CPUC Proposes Doubling Self-Generation Funds

By Published On: October 25, 2004

The California Public Utilities Commission?s budget for promoting self-generation would go from $125 million per year to $300 million per year under a proposed decision issued October 18. Except for fuel cells, subsidies for which remain at $4.50/watt, the plan would also reduce incentive payments for localized energy installations to $3/watt. The maximum eligible capacity size of projects would be increased from 1 MW to 5 MW. The decision would extend self-generation payments to 2007, according to Steve Larson, CPUC executive director. In her proposed order, administrative law judge Kim Malcolm also noted that a declining incentive structure for installations ?will gradually reduce the market?s reliance on a subsidy.? Malcolm, however, did not mandate these reductions in the draft decision, instead recommending that such an exit plan proposal be assigned to a working group that would report to the commission on the matter.

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