2. Background
The first substantial procurement of non-utility generated electricity in California began in 1979 (Decision (D.) 91109, 3 CPUC2d 1), and resulted in the operation of approximately 11,000 megawatts (MW) of new cogeneration and small power production powerplants, with about 5,000 MW using renewable fuels. Senate Bill (SB) 1078 established goals for seeking additional renewable procurement via the California Renewables Portfolio Standard (RPS) Program effective January 1, 2003.1
Several RPS procurement plans (Plans) have been reviewed by the Commission, and implemented under the RPS Program by Southern California Edison Company (SCE), Pacific Gas and Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E) (collectively the investor-owned utilities or IOUs). On May 29, 2008, we completed the specification of obligations under the RPS Program for Sierra Pacific Power Company (Sierra, now California Pacific Electric Company, LLC or CalPeco)2 and PacifiCorp (collectively the multi-jurisdictional utilities or MJUs). This includes the filing by an MJU of a biennial Integrated Resource Plan (IRP) in some years (along with limited supplemental information), and a more comprehensive Supplement to its IRP in other years. (D.08-05-029.)
By Amended Scoping Memo on November 2, 2009, the assigned Commissioner established the scope and schedule for Commission consideration of the next RPS Procurement Plans and IRP Supplements. The Amended Scoping Memo suggested a streamlined approach for presentation and consideration of those documents, consistent with the absence of legislation or Commission-identified issues requiring a comprehensive new Plan. The Amended Scoping Memo also encouraged the procuring utilities to simplify, harmonize, and seek uniformity in processes and documents. It also provided for the filing in some cases of a more comprehensive Plan.
On December 18, 2009, RPS Procurement Plans were filed by the IOUs.3 Also on December 18, 2009, PacifiCorp filed a Supplement to its 2008 IRP, and Sierra filed a Supplement reporting no significant changes from its accepted 2009 Supplement to its 2007 IRP. On January 19, 2010, comments were filed by the Commission's Division of Ratepayer Advocates (DRA) and jointly by the California Wind Energy Association and Large-Scale Solar Association (CalWEA/LSA). On January 26, 2010, reply comments were filed by SCE, PG&E, SDG&E, Center for Energy Efficiency and Renewable Technologies (CEERT) and The Utility Reform Network (TURN).
Transmission Ranking Cost Reports (TRCRs) are also a required part of the Plan review process. On January 20, 2010, draft TRCRs were filed. Comments were due by February 10, 2010. No comments were filed.
On February 17, 2010, PG&E and SDG&E filed updated Plans.4 On April 9, 2010, PG&E, SCE, and SDG&E filed amended Plans with updates related to tradable renewable energy credits (TRECs).5 On April 23, 2010, TURN, DRA, CalWEA/LSA, and Solar Alliance (SA) filed comments. On May 3, 2010, DRA, SDG&E, SCE, PG&E, and CalWEA/LSA filed reply comments.
On June 6, 2010, PG&E filed an amended Plan with updates related to its solar photovoltaic (PV) program.6 On June 18, 2010, DRA, CalWEA/LSA and L. Jan Reid (Reid) filed comments. On June 25, 2010, PG&E filed reply comments.
On June 12, 2010, SCE amended its Plan to address economic curtailment. This amendment followed an all-party meeting regarding curtailment provisions in RPS Plans held by the assigned Commissioner on May 6, 2010. On July 2, 2010, CalWEA/LSA and Independent Energy Producers Association (IEP) filed responses to SCE's amended Plan. On July 12, 2010, SCE filed a reply.
On August 24, 2010, IEP and CalWEA filed late comments regarding one item in SCE's Plan.7 On September 8, 2010, SCE filed timely reply comments, and on September 22, 2010, CEERT filed late reply comments.8
Motions for hearing were due January 28, 2010, or later as appropriate. No motions for hearing were filed. No hearing was held.
1 Stats. 2002, ch. 516, sec. 3, codified as Pub. Util. Code §§ 399.11, et seq., as amended by (or related to), among others, Assembly Bill (AB) 1969 (Stats. 2006, ch. 731); SB 107 (Stats. 2006, ch. 464); SB 380 (Stats. 2008, ch. 544); SB 32 (Stats. 2009, ch. 328); SB 695 (Stats. 2009, ch. 337). All subsequent code section references are to the Public Utilities Code unless noted otherwise. The RPS Program and code sections referenced herein are those effective on the date of this order. Recently adopted SB 2 (2011-12 First Extraordinary Session, Stats. 2011, ch. 1) further changes the RPS Program and code sections, but those changes do not necessitate a delay in the solicitation authorized by this order.
2 See D.10-10-017 (conditionally approves the transfer of the California electric distribution system facilities and the Kings Beach Generating Station of Sierra Pacific Power Company to CalPeco). CalPeco may file a pleading if it is no longer an MJU (e.g., no longer prepares biennial IRPs related to multiple jurisdictions) but seeks to be subject to other California RPS requirements (e.g., either those of a large IOU, such as SDG&E, or a small IOU, such as Mountain Utilities).
3 We refer hereinafter to these Plans as 2011 Plans (even though they were originally filed as 2010 draft Plans) since this decision is reached in 2011, and the solicitation which will result from today's order will be in 2011.
4 Consistent with the Amended Scoping Memo, motions were filed to permit filing of the updates. Responses and replies to these and subsequent motions to update Plans were filed over the course of the proceeding. The motions were granted by Administrative Law Judge (ALJ) Ruling on February 9, 2011. The responses and replies largely address substantive (not procedural) issues, and, to the extent necessary and appropriate, the substantive issues are addressed in this decision.
5 On March 11, 2010, the Commission authorized the use of TRECs, and ordered utilities to file and serve amendments to their 2010 RPS Plans to address the use of TRECs. (See D.10-03-021 Ordering Paragraphs 1, 2, 33.) A schedule for doing so was set by ALJ Ruling dated March 19, 2010. The IOUs were directed to file updates, and MJUs were directed to file either an update or a statement that there would be no change. On April 9, 2010, Sierra and PacifiCorp each filed a notice of no change to their IRPs or Supplements based on TRECs. On May 6, 2010, the Commission stayed D.10-03-021. (See D.10-05-018.) On January 13, 2011, the Commission made limited modifications to, and lifted the stay of, D.10-03-021. (See D.11-01-025.)
6 On April 22, 2010, the Commission authorized PG&E's solar PV Program. (See D.10-04-052.) By ruling dated May 12, 2010, PG&E was directed to further update its Plan.
7 The one item is SCE's proposal to require that seller's interconnection application provide for full deliverability. This item is described and discussed in Chapter 4.
8 On September 15, 2010, the ALJ authorized this late filing.
