Electric Utility Restructuring and the California Biomass Energy Industry

A shock jolted the electric power industry in April 1994, when the California Public Utilities Commission (CPUC) announced its intention to 'restructure' the industry. The proposal, commonly referred to as retail wheeling, is based on the principle that market deregulation and competition will bring down the cost of electricity for all classes of customers. It would effectively break up themonopoly status of the regulated utilities and allow customers to purchase electricity directly from competing suppliers. According to the original CPUC proposal, cost alone would be the basis for determining which generating resources would be used. The proposal was modified in response to public inputs, and issued as a decision at the end of 1995. The final proposal recognized the importanceof renewables, and included provisions for a minimum renewables purchase requirement (MRPR). A Renewables Working Group convened to develop detailed proposals for implementing the CPUC's renewables program. Numerous proposals, which represented the range of possible programs that can be used to support renewables with the context of a restructured electric utility industry, were received.