The California Public Utilities Commission confirmed its decision that permits Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric to count signed renewables contracts toward their annual renewables portfolio standard obligations. In a January 31 ruling, regulators denied the Center for Energy Efficiency and Renewable Technologies' application seeking a rehearing. CEERT objected to allowing utilities to count green power supply deals that are not performing toward the utilities' 2005 renewables portfolio standard annual procurement target. The renewables advocate argued that the CPUC action violates the mandates of renewables legislation SB 1078. The CPUC disagreed. However, it did agree that contracted output must be "available" and be more than just an executed agreement. "Flexibility" of CPUC rules allows nonperforming contracts to count as renewables credits. This is because "the utilities are faced with potential under-procurement in 2005," the CPUC order states.