Platts
The California Independent System Operator will begin using a competitive solicitation process early next year to acquire backstop capacity when there are unexpected shortages or grid reliability issues under a plan approved by federal regulators.
“We find that compensating [capacity procurement mechanism] capacity based on the results of a competitive solicitation process will result in compensation driven by competitive factors and, therefore, will appropriately reflect both changing market conditions and corresponding fluctuations in capacity prices,” the …