PUC previews enforcement program for California renewable law; procurement plans to follow

Meg Neal, manager of regulatory and legislative affairs for the power enterprise, presented the draft enforcement program required of publicly owned utilities by the California Renewable Energy Resources Act (SBX1 2).

Neal explained the enforcement program does not set citywide renewable policy but establishes a structured procurement-plan and reporting process so the PUC can demonstrate compliance with the act. Under the statute, utilities that meet more than 67% of demand with hydroelectric generation (as SFPUC typically does in normal water years) must procure eligible renewable resources for the portion of load not served by hydro.

The initial procurement plan will cover the statute’s effective date (Dec. 10) through the end of fiscal year 2012–13 (June 30, 2013); subsequent plans will be synced to budget cycles. Procurement plans, Neal said, will forecast loads and Hetch Hetchy supply, identify RPS-eligible procurement needs, estimate costs and rate impacts, and describe uncertainties and mitigation strategies.

Neal said the staff has sought input from the Citizens Advisory Committee and Clean Energy Stewards and expects to return on Dec. 13 with a finalized enforcement program for adoption and, in early 2012, with the first procurement plan. Commissioners asked technical and scope questions and directed staff to include forecasted megawatt needs, source options (e.g., in-state wind or local solar) and wet/dry year scenarios in the procurement plan.

The draft enforcement program as presented establishes the process and timeline but does not specify procurement products or contracts; staff will use the procurement plan to make those recommendations for commission review.