10-22-2018 BPU RPT 07 - Laserfiche WebLink

Home

WATER I ENERGY ILIFE RIVERSIDE PUBLIC UTILITIES =J Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: OCTOBER 22, 2018 ITEM NO: 7 SUBJECT: RIVERSIDE PUBLIC UTILITIES ELECTRIC 2019 ANNUAL RESOURCE ADEQUACY PLAN COMPLIANCE FILING WITH THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR ISSUE: Approve Riverside Public Utilities Electric 2019 Annual Resource Adequacy Plan compliance filing with the California Independent System Operator. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the 2019 Annual Resource Adequacy Plan; and 2. Authorize filing of the 2019 Annual Resource Adequacy Plan with the California Independent System Operator in compliance with Section 40 of its tariff. BACKGROUND: Resource Adequacy (RA) describes an electric utility's procurement of sufficient power supply capacity to serve its customers' projected electricity 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 publicly owned utilities to adopt their own RA Program that meets certain criteria. On May 23, 2006, the City Council adopted Resolution 21170, establishing its own RA Program in response to the CAISO Tariff requirements. This action preserved Riverside's local control over its resource procurement. On June 5, 2012, the City Council adopted Resolution No. 22389, approving a revised RA Program which reflects current grid operational conditions, deletes obsolete provisions and ensures efficient implementation while enhancing reliability. Per Section 1.1 of Riverside's RA Program, Riverside must prepare an Annual RA Plan each year for the following calendar year. An RA Plan ensures grid reliability and safe electric service to customers, maintain fiscal responsibility by avoiding non-compliance penalties, and provides lowest possible rate to customers. Page 22