Over Edison Objections, CEC Approves Integrated Policy Update

The California Energy Commission unanimously approved its updated Integrated Energy Policy Report on November 3. The report includes the suggestion that Southern California Edison increase its renewables portfolio by 1 percent each year?to reach 25 percent by 2010 and 30 percent by 2015, well beyond the renewables mandate of 20 percent by 2017, which may be advanced to 2010. ?Left to their own philosophical motivations, utilities don?t make as much of an effort as when the state tells them what to do,? commissioner John Geesman said, reiterating his concern that Edison is not reaching its green energy potential. The utility objects to the ?singling out of Edison for higher and more aggressive levels? of renewable commitment than other load-serving entities, said Gary Schoonyan, Edison director of regulatory policy. Higher green targets could mean higher costs, he added. Edison predicted last year that its portfolio would be 20 percent renewables in 2004, but Geesman said that to his disappointment, the utility will not achieve that goal. He noted that the utility started with far more renewables in its portfolio than the other investor-owned utilities after the renewables portfolio standard kicked in. But Edison also has not relied on subsidies to increase spending on green resources, Geesman added. Because of the time needed to calculate year-end power deliveries, the 2004 percentage of renewable supplies won?t be known until early next year, explained Gil Alexander, Edison spokesperson. The adopted report also spotlights potential supply shortages in Southern California. It emphasizes the need for investing in solar energy, creating a capacity market, and implementing dynamic pricing tariffs ( Circuit , October 29, 2004). With backing from newly enacted legislation, the report outlines additional responsibilities for the agency on the transmission front. Looking ahead, recently enacted SB 1565 appears to advance the CEC?s bid to take over transmission planning by directing the agency to include a comprehensive plan for next year?s report. The legislation is a shot in the arm, giving the CEC clout to fashion a structured long-term transmission plan for California?s electricity grid and recommend investments for new infrastructure, said Robert Strand, CEC manager of engineering. In other news, the commission approved a $925,000 grant to the Alameda?Contra Costa Transit District to develop a demonstration hydrogen fueling station. The Department of Energy will collaborate on the project. The governor?s interest in advancing hydrogen in the state was noted.

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Over Edison Objections, CEC Approves Integrated Policy Update

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