What it Does: The Resource Adequacy program has two goals. First, it provides sufficient resources to the California Independent System Operator to ensure the safe and reliable operation of the grid in real time. Second, it is designed to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.
The Basics: The CPUC adopted a Resource Adequacy (RA) policy framework (PU Code section 380) in 2004 to in order to ensure the reliability of electric service in California. The CPUC established RA obligations applicable to all Load Serving Entities (LSEs) within the CPUC’s jurisdiction, including investor owned utilities (IOUs), energy service providers (ESPs), and community choice aggregators (CCAs). The Commission’s RA policy framework – implemented as the RA program -- guides resource procurement and promotes infrastructure investment by requiring that LSEs procure capacity so that capacity is available to the CAISO when and where needed. The CPUC’s RA program now contains two distinct requirements: System RA Filings (effective June 1, 2006) and Local RA Filings (effective January 1, 2007). System RA Filings are required annually and also monthly, while Local RA Filings are currently only required annually.
Each LSE is required to file with the Commission demonstrating that they have procured sufficient capacity resources including reserves needed to serve its aggregate system load on a monthly basis. Each LSE’s system requirement is 100 percent of its total forecast load plus a 15 percent reserve, for a total of 115 percent. In addition, each LSE is required to file with the Commission demonstrating procurement of sufficient Local RA resources to meet their RA obligations in transmission constrained Local Areas. Commission staff evaluates LSE filings annually and monthly ensure accuracy and completeness. Commission staff also lead annual RA proceedings (R.09-10-032 is the most recent proceeding) to refine the RA program.
Instructions for new registered ESPs and CCAs.