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California PUC Suspends Decision to Allow TRECs for RPS

May 2010 - The California Public Utilities Commission (CPUC) voted on May 6th to suspend its previous March 11th decision which authorized the use of unbundled tradable renewable energy credits (TRECs) to meet the state's renewable portfolio standard (RPS). The commissioners also placed a moratorium on approval of any contracts for unbundled TRECs that were signed after its decision to allow TRECs to be used for RPS compliance.

The stay and moratorium will remain in place until the CPUC has resolved the petitions from Southern California Edison Company, Pacific Gas and Electric Company, San Diego Gas & Electric Company, and the Independent Energy Producers Association. The parties would like the CPUC to remove the 25% cap on use of TRECs for RPS compliance, and revise the criteria for determining whether a transaction is a TREC transaction or one involving bundled electricity.

The commission decided to suspend the decision given the complexity involved, noting that any modifications would need to be connected to other sections of the decision, other Commission decisions, or to rules of other organizations.

Additional Information - Decision Staying Decision 10-03-021 and Implementing Temporary Moratorium on Commission Approval of Certain Contracts

Contact: Terrie Prosper, 415-703-1366

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