CPUC Extends Supply Cushion Mandate to Community Choice

State energy regulators on a 5-0 vote approved a controversial measure to extend the California Public Utilities Commission’s resource adequacy authority over community energy programs.

The resolution was on the California Public Utilities Commission’s Feb. 9 consent agenda, but was discussed during Thursday’s meeting because of significant opposition from choice advocates up and down the state.

Resolution E-4907, in response to exponential growth in community choice, directs community choice aggregators to meet the agency’s 15-17 percent supply cushion requirement for 2018-19.

The commission also approved a separate rule this week to require all load serving entities, including community energy programs, to file integrated resource plans with the agency.

A long line of public speakers at this week’s meeting objected to the resolution for interfering with community choice.

Jim Sparks, representing Sen. Scott Wiener (D-San Francisco), reiterated community choice advocates’ objections that the resolution would freeze new community aggregators and the expansion of existing ones.

Community energy representatives urged energy regulators to fold the resolution into its Resource Adequacy proceeding to ensure greater transparency, a robust discussion and creation of an evidentiary record.

“We are trying to figure out the year-ahead need,” countered Commissioner Liane Randolph, who authored the resolution. She confirmed that it applies to aggregators for just one year. Subsequently, community choice resource adequacy requirements are to be included in the CPUC’s resource adequacy proceeding.

CPUC president Mike Picker said he supported the resolution because of his “overwhelming anxiety” over the sufficiency of community energy’s resource adequacy. A resource adequacy shortfall would impact not just the community energy provider but also its neighbors, he said.

Commissioner Martha Guzman Aceves said she voted for the resolution to prevent the procurement of “excessive” natural gas generation.

Modified last Friday to address community choice protests, resolution E-4907 was first released just before the holiday season last year. A key aim is to prevent private utilities from taking on the resource adequacy burden for one year in response to customers departing and joining community choice programs.

Jack Clark, with the City of San Diego, agreed on the need to not foist a year’s worth of resource adequacy requirements on private utilities when they lose customers to community choice. But, he urged the commission to reject the resolution to preserve “fairness and local government choice.”

The modified resolution imposes a one-year waiting period for new community choice programs. They are required to file implementation plans a year ahead of starting to serve customers, although the E-4907 includes a waiver process.

Community advocates insisted the resolution creates a “lengthy and complicated” process.

Energy Division director Ed Randolph said the resolution is required by statute. It also, he added, aligns community resource adequacy mandates with the commission’s resource adequacy timeline and its forecasting and procurement processes. — Elizabeth McCarthy

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CPUC Extends Supply Cushion Mandate to Community Choice

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