City Council Agenda Report
Meeting Date: October 20, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Regulatory Mandate to Increase Procurement of Energy from Renewable Sources Recommendation
Receive and file the annual Renewable Portfolio Standard (RPS) Report for Calendar Year 2025 and Summary Report for Compliance Period 5
Background
The Vernon Public Utilities Department (VPU) has prepared the Renewable Portfolio Standard Annual Status Report for Calendar Year 2025. A Renewable Portfolio Standard (RPS) is a regulatory mandate to increase the generation of energy from renewable sources. VPU is responsible for implementing and enforcing a renewable portfolio standard for the utility that recognizes the Legislature's intent to encourage the use of renewable resources, while taking into consideration the standard's effects on rates, reliability, financial resources, and the goal of environmental improvement.
VPU is making progress toward achieving the goals established under Senate Bill 350 (SB 350), Senate Bill 100 (SB 100), and Senate Bill 1020 (SB 1020). These bills collectively establish a landmark policy requiring that renewable and zero-carbon resources supply 100 percent of retail electricity sales to customers by 2045.
VPU has procured eligible renewable resources to meet the mandated 46 percent RPS target for calendar year 2025.
VPU is actively pursuing additional renewable energy contracts for Calendar Years 2026 through 2045 to further advance the objectives of SB 350, SB 100, and SB 1020.
Nevertheless, VPU staff are currently encountering challenges with the delays and cancellations of renewable energy projects due to:
• Interconnection and transmission constraints;
• Tariffs imposed on solar panels and battery energy storage system (BESS) equipment; and
• The phase out of federal tax credits, under the recently signed “H.R. 1 - One Big Beautiful Bill Act,” that were previously available under the Inflation Reduction Act.
Despite these challenges, VPU staff are reviewing all options, including long-term contracts (i.e., ten years or more) to ensure that VPU meets the interim renewable targets for the remaining compliance periods.
Strategic Plan Goals
Goal 3: Advance Sustainability and Environmental Stewardship Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. 2025 RPS Status Report and Compliance Period 5 Totals