(The following statement from the California Public Utilities Commission
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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
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
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
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
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
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