On January 3, 2011, the Commission entered a report and policy statement concerning acquisition of renewable resources by investor-owned utilities. In the Report and Policy Statement, the Commission describes the issues addressed and stakeholder comments received during the inquiry on appropriate regulatory treatment for acquisition of renewable energy resources. The report explains the Commission's process during the inquiry, the Commission's statutory authority governing renewable resources and utility resource acquisitions and how the Commission has applied this authority to prior resource acquisitions. Through a policy statement, the Commission discusses the criteria by which it will review the prudence of acquisitions of renewable resources or Renewable Energy Credits in three scenarios: (1) when the acquisition is to meet Washington's renewable portfolio standards (RPS) contained in the Energy Independence Act (EIA, also known as Initiative 937 or I-937); (2) when the acquisition is to meet the RPS, but the acquisition is in advance of the RPS deadline; and (3) when the acquisition is to meet an energy demand and the utility has already acquired other resources to meet the RPS. The Commission also discusses the conditions it will use to pre-approve utility acquisition of such renewable energy resources.

BACKGROUND:
The Commission filed a Preproposal Statement of Inquiry (CR-101) with the Code Reviser on May 19, 2010, to examine whether the Commission should consider adopting new regulations relating to the acquisition of renewable resources by Washington's investor owned electric utilities.

Specifically, the Commission will review and discuss:

1. The progress of investor-owned utilities in meeting the renewable portfolio standards (RPS) set by the Energy Independence Act (Initiative 937), RCW 19.285;
2. Whether the existing statutory and regulatory frameworks impede compliance with RPS requirements;
3. Whether the statutory and regulatory frameworks should encourage acquisition of renewable resources in excess of that required by the RPS;
4. Whether the Commission should consider adopting rules or new regulatory practices that would provide incentives for utilities and customers to acquire renewable resources; and,
5. Whether the Commission should propose any legislative changes relative to incentives for acquisition of renewable resources by utilities and customers.

Please click on this "link" to view the Notice the Commission issued on May 21, 2010.

The Commission invites interested persons to participate in the proceeding according to the following schedule: