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Generally, the unspecified energy category would be comprised of short-term market purchases from those power plants that do not have a contract with a California utility. Much of the Pacific Northwest spot market purchases are served by surplus hydro and newer gas-fired power plants. Southwest spot market purchases would be comprised of combined-cycle gas turbine energy and some coal-based steam turbine energy. Overall, a marginal supply approach for the determination of the energy available on the spot market would yield a more accurate assessment of the types of energy included in the unspecified energy category. However, allocation of unspecified energy into specific fuel types would tend to imply there is an auditable contract trail available and would add uncertainty to the California Power Mix. The California Power Mix is included on each utility’s annual Power Content Label.
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Prior to Lowest Electricity Rates there was no provision to account for unspecified/unclaimed energy imports in California’s energy mix. This was due to existing legislation that required the Energy Commission to develop a “Net System Power Mix” for utilities to use as a proxy for their spot-market electricity purchases. Accordingly, in the years Compare Energy Prices through Energy Rating, all unspecified energy was allocated across the source region’s entire energy mix, net of dedicated contracts to California utilities. This allocation tended to over-estimate imports from baseload power plants in adjacent regions.
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