As the CAISO prepares to implement the complex multi-year Market Redesign and Technology Upgrade (MRTU) in 2008, the CPUC staff continues to participate in numerous stakeholder discussions to ensure reliability, provide more efficient use of resources and provide adequate market mitigation to protect California consumers. Following a FERC Order in 2006, the CPUC has filed informal comments to the CAISO on such issues such as Backstop Procurement, coordination of MRTU and Resource Adequacy programs, and the development of FERC-mandated Convergence (or Virtual) Bidding and Scarcity Pricing programs. Additionally, the CPUC has filed numerous comments at the FERC on various aspects of the CAISO MRTU tariff and related Business Practice Manuals. These interventions have necessitated careful coordination with other the CPUC programs in the areas of transmission permitting, procurement and resource adequacy, demand response and renewable energy.
The CPUC participates in complementary market design and operational initiatives as well, such as the FERC’s Notice of Proposed Rulemaking on wholesale competition, which supports federal initiatives to improve organized wholesale markets. In addition, the CPUC’s regional cooperation on coordinating between control areas (Seams issues) and collaboration on CAISO’s Participating Intermittent Resources Program (PIRP) facilitates a smooth operating market system across neighboring state jurisdictions and lays the groundwork for California to attain its environmental goals.