Resource Adequacy

Goals

The Resource Adequacy program has two goals:

  1. To ensure the safe and reliable operation of the grid in real-time providing sufficient resources to the California Independent System Operator (CAISO) when and where needed. 
  2. To incentivize the siting and construction of new resources needed for future grid reliability. 

The Basics

The CPUC adopted a Resource Adequacy (RA) policy framework (Public Utilities 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 three distinct requirements: System RA requirements (effective June 1, 2006), Local RA requirements (effective January 1, 2007) and Flexible RA requirements (effective January 1, 2015).

   Requirement       Determination
System RA    Each LSEs CEC-adjusted forecast plus a 15% planning reserve margin
Local RA    Annual CAISO study using a 1-in-10 weather year and an N-1-1 contingency
Flexible RA    Annual CAISO study that currently looks at the largest three-hour ramp for each month needed to run the system reliably   

 

The are two type of filings:  Annual filings (filed on or around October 31st) and Monthly filings (filed 45 calendar days prior to the compliance month).  Commission staff evaluates LSE filings annually and monthly to ensure accuracy and completeness.

For the annual filings, LSEs are required to make an annual System, Local, and Flexible compliance showing for the coming year.  For the System showing, LSEs are required to demonstrate that they have procured 90% of their System RA obligation for the five summer months the coming compliance year.  Additionally each LSE must demonstrate that they meet 90% of its Flexible requirements and 100% of its local requirements for each month of the coming compliance year.  For the monthly filings LSEs must demonstrate they have procured 100% of their monthly System and Flexible RA obligation.  Additionally, on a monthly basis from May through December, LSEs must demonstrate they have met their revised (due to load migration) local obligation.

 
 Showing     
 
  

Annual 
(Filed on or around 10/31)
 
Monthly
  (Filed 45 days prior to compliance month)
   System    
LSE must demonstrate procurement of 90% of System RA obligation    
for the five summer months of the coming compliance year
LSE must demonstrate procurement of 100%
of their monthly System RA obligation
Local LSE must demonstrate procurement of 100% of Local RA obligation
RA obligation for each month of coming complaince year
From May to December, LSE must demonstrate procurement   
of their revised (due to load migration) Local RA obligation
Flexible LSE must demonstrate procurement of 90% of Flexible RA obligation
for each month of coming compliance year
LSE must demonstrate procurement of 100% of their monthly
Flexible RA obligation

 

Commission staff evaluates LSE filings annually and monthly ensure accuracy and completeness. Commission staff also lead annual RA proceedings to refine the RA program, the most recent of which is R.19-11-009.  For information on past RA proceedings, please visit the Resource Adequacy History website and the Principal Resource Adequacy Decisions and Resolutions document.

Useful Resources:

Compliance:  

RA Modeling:

Resource Adequacy Reports:

Resource Adequacy Market Reports:



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