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. 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 to meet those needs, over a ten-year horizon. 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.
The CPUC will utilize findings from its 2012 LTPP process to feed into planning for the 2014 LTPP.
In December 2013, the CPUC issued a Rulemaking to initiate the 2014 Long-Term Procurement Planning proceeding (LTPP). Every two years the CPUC opens a proceeding to examine electricity resource needs for the rolling 10-year LTPP planning horizon. The 2014 LTPP planning cycle will consist of multiple tracks covering 2014 – 2024:
System, Local, & Operational Flexibility
Utilities Bundled Procurement Plans
Review of the utilities procurement plans for their bundled customer needs.
On December 11, 2013, CPUC Staff distributed its Planning Assumptions and Scenarios for the 2014 LTPP, followed by workshops. In December 2013, the CPUC issued an email Ruling posing questions to parties on the Planning Assumptions and the CAISO’s Transmission Planning Process. On February 27, 2014, the CPUC issued a Ruling with the final Planning Assumptions.
In order to balance reliability concerns and encourage cost-effective electricity procurement that is consistent with the CPUC’s loading order to prioritize clean energy resources, ORA recommends that the CPUC consider the following policy recommendations for the 2014 cycle:
See ORA’s February 3, 2014 Comments on the scope of the 2014 LTPP. See ORA’s January 8, 2014 Comments responding to CPUC questions on Planning Assumptions.
See ORA’s January 15, 2014 Reply Comments.
The CPUC is expected to publish the 2014 LTPP proceeding schedule in spring 2014.
See the Proceeding docket.
ORA 2012 Long-Term Procurement Planning webpage
CPUC Long-Term Procurement Planning webpage