“Wind”certificate(REC)

e.g.thisWashingtonwindfarm:

Systempoweraka“Unspecifiedpower,”brownpower,orfossil

“Wind”

certifica

te

(REC

)

EnergyWholesaler

MCEentersintoPCC2arrangementknowingthewindenergywouldnotbe

deliveredtoCalifornia,butadvertisesthatthebrownpoweritdeliverstoconsumers,

inthisexample,is“wind”fromWashington.PCC2arrangementcostsabout1/3ofPCC1.

buys

creates

creates

SomeotherconsumeroutsideofCaliforniapurchases&takesdeliveryoflow-costenergyw/oREC;energynowknownas“nullpower”

energy energy

MCE

PCC2akaBucket2,Category2,orfirm-and-shape

energy

lowcost

ResourcemustbeoutsideofCA.