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to limit the total costs of achieving RPS goals, not to limit some subset of those costs attributable
to procurement resulting from the annual RPS solicitations. The Decision therefore provides no
valid basis for concluding that the RAM program does not violate the RPS statute’s cost
limitation provisions.
B. The Decision Violates The RPS Statute’s Explicit Direction That A Retail
Seller Cannot Be Required To Procure Greater Than 20 Percent
Renewables.
Public Utilities Code Section 399.15(b)(1) explicitly states that “[a] retail seller with 20
percent of retail sales procured from eligible renewable energy resources in any year shall not be
required to increase its procurement of renewable energy resources in the following year.” 11/
The Decision does not, however, limit an IOU’s obligation to procure its allocated capacity
under the RAM program by its achievement of the 20 percent RPS goal. 12/
In other words, under
the Decision, an IOU would have a continuing procurement obligation under the RAM even if it
reached its 20 percent RPS target. 13/
The Decision’s failure to allow an IOU to suspend its RAM
program upon reaching its RPS goals violates Public Utilities Code Section 399.15(b)(1), which
clearly states that the Commission cannot require an IOU to continue to procure after it has
achieved 20 percent renewables. The Decision’s claim that “RPS program targets are
minimums, not maximums” 14/ is inconsistent with this statutory language, and its argument that
subjecting the 1000 MW cap to further reductions based on achievement of RPS targets “would
add unnecessary confusion and complexity” 15/ provides no basis for disregarding a clear
statutory mandate. The Commission should grant rehearing and modify the Decision to be
after the IOU has exhausted its AMFs.” Res. E-4199 at 18-19. It did not state that IOUs can limit RPS
procurement to contracts resulting from annual RPS solicitations priced at or below the MPR, which
appears to be the position advanced in the Decision.
11/ Pub. Util. Code § 399.15(b)(1) (emphasis added).
12/ Decision at 28.
13/ See Decision at 28 (rejecting SDG&E’s argument that an IOU should be able to suspend its RAM when its
RPS program target is reached).
14/ Decision at 28.
15/ Ibid.
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