Background

This is an “umbrella” planning proceeding to consider all of the Commission’s electric procurement policies and programs and ensure California has a safe, reliable, and cost-effective electricity supply. The proceeding is also the Commission’s primary venue for implementation of the Senate Bill (SB) 350 requirements related to integrated resource planning (IRP) (Public Utilities Code Sections 454.51 and 454.52). It will implement a process for integrated resource planning that will ensure that load serving entities (LSEs) meet targets that allow the electricity sector to contribute to California’s economy-wide greenhouse gas emissions reductions goals. 

Evaluating Need

To evaluate need, the Proceeding takes a 10-year-ahead look at 

  1. System needs (reliability needs of the overall electric system)
  2. Local needs (reliability needs specific to areas with transmission limitations)
  3. Flexibility needs (such as the resources needed to integrate renewables)  

More Information

Authorizing Procurement

When needs are identified, the CPUC authorizes procurement in the form of a Commission Decision. 

Procurement Plans

Procurement plans detail what is going to be procured and how it will be done. These plans must adhere to State Policies, including the Loading Order, which mandates that energy efficiency and demand response be pursued first, followed by renewables and lastly clean-fossil generation. If the procurement plans do not comply with State policies and adequately balance safety, reliability, cost, and environmental goals, utilities are ordered to modify them.

Procurement Rules

IRP Decisions adopt rules which govern the procurement process. These rules are updated biennially and support competitive procurement through various mechanisms.

Applications

Utilities submit proposed long term procurement via applications. These seek approval of contracts or authority to build utility-owned resources. Stakeholders have an opportunity to file testimony on the utilities' applications and request hearings on disputed issues.

Learn More

To learn more about the current proceeding (R.16-02-007), we recommend you begin by looking at the Order Instituting Rulemaking and Scoping Memo, and Ruling on Planning Assumptions. The Ruling on Planning Assumptions enshrines the assumptions upon which our examination of long-term procurement needs is based.

Documents relating to the current proceeding and past LTPP proceedings can be accessed by clicking the following link: History of Long Term Procurement Plan Proceedings.

Here is a third-party evaluation of the Integrated Resource Planning process: IRP Program Evaluation, 9/28/2020

To join the service list for this proceeding (R.16-02-007) follow the instructions found here and complete the Addition/Change to Service List Form.

Questions?

Contact James McGarry of the CPUC's Energy Division.