Community Choice Energy Regulatory Issues Update

Several Proceedings are underway that have a bearing on Community Choice Energy, here are some highlights for the month of April.

Red Flag: Integrated Resource Planning (IRP) (Proceeding # R.16-02-007)

On March 18 a Proposed Decision (PD) adopting a Preferred System Plan (PSP) and proposing a Statewide Renewables Procurement Track was issued. This PD includes a couple of pages of questions to be addressed that make it clear that the Commission is considering impinging on CCA statutory procurement authority. The new PSP rejects the adoption of combined IRPs from the state’s utilities and power providers. The new proposal aims to create a statewide “procurement track” for generation capacity, significantly changing the IRP protocols that currently guide the state’s power providers. If accepted by the California Public Utilities Commission (CPUC), the proposal will empower state regulators to establish the design of this new procurement track. Other notable developments in the PD include the finding that the load-serving entities’ IRP plans in aggregate are not sufficient to meet California’s GHG emission reduction goals. The PD does not call out which LSEs are responsible for this shortcoming. Unfortunately, this finding strengthens the case for centralization of procurement. Also, several CCA IRPs were not certified, largely because of insufficient quantification of emissions and the lack of long term procurement commitments, which the PD refers to as “aspirational.” An “All Parties” meeting is taking place today, April 4, and opening comments are due April 7 on the Proposed Decision adopting the PSP. A ruling on this PD could come as early as the April 25 voting meeting.

 

Power Charge Indifference Adjustment (PCIA) (Proceeding # R.17-06-026)

Phase 2 of the PCIA proceeding is underway. Three working groups have been established to address various aspects going forward. The most important to Community Choice is Working Group 3 where opportunities for cost reduction will be addressed.

Working Groups and co-chairs in Phase 2:

  • Group 1. Benchmark true-up and related issues – PG&E, CalCCA; This group has been meeting and released a Progress Report on March 20, 2019.
  • Group 2. Prepayment – SDG&E, AreM/DACC – First report expected in late May.
  • Group 3. Portfolio Optimization & Cost Reduction – SCE, CalCCA – First report expected in late June.

 

PG&E Safety Culture InvestigationI. 15-08-019

The Center for Climate Protection is a Party in this investigation. The investigation originated after the San Bruno incident, and has been reinvigorated due to the recent wildfires. New developments include:

  • Two Forums have been scheduled for April 15 and April 26. Info HERE.
  • An updated “North Star Report” originally published in the context of San Bruno, was released on March 29. The report includes recommendations such as:
    • Scheduling forums on governance and management
    • Introducing performance-based ratemaking
    • Conducting Safety Audits
    • Eliminating penalties for self-reporting safety incidents
    • Providing greater ties between safety performance and executive compensation
    • Enhancing direct communications between PG&E and CPUC
    • Monitoring by an independent party

Much is also going on regarding the wildfire liability and PG&E bankruptcy. For more on Community Choice-related regulatory issues, including the full list of proceedings we are monitoring, visit: https://cleanpowerexchange.org/resources/regulatory/

 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *