Pub. Util. Code, § 397

(a) (1) The commission shall, in an existing or a new proceeding, develop methodologies for allocating electrical system integration resource procurement needs to each load-serving entity, as defined in Section 380, based on the contribution of the load-serving entity’s load and resource portfolio to the electrical system conditions that created the need for the procurement and for determining any costs resulting from a failure of a load-serving entity to satisfy its allocated procurement needs. Those needs and costs shall be limited to those that are subject to the commission’s jurisdiction pursuant to Section 380, 454.51, or 454.52.

(2) The electrical system integration resource procurement needs and costs described in paragraph (1) shall include, but are not limited to, those relating to the following:

(A) Resource adequacy requirements associated with system flexibility, as described in subdivision (c) of Section 380.

(B) Integration resources identified as needed, or proposed in response to system operational needs identified, through the process described in subdivision (a) of Section 454.51.

(b) The commission shall use the methodologies developed pursuant to subdivision (a) in allocating electrical system integration resource procurement needs and any costs resulting from a failure to procure resources to satisfy those allocated procurement needs pursuant to Section 380, 454.51, or 454.52.

(c) For purposes of this section, “electrical system integration resources” means resources that provide certain electrical system integration functions, benefits, or attributes, such as flexible ramping capability.

(d) This section does not require the procurement of a specific resource or technology type.