The CPUC adopted a Resource Adequacy (RA) policy framework (Public Utilities Code section 380) in 2004 to in order to ensure the reliability of electric service in California. The CPUC established RA obligations applicable to all Load Serving Entities (LSEs) within the CPUC’s jurisdiction, including investor-owned utilities (IOUs), energy service providers (ESPs), and community choice aggregators (CCAs). The Commission’s RA policy framework – implemented as the RA program - guides resource procurement and promotes infrastructure investment by requiring that LSEs procure capacity so that capacity is available to the CAISO when and where needed.
The CPUC’s RA program now contains three distinct requirements: System RA requirements (effective June 1, 2006), Local RA requirements (effective January 1, 2007) and Flexible RA requirements (effective January 1, 2015).
| Requirement | Determination |
| System RA | Each LSEs CEC-adjusted forecast plus a planning reserve margin of 17% (beginning in 2024) |
| Local RA | Annual CAISO study using a 1-in-10 weather year and an N-1-1 contingency |
| Flexible RA | Annual CAISO study that currently looks at the largest three-hour ramp for each month needed to run the system reliability |
There are two type of filings: Annual filings (filed on or around October 31st) and Monthly filings (filed 45 calendar days prior to the compliance month). Commission staff evaluates LSE filings annually and monthly to ensure accuracy and completeness. For the annual filings, LSEs are required to make an annual System and Flexible compliance showing for the coming year. For the System showing, each LSEs is required to demonstrate that it has procured 90% of its System RA obligation for the five summer months of the coming compliance year. Additionally, each LSE must demonstrate that it meets 90% of its Flexible RA obligation for all twelve months . For LSEs in the San Diego local distribution area only, each LSE has a three-year forward local obligation and must meet 100% of its local requirement for the years one and two and 50% of for year three. For the monthly filings, LSEs must demonstrate they have procured 100% of their monthly System and Flexible RA obligation. Additionally, on a monthly basis from July through December, LSEs in the San Diego local distribution area must demonstrate they have met their revised (due to load migration) local obligation. LSEs in SCE and PGE local distribution areas are no longer required to demonstrate 100% local RA compliance as the Central Procurement Entity assumed responsibility for local in those areas as of 2023 compliance.
AnnualCommission staff evaluates LSE filings annually and monthly ensure accuracy and completeness. Commission staff also lead annual RA proceedings to refine the RA program, the most recent of which is R.23-10-011.
| Track 2 Modified Schedule | |
| Energy Division's RA LOLE Study published | July 19, 2024 |
| Workshop on Track 2 proposals and LOLE Study | July 25-26, 2024 |
| Opening comments on all proposals filed | August 9, 2024 |
| Reply comments on all proposals filed | August 23, 2024 |
| Proposed Decision on Track 2 | November 2024 |
| Final Decision on Track 2 | December 2024 |
Decision on Track 1 of Resource Adequacy D.24-06-004 Fact Sheet Decision on Phase 3 of the Resource Adequacy Implementation Track
D.23-06-029 Fact Sheet Decision on Phase 2 of the Resource Adequacy Reform Track
D.23-04-010 ED Summary This decision addresses issues scoped as Phase 2 of the Reform Track and adopts implementation details for the 24-hour slice-of-day framework, including adopting compliance tools, resource counting rules for various resource types, and a methodology to translate the Planning Reserve Margin to the slice-of-day framework Decision Adopting Local Capacity Obligations for 2023 - 2025, Flexible Capacity Obligations for 2023, and Reform Track Framework
D.22-06-050
This decision adopts local capacity requirements for 2023-2025 and flexible capacity requirements for 2023 applicable to Commission jurisdictional load-serving entities. This decision also adopts the Reform Track Framework to the Resource Adequacy program. The decision includes a 24-Hour Slice Framework attached as Appendix A. Decision On Phase 1 of the Implementation Track: Modifications to the Central Procurement Entity Structure
D.22-03-034 This decision completes Phase 1 of the Implementation track by adopting modifications to the central procurement entity structure adopted in Decisions (D.) 20-06-002 and D.20-12-006, including revisions to the requirements for self-shown local resources, revisions to the CPE’s solicitation selection criteria, and revisions to the CPE procurement timeline. Decision on Track 3.B.2 Issues: Restructure of the Resource Adequacy Program
D.21-07-014 This decision addresses issues scoped as Track 3.B.2, which were proposals to restructure the RA program, and multi-year flexible RA requirements. The restructure proposals include consideration of hourly capacity requirements, reliance on capacity with energy attributes, use limitations, and a forward energy requirement construct.
Decision Adopting Local Capacity Obligations for 2022-2024, Adopting Flexible Capacity Obligations for 2022, and Refinements to the Resource Adequacy Program D.21-06-029 This decision adopts local capacity requirements for 2021-2023 and flexible capacity requirements for 2021 applicable to Commission jurisdictional load-serving entities. This decision also adopts refinements to the Resource Adequacy program. Decision on Track 3.A Issues: Local Capacity Requirement Reduction Compensation Mechanism and Competitive Neutrality Rules
D.20-12-006 This decision addresses issues scoped as Track 3.A., which are the local capacity requirement reduction compensation mechanism and the central procurement entity's competitive neutrality. Decision Adopting Local Capacity Obligations for 2021-2023, Adopting Flexible Capacity Obligations for 2021, and Refining the Resource Adequacy Program
D.20-06-031 This decision addresses issues scoped as Track 2. Track 2 issues are those that need to be resolved earlier in the proceeding, such as adopting Local Capacity Requirements (LCR) for 2021-2023, and Flexible Capacity Requirements (FCR) for 2021. Additional issues addressed included proposals related to counting conventions that included Working Groups for hydro resources, hybrid resources, and third-party demand response resources. Decision on the Central Procurement of the Resource Adequacy Program
D.20-06-002 This decision adopts implementation details for the central procurement of multi-year local Resource Adequacy procurement to begin for the 2023 compliance year in the Pacific Gas and Electric Company (PG&E) and Southern California Edison (SCE) distribution service areas, including identifying PG&E and SCE as the central procurement entities for their respective distribution service areas and adopting a hybrid central procurement framework. The decision declines to adopt a central procurement framework for the San Diego Gas and Electric distribution service area at this time.
Report on RA Slice of Day Implementation and Year Ahead Showings
RA Modeling:
Resource Adequacy Reports:
Resource Adequacy Market Reports:
[1] Energy Division may also serve a proposal, either prior to or concurrently with parties.