Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Anne E. Simon and Burton W. Mattson are the assigned ALJs in these proceedings.
1. The method of calculating APT set out in D.06-10-050 is consistent with statutory requirements and efficient RPS administration for all years of RPS obligation prior to 2010.
2. The method of calculating APT set out in D.06-10-050 does not provide appropriate guidance for calculating APT in 2010 and any later years in which APT is 20% of retail sales.
3. The APT calculation method set out in D.06-10-050 can be readily revised to provide appropriate guidance for calculating APT in 2010 and any later years in which APT is 20% of retail sales.
4. The APT calculation method for multi-jurisdictional utilities set out in D.08-05-029 can be readily revised to provide appropriate guidance for calculating APT in 2010 and any later years in which APT is 20% of the California portion of their retail sales.
1. Solely for purposes of considering the two Petitions for Modification, one decision on the Petitions should be issued, to be docketed in both R.06-02-012 and R.08-08-009 (the successor to R.06-05-027).
2. The calculation of the APT for RPS compliance should be revised for the year 2010 and any subsequent years in which APT is required to be 20% of an LSE's retail sales.
3. For the year 2010 and any subsequent years in which APT is required to be 20% of an LSE's retail sales, APT should be calculated based on the LSE's current year's retail sales; e.g., APT for 2010 would be 20% of 2010 retail sales, and APT for 2011 would be 20% of 2011 retail sales.
4. D.06-10-050, D.07-07-025, and D.08-05-029 should be modified to reflect the revised APT calculation for the year 2010 and any subsequent years in which APT is required to be 20% of an LSE's retail sales.
5. D.06-10-019 does not require modification because the relevant modification to the APT calculation should be made in D.07-07-025.
6. The Director of Energy Division should revise the RPS reporting protocols and documents to incorporate the revised APT calculation.
ORDER
IT IS ORDERED that:
1. The Joint Petitioners' Petition for Modification of Commission Decisions 06-10-019 and 06-10-050, filed May 1, 2009, is granted in part.
2. Decision 06-10-050 shall be modified as follows:
a. The second paragraph of Section 6.5 shall be deleted and replaced with:
The RPS legislation requires that we establish an APT, and that it grow by at least 1% per year. The APT is a target. It is initially made up of a baseline amount calculated as a percentage of retail sale procured from renewable energy. (§ 399.15.) This is the only time actual procured energy is used in relationship to the targets. Going forward, for all years prior to 2010 (when the target becomes 20% of retail sales), the APT is made up of the prior year's APT plus an IPT. The required minimum annual growth reflected in the IPT is relative to actual retail sales per year. (§ 399.15(b)(1).) Neither the APT nor IPT are related to actual renewable procurement (other than once, when creating the baseline). Rather, each is a target related to retail sales. Actual procurement is measured against targets to assess progress. Actual procurement does not reset the targets.
b. The third line of page 7 of Attachment A shall be modified by deleting the formula "APT = 20% of prior year total retail sales," and replacing it with the formula, "APT = 20% of current year total retail sales."
3. Decision 07-07-025 shall be modified by deleting Appendix B and replacing it with a new Appendix B. The new Appendix B of Decision 07-07-025 is set out in Attachment 1 to this decision.
4. Decision 08-05-029 shall be modified as follows:
a. The first sentence on page 10 shall be deleted and replaced with: "For each succeeding year until 2010, when the goal is 20%, as set out in D.06-10-050, the APT formula is:
APT = Prior year's APT + 1% of prior year's retail sales.
For 2010 and any later years in which the APT is 20% of retail sales, the APT formula is:
APT = 20% of current year's retail sales."
b. The last two lines of section 3.2.1 shall be deleted and replaced with:
APT in succeeding years prior to 2010 = Prior year's APT + 1% of prior year's California retail sales.
APT in 2010 and any later years in which the APT is 20% of retail sales = 20% of current year's retail sales.
5. The Director of Energy Division is authorized to revise the California renewables portfolio standard reporting protocols and documents to incorporate the revised annual procurement target calculation.
This order is effective today.
Dated November 20, 2009, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
ATTACHMENT 1
(Modified Appendix B to D.07-07-025)
APPENDIX B
SAMPLE ESP / CCA BASELINE AND ANNUAL PROCUREMENT TARGET (APT) CALCULATIONS
1. For years prior to 2010:
# |
MWh |
2001 |
2005 |
2006 |
2007 |
2008 |
Calculation |
A |
Total California Retail Sales |
18,000 |
20,000 |
21,000 |
20,500 |
23,000 |
|
B |
Total RPS-Eligible Procurement |
450 |
N/A |
N/A |
N/A |
N/A |
As verified by CEC |
C |
2001 RPS percentage |
2.5% |
N/A |
N/A |
N/A |
N/A |
Line B / Line A |
D |
2005 Baseline Procurement Amount15 |
N/A |
500 |
N/A |
N/A |
N/A |
2001 renewable percentage * 2005 total retail sales |
E |
Incremental Procurement Target (IPT) |
N/A |
N/A |
200 |
210 |
205 |
1% * Prior Year Line A |
F |
Annual Procurement Target (APT) |
N/A |
N/A |
700 |
910 |
1115 |
Line E + Prior Year Line F16 |
2. For 2010 and any later years in which APT is 20% of retail sales:
APT = 20% of current year retail sales.
(END OF APPENDIX B)
(END OF ATTACHMENT 1)
15 For any ESP or CCA not currently operating in California, the baseline procurement amount will be calculated as: total RPS-eligible procurement in first calendar year of operation.
16 Because there is no APT for ESPs in 2005, the APT in 2006 is calculated by adding the 2006 IPT to the 2005 baseline procurement amount.
