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AB 32 Implementation

AB 32 Implementation. Senate Subcommittee on Alternative Energy August 28, 2007 Robert Anderson – San Diego Gas and Electric. SDG&E Guiding Principles. Achieve Benefits at Minimal Cost

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AB 32 Implementation

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  1. AB 32 Implementation Senate Subcommittee on Alternative Energy August 28, 2007 Robert Anderson – San Diego Gas and Electric

  2. SDG&E Guiding Principles • Achieve Benefits at Minimal Cost • In order to maximize the benefits of a GHG emissions reduction program while minimizing the cost of achieving such benefits, a GHG emission reduction program should: • Be global or at least national in scope. • Include all regulated and significant sources of GHG emissions. • Be market-based with price signals encouraging technological innovation and investment, energy efficiency and conservation. • Ensure Continued Economic Growth • To continue to accommodate and support a target of economic growth a GHG emission reduction program should: • Have achievable GHG reduction goals and schedules that will account for growth and efficient use of resources, • Strive to reasonably limit emissions without imposing undue adverse impacts on the economy while including all significant individual sources and market sectors. • Help the United States and California’s economy to maintain a competitive advantage in international and national marketplaces. • Provide flexible compliance mechanisms and regulatory certainty. • Assure there is no windfall transfer of wealth to high emitters and those that have delayed action.

  3. SDG&E Guiding Principles - Continued • Ensure a Stable Regulatory Environment • Create a stable regulatory environment that ensures a diverse and reliable supply of energy and rewards early action to reduce GHG emissions • Maintain a secure and economic supply of energy. • Give full credit for all past efforts to reduce GHG emissions.

  4. SDG&E Resource Plan Actions • 2007 -2016 Resource Plan filed with the CPUC outlines a number of elements to reduce the GHG footprint of the portfolio used to service our customers • This plan forecasts a reduction in the total annual GHG by 20% from today’s levels even while providing customers with 12% more energy • Key Elements in SDG&E Supply plan • Aggressive energy efficiency programs that look to reduce each year’s forecasted growth. Goals are to achieve annual energy savings equal to 1 to 1 1/2% reduction in total sales annually • Demand Response programs and time of use rates to reduce demand at the time of peak by about 250 MW and shift energy usage to off peak hours • Renewable power will grow beyond the 20% target in 2010 and be ramping up towards a 33% in 2020 target.

  5. SDG&E Resource Plan Actions • By the end of the planning period, SDG&E’s portfolio will be made up of: • About 50% of the portfolio will come zero GHG emission resources (renewable power and nuclear) • About 10% from combined heat and power applications • Remaining 40% from gas fired resources with the vast majority from new combined cycle pants. • Keys for Future Cost Effective Reductions • New technology developments especially in the areas of load following and peaking resources • Flexible compliance schedules

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