New federal policies have opened the gates to utility investments in renewable generating plants. Some states, however, still make it difficult for utilities to put such assets into the rate base...
when comparing the "No RPS" to the "Full RPS" case. This is primarily because our market model automatically installs capacity as needed to meet demand, thereby eliminating the possibility of unpleasant price surges (if only the real world worked in a similar manner). It bears mentioning that market clearing energy prices do not reflect the capital investment cost required to bring new resources to market. We expect total investment costs under California's proposed renewable energy capacity expansion to be substantially higher than the "business-as-usual" capacity expansion plan embodied in the "No RPS" case.
Articles found on this page are available to subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.