To ensure a reliable and cost-effective electricity supply in California, in this proceeding the Commission reviews the IOUs’ long term procurement plans for the next 10 years and based on a series of Commission’s and state’s policy goals makes a need determination.
LTPP Background
The Passage of AB 57 in 2002 got the utilities back into the Procurement Business. The intention of AB 57 was to:
- Provide guidance to electrical corporations and the Public Utilities Commission (Commission) for the prospective procurement of electricity and electricity demand reductions by an electrical corporation.
- Ensure, by no later than January 1, 2003, that each electrical corporation whose customers were served by the Department of Water Resources (DWR) will resume procurement for those needs.
- Direct the PUC to review each electrical corporation’s procurement plan in a manner that assures creation of a diversified procurement portfolio, assures just and reasonable electricity rates, provides certainty to the electrical corporation in order to enhance its financial stability and creditworthiness, and eliminates the need, with certain exceptions, for after-the-fact reasonableness reviews of an electrical corporation’s prospective electricity procurement performed consistent with an approved procurement plan.
- Direct the PUC to assure that each electrical corporation optimizes the value of its overall supply portfolio, including DWR contracts, for the benefit of its bundled service customers.
Requirements of AB 27
AB 57 required the Commission to do the following in its implementation process:
- Review and approve utility energy procurement plans.
- Establish policies and cost recovery mechanisms for energy procurement.
- Ensure that the utilities maintain an adequate reserve requirement.
- Implement a long-term resource planning process.
- Implement a Renewable Portfolio Standard (RPS) program in accordance with SB 1078.
The Commission started the implementation of AB 57 in 2002 with a series of rulemaking proceedings. In February 14, 2008, the Commission opened 2008 LTPP rulemaking, R.08-02-007, as the successor to Rulemaking R.06-02-013, R.04-04-003, and R.01-10-024, and it will be the forum in which the Commission will consider, in an integrated fashion, its electric resource procurement policies and programs.
DRA filed its comments to the R.08-02-007 on March 17, 2008.
LTPP Proceeding Guidelines
This Proceeding will use the following guidelines:
- AB 32 and Senate Bill (SB) 1368, California’s Climate Change laws, “Upfront standards” for procurement must now consider carbon risk when filling net short positions with fossil resources
- Energy Action Plan (EAP) loading order, in the order of EE, demand response (DR), renewables, distributed generation, and clean fossil-fuel
- The CEC’s 2007 Integrated Energy Policy Report (IEPR), for procurement-related recommendations during this and related rulemakings
Procurement Related Dockets
- Procurement, R.06-02-013 and its successor
- Climate Change /Emissions Performance Standard, R.06-04-009
- Energy Efficiency, R.06-04-010 and its successor
- Demand Response and Advanced Metering, A.05-06-006 et al., R.07-01-041 and its successor
- Dynamic Pricing, A.06-03-005
- Renewable Portfolio Standard, R.06-02-012, R.06-05-027 and Successors
- Avoided Cost and Qualifying Facility Pricing, R.04-04-025
- Distributed Generation, R.06-03-004 and its successor
- Transmission and Renewable Energy Transmission, I.05-09-005 and its successor
- Confidentiality, R.05-06-040
- Direct Access, R.07-05-025 and its successor
- Community Choice Aggregation, R.03-10-003 and its successor
- Resource Adequacy Requirements, R.05-12-013 and its successor
- Planning Reserve Margin Forthcoming rulemaking per Nov. 19, 2007 ACR of R.05-12-013
- Liquefied Natural Gas, R.07-11-001
- Other procurement-related Rulemakings not yet issued