ALJ/AES/rbg Date of Issuance 9/21/2007

Decision 07-09-024 September 20, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Implement the California Renewables Portfolio Standard Program.

Rulemaking 04-04-026 (Filed April 22, 2004)

OPINION ON PETITION FOR MODIFICATION OF DECISION 05-12-042

Summary

We grant the request of the California Wind Energy Association (CalWEA) and the Green Power Institute (GPI) that the 2007 market price referent (MPR) developed for the renewables portfolio standard (RPS) program include an additional element in the MPR to account for the costs of the emission of greenhouse gases (GHG adder). Although we deny at this time their request to modify the MPR methodology set forth in Decision (D.) 05-12-042 to include a GHG adder for 2008 and later years using the specific approach adopted here, we intend to examine the MPR for 2008 and later years to determine what changes should be made to the MPR methodology, including how the costs of GHG emissions should be reflected in the MPR for 2008 and later years.