PG&E Corporate Responsibility and Sustainability Report 2018

PG&E Chapter 11 Update

Renewable Energy

PG&E remains committed to meeting California’s evolving clean-energy policies and standards, which we are working to achieve by delivering some of the nation’s cleanest energy, reducing our greenhouse gas emissions, and providing safe and reliable energy, all while working to keep service affordable for customers. In 2018, nearly 39 percent of our delivered electricity came from renewable sources, including solar, wind, geothermal, small hydroelectric and various forms of bioenergy, and over 80 percent of the electricity we provided to customers came from greenhouse gas-free resources.

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.

In September 2018, California Senate Bill (SB) 100 was signed into law, increasing the Renewables Portfolio Standard (RPS) target to 60 percent by December 31, 2030, and establishing a new statute that sets a policy of meeting 100 percent of retail sales from eligible renewables or zero-carbon resources by December 31, 2045. Additionally, Governor Jerry Brown signed an Executive Order in September 2018 directing all sectors of the California economy to achieve carbon neutrality by 2045 and to be net greenhouse gas negative thereafter. PG&E is committed to meeting California’s vision for a sustainable energy future in a reliable and cost-effective manner for customers.

Reflecting California’s changing energy landscape, the California Public Utilities Commission (CPUC) approved in 2018 several key elements of a joint proposal with labor and environmental organizations that would phase out PG&E’s production of nuclear power in California by 2025 while still meeting California’s greenhouse gas reduction goals.

Additionally, PG&E has met or exceeded virtually all mandated energy storage procurement targets. In November 2018, the CPUC approved PG&E’s proposal for 567.5 MW of storage, including a utility-owned 182.5 MW battery energy storage system and a third-party-owned 300 MW system, both to be located in Moss Landing, California.

Measuring Progress

We continue to deliver some of the nation’s cleanest energy—with 38.9 percent coming from renewable sources—and we are on our way to meet the state’s 60 percent by 2030 renewable energy mandate.

In recent years, the dynamics of California’s energy landscape have changed, highlighted by the expansion of retail customer choice and the growth of distributed generation, such as private rooftop solar. These dynamics have affected PG&E’s renewable portfolio, allowing us to shift from a focus on incremental procurement to now managing and optimizing our existing portfolio, including through the sales of excess renewable energy. This ultimately influences our end-of-year RPS position.

The chart below shows our overall electricity supply mix for 2018, which included the energy that PG&E generated, energy that PG&E purchased from third parties on behalf of customers and energy that PG&E sold back into wholesale markets.

By the end of 2018, 38.9 percent of the electricity that we delivered to customers came from RPS-eligible resources.

PG&E’s 2018 Electric Power Mix Delivered to Retail Customers Footnote 1
Eligible Renewable (see accompanying breakdown) 38.9%
Natural Gas 14.9%
Nuclear 33.5%
Large Hydroelectric 12.7%
Coal Footnote 2 0%
Other Footnote 3 0%
Unspecified Power Footnote 4 0%
  • 1. Numbers may not add up to 100 due to rounding.1
  • 2. Refers to PG&E electricity generated under contracts with third parties.2
  • 3. Includes diesel oil and petroleum coke (a waste byproduct of oil refining).3
  • 4. Refers to electricity from transactions that are not traceable to specific generation sources.4
Breakdown: Composition of PG&E’s 2018 Total Eligible Renewable Resources Footnote 1
Solar 18.2%
Wind 10.0%
Geothermal 3.7%
Biomass and Waste 4.3%
Eligible Hydroelectric 2.7%
  • 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