Assembly Bill (AB) 327 took effect in California at the first of the year, giving the California Public Utilities Commission (CPUC) authority to expand the State’s 33% Renewable Portfolio Standard (RPS). This week, the CPUC extended its RPS proceeding to determine, before February 2015, how to implement the new law. AB 327 provides that the CPUC may require the State’s investor-owned utilities to procure renewable energy in excess of 33%, but the law does not mandate an expansion of the RPS. As the utilities have almost filled their procurement needs to meet the 33% requirement, the market for utility-scale renewable projects in California will likely continue to shrink without an expanded RPS. The CPUC’s ruling left the scheduling of the work to implement AB 327 to the assigned ALJs and Commissioner. We will be alert for opportunities to participate in the CPUC’s further proceedings to implement AB 327. In the short term, there is an opportunity to comment on the CPUC’s consideration of the Renewable Auction Mechanism (RAM) program. Any comments are due January 30th. The fifth, and presently last-scheduled, RAM auction is to occur no later than June 2014. Expect a Proposed Decision from the CPUC on the fate of the RAM in 2Q 2014.
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