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Connecting the Dots

Edward RandolphDirector, Energy Division

California Public Utilities Commission

Date (example: April 26, 2012)

Connecting the Dots •Many different ways to connect the dots,

•Best to start at the point in time and explain how things built from there.

•So I will start at the year 1 AeC.

Move Back into Long Term Planning

• As part of unwinding the energy crisis the Legislature and the CPUC created a process for long term planning by the IOUs.

• This eventually became know as the Long Term Procurement Planning (LTPP).

• There have been changes overtime and will continue to change as we learn more and the needs of the gird change.

• Also eventually added Resource Adequacy to the mix

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LTTP Today

• Open issues from the 2012 LTTP– SCE Track I Application– SCE Living pilot– SDG&E Carlsbad Application– SDG&E All source RFO/Application

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LTPP Today

• 2014 LTPP

– Phase 1a -- Capacity and flexibility needs

– Phase 1b -- 2015 procurement Authorization

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Resource Adequacy

• 2015 Compliance Year Proceeding to open this fall:– Should we unbundle system and flexible capacity?– Should/can we count curtailable renewable resources and if so,

how? – Should we change the allocation of flexible resource

requirements?

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Then We Added Renewables

• Today Goal is 33% by 2020 with AB 327 setting that as a floor.– Current RPS Proceeding

• 2015 Procurement plans (based on compliance need not system need)

• RPS calculator (feeds back to needs and Transmission Planning in LTPP)

• Procurement Streamlining• RAM review (smaller non-DG procurement)• ReMAT (small DG)

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RPS (well maybe)

• “Integration Adder” – or Total Resource Valuation. – Legislation requires valuation of integration

costs into Least Cost Best Fit.– Process was already underway – will entail

inputs from LTPP, RA, and RPS. – Could ultimately be used to value DR and EE.

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Then Came Customer Generation

• California Solar Initiative & SGIP– Relates back to LTPP in RA by impact future

demand forecasts. – Relates to RPS IF customer sells RECs – but

otherwise doesn’t impact RPS.

• NEM 2.0

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Then Came GHG(well it had been there for a while but we decide to reduce our production)

• Direct impact– Proceedings on cost allocation issues.

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Then Came GHG(and a bunch of separate Programs to meet the goals. )

• Electric Vehicles • Utility role in infrastructure

• Vehicle to grid integration

• Demand Response– 2015 reauthorization

– Foundation policy issue to promote big increase

– Guidance for future portfolios

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Then Came GHG(and a bunch of separate Programs to meet the goals.

• Energy Efficiency– Decision on 2015 funding mailed this week.– Next phases look at rolling portfolio and

program redesign issues.

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Then Came the Future

• Distributed Resources Plan Proceeding– Establishes policies, procedures and rules for development of

Distribution Resources Plans• Phase 1: Aug – January, provide guidance for utility

Distribution Resources Plans (DRPs) required by AB 327 (Sec. 769)

• Phase 2: Commencing July 1, 2015, evaluate DRP filings and future investments in electric distribution infrastructure.

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Then Came the Future

• Interconnection Reform

• Energy Storage

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AND then There are Others….

• CEC IEPR

• CAISO TPP

• Joint Agency Steering Committee (JASC) (Padilla Letter)

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Here we go….LTTP

RA

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RPS

Customer Generation

EE

Elect Vehicles

JRF

Distribution Resource Plan

Interconnection reform

GHG costs

Demand response

Rate reform

Rate cases

storage

What’s ahead?

• RADICALLY DIFFERENT?– All Source Procurement?– Clean Energy Standard?– Death of the special programs?

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A Little Bit of Bragging

• In 2013 total renewable production in California was 19% of total load– Average prices were $0.15 per kWh

• In 2013 total renewable production in Germany was 21% of total load– Prices were between $0.30 and $0.39 per

kWh

Thank you!For Additional Information:

www.cpuc.ca.govwww.GoSolarCalifornia.ca.gov

www.CalPhoneInfo.com