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The California PUC issued a decision adopting 2025–2027 local capacity obligations, 2025 flexible capacity obligations, and program refinements. In California, all utilities and load-serving entities (including community choice aggregators and retail electricity suppliers) have resource adequacy obligations to meet.

Among other things the CA PUC order does the following:

(1) SCE’s proposal for, Q3 2025, to “count off-peak import energy that is not available during the AAH window towards RA requirements,” with the requirement that the LSE attest to a must- offer obligation to CAISO; 

(2) exempts off-peak imports from the requirement that LSEs show all deliverable resources on SOD RA plans to CAISO, effective for the 2025 RA compliance year; 

(3) adopts Shell’s and Cal Advocates’ recommendation to extend to June “the extended cure period for new resources with a COD after T-30 and before the start of the RA compliance month”; and (4) adopts the proposed decision in other significant respects, including:

• adopts CAISO’s recommended 2025–2027 LCR values set forth in the table on numbered page 8 of the decision;
• adopts CAISO’s recommended 2025 FCR values set forth in the table on numbered page 10 of the decision;
• declines to delay the implementation of the Slice-of-Day (SOD) framework and maintains that the 2025 RA compliance year will be the first year for the new SOD framework;
• determines that under the SOD framework, hybrid and co-located resources’ qualifying capacity counting methodology will be as follows, effective for the 2025 RA compliance year: the renewable component’s QC value will be calculated the same as other renewable resources’ QC values the storage component’s QC value will be calculated the same as other storage resources’ QC values, and the total QC value of the resource will be the sum of the two components limited by the Point of Interconnection limit and the compliance tool’s state-of-charge test;
• declines to adopt a system-wide charging sufficiency test;
• determines that beginning with the 2025 RA compliance year, for resource-specific solar and wind import resources, an LSE must have import allocation rights equal to the RA value shown to the CPUC at the peak hour of the month, or equal to the minimum value of 0.01 if the value at the peak hour is zero; and
• declines to adopt an unforced capacity methodology, noting it is under consideration in Track 2.

The Track 2 Schedule is as follows:

• RA LOLE study now expected July 19, 2024.
• Workshop on Track 2 proposals and LOLE study now scheduled for July 25-26. Opening comments on proposals due by 8/9/24; reply comments due by August 23, 2024. 
• Track 2 proposed decision expected in November of 2024; and
• Track 2 final decision expected in December 2024. 

Order  (06/20/2024)
R2310011 (Opened on 10/12/2023)
Rulemaking to oversee the Resource Adequacy Program, Consider Program Reforms And Refinements, And Establish Forward Resource Adequacy Procurement Obligations.