Electricity: resource adequacy requirements.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC, in consultation with the Independent System Operator (ISO) , to establish resource adequacy requirements for all load-serving entities, defined to include electrical corporations, community choice aggregators, and electric service providers. Existing law requires that the resource adequacy program achieve specified objectives, including to establish new or maintain existing demand response products and tariffs that facilitate the economic dispatch and use of demand response that can either meet or reduce an electrical corporation's resource adequacy requirements, as determined by the PUC. This bill would require the PUC, by July 1, 2021, and in furtherance of the above-described objective, to (1) establish rules that allow demand response programs and resources procured by a load-serving entity to meet the load-serving entity's resource adequacy requirements regardless of whether the program is integrated into the wholesale market overseen by the ISO, (2) adopt a baseline methodology that treats the charging of energy storage as load in baseline calculations for demand response programs, (3) allow customer-sited distributed eligible renewable energy resources and energy storage systems participating in a demand response program, or product developed pursuant to (1) , to deliver electricity to the grid for purposes of providing resource adequacy, and (4) establish a capacity valuation methodology for customer-sited energy storage resources and customer-sited hybrid resources, as defined, in consultation with the ISO and the State Energy Resources Conservation and Development Commission, and ensure that the capacity valuation applies to demand response resources coupled with customer-sited hybrid or customer-sited storage resources for the 2022 resource adequacy year.