CEC Advances 2005 Resource Adequacy

Noting pressure from Governor Arnold Schwarzenegger?s administration, the California Energy Commission approved a friendly subpoena to the California Independent System Operator to obtain the agency?s data on potential resources for summer 2005. The October 6 vote was upheld despite late concerns about a lack of policy between the agencies to protect confidential data. ?There are no confidentiality provisions for generators,? said Independent Energy Producers policy director Steven Kelly. Anxiety about generator confidentiality did not delay action. According to commissioners and the agency?s executive director, the issue must be addressed immediately because of concerns on the part of the governor?s office. Commissioner Jim Boyd, acting as chair for the meeting, suggested to generator representatives that they track the confidentiality issue and use this round as a ?test case??but also trust the agencies to protect commercially sensitive data. CEC and CAISO staff are working together to obtain and analyze data that could help avert next summer?s shortages, but a subpoena is mandated by Federal Energy Regulatory Commission tariffs. The commission also approved a transfer of bond authority from the now-defunct California Power Authority to itself. The state infrastructure bank prepared the transition. Also, despite concerns about presentation, the commission approved a report on electric retailer content claims. While the commission doubts the basic premise of using the term ?net system power? versus ?gross system power? in explaining to consumers a retailer?s portfolio of ?brown? to ?green? power, CEC staff determined that there is sufficient generation to meet retailers? claims for 2003. The concern about net system power stems from direct access allowed under deregulation. At the time, the Legislature defined the retail disclosure requirement as ?net,? according to CEC spokesperson Claudia Chandler. Now that definition is pointless because direct access is no longer available and the commission wants to count the green and brown content of gross system power. Potential discrepancies between portfolios and net system power are expected to be taken up by the Legislature or the administration, according to the commission. Using a gross system amount would more fairly represent the ratios of green power to brown power in a retailer?s content label. Retailers are supposed to submit detailed reports to back up their power content claims to the commission. For 2003, all but one have complied, according to staff.

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CEC Advances 2005 Resource Adequacy

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