Resource Adequacy
Goals
The Resource Adequacy program has two goals:
- 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.
- 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, each LSEs is required to demonstrate that it has procured 90% of its System RA obligation for the five summer months of the coming compliance year. Additionally, each LSE has a three-year forward local obligation and must meet 100% of its local requirement for the years one and two and 50% of for year three. Finally, each LSE must demonstrate that it meet 90% of its Flexible RA obligation for all twelve months.
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 July 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 |
For its three-year forward obligation, each LSE must demonstrate procurement of 100% of Local RA obligation for each month of compliance years one and two and 50% of Local RA obligation for year three. |
From July 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.
Recent Decisions
Decision Adopting Local Capacity Obligations for 2021-2023, Adopting Flexible Capacity Obligations for 2021, and Refining the Resource Adequacy Program
D.20-06-031
This decision adopts local capacity requirements for 2021-2023 and flexible capacity requirements for 2021 applicable to Commission jurisdictional load-serving entities. This decision also adopts refinements to the Resource Adequacy program.
Decision Adopting Resource Adequacy Import Requirements
D.20-06-028
This decision addresses the issues scoped for limited rehearing in Decision (D.) 20-03-016, and the issues scoped as Track 1 in the Scoping Memo of Rulemaking 19-11-009. This decision adopts revisions to the Resource Adequacy import rules based on Energy Division's proposal, with modifications. The Commission will consider the California Independent System Operator (CAISO) and Powerex Corp.'s proposal in a subsequent Resource Adequacy proceeding after further development through the CAISO's processes. This decision completes the limited rehearing of D.19-10-021, and the stay of D.19-10-021 is no longer in effect.
Decision on the Central Procurement of the Resource Adequacy Program
D.20-06-002
This decision adopts implementation details for the central procurement of multi-year local Resource Adequacy procurement to begin for the 2023 compliance year in the Pacific Gas and Electric Company (PG&E) and Southern California Edison (SCE) distribution service areas, including identifying PG&E and SCE as the central procurement entities for their respective distribution service areas and adopting a hybrid central procurement framework. The decision declines to adopt a central procurement framework for the San Diego Gas and Electric distribution service area at this time.
Learn More
To learn more about the current proceeding (R.19-11-009), we recommend you begin by looking at the Order Instituting Rulemaking and Scoping Memo. For the ongoing Track 3 of R.19-11-009, please see the Track 3 Scoping Memo.
To join the service list for this proceeding (R.19-11-009) follow the instructions found here and complete the Addition/Change to Service List Form.
Useful Resources:
Compliance:
RA Modeling:
Resource Adequacy Reports:
Resource Adequacy Market Reports: