Testimony of Aaron Johnson

Senate Energy, Utilities and Communications Committee

DRA is an independent organization within the CPUC that represents consumers in utility matters.
DRA’s statutory mission is to obtain the lowest possible consumer rates for utility services consistent with safe and reliable service levels.

DRA Supports Renewable Energy for California Consumers
California should increase renewable energy through efforts that produce the maximum renewable energy at minimum cost.
Consumers are protected from volatile natural gas prices by diversifying the utilities’ energy supply portfolios with renewable generation.

DRA Concerns with Renewable Portfolio Standard
RPS acceleration to 2010 (along with other state’s adding similar requirements) creates supply-demand imbalance that is driving up prices.
California’s requirement increases renewable generation to serve the state at 15 times the historical growth rate of these resources.
Price of wind generation signed to utility contracts has almost doubled over the last four years.
Benchmarking renewable resources to the cost of conventional generation eliminates the hedge they create against natural gas price volatility.
Greenhouse gas reduction and RPS goals overlap and are not integrated into an overall policy or program to limit cost and benefit duplication.

Monitoring renewable bids in utility solicitations to ensure lowest costs.
Ensuring that additional RPS costs are made transparent – these include transmission, re-selling excess power, and purchasing back-up generation.
Encouraging utility-owned generation to be part of competitive solicitations as a possible check on development costs.