Journey in supporting important energy and environmental policies while maintaining reliability through a resilient power grid system

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2 Journey in supporting important energy and environmental policies while maintaining reliability through a resilient power grid system December 12, 2018 Dede Subakti Director, Operations Engineering Services ISO PUBLIC 2018 CAISO

3 The California ISO: One of nine grid operators in North America 2 /3 of the U.S. is supported by an ISO One of 38 balancing authorities in the western interconnection Uses advanced technology to balance supply & demand every 4 seconds Operate markets for wholesale electricity & reserves Manage new power plant interconnections Plan grid expansions Page 3

4 Electric industry in the midst of unprecedented change - Driven by fast - growing mix of interrelated issues 6 0 % Renewables Fossil Plant Revenues; Retirements Grid Modernization Community Choice and/or Retail Choice Consumer - owned Power Transmission & Distribution Systems Interface Gas Storage Challenges Regional Collaboration 4 Page

5 Coordination with State Agencies ISO PUBLIC 2018 CAISO

6 Regulatory agency Regulatory Coordination with the ISO Resource adequacy, Integrated Resource Planning, Transmission siting, Demand response, Gas company regulation Example of coordination Resource adequacy, Transmission Project, Demand response, Gas Storage and utilization Demand forecasting and generation siting Demand forecast used in CAISO Transmission Plan Greenhouse gas (GHG) regulation GHG emissions Develops policy for cooling water intake structures Once - through cooling (OTC) retirement 6 Page

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8 California s leaders are aggressively pursuing a low carbon future. Aggressive renewable energy goals 33 % by % by % by 2045 Deep greenhouse gas (GHG) reduction goals 2020 Target Reduce GHG emissions to 1990 levels 2030 Target 40 % below 1990 levels 2050 Target 80 % below 1990 levels Robust electric vehicles goal: 5.0 million by 2030, $2.5B investment in new charging stations 10,000 MW of distributed generation by 2021; 1.3 GW of battery storage by 2024 Decarbonization is creating opportunities to develop a high renewables and high DER energy service industry. Page 8

9 Major progress on meeting CA s renewable goals Currently installed: 22,000 MW of large - scale renewables + 6,000 MW of rooftop solar 28,000 MW Additional renewables by 2030: 3,300 MW for 50% RPS * + 11,400 MW of consumer rooftop solar ** 14,700 MW * 2018 CPUC IRP ** 2017 CEC IEPR Approx. 42,000 MW installed renewables by system peak range : 24,553 MW - 46,424 MW Renewables and emissions reports: s ISO renewable resource mix ( Oct 2018) Page 9

10 Growth of renewables to achieve 60% by 2030 is expected to be largely solar Page 10

11 Distributed energy resource growth is transforming our energy supply and how the grid functions. Behind - the - Meter

12 Ambitious State Government Mandates State Law aimed to reduce the State s greenhouse gas (GHG) emissions to 40% below 1990 levels by 2030, 80% below 1990 levels by New State Law (Sept. 10, 2028) established the goals of 30% of the electricity sold in California from renewable energy and carbon free resources by 2020, 60% by 2030, and 100% by Governor s 2010 Clean Energy Jobs Plan to add 20,000 MW RE by 2020 (8,000 MW large RE, and 12,000 MW distributed energy resources, and create a half a million new jobs. 12/12/

13 Substantial Progress Made and on Track to Achieve the RE Goals Progress (as of 2017) Toward Meeting California s RE Goals Source: California Energy Commission July 2018 Tracking Report 12/12/

14 RE Capacity Installed in California by Technology Type ( source: CEC ) 12/12/

15 Composition of 29,050 MW RE capacity 17,305 large scale RE (excluding hydropower plants > 30 MW) 11,720 MW distributed RE (< 20 MW), including about 6,700 Net Metering Solar PV installations Source: CEC 12/12/

16 RE Produced in California by Technology Type in 2017 ( source: CEC ) 12/12/

17 Substantial Increases of Solar and Wind Power in California in the Past Few Years ( source: CEC ) Source: CEC 12/12/

18 Substantial Increases of Large - Scale Solar PV and Wind Capacity in California in the Past Few Years ( source: CEC ) Source: CEC 12/12/

19 Rapidly Falling Solar PV Energy Prices Everywhere in the U.S. ( source: DOE, LBL ) Source: CEC 12/12/

20 Net Metering Solar PV Installations in California Also Rapidly Increased in the Past Few Years ( source: CEC ) Source: CEC 12/12/

21 Installed Costs of Small Net Metering Rooftop Solar PV Falling Dramatically (source: DOE, LBL) 12/12/

22 New Requirements for Rooftop Solar PV for All New Homes On December 4, 2018, California Building Standards Commission adopted a new building code recommended by California Energy Commission requiring rooftop solar PV for all new homes and apartments (3 stories or less) built after January 1, This new code will help minimize strain on power grid during the afternoon peak periods, contributing to power grid reliability. It is estimated that the average rooftop solar PV will cost about $9,500, to be offset by $19,000 in energy savings over a 30-year period. 12/12/

23 The increase in rooftop solar PV installations will grow even faster in the future. Creation of Clean Energy Jobs in California Clean energy currently employs more than half a million Californians according to Clean Jobs California Report, Currently more than 2,000 solar companies (manufactures, installers, contractors, vendors, & service companies) in California. Clean energy jobs expected to continue a rapid growth in California in the future due to increasing RE expansion 12/12/

24 Example New RE Job in California Solar Maids Solar PV service companies 12/12/

25 Key Factors Contributing to California s High RE Penetration Strong and coordinated regulators Innovative regulations and electricity rate setting to address utilities financial and technical concerns on developing and procuring more RE resources, especially variable generation solar PV and wind power Strong government financial incentives to attract RE investments by developers and electricity end users 12/12/

26 Strong and Coordinated Regulators California Public Utilities Commission (CPUC) directs and closely oversees investor-owned utilities (e.g., Pacific Gas and Electric Company - PG&E) to procure renewable energy (RE) resources and achieve the Government RE goals. California Energy Commission (CEC) to oversee public owned utilities (e.g., Sacramento Municipal Utility District - SMUD) to meet the Government RE goals. Utilities Concerns about Increasing RE Penetration and 12/12/

27 Customer RE Self Generation (rooftop solar PV) Utilities are typically reluctant to promote IPP REs or net metering RE systems, concerning about: Sales and profit losses or cost of service increases caused by reduced electricity sales Potential adverse impacts on grid reliability and stability, especially variable generation solar PV and wind power Potential financial and technical problems of the existing conventional power plants as their production would be reduced by increasing RE 12/12/

28 generation (e.g., effect on existing take-or-pay PPAs) Addressing utilities financial concern about reduced electricity sale volumes and revenues caused by customer RE self generation (rooftop solar PV) Regulation to decouple utilities profits and sales volumes Energy Cost Recovery Account (ECRA) annual balancing: Utility recovers actual costs of fuel and purchased power, but do not earn a rate of return on these costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, 12/12/

29 then the utility gives money back, and vice versa. With ECRA, reduction in sale volume and revenue caused by customer self generation would not affect utilities profits Addressing utilities concern about adverse system impact from variable generation solar PV and wind power Regulations to ensure interconnection of intermittent RE generation plants will not create adverse impacts on the reliability, stability and power quality of power grids: 12/12/

30 Generator interconnection procedures & interconnection system impact study requirements Generator interconnection agreements stipulating all interconnection technical and operation requirements, and cost responsibility for system upgrades (if any) Addressing Utilities Concern about Impacts on Existing Power Plants and Take-or-Pay PPAs Power Charge Indifference Adjustment (PCIA) customers deciding not to purchase power from utilities must pay a PCIA fee (i.e., exit charge) 12/12/

31 PCIA is designed to cover utilities costs of power plants originally built and PPAs secured to serve all customers. If customers depart, the PCIA would prevent remaining customers from assuming utilities financial obligations incurred to serve the departing customers. Customer generator applying for net metering pays: Generator < 1 MW: one-time interconnection fee Generator > 1 MW: one time interconnection fee + costs of all transmission/distribution upgrades (if any) Addressing the financial barriers to RE deployment 12/12/

32 In the past, RE was more expensive than conventional power, government incentives were provided to overcome the financial barriers to RE deployment in the initial phase In the past few years, the RE prices have been falling as the RE industry has been established and expanding, government financial incentives will be phased out. Key Federal Government RE incentives: RE Investment Tax Credit (30% of total 12/12/

33 investment costs), or RE Production Tax Credit (credits for KWhs produced in the first 10 years) Addressing the financial barriers to RE deployment (cont d) Key California State financial incentives: Residential property tax exclusion for solar energy systems Commercial, industrial and agricultural sale and use tax exemption for RE generation and storage equipment 12/12/

34 California Solar Initiative ($2.2 billion budget from 2006 to 2017) provided rebates to various solar PV installations by customers of utilities Strong Regulatory Oversight and Enforcement CPUC & CEC established the rules for implementing Government RE mandates, and determine the RE procurement targets for each utility (Renewable Portfolio Standards (RPS)). 12/12/

35 Penalty ($50/MWh, up to $20 millions per year) will be imposed if the utility fails to meet the RPS targets. 12/12/

36 Regulatory Directives and Oversight of Utility s Resources Planning, Procurement, and System Operations to Meet RE Goals Resource (+ T & D) Planning Resource Procurement System Operations Organizational Strengthening 12/12/

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38 Key California s Resource Planning Regulations - 1 Policy Objectives Reliability Requirements Economic Criteria Resource Loading Order 12/12/

39 California s Resource Planning Regulations - 2 Policy Objectives Renewable Portfolio Standards: 30% RE by 2020, and 60% by 2030 Require RE potential assessment (by resource type and location) 12/12/

40 California s Resource Planning Regulations - 3 Reliability Requirements CPUC s Resource Adequacy (RA) Requirements Regulations System RA requirements Local RA requirements Flexible capacity RA requirements 12/12/

41 California s Resource Planning Regulations -4 System RA Requirements Net qualifying capacity (NQC) at least 115% the forecast system peak demand NQC for conventional power plants = Nameplate capacity x derating factor NQC for variable generation RE resources (solar PV and wind) = Nameplate capacity x ELCC ELCC (Effective Load Carrying Capacity) in %, determined based on how well a resource is able to meet the system reliability conditions and reduce expected reliability problems reflecting the resource availability, use limitations and performance. For wind and solar PV, ELCC could be in the range of 12/12/

42 0% to 50% depending on the location, season, time of system peak demand, & other factors. California s Resource Planning Regulations -5 Local RA Requirements For transmission congestion areas, study (performed by CAISO) to identify in-area resource needs using 1 to 10 weather years and an N-1-1 contingency scenario, resulting in distributed generation resource requirements. California s Resource Planning Regulations -6 Flexible Capacity RA Requirements 12/12/

43 Determine flexible capacity requirement sufficient to accommodate the increasing variable generation resources required by the RPS Based on CAISO study, currently consists of 3 components: Maximum 3-hour ramp up and ramp down (capacity and speed) The most severe single contingency (or 3.5% of forecast peak demand) Error factor (reflecting variable generation s forecast error and variability) California s Resource Planning Regulations - 7 Economic Criteria 12/12/

44 CPUC s Least Cost Resource Planning, Transmission System Planning (CAISO), and Distribution Resource Planning Regulations & Guidance Resource planning analysis needs to consider additional costs/savings including the avoided costs of transmission and distribution expansion, energy losses, and greenhouse gas (GHG) abatement costs CPUC directs utilities to consider the GHG abatement costs for the analysis, ranging from $60 per million metric ton (MMT) of CO 2 emission in year 2018, escalated up to $150 per 12/12/

45 MMT in year 2030 California s Resource Planning Regulations - 8 Economic Criteria (cont d) Prices of solar PV and wind power have fallen in the competitive range with fossilfueled power. IRENA expects prices of solar PV to fall further in the next few years. Turning to renewables for new power generation is not simply an environmentally conscious decision, it is now, overwhelmingly, a smart economic one, 12/12/

46 stated in IRENA annual convention in Jan by Adnan Amin, DG of the IRENA 12/12/

47 Transmission Planning Process Overview ISO PUBLIC 2018 CAISO

48 Key functions of an ISO Planning Plan grid expansions Manage new power plant interconnections 48 Page

49 The ISO relies on a comprehensive transmission planning process to: Identify the needs for reinforcement of the transmission system for a broad range of purposes including: Reliability needs Policy - driven needs Economically driven needs Coordinate with other fundamental processes including: resource planning by state agencies and utilities generator interconnection processes Act as a cornerstone of analysis to comply with federal mandatory planning standards and other technical study needs 49 Slide

50 The ISO s transmission planning coordinated with California state processes: CEC & CPUC 1 Create demand forecast & assess resource needs ISO 2 Creates transmission plan CPUC 3 Creates procurement plan 4 Final plan authorizes procurement Results feed into next biennial cycle IOUs 50 Slide

51 The agencies have defined responsibilities to produce results: Demand forecast & resource needs ( State & ISO ) Projects peak - hour & annual energy demand 20 years forward Adjusted for energy efficiency, rooftop solar and demand response Reflects RPS mandates, system adequacy, local area reliability and flexible capacity needs Transmission plan (ISO) Identifies new transmission lines upgrades to existing lines non - transmission alternatives Infrastructure needed to support the resource needs and demand forecast, and to address policy or economic needs Procurement plan ( Reg. Agency ) Authorizes Utility to procure to meet the demand forecast & resource needs Includes: renewable resources conventional resources demand response energy efficiency distributed resources 51 Page

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53 Distribution Resource Planning Regulations & Guidance - 1 A new Public Utility Code in 2013 requires IOUs to develop distribution resource plan (DRP) to modernize distribution networks (More Than Smart Grid Initiative) and identify optimal locations for the deployment of distributed energy resources (DER). Increasing deployment of DER (addition of 12,000 MW renewable DERs in ten years) plays a critical role of contributing to State s GHG reduction goals. 12/12/

54 Distribution Resource Planning Regulations & Guidance -2 DER defined by the Regulation as: Distributed renewable generation (Solar PV, wind no larger than 20 MW) third party owned and utilityowned Customer site net-metering energy resources Demand responses Energy storages (utility owned and customer owned) Energy efficiency Integrated demand-side management Electrical vehicles Rate designs (e.g., Time of Use rates) 12/12/

55 Distribution Resource Planning Regulations & Guidance - 3 A new framework of DRP aims to: Modernize the distribution system to accommodate two-way flows of energy Enable customer choice of new technologies & services that reduce GHG emissions and improve system reliability Animate opportunities for DERs to realize benefits through the provision of grid services 12/12/

56 Distribution Resource Planning Regulations & Guidance -4 CPUC issued guidance and methodologies for IOUs to develop DRPs Integration DER capacity analysis to identify the capability of the distribution system to integrate DER (Results of the analysis are to be published via online maps maintained by each Utility and available to the public). Locational benefits analysis of DER. e.g., deferred/avoided T & D capital and operation investments, reduced energy 12/12/

57 losses, avoided reliability improvements investments, etc. 12/12/

58 Example of PG&E s DER Interconnection Capacity Map

59 Example of PG&E s DER Interconnection Capacity Map with Distribution System Information

60 Distribution Resource Planning Regulations & Guidance - 5 CPUC issued guidance and methodologies for IOUs to develop DRPs (cont d) Develop a specification/investment plan to expand distribution system operator s functions to enable DERs to serve a significant portion of customer load and reliability requirements, and participate in the power market (automation of communication, control and data systems with all the smart meters installed system-wide) 12/12/

61 Utility to submit the DRP to CPUC for approval and inclusion in the tariffs. CPUC may modify DRPs to minimize overall system costs and maximize ratepayer benefit from investments in DER.

62 California s Resource Planning Regulations (cont d) Resource Loading Order (established in California Energy Action Plan based on cost-effectiveness, environmental soundness, etc. ) Decreasing electricity first through 1. Customer energy efficiency (cut 50% electricity uses in existing buildings by 2030) 2. Customer demand response Then, meeting new generation needs through: 3. Renewable energy resources (> 20 MW) 4. Distributed generation resources (< 20 MW) 5. Clean fossil-fueled generation resources 12/12/

63 (natural gas fired plants) California s Grid Energy Storage Regulations-1 CPUC s Decision in 2013 (D ) Requires investor-owned utilities to procure a total of 1,325 MW grid energy storage, to be installed no later than 2024, aiming to Enable to integrate more RE resources (especially variable generation solar PV and wind) Optimize the grid, including peak demand reduction, contribution to reliability needs, and/or Deferment of transmission and distribution upgrade investments 12/12/

64 California s Grid Energy Storage Regulations - 2 Second CPUC s Decision in 2017 (D ) Requires investor-owned utilities to propose programs and investments in their 2018 energy storage procurement and investment plans up to 500 MW of additional distributed energy storage (distribution-connected, and behindthemeter energy storage) Consumer Choice in California s Electricity Market /12/

65 Since late 1990s, California investor-owned utilities (IOU) have changed from vertically integrated power utilities into separate generation companies, and network (transmission and distribution) companies. A competitive bulk power market was created and independent system operator for the bulk power grid and power market operation established. Consumer Choice in California s Electricity Market - 2 Retail market has also been opened for competition. Electricity consumers can buy power 12/12/

66 from Direct Access (DA) providers (energy brokers), or Community Choice Aggregators (CCAs) a public agency who can directly develop and buy electricity for their customers. Electricity consumers can also be a self generator (net metering, or behind-the-meter power generation). Consumer Choice in California s Electricity Market - 3 About 40% of PGE s electric load is served by rooftop self generation, CCAs and DA providers, and this % is expected to increase in the future. 12/12/

67 With the increasing development of DERs, falling prices of renewable energy, and advancement of smart grid, electricity consumers will have even more choices in the future. 12/12/

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69 Process: California s Resource Procurement - 1 Utility prepares a long term resource procurement plan based on approved resource plan, and submits to CPUC for approval The resource procurement plan must comply with procurement Standards of Conduct issued by the Regulator 12/12/

70 California s Resource Procurement - 2 Main Procurement Methods: Feed-in tariff for small generators (< 2 or 3 MW) Fixed purchase price; standard, nonnegotiable power purchase agreement (PPA) FIT implemented in phase with market adjustment, e.g., 50 MW in phase 1 with a fixed FIT 12/12/

71 FIT adjusted in phase 2 depending on the market responses to the phase 1 FIT California s Resource Procurement - 3 Main Procurement Methods (cont d): Competitive solicitations (request for offer, auction, etc.) bid evaluation based on leastcost best-fit criteria (market value adjusted with other factors such as location, curtailment flexibility, project viability, etc.), involving independent evaluators. Purchase price based on the bid price, non-price terms and conditions of the PPA not negotiable. 12/12/

72 Bidding also implemented in phase and the ceiling prices may be market adjusted to the responses to the previous bidding. California s Resource Procurement - 4 Products To Be Procured: Renewable energy products - may be one of the three categories: (i) baseload, (ii) asavailable peaking, and (iii) as-available nonpeaking. Capacity products 12/12/

73 Ancillary services (regulation, load following (balancing service), spinning, nonspinning, black-start capability) California s Resource Procurement - 5 Interconnection Requirements for Resource Procurement: To be eligible for bidding, the project must complete the interconnection system impact study (at least phase 1 study), or pass the fast-track interconnection screening. 12/12/

74 Prior to PPA signing, an interconnection agreement with the utility or CAISO must be signed, and deposit for any network upgrades required (if any) must be made. California s Resource Procurement - 6 Interconnection Regulations: Regulators issued standard: Larger generator interconnection procedures, and interconnection agreements 12/12/

75 Small generator interconnection procedures, and interconnection agreements Interconnection procedures and processes are transparent and streamlined. Regulators also directed each utility to provide all the interconnection information, and forms on its website, and allow interconnection applications to be done online. California s Resource Procurement /12/

76 Interconnection Regulations: Regulators also directed each utility to Provide all the interconnection information, and forms on its website, and allow interconnection applications to be done on-line Develop maps showing RE interconnection capacity on utility s transmission and distribution lines, and substations Responsibility of Generator Interconnection Studies 12/12/

77 Utility (or CAISO), but not the developer, conducts the required generator interconnection studies Utility may perform the studies in house or retain consultant(s) to carry out the studies Developer is responsible for the cost of interconnection studies, and will reimburse the cost to the utility according to the published interconnection procedures. Required Studies for Generator Interconnection 12/12/

78 Generator proposed to be interconnected to power grid (at transmission and distribution networks) requiring the following studies: Interconnection studies Capacity Derivability Assessment (for generators proposed to be interconnected to transmission grid) Operational Impact study (especially for wind and solar PV power plants) Generator Interconnection Studies 12/12/

79 Generator interconnection system studies are required for all generators proposed to be interconnected to power grid (at transmission and distribution networks) Interconnection studies may include: Interconnection Feasibility Study, Interconnection System Impact Study, and Interconnection Facilities Study Interconnection studies identify any potential adverse impacts on power systems, develop mitigating measures for identified adverse impacts, and develop cost estimates of the mitigating measures These studies will ensure not only the power grid will be operated reliably and safely but also the proposed generator can operate and produce power as planned. Capacity Deliverability Assessment (CDA) 12/12/

80 Based on the methodology to assess whether a capacity resource within a given area can export to other parts of the Control Area experiencing a resource shortage due to forced generation outage. Will determine the generator s ability to deliver its energy to CAISO power grid under peak load conditions. The Net Qualifying Capacity determined in the CDA will be used to meet the Resource Adequacy Requirements. 12/12/

81 Operational Impact Study (OIS) - 1 With increasing penetration of solar PV and wind power, OIS is needed to assess the grid operational impact from generation variability and forecast error. OIS to analyze: Regulation (second to second, minute to minute) requirements for ramp capacity and rates, Load following (5- minute dispatches, hourly ahead dispatches, day-ahead dispatches, etc.) requirements (ramp capacity, ramping rates, 12/12/

82 ramp direction changes, ramp frequency and durations), Operational Impact Study (OIS) - 2 OIS to analyze (cont d): Potential overgeneration during certain periods such as in afternoon when solar PV output may exceed the local demand, Potential impacts on generation fleet such as more frequent stops and cycling, operating at a lower minimum operating levels, and reduction in power generation. 12/12/

83 Typical Interconnection Technical and Operational requirements for Large Variable Generation Plants Reactive Power and Primary Frequency Response Low- and high-voltage ride through High- and low-frequency ride through Active power control Ramping rates SCADA and communication requirements, Automatic Dispatch System Meteorological data requirements and/or forecasting requirements 12/12/

84 California ISO Operations Overview ISO PUBLIC 2018 CAISO

85 Key functions of an ISO for Operations Uses advanced technology to balance supply and demand every 4 seconds Operate markets for wholesale electricity and reserves Page 85

86 Majority of the ISO s electricity demand is met through utility - owned or bilaterally procured resources Slide 80

87 The duck turns 10 years old: Actual results are approximately four years ahead of original estimates Typical Spring Day Actual 3 - hour ramp of 14,777 MW on 3/4/18 Net load of 7,149 MW on 2 /18/ 18 Page 87

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89 Trending upward in renewables curtailment Page 89

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91 The ISO has two markets Day - Ahead Energy Market Enables: parties to schedule contracted supply/demand suppliers to offload excess supply in the form of energy or ancillary services LSEs the ability to secure pricing for load due to: changes in load forecasts or incremental changes in demand Real - Time Energy Market Hour - ahead scheduling for intertie resources 15 - min market supports renewable integration 5 - min market intended to meet instantaneous demand Includes: ISO Balancing Authority Area EIM Balancing Authority Areas 91 Slide

92 Nodal pricing A generator is paid the nodal price Imports and exports are paid or pay the price at the scheduling point Energy Congestion Losses Locational Marginal Price Load pays the weighted average price of all load nodes in the service territory 86

93 Post market processes Metering Accurate metering of electricity generated or consumed provides key data inputs for accurate settlement calculations. Direct measurement of a generator or load participant through telemetry allows the ISO to manage and monitor power generation in real - time. Settlements The calculation, billing and invoicing of charges and payments for market and transmission - related activities between market participants & the ISO 93

94 Benefits of the ISO Market Centralized economic dispatch optimizes use of all resources reduces cost of serving demand. Resolve transmission constraints economically Transparency on constraints and costs System is re - dispatched every five minutes to meet current system conditions - greatly helps with renewable integration Market benefits from operating a larger control area: Reduced reserve requirements Geographical diversity improves market for renewables and reduces integration costs Capacity savings due to diversity in timing of daily and annual peak loads Page 94

95 A suite of solutions are necessary Page 95

96 Our markets are supporting the growth of distributed generation When supported by markets, presents an opportunity for California technology companies DER can offer benefits/services to customers, distribution system, and transmission grid: Energy storage can help mitigate oversupply Demand response can reduce the need for conventional resources Micro grids allows participation in ancillary services markets Our markets support: Charging and discharging of storage Distributed generation aggregations Distribution - side heterogeneous aggregations of demand and other assets Page 96

97 Suggested Next Steps for MEMR s Consideration Issue guidelines and criteria for developing 2019 RUPTL to achieve the national RE goal of 23% RE by 2025 Revise RE resource procurement regulations When the RE penetration increases in the future, revise tariff regulation and rate setting mechanisms to alleviate potential financial impacts on PLN Issue standard interconnection procedures and guidelines for large generators and small generators Update Grid Codes and Distribution Code to accommodate interconnection of variable generation resources Direct PLN to develop implementation details for Rooftop Solar PV Regulation application form, application review criteria and methodology, interconnection requirements, net metering agreement template, etc. 97

98 In a longer term, establish new regulations to guide distribution system planning to optimize deployment of DERs, maximize benefits of smart power grids, enable consumer choice of new technologies and services, and reduce GHG emissions. 12/12/

99 Thank You 12/12/