Capacity markets

Outcome

The California ISO worked with the California Public Utilities Commission and other stakeholders during the period 2007 through mid-2010 to explore development of a long-term resource adequacy framework.  The discussion included consideration of multi-year forward procurement of resource adequacy capacity and potentially a capacity market.  The ISO and stakeholders submitted numerous rounds of written comments to the CPUC in response to a proceeding that was established by the CPUC (Rulemaking 05-12-013, filed December 15, 2005, Order Instituting Rulemaking to Consider Refinements to and Further Development of the Commission's Resource Adequacy Requirements Program).  On June 3, 2010, the CPUC issued a Decision in the long-term resource adequacy proceeding that leaves the current resource adequacy program essentially unchanged (Decision 10-06-018, Decision on Phase 2 – Track 2 Issues: Adoption of a Preferred Policy for Resource Adequacy).  Decision 10-06-018, available on the CPUC web site at: http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/118990.htm, did not adopt multi-year forward procurement nor did it adopt a capacity market.

Policy development