CPUC: CALIFORNIA ON TRACK TO MEET 25% RENEWABLE STANDARD BY 2016

     (The following statement from the California Public Utilities Commission 
was received by e-mail and was reformatted. The sender verified the statement.) 
CPUC Information Alert: CPUC Renewable Energy Reports Show Declining Contract 
Prices and a Robust Market 
The California Public Utilities Commission (CPUC) has submitted three renewable 
energy related reports to the state Legislature demonstrating that renewable 
contract prices in the past two years show continuing decline from prior years 
and a robust and competitive market. 
The state’s Renewables Portfolio Standard (RPS) program, one of the most 
ambitious in the country, requires investor-owned utilities, electric service 
providers, and community choice aggregators to increase procurement from 
eligible renewable energy resources to 33 percent of total procurement by 2020. 
The RPS is a key element in California’s efforts to reduce greenhouse gas (GHG) 
emissions to 1990 levels by 2020. GHG emissions from the power sector declined 
by 22 percent in 2011 from the prior year. 
The reports issued today are:                                                    
1) 3rd and 4th Quarter 2012 RPS Report: Addresses the progress of the state’s 
investor-owned utilities in complying with the RPS. 
2) Padilla Report: Addresses the costs of all electricity procurement contracts 
for eligible renewable energy resources, including unbundled renewable energy 
credits, and all costs for utility owned generation approved by the CPUC. The 
report contains utility renewable cost information for 2012, and a revision of 
the cost information for 2003-2011. 
3) Section 910 Report: Addresses utility direct and indirect costs and savings 
of the RPS and distributed generation programs. The report focuses primarily on 
2011. 
A brief synopsis of each report follows: 
3rd and 4th Quarter 2012 RPS Report
As of the close of 2012, California is on track to meet its interim requirement 
of 25 percent renewables by 2016, and is well-positioned to meet 33 percent by 
2020.                                                                            
As outlined in the 3rd and 4th Quarter 2012 RPS Report, as of Dec. 28, 2012, 
the large investor-owned utilities reported that they served 19.8 percent of 
their electricity with RPS-eligible generation in 2012. Pacific Gas and 
Electric Company served 19 percent of its 2012 retail sales with RPS-eligible 
renewable energy, Southern California Edison with 20.6 percent, and San Diego 
Gas & Electric with 20.3 percent.                                                
Since 2003, 4,498 megawatts (MW) of new renewable capacity achieved commercial 
operation under the RPS program. During 2012, 1,957 MW of new renewable 
capacity came online and more than 3,000 MW is scheduled to come online before 
the end of 2013. 
In 2012, the utilities filed 63 new contracts for 1,311 MW of renewable 
capacity, and the CPUC approved 64 contracts representing 3,725 MW of renewable 
capacity. 
Padilla Report                                                                   
As outlined in the Padilla Report, renewable contract prices in the past two 
years show continuing decline from prior years, and the renewable market 
overall is robust and competitive and has matured since the start of the RPS 
program.                                                                         
The weighted average time-of-delivery (TOD) adjusted price was approximately 
9.6 cents/kilowatt hour (kWh) for all contracts approved in 2012 (including 
renewable energy credit (REC) only transactions), and approximately 9.9 
cents/kWh for bundled energy product (excluding REC transactions). These costs 
are lower than those approved in 2011, which were 12.6 cents/kWh on average, as 
a result of lower cost projects contracted through the 2011 RPS solicitations 
and bilateral transactions.                                                      
The weighted average TOD adjusted RPS procurement expenditures for 2012 were 
approximately 7.7 cents/kWh (including REC only transactions), and 
approximately 7.8 cents /kWh for bundled energy product (excluding REC 
transactions). The RPS procurement expenditures for 2012 are lower than the RPS 
procurement expenditures in 2011, which cost 8 cents/kWh on average.
Section 910 Report                                                               
The Section 910 Report addresses utility direct and indirect costs and savings 
associated with reaching the 33 percent by 2020 renewable energy goal. The 
report focuses primarily on 2011 because the legislatively mandated February 
reporting deadline makes it difficult to obtain and sufficiently review 2012 
expenditures and other requested data.                                           
The reports are available at 
www.cpuc.ca.gov/PUC/legislation/Reports/2013_Reports_to_Legislature.htm<http://w
ww.cpuc.ca.gov/PUC/legislation/Reports/2013_Reports_to_Legislature.htm> (please 
paste into your browser if clicking the link does not work). 
(kgt)NY 
 
 
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