6. Assignment of Proceeding
Mark J. Ferron is the assigned Commissioner and Anne E. Simon is the assigned ALJ for this portion of this proceeding.
1. The RPS compliance accounting framework pursuant to SB 107 is based on APT.
2. The RPS compliance accounting framework pursuant to SB 2 (1X) is based on multi-year compliance periods.
1. SB 2 (1X) goes into effect on December 10, 2011.
2. Upon the effective date of SB 2 (1X), the RPS compliance periods set forth in Pub. Util. Code § 399.15(b) will apply to all retail sellers.
3. In order to implement the RPS procurement quantity requirement for the compliance period 2011-2013 in a manner most in keeping with the statutory language, there should be no intervening year targets in that compliance period.
4. For the compliance period 2011-2013, the RPS procurement quantity requirement of each retail seller should be:
Megawatt-hours (MWh) of RPS-eligible procurement required = .20 * (2011 retail sales + 2012 retail sales + 2013 retail sales), where retail sales are expressed in MWh.
5. Reasonable progress for the compliance periods 2014-2016 and 2017-2020 should be determined by means of quantitative targets for the intervening years.
6. Retail sellers should not be required to demonstrate a specific quantity of procurement for any intervening year in a compliance period.
7. Retail sellers should show compliance with the procurement quantity requirement for a compliance period by procuring the cumulative quantity of RPS-eligible resources required for that compliance period.
8. For the compliance period 2014-2016, the RPS procurement quantity requirement of each retail seller should be:
Megawatt-hours (MWh) of RPS-eligible procurement required = (.217 * 2014 retail sales) + (.233 * 2015 retail sales) + (.25 * 2016 retail sales), where retail sales are expressed in MWh.
9. For the compliance period 2017-2020, the RPS procurement quantity requirement of each retail seller should be:
Megawatt-hours (MWh) of RPS-eligible procurement required = (.27 * 2017 retail sales) + (.29 * 2018 retail sales) + (.31 * 2019 retail sales) + (.33 * 2020 retail sales), where retail sales are expressed in MWh.
10. For the year 2021 and each year thereafter, the RPS procurement quantity requirement of each retail seller should be:
Megawatt-hours (MWh) of RPS-eligible procurement required =
.33 * Year's retail sales, where retail sales are expressed in MWh.
11. In order to implement RPS procurement and compliance requirements, the Director of Energy Division should be authorized to set reporting requirements for all retail sellers, including the date for submission of reports on RPS procurement for 2011, and to develop appropriate documentation for retail sellers to report their RPS-eligible procurement.
12. In order to promote fair and efficient compliance with the new RPS requirements of SB 2 (1X), this order should be effective immediately.
IT IS ORDERED that:
1. For compliance with the California renewables portfolio standard in the compliance period beginning January 1, 2011 and ending December 31, 2013, each retail seller must procure an average of 20% of its retail sales for the entire compliance period from procurement of renewable energy resources eligible under the California renewables portfolio standard. The numerical expression of this procurement quantity requirement is:
Megawatt-hours of procurement eligible under the California renewables portfolio standard required = .20 * (2011 retail sales + 2012 retail sales + 2013 retail sales), where retail sales are expressed in megawatt-hours.
2. For compliance with the California renewables portfolio standard in the compliance period beginning January 1, 2014 and ending December 31, 2016, each retail seller must procure sufficient renewable energy resources eligible under the California renewables portfolio standard to demonstrate reasonable progress in meeting the procurement target of 25% of retail sales by December 31, 2016, and to procure no less than the quantities associated with the intervening years in the period. The numerical expression of this procurement quantity requirement is:
Megawatt-hours of procurement eligible under the California renewables portfolio standard required = (.217 * 2014 retail sales) + (.233 * 2015 retail sales) + (.25 * 2016 retail sales), where retail sales are expressed in megawatt-hours.
3. For compliance with the California renewables portfolio standard in the compliance period beginning January 1, 2017 and ending December 31, 2020, each retail seller must procure sufficient renewable energy resources eligible under the California renewables portfolio standard to demonstrate reasonable progress in meeting the procurement target of 33% of retail sales by December 31, 2020, and to procure no less than the quantities associated with the intervening years in the period. The numerical expression of this procurement quantity requirement is:
Megawatt-hours of procurement eligible under the California renewables portfolio standard required = (.27 * 2017 retail sales) + (.29 * 2018 retail sales) + (.31 * 2019 retail sales) + (.33 * 2020 retail sales), where retail sales are expressed in megawatt-hours.
4. For compliance with the California renewables portfolio standard in the year 2021 and in each year thereafter, each retail seller must procure 33% of its retail sales from renewable energy resources eligible under the California renewables portfolio standard. The numerical expression of this procurement quantity requirement is:
Megawatt-hours of procurement eligible under the California renewables portfolio standard procurement required =
.33 * Year's retail sales, where retail sales are expressed in megawatt-hours.
5. The Director of Energy Division is authorized to set reporting requirements for all retail sellers and to develop appropriate reporting formats and documentation for retail sellers to report their procurement eligible under the California renewables portfolio standard.
6. The Director of Energy Division is authorized to set a reasonable date for submission of retail sellers' reports on procurement of eligible renewable energy resources under the California renewables portfolio standard for 2011.
7. Rulemaking 11-05-005 remains open.
This order is effective today.
Dated December 1, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
New Section 399.15 of the Public Utilities Code
(Enacted by Senate Bill 2 (1X), Stats. 2011, ch. 1)
Effective December 10, 2011
(b) The commission shall implement renewables portfolio standard procurement requirements only as follows:
(1) Each retail seller shall procure a minimum quantity of eligible renewable energy resources for each of the following compliance periods:
(A) January 1, 2011, to December 31, 2013, inclusive.
(B) January 1, 2014, to December 31, 2016, inclusive.
(C) January 1, 2017, to December 31, 2020, inclusive.
(2) (A) No later than January 1, 2012, the commission shall establish the quantity of electricity products from eligible renewable energy resources to be procured by the retail seller for each compliance period. These quantities shall be established in the same manner for all retail sellers and result in the same percentages used to establish compliance period quantities for all retail sellers.
(B) In establishing quantities for the compliance period from January 1, 2011, to December 31, 2013, inclusive, the commission shall require procurement for each retail seller equal to an average of 20 percent of retail sales. For the following compliance periods, the quantities shall reflect reasonable progress in each of the intervening years sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 25 percent of retail sales by December 31, 2016, and 33 percent of retail sales by December 31, 2020. The commission shall require retail sellers to procure not less than 33 percent of retail sales of electricity products from eligible renewable energy resources in all subsequent years.
(C) Retail sellers shall be obligated to procure no less than the quantities associated with all intervening years by the end of each compliance period. Retail sellers shall not be required to demonstrate a specific quantity of procurement for any individual intervening year.
(3) The commission shall not require the procurement of eligible renewable energy resources in excess of the quantities identified in paragraph (2). A retail seller may voluntarily increase its procurement of eligible renewable energy resources beyond the renewables portfolio standard procurement requirements.
(4) Only for purposes of establishing the renewables portfolio standard procurement requirements of paragraph (1) and determining the quantities pursuant to paragraph (2), the commission shall include all electricity sold to retail customers by the Department of Water Resources pursuant to Division 27 (commencing with Section 80000) of the Water Code in the calculation of retail sales by an electrical corporation.
(5) The commission shall waive enforcement of this section if it finds that the retail seller has demonstrated any of the following conditions are beyond the control of the retail seller and will prevent compliance:
(A) There is inadequate transmission capacity to allow for sufficient electricity to be delivered from proposed eligible renewable energy resource projects using the current operational protocols of the Independent System Operator. In making its findings relative to the existence of this condition with respect to a retail seller that owns transmission lines, the commission shall consider both of the following:
(i) Whether the retail seller has undertaken, in a timely fashion, reasonable measures under its control and consistent with its obligations under local, state, and federal laws and regulations, to develop and construct new transmission lines or upgrades to existing lines intended to transmit electricity generated by eligible renewable energy resources. In determining the reasonableness of a retail seller's actions, the commission shall consider the retail seller's expectations for full-cost recovery for these transmission lines and upgrades.
(ii) Whether the retail seller has taken all reasonable operational measures to maximize cost-effective deliveries of electricity from eligible renewable energy resources in advance of transmission availability.
(B) Permitting, interconnection, or other circumstances that delay procured eligible renewable energy resource projects, or there is an insufficient supply of eligible renewable energy resources available to the retail seller. In making a finding that this condition prevents timely compliance, the commission shall consider whether the retail seller has done all of the following:
(i) Prudently managed portfolio risks, including relying on a sufficient number of viable projects.
(ii) Sought to develop one of the following: its own eligible renewable energy resources, transmission to interconnect to eligible renewable energy resources, or energy storage used to integrate eligible renewable energy resources. This clause shall not require an electrical corporation to pursue development of eligible renewable energy resources pursuant to Section 399.14.
(iii) Procured an appropriate minimum margin of procurement above the minimum procurement level necessary to comply with the renewables portfolio standard to compensate for foreseeable delays or insufficient supply.
(iv) Taken reasonable measures, under the control of the retail seller, to procure cost-effective distributed generation and allowable unbundled renewable energy credits.
(C) Unanticipated curtailment of eligible renewable energy resources necessary to address the needs of a balancing authority.
(6) If the commission waives the compliance requirements of this section, the commission shall establish additional reporting requirements on the retail seller to demonstrate that all reasonable actions under the control of the retail seller are taken in each of the intervening years sufficient to satisfy future procurement requirements.
(7) The commission shall not waive enforcement pursuant to this section, unless the retail seller demonstrates that it has taken all reasonable actions under its control, as set forth in paragraph (5), to achieve full compliance.
(8) If a retail seller fails to procure sufficient eligible renewable energy resources to comply with a procurement requirement pursuant to paragraphs (1) and (2) and fails to obtain an order from the commission waiving enforcement pursuant to paragraph (5), the commission shall exercise its authority pursuant to Section 2113.
(9) Deficits associated with the compliance period shall not be added to a future compliance period.
(END OF APPENDIX A)
1st Compliance Period |
2nd Compliance Period |
3rd Compliance Period | |||||||||
Method |
Metric |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
ALJ Ruling Straw Proposal |
Annual retail sales |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
Progress target (%) |
20.00 |
20.00 |
20.00 |
21.50 |
23.50 |
25.00 |
27.00 |
29.00 |
31.00 |
33.00 | |
Progress quantity (MWh) |
2,000 |
2,000 |
2,000 |
2,150 |
2,350 |
2,500 |
2,700 |
2,900 |
3,100 |
3,300 | |
Compliance period quantity (MWh) |
6,000 |
7,000 |
12,000 | ||||||||
1st Compliance Period |
2nd Compliance Period |
3rd Compliance Period | |||||||||
Method |
Metric |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
PG&E, SCE, and SDG&E Proposal 1% annual increase for intervening years |
Annual retail sales |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
Progress target (%) |
20.00 |
20.00 |
20.00 |
21.00 |
22.00 |
25.00 |
26.00 |
27.00 |
28.00 |
33.00 | |
Progress quantity (MWh) |
2,000 |
2,000 |
2,000 |
2,100 |
2,200 |
2,500 |
2,600 |
2,700 |
2,800 |
3,300 | |
Compliance period quantity (MWh) |
6,000 |
6,800 |
11,400 | ||||||||
1st Compliance Period |
2nd Compliance Period |
3rd Compliance Period | |||||||||
Method |
Metric |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
DRA Proposal |
Annual retail sales |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
Progress target (%) |
20.00 |
20.00 |
20.00 |
21.00 |
22.50 |
25.00 |
26.00 |
28.00 |
30.25 |
33.00 | |
Progress quantity (MWh) |
2,000 |
2,000 |
2,000 |
2,100 |
2,250 |
2,500 |
2,600 |
2,800 |
3,025 |
3,300 | |
Compliance period quantity (MWh) |
6,000 |
6,850 |
11,725 | ||||||||
1st Compliance Period |
2nd Compliance Period |
3rd Compliance Period | |||||||||
Method |
Metric |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Reid Proposal |
Annual retail sales |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
Progress target (%) |
19.00 |
20.00 |
21.00 |
22.33 |
23.67 |
25.00 |
27.00 |
29.00 |
31.00 |
33.00 | |
Progress quantity (MWh) |
1,900 |
2,000 |
2,100 |
2,233 |
2,367 |
2,500 |
2,700 |
2,900 |
3,100 |
3,300 | |
Compliance period quantity (MWh) |
6,000 |
7,100 |
12,000 | ||||||||
1st Compliance Period |
2nd Compliance Period |
3rd Compliance Period | |||||||||
Method |
Metric |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
CalPeco, AReM, and Noble Proposal Previous Period Targets |
Annual retail sales |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
Progress target (%) |
20.00 |
20.00 |
20.00 |
20.00 |
20.00 |
25.00 |
25.00 |
25.00 |
25.00 |
33.00 | |
Progress quantity (MWh) |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,500 |
2,500 |
2,500 |
2,500 |
3,300 | |
Compliance period quantity (MWh) |
6,000 |
6,500 |
10,800 | ||||||||
(END OF APPENDIX B)
