States’ RPS Mandates Justify Lofty Solar Valuations

Introduction

Have you opened your electric utility bill lately? Chances are you have noticed the insert sent to you by the utility company that declares their power mix or multiple generating sources that the company utilitizes to bring power to your home or business.

Commonly termed as a portfolio of electrical generating assets (not necessarily all owned by the same utility company), for most investor and publicly owned utilities [IOU/POU] the power mix includes energy generating resources such as natural gas, coal, hydroelectric, nuclear, and of late interest, renewable energy resources such as solar, wind, biomass, and geothermal. For example, in 2007, the power mix disclosed for SMUD, a utility company serving the Sacramento metropolitan area, was found to be 60% natural gas resources, 20% large hydroelectric, and 16% eligible renewable resources.