This CPUC rule-making is part of the state's long-term procurement planning (LTPP), which authorizes the state's investor owned utilities (IOUs) to procure certain amounts of electricity capacity and directs those utilities to purchase at least a certain amount of various listed capacity resources. At the broad scale, this rulemaking "authorizes Southern California Edison (SCE) to procure between 1,400 and 1,800 megawatts (MW) of electrical capacity in the West Los Angeles sub-area of the Los Angeles (LA) base and local reliability area to meet long-term local capacity requirements (LCRs) by 2021. SCE is also authorized to procure between 215 and 290 MW of the Moorpark sub-area of the Big Creek/Ventura local reliability area."
This was a landmark ruling because it was the first state decision directing an IOU to procure a certain amount of energy storage capacity (in this case, 50 MW). It also states that “energy storage resources should be considered along with preferred resources,” and that the two categories may be procured up to 800 MW total capacity. Regarding this, the rulemaking states that “at least 50 MW [of capacity] must be procured from energy storage resources. At least 150 MW of capacity must be procured through preferred resources consistent with the Loading Order in the Energy Action Plan, or energy storage resources. SCE is also authorized to procure up to an additional 600 MW of capacity from preferred resources and/or energy storage resources.” In this case, SCE is directed to procure 50 MW of energy storage capacity, but is authorized to procure up to 800 MW if it so chooses (assuming no other preferred resources are procured).
SCE is directed to begin a procurement process and have applications for the CPUC ready by late 2013 or early 2014.
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