BACK
Resource Adequacy ("RA")
R. 21-10-002
June 10, 2021

Parties Filed Opening Comments on the Proposed Decision on Track 3B.1 and 4 Issues

The PD adopts local capacity requirements for 2022-2024, flexible capacity requirements for 2022, and additional refinements to the RA program including a tiered structure System RA penalty structure and changes to the RA import rules. In its Opening Comments on the PD, CalCCA opposed the additional System RA penalty structure and proposed that the Commission adopt a waiver process instead. CalCCA also opposed the new RA Import review process and stated that it would create additional uncertainty for LSEs.

The PD: 

  • Adopts all of CAISO’s LCR study results for 2022-2024;
  • Declines to increase PRM. Effective 17.5% PRM continues to apply for summer 2022;
  • Adopts a tiered System RA penalty structure based on number of previous deficiencies; and
  • Adopts a two-step process for non-resource specific import RA compliance filings.

CalCCA's Opening Comments focused on the System RA penalty structure and RA Import rules. Specifically, CalCCA recommends:

  • Given current market and regulatory conditions, the Commission should forego significant and increasingly punitive changes to the system Resource Adequacy penalty framework and adopt a waiver process for load-serving entities taking commercially reasonable actions to procure sufficient system and flexible Resource Adequacy.
As CalCCA highlighted in its comments on the RA Track 2 Proposed Decision, the Commission adopted the local RA waiver on two grounds: to address significantly increased costs or the exercise of market power, and to prevent making LSEs that are unable to contract for sufficient local RA to meet their requirement “subject to both backstop procurement costs and potential penalties.” Both factors also apply to system RA today. It is worth noting that both Western Community Energy (WCE) and San Diego Community Power (SDCP) filed and received waivers for their respective 2021 local RA showings. . . However, at the same time under the same circumstances, the Commission cited the LSEs for system RA deficiencies for the same RA year they received their local waiver. . .
  • The Commission should not adopt a Resource Adequacy imports proposal that creates further uncertainty around the ability for import capacity to meet Resource Adequacy obligations by introducing an ex-post compliance check on actions outside the control of the load-serving entity.



Update Links
CalCCA Opening CommentsProposed Decision on Tracks 3B.1 and 4
SEE PROCEEDING
RELATED UPDATES

Client Resources

Land Use

Regulatory

Litigation

About

845 15th Street, Suite 103
San Diego, CA 92101
858-224-3068