Third, it requires utilities to obtain at least 15% of their electricity from renewable resources, such as wind and solar power.

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California requires its utilities to increase the amount of renewable energy they offer to customers until it hits 33 percent in 2020.

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The settlement still requires the approval of the California Public Utilities Commission and the Federal Energy Regulatory Commission, said NRG spokesman David Knox.

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This method is more straightforward than the current 43-line tax form, which asks the taxpayer to "see instructions" 17 times and requires calculations that account for mortgage interest, insurance, repairs, utilities and other costs associated with the home.

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That requires the development of an infrastructure, or the pipelines necessary to carry the fuel to the utilities that would burn it to make electricity.

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The problem of matching supply and demand will worsen as utilities increase the supply of green energy under mandates like California's, which requires 20% renewable electricity by 2010.

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