2014 PV Distribution System Modeling Workshop: Interconnection Standards in California: A Regulatory Approach to a Fast-Changing Grid: Rachel Peterson, CPUC

1. California Public Utilities Commission
Interconnection Standards in California:
A Regulatory Approach to a Fast-Changing Grid
EPRI –Sandia NL PV Distribution System Modeling Workshop
May 6, 2014
Rachel Peterson, Advisor to Commissioner Michel P. Florio
Rachel.Peterson@cpuc.ca.gov
(415) 703-2872

2. 1. Interconnection Supports Distributed
Energy Resources
2. Considering A Guided Approach
3. Decisions Confronting the CPUC
2

3. CPUC Mandate
• Ensure safe and reliable electric service
by investor-owned utilities at just and
reasonable rates
• Implement laws as directed by Legislature
• Tools:
– Procurement and program design
– Rate design and cost allocation
– Tariffed services
– Infrastructure revenue requirement3

4. 1. Interconnection Supports Distributed
Energy Resources
4

5. Distributed Resources in CA
Resource Size MW Goal Installed/
Approved to Date
California Solar
Initiative
<1 MW, sized to
load
1,940 MW 2,037 MW in
>205,000
installations
(Apr 2014)
Self-Generation
Incentive Program
None, sized to
customer load
Budget-driven -
$77M for 2013
452 MW
Renewable Feed-In
Tariff
<=3 MW ~600 MW ~350 MW
Biofuel Feed-In Tariff <=3 MW 250 MW First RFO in 2014
Energy Storage Behind the meter,
distribution,
transmission
1,325 MW First RFO in 2014
Qualifying Facilities <=20 MW 3 GW and 4.8 MMT
GHG decrease by
2020
1.7 GW and 1.77
MMT GHG decrease
5

6. Distributed Resources in CA
Resource Goal Installed/
Approved to Date
Energy Efficiency 3,500 MW by 2020 ~1,069 MW (Dec 2011)
Demand Response 5% of system peak by
2020 (2500 MW)
~2%/1,069 MW
Electric Vehicles 1.5 M EVs by 2020 80,000 sold in CA
(Mar 2014)
Zero Net Energy Buildings New residential
construction 100% ZNE by
2020
6

7. 2. Considering A Guided Approach
(or What We Know Today)
7

8. Location affects cost

9. 9
Technology advances can improve programs

10. 10
Transmission-constrained areas offer promise for
distributed resource deployment
Source: CAISO 2012 Local Capacity Technical Area Study Manual

11. 11
2012
CPUC Rule 21 reform
• Procedural – handle
growing queues
• Technical – allow
increased hosting
capacity
• Aided “strategically
located” first cut
2013
• Small Gen Interconnection
Procedure reform - FERC
• Energy storage
procurement targets - CA
• Biofuel feed-in tariff
• Long-term procurement
portfolio decision #1 (SCE)
• Preferred resources pilot
launch (SCE)
2014
• Long-term
procurement portfolio
decision #2 (SCE,
SDG&E)
• Smart inverter
standards launch
• Net Energy Metering
eligibility for customer
PV + storage
• Distribution system
planning
CPUC Responses to What We Know

12. 3. Questions Confronting the CPUC
(or What We Need to Know Soon)
12

13. 1) Energy storage
– Interconnection standards
2) Interconnection costs
– Improve projections of interconnection cost,
upgrades, timing
3) “Strategically located”
4) Smart inverters
– Assess in operation to consider potential
mandate
5) Optimal mix of distributed resources
• Assess using existing/forecast load, existing
equipment, forecast distributed resource growth
13

14. Thank You and Questions
Rachel Peterson
Rachel.Peterson@cpuc.ca.gov
(415) 703-2872