1. Resource Adequacy Central Procurement Entity (CPE)
IEP Annual Meeting
Fallen Leaf Lake, CA
September 23-24, 2019

2. Most Recent CPUC RA Framework Decision: RA Track 2 Decision
Indicates preference for central buyer structure; defers designation of central buyer structure to Q4 2019
Adopts a minimum 3-year forward Local RA Requirement beginning with the 2020 RA Compliance Year.
Retains 1-year forward System and Flexible RA requirement for all RA Compliance Years
Product Type
Showing Year
[year-ahead/month-ahead]
Year n-1
Year n-2
Year n-3
System RA
90%/100%
Local RA
100%
50%
Flex RA
Confidential pursuant to commission Rule 12.6

3. Issues re CPE Formation
The range of issues identified by parties regarding CPE formation include the following:
Scope of Procurement (Full/Residual/Hybrid)
Identify of CPE
Cost Allocation Mechanism
Market Power Mitigation Tools
RA Procurement Timeline
Oversight Mechanisms
Resource Selection Criteria
Confidential pursuant to commission Rule 12.6

4. Range of CPE Options/Structures
Broadly speaking, the range of CPE Options/Structures include the following:
Full
Residual
Hybrid
Confidential pursuant to commission Rule 12.6

5. Confidential pursuant to commission Rule 12.6
High-Level Framework Concepts [* Taken from RA OIR Track 2 Workshop #1, April 22, 2019]
CPE Procurement Models:
Description
Full
Residual
Hybrid
Who is responsible for RAR?
CPE
LSEs/CPE
What will the CPE procure?
All capacity to meet the local RAR
Deficiency above what is voluntarily “shown” to meet the local RAR
Can LSEs make local procurement decisions?
Yes
Can LSEs offer their local resources to the CPE?
If an LSE provides local RA, will they receive local compliance credit or revenues?
How will costs be allocated?
$ if selected by the CPE
To be charged directly to customers or LSEs based on load share
1-for-1 MW credit if “shown” by LSE
To be allocated to customers or LSEs based on LSEs deficiency (100%) first and excess capacity based to all LSEs on load share.
Reduction in overall local RA if “shown” by LSE
To be allocated to customers or LSEs based on load share.
Confidential pursuant to commission Rule 12.6

6. Confidential pursuant to commission Rule 12.6
Next Steps?
Legislative Discussion to be continued…
CPUC Decision on Structure Scheduled for Q4 2019
Confidential pursuant to commission Rule 12.6

7. Confidential pursuant to commission Rule 12.6
Got It?
Any Questions?
Grab a beer…!
Confidential pursuant to commission Rule 12.6