Resource Adequacy Program was created by legislation in response to the
California energy crisis in 2000-2001(Public
Utilities Code 380). The CPUC established the
Resource Adequacy (RA) program in 2005. Combined with Long-Term
Procurement Planning, Resource
Adequacy ensures a reliable and cost-effective supply of electricity generation
in California. While the long-term planning process focuses on a 10-year
horizon, the Resource Adequacy program is an annual compliance process that
establishes mandatory obligations for utilities, and other load serving
entities, to secure contracts for electricity capacity at least one-year ahead.
While not required, the utilities may secure capacity contracts beyond the
minimum year-ahead obligation in order to obtain the best contract prices and
reduce the risk of future price spikes. Capacity is the maximum electric output
a generator can produce.
year-ahead obligation is determined in cooperation with the California
Independent System Operator and the California Energy Commission by taking into
consideration forecasts of electricity need (plus a required 15% reserve
margin), transmission constraints, and other factors. Separate capacity
obligations are currently specified to meet local area and system-wide needs.
Pursuant to SB 350, the CAISO is leading a stakeholder initiative to consider the role of Resource Adequacy as part of a regional energy market.
The 2015 Resource Adequacy proceeding with a Ruling dividing into three phases:
the 2015 Proceeding docket.
here to subscribe to updates from this proceeding.
RA Criteria and Must-Offer Obligation
Capacity Needs Technical Study Process
Capacity Requirements Process