Renewable and Distributed Power in California

CONTENTS

INTRODUCTION  ....  1

CURRENT STRESSES ....  6

The Policy Maze: California's Renewable and Distributed Power Programs  ....  6

Rising Utility Costs and Rates: Electricity “Sticker Shock”  ....  11

Cost Allocation: Uneven Cost Burdens on Utility Customers  ....  16

INSTITUTIONAL CONCERNS  ....  20

The Regulatory Institutional Framework  ....  20

The Utility Business Model  ....  27

OUR SOLUTIONS FOR CALIFORNIA  ....  36

Incremental Solutions: Treat the Stresses  ....  36

Fundamental Solutions: Reform the Regulatory and Business Environment  ....  41

APPENDICES  ....  46

NOTES  ....  51