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California PUC requires SCE to procure at least 50 MW of new electrical capacity in LA Basin from energy storage systems

In a recent vote, the California Public Utilities Commission (CPUC) authorized Southern California Edison (SCE) to procure between 1,400 and 1,800 megawatts (MW) of electrical capacity in the Los Angeles basin. Among the requirements of the decision is that at least 50 MW must be procured from energy storage resources. and at least 150 MW through preferred resources (energy efficiency, demand response, and distributed generation).

For the defined portion of the Los Angeles basin, at least 1,000 MW, but no more than 1,200 MW of this capacity must be procured from conventional gas-fired resources.

The decision requires that the new resources be located in a specific transmission-constrained area in Los Angeles in order to ensure adequate available electrical capacity to meet peak demand, and ensure the safety and reliability of the local electrical grid.

In the CPUC’s next long-term procurement proceeding, expected to commence in 2014, the CPUC will evaluate whether there are additional localized electricity needs in California.

SCE must now file an Application for each local reliability area seeking approval of contracts arising from the procurement process authorized. The Applications are expected in late 2013 or early 2014. Separately and earlier, SCE may also file applications for gas-fired generation in order to expedite review of such contracts.

Today’s decision takes a creative new approach to integrating preferred resources into our long-term planning process. This approach is a major step forward in our efforts to reduce greenhouse gas emissions and fight climate change. It will also allow us to exercise a more strategic deployment of preferred resources by targeting them at geographic areas where they are most needed and designing them with operational characteristics that best suit the need.

—CPUC President Michael R. Peevey

Today’s decision begins the hard work of rebuilding antiquated electric infrastructure in and around Los Angeles. Going forward, SCE’s customers will not be solely reliant on a fossil fueled electric supply. They will increasingly have their electric needs met by a competitive portfolio of energy efficiency, electric storage, demand response, and distributed generation. This is a critical step, bridging our past and future.

—Commissioner Mike Florio


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