ALJ/DMG/acr/jv1/jt2 Date of Issuance 7/3/2013 Decision 13-06-024 June 27, 2013 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 Procurement Obligations. Rulemaking 11-10-023 (Filed October 20, 2011) DECISION ADOPTING LOCAL PROCUREMENT OBLIGATIONS FOR 2014, A FLEXIBLE CAPACITY FRAMEWORK, AND FURTHER REFINING THE RESOURCE ADEQUACY PROGRAM
2013 Local Capacity Requirements Qualifying Capacity 2013 LCR Need Based on Category B 2013 LCR Need Based on Category C with Operating Procedure Local Area Name QF/ Muni (MW) Market (MW) Total (MW) Existing Capacity Needed Deficiency Total (MW) Existing Capacity Needed** Deficiency Total (MW) Humboldt 55 162 217 143 0 143 190 22* 212 North Coast / North Bay 130 739 869 629 0 629 629 0 629 Sierra 1274 765 2039 1408 0 1408 1712 218* 1930 Stockton 216 404 620 242 0 242 413 154* 567 Greater Bay 1368 6296 7664 3479 0 3479 4502 0 4502 Greater Fresno 314 2503 2817 1786 0 1786 1786 0 1786 Kern 684 0 684 295 0 295 483 42* 525 LA Basin 4452 8675 13127 10295 0 10295 10295 0 10295 Big Creek/ Ventura 1179 4097 5276 2161 0 2161 2241 0 2241 San Valley 158 3991 4149 2938 0 2938 2938 144* 3082 Total 9830 27632 37462 23376 0 23376 25189 580 25769 * ISO note: No local area is “overall deficient.” Resource deficiency values result from a few deficient subareas; and since there are no resources that can mitigate this deficiency, the numbers are carried forward into the total area needs. Resource deficient subarea implies that in order to comply with the criteria, at summer peak, load may be shed immediately after the first contingency ** ISO note: Since “deficiency” cannot be mitigated by any available resource, the “Existing Capacity Needed” will be split among LSEs on a load share ratio during the assignment of local area resource responsibility We determine that the ISO’s final 2014 LCR Study with the “no SONGS” scenario should be approved as the basis for establishing local procurement obligations for 2014 applicable to Commissionjurisdictional LSEs. Continuation of the Local RA Program The RA program includes both “system” and “local” RA requirements. Each LSE must procure sufficient RA capacity resources to meet both obligations. “System” RA requirements are calculated based on an LSE’s “system” peak load plus a 15% planning reserve margin. “Local” RA requirements are calculated
Development of compliance rules and penalties. The assumptions underlying the calculation of flexible capacity need. The assigned Commissioner and ALJ should issue a Ruling as soon as possible to begin the formal aspect of this process. Distributed Generation In the January 23, 2013 workshop, Energy Division presented a proposed “Resource Adequacy Deliverability for Distributed Generation” initiative which offered a new pathway for distributed generation to qualify for RA value. This presentation was summarized in the transcript for that workshop at 46 – 48, and the presentation was attached to the transcript. The Energy Division proposal was developed in response to an Order of FERC in Docket ER122643000, where the FERC approved an ISO tariff filing related to deliverability for distributed generation, with certain modifications. Since the workshop, events appear to have overtaken the record. The ISO circulated a compliance proposal regarding the FERC Order on March 25 and proposed tariff language on April 2. After conducting stakeholder calls, receiving comments, and making appropriate modifications, the ISO has now filed tariffs with the FERC to respond to the FERC’s modifications. Montauk Energy states that it appears that the ISO’s revised approach to allocation of distributed generation deliverability could be implemented without requiring any specific activity on the part of the Commission. IEP also believes that events appear to have overtaken the Commission’s consideration of deliverability for distributed generation. IEP has reviewed the ISO compliance proposal and finds that the ISO has developed a reasonable response to the FERC orders on deliverability for distributed generation.