Pacific Gas & Electric aims to rid itself of a $911 million deal with Spanish wind developer Iberdrola. The developer agreed to build the 246 MW Manzana facility, which would be owned and operated by the utility. PG&E Jan. 20 sought to withdraw its application seeking California Public Utilities Commission approval for the facility. A tentative regulatory ruling rejects rolling the wind project\u2019s costs into rates, concluding the contract was \u201cnot cost competitive\u201d and posed \u201cunacceptable risk to ratepayers.\u201d Sources said the arrangement was a \u201csweetheart deal\u201d\u2014and one elusive to most independent energy producers. Iberdrola terminated the deal, according to PG&E\u2019s Jan. 20 filing to the Securities and Exchange Commission. The filing adds that it is \u201cuncertain whether or when the CPUC will grant the utility\u2019s request to withdraw the application.\u201d The withdrawal request was on the CPUC\u2019s Jan. 27 consent calendar, but pulled off of it. PG&E planned to own and operate the wind project built by Iderdrola at a cost of about $3.7 million\/MW. That is considerably higher than the $2.3 million\/MW average cost of wind projects, estimated by E3. The proposed CPUC ruling by administrative law judge Mariam Ebke also casts doubt on whether the project output is needed for PG&E to meet its 20 percent renewable mandate and whether it would be built on time, because of likely delays in building new transmission. She further criticized the project deal for allowing cost overruns. It would \u201csubject the ratepayers to unacceptable risks due to potential cost increases resulting from project under-performance, less than forecasted project life, and any delays which might occur concerning transmission upgrades and commercial online date. As a proposed utility-owned generation project, ratepayers would pay a lump sum cost rather than a performance based cost for the Manzana Wind Project,\u201d Ebke stated.