Regulatory Report LGSEC Quarterly Meeting

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1 Regulatory Report LGSEC Quarterly Meeting Jody London July 16,

2 Today s Report CPUC CEC Governor s Goals Legislation 2

3 Energy Efficiency (R ) Waiting on Proposed Decision on Rolling Portfolio was supposed to be released July 13 CPUC starting to gather information about issues associated with buildings below code, how baseline is determined Advocacy on this point from utilities, others is increasing Work on evaluations of partnerships, RENs, and CCAs continues. LGSEC Policy Committee: Energy Efficiency 3

4 Residential Rate Design Decision adopts new plan: Reduce the existing four-tier rate structure to two tiers, with a 25-percent difference in cost between the two. Adds a super-user electric surcharge for people who use more than 400 percent of average baseline consumption per month; will go into effect in 2017 Emphasis on time-of-use rates: Utilities to develop time-of-use pilots By 2018, utilities must propose default time-of-use rates for all customers Instead of fixed monthly charges, authorizes a minimum bill approach 4

5 Distribution Resources Plans Utilities submitted distribution resources plans on 7/1/2015 (A , -003, -006) as directed in AB 327 and instructions from CPUC Plans are supposed to identify how utilities will: 1. Modernize the electric distribution system to accommodate two-way flows of energy and energy services throughout the utilities networks; 2. Enable customer choice of new technologies and services that reduce emissions and improve reliability in a cost efficient manner; and 3. Animate opportunities for distributed energy resources to realize benefits through the provision of grid services. Each plan is hundreds of pages Analysis appears to be based on engineering estimates and forecasts What should role of local governments be in this process? Comments due August 3 LGSEC Policy Committee: Distributed Generation 5

6 Energy Water Nexus (R ) CPUC still working to develop calculators to precisely assign energy and water savings Issues about who gets credit for savings. Some parties are interested in quicker action so pilot programs can operate in 2016 LGSEC Policy Committee: Energy Efficiency 6

7 Integrated Demand Side Management (R ) CPUC held workshops in March Actually fun and innovative! LGSEC submitted comments on goals in May Focus on developing common goals, definitions, and operating norms. Keep the definition, goals, and breadth of this proceeding clear and simple, so policies adopted here can be easily carried in to companion proceedings. LGSEC Policy Committee: Distributed Generation 7

8 Net Energy Metering (R ) CPUC still developing public tool for evaluating tariff options. Adoption of new residential rate structure was a key input Tool continues to be very complicated 18 scenarios, each one close to 50 MB, with about 12 worksheets on each, and hundreds of inputs The complexity of the tool may be something to raise with CPUC Parties proposals due August 3 Comments September 3 Reply comments September 15 LGSEC Policy Committee: Distributed Generation 8

9 Energy Storage (R ) Considers recommendations included in the California Energy Storage Roadmap (CAISO, CEC, CPUC). CPUC to develop storage targets Identifies guiding principles: 1. Optimization of the grid, including peak reduction, contribution to reliability needs, or deferment of transmission and distribution upgrade investments; 2. Integration of renewable energy; and 3. Reduction of greenhouse gas emissions to 80 percent below 1900 levels by 2050, per California goals. LGSEC Policy Committee: Distributed Generation 9

10 Energy Options for Disadvantaged Communities (R ) Assembly Bill 2667 (2014), tells CPUC to: identify disadvantaged communities in the San Joaquin Valley evaluate the economic feasibility of options to improve affordable access to energy. Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare. Comments were submitted in May 10

11 Other CPUC-Related $1.9 billion fine for PG&E related to San Bruno pipeline explosion PG&E moving ahead with relicensing for Diablo Canyon nuclear plant Concerns rising over communications between former CPUC President Peevey and SCE re San Onofre Nuclear Generating Station 11

12 California Energy Commission Existing Building Energy Efficiency Action Plan Long-awaited implementation document for AB 758 Goals focus on government leadership, data, innovation performance, all Californians participating, and accessible, affordable solutions Implemented by building sector, with priority activities for each sector Big emphasis on importance of, and access to,data Local Government Challenge is supposed to increase participation by local governments LGSEC Policy Committee: Energy Efficiency 12

13 California Energy Commission Other Activity Continuing to modify, update code Pursuing technology solutions for water-energy issues Looking at how to reduce emissions from transportation sector Power plant siting, related activities 13

14 Governor s Goals 1. Increase renewables on the grid to 50% Floor, not cap Reorganize regulation around an integrated resource plan? Role of distributed generation will rooftop solar count toward the goal? 2. Increase building efficiency 3. Reduce petroleum usage 14

15 Legislation California Climate Leadership package - implements Governor s goals CPUC Reform, particularly around communications with decision makers Increase in ability of customers to enter into direct access contracts Create market transformation administrator for energy efficiency 15

16 Discussion Topics Distribution Resources Plans What role should local governments play? Increasing building efficiency Specific strategies, solutions What role can, should local governments play? 16

17 Key Dates (partial list) Date Activity Location July 20 August 3 Comments to CEC on solutions for increasing building efficiency Comments on Distribution Resources Plans?? Comments on Proposed Decision on Energy Efficiency Rolling Portfolio 17