Reliability Capacity Services Tariff (RCST) Initiative	Back to Previous Page  Download Adobe Reader

Background On August 26, 2005 the Independent Energy Producers Association (IEP) initiated a proceeding at the Federal Energy Regulatory Commission (FERC) challenging the FERC imposed Must-Offer Obligation as unjust and unreasonable and recommended replacing it with a tariff-based procurement mechanism entitled Reliability Capacity Services Tariff (RCST) (FERC Docket EL05-146-000). On March 31, 2006, the California ISO (CAISO), in collaboration with IEP, CPUC and other stakeholders, filed an Offer of Settlement that proposed the institution of an RCST with modifications to the existing Must-Offer Obligation. Under the Offer of Settlement, the RCST will provide the CAISO a reliability backstop procurement mechanism to ensure the reliable real-time operation of the CAISO-controlled grid and ensure that generators are compensated for the needed reliability and capacity they provide. The CAISO is awaiting FERC to approve the Offer of Settlement and associated Tariff.

Outcome The Reliability Capacity Services Tariff (“RCST”) was approved by the Federal Energy Regulatory Commission in a series of orders issued in 2006 and 2007. The RCST provided the CAISO with a reliability backstop procurement mechanism to ensure the reliable real-time operation of the CAISO-controlled grid and that generating units are compensated for the capacity that they provide. The RCST also modified the compensation provided to generating units under the Must Offer Obligation. The RCST became effective on June 1, 2006 and terminated on May 31, 2008 when it was superseded by the Transitional Capacity Procurement Mechanism.

Process

Relevant Market Notices

2007 RCST - Filed Tariff Amendment to Address RCST for 2007 Filed Tariff Language - December 15, 2006 pdf 1302K | Abstract | 12/18/2006 14:03

2007 RCST - Revised Draft Tariff Language for Amendment to Address RCST for 2007 Revised Draft Tariff Language - December 11, 2006 Blackline Draft pdf 70K | Abstract | 12/12/2006 15:32 Revised Draft Tariff Language - November 21, 2006 Blackline Draft pdf 65K | Abstract | 11/21/2006 15:39

2007 RCST – Stakeholder Written Comments after 30-Nov-2006 Conference Call California Municipal Utilities Association Comments pdf 68K | Abstract | 12/11/2006 16:48 Silicon Valley Power Comments pdf 40K | Abstract | 12/07/2006 15:19

2007 RCST – Materials for Stakeholder Conference Call 30-Nov-2006 Agenda - RCST Conference Call 30-Nov-2006 pdf 51K | Abstract | 11/28/2006 17:00 Presentation - RCST Conference Call 30-Nov-2006 pdf 67K | Abstract | 11/29/2006 11:18

2007 RCST – Stakeholder Written Comments due 27-Nov-2006 California Department of Water Resources’ State Water Project Comments pdf 76K | Abstract | 11/28/2006 10:17 Alliance for Retail Energy Markets’ Comments pdf 66K | Abstract | 11/28/2006 10:19 Southern California Edison Company’s Comments pdf 29K | Abstract | 11/28/2006 10:22 City of Azusa’s Comments pdf 72K | Abstract | 11/28/2006 10:24 City of Riverside’s Comments pdf 45K | Abstract | 11/28/2006 16:46

2007 RCST – Preliminary Stakeholder Written Comments The Cities of Anaheim, Azusa, Banning, Colton, Pasadena and Riverside’s (“Six Cities”) Comments pdf 67K | Abstract | 11/13/2006 11:05 Southern California Edison Company’s Comments pdf 46K | Abstract | 11/13/2006 11:08 William’s Comments pdf 29K | Abstract | 11/13/2006 11:10 California Municipal Utilities Association’s Comments pdf 90K | Abstract | 11/13/2006 11:12 Pacific Gas & Electric Company’s Comments pdf 63K | Abstract | 11/13/2006 11:14 Alliance for Retail Energy Markets’ Comments pdf 95K | Abstract | 11/13/2006 13:48

2007 RCST – Materials for November 14, 2006 Stakeholder Meeting Agenda for November 14, 2006 RCST Meeting pdf 51K | Abstract | 11/08/2006 16:40 Presentation for November 14, 2006 RCST Meeting pdf 123K | Abstract | 11/08/2006 16:42 CAISO White Paper: Proposed Tariff Amendment to address RCST for 2007 pdf 103K | Abstract | 11/02/2006 16:14 Draft Tariff Language for Proposed Amendment to address RCST for 2007 pdf 85K | Abstract | 11/02/2006 16:16 March 31, 2006 Offer of Settlement pdf 5676K | Abstract | 10/26/2006 08:41 July 20, 2006 Order on Complaint and Offer of Settlement in Docket No. EL05-146-000 (IEP- v. California ISO - RCST) pdf 177K | Abstract | 07/21/2006 13:39 September 27, 2006 FERC Order on Clarification pdf 105K | Abstract | 10/26/2006 08:44 October 20, 2006 Compliance Filing of the California ISO in Docket No. EL05-146-___ (IEP v. CAISO - RCST Tariff Matter) pdf 3189K | Abstract | 10/23/2006 10:43