Status Report: Resource Adequacy RA and Long Term Procurement Planning LTPP

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Status ReportResource Adequacy (RA) and Long
Term Procurement Planning (LTPP)

• CPUC Energy Division
• Molly Tirpak Sterkel
• Email mts _at_ cpuc.ca.gov Tel [phone]
• Power Association of Northern California
• April 11, 2006

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Key Milestones in RA and LTPP

• 2004
• Adopted procurement policy framework (Jan-2004)
• Adopted RAR Framework (Oct-2004)
• Approved first 10-year of Long-Term Plans
  (Dec-2004)
• 2005
• Established rules for System RAR program (Oct-04)
• 2006
• First round of System RAR compliance process
  underway
• Two New Proceedings for RA and LTPP
• RA Local RAR program rules under development
• LTPP Next round of 10 year plans (2007-2016)
  will be reviewed

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System RAR Program In Place for 2006

• Applicable to all LSEs under CPUC jurisdiction,
  including 3 IOUs 12 ESPs
• LSEs must meet 15-17 planning reserve margin
  based on monthly peaks
• Based on a top down approach to monthly peaks
• Must acquire qualifying capacity that meets
  availability requirements
• Year-Ahead showing is for 90 of 115 of peak
  for a 5 month summer period
• Month-Ahead is for 100 of 115 of peak
• Sanctions/Penalties for LSE non-compliance

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October 2005 RA Decision onLiquidated Damages
(LD) Contracts

• LD Contracts phased out for RA Counting Purposes
• No LD contracts starting after 10-29-05 count
• Except DWR Contracts, LDs are limited to
• 75 of an LSEs portfolio for 2006
• 50 for 2007
• 25 for 2008,
• and 0 thereafter
• For 2006, there are 6300 MW of LDs
• LD contracts (not inc. DWR) are about 14 of
  filed RA Capacity
• By 2007, most LD contracts expire
• By 2008, only 2300 MW of non-DWR LD contracts

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System RAR Compliance for 2006/2007

• LSEs filed first year-ahead filings in Feb.
  2006
• Showing at least 90 of the RA requirement (115
  of forecast load) is covered for 5 peak months of
  2006
• Preliminary analysis shows 92 covered in
  aggregate
• CPUC investigating possible compliance issues
• LSEs will file first monthly filings in May
  2006
• Due May 1st for June month
• Monthly thereater
• All LSEs will file year ahead 2007 showings
  October 2, 2006 (1st business day after 9/30)

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New RA Proceeding R.05-12-013

• Phase 1 Issues
• Adoption of Local RA Requirement based on
  consideration of CAISOs LCR Study
• Other Issues as-needed related to
• Implementation
• Compliance
• Tradable Capacity Product
• Phase 2 Issues
• Capacity Markets tradable capacity product
• Multi-year forward RA Requirement
• Zonal RA Requirement
• Other Implementation Issues/ General Order

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Local RAR Consideration Underway

• CAISO 2006 Local Capacity Report (LCR) - Sep-05
• New Proceeding Opened - Dec-05
• Parties filed Local RAR Proposals - Jan 24-06
• CAISO filed supporting info on 2006 LCR -
  Jan-31-2006
• CAISO Hosted Meet and Confer on 2007 LCR -
  Feb-17-06
• Purpose was to lock in assumptions for 2007 study
• Workshops Held
• 2007 Local RAR Feb 8-9/Mar-15-06 re LCR study
  program
• RE Tradable Capacity Product - Mar-27-06
• CPUC Staff Report Issued on Local RAR - Apr-10-06
• 2007 LCR expected from CAISO - Apr-21-2006
• Expect CPUC decision to adopt Local RAR -
  Jun-2006

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Milestones for Local RAR
4/21 - CAISO submits 2007 LCR study
5/15 - Draft Dec issued
1/24 - Local RAR proposals submitted 1/27 -
CAISO resubmitted 2006 LCR study
6/15 - CPUC vote on dec
10/2 - LSE submit RA filings for both 2007 System
RAR (year ahead) and 2007 Local RAR
4/18 - Opening Comments due
2/17 - CAISO started 2007 LCR study after the
meet confer session
5/3 - Close of CPUC Proceediing Record
4/28 - Reply Comments due
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New Long Term Procurement Plan Proceeding
R.06-02-013

• Phase 1 Issue
• Need for Additional Policies to Support New
  Generation
• Proposals were due on March 7, 2006
• Workshop on March 14, 2006
• Comments on 4/7 and 4/14
• Planning for a June 2006 Decision
• Phase 2 Issues
• New Long Term Procurement Plans to be filed in
  Summer, decision by end of year.
• No additional schedule details yet on plan
  filings

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Proposals to Support New Generation

• Commission received 18 responses on 3/2
• Blink We must intervene to ensure new
  generation gets built
• Dont Blink Give RA and LTPP policies a chance
  to work (with numerous other fixes)
• Proposals that support other issues
• Workshop - 3/14
• Discuss proposals and need numbers
• Intermediary Concept Presented
• Comments Received on 4/7
• Replies due on 4/14

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Upcoming Milestones in Procurement

• April 06 PGE Expected to file new Power Plant
  Application
• May 06 Additional Schedule Details to be
  determined on LTPP Cycle
• June 06 CPUC will consider Local RA Decision
• CPUC will consider New Generation Decision
• Summer 06 Long Term Procurement Plans Filed
• Oct. 2 06 LSEs file 2007 Local RAR
  Demonstrations
• LSEs file Year Ahead Summer 2007 RAR
• December 06 CPUC Decision on LTPP
• Spring 07 CPUC Decision on RA Phase 2 Issues
• Capacity markets
• RA General Order

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CPUC Procurement and RA Website

• Links to LTPP and RA key documents proposals
• www.cpuc.ca.gov/static/hottopics/1energy/r0404003.
  htm