Energy Reserve Margin Study Explored

By Published On: August 31, 2007

As the state was in the grip of a heat wave and related alerts of short power supplies, a group of utilities and other stakeholders suggested forming a joint study group to calculate the different inputs that go into computing and the planning the state’s electricity reserve margin. The idea was presented by Pacific Gas & Electric’s Antonio Alvarez, manager, structuring and long term planning, during the California Public Utilities Commission’s resource adequacy workshop that took place August 22 and 27-29. Alvarez said such a study would likely cost around $50,000. If the study does in fact move forward, he added, participants could share the costs. Alvarez estimated that analysis and results would be complete by the end of October, in time to incorporate into an expected February 2008 decision on resource adequacy. Southern California Edison already has indicated that it would be willing to participate in the study as well as share project costs. The workshop, facilitated by the CPUC’s energy division staff, was a chance for interested parties to update themselves on the commission’s resource adequacy proceeding. The CPUC’s Energy Division staff facilitated the workshop, which covered the scope of work for the multi-year procurement requirement under the upcoming decision and environmental compliance issues.

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