R1105005 Noble Solutions Comments on RNS Ruling 12mar2014

BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Continue
Implementation and Administration of
California Renewables Portfolio Standard
Program.
Rulemaking 11-05-005
COMMENTS OF
NOBLE AMERICAS ENERGY SOLUTIONS LLC
ON THE ALJ’s FEBRUARY 19, 2014 NET SHORT RULING
Greg Bass
Noble Americas Energy Solutions LLC
401 West "A" Street, Suite 500
San Diego, CA 92101
(619) 684-8199
[email protected]
March 12, 2014
Thomas Corr
Law Office of Thomas Corr
618 W. Lewis Street
San Diego, CA 92013
(619) 540-5694
[email protected]
Attorney for
Noble Americas
Energy Solutions LLC
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Continue
Implementation and Administration of
California Renewables Portfolio Standard
Program.
Rulemaking 11-05-005
COMMENTS OF
NOBLE AMERICAS ENERGY SOLUTIONS LLC
ON THE ALJ’s FEBRUARY 19, 2014 NET SHORT RULING
On February 19, 2014 ALJ DeAngelis issued a Ruling soliciting
comment on an Energy Division proposal to revise the methodology for
calculating a retail seller’s “renewable net short” (“RNS”) for certain
compliance reports under California’s Renewables Portfolio Standard
(“RPS”).1 Noble Americas Energy Solutions LLC (“Noble Solutions”) is a
California Electric Service Provider (”ESP”) 2 and thus a “Retail Seller”
within the meaning of the RPS Statute.3
1
Administrative Law Judge's Ruling Requesting Comments On Staff Proposal For Revising The
Methodology Used To Calculate The Renewable Net Short For Procurement To Meet The California
Renewables Portfolio Standard, dated February 19, 2014.
2
Public Utilities Code Sec. 218.3. Subsequent statutory references refer to the Public Utilities Code unless
otherwise specified.
3
Sec 399.12(j).
Noble Americas Energy Solutions LLC
1
On July 18, 2012, Noble Solutions offered Comments on a prior
Ruling inviting comment on a prior version of the RNS methodology.4 Just
as in 2012, Noble Solutions believes that many of the details contained in
the RNS methodology address issues related to an investor-owned utility
(”IOU”) procurement model, and are generally inapplicable to the ways in
which ESPs procure RPS products.
Noble Solutions does not take large long positions in RPS products
for the simple reason that its load is seldom committed for a period of more
than 18-24 months.5 Thus, an ESP’s RNS Report will have a much different
shape than an IOU’s RNS Report. The modifications to the RNS
methodology, dealing in issues of excess procurement, voluntary overprocurement, and risk-adjustment factors for forward contracts with facilities
in development, are matters almost exclusively in the domain of the IOU
procurement model.
Two other matters deserve attention here. First, although there is not
a single reference to confidentiality in the ALJ Ruling, the confidentiality
4
See Comments of Noble Americas Energy Solutions LLC On The July 11, 2012 Ruling On The StaffProposed RPS Net Short Calculation, July 18, 2012.
5
It should also be noted that like all ESPs, Noble Solutions’ RPS procurement is at risk until its RPS
Compliance Report has been approved. The IOUs’ forward RPS procurement is almost always through
contracts that have been pre-approved by the CPUC, and for which cost recovery is virtually guaranteed.
Noble Americas Energy Solutions LLC
2
rules currently in place6 must continue to apply. Second, the references to
the amendments to the RPS statute by AB 327, and any responses thereto in
the Comments, must not be used as the basis for any Finding as to the scope
of the Commission’s authority to “require the procurement of eligible
renewable energy resources in excess of the quantities specified in
[§399.15(b)(3)].” That matter must be determined only after appropriate
notice and an opportunity to be heard, perhaps in response to another Ruling
that specifically invites comments on this issue.
DATED: March 12, 2014
Respectfully submitted,
Greg Bass
Noble Americas Energy Solutions LLC
401 West "A" Street, Suite 500
San Diego, CA 92101
(619) 684-8199
[email protected]
/s/
Thomas Corr
Law Office of Thomas Corr
618 W. Lewis Street
San Diego, CA 92013
(619) 540-5694
[email protected]
Attorney for
Noble Americas
Energy Solutions LLC
6
See D.06-06-066, “Matrix of Allowed Confidential Treatment Energy Service Provider (ESP) Data,” as
modified by D.08-04-023.
Noble Americas Energy Solutions LLC
3
CERTIFICATE OF SERVICE
I hereby certify that I have duly served a copy of “COMMENTS OF
NOBLE AMERICAS ENERGY SOLUTIONS LLC ON THE ALJ’s
FEBRUARY 19, 2014 NET SHORT RULING,” dated March 12, 2014, via
electronic mail in compliance with the Commissionʼs Rules of Practice and
Procedure.
The assigned Administrative Law Judge has been served by first class mail.
A copy of the service list is attached.
Signed this 12th day of March, 2014 at San Diego, California.
Thomas Corr
Law Office of Thomas Corr
618 W. Lewis Street
San Diego, CA 92013
(619) 540-5694
[email protected]
Attorney for
Noble Americas
Energy Solutions LLC
VERIFICATION
This Verification is prepared in conformance with the requirements set forth in
“SCOPING MEMO AND RULING OF ASSIGNED COMMISSIONER,” dated July 8,
2011 in R. 11-05-005.
I am an employee of Noble Americas Energy Solutions LLC, and I am authorized to
make this verification on its behalf. The statements in the paper styled ““COMMENTS
OF NOBLE AMERICAS ENERGY SOLUTIONS LLC ON THE ALJ’s FEBRUARY
19, 2014 NET SHORT RULING,” dated March 12, 2014, are true and correct of my own
knowledge, except as to matters therein stated on information and belief, and as to those
matters, I believe them to be true.
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
Executed this 12th day of March, 2014 at San Diego, California.

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