ALJ/KD1/ar9/ek4 Date of Issuance 6/27/2016 Decision 16-06-045 June 23, 2016 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF Order Instituting Rulemaking to Oversee the Resource Adequacy Program, Consider Program Refinements, and Establish Annual Local and Flexible Procurement Obligations for the 2016 and 2017 Compliance Years. Rulemaking 14-10-010 (Filed October 16, 2014) TRACK 1 DECISION ADOPTING LOCAL AND FLEXIBLE CAPACITY OBLIGATIONS FOR 2017, AND FURTHER REFINING THE RESOURCE ADEQUACY PROGRAM
ISOs. For clarity, CLECA supports continued reliance on weather normalization to set total RA requirements, but distinguishes this use from coincidence adjustments. In summary, CLECA argues that the process for allocating RA requirements should be aligned with cost-causation, use clear and available data, and only be adjusted in limited, known ways. recommends that: 1) Energy Division and the CEC should post load data within seven days of receiving the data from the CAISO and clearly identify the data source, 2) Energy Division should clarify how it shares results of coincidence adjustments with LSEs, 3) Energy Division should use the most recent year of load data, 4) CEC should use non-weather-normalized peak load data for coincidence adjustments, and 5) Energy Division should provide RA obligations to LSEs no later than June 1. DACC summarizes the steps that Energy Division and CEC have taken since D.15-06-063 to provide more information about the load forecast process, concludes that these steps are insufficient and that “progress towards increased transparency and consistency continues to lag.” DACC notes that little workshop discussion addressed changing from “historic” to “forecast” approach or methods in other jurisdictions, as we suggested in D.15-06-063. The continuing concerns that DACC expresses are 1) using more years of data may dampen peaks and may not reflect changing grid conditions, 2) variation in the number of peaks used among LSEs may not lead to standardized or fair treatment of different LSEs, and 3) weather normalization should be applied for forecasts, but not for historical peaks for coincidence adjustments. DACC contends that other ISOs handle these issues differently. DACC concludes that
dispatchable should be eligible to receive a QC value based on the higher of their bid or self-scheduled amounts in the day-ahead market. IT IS ORDERED that: The “Option 2/Category C” Local Capacity Requirements set forth in the California Independent System Operator’s 2017 Local Capacity Technical Analysis Final Report and Study Results, filed April 29, 2016, are adopted as the basis for establishing local resource adequacy procurement obligations for Commission-jurisdictional Load Serving Entities as defined by Public Utilities Code Section 380(j). The Local Capacity Requirements for 2016 are as follows: Local Area Name Existing Capacity Needed Deficiency (MW) Humboldt 157 0 157 North Coast / North Bay 721 0 721 Sierra 1731 312 2043 Stockton 402 343 745 Greater Bay 5385 232 5617 Greater Fresno 1760 19 1779 Kern 492 0 492 LA Basin 7368 0 7368 Big Creek/ Ventura 2057 0 2057 San Imperial Valley 3570 0 3570 Total 23643 906 24549 The local resource adequacy program and associated requirements adopted in Decision (D.) 06-06-064 for compliance year 2007, and continued in