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Market Redesign and Technology Upgrade

Skip Navigation LinksPUC > Energy > Federal and Regional Energy Policy > California's Wholesale Market Design and Operations > Market Redesign and Technology Upgrade > Resource Adequacy

Resource Adequacy

The CPUC designed and administers the Resource Adequacy (RA) program, which requires load-serving entities to show sufficient capacity to provide energy at peak times plus a 15 to 18 percent planning reserve margin, in order to assure that there will be adequate resources to provide for California’s energy supply needs in the year-ahead timeframe and beyond.  RA contracts between load serving entities and energy suppliers require the supplier to supply energy to the CAISO markets.  Within its first two years of operation, the RA program has substantially reduced CAISO costly out-of-market procurement.

In CAISO stakeholder processes and FERC proceedings, the CPUC seeks to ensure that new FERC and CAISO programs coordinate with the operation of the RA program.  For more information on RA, see  the CPUC Procurement and Resource Adequacy page.


Last Modified: 5/6/2008

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