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IOU LEAST COST-BEST FIT (LCBF): ALIGN WITH RPS CALCULATOR?

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Overview of LCBF Alignment Panel Discussion

• Purpose: – Understand IOUs’ perspective on how the issues discussed

during the workshop might inform the 2015 LCBF revisit and the determination of need in RPS procurement plans going forward

• Out of Scope:– Panel discussion is not about how the RPS calculator can be used

to rank RPS RFO bids or supplant the IOUs’ LCBF methodology

• Panel format:– IOU presentations on current LCBF methodology– IOU panel discussion regarding possible changes to LCBF – Facilitated Q&A with stakeholders

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What is LCBF?• 2003: CPUC defines LCBF and establishes LCBF ranking

process

– Methodology used by IOUs to rank offers in RPS annual RFO

• 2004 - 2012: CPUC makes incremental improvements to LCBF

• 2012: CPUC requires standardized variables in IOUs’ net market value calculation (NMV), which is part of LCBF

– NMV: (energy value + capacity value) – (post-TOD adjusted PPA price + transmission network upgrade costs + congestion costs + integration costs) + ancillary services value