This includes, but is not limited to, whole house electrification (moving away from natural gas), heat pump electrification, transportation electrification (which includes, but is not limited to, the direct or indirect use of electricity to power vehicles, trains, ships and othe r vessels), etc. PWP will demonstrate consideration of the factors specified in the CEC Enforcement Procedures in determining that this condition prevents timely compliance. • Cost limitations
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The City Council may adopt rules for cost limitations on the procurement expenditures used to comply with its RPS procurement requirements. Such cost limitation rules shall ensure that:
The limitation is set at a level that prevents disproportionate rate impacts. The costs of all procurement credited toward achieving th e RPS are counted toward the limitation, but the limitation will not include PWP’s costs to procure eligible renewable energy resources for PWP’s voluntary green pricing or shared renewable generation programs. In adopting cost limitation rules, the City Council will rely on all of the following:
The most recent renewables energy resources RPS Procurement Plan Procurement expenditures that approximate the expected cost of building, owning , and operating eligible renewable resources
The potential that some planned resource additions may be delayed or canceled When applying procurement expenditures under an adopted cost limitation rule, PWP will apply only those types of procurement expenditures that are permitted under the adopted cost limitation rule. Adopted cost limitation rules will include planned actions to be taken in the event the projected cost of meeting the RPS procurement requirements exceeds the cost limitation. • Portfolio balance requirement reduction
The City Council will allow for the reduction by PWP of the portfolio balance requirement for PCC 1 for a specific compliance period.191
The need to reduce the portfolio balance requirements for PCC 1 must have resulted because of conditions beyond PWP’s control.192
A reduction of the portfolio balance requirement for PCC 1 below 65% for any compliance period after December 31, 2016, will not be considered.
193
If PWP reduces its portfolio balance requirements for PCC 1, these changes must be adopted at a publicly noticed meeting, providing at least 10 calendar days advance notice to the CEC, and must include the appropriate information in an updated renewable energy resources RPS Procurement Plan submitted to the CEC. The notice to consider the portfolio balance requirement reduction and the RPS Procurement Plan must include the following information:
The compliance period for which the reduction may be adopted The level to which PWP has reduced the requirement
The reason or reasons PWP has proposed for adopting the reduction An explanation of how the needed reduction resulted from conditions beyond PWP’s control 194
191 Consistent with PUC section 399.16(e)
192 Specified in California Energy Commission Enforcement Procedures Section 3206(a)(2) 193 PUC section 399.16(e)
194 As provided in Section 3206(a)(2) of the California Energy Commission Enforcement Procedures DRAFT
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• For the period from January 1, 2021, to December 31, 2024, inclusive, PWP may adjust its renewable energy procurement targets to ensure the procurement of additional electricity from eligible renewable energy resources, in combination with the procurement of electricity from unavoidable long -term contracts and ownership agreements, does not exceed the total retail sales of PWP during that CP. PWP may limit its procurement of eligible renewable energy resources for that CP to the greater of (i) the quantity that would allow PWP’s total procurement of electricity products from eligible renewable energy resources during the compliance period, when combined with its unavoidable long- term procurement of coal -fired generation during the CP, to not exceed PWP’s total retail sales during the compliance period, or (ii) 33% of its retail sales for the CP. For purposes of this provision, unavoidable long- term contracts and ownership agreements means commitments for electricity from a coal-fired power plant, located outside the state, originally entered into by PWP before June 1, 2010 (e.g., the Intermountain Power Project), that are not subsequently modified to result in an extension of the duration of the agreement or result in an increase in total quantities of energy delivered during any CP.
PWP shall demonstrate that any cancellation or divestment of the commitment would result in significant economic harm to its retail customers that cannot be substantially mitigated through resale, transfer to another entity, early closure of the facility, or other feasible measures. • Adjustments may be required if an approved RPS Procurement Plan is subsequently projected to adversely affect system reliability or resource adequacy.
34. Reporting
PWP will submit reports to the CEC as required.195
• PWP’s reporting of costs to procure electricity products to meet its RPS procurement requirements will not include the costs to procure eligible renewable energy resources for P WP’s Green Power Option or shared renewable generation program.
• PWP’s costs for its Green Power Option or shared renewable generation program will be reported separately from its costs to procure electricity products to meet PWP’s RPS procurement requirements. • In addition to the applicable reporting requirements in the CEC Enforcement Procedures, if PWP excludes the eligible renewable energy resources procured for PWP’s Green Power Option or shared renewable generation program from its annual retail sales, PWP will report the following information:
The total number of MWh of electricity products from eligible renewable energy resources procured for the year that were credited to participating customers pursuant to PWP’s Green Power Optio n or shared renewable generation program
195 Section 3207 of the California Energy Commission Enforcement Procedures DRAFT
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Documentation demonstrating that the RECs associated with the electricity products were retired in WREGIS on behalf of the participating customer196
The total number of MWh of electricity products procured that PWP excludes from its annual retail sales Documentation showing that the RECs excluded from PWP’s annual retail sales meet the criteria for PCC 1 A description of PWP’s efforts to ensure the electricity products were procured from eligible renewable energy resources located in PWP’s service territory or in reasonable proximity to program participants
35. Enforcement
The City Council directs the City Manager to inform the City Council at a public meeting if PWP will not meet the renewable energy procurement requirements as set forth in this RPS Enforcement Program and the RPS Procurement Plan. The PWP General Manager will notify the CEC of such non-compliance in the manner and schedule established by the CEC pursuant to regulations developed by the CEC.
197
The CEC has adopted regulations specifying procedures for enforcement of this article. The regulations include a public process under which the CEC may issue a notice of violation and correction against PWP or any other local POU for failure to comply, and for referral of violations to the California State Air Resources Board for penalties.
Any complaint against PWP pertaining to the enforcement of an RPS requirement, or any regulation, order, or decision adopted by the CEC pertaining to the RPS, shall be filed in accordance with Title 20, Section 1240 of the California Code of Regulations.
A complaint may be issued for PWP’s failure to comply with any of the requirements in the applicable regulations, including, but not limited to, the following:
• Failure to meet an RPS procurement target for reasons other than PWP’s adopted cost limitations and/or delay of timely compliance rules, which the CEC determines comport with the RPS requirements specified 198
• Failure to meet a PCC 1 portfolio balance requirement 199 for reasons other than PWP’s adopted cost limitations and/or delay of timely compliance rules, which the CEC determines comport with the RPS requirements as specified
200
196 WREGIS is the Western Renewable Energy Generation Information System, an independent, renewable energy tracking system for the region covered by the Western Electricity Coordinating Council (WECC). WREGIS tracks renewable energy generation from units that register in the system by using verifiable data and creating renewable energy certificates (REC) for this generation. 197 PUC Section 399.30
198 Subdivisions (a)(2) and (3) of section 3206 of the California Energy Commission Enforcement Procedures 199 Subdivision (c) of Section 3204 of the California Energy Commission Enforcement Procedures 200 Subdivisions (a)(2) and (3) of Section 3206 of the California Energy Commission Enforcement Procedures DRAFT
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• Failure to adopt an RPS Procurement Plan, RPS Enforcement Program or Plan, or provide notice, disclosure, or other information to the CEC and public as specified201 • Failure to submit a complete annual, compliance, or other report, or other documentation or information as specified202
• Beginning January 1, 2021, failure to meet the long-term contracting requirement as specified203
36. Version History
• Version 1: Initially adopted December 12, 2011
New mandate to comply with SBX1 2
• Version 2: Amended July 22, 2013
Include updates on contracts and other processes
• Version 3: Amended January 29, 2018
Show compliance with SB 350
Include updates on contracts and other processes
• Version 4: Amended December 10, 2018
Show compliance with SB 100
Include updates on contracts and other processes, as recommended by the PWP 2018 Power IRP • Version 5: Amended DATE
Include updates on contracts and other processes, as recommended by the PWP 2023 Power IRP
201 Section 3205 of the California Energy Commission Enforcement Procedures 202 Section 3207 of the California Energy Commission Enforcement Procedures 203 Section 3208 of the California Energy Commission Enforcement Procedures
100 Garfield Avenue, Room N 106
Pasadena, California 91101
626.744.4005