Regulatory Update for July 9, 2020

The CPUC is holding its meetings remotely. See the COVID19 information page on the CPUC’s website for more COVID19-related info.

Remote Meeting Notice from CPUC:

Pursuant to Executive Order N-29-20, Commissioners may participate in CPUC meetings remotely. The public may observe, provide public comments during the public comment period, and otherwise participate remotely pursuant to the Bagley-Keene Open Meeting Act as follows: 1. For each agenda item, a summary of the proposed action is included on the agenda as well as a link to the related electronic document; the Commission’s decision may, however differ from that proposed. 2. Public Comments are taken up at the beginning of the meeting (10am).

• To listen or make comments not to exceed three minutes by phone, dial 1-800-857-1917, passcode: 9899501
• Alternatively, you mail email brief written comments (which do not exceed three minutes when read aloud) to 07162020VotingMeetingComments@cpuc.ca.gov and our Public Advisor may read your comments out loud to the meeting if time permits. Written comments must be received prior to 10am to be read aloud. Comments that are not able to be read aloud, or are received after the deadline, will be circulated to the Commissioners. Individuals wishing to observe the meeting can do so by visiting http://www.adminmonitor.com/ca/cpuc/

Brief Notes:

• The next CPUC voting meeting takes place on July 16 @ 10am. See AGENDA. For the livestream, click HERE.

Updates on proceedings we are tracking

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 the following summaries 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.

1. SB 1339 Microgrid Rulemaking 19-09-009
2. Self Generation Incentive Program (SGIP) 12-11-005
3. Power Charge Indifference Adjustment (PCIA)  17-06-026
4. Resource Adequacy (RA) 17-09-020
5. Integrated Resource Plans (IRP) 16-02-007
6. Renewables Portfolio Standard (RPS) 18-07-003
7. Integrated Distributed Energy Resources 4-10-003
8. 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. Microgrid Rulemaking 19-09-009 pursuant to SB 1339 (Stern, 2018)

Recent Developments:

• July 3 Scoping Ruling – Assigned Commissioner’s Amended Scoping Memo and Ruling for Track 2.
• June 11 Decision adopting Short-Term (Track 1) Actions to Accelerate Microgrid Deployment and Related Resiliency Solutions. The Climate Center is a Party to this proceeding.

The Commission did not reject use of diesel fuel as a near-term back up generation choice. However, with this Decision in place it should become easier for local governments to access the data they need to engage in Community Energy Resilience planning, part of The Climate Center’s Climate-Safe California campaign.

Key Documents:

• The Climate Center and Vote Solar Opening Comments filed on May 19 and Reply Comments, filed on May 26.
• April 29 – Proposed Decision Adopting Short-Term Actions to Accelerate Microgrid Deployment and Related Resiliency Solutions. A special note here: This Proposed CPUC Decision reflects a formal embrace by the CPUC of several key ACE principles that The Climate Center and partner organizations have been advocating for regarding the pivotal role of local governments.
• March 19 – The Climate Center participated in an Ex Parte communication with CPUC staff
• January 30 – Climate Center Opening Comments in the Track 1 Proceeding
• December 20, 2019: Scoping Ruling.
• October 21, 2019: The Climate Center Opening Comments.
• September 19, 2019: Order Instituting Rulemaking.

Next Steps: Track 2 for longer term measures begins soon.

2. Self-Generation Incentive Program (SGIP)

Recent Developments:

• May 7, 2020:  The Energy Division held part two of the workshop webinar on how to include heat pump water heaters in SGIP.  The final presentations are available here.
• April 1 – The application window for the new SGIP incentives levels opened, following up on the CPUC’s Decision in January (see below) authorizing adding funds to SGIP’s energy storage budgets. Of particular note, the newly-created Equity Resiliency Budget ($513M) provides enhanced SGIP incentives for on-site residential and non-residential storage systems for low-income, vulnerable customers in high-risk fire threat districts (HFTD) or those who have been affected by PSPS events. The new SGIP Decision also created a $0.15/Wh resiliency adder for non-residential customers with critical resilience needs such as police stations, fire stations, hospitals, etc. Additional information is available in the new SGIP Handbook.

Next Steps: The current proceeding is now closed. A new proceeding is expected to be opened later this year.

Key Documents:

• SGIP Information Page
• January 3, 2020 – Climate Center Comments

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

Recent Developments:

• June 30, 2020 – Decision Adopting a Framework and Evaluation Criteria for the PCIA Prepayment Agreements. Opening comments, which shall not exceed 15 pages, are due July 20, 2020. Reply comments, which shall not exceed 5 pages, are due 5 days after the last day for filing comments.
• June 22 – Protect Our Communities Foundation in San Diego is challenging the PCIA in state appellate court in San Diego. We will continue to provide updates on this case as it proceeds.
• May 22, 2020 – Proposed Decision Denying Petition for Modification of Decision 18-07-009. Opening Comments, which shall not exceed 15 pages, are due no later than June 11, 2020. Reply Comments, which shall not exceed 5 pages, are due no later than 5 days after the last day for filing Opening Comments.

Next Steps:

• Q2 2020 – Resolution of Working Group 3 issues

Key Documents:

• March 26, 2020: Final Decision 20-03-019 on Load Departure and PCIA line on bills.
• Oct 11, 2018: Alternate Decision modifying the PCIA
• June 29, 2017: Order Instituting Rulemaking

4. Resource Adequacy (RA) 17-09-020 and 19-11-009

Recent Developments:

• July 7, 2020 – Assigned Commissioner’s Amended Track 3.A and 3.B Scoping Memo and Ruling.
• June 11 – Decision empowering PG&E and SCE to have procurement authority over RA for CCAs.  This is a very bad decision that impinges on the statutory right of CCAs to procure electricity for their customers. Designating PG&E and SCE as central procurement entities for RA creates a situation where for-profit IOUs that are directly in competition with not-for-profit CCAs for customers, get to procure electricity for the CCA and charge them for costs. This is not an acceptable outcome and The Climate Center along with others will be evaluating strategies for overturning the Decision.
• May 22, 2020 – Proposed Decision issued adopting local capacity obligations for 2021-2023, adopting flexible capacity for 2021, and refining the RA program.

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

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.

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

Recent Developments:

• May 26, 2020 – Proposed Decision Granting Intervenor Compensation to Friends of the Earth for Substantial Contribution to Decision 19-04-040 and Decision 18-02-018. Opening Comments, which shall not exceed 15 pages, are due no later than June 15, 2020. Reply Comments, which shall not exceed 5 pages, are due 5 days after the last day for filing Opening Comments.
• April 6, 2020 – Decision 20-03-26 adopts an optimal portfolio, known as the Reference System Portfolio (RSP), to be used by all load-serving entities (LSEs) required to file individual integrated resource plans (IRPs) in 2020.
• January 3, 2020 – Administrative Law Judge’s Final Baseline Ruling finalizing a baseline for purposes of procurement required by Decision 19-11-016

Next Steps:

Key Documents:

• Order Instituting Rulemaking
• Decision 18-02-018 setting IRP requirements for LSEs
• Amended Scoping Memo
• Final Decision adopting the Reference System Plan as the Preferred System Plan.

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).

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

Recent Developments:

• June 26, 2020 – Assigned Commissioner’s and Assigned Administrative Law Judge’s Ruling seeking comment on proposed modification to the Renewable Market Adjusting Tariff program. Comments due by July 21, 2020.
• May 13 – E-mail Ruling Modifying Schedule of Review for 2020 RPS Procurement Plans Issued in the May 6, 2020 RPS Plan Ruling
• February 27, 2020 – Ruling on confidentiality rules for the RPS program.

Key Documents

• CPUC RPS Info Page

Background: The RPS proceeding implements Senate Bills 350 (2015) and 100 (2018) that requires all load serving entities to increase their procurement of renewable power to 33% 2020, 44% by 2024, 52% by 2027, and 60% by 2030. The current proceeding is the successor to R.15-02-020.

7. Integrated Distributed Energy Resources 4-10-003

Recent developments: None at this time

Key Documents:

• March 4-5, 2019 Workshop: ALJ Ruling directing responses to questions from Workshop
• CPUC IDER Information Page

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.

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

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

Key Documents:

• CPUC NEM Info Page
• CPUC NEM Rulemaking page

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