Small and Multi-jurisdictional Utilities

The small and multi-jurisdictional utilities are different from the three larger investor-owned utilities, but otherwise have little in common with each other. Our record in this area, with the exception of the thoughtful opening and reply briefs from Pacificorp, is relatively scanty. While we would have preferred to set forth in more detail the interaction between the small and multi-jurisdictional utilities and the RPS program, we feel limited to fairly general statements of policy. Our starting point is that the small and multi-jurisdictional utilities are nonetheless utilities, and accordingly are required to comply with the requirements of the RPS program.¹⁰

We understand that the small utilities have limited resources, and often have load profiles and equipment that differs from those of the larger utilities. Nevertheless, given the size of the small utilities, the volume of renewable generation required to reach a 20% level is also quite small. Our policy is that all utilities in California, including the small ones, should reach our stated goal of 20% renewable energy by 2010.

As pointed out by Pacificorp, multi-jurisdictional utilities present a different set of issues, rendering their participation in the RPS program somewhat more complex. Nevertheless, we do not see a basis in SB 1078 for exempting some utilities from the RPS requirements laid out in the statute. Our policy for the multi-jurisdictional utilities, just like our policy for the small utilities, is that they should reach the state's goal of 20% renewable energy by 2010. To avoid questions of our jurisdiction over other states, we clarify that the obligation of multi-state utilities is 20% of their in-California sales, and that the generation used to count toward that requirement must meet the CEC's interconnection and deliverability requirements.¹¹

UCS, ORA, and TURN note that small and multi-jurisdictional utilities are in fact different from the large utilities, and suggest alternative methods for the Commission to use in ensuring their participation in the RPS program. (See, UCS Opening Brief, pp. 5-6; ORA Opening Brief, p. 7; TURN Opening Brief, pp. 8-9.) Pacificorp believes that some of these suggestions may have merit. (Pacificorp Reply Brief, pp. 1, 2, 7, 9.) While this shows some progress toward a possible resolution, the record before us on this issue is basically at the early conceptual stage. We intend to address further the issue of how the small and multi-jurisdictional utilities can best be brought into the RPS program, including the potential use of procurement entities. The Assigned Commissioner and ALJ may establish a process to further develop the record on this issue.