ALJ/DMG/tcg/jt2//lil Date of Issuance 7/1/2011
Decision 11-06-022 June 23, 2011
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Oversee the Resource Adequacy Program, Consider Program Refinements, and Establish Annual Local Procurement Obligations. |
Rulemaking 09-10-032 (Filed October 29, 2009) |
DECISION ADOPTING LOCAL PROCUREMENT OBLIGATIONS
FOR 2012 AND FURTHER REFINING THE
RESOURCE ADEQUACY PROGRAM
DECISION ADOPTING LOCAL PROCUREMENT OBLIGATIONS FOR 2012 AND FURTHER REFINING THE RESOURCE ADEQUACY PROGRAM 1
1. Summary 2
2. Background 3
3. Local RA for 2012 6
3.1. 2012 Local Capacity Requirements Study 6
3.2. Local Procurement Obligations for 2012 11
3.2.1. Continuation of the Local RA Program 11
3.2.2. Change to Coincident Adjustment Factor 12
3.2.3. Mandating the Standard Capacity Product for Resources with Historical Qualifying Capacity 17
3.2.4. Cure Period for RA Procurement Deficiencies 20
3.2.5. Outage Replacement Obligation and Planned Outage Adder 24
3.2.6. Modification to Local RA Waiver Trigger Price 32
3.2.7. Change to Path 26 Allocation Process 35
3.2.8. Change to Year-ahead Forecast Timeline 38
3.2.9. Current Customer Forecasting Methodology 40
3.2.10. Monthly/Seasonal Local Resource Adequacy Requirement 42
3.2.11. Multi-year RA Contracts 45
3.2.12. Aggregation of "other PG&E" Local Areas 46
3.2.13. Elimination of Preliminary Local RA Filing 48
3.2.14. Elimination of the Use of Portfolio Resources 49
3.3. Resource Adequacy Rules for Demand Response 50
4. Comments on Proposed Decision 61
5. Assignment of Proceeding 62
Findings of Fact 62
Conclusions of Law 67
ORDER 70
Appendix A - Load-Serving Entities as Defined in Section 380(j)
Appendix B - Modifications to Appendix A to Resolution E-4195 Resource Adequacy Citation Program
DECISION ADOPTING LOCAL PROCUREMENT OBLIGATIONS
FOR 2012 AND FURTHER REFINING THE
RESOURCE ADEQUACY PROGRAM
1. Summary
This decision establishes local capacity procurement obligations for 2012 applicable to Commission-jurisdictional electric load-serving entities (LSEs). These procurement obligations are based on an annual study of local capacity requirements performed by the California Independent System Operator (CAISO) for 2012. The total local capacity requirements determined by the CAISO for all local areas combined decreased slightly from the prior year; the decrease is from 28,058 megawatts (MW) in 2011 to 26,778 MW in 2012. The existing capacity needed decreased from 27,094 MW in 2011 to 26,158 in 2012.
In addition, this decision adopts the following Resource Adequacy (RA) program refinements:
1. The Standard Capacity Product is now a mandatory part of the RA compliance program.
2. Penalties for RA program violations are modified to impose specific dollar penalties for deficiencies remedied within five business days after notification from Energy Division.
3. The LSE replacement rule remains in effect for the 2012 RA compliance year.
4. The Humboldt, North Coast/North Bay, Sierra, Stockton, Greater Fresno, and Kern local areas within the Pacific Gas and Electric Company (PG&E) territory (known as "other PG&E" local areas) are permanently aggregated for RA compliance purposes.
5. LSEs are no longer required to file a Preliminary Local Resource Adequacy Filing, and are no longer allowed to use Portfolio Resources as RA capacity.
6. The requirement that to qualify for RA requirements, a resource must be able to operate for a minimum of four hours per day for three consecutive days, now will apply to all demand response resources in the RA program.
7. For 2012, demand response program totals allocated towards RA credit for the Base Interruptible Program, the Summer Discount Plan, and the Agricultural Pumping Interruptible Program shall be less than or equal to 543.9 MW for PG&E; 1087.8 MW for Southern California Edison Company; and 27.2 MW for San Diego Gas & Electric Company, subject to the conditions of a Settlement in Decision (D.) 10-06-034.
8. For the 2012 RA program only, PG&E is granted an exemption from the RA program requirement that demand response programs must operate from 1:00 p.m. to 6:00 p.m.
