California Authorizes SCE Local Capacity Procurements, Allocation of Costs to Direct Access Customers

A final decision from the California PUC allows Southern California Edison to procure over 2,000 MW of electric capacity to meet local capacity requirements, with the procurement eligible for cost allocation mechanism (CAM) treatment. The PUC also declined to make any changes in the CAM, such as those sought by retail suppliers.

Specifically, the PUC authorized Southern California Edison to procure between 1,400 MW and 1,800 MW of electrical capacity in the West Los Angeles sub-area of the Los Angeles (LA) basin local reliability area to meet long-term local capacity requirements (LCRs) by 2021. SCE is also authorized to procure between 215 MW and 290 MW in the Moorpark sub-area of the Big Creek/Ventura local reliability area.

The PUC continued the current Commission policy of allocating CAM costs and benefits at the IOU service area level. The Commission rejected several changes sought by retail suppliers regarding calculation of the CAM.

Additionally, the PUC rejected a CAM opt-out sought by retail suppliers.

"[I]t is not at all clear that a CAM opt-out could be implemented without undue administrative burden. After considering comments from parties, we find the record insufficient to resolve these questions, and therefore do not adopt an opt-out at this time," the PUC said.

"We will not rule out consideration of a CAM opt-out at a future date. However, we have considered parties’ positions on more than one occasion, and declined to adopt a CAM opt-out. Therefore, we are disinclined to relitigate this issue in the future unless all or nearly all impacted parties can agree on a specific, detailed and implementable proposal, or there are significant changed circumstances," the PUC said.

R.12-03-014