Waivers and Penalties

Reviews of Resource Adequacy filings by load serving entities ("LSEs") are conducted by Energy Division as described below:

Pursuant to D.06-06-064, LSEs who cannot meet their local requirement may file a local waiver request.  D.19-06-026 requires that the local waiver requests are filed through a Tier 2 Advice Letter.  Energy Division evaluates the local waiver requests and issues disposition letters (posted below).  A waiver request must include both of the following:

(1) a demonstration that the LSE reasonably and in good faith solicited bids for its RAR capacity needs along with accompanying information about the terms and conditions of the Request for Offer or other for solicitation, and

(2) a demonstration that despite having actively pursued all commercially reasonable efforts to acquire the resources needed to meet the LSE's local procurement obligation, it either

(a) receive no bids, or
(b) received no bids for an unbundled RA capacity contract of under $40 per kW-year or for a bundled capacity and energy product of under $73 per kW-year or
(c) received bids below these thresholds but such bids included what the LSE believes are unreasonable terms and/or conditions, in which case the waiver request demonstrate why such items and/or conditions are unreasonable.

An LSE's waiver request that meets these requirements is a necessary but not a sufficient condition for the grant of such waiver. The Commission will also consider other information brought to its attention regarding the reasonableness of the waiver requested.

The RA program also has system and flexible requirements on a Year Ahead and Month Ahead basis. LSEs who are deficient in meeting the system and flexible requirements are referred to the Consumer Protection and Enforcement Division for potential citations. There is a no waiver process for system or flexible resources. A list of past citations is posted here:  Citations Issued 2009 - 2020 

For details about the Resource Adequacy program, please visit https://www.cpuc.ca.gov/RA/  

Local Waivers Issued: 2020 | 2019 | 2018

 


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