On May 20, 2022, the California Public Utilities Commission ("Commission") issues a Proposed Decision ("PD") adopting Local capacity Resource Adequacy ("RA") requirements for 2023-2025, Flexible Capacity Requirements for 2023, refinements to the RA program, and Southern California Edison Company's 24-hour slice Reform Track framework. The Proposed Decision also creates a Reform Track Phase 2 Schedule.
2023-2025 Local Capacity RA Requirements
Each year, the CAISO releases a Local Capacity Technical Report with recommendations for Local Capacity Requirements (“LCR”) for the following year. LCR is the amount of resource capacity that is needed within a Local Capacity Area to reliably serve the load located within this area.
The CPUC adopts local capacity RA requirements based off the CAISO report. The Local RA requirements are adopted for a three-year duration and are updated each year after reviewing and approving the CAISO report.
2023 Flexible Capacity Requirements
Flexible Capacity is the quantity of resources needed by the CAISO to manage grid reliability during the greatest three-hour continuous ramp in each month. Resources will be considered as "flexible capacity" if they can sustain or increase output, or reduce ramping needs, during the hours of "flexible need."
