Replacement requirement for scheduled generation outages

This initiative is to develop ISO tariff provisions requiring resource adequacy (RA) capacity suppliers to provide replacement capacity to the ISO during periods when their committed RA capacity is unavailable due to a scheduled outage. The California Public Utilities Commission (CPUC) currently has a replacement requirement in its RA rules, but it will consider proposals to discontinue this requirement as early as the 2012 RA compliance year. At the request of the CPUC, the ISO will explore putting a comparable replacement requirement in its tariff to ensure that the CPUC rule elimination does not adversely affect the adequacy of available RA capacity to meet ISO operational needs. The CPUC and many stakeholders have expressed a preference that the ISO provisions apply to suppliers rather than load-serving entities, which makes the RA capacity product more easily tradable. The ISO previously considered including a replacement requirement in the ISO tariff as part of the Standard Capacity Product II stakeholder process, but determined this topic was out of the initiative's scope.