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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 > Transitional Capacity Procurement Mechanism (TCPM)

Transitional Capacity Procurement Mechanism (TCPM), Interim Capacity Procurement Mechanism (ICPM), and Exceptional Dispatch (ED)

TCPM is a means for the CAISO to call upon generators that are not otherwise obligated to participate in CAISO markets to provide energy on a daily basis in exchange for an energy payments plus a short-term capacity payment.  Capacity is a commitment to be available to provide energy if called upon, not the actual production of energy.  The FERC has accepted the CAISO’s proposed ICPM tariff for implementation with MRTU, which would keep several features of TCPM but will also make notable changes, such as moving to voluntary participation. 

Additionally, FERC is considering the CAISO's tariff amendment on market mitigation measures and payments to resources under Exceptional Dispatch (ED) instructions.proposal. ED allows CAISO to procure additional capacity to account for very limited system conditions and adjusting for constraints that are not fully modeled in the MRTU software. FERC is currently considering proposals addressing compensation to non-Resource Adequacy resources under ED.

The CPUC’s Position:

The CPUC is actively involved in the development of the TCPM, ICPM and ED.  The CPUC supports a reasonable payment to cover the costs to generators of providing backstop capacity.  The CPUC opposes excessive payments because such payments would place an excessive burden on ratepayers and may discourage participation in the primary energy procurement markets (such as the CPUC-mandated Resource Adequacy requirements and CAISO energy markets).  



Last Modified: 12/26/2008

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