The Corrosive Effects of Political “Capture” -Wednesday, January 13, 2021
A recent effect of the rolling blackouts last summer was that the Federal Energy Regulatory Commission (FERC) considered last month (but ultimately rejected) an investigation into the CAISO’s Resource Adequacy (RA) program. A colleague in California suggested that CAISO’s Capacity Procurement Mechanism (CPM) provided the backstop California likely needed to avoid the rolling blackouts. We agreed the CAISO may have been reluctant to exercise this authority. The last time they did in 2017, they got slapped by the CPUC because natural gas units had been selected to meet a shortfall.