Section 2113 for the Commission’s authority to assess penalties. In 2015, SB 350 amended Section 399.15(b)(8) and required the Commission to set a schedule of penalties that will be comparable for electrical corporations and other retail sellers. Section 399.15(b)(8) provides: If a retail seller fails to procure sufficient eligible renewable energy resources to comply with a procurement requirement pursuant to paragraphs (1) and (2) and fails to obtain an order from the commission waiving enforcement pursuant to paragraph (5), the commission shall assess penalties for noncompliance. A schedule of penalties shall be adopted by the commission that shall be comparable for electrical corporations and other retail sellers. For electrical corporations, the cost of any penalties shall not be collected in rates. Any penalties collected under this article shall be deposited into the Electric Program Investment Charge Fund and used for the purposes described in Chapter 8.1 (commencing with Section 25710) of Division 15 of the Public Resources Code. The statute does not specify particulars of a schedule of penalties or describe what constitutes a schedule of penalties. In this decision, first, we determine whether the current penalty scheme can be characterized as a schedule of penalties. Then, we review the particulars of the current penalty scheme to determine what modifications, if any, are warranted in light of the new language added to Section 399.15(b)(8) by SB 350. Schedule of Penalties The Penalties and Waivers Ruling (January 4, 2018) presented the current penalty scheme in a table format for illustrative purposes and asked the parties whether any changes to the current penalty scheme were necessary. In their responses, parties express varying views. IEP, ORA, PG&E, SCE, SDG&E, and TURN/CUE do not recommend any substantive changes to the current scheme. Other parties offer a number of substantive modifications including removing
Section 2113 for the Commission’s authority to assess penalties. In 2015, SB 350 amended Section 399.15(b)(8) and required the Commission to set a schedule of penalties that will be comparable for electrical corporations and other retail sellers. Section 399.15(b)(8) provides: If a retail seller fails to procure sufficient eligible renewable energy resources to comply with a procurement requirement pursuant to paragraphs (1) and (2) and fails to obtain an order from the commission waiving enforcement pursuant to paragraph (5), the commission shall assess penalties for noncompliance. A schedule of penalties shall be adopted by the commission that shall be comparable for electrical corporations and other retail sellers. For electrical corporations, the cost of any penalties shall not be collected in rates. Any penalties collected under this article shall be deposited into the Electric Program Investment Charge Fund and used for the purposes described in Chapter 8.1 (commencing with Section 25710) of Division 15 of the Public Resources Code. The statute does not specify particulars of a schedule of penalties or describe what constitutes a schedule of penalties. In this decision, first, we determine whether the current penalty scheme can be characterized as a schedule of penalties. Then, we review the particulars of the current penalty scheme to determine what modifications, if any, are warranted in light of the new language added to Section 399.15(b)(8) by SB 350. Schedule of Penalties The Penalties and Waivers Ruling (January 4, 2018) presented the current penalty scheme in a table format for illustrative purposes and asked the parties whether any changes to the current penalty scheme were necessary. In their responses, parties express varying views. IEP, ORA, PG&E, SCE, SDG&E, and TURN/CUE do not recommend any substantive changes to the current scheme. Other parties offer a number of substantive modifications including removing
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