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COM/MP1/JF2/acb Mailed 11/21/05
Decision 05-11-025 November 18, 2005
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Implement the California Renewables Portfolio Standard Program.
(Filed April 22, 2004)
OPINION ON PARTICIPATION OF ENERGY SERVICE PROVIDERS, COMMUNITY CHOICE AGGREGATORS,
AND SMALL AND MULTI-JURISDICTIONAL UTILITIES
IN THE RENEWABLES PORTFOLIO STANDARDS PROGRAM
In this decision we set forth the basic parameters for the participation of Energy Service Providers (ESPs), Community Choice Aggregators (CCAs), and small and multi-jurisdictional utilities in the Renewables Portfolio Standards (RPS) program.
We find that the Commission has the discretion under the RPS statute to determine the manner in which ESPs, CCAs, and small and multi-jurisdictional utilities participate in and comply with the RPS requirements. We require all entities to comply with the fundamental aspects of the RPS program, including procuring 20% of their retail sales from renewable energy sources by 2010, increasing their procurement of renewable energy by at least 1% of their retail sales per year, and reporting to the Commission on their compliance with these requirements.
In addition, we state our intent to explore policy options for allowing procurement entities, if any proposals are developed, and also allowing unbundled renewable energy credits (RECs) to count for RPS compliance purposes in the future. We determine that the current RPS law allows the Commission to explore utilizing unbundled and tradeable RECs for RPS compliance by all entities, including ESPs, CCAs, large utilities, and small and multi-jurisdictional utilities.
Finally, we also signal openness to and request comments on how short-term (less than ten years) contracting could be utilized by ESPs, CCAs, and small and multi-jurisdictional utilities, to satisfy RPS requirements. The policy options outlined in this decision will be further explored and refined in an implementation decision(s) to follow, on a timetable set by the Assigned Commissioner, Assigned ALJ, and Energy Division staff.