The Long-Term Procurement Planning (LTPP) proceeding is an umbrella proceeding in which the CPUC considers all of its electric resource procurement policies and programs in an integrated manner. California’s three largest investor owned electric utilities – Edison, PG&E, and SDG&E - submit procurement plans every two years that project their resource needs, and their action plans for meeting those needs, over a ten-year horizon. Pursuant to Assembly Bill 57 (Public Utilities Code Section 454.5), the CPUC establishes up-front standards for the utilities’ procurement activities and cost recovery by reviewing and approving their procurement plans prior to implementation. This process obviates the need for the CPUC to conduct after-the-fact reasonableness reviews for procurement transactions that are in compliance with the approved procurement plans. The 2012 LTPP proceeding is divided into three tracks.
See DRA's presentation on 2012 Long Term Procurement Planning.
In May 2012, the CPUC stated for the first time that it will consider whether there is a local capacity requirement (LCR) need over the next several years. Track 1 of the LTPP examined the LCR need for SCE’s two local capacity areas – Los Angeles Basin and Big Creek/Ventura.
System Reliability determines system needs, which will consist of two parts: 1) development of standard planning assumptions leading to specific supply and demand scenarios for the next 20 years and 2) consideration of issues related to system variability, such as renewable integration.
In Track 3 of the LTPP, the Commission will consider any proposed changes to the IOUs' bundled procurement plans and the resources and procurement policies and strategies set forth by the IOUs to meet the needs of their bundled customers.