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Resource Adequacy Central Procurement Entity (CPE)

This resource provides an overview of the recent CPUC RA Framework Decision and discusses the issues and options related to the formation of a Central Procurement Entity (CPE) for resource adequacy. It covers topics such as procurement scope, CPE identification, cost allocation, market power mitigation, timeline, oversight, and resource selection criteria.

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Resource Adequacy Central Procurement Entity (CPE)

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  1. Resource AdequacyCentral 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 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. High-Level Framework Concepts[* Taken from RA OIR Track 2 Workshop #1, April 22, 2019] • CPE Procurement Models: Confidential pursuant to commission Rule 12.6

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

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

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