The Long-Term Procurement Planning (LTPP) proceeding is an umbrella proceeding where the CPUC considers all of its electric resource procurement policies and programs in an integrated manner. Every two years the CPUC assesses the system and local resource needs of California’s three largest investor owned electric utilities – Edison, PG&E, and SDG&E – over a ten-year horizon. The CPUC also determines what changes should be made to current procurement rules and examines the utilities’ proposed procurement plans. Pursuant to Assembly Bill 57 (Public Utilities Code Section 454.5), the CPUC establishes upfront 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.
In December 2013, the CPUC issued a Rulemaking to initiate the 2014 Long-Term Procurement Planning (LTPP) proceeding.
The CPUC uses findings from previous planning cycles and will utilize 2012 LTPP findings in its 2014 LTPP proceeding.
The 2014 LTPP cycle will be divided into two phases to examine system reliability needs and procurement rules and utility procurement plans.
In 2014 the CAISO, Edison, and ORA will undertake modeling studies using the CPUC’s Standard Planning Assumptions from the February 27, 2014 Ruling to determine overall system and flexibility resource needs, i.e., new resources needed for the state’s entire electric demand, but not how those needs would be filled.
In 2015 the CPUC will utilize the Phase 1a modeling results to potentially authorize specific resources (generation, demand-side programs, etc.) to fill any residual system need including authorized transmission and transmission-related infrastructure from the CAISO’s Transmission Planning Process which may offset some need determined in Phase 1a.
Phase 2 will also consist of a review of the utilities’ individual procurement plans that project the needs their bundled customers, i.e., those customers who receive electricity service from the primary utility serving a given local area, such as PG&E, Edison, or SDG&E.
This phase will consider what changes should be made to current procurement rules and what new procurement rules should be adopted.
See the Proceeding docket.
ORA’s February 3, 2014 Comments on the scope of the 2014 LTPP.
ORA’s January 8, 2014 Comments responding to CPUC questions on Planning Assumptions.
CPUC Long-Term Procurement Planning webpage
ORA 2012 Long-Term Procurement Planning webpage
CPUC LTPP Archives.
CPUC 2014 Webpage.