Transitional capacity procurement mechanism initiative

Outcome

The Transitional Capacity Procurement Mechanism (TCPM) was approved by the Federal Energy Regulatory Commission in an order issued on May 30, 2008. The TCPM enables the California ISO (the ISO) to acquire generation capacity to maintain grid reliability if load serving entities fail to meet resource adequacy requirements; procured resource adequacy resources are insufficient; or unexpected conditions, i.e., “Significant Events,” create the need for additional capacity. The TCPM serves as a bridge between the Reliability Capacity Services Tariff and the proposed Interim Capacity Procurement Mechanism (ICPM) which the ISO intends to implement simultaneously with its Market Redesign Technology Upgrade (MRTU).  The TCPM became effective on June 1, 2008, and will terminate upon the effective date of MRTU and ICPM implementation.