Volume I. Part I - California Public Utilities Commission

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i. Energy Action Plan II’s Goal of 33% Renewables by
2020
In the EAP II, the Commission indicated that it wanted to identify the steps
necessary to achieve the 2010 target of 20% renewables, “as well as higher goals
beyond 2010, such as Governor Schwarzenegger’s proposed goal of 33% of
electricity sales by 2020.” 56 PG&E has been working aggressively to achieve the
more immediate goal of 20% renewables by 2010, which is now mandated by
SB 107. PG&E intends to continue to procure renewable power after 2010, and will
direct its renewables procurement efforts to achieve Commission and legislative
directives for the future. In its recommended plan, PG&E proposes procuring beyond
the 20% target in 2010, subject to market availability. PG&E believes any specific
expanded targets, beyond the 20% goal, would be premature until policy goals
concerning GHG emission standards are clarified and a detailed feasibility analysis
can be conducted. Volume 1, Section VI.C.2 provides information as to the potential
cost of implementing a path to achieve the 33% goal by 2020, and Volume 2,
Section I.B.5 describes the impact of proceeding with this goal.
4. The Scope of PG&E’s 2006 Long-Term Procurement Plan
a. Duration of PG&E’s 2006 Long-Term Procurement
Plan
PG&E’s 2006 LTPP addresses procurement that occurs during the 2007-2016
time period. However, some aspects of the procurement plan cover a longer time
period. For example, after including preferred resources, PG&E is proposing
procuring 2,300 MW in new dispatchable and operationally flexible resources to be
available for operation beginning in 2011. These resources will be procured through
a Request for Offer (“RFO”) for long-term contracts. Although delivery from these
new resources will commence in the 2007-2016 time period, deliveries will continue
well beyond 2016. Moreover, to the extent PG&E selects a contract offered in a
Long-Term Request for Offers (“LTRFO”) that ultimately results in utility ownership,
such as the contracts for Humboldt and Colusa facilities executed in March and April
2006, these facilities provide actual deliveries over an even longer planning horizon.
PG&E is also requesting “rolling” authority to enter into short-term and
medium-term (i.e., up to five years) procurement contracts. PG&E’s authority to
56 EAP II at 8.
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