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HomeMy WebLinkAbout13,CEC changes to RPS definitionWorkshop Item # 13 CEC Changes to the Renewable Portfolio Standard (RPS) Definition September 18, 2013 Background / History • Original RPS adopted 2002 required 20% of generation be sourced from renewable resources by 2017 — SB 1078 — Local publically owned utilities (POU's) are exempt from RPS requirements but must develop their own RPS policies • 2006 requirement accelerated to 20% by 2010 MMUICIN • 2011, State's RPS sets requirements applicable to POU's and required 33% by 2020 — SB 1 x2 — Development of the CEC's PUD enforcement regulations started in 2011 after passage of SB 1 x2 2 Background / History • Board approved TDPUD's first RPS in 2004 — Board defined qualifying resources as non -fossil fuel generation including all hydro electric resources • March 2007 Board replaced and updated RPS and set a minimum target of 21% renewables by 2010 — Qualifying resources included all hydro electric resources — RPS calculated by total qualified resources divided by total MWh purchased that year — Total MWh purchased that year included transmission and distribution losses 3 Background / History • December 2011 Board updated RPS — Included CEC definition of eligible renewable resources — RPS included eligible renewables including renewable energy credits (REC's) — This was the first time total MWh's sold to end -use customers was used in the calculation • 2011, Board also approved RPS Enforcement Program that included an annual review of RPS Procurement Plan • 2004 thru the present, CEC Guidebook for RPS Eligibility continued to change 0 New Information • POU enforcement regulations started in 2011 and regulations will become effective on October 1, 2013 • RPS enforcement regulations for the first time define for a specific purpose the term "Retail Sales" - "Sale of electricity by a POU to end -use -customers and their tenants, measured in MWh. This does not include energy consumption by a POU, electricity used by a POU for water Pumping,. or electricity produced for onsite consumption (self - generation)." 5 New Information • TDPUD's Renewable Energy Resources Procurement Plan will need to be updated and revised • These Changes to include: — Retail Sales definition; all retail sales less own use and water pumping — Procurement targets (section 3) — Carryover language for REC's — Reporting language (section 11) a New Information • Prior calculation methods — Correctly used when originally implemented — Includes — "Old RPS% Board Defined" — MWh of Board defined renewables that included large hydro divided by all retail sales — "Current RPS%" — MWh of all eligible renewables divided by all retail sales — "New RPS%" — MWh of eligible renewables divided by CEC defined retail sales 7 New Information Changing RPrS Definition by CEC TDPUD Use + CEC Definition of Sales Old (BPS% Year Retail Sales (M ) Water Dumping Retail Sales (MWh) Board Defined 2012 146,014 8,883 137,132 201111 149,978 8,340 1,41,638 2010 147,647 9,402 138,244 2009 146,875 110,539 136,336 34.2% 2008 148,305 111,003 137,302 24.4%© 2007 147,091 112,107 134,984 8.9% 2006 144,269 111,772 132,497 20.7% 2005 136,339 111,491 124,848 9.9% 2004 135,253 12,261 122,992 0.05% Current New 39.4% 42.0% 33.0% 35.0% 22.3% 23.8% 27.7% 29.8% 17.2% 18.6% 9.4% 9.4% Fiscal Impact • There is no direct financial impact associated with this item Recommendation Receive this report and provide comments