PG&E Corporate Responsibility and Sustainability Report 2018

Northern California Wildfires

Clean Energy

PG&E continues to deliver clean energy to our customers, and we stand ready to do our part to meet California’s evolving clean energy policies and standards. We are committed to reducing greenhouse gas emissions, providing safe and reliable energy, and growing California’s economy, all while keeping service affordable for customers.

Our Approach

Approved in 2003, California’s Energy Action Plan establishes a “loading order” that prioritizes energy efficiency, demand response and renewable energy over using fossil fuels to meet customer demand.

Senate Bill (SB) 350, which PG&E supported, increased California’s Renewables Portfolio Standard (RPS) to 50 percent by 2030 and doubled state energy efficiency goals. In September 2018, SB 100 was signed into law and increases and accelerates the RPS targets and requires state energy agencies to include a 100 percent clean energy target in their planning goals. These targets guide our programs, tools and investments in our energy network.

Reflecting California’s changing energy landscape, Pacific Gas and Electric Company announced a Joint Proposal with labor and leading environmental organizations in June 2016 that would increase PG&E’s investment in energy efficiency and renewables beyond current state mandates while phasing out PG&E’s production of nuclear power in California by 2025. In January 2018, the California Public Utilities Commission (CPUC) approved several key elements of the joint proposal agreement, including approval to cease plant operations once the Nuclear Regulatory Commission operating licenses for PG&E’s Diablo Canyon Power Plant expire and deferred consideration of replacement resources to the CPUC’s Integrated Resource Planning proceeding.

PG&E continues to invest in energy storage technology as well. Building on the success of our Vaca-Dixon and Yerba Buena battery storage systems, PG&E deployed its third energy storage facility in Yuba County in 2017. Co-located with PG&E’s Browns Valley substation roughly 50 miles north of Sacramento, the new 500 kW/2,000 kWh battery storage system is PG&E’s first lithium-ion energy storage facility and features Tesla Powerpack technology.

Additionally, PG&E strengthened its commitment to a clean energy future by proposing six new energy storage projects totaling 165 MW to the CPUC in late 2017. This is in addition to the 16.5 MW PG&E already owns or has under contract. California requires investor-owned utilities to procure 1,325 MW of storage by 2020, and PG&E’s share is 580 MW. In addition, PG&E has proposed programs and investments for another 167 MW of distribution-connected energy storage.

Measuring Progress

By the end of 2017, 33 percent of the electricity that we delivered to customers came from Renewables Portfolio Standard-eligible resources. The chart below shows our overall electricity supply mix for 2017, which included both the energy that PG&E generated and the energy that PG&E purchased from third parties on behalf of customers.

PG&E’s 2017 Electric Power Mix Delivered to Retail Customers
Eligible Renewable (see accompanying breakdown) 33%
Natural Gas 20%
Nuclear 27%
Large Hydroelectric 18%
Coal Footnote 1 0%
Other Footnote 2 0%
Unspecified Power Footnote 3 2%
  • 1. Refers to PG&E electricity generated under contracts with third parties.1
  • 2. Includes diesel oil and petroleum coke (a waste byproduct of oil refining).2
  • 3. Refers to electricity from transactions that are not traceable to specific generation sources.3
Breakdown: Composition of PG&E’s 2017 Total Eligible Renewable Resources Footnote 1
Solar 13%
Wind 8%
Geothermal 5%
Biomass and Waste 4%
Eligible Hydroelectric 3%
  • 1. As defined in Senate Bill 1078, which created California’s Renewables Portfolio Standard, and Senate Bill 1038, which modified the definition of “in-state renewable electricity generation technology,” an eligible renewable resource includes geothermal facilities, hydroelectric facilities with a capacity rating of 30 MW or less, biomass and biogas, selected municipal solid waste facilities, photovoltaic, solar thermal, and wind facilities, ocean thermal, tidal current, and wave energy generation technologies. These figures are preliminary and will not be finalized until verified by the California Energy Commission.1

Looking Ahead

PG&E has long been committed to clean energy and energy efficiency, dating back to energy conservation programs in the 1970s and our first clean energy power purchase contracts in the early 2000s. In 2017, PG&E reached California’s 2020 renewable energy goal three years ahead of schedule and we are well positioned to meet the state’s new 60 percent by 2030 renewable energy mandate set forth in SB 100.