1. Summary

Today's alternate decision denies in part and without prejudice the proposed Emerging Renewable Resource Program application (ERRP). ERRP would have allowed Pacific Gas and Electric Company (PG&E) and San Diego Gas & Electric Company (Joint Applicants) to expend up to $30 million and $15 million, respectively, on external costs for a period of two years. The decision, nonetheless, authorizes assessment expenditures for the WaveConnect project of up to $4.8 million.

The three projects proposed concurrently with the establishment of ERRP could potentially aid the state in its efforts to increase renewable generation and decrease greenhouse gas emissions. However, with the exception of the WaveConnect project, Joint Applicants failed to persuasively demonstrate that, apart from what is currently provided through the California Renewables Portfolio Standard program, there is a need for ratepayer funding of these early-stage projects at this time.

This decision recognizes the importance of ERRP's proposed objectives, but determines that an ERRP should involve more stakeholders. We find however that there is sufficient justification for PG&E's WaveConnect project. California is singularly situated to harvest this potentially enormous supply of baseload renewable generation. While there are a number of projects moving forward globally, no meaningful ocean energy project is currently in production along California's coast. In order to ensure that ratepayer funds are spent on the most promising and most effective technologies, a means of testing competing options should be established. Accordingly, this decision authorizes PG&E to spend up to $4.8 million in funds to cover the expenditures necessary to pursue WaveConnect, described in 5.3, while PG&E continues to examine the project.

This proceeding is closed.