10-28-2019 BPU RPT 07 - Laserfiche WebLink

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W A T E R I ENERGY L I f E RIVERSIDE PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES SUBJECT: RIVERSIDE PUBLIC PLAN COMPLIANCE OPERATOR ISSUE: Board Memorandum DATE: OCTOBER 28, 2019 ITEM NO: 7 UTILITIES ELECTRIC 2020 ANNUAL RESOURCE ADEQUACY FILING WITH THE CALIFORNIA INDEPENDENT SYSTEM Approve the Riverside Public Utilities Electric 2020 Annual Resource Adequacy Plan compliance filing with the California Independent System Operator. RECOMMENDATIONS: That the Board of Public Utilities: Approve the Riverside Public Utilities Electric 2020 Annual Resource Adequacy Plan compliance filing; and 2. Authorize filing the Riverside Public Utilities Electric 2020 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, deleted obsolete provisions and ensured 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, maintains fiscal responsibility by avoiding non-compliance penalties, and provides lowest possible rates to customers.