Materials from the 2008 MPR Workshop held in March
The purpose of the workshop was to provide parties an opportunity to discuss technical issues related to the Market Price Referent (MPR) methodology. The workshop agenda and presentations can be downloaded below.
- 2008 MPR Workshop agenda
- MPR Market Price Risk, by Eric Cutter, Energy and Environmental Economics, Inc. (on behalf of Energy Division)
- MPR Capacity Factor, by William Marcus, JBS Energy, Inc. (on behalf of The Utility Reform Network)
- MPR Greenhouse Gas Adder, by David Schlissel, Synapse Energy Economics, Inc. (on behalf of The Union of Concerned Scientists)
- MPR Gas Methodology and Inputs, by Clyde Murley. (on behalf of The Union of Concerned Scientists)
What is the Market Price Referent (MPR)?
The market price referent (MPR) represents the cost of a long-term contract with a combined cycle gas turbine facility, levelized into a cent-per-kWh value.
The MPR also represents a dividing line for bids submitted to the investor owned utilities for an RPS contract:
- Bid prices at or below the MPR may be accepted as per se reasonable by the CPUC.
- Bids priced above the MPR may face a stronger burden of proof in justifying the reasonableness of their contract price.
- Public Goods Charge funds have been made available to each IOU, on a pro rata basis, to cover the above MPR portion of the contract price of CPUC approved contracts.
For more information about how the 2007 MPR was calculated, please see:
Resolution E-4118 Adopting the 2007 MPR; 2007 MPR Model
How often is the MPR calculated?
The CPUC calculates and announces a new MPR annually for each RPS solicitation. That is, there will be a unique MPR that applies to each RPS solicitation.
When is the MPR announced?
The CPUC publicly discloses the MPR for a solicitation after each of the three utilities has compiled its initial short list of bidders from that solicitation. This timing is intended to minimize the effect of the MPR on bid prices.
What is the status of Supplemental Energy Payments (SEPs)?
Per RPS statute, the above market costs of renewable energy were to be covered by a "Supplemental Energy Payment" fund administered by the Energy Commission. This funding process was reformed in late 2007 by Senate Bill 1036, and the CPUC and CEC are currently considering the bill's implementation details. More information is coming soon.