Renewables, such as biomass, geothermal, wind and solar power, currently comprise about 12% of the generation portfolio of the state's largest utility, PG&E Corp. unit Pacific Gas & Electric. Edison International unit Southern California Edison's use of renewable energy is about 15%, but Sempra unit San Diego Gas & Electric currently has less than 2% renewables in its portfolio.
The bill requires the CPUC to direct utilities to prepare an appropriate renewable procurement plan within 90 days of being deemed creditworthy. Neither Southern California Edison nor Pacific Gas & Electric are currently creditworthy, with the latter having filed for Chapter 11 bankruptcy protection.
The CPUC must also adopt rules to determine the market prices of electricity from renewable resources, a rank-order of least-cost and best-fit renewable resources, and standard contracting rules for utilities, the bill says. California's Renewable Portfolio Standard is double the 10% standard by 2020 currently before the U.S. House of Representatives as a possible provision of its omnibus energy bill.
"No one else in the country is doing something this complicated," said V. John White, head of the Center for Energy Efficiency and Renewable Technologies, who fears the measure may be too complex to succeed. Some comment that if his initiative fails, it could drag utilities and renewable generators into a bureaucratic muck, generating mega-wads of legal briefs and countless regulatory hearings, but little green power.(Source: Dow Jones Newswires)