CPX Regulatory Update for February 20, 2020

These are updates for February 20, 2020. Next update will be on March 6.

Below is a numbered list of the regulatory proceedings we are tracking, followed by a brief summary of background information, new or recent developments, and Climate Center filings, if any, for each of the proceedings. Note that these are intended as very brief highlights of selected key actions and activities. For details on any of these proceedings, we suggest logging in to the relevant proceeding page on the CPUC’s website. An expedient way to do that is to click on the proceeding number below or visit CPUC’s Documents Page. Please contact us at info[at]cleanpowerexhange.org to report any errors or broken links.

Brief Notes:
  • The next CPUC voting meeting will take place on February 27 at CPUC headquarters in San Francisco. See AGENDA (Click on “current agenda”). For the livestream, click HERE.
  • We continue to monitor wildfire and PG&E bankruptcy-related proceedings but no longer report on those items on a regular basis. We will report occasionally on any significant developments.

Breaking News

  • On February 18, the CPUC issued a news release on reorganization of PG&E as they emerge from bankruptcy.
  • The news release included President Batjer’s Ruling regarding PG&E reorganization
Regulatory Proceedings we are monitoring:
  1. SB 1339 Microgrid Rulemaking R.19-09-009
  2. PG&E Safety Culture Investigation 15-08-019
  3. Self Generation Incentive Program (SGIP) R.12-11-005
  4. Power Charge Indifference Adjustment (PCIA)  17-06-026
  5. Resource Adequacy (RA) 17-09-020
  6. Integrated Resource Plans (IRP) 16-02-007
  7. Distribution Resource Plans (DRP) 14-08-013 
  8. Renewables Portfolio Standard (RPS) 18-07-003
  9. Integrated Distributed Energy Resources 4-10-003
  10. SB 790 IOU Code of Conduct 12-02-009
  11. Direct Access 19-03-009
  12. NEM Successor Tariff 14-07-002
Closed proceedings that matter:
  • CCA Rulemaking 03-10-003 – This was the rulemaking that defined all the rules pursuant to AB 117, the original California CCA law
  • CCA Bond and Re-Entry Fees 18-05-022 – This is the proceeding that re-set the bond required to be posted by CCAs in the event that the CCA fails and customers are returned to the incumbent utility

Summaries:

1. SB 1339 Microgrid Rulemaking R.19-09-009

The Climate Center is a Party to this proceeding.

Key Documents:

Recent Developments:

  • January 30 – Climate Center comments on R.19-09-009 Microgrid Track 1 Proceeding
  • January 21 – CPUC staff and IOU Resiliency proposals filed; ALJ Ruling seeking comments on Track 1. (note: many parties, including The Climate Center, unsuccessfully submitted a request for an extension of the comment period)

Next Steps: Summer 2020 – Track 1 concludes.

2. PG&E Safety Culture Investigation 15-08-019

The Climate Center is a Party to this proceeding.

Key Documents:

  • June 18 CPUC Order seeking proposals to improve PG&E safety culture
  • July 19 Climate Center Comments

Recent Developments:

  • January 23, 2020 – Motion of the Ad Hoc Committee of Senior Unsecured Note-holders of PG&E to Withdraw
  • December 13 – Letter from several LSEs, including a CCA, to CPUC Commissioners expressing interest in taking ownership of PG&E grid assets

Next Steps:

  • May 8, 2020 is the deadline for the conclusion of this investigation; it is not clear what steps may be taken prior to May 8
3. Self Generation Incentive Program (SGIP) R.12-11-005

The Climate Center’s filing for Party status was filed on January 3rd, 2020 and is pending.

Key Documents:

Recent Developments:

  • January 27, 2020 – Decision in Self-Generation Incentive Program – revisions pursuant to SB 700 and other program changes
  • December 19, 2019 – Proposed Decision.  This Decision grants the joint Petition for Modification filed by Southern California Gas Company, Pacific Gas and Electric Company, Southern California Edison Company, and the Center for Sustainable Energy and modifies Decision (D.) 11-09-015 and D.16-06-055 to remove the Self-Generation Incentive Program application fee for residential projects.

Next Steps: April 1, 2020 – SGIP modifications effective.

4. Power Charge Indifference Adjustment (PCIA)  17-06-026

Key Documents:

Recent Developments:

  • January 22, ALJ Ruling to modify the proceeding schedule for Working Group Three
  • December 11 Working Group 3 Presentation
  • December 9, 2019: Working Group 2 Final Report (Prepayment Issues)

Next Steps:

  • Q1 2020 – Proposed Decision on Working Group 2 issues
  • Q2 2020 – Resolution of Working Group 3 issues
5. Resource Adequacy (RA) 17-09-020 and R.19-11-009

Key Documents:

  • Track 1: Revisions to RA import rules
  • Track 2: 2021 System and Flex RA. 2021-2023 Local RA
  • Track 3: Structural changes to RA program
  • Track 4: 2022 System and Flex RA. 2022-2024 Local RA
  • October 2017 – Order Instituting Rulemaking

Recent Developments:

  • January 22, 2020 Commissioner’s Scoping Ruling
  • January 14, 2020 – Assigned Commissioner’s Ruling on Energy Division’s Resource Adequacy State of the Market Report [Energy Division’s second Resource Adequacy State of the Market report is attached to this ruling as Appendix A]
  • December 23. 2019 – Order granting CalCCA’s request for a stay of D.19-10-021 (Decision Affirming Resource Adequacy Import Rules)
  • November 17, 2019 – New RA Proceeding for 2020/2021 R.19-11-009

Background: The RA program is designed to provide adequate electric resources to CAISO to ensure safe and reliable operation of the grid, and to provide appropriate incentives for the siting and construction of new resources needed for reliability. This proceeding has been divided into three Tracks due to the complexity of the issues involved.

6. Integrated Resource Plans (IRP) 16-02-007

Key Documents:

Recent Developments:

  • January 3, 2020 – Administrative Law Judge’s Final Baseline Ruling finalizing a baseline for purposes of procurement required by Decision 19-11-016

Background: The IRP proceeding is an umbrella planning proceeding to consider all of the CPUC’s electric procurement policies and programs. The goal is to provide a safe, reliable, and cost-effective electricity supply while complying with SB 350 mandates for LSE energy resource portfolios. LSEs will be required to file individual IRPs, which will then be considered in developing a Preferred System Plan (PSP).

7. Distribution Resource Plans (DRP) 14-08-013 

Key Documents: See Proceeding

Recent Developments:

  • November 21, 2019: Notice of Reassignment of Commissioner [R.14-08-013, A.15-07-002, A.15-07-003 and A.15-07-006] are being reassigned to President Marybel Batjer
  • November 8, 2019: Administrative Law Judge’s Ruling requesting comments on possible improvements to the 2020 Distribution Investment Deferred Framework process. Opening comments shall be filed and served by January 17, 2020. Reply comments shall be filed and served by January 31, 2020.

Background: This proceeding consolidates numerous proceedings and seeks to establish policies, procedures, and rules for investor-owned electric utilities (IOUs) to develop Distribution Resources Plan (DRP) Proposals, and to evaluate the IOUs’ infrastructure and planning to incorporating distributed energy resources into their systems. There are 3 parallel and concurrent Tracks in this proceeding. Track 1 concerns methodological issues. Track 2 concerns demonstration and pilot projects. Track 3 concerns policy issues. Track 3 also has 3 Sub-tracks. Although Decisions have been issued on all Tracks, there remain residual issues as well as newly identified issues within the scope of the proceeding.

8. Renewables Portfolio Standard (RPS) 18-07-003

Recent Developments:

  • December 19, 2019: Final Decision on 2019 RPS Plans. (and Proposed Decision on 2019 RPS Plans)
    • CCAs shall plan for the long-term procurement compliance period 2021-2024
    • CCAs shall furnish the CPUC copies of any contracts they enter into no later than 30 days following the date they intend to serve load, and in no event later than August 1, 2020
    • By March 31, 2020, Energy Division shall initiate stakeholder workshops before filing of the 2020 draft RPS Plans
    • RPS and IRP filings shall be consolidated
    • All LSEs shall analyze the impact of economic curtailment, over-generation or oversupply events on their individual resource portfolios in their future RPS Procurement Plans
    • PG&E’s Renewable Energy Credit sales framework is approved with modifications. The pricing that PG&E seeks is rejected; PG&E may use its previously approved price floor methodology or the methodology proposed by the Public Advocates Office
    • For 2020, CCAs and Electric Service Providers (ESPs) shall include more granular information regarding planning in the next annual procurement plan cycle, beyond a general statement that they will comply with the Renewables Portfolio Standard requirements and upcoming long-term procurement requirements
9. Integrated Distributed Energy Resources 4-10-003

No new developments.

Key Documents:

Background: Since 2007, the Commission has sought to integrate demand-side energy solutions and technologies through utility program offerings. Decision (D.07-10-032) directs that utilities “integrate customer demand-side programs, such as energy efficiency, self-generation, advanced metering, and demand response, in a coherent and efficient manner.” The Commission’s IDER Action Plan published in 2016 remains in draft form.

10. SB 790 IOU Code of Conduct 12-02-009

Key Documents:

Recent Updates. No recent updates.

  • January 30 2018 – This proceeding re-emerged as a concern when the IOUs filed a Joint Petition for Modification to the rules imposed on them regarding lobbying against CCAs.

Background: Original CCA law, AB 117 stipulates that IOUs must “cooperate fully” with local governments pursuing Community Choice. In the mid-to-late 2000s, San Francisco, Marin, and the San Joaquin Valley experienced egregious disinformation campaigns waged by the incumbent utility for these jurisdictions against their efforts. The obstruction was documented in a series of California Senate Select Committee on Renewable Energy hearings in 2010 chaired by Senator Mark Leno. The result of the hearings was SB 790, which created an IOU Code of Conduct that prohibits IOUs from marketing against CCAs unless they establish a separate marketing division that does not use ratepayer funds, among other provisions.

11. Direct Access 19-03-009

Key Documents:

  • March 14, 2019 CPUC issued an Order Instituting Rulemaking (OIR) for proceeding R. 19-03-009 regarding implementation of Senate Bill 237 (SB 237 – Hertzberg) concerning expansion of the Direct Access (DA) program.

Recent Updates. No recent updates.

Background: DA is available to non-residential customers. Background: DA access was restricted after the energy crisis by SB 1X. DA access is currently capped and accessible via a lottery system, with 7,603 GWh of load on the waitlist. SB 237 increases the maximum total annual kilowatt-hours allowed under the DA program by a total of 4,000 GWh apportioned among the three IOU service territories. That increase must be implemented by June 1, 2019. SB 237 also gives CPUC until June 1, 2020 to provide the legislature with guidance on expanding DA access to all interested non-residential customers. The proceeding will have two phases to address the two mandates.

12. Net Energy Metering (NEM) Successor Tariff 14-07-002

Key Documents:

Recent Updates: No recent updates. The NEM successor tariff had been expected to be initiated in 2019. It wasn’t.

Background: Pursuant to direction in the NEM Successor Tariff Decision, the Commission was supposed to have reviewed the NEM successor tariff some time in 2019, when the proceedings related to distributed energy resources were to have been completed and after default TOU rates were implemented. Energy Division staff had planned to explore compensation structures for customer-sited distributed generation other than NEM, as well as consider an export compensation rate that takes into account locational and time-differentiated values. On April 26, 2019, the Energy Division distributed a Revised Solar Information Packet to service list R.14-07-002 and R.12-11-005.  The Energy Division asked for written comments about the content of the Revised Solar Information Packet and implementation approach.  The deadlines for submitting written comments has passed. If you have questions contact Kerry Fleisher at the CPUC Energy Division: Kerry.Fleisher@cpuc.ca.gov

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