A small group of generators and utility representatives are working to mold a capacity market outside of official channels. In spite of a couple of years of talk, workshops and issuing several papers on the complex subject, launching a market that buys and sells power plant capacity remains out of reach. This type of commodity market is seen by some as the preferred mechanism for meeting the resource adequacy requirements of utilities and other load serving entities. Beginning in June, power suppliers are required to show they have a 15-17 percent supply reserve. The mandate is aimed at ensuring the lights stay on. The latest privately brewed plan, which is in the early stages, involves a centralized capacity market. The California Independent System Operator appears to be the preferred entity to control the market. The proposal in the works is being hashed out by representatives from Southern California Edison and Mirant. At this stage, the capacity market is seen as specifically providing an accounting mechanism for resource adequacy. It would also be used to track traded capacity, according to Phil Muller, who is representing Mirant. The stakeholders also hope to define a tradable capacity product along the lines of what Pacific Gas & Electric proposed.