ORA seeks to ensure that the utilities prepare procurement plans consistent with California’s Energy Action Plan, which prioritizes energy efficiency, demand response and renewable energy above additional fossil-fired generation.
Implements SB 1122 (2011, Rubio), which requires investor owned utilities (IOUs) to procure up to 250 MW of small-scale utility bioenergy under a feed-in tariff.
ERRA is a balancing account where the utilities record and track energy procurement costs (fuel and purchased power). At the end of each year, any under or over collection are charged or credited to customers’ bills.
The CPUC opened a Rulemaking to consider policies to refine California’s reliability framework for electricity procurement with the objective to meet the changing requirements of the electric grid in the context of the state’s environmental goals and reasonable customer rates.
The Long-Term Procurement Plan(LTPP) is an umbrella proceeding where the CPUC considers all of its electric resource procurement policies and programs in an integrated manner across California’s three largest investor owned electric utilities – Edison, PG&E, and SDG&E. The utilities submit procurement plans every two years that project their resource needs and their action plans to meet those needs, over a ten-year horizon.
The CPUC oversees a number of renewable programs and strategies in an effort to meet California's ambitious clean energy goals of 33% Renewables by 2020.
Created in response to California’s 2002 energy crisis, the Resource Adequacy (RA) program provides for reliable electric service throughout California. To prevent electric shortages and possible blackouts, electric providers are required to obtain contracts in advance to meet their future obligations. DRA participates in annual proceedings to refine and improve the RA program.
PPTAs are contracts to purchase power wherein the utility pays the seller a periodic payment for capacity for the length of the contract. The utility is responsible for the procurement and delivery of the fuel (e.g., natural gas) to the seller’s power plant generating units, and the scheduling of the generating units under contract. Hence, utility customers take all the upside and downside risks of fuel price volatility.
ORA Procurement Overview: Long-term Procurement Planning, Resource Adequacy, and Joint Reliability Plan