Each year, the CPUC reviews the Resource Adequacy (RA)program to ensure that it continues to meet its goals to support reliability for California’s electric needs. In June 2012, the CPUC issued a Phase 1 Decision that addressed:
- Capacity needs for locally constrained areas where transmission is limited in providing power to regions such as the L.A. Basin, San Diego, and the San Francisco Bay Area.
- Refinements to the RA program which include increasing the ability of Demand Response programs to reduce capacity need and allocate costs to electric energy providers based on more specific load data.
- Opening Phase 2 to address flexible capacity and multi-year RA. Flexible Capacity can be called upon to balance renewable intermittency.
On December 6, 2012, the CPUC issued a Scoping Memo for Phase 2 which called for comments on the flexible capacity proposal and included an updated proposal on flexible capacity prepared by the CAISO, Edison, and SDG&E.
In December 2012, the CAISO issued a Straw Proposal for this initiative as part of its companion stakeholder process addressing flexible capacity and new rules the CAISO will need to implement as part of its proposal. The CAISO process will take place in two stages and is expected to continue into 2014. Stage 1 is expected to be completed by May 2013 in time for the 2014 RA compliance period, and Stage 2 is expected to be completed by January 2014 in time for the 2015 RA compliance period. The CAISO anticipates draft proposal by March 2013.
See more Background on Resource Adequacy.
DRA Policy Position
The Resource Adequacy program will work best when all resources are allowed to participate to reduce capacity costs for consumers. Additionally, the CPUC should work diligently to create ways for non-polluting resources to contribute to system reliability so that California can prepare for a future electricity grid with lower greenhouse gas emissions.
Phase 1: DRA supported the CPUC’s June 2012 Decision because it allows increased participation by Demand Response in the RA program. DRA recommended:
- Demand Response should be allowed greater participation in the Resource Adequacy program.
- Adoption of Energy Division’s proposal on flexible capacity for integrating renewables.
- Establishment of a separate proceeding to discuss multi-year forward procurement.
See DRA’s April 11, 2012 Comments.
See DRA’s April 20, 2012 Comments.
See DRA’s June 11, 2012 Comments.
Phase 2: DRA recommends caution when adding new requirements on energy providers because they can lead to unnecessarily raising customers’ rates.
See DRA’s December 26, 2012 Comments to the CPUC.
See DRA's January 9, 2013 Comments to the CAISO addressing the CAISO’s Flexible Resource Adequacy Criteria and Must-Offer Obligation Straw Proposal.
A CPUC Proposed Decision is expected in June 2013.
See the Proceeding docket.
Long-Term Resource Adequacy Summit: Hosted by CAISO and CPUC in San Francisco on
February 26, 2013.
CAISO Presentation: Flexible Resource Adequacy Criteria and Must-Offer Obligation, December 20, 2012.