California Adopts Additional Rules to Implement RPS Changes

The California PUC adopted a final order implementing additional revisions to the RPS program as a result of Senate Bill 2 (1X).

The decision (Docket R.11-05-005) provides rules for retail sellers to:

• Calculate and resolve any net deficits in meeting their RPS annual procurement target (APT) obligations in 2010 and earlier years;

• Make use of the statutory "safe harbor" created by SB 2 (1X) to excuse certain prior APT deficits;

• Apply procurement from RPS procurement contracts or ownership agreements signed prior to June 1, 2010 to RPS procurement obligations in 2011 and later years;

• Carry forward banked procurement from contracts or ownership agreements signed prior to June 1, 2010, subject to certain limitations;

• Use procurement from contracts of less than 10 years' duration to meet RPS procurement requirements;

• Meet the procurement quantity requirements set in Decision 11-12-020;

• Apply excess procurement in one compliance period to future compliance periods, subject to certain limitations;

• Meet the portfolio balance requirements set forth in Pub. Util. Code § 399.16(c);

• Report annually to the Commission on RPS procurement and compliance and provide any additional information requested by the Director of Energy Division;

• Request a reduction of the portfolio balance requirements and/or a waiver of the procurement quantity requirements at the end of a compliance period.

• Report to the Commission within 60 days of the effective date of this decision on any net deficits in meeting APT for 2010 and prior years and on meeting the statutory safe harbor requirements.