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Renewable Portfolio Standard
Annual Status Report for Calendar Year 2025
& Summary Report for Compliance Period 5
Background
Vernon Public Utilities (VPU) is responsible for implementing and enforcing a Renewable Portfolio Standard (RPS) that reflects the Legislature’s intent to encourage the use of renewable resources, while also considering the impact of the standard on rates, reliability, financial resources, and environmental goals.
As specified in the RPS Program and California Energy Commission (CEC) regulations, VPU is not required to procure an exact fixed quantity of RPS-eligible resources in each individual year during Compliance Period 5 (CP5). However, VPU must procure sufficient eligible renewable resources over the full three-year compliance period to meet or exceed the CP5 procurement requirement, as calculated using the equation below:
(Approximately 46% of 2025 retail sales) +
(Approximately 49% of 2026 retail sales) +
(Approximately 52% of 2027 retail sales)
This results in an average procurement target of approximately 50% for the entire compliance period, which is evaluated over the 2025–2027 compliance period.
As part of its RPS compliance obligations, VPU must also comply with the RPS long-term contracting requirements applicable to Publicly Owned Utilities (POUs). On May 7, 2020, the CEC issued proposed regulations to implement changes to these requirements under the Clean Energy and Pollution Reduction Act (SB 350). SB 350 established a requirement, effective January 1, 2021, that at least 65% of RPS-eligible procurement be sourced through contracts with terms of 10 years or more.
All of VPU’s existing and future renewable energy projects qualify under the “Long-Term Procurement Requirements” as defined by the CEC.
Performance Summary
Calendar Year 2025 marks the first year of CP5, which covers January 1, 2025, through December 31, 2027.
The annual RPS requirement for 2025 is approximately 46%, and VPU’s CY 2025 procurement will be included in the overall CP5 compliance evaluation. VPU procured approximately 52% for CY 2025. This higher level of procurement is primarily due to deliveries under several short-term renewable energy contracts that provide flexibility to determine when the renewable energy is delivered within the applicable contract terms. Several of these contracts exercised their delivery options during CY 2025, resulting in higher renewable procurement for the year. VPU’s CY 2025 renewable procurement was supplied through Vernon’s long-term solar contracts and short-term renewable energy purchases, as applicable. A summary of CY 2025 totals is provided in Table 1.
Renewable Energy Procurement in Calendar Year 2025
Pursuant to VPU’s RPS Procurement Plan and Enforcement Program, action has been taken to acquire renewable energy resources to meet the RPS requirements. Below is a brief description of the renewable resources utilized to achieve compliance.
Sustainable Power Group (sPower) Antelope DSR Solar Project The Antelope DSR Solar Project, developed by Sustainable Power Group (sPower), was selected from numerous responses to the Southern California Public Power Authority’s (SCPPA) Request for Proposals (RFP) issued in 2014. In collaboration with other SCPPA members, VPU staff conducted a comprehensive review of the 2 | Page
submitted projects and determined that the Antelope DSR Project offered several superior characteristics and a highly competitive pricing structure compared to other renewable projects considered at the time.
The final project pricing was the lowest among technologies providing on-peak energy profiles. Energy generated by the project qualifies as Portfolio Content Category 1 (PCC1), the most valuable and preferred class of renewable energy under SB X1-2.
The project is located in the City of Lancaster, Los Angeles County, and has been in full commercial operation since January 1, 2017. VPU holds a 25-megawatt (MW) entitlement, along with associated environmental attributes, under a 20-year power purchase agreement.
Astoria Phase II Solar Project
Astoria II LLC has entered into a long-term Power Purchase Agreement (PPA) with the SCPPA to develop a solar photovoltaic facility with a net capacity of approximately 175 MW. This contractual arrangement is considered firm generation and is jointly shared with other SCPPA municipal utility partners. By collaborating with these partners, VPU gains the critical mass needed to participate in large-scale renewable energy projects.
This joint strategy helps reduce construction, financing, and operational costs, enabling VPU to achieve economies of scale and secure more favorable financing terms.
The project, located in Kern County, began full commercial operation on December 31, 2016, with SCPPA taking delivery of 75 MW of the energy produced. VPU, along with five other SCPPA member utilities, is participating in the PPA to purchase energy from the facility over a 20-year term.
The Vernon City Council approved the PPA (through SCPPA) with Astoria II to supply renewable energy to the VPU. Under this agreement, VPU is entitled to:
20 MW of capacity from January 2017 through December 2021 30 MW of capacity from January 2022 through December 2036 Puente Hills Gas to Energy Project
The Puente Hills Landfill Gas-to-Energy Station was constructed by the Los Angeles County Sanitation District in the 1980s. Located in southeastern Los Angeles County, near VPU’s service area, the facility has been in full commercial operation since January 1987 and has maintained an average online availability of 95%. It produces approximately 46 MW of generating capacity.
The facility is a conventional Rankine Cycle steam power plant that uses landfill gas (LFG) as its primary fuel source. The LFG is combusted in boilers to produce superheated steam, which drives a steam turbine generator to produce electric power.
VPU, through a PPA with SCPPA, secured 10 MW of renewable energy from the Puente Hills facility beginning January 1, 2017, through December 31, 2030. In 2020, VPU received an average of just over 5 MW from this facility.
Desert Harvest II Solar Project
The Desert Harvest Solar Photovoltaic Facility was developed by EDF Renewable Development Group and is located in Riverside County. The facility has a net capacity of 150 MW.
VPU, in partnership with Anaheim Public Utilities and Burbank Water and Power, is participating in a PPA through SCPPA to purchase 70 MW of the facility's output. Under this agreement, VPU holds a 12 MW entitlement, along with the associated environmental attributes, for a 20-year term.
The facility achieved commercial operation on December 17, 2020. 3 | Page
Daggett Solar 2 + BESS Project
The Daggett Solar Power 2 Photovoltaic Facility, paired with battery storage, was developed by Clearway Renewables Development Group in San Bernardino County. VPU holds exclusive rights to 60 MW of solar energy and 30 MW of battery capacity.
In collaboration with another SCPPA municipal utility, the City of Cerritos, which has committed to the remaining 5 MW of solar and 3 MW of battery capacity, VPU participates in a PPA to acquire a total of 65 MW of solar and 33 MW of battery output.
This project represents VPU’s first venture into battery storage technology, allowing energy to be stored from the solar system or the grid during the day, when prices are low, and then discharged during peak evening hours, when prices are higher.
VPU has secured a 60 MW entitlement, along with associated environmental attributes, under a 20-year agreement. The project achieved commercial operation on December 12, 2023.
Harquahala Sun I Solar Project
The Harquahala Sun I Photovoltaic Facility was developed by BP Energy Company and is located in Maricopa County, AZ. The facility has a net capacity of 150 MW.
Beginning January 01, 2026, VPU is participating in a PPA directly with BP Energy to purchase approximately 50 MW of the facility's output. Under this agreement, VPU will receive approximately 140,000 to 200,000 Renewable Energy Credits (REC’s) annually for a 10-year term.
The facility achieved commercial operation in April 2025.
NRG Solar Project
Beginning January 1, 2028, VPU will participate in a PPA with NRG Business Marketing LLC to purchase approximately 25 MW of renewable energy. Under the terms of the PPA, NRG may satisfy VPU's REC deliveries by drawing on a portfolio of eligible renewable generating facilities identified in the agreement. VPU is expected to receive approximately 70,000 to 100,000 RECs annually over the 10-year term of the agreement.
Short Term Purchases
Short-term purchases for CP5 were as follows:
PCC1 – 147,098 MW’s
PCC2 – 100,000 MW’s
PCC3 – 96,442 MW’s
The following tables provide an overall assessment of VPU renewable resources and RPS requirements for CY 2025 (Table 1).
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Table 1: RPS Compliance Status Report for CY 2025
Summary of Procurement Plan to meet Future RPS Requirements VPU is committed to meeting all future renewable energy procurement targets, subject to factors beyond its control. With increasing RPS mandates for POUs over the next decade, VPU recognizes the need to enhance and diversify its renewable energy portfolio. To address this, VPU plans to develop a balanced RPS strategy that incorporates solar PV, wind energy, and other renewable resources, based on projected energy demand, economic feasibility, and project availability. An Integrated Resource Plan has also been completed to help guide procurement decisions.
To comply with RPS mandates, VPU will preserve its existing renewable resources, carry over any excess procurement from one compliance period to the next, and pursue timely, cost-effective opportunities to expand its portfolio. This includes seeking short-term purchase options to diversify its energy mix while protecting ratepayers from sharp price increases that could negatively impact economic stability and growth within the city.
In accordance with state regulations effective January 2017, at least 75% of RPS procurement used for compliance must qualify as Bucket 1 (PCC1), which typically involves bundled energy from California-based renewable power plants. Additionally, beginning January 1, 2021, at least 65% of RPS procurement must be sourced through contracts with terms of 10 years or more.
Given the limited availability of Bucket 1 resources and the typical three- to five-year development timeline for new utility-scale renewable projects, VPU is working closely with the SCPPA to access a broader range of renewable resources. Through SCPPA’s competitive procurement process, Vernon can take advantage of opportunities that might otherwise be inaccessible due to its smaller size.
Retail Sales (MWh) 1,023,678
Renewables Requirement (%) 46%
Renewables Requirement (MWh) 470,892
RPS Resources
Antelope DSR (Solar) 61,199
Astoria II (Solar) 57,937
Desert Harvest (Solar) 31,703
Puente Hills (Landfill Gas) 33,373
Daggett (Solar) Banked
Bucket 1 (PCC1) Short Term 147,098
Bucket 2 (PCC2) 100,000
Bucket 3 (PCC3) 96,422
Total Renewable Procured (MWh) 527,732
Total Renewable Procured (%) 52%
Calendar Year 2025
Renewable Portfolio Standard Compliance
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VPU has secured multi-year contracts for solar and landfill gas power generation to meet the State of California’s RPS requirements, as outlined in SB 350 and SB 100. Since these resources became operational on January 1, 2017, the share of bundled renewable energy in VPU’s supply portfolio has significantly increased. This has positioned the City well to achieve approximately 50% target for CP5.
The following table summarizes VPU’s procurement plans and activities for Compliance Periods 5 through 7, detailing the renewable energy purchases required to meet the goals of SB 350, SB 100, and SB 1020.
Table 3: RPS Compliance (January 1, 2025 – December 31, 2033) Actuals Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033
A) Retail Sales (MWh) 1,023,678 1,091,939 1,091,939 1,119,450 1,147,649 1,147,649 1,147,649 1,147,649 1,147,649 Required Renewables % 46.67% 49.33% 52.00% 54.67% 57.33% 60.00% 60.00% 60.00% 60.00% Category 1 75% 75% 75% 75% 75% 75% 75% 75% 75%
Category 2 15% 15% 15% 15% 15% 15% 15% 15% 15%
Category 3 10% 10% 10% 10% 10% 10% 10% 10% 10%
Required Renewables (MWh)
Category 1 403,990 358,313 425,856 459,003 493,460 516,442 516,442 516,442 516,442 Category 2 80,798 71,663 85,171 91,801 98,692 103,288 103,288 103,288 103,288 Category 3 53,865 47,775 56,781 61,200 65,795 68,859 68,859 68,859 68,859 B) Renewables Requirement Total (MWh) 477,751 538,654 567,808 612,003 657,947 688,589 688,589 688,589 688,589 CP5 (2025-2027) CP7 (2031-2033) CP6 (2028-2030)
VPU RPS Master