How TURN Leads on Climate Policy in California NASUCA Panel: Consumer Advocates as Climate Policy Leaders 2014 NASUCA Midyear Meeting Santa Fe, NM Jun 3, 2014 Mark W. Toney, Ph.D., TURN Executive Director

TURN Organizational Snapshot Small, experienced staff of 9 energy & telecom attorneys – Total staff of 15. Supplemented with expert consultants. – Legal advocacy, legislative action, organizing, communications. Partnerships with wide range of policy advocates – Consumer, environmental, labor, community, faith–based. – Strategic partnership with Office of Ratepayer Advocates.

Policy Leadership Means to: Drive energy policy debates and outcomes. – Beyond responding to utility rate applications. Lead at the cutting edge of energy policy: Climate Policy – Beyond revenue requirements, rate design, consumer protection. Create consumer positions: Distinct from utility/renewables. – Win support from broad range of interested parties.

Most Green for the Least Green How to get greatest carbon reduction at best value? – Reducing energy consumption is cheapest way to reduce GHG. – Exercising leadership in Energy Efficiency policy. How to generate renewable energy at affordable prices? – Sun and wind as cheap fuel, vs volatility of gas prices. – Most renewable cost is upfront capital, negligible fuel costs. How to expand utility/renewables corporate accountability? –Fair rooftop subsidies without cost shifts to non-solar customers.

RPS: Legislative Leadership TURN was a leader in adoption of RPS in 2002, 2006, 2011 – Developed concept, drafted language, partnered with bill authors. Won key ratepayer protections to 33% renewables by 2020 – Market Price Referent to provide pricing benchmarks. – Deferred utility compliance penalties if renewables were too costly. – Consumers pay only for power delivered–not for signed contracts. – Imposed 25% cap for compliance with undeliverable RECs. Won support of utilities, renewables, enviros, generators – Effective negotiations = bilateral discussions, not one big room.

Climate Dividend: Regulatory Leadership How to return ratepayer money collected for carbon permits – Utilities: Link customer rebates to energy consumption. – Higher monthly bills = higher dollar rebates. TURN/ORA partnered with environmental advocates – CPUC ruling: Residential customer rebate of $30–$40 twice yearly. – Lower monthly bills = higher impact of rebates.

Green Option: Utility Leadership PG&E application to market green energy at a premium – Relied primarily on purchasing undeliverable RECs. – TURN has defeated similar PG&E Green Option proposal. We proposed profound changes to gain TURN support – Revised application to focus on creating new local green generation. – Revised PG&E Green Option tarriff adopted by CPUC. – SCE is working with TURN to submit their green tarriff to CPUC.

Climate Leadership for Consumer Advocates Exercise leadership in multiple arenas – Legislative, regulatory, utility. Build strategic partnerships – Environmental Labor Community. Position consumer interests as unique and distinct – Create alternatives to utility and renewable industry positions.