TheChangingElectricUtilityIndustry̶Roles&OpportunitiesforLocalGovernments

StatewideEnergyEfficiencyCoordinatorConference,Sacramento,June21-22,2018

HowardChoyConsulting,LLC ICF

TheEnergyCoalition

EESConsulting

Presenters

• HowardChoyConsulting,LLC– Moderator(blurb)

• RandyBritt,Vanir(Vanirblurb)

• GeneRodrigues,ICF(ICFblurb)

• CraigPerkins,TheEnergyCoalition,(TECblurb)

• AnneFalcon,EESConsulting,(EESblurb)

THISISNOTACOMMUNITYCHOICEAGGREGATION

PRESENTATION

(You’rewelcome!)

TheVerticallyIntegratedUtilityModel…

ischangingrapidly!!

Policy,Regulatory,Markets,TechnologyaretheDrivers

NEWPROVIDERS,NEWSOURCES

IOUs,CCAs,DirectAccessSolar,StorageCostCompetitivenessCACarbonFreePoliciesCCAPoliciesDistributed,LocalGenerationLoadServingEntities

ProcurementOptions

GRIDRELIABILITY,RESILIENCE

Regional,LocalFocusDistributedGeneration/Resource

AdvancementsGridNeedProcurementProgramsCACarbonFreePolicies

CUSTOMERCHOICES

CustomerProviderOptionsNewCustomerTechnologies

- EV,DG,Storage,EE,microgrids, smartbuildings

CarbonFreeChoicesRegional/Local/CommunityFocus

WhereAreWeHeadedTechnologically?

WhereAreWeHeadedMarket-wise?

Consumer

Independent SystemOperatorMarkets

DODistributionOwner(NetworkOperator)

DSO(DistributionMarket

Operator)

TransmissionOperator

Prosumer (DER) ThirdParty (DER)

DistributionNetwork

Dispatch/ MarketSchedule

SettlementM&V

Market Data(Internet)

DERControlandMonitoring(Internet)

Utility

Network

Bulk System

DistributionSystem

NetworkControl andMonitoring(SCADA)

Energy&ServicesEnergy& ServicesEnergy

PhysicalEnergyFlow

MarketCoordination

Coordination

Aggregator

IndirectDER controlvia DO

Total DSO

*SimplifiedversionofPNNL"Grid Architecture 2",January 2016

NewLocalGovernmentPrioritiesinCommunityEnergy?

DecarbonizeEverything- GridResilienceforBuildings,Campuses,Communities,Regions- AvoidedFossilFuelGenerationGridReliability

InfrastructureDevelopment(inyourcommunities!)

EnergySupplyManagementDecisions(localvs.centralized)- LocalPolicyandDecisionMaking

Newopportunitiesforelectricconsumptionundersolarpeakperiods.

Newpeakperiodrequiresefficiency,reducedconsumption

OneOutcomeofThisEvolution&Opportunity

QUACK!

WhatLocalGov’tResourcesAreAvailable?

MunicipalFinancing

PACE

Energy,Sustainability,Planning,CommunityDevelopment

ORGs

CCAProgramsRENs,LGPs,

IOUs

CommunityMarketing&Outreach,ProgramBranding

InternalEnergy

ManagementORGs

CECCARB

Cap&Trade

EnergyOrdinances

CodeCompliance-Enforcement

EnergyDistricts

TaxingAuthority

TheHardPart– WherearetheOpportunities?

GENERATIONIOULongTermProcurementPlans,CCAWholesaleProcurementPlans, LoadServingEntityIntegratedResourcePlans

WillallincludeprocurementofDERsaspartofportfolios

GRIDLocalCapacityRestrictionRequestforOffers/Proposals

PreferredResourcePilots

DistributedResourcePrograms

DemandResponseAuctionMechanism

AllseekDERimplementation,locationalspecific

ENDUSERS

NewTimeofUseTariffsRollingPortfolio forEE

NewRENs,CCAEEProgramsCECEPICandAECGrants

DERGridPrograms,EVCharging

REGULATORY

IntegratedDemandSideManagement,IntegratedDERs

Planning,TransportationElectrification,

StorageMultipleUse,TimeofUseRates

Synthesizing:TheBottomLine

NoMoreFossilFuelinCalifornia?See:PuentePowerPlant,EllwoodPeakerPlant

MassiveDERstoMitigateDiabloCanyon

SanOnofre andAlisoCanyonMitigatedbyDERs

GridOperatorUpgradesVS.DERsConflictBeingMitigated?

DERsEnhancedbyNewTechnologies

DERsGoingInIFOMandBTM

WhyisThisImportanttoLocalGovernments?

N IMBY!!!

Y IMBY!!!

Let’sTalkCCAs– AreTheytheAnswer?HowFarCanLocalControlGo?

Whatisthedefinitionof“local?”

ProcureDERsunderProcurement,ResourcePlanslocational-specific

“LocalRates”asDERsincentives?

Customerbehaviorthroughratedesign?

Supportprogramsinlocational-specificcommunities

Partnerw/IOUsonGridNeedsPrograms

PartnerwithOthers(LGstoo!)

AcquireOtherFunds

WellIt’sHappening!OaklandCleanEnergy

Initiative,LocalBusiness

DevelopmentPlanRCEA

administersalloftheregion’s

energyprograms

LocalDistributedGeneration,CPUC

EEFunding

Localsolarordinances,

transportationelectrification,CPUC

EEFunding

TransportationElectrification,Fire

ImpactedCarbonFreeRedevelopment

OK,Let’sCallOutOurIOUPartnersasWell!

LCRRFPMoorpark/GoletaEncouragedbidstocoordinatewithLGs

OaklandCleanEnergyInitiative

ProposaltoCityofSanDiegofor100%RenewableEnergy

Supply

TimetoTransition“We(LocalGovernments)don’thavethe:re$ource$,

expertise,time,ETC”

“TheIOUswon’tletus…”

“It’snotapriorityforourelecteds…”

Youhavere$ource$,expertiseinCCAs,RENs,LGSEC

Engageyourfinanciallysustainablesourcesofexpertise

Getinvolvedincurrentopportunities,canbearevenuesource

WorktogetheronaVisionwithclearCCAroles,localgovernmentandothers’roles

ThankYou!

HowardChoyConsulting,LLC

ICFThe

EnergyCoalition

EESConsulting