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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIESDATE:OCTOBER 23, 2017 ITEM NO: 9 SUBJECT:COMPLIANCE FILINGWITH THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR: APPROVAL OFRIVERSIDE PUBLIC UTILITIES ELECTRIC 2018ANNUAL RESOURCE ADEQUACY PLAN ISSUE: Approvethecompliance filing for the2018Annual Resource Adequacy Plan, as required by the Cityof Riverside’sResource Adequacy Programand Section 40 of the California Independent System Operator tariff. RECOMMENDATIONS: That the Board of Public Utilities: 1.Approve the 2018Annual Resource Adequacy Plan; and 2.Authorize filingthe Annual Resource Adequacy Plan with the California Independent System Operator in compliance with Section 40 of its tariff. BACKGROUND: Resource Adequacy (RA) describesa utility’s procurement ofsufficientpower 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) tariffgoverns the RA program requirements forload serving entities (such as Riverside) participating in CAISOmarkets. 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 controlover Riverside’sresource procurement, the City Counciladopted Resolution 21170, establishingits own RAProgram on May 23, 2006,in response to the CAISOTariff requirements. On June 5, 2012, the City Council, adoptedResolution No. 22389, approvinga revised RA Program to reflect current grid operational conditions, delete obsolete provisions and ensure efficient implementation while enhancingreliability. Per Section 1.1 of Riverside’s RA Program, Riverside must prepare an Annual RA Plan each year for the following calendar year. Riverside must havesufficient resources to serveat least 100%and 115%for non-summer months and summermonths (July throughSeptember), respectively.Riversideshall present theAnnualRA Plan to theBoard of Public Utilities and the City Council,and shall submit the AnnualRA Plan to the CAISO,as specified in the CAISO Tariff and Business Practice Manuals. Page 41