Section 399.14 Of Article 16. California Renewables Portfolio Standard Program From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 16.
399.14
. (a) (1) An electrical corporation, pursuant to Chapter 5
(commencing with Section 1001), and in order to meet its unmet
renewables portfolio standard procurement requirements, may apply to
the commission for approval to construct, own, and operate an
eligible renewable energy resource.
(2) If the proposed eligible renewable energy resource complies
with the requirements of subdivision (b), the commission shall
approve an application filed pursuant to paragraph (1), until the
commission has approved applications for eligible renewable energy
resources for the electrical corporation that, when constructed and
operating, will provide 8.25 percent of the electrical corporation's
anticipated retail sales by December 31, 2020, and thereafter.
(3) The commission may approve additional applications for
eligible renewable energy resources once the commission has approved
sufficient applications for eligible renewable energy resources for
the electrical corporation that, when constructed and operating, will
provide 8.25 percent of the electrical corporation's anticipated
retail sales by December 31, 2020, and thereafter.
(b) The commission shall not approve any application by an
electrical corporation pursuant to subdivision (a) unless both of the
following conditions are met:
(1) The eligible renewable energy resource utilizes a viable
technology at a reasonable cost.
(2) The eligible renewable energy resource provides comparable or
superior value to ratepayers when compared to then recent contracts
for generation provided by eligible renewable energy resources.
(c) In approving any application by an electrical corporation for
approval to construct, own, and operate an eligible renewable energy
resource, the commission shall apply traditional cost-of-service
ratemaking. When applying traditional cost-of-service ratemaking, the
commission, in the certificate authorizing the new construction,
shall specify the maximum cost determined to be reasonable and
prudent for the construction of the facility and the cost of initial
operation of the facility. Upon a filing by the electrical
corporation, the commission may authorize an increase in the maximum
cost of construction if it determines that the cost has in fact
increased, that the cost increase is determined to be reasonable and
prudent, and that the present or future public convenience or
necessity require construction of the project at the increased cost.