California’s large- and medium-sized publicly owned utilities generally have adequate resources to meet peak power demand with an ample reserve margin of 15 percent, the California Energy Commission concluded in a report discussed at a September 13 workshop. Those with marginal resource adequacy are taking steps to increase their power supplies, according to munis. The Energy Commission prepared the document, Progress Report on Resource Adequacy Among Publicly Owned Load-Serving Entities in California, as part of its 2007 Integrated Energy Policy Report proceeding. The agency is required under AB 380, enacted into law in 2005, to include an assessment of resource adequacy at publicly owned utilities in its biennial Integrated Energy Policy Report. The report noted that, in aggregate, 12 of the 13 largest publicly owned utilities—those with peak loads greater than 200 MW—”appear to have adequate resources” with a total capacity at their command of 116 percent of aggregate peak load. However, the level is expected to slip to 113 percent by 2012. The Energy Commission noted that one sizeable publicly owned system—the Imperial Irrigation District—is resource short and may not have enough power to meet 100 percent of its projected peak demand by 2013. The agency noted, however, that because the district operates its own control area the lack of resources there will affect only its own grid and not the state grid. The irrigation district can be expected to deal with peaks by shedding local customers to prevent its grid from becoming overloaded, the report noted. In response to the report, the irrigation district’s staff is developing a resource adequacy plant that targets a 15 percent reserve margin, James Hanks, Imperial Irrigation District board member, told the Energy Commission. He said that the district has used a 15 percent reserve margin for planning purposes for several years, although it does not have a formal resource adequacy plan. Anaheim Public Utilities has resources equal to 112 percent of its projected peak load and is increasing them to 115 percent by 2010, the document said. Roseville Electric is dependent upon short-term purchases to meet its peak needs, but is finishing a 162 MW generating plant, known as Roseville Energy Park, that will bolster its power supply. The other major publicly owned systems, such as the Los Angeles Department of Water & Power, Sacramento Utility District, and Burbank, Glendale, and Pasadena power agencies, all meet the 115 percent target, the report said. Several small munis with peak loads below 200 MW have thin reserve margins, said Jim Woodward, Energy Commission project lead. They include Hercules, with a 7 percent margin, the City Industry with a 10 percent margin, Rancho Cucamonga with a 7 percent margin, Anza with a 12 percent margin, and Needles, with no margin. The state requires investor-owned utilities to maintain a 15-17 percent reserve margin.