RELIABILITY OF CORPORATION NOVEMBER 8, 2013 I. EXECUTIVE SUMMARY The California Public Utilities Commission (CPUC) and California Independent System Operator Corporation (ISO) present this Joint Reliability Plan describing steps the two entities plan to take to ensure long-term electric reliability in California. Inter-organizational cooperation between the CPUC and ISO on resource and reliability planning has always been critical, but expected changes over the next decade merit the two organizations renewing their joint commitment to providing a reliable electric supply, at just and reasonable rates, while supporting the achievement of California’s environmental policies. The regulations as well as the planning and contracting processes that currently guide resource procurement in California have provided for reliable electricity service over the past decade. But electric system is undergoing fundamental California’s changes as unprecedented levels of renewable resources reach commercial operation to meet renewable portfolio standard. California has also adopted a policy California’s to retire, repower, or replace tens of thousands of megawatts of gas-fired power plants that use once through cooling technology in order to protect marine life. These transformations pose new operational and market challenges that resource planners and transmission operators must be aware of, and responsive to, in order to ensure reliable electricity supplies. Accordingly, the CPUC and ISO agree on the guiding principles described herein and to consider three proposed initiatives set forth in this Joint Reliability Plan. This Joint Reliability Plan does not commit the CPUC or ISO to reach specific policy outcomes for the three proposed initiatives, but it commits the CPUC and ISO to consider their design and implementation through appropriate CPUC proceedings and ISO stakeholder processes. The CPUC and ISO will use the Joint Reliability Plan to
RELIABILITY OF CORPORATION NOVEMBER 8, 2013 I. EXECUTIVE SUMMARY The California Public Utilities Commission (CPUC) and California Independent System Operator Corporation (ISO) present this Joint Reliability Plan describing steps the two entities plan to take to ensure long-term electric reliability in California. Inter-organizational cooperation between the CPUC and ISO on resource and reliability planning has always been critical, but expected changes over the next decade merit the two organizations renewing their joint commitment to providing a reliable electric supply, at just and reasonable rates, while supporting the achievement of California’s environmental policies. The regulations as well as the planning and contracting processes that currently guide resource procurement in California have provided for reliable electricity service over the past decade. But California’s electric system is undergoing fundamental changes as unprecedented levels of renewable resources reach commercial operation to meet California’s renewable portfolio standard. California has also adopted a policy to retire, repower, or replace tens of thousands of megawatts of gas-fired power plants that use once through cooling technology in order to protect marine life. These transformations pose new operational and market challenges that resource planners and transmission operators must be aware of, and responsive to, in order to ensure reliable electricity supplies. Accordingly, the CPUC and ISO agree on the guiding principles described herein and to consider three proposed initiatives set forth in this Joint Reliability Plan. This Joint Reliability Plan does not commit the CPUC or ISO to reach specific policy outcomes for the three proposed initiatives, but it commits the CPUC and ISO to consider their design and implementation through appropriate CPUC proceedings and ISO stakeholder processes. The CPUC and ISO will use the Joint Reliability Plan to
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