07-27-2020 BPU RPT 02 - Laserfiche WebLink

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W A T E R E N E R G Y L I f E RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum PUBLIC U T I L I I i E S BOARD OF PUBLIC UTILITIES DATE: JULY 27, 2020 ITEM NO: 2 SUBJECT: PUBLIC UTILITIES 2020 RIVERSIDE RESOURCE ADEQUACY PROGRAM ISSUE: Recommend that the City Council adopt by resolution a 2020 Riverside Resource Adequacy Program governing the acquisition of capacity to serve forecasted customer electrical needs. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council adopt by resolution the attached 2020 Riverside Resource Adequacy Program. BACKGROUND: Resource Adequacy refers to a utility's procurement of sufficient power supply capacity to fully serve its projected electric requirements (i.e., coincident adjusted monthly peak load forecasts), plus an additional amount to be held in reserve in case of unforeseen circumstances of transmission or generation outages. The City of Riverside first established its Resource Adequacy ("RA") Program on May 23, 2006 through Resolution No. 21170 in response to California Independent System Operator's ("CAISO") tariff requirement regarding RA Programs. On June 5, 2012, the City Council adopted the Revised Resource Adequacy Program through Resolution No. 22389, updating the program to accommodate amended CAISO tariff requirements regarding Resource Adequacy as well as changing market conditions. The City's current RA Program contains the following elements: 1. The preparation and submittal of RA Plans including appropriate reserve margins; 2. Development of demand forecasts; 3. Criteria for defining the type and quantity of resources that will qualify for meeting the Resource Adequacy reserve margin requirements; 4. The availability of resources to the CAISO through bidding and scheduling; and 5. Resource Adequacy compliance monitoring.