CPUC Advances Clean and Affordable Electricity with New Procurement Decision

At the California Public Utilities Commission’s (CPUC) Feb. 26, 2026 Voting Meeting, an Integrated Resource Planning (IRP) decision was approved that strengthened grid reliability and advanced California’s clean energy goals, while keeping affordability at the forefront for customers.

The decision takes coordinated action on two critical fronts: securing new clean electricity resources (power supply) and planning cost-effective transmission upgrades (power delivery) to allow electricity to be delivered where and when it is needed. The portfolio of resources selected to plan for future power delivery is larger than last year's portfolio, and more of nearly every resource type is optimally selected to reliably meet greenhouse gas (GHG) reduction needs and serve forecasted load growth.

Building Clean Power Supply for 2029–2032

To maintain reliability amid forecasted demand growth, the CPUC is requiring electricity providers under its jurisdiction, including investor-owned utilities, electric service providers, and community choice aggregators, to procure 6,000 megawatts (MWs) of new clean energy and storage net qualifying capacity (NQC). NQC refers to the total amount of power a generating resource can reliably provide to the electrical grid. Retail electricity providers must secure:

• 2,000 MWs NQC by June 2030
• An additional 2,000 MW by June 2031
• An additional 2,000 MW by June 2032

All procurement must come from clean energy generation, such as solar, wind, or geothermal, or from energy storage technologies, including batteries. Fossil fuel generation cannot be used to meet these requirements.

Importantly, at least 25 percent of the new procurement must be from resources that have the attributes associated with clean, firm power and/or long-duration energy storage, consistent with modeling showing a need for these characteristics.

Delivering Reliability and Affordability

This forward-looking procurement requires that electric retail providers continue to serve customers with new clean energy and storage resources that:

• Maintain reliability during heat waves and peak demand periods
• Reduce reliance on older fossil fuel plants
• Align energy purchases with transmission investments to avoid costly mismatches
• Avoid expensive emergency actions by planning ahead

Requiring competitive procurement of cost-effective clean resources helps secure the best value for ratepayers while advancing California’s transition to a cleaner grid.

Planning Transmission to Deliver Clean Power

As part of its planning role, the CPUC develops portfolios of new generation and storage resources to submit to the California Independent System Operator (CAISO), which evaluates and plans needed transmission upgrades. The transmission planning portfolio:

• Meets California’s electricity system reliability standards
• Charts a clear path toward achieving electric-sector GHG reduction and clean energy goals
• Enables CAISO to plan transmission at the lowest feasible cost by aligning infrastructure investments with where clean energy and storage provide the greatest system value

By proactively coordinating power supply and power delivery, the CPUC is helping to efficiently integrate new, needed clean resources into the shared grid.

Coordinated Path Forward

With its decision, the CPUC continues to advance a balanced strategy that:

• Promotes reliability through timely procurement of clean, dependable resources
• Protects affordability by emphasizing least-cost planning and competitive, cost-effective resource selection
• Reduces GHG emissions while reliably serving growing electricity demand
• Optimizes clean energy development and promotes strategic infrastructure investments for the shared grid

By aligning procurement and transmission planning, the CPUC is helping to keep California’s electricity system clean, reliable, and cost-effective for years to come.

“California is the model for how to proactively plan and successfully procure the clean energy assets capable of powering the world’s fourth largest economy,” said CPUC President Alice Reynolds. “Our decision keeps the state on a path to protect customer bills while advancing infrastructure that will continue to reliably power California’s diverse needs, serving every load from electric vehicles and homes to technology and advanced manufacturing industries.”

More Information

• Fact Sheet
• Proposal Approved