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To estimate Alameda CCA's capacity requirements, MRW developed a forecast of Alameda CCA's peak demand in each year and subtracted the net qualifying capacity credits provided by Alameda CCA's renewable power purchases. This is appropriate because the renewable energy prices used in this analysis reflect prices for contracts that supply both energy and capacity. If Alameda CCA purchases renewable energy via energy-only contracts, Alameda CCA's need for capacity will be greater than forecasted here, but these higher costs will be fully offset by the lower costs for the renewable energy. MRW estimated current peak demand for Alameda CCA's load using the 2013-2014 monthly bills for all the current PG&E clients in Alameda county17 and PG&E's class-average load profiles. We forecasted changes to this peak demand based on the California Energy Commission's forecast of changes to peak demand in PG&E's planning area.i8 We calculated capacity requirements as 115% of the expected peak demand in order to include sufficient capacity to fulfill resource adequacy requirements. We applied a consistent methodology to obtain the peak demand growth rates and capacity requirements for PG&E. To estimate the cost of Alameda CCA's capacity needs, MRW priced capacity purchases at the median price of recent Resource Adequacy purchases, escalated with inflation.t9 17 Monthly bills corresponding to 2013 and 2014 for all the clients in Alameda county provided by PG&E. 18 California Energy Commission.Demand Forecast.PG&E Forecast Zone Results Mid Demand Case,Sales Forecast,Central Valley Region.December 14,2015. 19 CPUC 2013-2014 Resource Adequacy Report Final,August 5,2015,page 23 Table 11. July,2016 B-5 MRW&Associates,LLC