CONSISTENCY WITH COMMISSION DECISIONS. A. Consistency With PG&E’s Adopted RPS Procurement Plan The Second Amendment will benefit PG&E’s customers by: (1) allowing an existing QF resource that provides RPS-eligible energy to continue operations and deliver renewable energy at a competitive price; and (2) modifying the PPA’s performance obligations so that production from the Facility will be more reliable and provide deliveries on a year- round basis. Senate Bill 2 in the First Extraordinary Session of the 2011 Legislative Session (“SB 2 1X”) requires load-serving entities (“LSEs”) to gradually increase procurement of renewable resources until such deliveries meet 33% of their retail sales. The statute creates a compliance structure that includes both enforceable compliance period targets and unenforceable reasonable progress targets for individual years through 2020. The reasonable progress targets will be used to establish the total enforceable quantities of renewable deliveries that each LSE will need to procure by the end of each compliance period. For instance, while SB 2 1X requires that LSEs procure an average of 20% of retail sales from renewable resources for the first compliance period of January 1, 2011, to December 31, 2013,7 the Commission has yet to define the reasonable progress targets for the second and third compliance periods (2014-2016 and 2017-2020, respectively). Once the Commission has established the reasonable progress targets for these later compliance periods, LSEs will be able to calculate the percentages of their total sales for each respective period that represents the enforceable compliance period targets.8 PG&E’s 2011 Renewable Energy Procurement Plan (“2011 RPS Plan”) was approved by D.00-00-000 on April 20, 2011. In the 2011 RPS Plan, PG&E indicated that it was “pursuing both short- and long-term contracts to meet [the] statutory goals” set forth in SB 2 1X.9 The Second Amendment will help PG&E to maintain its baseline RPS portfolio, which provides a foundation from which PG&E can make progress toward compliance with the 33% RPS program. The Second Amendment therefore meets the needs defined in the 2011 RPS Plan. PG&E’s 2011 RPS Solicitation Protocol requests participants to describe how their projects improve environmental quality, stimulate sustainable economic development,
CONSISTENCY WITH COMMISSION DECISIONS. A. Consistency With PG&E’s Adopted RPS Procurement Plan PG&E’s 2011 Renewable Procurement Plan (“2011 Plan”) was conditionally approved in D.00-00-000 on April 14, 2011. As required by statute, the 2011 Plan included an assessment of supply and demand to determine the optimal mix of renewable generation resources, consideration of compliance flexibility mechanisms established by the Commission, and a bid solicitation setting forth the need for renewable generation of various operational characteristics.3 The goal of PG&E’s 2011 Plan is to procure approximately one to two percent of its retail sales volume, or between 800 GWh and 1,600 GWh per year. PG&E included the use of RECs in its 2011 Plan and part of the procurement goal can be satisfied with RECs instead of bundled power deliveries. Projects capable of providing actual deliveries or RECs in the near-term are especially valuable to PG&E. The PSA will contribute to PG&E’s near- and intermediate-term RPS goals. The PSA’s contribution to PG&E’s RPS goals is discussed further in Confidential Appendix G.
CONSISTENCY WITH COMMISSION DECISIONS. A. RPS Procurement Plan
CONSISTENCY WITH COMMISSION DECISIONS. A. Consistency With PG&E’s Adopted RPS Procurement Plan
CONSISTENCY WITH COMMISSION DECISIONS
