CPUC Proposed Decision on TRECs--Comments Due January 19
The California Public Utilities Commission ("CPUC") issued a proposed decision on December 23, 2009 that would, if adopted, allow California investor-owned utilities, energy service providers, and community choice aggregators to purchase renewable energy credits alone, without the associated energy (sometimes referred to as "unbundled renewable energy credits ("RECs)" or "tradable RECs"), to satisfy their obligations under California's RPS. California's largest investor-owned utilities—Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric—would be limited to meeting no more than 40% of their annual procurement targets under the RPS with tradable RECs, and a price cap of $50 would be imposed. The CPUC will revisit both the percentage cap and the cost cap and whether those caps should be revised within 24 months of the decision.
Out-of-state renewable energy projects could be adversely impacted if the proposed order were adopted. The proposed decision would define all renewable generation purchased from out-of-state facilities1 as the purchase of unbundled or tradable RECs, making any out-of-state renewable energy sale subject to the cap that bars the large investor-owned utilities from using such sales to meet more than 40% of their overall RPS obligation. Although the proposed decision states that this classification would apply only to contracts signed on or after the effective date of the decision, contracts signed prior to the effective date would be considered REC-only contracts from the effective date forward, and would be "subject to the limits and rules applying to REC-only contracts" according to the proposed decision. Furthermore, although the purchase of tradable RECs from out-of-state facilities would be permitted, the delivery requirement in the RPS legislation would still have to be met, so a comparable amount of power would have to be imported into the state, along with the RECs. The jurisdiction to determine whether and how this delivery requirement is met, however, still remains with the California Energy Commission.
Comments on the proposed decision are due on January 19, 2010, and reply comments are due January 25, 2010.
For additional information about the history and effect of the proposed decision, see our Stoel Rives alert on the topic.
RFPs Galore.
The following RFPs for renewable energy and RECs came to my attention today.
1. Dayton Power and Light Company is seeking to acquire up to 313,000,000 kWh of eligible RECs by 2013 in order to meet Ohio's RPS requirements. Deadline for submissions is August 7, 2009. Click here for more information.
2. The Western Area Power Administration is seeking RECs on behalf of certain WAPA regional offices and federal agencies. Deadline for submissions is August 7, 2009. Click here for more information.
3. Southern California Edison seeks to acquire energy from eligible renewable resources. Click here for more information.
4. AEP Ohio is looking to acquire 30,000,000 kWh of eligible RECs to use toward compliance with Ohio's RPS requirements. Interested parties must submit a Notice of Intent to Bid by July 31, 2009. Click here for more information. AEP Ohio also has an active RFP for renewable energy, which you can learn about here.
5. Puget Sound Energy seeks to acquire 30,000,000 kWh of eligible RECs. Interested parties must submit a Notice of Intent to Bid by July 31, 2009.
6. Bryan Texas Utilities hopes to acquire up to 10 MW of utility-scale solar energy and the associated RECs generated within ERCOT. The deadline for submissions is August 24, 2009.
7. Seattle City Light is looking to acquire 50 MW of new renewable resources to meet Washington RPS requirements. Submission deadline is August 28, 2009. You can find more information here.
8. The US General Services Administration seeks to acquire 40,000,000 kWh per year of RECs for the Architect of the Capitol and other federal agencies. Submission deadline is September 1, 2009. You can find more information here.
California PUC Moves to Allow Unbundled RECs
The California Public Utility Commission issued a draft decision on October 29th authorizing the use of unbundled and tradable renewable energy certificates (“RECs” or “TRECs”) for compliance with California’s RPS.
The draft decision also outlines the structure and rules for a tradable REC market and for integrating these RECs into the RPS “flexible compliance system.” Comments are due on Nov. 18, 2008. The draft decision can be found here: http://docs.cpuc.ca.gov/efile/PD/92913.htm.
