To comply with this law. We expect that will cost us about 50,000. The act also allows for cost limitations, as i mentioned, if exceptions. The exceptions briefly are that our obligation is capped at the same level as other publicly owned utilities. So, for example, the requirement for publicly owned utilities is 20 of your retail sales need to be met by rps compliant resources. In 2012 that rises to 33 by 2020. We may delay compliance due to circumstances beyond our control, and we may adopt a cost limitation. So, putting the cap and the delay ability together, for example, if we had an unexpected outage that was significant, but made it so our hetchy generation was less than 67 of our retail sales, that would mean that we would only have to procure up to 33 of Renewable Power and we wouldnt have to do meet that compliance requirement within the same calendar year. Wed have some flexibility on delaying our compliance due to that unforeseen circumstance. So, focus just briefly on the c
Procurement be from Renewable Energy credits. So, the way theyre titled would be appropriate . They would be. They would be qualified resources under state law. If we had if we had them, yes. And we have no geo thermal here . Correct. We have purchased it in the part, but we do not have any in our portfolio today. Where do we purchase it from . We purchase from the geo thermal system in guyser. In guyser ville . Yes. Are they acceptible our hydro now . Yes, commissioner, they are accepting our hydro. Yeah, another hooray, thats three in one meeting. [laughter] we have we were able through the legislative process to explain that were we to have the same rules applied to us, we would just be selling our hydro and substituting in other renewable resources. The objective of the law is to in part to reduce the emissions from power plants. We dont have any power plants that emit. [inaudible]. Yeah, i have a couple of questions. So, we cant bank the rps resources . We can. Under the rules, we
Cost limitation. So, putting the cap and the delay ability together, for example, if we had an unexpected outage that was significant, but made it so our hetchy generation was less than 67 of our retail sales, that would mean that we would only have to procure up to 33 of Renewable Power and we wouldnt have to do meet that compliance requirement within the same calendar year. Wed have some flexibility on delaying our compliance due to that unforeseen circumstance. So, focus just briefly on the cost limitation. You know, its really intended to allow us to address uncertainties, like extreme dry year or plant outages. Allows us to budget for any contingencies. We presently have in our adopted budget a budget line item for Risk Management as a contingency fund. At this point that is set at 4 million a year. We are proposing that the cost limitation be limited excuse me, that the use of that Risk Management fund, that 4 million, be applied as it is today, but also be available to us to mee
Customers in future budget years. Its really a safety valve to make sure that our compliance doesnt push costs up unreasonably. President torres, you alluded to the timeline. Let me put it up on the screen here so that you can see more specifically where were at. Right, thats good for the public to see that. Yes. My other question is in terms of the rps eligible, the renewables, what percentage are we looking at in terms of renewables . We have solar, wind right. So, now our resource mix is our biogas, our hydro and solar. Okay. And because we have this separate section of the rps law, we dont have to procure beyond those resources except very infrequently. And we are proposing that that procurement be from Renewable Energy credits. So, the way theyre titled would be appropriate . They would be. They would be qualified resources under state law. If we had if we had them, yes. And we have no geo thermal here . Correct. We have purchased it in the part, but we do not have any in our port