The California Public Utilities Commission (CPUC) adopted a framework on Thursday that would designate Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) as the central procurement entities to ensure local resource adequacy (RA).
The central procurement framework would go into place in 2021, with the investor-owned utilities purchasing the entire amount of required local resource adequacy for 2023 on behalf of all load serving entities (LSEs). “Having numerous entities buying small strips of local resource adequacy is not cost-effective and creates market power concerns,” CPUC Commissioner Liane Randolph said in a statement.