What is the Market Price Referent (MPR)?
The market price referent (MPR) represents the cost of a long-term contract with a combined cycle gas turbine facility, levelized into a cent-per-kWh value. The MPR also represents a dividing line for bids submitted to the investor owned utilities for an RPS contract: • Bid prices at or below the MPR may be accepted as per se reasonable by the CPUC. • Bids priced above the MPR may face a stronger burden of proof in justifying the reasonableness of their contract price. • Public Goods Charge funds have been made available to each IOU, on a pro rata basis, to cover the above MPR funds (AMFs) of the contract price of CPUC approved contracts. DRA Position on MPR DRA recommends that the methodology for determining the 2008 MPR be modified to incorporate the rising costs of materials and the escalation of construction costs for combined cycle gas turbines (CCGT) in recent years. Therefore, DRA no longer supports the continuing use of only the public records • 2008 Market Price Referent (MPR)
