitations and Exemptions Regarding Market-Based Rate Authority: The Commission granted Seller in Mesquite Solar 2, LLC, Docket No. ER16-____- 000 et al. (2016) the following waivers and blanket authorization: (i) waiver of Parts 41, 101 (with the exception that waiver of the provisions of Part 101 that apply to hydropower licensees is not granted with respect to licensed hydropower projects), and 141 of the Commission’s regulations, except for Sections 141.14 and 141.15; (ii) waiver of Subparts B and C of Part 35 of the Commission’s regulations, except for Section 35.12(a), 35.13(b), 35.15 and 35.16; and (iii) blanket approval as to Section 204 of the FPA and Part 34 of the Commission’s regulations for all future issuances of securities and debt and assumptions of liabilities.

7. Seller Category: Seller is a Category 2 Seller, as defined in 18 C.F.R. § 35.36(a), in the Southwest Region. Seller is a Category 1 Seller, as defined in 18 C.F.R. § 35.36(a), in the Northeast, Southeast, Central, Northwest, and Southwest Power Pool Regions.

8. Effective Date: This Tariff is effective on such date set by the Commission.