Capacity Merchant Curve

CAISO’s System Resource Adequacy (RA) program ensures that California’s load-serving entities secure enough qualified generation capacity to meet forecasted peak demand plus required reserve margins. It serves as the foundation of the state’s reliability framework, requiring forward capacity procurement across system, local, and flexible RA categories established by the California Public Utilities Commission (CPUC) and verified through CAISO’s compliance and deliverability processes to ensure sufficient resources are available when needed.