Joint Reliability Plan

On February 5, 2014 the CPUC opened a Rulemaking to consider policy proposals for refining California’s reliability framework for electricity procurement, working in collaboration with the California Energy Commission and CAISO. The objective of the proceeding is to meet the changing requirements of the electric grid in the context of the state’s environmental goals and reasonable customer rates.

The CPUC issued a Ruling on May 20, 2014 setting an initial schedule and dividing the proceeding into three tracks:
 

Track 1 – Multi-year Resource Adequacy (RA) Requirements

The CPUC will consider expansion of its current RA program by adopting 2 and 3-year forward-looking requirements to meet specific forecasted needs for system, local, and/or flexible capacity.
 

Track 2 - Unified Long-term Reliability Planning Assessment

The CPUC intends to develop a methodology / process for reliability assessments over a planning horizon of up to 10 years, in coordination with the CPUC’s Long-Term Procurement Plan (LTPP). 

 

Track 3 - Policy Positions and Rules for Replacement Proposal of
CAISO’s Capacity Procurement Mechanism (CPM)

The CPUC will consider policies regarding the CAISO’s development of a market-based backstop procurement mechanism to replace its existing CPM which expires in 2016.

 

Resources

ORA Presentation: Risk of Unplanned Retirement and Magnitude of Existing Forward Capacity Procurement, May 2, 2014.
ORA Resource Adequacy Policy
ORA Long-Term Procurement Plan Policy 

Risk of Unplanned Retirement and PLEXOS Production Cost Simulation