CalCCA Welcomes Modifications to Central Buyer Structure

FOR IMMEDIATE RELEASE: March 21, 2022
Contact: Leora Broydo Vestel
(415) 999-4757 | leora@cal-cca.org

CalCCA Welcomes Modifications to Central Buyer Structure

Concord, Calif. – The California Public Utilities Commission (CPUC) on March 17 approved several improvements to the state’s central procurement entity (CPE) structure to make it more transparent and inclusive.

The Commission adopted the CPE structure in 2020, designating Pacific Gas and Electric (PG&E) and Southern California Edison (SCE) as central buyers to procure local, multi-year resource adequacy on behalf of load-serving entities (LSEs) including community choice aggregators.

PG&E and SCE had mixed results in 2021, their first year as central buyers. Notably, PG&E fell short of the 2023 local RA requirement by about 6,000 megawatts (MW), or 53 percent of its total requirement, according to a compliance report filed by the investor-owned utility. PG&E did not, however, specify how the obligation would be met, creating high levels of uncertainty for LSEs.

In response to input from CalCCA and other stakeholders, the CPUC modified the existing CPE structure in three key ways:

  • Recognized the risk the CPE’s failure to timely procure the needed resources presents to other LSEs, giving additional time for 2023 compliance
  • Reduced disincentives and removed barriers faced by LSEs selling their local resources to the CPE
  • Increased stakeholder transparency into the CPE’s procurement activities

CCAs opposed assigning investor-owned utilities the role of central buyer, citing a lack of neutrality and transparency. A 2019 settlement agreement supported by CalCCA and other major energy market stakeholders would have designated a “competitively neutral, independent and creditworthy entity” as central buyer. The CPUC rejected the settlement, opting instead for the current CPE structure.

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About CalCCA: Launched in 2016, the California Community Choice Association (CalCCA) represents California’s community choice electricity providers before the state Legislature and at regulatory agencies. There are currently 23 operational CCA programs in California serving more than 11 million customers. For more information about CalCCA and community choice, visit www.cal-cca.org.