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ALJ/MSW/hl2 Mailed 11/4/2004
Decision 04-10-035 October 28, 2004
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Promote Policy and Program Coordination and Integration in Electric Utility Resource Planning.
(Filed April 1, 2004)
TABLE OF CONTENTS
In this decision we provide definition and clarification with respect to the policy framework for resource adequacy requirements (RAR) that we adopted last January in Decision (D.) 04-01-050.1 This represents another significant step toward establishing a new resource adequacy regulatory program whose purpose is to ensure that consumers of electricity within the service territories of California's three largest investor-owned electric utilities (IOUs) receive service that is as reliable as reasonably possible, consistent with current technology and economic constraints.2 In addition, among other things, we revisit the schedule for implementing the 15-17% planning reserve margin (PRM) requirement that we adopted in D.04-01-050. We do so in light of new concerns about the reliability of California's electricity grid in the near term. Finally, recognizing that additional work on RAR remains to be done in the near future, we address the next procedural steps that are required to ensure that a functioning regulatory program for RAR can be implemented during 2005.