Home » Energy » Procurement
  • Procurement

    DRA seeks to ensure that the utilities prepare procurement plans consistent with California’s Energy Action Plan, which prioritizes energy efficiency, demand response and renewable energy above additional fossil-fired generation.

    Bioenergy

    Implements SB 1122 (2011, Rubio), which requires investor owned utilities (IOUs) to procure up to 250 MW of small-scale utility bioenergy under a feed-in tariff.

    Energy Storage 

    The CPUC set targets of 1,350 MW for Energy Storage pursuant to AB 2514 to integrate renewables and aid in deferring investments in fossil energy. 

    Joint Reliability Plan

    The CPUC opened a Rulemaking to consider policies to refine California’s reliability framework for electricity procurement with the objective to meet the changing requirements of the electric grid in the context of the state’s environmental goals and reasonable customer rates.

    Long-Term Procurement Planning

    The Long-Term Procurement Plan(LTPP) is an umbrella proceeding where the CPUC considers all of its electric resource procurement policies and programs in an integrated manner across California’s three largest investor owned electric utilities – Edison, PG&E, and SDG&E. The utilities submit procurement plans every two years that project their resource needs and their action plans to meet those needs, over a ten-year horizon.

    Renewables

    The CPUC oversees a number of renewable programs and strategies in an effort to meet California's ambitious clean energy goals of 33% renewables by 2020.

    Resource Adequacy

    Created in response to California’s 2002 energy crisis, the Resource Adequacy (RA) program provides for reliable electric service throughout California. To prevent electric shortages and possible blackouts, electric providers are required to obtain contracts in advance to meet their future obligations. DRA participates in annual proceedings to refine and improve the RA program.

    Power Purchase Tolling Agreements

    PPTAs are contracts to purchase power wherein the utility pays the seller a periodic payment for capacity for the length of the contract. The utility is responsible for the procurement and delivery of the fuel (e.g., natural gas) to the seller’s power plant generating units, and the scheduling of the generating units under contract. Hence, utility customers take all the upside and downside risks of fuel price volatility. 

    PG&E Oakley Power Plant

    In March 2012, PG&E proposed to use ratepayer funds to build a new combined cycle natural gas-fired facility of 584 MW in Contra Costa County which would incur a total cost of approximately $ 1.15 billion.

    MRTU

    MRTU is a California Independent System Operator (CAISO) technology upgrade initiative that enables utilities to effectively interface with CAISO energy market activities.