The California ISO issued Significant Event Capacity Procurement Mechanism (CPM) designations for Sept. 1, 2021 and Sept. 10, 2021, to the resources listed below to address a CPM Significant Event.

On June 29, 2021, Marybel Batjer, President, California Public Utilities Commission, and David Hochschild, Chair, California Energy Commission, sent a letter to Elliot Mainzer, President of the ISO. (See joint statement and letter here) The letter cites several significant changes in the assumptions underlying the resource adequacy program and in system conditions, including: (1) significantly reduced hydroelectric production due to worsening drought conditions; (2) unforeseen limitations on output of thermal resources; (3) extreme heat events that have begun unseasonably early; (4) planned online dates for several new resources have been delayed beyond the summer; (5) further development of demand-side resources in response to emergency procurement authorizations remains uncertain; (6) resources sufficient to meet peak demand are not always adequate to support peak demand net of wind and solar generation (i.e., the net peak demand); and (7) the timeline of the resource adequacy compliance processes provide limited ability to address the changed conditions in the near term. The June 29 letter requests the ISO use its tariff-based authority to procure additional capacity in response to these factors. The ISO has concluded that the combination of these factors constitutes a CPM Significant Event, as that term is defined in the ISO tariff, and that the event may last through October.

The ISO has designated the resources noted below as CPM capacity to address the CPM Significant Event. The resources listed below offered capacity to the ISO to use under CPM, and that capacity was not procured previously as Resource Adequacy capacity. The resources have a designation effective date of Sept. 1, 2021 for six resources, and September 10 for one resource. The CPM term is 30 days, as provided under the tariff, subject to adjustment and the payment provisions set forth in Section 43A of the ISO tariff.

The quantity resulting from the designation is 15.24 MW.

The ISO will provide a designation report for these CPM designations under tariff section 43A.6.2. The report will be available on the Reports and Bulletins webpage, under the Capacity procurement mechanism heading.

Abdul Mohammed-Ali at amohammedali@caiso.com or ISO Customer Service at 916-608-7320