Posted by: jbarnesca | April 11, 2013

5th RAM RFO Authorized and Timing Set

Prior to this new resolution the 4th RAM RFO this spring was to be the last authorized RAM RFO, although an additional 5th RAM offering has been discussed for some time.

Resolution E-4582 sent this Tuesday(April 9th) and scheduled for CPUC approval at their May 9th meeting makes the changes to the prior RAM resolutions and decisions. This resolution modifies the capacity allocation requirements for the fourth RAM solicitation, authorizes the 4th RAM solicitation to close on June 28th 2013, and authorizes the 5th RAM solicitation to close no later than June 27th, 2014.

In the RAM decision, D.10-12-048 and in subsequent resolutions the Energy Division Staff has the authority to recommend modifications to the RAM program on its own motion. Such modifications were made after the second RAM solicitation, where the ugly Resource Adequacy (RA) changes were made and the new TOD payment schedule without RA was decreed.

The new table of allocations is also formally shown in this resolution with the added capacity from SCE moving 225MW from their SPVP program and SDG&E moving 74MW from their Solar Energy Program (SEP) into the RAM program capacity allocations. These new allocations shown below add to 1.299 GW for the total program.  Note that the request by PG&E to terminate their IPP solar program and move that into their RAM is not reflected in this resolution.

  • SCE         723.4 MW
  • PG&E     420.9 MW
  • SDG&E  154.7  MW

An important change is a new allocation of the remaining capacity for the 4th and 5th RAM offerings.

“Therefore the Commission finds that the three IOUs must reserve one-third of their remaining previously authorized, yet unsubscribed, RAM capacity for their fifth RAM auctions.”

Some reasoning for delaying winning bids from the 4th to the 5th RAM auctions was made.  “…it would be expected that a project selected from RAM4 would achieve commercial operation by the end of 2015, in the middle of the second compliance period established by SB 2 (1X), at a time when each of the three IOUs are projected to be net long in their RPS compliance positions”.  Thus we see this resolutions allows the utilities to delay over 33% of their remaining requirements one year from the previous requirements of the program.  Pretty sweet for the IOUs.

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Responses

  1. Good post.

  2. Why is this decision sweet for the IOUs? Sign the PPA this year, sign it next year, does the timing matter to them?

    The decision could be good for ratepayers if the $/MWh keeps moving down on its current trajectory.

    The decisions could be mixed for developers. The increased RAM capacity from SCE and SDGE is good, but the shift of capacity to later RAM could be bad for some (like developers that don’t have the capital to carry the project through to bid the 5th RAM).

    I appreciate your thoughts.

    • The timing delay for the completion of the allocation will indeed force many developers to consider dropping their projects beause of continuing increasing fees to the utilities for interconnection charges.

      I just believed that giving all a chance to bid this year would give more developers the chance for a PPA and not be a continuing change in the rules to the advantage of the utilities.

  3. […] projects under 20 MW in size. In the first RAM solicitation (there have been 4 so far, with a 5th planned), Southern California Edison received 92 bids from 28 companies, totaling over 1,200 MW in offers. […]

  4. […] projects under 20 MW in size. In the first RAM solicitation (there have been 4 so far, with a 5th planned), Southern California Edison received 92 bids from 28 companies, totaling over 1,200 MW in offers. […]


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