Decisions of the California Public Utilities Commission Concerning Utility Purchases of Geothermal Power

Abstract

Pursuant to an order by the California Public Utilities Commission, California utilities have filed standard offers for purchase of as available and firm electricity generated by small non utility power producers. This paper summarizes recent rulemaking actions by the California Public Utilities Commission in establishing standards for these utility power purchases. Since 1979, the Commission has endorsed payment of full avoided costs to co generators and small power producers on the grounds that such a policy would maximize independent power production from diverse sources. The Commission believes that this production will benefit California rate payers by increasing diversity of supply and developing in state resources.