USA – CALIFORNIA Law and Practice Contributed by: Nora Sheriff, Gwenneth O’Hara, Samir Hafez, Antonio Carrejo and Elisa Rivas, Buchalter
Scope of authority The CPUC performs the following within its scope of authority: • ensures that IOUs, CCAs and ESPs procure sufficient resources to meet demand and achieve state renewable energy goals through integrated resource planning (IRP) and pro- curement mandates, including procurement of distributed energy resources; • sets reliability standards for utilities and man - dates compliance with resource adequacy requirements; • reviews IOU proposals for new generation, storage and distribution investments; • approves IOU power purchase agreements; and • approves funding and cost recovery for IOUs’ distribution infrastructure operations and capital projects. CEC The CEC is a state administrative agency respon- sible for statewide planning and forecasting. Scope of authority The CEC performs the following within its scope of authority: • conducts long-term electricity demand fore- casts; • leads energy policy development and building standards; and • certifies the siting of new thermal power plants of 50 MW and above. On 7 October 2023, Governor Gavin Newsom signed into law Assembly Bill (AB) 1373, author- ising the CPUC to request that the Department of Water Resources (DWR) act as a central pro- curement entity (CPE). The CPE is responsible for procuring electricity from certain long lead-
the responsibility is shared among CAISO, the CPUC, the California Energy Commission (CEC) and the California Air Resources Board (CARB). Each agency has distinct roles related to ener- gy supply adequacy, system reliability and grid development. CAISO CAISO is a non-profit, federally regulated organisation responsible for managing the flow of electricity across about 80% of California’s high-voltage transmission grid. It functions as the real-time system operator and wholesale market administrator. Scope of authority CAISO performs the following within its scope of authority: • balances supply and demand in real time; • oversees grid reliability and contingency plan- ning; • runs day-ahead and real-time electricity markets; • leads the Transmission Planning Process (TPP) to identify new grid infrastructure needs; and • evaluates proposed generation and storage projects for system integration. CAISO does not own any grid infrastructure – it controls facilities owned by IOUs and independ- ent transmission developers. CPUC The CPUC regulates IOUs, CCAs and ESPs, and is the lead agency for long-term resource plan- ning and distribution systems oversight. While the CPUC does not have rate-making respon- sibility for transmission lines, it does have a significant role in permitting transmission and substation facilities.
335 CHAMBERS.COM
Powered by FlippingBook