​The CPUC adopts a revised Track 2 Resource Adequacy (“RA”) Decision

On Thursday, February 21, 2019 the CPUC debated the RA decision in Track 2. This iteration of the RA proceeding garnered considerable attention from a wide variety of market participants. The hotly contested IOU central buyer requirement was not part of the final decision. Instead, the RA program was refined to include a three year local RA compliance obligation (100% in year 1, 100% in year 2 and 50% in year 3).

The proceeding now moves to the third track where parties will file proposals in March addressing the counting mechanisms for storage and buyer models, and flexible capacity requirements. The parties will also continue to debate various proposals for buyer models. Some CCAs have expressed support for a “residual buyer model”, while other parties support capacity markets facilitated through the CAISO or another entity. These issues will be debated in the RA proceeding over the next six months.

In terms of RA compliance for load serving entities, President Picker made strong comments and tweets, directing staff to not issue any waiver requests. SCE will announce the results of its Moorpark local capacity / Goleta Resiliency RFP on March 15. The Los Angeles Department of Water and Power also announced that it will not be repowering its coastal units, which may create new opportunities for storage and renewable energy development (i.e., RPS and SB 100 eligible).

Author: Brian S. Biering