Contents

  • Goals of the Resource Adequacy Program
  • Program Overview
  • RA Proceeding Calendar (R.21-10-002)
  • Recent RA Decisions
  • Useful Resources
 

Goals of the Resource Adequacy Program

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.

 

Program Overview

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 reliability

     

    There 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 meets 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.  LSEs in SCE and PGE local distribution areas are no longer required to demonstrate 100% local RA compliance as the Central Procurement Entity assumes responsibility for local in those areas as of 2023.


    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 in the SDGE area 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.  For LSEs in the SCE and PGE local procurement need only be demonstrated for 2022. 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.21-10-002.

    Current RA Proceeding: R.21-10-002

            
     
    Implementation Track Phase 3 Schedule (excluding FCR and LCR Issues)

    Party and Energy Division proposals filed:

     

    January 20, 2023

     

    Workshop on Energy Division and party proposals
    Early February 2023
    Comments on workshop and all proposals filed February 17, 2023
    Reply comments on workshop and all proposals filed
    February 27, 2023
    Proposed Decision on Phase 3
    May 2023
    Final Decision on Phase 3 June 2023 
     
     
    Implementation Track Phase 3 Schedule for FCR and LCR Issues
    CAISO draft 2024 LCR Report filed
    April 2023
    Comments on draft 2024 LCR Report filed TBD
    CAISO final 2024 LCR and FCR Report filed May 2023
    Comments on final 2024 LCR and FCR Report TBD
    Reply comments on 2024 LCR and FCR Report
    TBD
     
     
    Reform Track Phase 2 Schedule
    Workstreams 1-3 to resolve remaining implementation details and methodologies July - October 2022
    Final proposals from Workstreams 1-3 filed November 15, 2022
    Opening comments on final proposals December 1, 2022
    Reply comments on final proposals December 12, 2022
    Proposed Decision on Phase 2 First Quarter of 2023
     

    Recent Decisions

    Decision Adopting Local Capacity Obligations for 2023 - 2025, Flexible Capacity Obligations for 2023, and Reform Track Framework
    D.22-06-050

    This decision adopts local capacity requirements for 2023-2025 and flexible capacity requirements for 2023 applicable to Commission jurisdictional load-serving entities.  This decision also adopts the Reform Track Framework to the Resource Adequacy program.  The decision includes a 24-Hour Slice Framework attached as Appendix A.

    Decision On Phase 1 of the Implementation Track: Modifications to the Central Procurement Entity Structure 
    D.22-03-034

    This decision completes Phase 1 of the Implementation track by adopting modifications to the central procurement entity structure adopted in Decisions (D.) 20-06-002 and D.20-12-006, including revisions to the requirements for self-shown local resources, revisions to the CPE’s solicitation selection criteria, and revisions to the CPE procurement timeline.

    Decision on Track 3.B.2 Issues:  Restructure of the Resource Adequacy Program
    D.21-07-014

    This decision addresses issues scoped as Track 3.B.2, which were proposals to restructure the RA program, and multi-year flexible RA requirements.  The restructure proposals include consideration of hourly capacity requirements, reliance on capacity with energy attributes, use limitations, and a forward energy requirement construct. 

    Decision Adopting Local Capacity Obligations for 2022-2024, Adopting Flexible Capacity Obligations for 2022, and Refinements to the Resource Adequacy Program

    D.21-06-029

    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 on Track 3.A Issues:  Local Capacity Requirement Reduction Compensation Mechanism and Competitive Neutrality Rules  
    D.20-12-006  

    This decision addresses issues scoped as Track 3.A.,  which are the local capacity requirement reduction compensation mechanism and the central procurement entity's competitive neutrality.

    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 addresses issues scoped as Track 2.  Track 2 issues are those that need to be resolved earlier in the proceeding, such as adopting Local Capacity Requirements (LCR) for 2021-2023, and Flexible Capacity Requirements (FCR) for 2021.  Additional issues addressed included proposals related to counting conventions that included Working Groups for hydro resources, hybrid resources, and third-party demand response resources.

    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.

    Useful Resources:

     RA Workshop Materials:


    RA Modeling:

    Resource Adequacy Reports:

    Resource Adequacy Market Reports: