California’s Clean Power Alliance has launched a clean energy and reliability request for offers, the California community choice aggregator said on June 14.
The RFO solicits competitive proposals to better allow CPA to meet its various energy portfolio needs, while also complying with California Public Utilities Commission procurement orders and resource adequacy requirements.
Founded in 2017, CPA is the locally operated not-for-profit electricity provider for 30 cities across Los Angeles County and Ventura County, as well as the unincorporated areas of both counties.
Relative to CPA’s prior RFOs, this solicitation has expanded product categories and now includes RA-only and existing thermal energy resources with preferences for those that are transitioning to cleaner operations.
CPA has also implemented changes to its RFO eligibility requirements such as expanding term limits, allowing proposers to submit bundled offers, and a fast-track process for negotiations.
CPA noted that it has traditionally focused its RFOs on meeting various California compliance requirements. However, CPA is currently on track to meet or exceed its long-term contracting compliance requirements over the next several years.
As a result, the RFO seeks to fill a larger portion of CPA’s energy portfolio needs with long-term contracts that reduce the need for CPA to procure energy in the more expensive short-term market. Long-term contracts provide CPA a viable avenue to help stabilize customer bill costs, it noted.
Among the expanded procurement options CPA has included in this RFO are the following:
- Counterparties may propose contract terms of 10 to 20 years within most product categories, compared to the typical 15-year terms requested in previous RFOs;
- Allowing bids for Resource Adequacy only contracts, whereas previously CPA considered only projects that paired Resource Adequacy with energy;
- Consideration for bundled offers, meaning proposers can submit a portfolio for resources from multiple projects at a lower price, as opposed to individual offers for each resource offered;
- An option to request “fast-track” status for projects with unique circumstances such as very near-term online dates
Offers are due July 19, 2023.
The American Public Power Association has initiated a new category of membership for community choice aggregation programs.
