ALJ/AES/lil Date of Issuance 12/5/2011

Decision 11-12-020 December 1, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program.

Rulemaking 11-05-005
(Filed May 5, 2011)

DECISION SETTING PROCUREMENT QUANTITY
REQUIREMENTS FOR RETAIL SELLERS FOR THE
RENEWABLES PORTFOLIO STANDARD PROGRAM

DECISION SETTING PROCUREMENT QUANTITY REQUIREMENTS FOR RETAIL SELLERS FOR THE RENEWABLES PORTFOLIO STANDARD PROGRAM 1 1

1. Summary 2 2

2. Procedural History 3 3

3. Discussion 5 5

3.1. Legislative Background 5 5

3.2. Plan of this Decision 6 6

3.3. RPS Compliance Periods 7 7

3.4. Compliance Period 2011-2013 10 10

3.5. Additional Parameters for Compliance Periods 2014-2016 and 2017-2020 12 12

3.5.1. Reasonable Progress in Intervening Years 12 12

3.5.2. Must Procure No Less Than Quantities Associated
with All Intervening Years 16 16

3.5.3. No Requirement to Demonstrate a Specific Quantity of Procurement for Any Individual Intervening Year 16 16

3.6. Compliance Period 2014-2016 18 18

3.7. Compliance Period 2017-2020 18 18

3.8. Compliance in Years Following 2020 19 19

3.9. Reporting and Verification 19 19

4. Next Steps 20 20

5. Comments on Proposed Decision 21 21

6. Assignment of Proceeding 21 21

Findings of Fact 21 21

Conclusions of Law 22 22

ORDER 23 23

APPENDIX A - New Section 399.15 of the Public Utilities Code 1 1

APPENDIX B - Summary of Proposals 1 1

DECISION SETTING PROCUREMENT QUANTITY
REQUIREMENTS FOR RETAIL SELLERS FOR
THE RENEWABLES PORTFOLIO STANDARD PROGRAM

1. Summary

This decision sets the new renewables portfolio standard (RPS) procurement quantities required by new Pub. Util. Code § 399.15(b), for all retail sellers (investor-owned utilities, community choice aggregators, and electric service providers).¹

For the RPS compliance period 2011-2013, each retail seller must procure an average of 20% of its retail sales for the entire period from RPS-eligible resources. The numerical expression of this requirement is:

Megawatt-hours of RPS-eligible procurement required =

.20 * (retail sales for 2011 + retail sales for 2012 + retail sales for 2013), where retail sales are expressed in megawatt-hours (MWh).

For the RPS compliance period 2014-2016, each retail seller must have sufficient procurement of RPS-eligible resources to meet its procurement quantity requirement for the compliance period. In determining the cumulative procurement quantity, the Commission applies a straight-line trend from the quantity for the prior compliance period (average of 20% of retail sales) to the concluding year of the 2014-2016 compliance period (25% of retail sales), yielding intervening year targets of 21.7% of retail sales in 2014 and 23.3% of retail sales in 2015. The numerical expression of this requirement is:

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.

For the RPS compliance period 2017-2020, each retail seller must have sufficient procurement from RPS-eligible resources to meet its procurement quantity requirement for the compliance period. In determining the cumulative procurement quantity, the Commission applies a straight-line trend from the statutory target for the concluding year of the prior compliance period (25% of retail sales) to the concluding year of the 2017-2020 compliance period (33% of retail sales), yielding intervening year targets of 27% of retail sales in 2017, 29% of retail sales in 2018, 31% of retail sales in 2019, and 33% of retail sales in 2020. The numerical expression of this requirement is:

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.

For the year 2021 and each following year, each retail seller must have sufficient procurement from RPS-eligible resources to meet its annual procurement quantity requirement of 33% of retail sales. The numerical expression of this requirement is:

MWh of RPS-eligible procurement required= .33 * Year's retail sales, where retail sales are expressed in MWh.

This proceeding remains open.

¹ Senate Bill (SB) 2 (1X) (Simitian), Stats. 2011, ch. 1, enacted in the 2011-2012 First Extraordinary Session of the Legislature, will "go into effect on the 91st day after adjournment of the special session at which the bill was passed." (Gov't. Code § 9600(a).) The 2011-2012 First Extraordinary Session adjourned on September 10, 2011, making SB 2 (1X) effective on December 10, 2011.