CPUC Workshop: Distribution Resource Plans R.14-08-013 January 24,

CPUC Workshop: Distribution Resource Plans R.14-08-013 January 24,

CPUC Workshop: Distribution Resource Plans R.14-08-013 January 24, 2017 DRP Grid Modernization Workshop Jeffrey Kwan / Jose Aliaga-Caro Grid Planning and Reliability, Energy Division, California Public Utilities Commission Safety and Emergency Information In the event of an emergency, please proceed calmly out the exits. The evacuation location is the plaza between the Hearst Theater and the War Memorial Opera House on Van Ness Avenue. It is located South of McAllister Street on Van Ness. Exit down the front steps and go south down Van Ness across McAllister Street Earthquake: duck and cover, get down on your knees and get your

arms over your head and neck, get under the seats Active shooter: get out, hide out, take out 2 CPUC 3 Other Information WiFi Access: login: guest password: cpuc123016 Restrooms: 1) Down the hallway outside Auditorium, and 2) across

the courtyard in the main lobby towards the cafeteria. Call in information: Conference phone line: 1-866-830-4003 Participant code: 986 9619 WebEx : https://van.webex.com/van/j.ph p?MTID=m737ade4753861ef36e daef4688506175 Meeting number: 747 571 901 Meeting password: !Energy1 Distribution Resources Plan Website: http://www.cpuc.ca.gov/General.aspx?id=5071 Workshop Material will be posted on the website 4

Workshop Notice This workshop was noticed via an e-mail Ruling on January 11, 2017 on the following proceedings: DRP (R.14-08-013 ), IDER (R.14-10-003), PG&Es GRC (A.15-09-001), SCEs GRC (A.16-09-001). Rule 8.1(c ) of the Commissions Rules of Practice and Procedure states that an ex parte communication means a written or oral communication that does not occur in a public hearing, workshop, or other public forum noticed by ruling or order in the proceeding, or in the record of the proceeding. The workshop has been noticed on the Commissions Daily Calendar. As a result of this Ruling, any discussion regarding this proceeding at the workshop is not subject to ex parte reporting requirements. In addition, pursuant to Decision 14-11-041, Pacific Gas and Electric Company (PG&E) is subject to certain special restrictions and requirements regarding ex parte communications and contacts with certain Commission staff. By providing notice of the

workshop through this ruling, PG&&E is not subject to the ex parte restrictions and requirements of D.14-11-041 for any communications during this workshop. IT IS RULED that the January 24, 2017 Grid Modernization workshop is noticed in this proceeding as detailed above. 5 Grid Modernization Workshop Objectives

6 Primary Objective: Inform the development of a Commission framework to evaluate grid-modernization investments that are primarily aimed at increasing DER penetration, integration and value maximization; Identify the essential Distributive Energy Resources (DERs)-related grid functions that may be needed and the specific technologies that can provide those functions; Help the Commission distinguish between Grid Modernization investments that are primarily driven by the need to accommodate or control DERs and investments that are primarily driven by the goals of advancing safety, reliability, and resiliency generally; Identify the type of information a utility must provide to the Commission in order to justify the necessity and cost-effectiveness of a proposed DERrelated grid modernization investment; and Discuss options for integrating a Grid Modernization investment framework into the Distribution Resource Plan (DRP) cycle and General Rate Cases.

Grid Modernization Vision for CPUCs Distribution Resource Plans Public Utilities (P.U.) Code 769 required each electric utility to: Identify optimal locations for the deployment of DERs. Submit Distribution Resource Plans (DRPs) that, once approved, must minimize overall system costs and maximize ratepayer benefit from investments in DERs. Propose any spending on distribution infrastructure necessary to accomplish the DRP in its general rate case (GRC). Spending may be approved if ratepayers would realize net benefits and costs are just and reasonable. 7 February 2015 DRP Guidance Ruling This guidance directed the utility DRPs to:

Modernize the electric distribution system to accommodate two-way flows of energy and energy services throughout the IOUs networks; Enable customer choice of new technologies and services that reduce emissions and improve reliability in a cost efficient manner; and Animate opportunities for DERs to realize benefits through the provision of grid services. The Guidance further elaborated key concepts for the DRP process: 8 An inevitable consequence of these rapidly evolving changes to utility distribution will be the need to add new infrastructure, enhance existing

networks and adopt new analytical tools to allow consumers to be active managers of their electricity consumption through the adoption of DERs; the goal being to create a distribution grid that is plug-and-play for DERs. DRP October 21, 2016 Track 3 Assigned Commissioners Ruling Sub-track 1: DER Adoption and Distribution Load Forecasting; Process Alignment Workshop: February 3, 2017 Sub-track 2: Grid Modernization Investment Guidance Sub-track 3: Distribution Investment Deferral Process 9

DRP Track 3 Sub-Track 2 Scoping Items Item 3: Grid modernization investment frameworks Item 15: What grid modernization functions need to be deployed to support full DER integration 10 DRP Track 3 Sub-Track 2 Issues Identification of distribution grid technologies and/or functions that enable greater DER penetration, integration and value maximization (versus investments that promote visibility, reliability, or resiliency generally); Which technologies may be needed on a locationspecific basis (whether due to natural adoption or as needed to enable a distribution investment deferral) and which may be needed system-wide; and The type of information a utility must provide in order to

justify the necessity or cost-effectiveness of a proposed DER-related grid modernization investment. 11 Grid Modernization Workshop Agenda Introduction; Safety Message; Context and Purpose 9:30 9:40 AM PRESENTATIONS: Presentations by: US Department of Energy and Energy Division Q&A 9:40 10:30 PM PANEL 1: GRID MODERNIZATION FOR DRP

Presentations by: PG&E, SCE, & SDG&E 10:30 12:55 PM BREAK (5 min) Presentations by: CAISO, GE, SolarCity, and TURN Q&A LUNCH (55 minutes) PANEL 2: CONSIDERATIONS FOR INVESTMENTS AND FRAMEWORK Presentations by: PG&E, SCE, SDG&E, and ORA BREAK (5 min) Presentations by: TURN and Clean Coalition Q & A on Presentations Wrap up 9:40 10:15 AM

10:15 10:30 AM 10:30 11:30 AM 11:30 11:35 AM 11:35 AM 12:35 PM 12:35 12:55 PM 12:55 1:50 PM 1:50 3:45 PM 1:50 2:50 PM 2:50 2:55 PM 2:55 3:25 PM 3:25 3:45 PM 3:45 4:00 PM

Lets Get Started . 13 Next Steps Energy Division will post presentations to the DRP website including WebEx Recording as soon as available. 14 Thank You! Formal documents are found using Rulemaking number R.14-08-013 at: http://www.cpuc.ca.gov/proceedings/

Other documents, including workshop presentations, staff reports, cost-effectiveness analysis, and other background papers are on the DRP website: http://www.cpuc.ca.gov/General.aspx?id=5071 CPUC Staff Contact Information Jeffrey Kwan [email protected] or 415-703-1189 Jose Aliaga-Caro [email protected] or 415-703-2338 Marc Monbouquette [email protected] or 415-355-5504 15

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