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Wni R tvtaUv ii == RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 26, 2016 ITEM NO: 6 SUBJECT: COMPLIANCE FILING WITH THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR: APPROVAL OF RIVERSIDE PUBLIC UTILITIES ELECTRIC 2017 ANNUAL RESOURCE ADEQUACY PLAN ISSUE: Approve the compliance filing for the 2017 Annual Resource Adequacy Plan, as required by the City of Riverside's Resource Adequacy Program and Section 40 of the California Independent System Operator tariff. RECOMMENDATIONS: That the Board of Public Utilities: Approve the 2017 Annual Resource Adequacy Plan; and 2. Authorize filing the Annual Resource Adequacy Plan with the California Independent System Operator in compliance with Section 40 of its tariff. BACKGROUND: Resource Adequacy (RA) describes a utility's procurement of sufficient power supply capacity to serve its customers' projected electric requirements, plus an additional amount to be held in reserve for unanticipated circumstances (e.g., unplanned transmission or generation outages). Section 40 of the California Independent System Operator ( CAISO) tariff governs the RA program requirements for load serving entities (such as Riverside) participating in CAISO markets. The CAISO tariff provides an option for local regulatory authorities of non - California Public Utilities Commission utilities, such as Riverside's City Council, to adopt their own RA Program that meets certain criteria. To preserve its local control over Riverside's resource procurement, the City Council adopted Resolution 21170, establishing its own RA Program on May 23, 2006, in response to the CAISO Tariff requirements. On June 5, 2012, the City Council, adopted Resolution No. 22389, approving a revised RA Program (attachment 2) to reflect current grid operational conditions, delete obsolete provisions and ensure efficient implementation while enhancing reliability. Per Section 1.1 of Riverside's RA Program, Riverside must prepare an RA Plan each year for the following calendar year (attachment 1). Riverside must have sufficient resources to serve at least 100% and 115% for non - summer months and summer months (July through September), respectively. Riverside shall present the RA Plan to the Board of Public Utilities and the City Council, and shall submit the RA Plan to the CAISO, as specified in the CAISO Tariff and Business Practice Manuals. On November 13, 2012, the City Council approved Riverside 2013 Annual RA Plan, and delegated the authority to approve future Annual RA Plans to the Board of Public Utilities, to the extent the plan is compliant with the City Council's approved RA Program.