ALJ/BWM/jt2 Date of Issuance 6/8/2009
Decision 09-06-018
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 08-08-009 (Filed August 21, 2008) |
DECISION CONDITIONALLY ACCEPTING 2009
RENEWABLES PORTFOLIO STANDARD PROCUREMENT PLANS AND INTEGRATED RESOURCE PLAN SUPPLEMENTS
TABLE OF CONTENTS
Title Page
DECISION CONDITIONALLY ACCEPTING PROCUREMENT PLANS
FOR 2009 RENEWABLES PORTFOLIO STANDARD SOLICITATIONS
AND INTEGRATED RESOURCE PLAN SUPPLEMENTS 22
3. Overview of 2009 Plans, 2009 Supplements and Commission Approach 77
3.1. Overview of 2009 Plans and Supplements 77
3.2. Overview of Commission Approach 99
4.1. Special Imperial County Bidders Conference 1111
4.2. Specific Monitoring of Imperial Valley Proposals 1414
4.3. Remedial Measures for 2010 Solicitation 1616
4.4. Project Viability Evaluation Methodology 1919
4.4.1. Procurement Process 2020
4.4.2. Commission Review and Approval of Contracts and Amendments 2929
5. Other Issues Common to All Plans 3333
5.1. Exclusivity Agreement Date 3434
5.3. STC 5 and 25-Year Contract Term 3939
5.7. Utility-Owned Generation 4848
5.8. Plan Organization and Data for 2010 Plans 5252
6. Limited Issues Specific to a Plan 5353
6.2.1. Pre-Approval for Short-Term Contracts 5757
6.2.2. RPS Standard Contract Program 5959
6.5. Sierra Pacific Power Company 6969
7. Schedule for 2009 Solicitations and Organization of 2010 Plans 6969
8. Comments on Proposed Decision 7272
Appendix A - Summary of Key Items
Appendix B - Adopted Schedule for 2009 Solicitation
Appendix C - Summary of 2009 RPS Procurement Plans
Appendix D - Summary of 2009 Supplements to IRPs
DECISION CONDITIONALLY ACCEPTING PROCUREMENT PLANS FOR 2009 RENEWABLES PORTFOLIO STANDARD SOLICITATIONS AND INTEGRATED RESOURCE PLAN SUPPLEMENTS
1. Summary
The California Renewables Portfolio Standard (RPS) Program requires that each California electric utility procure, with limited exceptions, an annual minimum quantity of electricity generated from eligible facilities powered by renewable energy resources. The amount, subject to flexible compliance provisions, must increase by at least 1% each year, and must reach 20% of total retail sales by no later than 2010.
As part of fulfilling this requirement, Southern California Edison Company (SCE), Pacific Gas and Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E) must each prepare an RPS procurement plan (Plan). The Commission is required to review and accept, modify or reject each Plan before commencement of renewables procurement. Sierra Pacific Power Company (Sierra) and PacifiCorp (collectively multi-jurisdictional utilities, or MJUs), must file a biennial Integrated Resource Plan (IRP), along with limited supplemental information. Sierra and PacifiCorp must file more comprehensive Supplements in years in which an IRP is not filed. The Commission reviews each IRP and Supplement.
In this decision, we conditionally accept the Plans filed by SCE, PG&E, and SDG&E. We also review the Supplements to IRPs filed by Sierra and PacifiCorp. Important steps we take include:
1. Require an Imperial Valley special bidders conference.
2. Require specific monitoring of Imperial Valley proposals and projects.
3. Adopt a requirement for a more standardized project viability methodology and calculator, and increased transparency of the bid evaluation process.
4. Adopt a uniform date before which an investor-owned utility (IOU) may not require that a bidder execute an agreement requiring exclusive negotiations with the IOU.
5. Require IOUs to exclude language that would discourage or prohibit bids longer than 20 years, and require IOUs to consider and evaluate all bids.
6. Accept IOU proposals for modifications to least-cost, best-fit protocols and descriptions.
7. Direct SDG&E to provide both energy-only and all-in time of use (TOU) factors with its next TOU showing.
8. Commend utilities for innovative work (e.g., PG&E proposal to include joint development and ownership; SCE RPS Standard Contract Program) and continue to encourage utility-owned RPS generation as necessary to meet RPS goals, when consistent with Commission procurement protocols and where appropriate and reasonable.
9. Accept SDG&E's proposal to include an Imperial Valley sub-solicitation as part of its general solicitation in 2009, consistent with allowing SDG&E to fulfill its Sunrise Powerlink Transmission Line commitments.
10. Adopt a schedule for completing the 2009 solicitation cycle and process for initiating the 2010 solicitation cycle.
SCE, PG&E and SDG&E shall each, within 14 days of the date this order is mailed, file and serve an amended Plan, with a copy also filed on the Director of the Commission's Energy Division. Each utility shall proceed to use its amended Plan for its 2009 RPS program and solicitation, unless the amended Plan is suspended by the Executive Director or Energy Division Director within 21 days of the date this order is mailed. Sierra and PacifiCorp may each use its IRP and Supplement without delay. A more comprehensive summary of requirements for the amended Plans and future Supplements is in Appendix A. The 2009 solicitation schedule is in Appendix B.
We continue to employ the presumption that each utility may apply its own reasonable business judgment in running its solicitation, within the parameters we establish and the guidance we provide. Utilities ultimately remain responsible for program implementation, administration and success, within application of flexible compliance criteria. We will later judge the extent of that success, including the degree to which each utility implements the orders adopted herein, elects to take the guidance provided herein, demonstrates creativity and vigor in program administration and execution, and reaches program targets and requirements. This proceeding remains open.
