The Federal Energy Regulatory Commission on Nov. 19 rejected CXA La Paloma LLC’s petition to order California Independent System Operator Corporation to implement a centralized resource adequacy procurement process and a transitional payment mechanism. In a complaint filed in June, the company alleged that the continued dependence on “stopgap mechanisms” for resource adequacy has led to insufficient revenues and has caused new and efficient generators to go bankrupt or exit the market. The commission said that the complaint fails to demonstrate that CAISO tariffs are discriminatory or identify specific provisions, but complains generally about low prices for capacity transactions that could lead to a shortage of generation resources with flexibility attributes to maintain reliability. FERC noted that it “has not imposed a centralized capacity market” in a region or found it to be the only just and reasonable resource adequacy construct. The eastern centralized capacity markets stemmed from section 205 filings or settlements, and hence the complainant’s reliance on precedent concerning the eastern markets is inept, the commission said. FERC also noted that it has consistently rejected a one-size-fits-all approach to resource adequacy, citing the agency’s recent denial of mandatory centralized capacity market in the Midwest region despite concerns that the existing construct was failing, and the approval of a construct in the Southwest Power Pool based on bilateral contracting. CXA La Paloma owns the 1,124-megawatt natural gas-fired La Paloma generating facility in California.