Gino DiCaro

CPUC reneges on previous decision

By Gino DiCaro, VP, Communications

Capitol Update, May 14, 2010 Share this on FacebookTweet thisEmail this to a friend

Last week, California’s Public Utilities Commission (CPUC) voted to overturn an earlier decision that placed a 25% limit on the amount of out-of-state tradable renewable energy credits (TRECs) utility companies could apply towards the State’s renewable energy standards.

The previous decision was supported by environmentalists as well as several key Democratic lawmakers who claimed that utility companies should use in-state renewable energy sources in order to foster innovation and create jobs. However, the earlier decision was not supported by Governor Arnold Schwarzenegger who claimed that allowing companies to utilize out-of-state resources (without limits) could lower energy costs through market competition.  Investor-owned utilities and developers also complained that the new rules were too strict.

The CPUC will now consider the specific issues raised before clarifying the rules for this market.

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