Edison Renewables Credit Sale Approved

By Published On: March 1, 2013

Regulators Feb. 28 unanimously approved Southern California Edison’s sale of renewable energy--and associated green energy credits--to developer Energy America based in San Diego. The deal was considered “reasonable” by the California Public Utilities Commission on the basis of both power demand and price--although the latter was kept confidential. The 20 month-long sale began May 15, 2012. Last year, 40 MW of energy that qualifies as green under the state’s Renewable Portfolio Standard and associated green credits was sold from California facilities under contract with the utility, which were unidentified. This year, 25 MW of green energy and tags is being purchased by Energy America. Edison, like the other two investor-owned utilities, currently has more renewable energy than it needs to meet its renewable compliance obligations under the state’s 33 percent renewable mandate, according to Ed Randolph, commission energy division director. “All three anticipate buying and selling excess resources.” Randolph said. San Diego Gas & Electric, for example, plans to soon get approval of a similar sale via a fast-track process. Utility renewable energy contracts--their price tags and terms--are a contentious issue. Commission member Carla Peterman asked about the language in the resolution seeking approval stating the hidden price was not “precedent setting.” She asked if prices for deals on excess renewable supplies and attached green attributes of utility suppliers were going to be standardized. “Standard pricing is being developed,” Randolph said. The commission also approved, with no discussion, preconstruction of the undergrounding of part of the Tehachapi renewable transmission line running through the City of Chino Hills. CPUC president Mike Peevey said regulators recognized Chino Hills’ desire for “attractiveness and design.” Regulators are considering allowing Edison to recover in rates $35 million for the initial work.

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