On February 10, 2022 the California Public Utilities Commission (CPUC) issued a proposed decision recommending several program modifications to facilitate implementation of the new California Central Procurement Entity (CPE) structure for procurement of local Resource Adequacy (RA) resources in the Pacific Gas and Electric Company (PG&E) and Southern California Edison Company (SCE) transmission access charge (TAC) areas. See CPUC Proposes Changes in California’s Central Procurement Entity (CPE) Framework for details of the proposed decision.
Starting in 2023, PG&E and SCE will be responsible for all local RA procurement and procure on behalf of all Load Serving Entities (LSEs) operating in their respective service territories. Since power plants can create multiple RA products (i.e., local, system and flexible Resource Adequacy), and CCAs and other suppliers are still responsible for system and flexible resource adequacy, the CPE requirements create a situation where CCAs and other suppliers may wish to retain the system and flexible attributes of their RA resources, while receiving some value for the local RA attributes of those resources. Decision 22-03-034, issued on March 18, 2022, adopts the proposed decision, with a number of revisions, including the process for showing local RA resources under contract with CCAs and other buyers. D.22-03-034 updates the process for CPE implementation, with the following changes in process:
Contact: Andy Brown or Brian Biering