Resource Adequacy (RA)

Background

The Resource Adequacy (RA) program was created in response to California’s 2000-2001 electricity crisis to promote reliability for statewide electric service. To prevent electric shortages and possible blackouts, electric providers are required to obtain contracts in advance to meet their future obligations. In the annual RA proceedings, yearly forecasts of electric need are calculated, including a 15-17% reserve margin, to determine the total amounts private and public utilities must secure. 

In June 2012, the CPUC issued a final decision which adopted Local Procurement Obligations for 2013 and further refined the Resource Adequacy Program.

See more RA Background 

DRA's Policy Position

DRA does not support the CPUC’s proposal to impose flexible capacity (energy resources that can be turned on and off quickly with a quick ramping speed to their full capacity) implementation requirements in the 2014 Resource Adequacy period before projected need has been fully vetted, but to instead undertake studies to inform the appropriate implementation schedule: 

• Study the effect on market prices of both flexible and non-flexible resources.  
• Analyze the cost impact on individual Load Serving Entities. 
• Define flexible capacity and determine a methodology for calculating it. 
• Develop more fully a flexible capacity proposal. 

See DRA’s June 11, 2012 Opening Comments in response to the CPUC proposed decision.
See DRA’s November 21, 2011 Reply Comments to the Order Instituting Rulemaking
See DRA’s November 7, 2011 Opening Comments to the Order Instituting Rulemaking 

Current Proceeding Status

See the proceeding docket.

Other Resources

See the CAISO’s study on renewable integration and analysis of flexible capacity.

(See DRA’s November 29, 2011 comments with the California Independent System Operator (CAIS0) regarding its upcoming studies on local electric capacity needs.

To explore RA in depth, visit the CPUC's website.