to procure capacity to satisfy minimum resource adequacy procurement requirements. Further, we will consider how such participation in a CAISO-run capacity market will affect or relate to procurement authorized through existing Commission policy mandates (in particular preferred resources). In considering these issues we will especially look to receive legal analyses from parties on the viability of maintaining a residual role for a market-based procurement mechanism, in light of the extensive litigation over the Federal Energy Regulatory Commission’s (FERC) administration of market rules and legal challenges to state procurement programs in regions subject to FERC-regulated organized capacity markets. The CAISO has initiated a stakeholder process to develop a proposal to replace the CPM with another market-based backstop procurement mechanism, such as a Reliability Services Auction. The CAISO will develop the proposed design details for the replacement backstop procurement mechanism, but we expect to receive the CAISO’s proposal in this proceeding. Once we have the proposal the Commission will seek party input through workshops and comments and we may solicit the advice of expert consultants. We expect this process to ultimately result in a Commission policy determination on whether it supports or opposes implementation of the proposed backstop procurement mechanism, including any potential modifications the Commission would endorse. The determination will be made on a time frame that is coordinated with the CAISO stakeholder process, and accordingly can inform a CAISO decision on whether (and how) to submit the proposal for approval by the FERC. Issues we expect to consider in this track of the proceeding include the following:
to procure capacity to satisfy minimum resource adequacy procurement requirements. Further, we will consider how such participation in a CAISO-run capacity market will affect or relate to procurement authorized through existing Commission policy mandates (in particular preferred resources). In considering these issues we will especially look to receive legal analyses from parties on the viability of maintaining a residual role for a market-based procurement mechanism, in light of the extensive litigation over the Federal Energy Regulatory Commission’s (FERC) administration of market rules and legal challenges to state procurement programs in regions subject to FERC-regulated organized capacity markets. The CAISO has initiated a stakeholder process to develop a proposal to replace the CPM with another market-based backstop procurement mechanism, such as a Reliability Services Auction. The CAISO will develop the proposed design details for the replacement backstop procurement mechanism, but we expect to receive the CAISO’s proposal in this proceeding. Once we have the proposal the Commission will seek party input through workshops and comments and we may solicit the advice of expert consultants. We expect this process to ultimately result in a Commission policy determination on whether it supports or opposes implementation of the proposed backstop procurement mechanism, including any potential modifications the Commission would endorse. The determination will be made on a time frame that is coordinated with the CAISO stakeholder process, and accordingly can inform a CAISO decision on whether (and how) to submit the proposal for approval by the FERC. Issues we expect to consider in this track of the proceeding include the following: