Long Term Procurement Planning: 2012 - 2022

The Long-Term Procurement Planning (LTPP) proceeding is an umbrella proceeding where the CPUC considers all of its electric resource procurement policies and programs in an integrated manner. California’s three largest investor owned electric utilities – Edison, PG&E, and SDG&E – submit procurement plans every two years that project their resource needs and their action plans to meet those needs, over a ten-year horizon. Pursuant to Assembly Bill 57 (Public Utilities Code Section 454.5), the CPUC establishes up-front standards for the utilities’ procurement activities and cost recovery by reviewing and approving their procurement plans prior to implementation. This process obviates the need for the CPUC to conduct after-the-fact reasonableness reviews for procurement transactions that are in compliance with the approved procurement plans. The 2012 LTPP proceeding is divided into four tracks.

See ORA's presentation on 2012 Long Term Procurement Planning.

 

Track 1: Local Capacity Requirement

In May 2012, the CPUC stated for the first time that it will consider whether there is a local capacity requirement (LCR) need over the next several years. Track 1 of the LTPP examined the LCR need for SCE’s two local capacity areas – Los Angeles Basin and Big Creek/Ventura.

 

Track 2: System Reliability

The System Reliability track consisted of two parts:

Phase 1 - Standard Planning Assumptions

Determining input assumptions to be applied over a 20-year procurement planning horizon.

Phase 2 - Operational Flexibility Modeling

Considering the potential need for new gas-fired resources to support renewable integration/operational flexibility. However, the CPUC cancelled this phase because it determined that system flexibility need was low or non-existent and thus this issue would be revisited in the 2014 LTPP proceeding.
 

 

Track 3: Procurement Rules and Bundled Procurement Plans

The CPUC is considering any proposed changes to the investor owned utilities' bundled procurement plans and the resources and procurement policies and strategies set forth by the utilities to meet the needs of their bundled customers.

 

 

Track 4: SONGS Outage and Local Reliability in the Los Angeles Basin and San Diego Areas

The CPUC is considering the impacts of the premature retirement of the San Onofre Nuclear Generating Station (SONGS) in Southern California, including consideration of the California Independent System Operator (CAISO) study regarding local reliability needs in the LA Basin and San Diego area.