PG&E 2026 CPE Local RA RFO

Pacific Gas and Electric Company (PG&E), acting as the Central Procurement Entity (CPE), is issuing a Request for Offers and Commitments (RFO) to procure local resource adequacy (RA) capacity or obtain compensated self-shown commitments for delivery within the 2027-2029 compliance years. This all-source solicitation is required by California Public Utilities Commission (CPUC) decisions and applies to PG&E's distribution service area, specifically targeting transmission-constrained areas known as Local Capacity Areas (Greater Bay Area, Greater Fresno, Humboldt, Kern, North Coast/North Bay, Sierra, and Stockton).

PG&E CPE is seeking three primary offerings: (1) Compensated Self-Shown Commitments from CPUC load serving entities (LSEs) to reduce total local RA needs; (2) Bundled RA capacity from new and existing resources located in PG&E Local Capacity Areas; and (3) Bundled RA with Energy Settlement products that include financial energy settlement based on CAISO market energy prices. All resources must be electrically connected in a PG&E Local Capacity Area, meet applicable CPUC and CAISO RA requirements, and possess a single CAISO Resource Identification number.

Key deadlines include RFO issuance on February 12, 2026, a participants' webinar on February 26, 2026, and competitive offer submission deadlines of March 24, 2026 at 1 PM Pacific Prevailing Time (PPT) for PG&E Participant and March 25, 2026 at 1 PM PPT for non-PG&E participants via the PowerAdvocate platform. Notification of offer eligibility is expected in mid-April 2026, with estimated agreement execution in early August 2026. PG&E CPE is procuring 100% of 2027 and 2028 local RA requirements and 50% of 2029 requirements.

Competitive offers must include detailed documentation through various appendices (offer forms, supplemental information, agreements, and attestations) and may include up to five variations for Bundled RA offers. The RFO specifies comprehensive evaluation criteria using least cost best fit (LCBF) methodology with both quantitative attributes (cost-benefit analysis) and qualitative factors (resource viability, location, operational characteristics, preferred resource procurement, environmental justice considerations via CalEnviroScreen scoring).