7. Additional Resources
We are implementing an RPS Program that requires electrical corporations to undertake reasonable actions in pursuit of reaching and maintaining a renewables resource base with a target equal to 20% of retail sales by 2010, and a further goal of 33% by 2020. Upon SB 1X 2 becoming effective, the statutory requirement becomes 33% by 2020. These percentages involve a very large quantity of resources.
Our implementation of this program must be responsive to the needs and interests of all stakeholders. This includes the needs of electrical corporations and developers as they pursue these targets and goals, while balancing complimentary and competing interests of many other stakeholders, including ratepayers, other government agencies, and the public. Our implementation and administration can be complicated, and often involves many significant technical details. It is important that we accomplish our mission efficiently, effectively, and timely so that electrical corporations have a reasonable opportunity to reach statutory requirements regarding both renewable resources and environmental goals. At the same time we must satisfy our basic responsibilities to see that the electricity system is safe and reliable at just and reasonable rates charged to ratepayers at the lowest reasonable overall total cost while meeting other necessary goals (e.g., reasonable resource diversity).
We can best achieve these goals if we authorize the Executive Director to hire and manage a contractor, or contractors, to provide technical and other support to assist staff address some or all the following areas, with reimbursement from the utilities.64 The tasks are:
1. refining and calculating the market price referent (MPR) for existing fixed-price feed-in tariffs (§ 399.20);
2. updating renewable resource assessments and identifications of areas for renewable energy development;
3. evaluating impacts of achieving a 33% renewables portfolio to implement resource planning standards (e.g., updating the 33% RPS ranking methodology and updating factors in the 33% RPS calculator related to the viability, risk, timing and integration of RPS generation and transmission projects); and
4. others as necessary to promote RPS Program goals (e.g., analyzing the cost of renewables integration; developing long-term RPS resource plan; analyzing distributed generation market potential and integration; analyzing optimal approaches to cost containment and risk management; assessing emerging renewables markets).
Beginning with the 2010-11 fiscal year, we will authorize the expenditure of up to, but no more than, $600,000 annually for up to four years.65 The Executive Director will approve the expenditures and seek reimbursement from PG&E, SCE, and SDG&E. Reimbursement will be sought from these three utilities on a proportional basis in relationship to the annual retail sales used for the RPS Program, as reported each year in the March 1 compliance report (or other first report each year as determined by the Executive Director). PG&E, SCE, and SDG&E are authorized to record these RPS third-party technical support costs associated with RPS technical contractor activities in their Renewables Portfolio Standard Costs Memorandum Accounts (RPSCMA). These costs may be recorded when paid, for later recovery via rates. Other LSEs are excused.66
64 The annual Budget Act gives the Commission certain specific and limited ongoing reimbursable expenditure authority. Prior to exercising this authority, the Commission must issue a decision that identifies the contracting activities to be undertaken by the Commission, and the costs subject to reimbursement by utility companies. This decision serves that purpose, and allows the Commission to utilize the reimbursable authority granted in the annual Budget Act. (Budget Act of 2010, Stats. 2010, Ch 712, Item 8660-001-0462(6).)
65 To the extent the maximum annual amount is not expended in each year of the contract period, such amounts may be carried forward and expended in a subsequent year. The maximum nominal value of this contract shall not exceed $2.4 million. If not spent within four years, the funds may be spent in subsequent years (beyond year four) as long as the total does not exceed $2.4 million. (See D.11-01-016.)
66 We excuse other LSEs since we do not regulate the rates of ESPs and CCAs, while multi-jurisdictional, small and other IOUs have fewer sales compared to those of the three IOUs, making the complication of additional invoicing for a small amount of money more than the benefit of spreading the cost to all IOUs. (See D.06-10-050 at 54 regarding similar treatment.)
