GOOD AFTERNOON WERE LIKE TO GET
STARTED WITH OUR.
FOR MAY SHOW HERE AND I'D LIKE
TO WELCOME ALL OF YOU.
TO THE UTILITY AND ENERGY
COMMITTEE OUGHT TO AND THEY WERE
GOING TO BE EXPLORING AND HAVING
ADDITIONAL CONVERSATION AROUND
THE ISSUES A REGIONAL ENERGY
MARKETS IN CALIFORNIA'S GREEN
GOALS.
AS MANY OF YOU KNOW THIS ISSUE
HAS BEEN. AROUND FOR AWHILE.
THAT AFTER THE PASSAGE OF SB
THREE FIFTY OF THEIR WAS A A
DIRECTION TO START LOOKING AT
EXPLORING REGIONAL MARKETS AND
GREATER DETAIL. UNDER THAT.
INITIATIVE AND WE HAVE SEEN
THIS ISSUE BRING ITS.
ARE WILL RAISE UP AT VARIOUS
TIMES SINCE THEN.
LAST YEAR AS WE ALL KNOW.
THE CALIFORNIA.
I AND.
KAI SO I WAS INVOLVED IN THE US
CONVERSATIONS OF THE GOVERNOR'S
OFFICE WAS INVOLVING
CONVERSATIONS THIS COMMITTEE. A
HELD A HEARING
START TO EXPLORE THE ISSUE OF
REALIZATION AND.
AT THE END OF SESSION THERE WAS
A BILL. OF THAT.
.
FACILITATED.
.
SOME STRATEGIES AND IDEAS AROUND
REGIONALIZATION OF THAT CAME
FORWARD AT THE END OF SESSION.
WE RECOGNIZE THAT.
AN ISSUE OF SUCH MAGNITUDE
REQUIRED A LITTLE BIT MORE
CONVERSATION. AND TRANSPARENCY
AND SO WE'VE INITIATED THAT.
CONVERSATION THIS YEAR UNDER.
AB A THIRTEEN ARE AS WE. GO
FORWARD WITH THIS A HEARING
TODAY IT'S
ENVISIONED THAT THE CONVERSATION
WILL.
OPERATE ON A BROADER SCALE BUT
ALSO HAVE AN OPPORTUNITY TO LOOK
AT THE.
OF THE CONTOURS OF AB EIGHT
THIRTEEN AND HOW IT IS AT THIS
POINT LOOKING TO ADDRESS. MANY
OF THE ISSUES THAT A BEEN REYES
WE'VE HAD A NUMBER OF PUBLIC
INFORMATION.
SESSIONS STAKEHOLDER GROUP I
SHOULD SAY OUR CONVERSATIONS
AROUND THE BILL TO TAKE INPUT.
AND SO WE'RE A LOOKING FORWARD
TO CONTINUING THAT PART OF THE
PROCESS.
AND MAKING THIS IS TRANSPARENT.
A AN EFFORT AS WE POSSIBLY CAN
AND TAKE AS MUCH INPUT AS WE
POSSIBLY CAN. ABOUT TODAY.
IT'S AN OPPORTUNITY FOR US ALL
TO HAVE.
ADDITIONAL INFORMATION PRESENTED
ON THIS SUBJECT.
I SHOULD THAT BILL MOVE.
IT WILL STILL TAKE.
A PROCESS IN TIME FOR TO MAKE
ITS WAY BACK TO THIS HOUSE IN
THE COMMITTEE AND SO WE THOUGHT
IT ALSO WOULD BE IMPORTANT TO
GIVE EVERYONE AN UPDATE. ON THE
SUBJECT AND SO THAT'S WHY WE'RE
CONVENING THIS HEARING TODAY.
I'M GOING TO INTRODUCE OUR FIRST
PANEL WE HAVE A NUMBER OF.
WE HAVE AT LEAST TWO PANELS THAT
WERE GOING TO CALL ON TODAY THEN
WILL HAVE.
PUBLIC COMMENT OUR WE WILL TAKE
THREE MINUTES A PUBLIC COMMENT
FOR EACH PERSON OR AND OR GROUP
OR INDIVIDUAL REPRESENTING A
GROUP. AND THEN AS I SAY AS OF
BEING AN INFORMATIONAL HEARING
THERE WILL BE OPPORTUNITIES FOR.
THE COMMITTEE A TO ASK QUESTIONS
OF THE MEMBERS OF THE PANEL AND
IT'S THE PREROGATIVE OF.
THE COMMITTEE IF THEY WOULD LIKE
TO. ASK A QUESTION OF SOMEONE
WHO MAY BE A PUBLIC SPEAKER A
BUT WE WILL SEE HOW MANY OF YOU
WOULD LIKE TO SPEAK IN THAT WILL
SORT OF A GAUGE.
A HOW WE PROCEED FROM THAT POINT
BUT IF I COULD IF I'D LIKE TO
CALL FORWARD OUR FIRST PANEL
THAT WILL BE ADDRESSING THE
ISSUE A GRID. MANAGEMENT TRENDS.
PERSPECTIVES ON THE NEED FOR
REGIONALIZATION AND A. B. A
THIRTEEN FROM THE CALIFORNIA
INDEPENDENT SYSTEMS OPERATOR.
OF OUR FIRST THAT PANEL WILL
CONSIST OF MARK ROTH LETTER.
VICE PRESIDENT MARKET QUALITY
AND RENEWABLE INTEGRATION.
AND PHILIP.
PETTING GILL DIRECTOR OF
REGIONAL INTEGRATION.
SO WE CAN HAVE YOU COME FORWARD.
OF.
YOU SURE CARE.
THANK YOU MISTER.
BRINGING HIMSELF.
PORTANTINO ARE A.
YOUR IT IT IS WORK YOUR LIFE NOW
OKAY.
THANK YOU MISTER CHAIR FOR
BRINGING US UP TO THIS VERY
IMPORTANT HEARING.
I KNOW A NUMBER OF PEOPLE ARE
VERY CONCERNED ABOUT.
CALIFORNIA LOSING.
IT'S.
SAY OVER WHAT WE DO LOCALLY.
I CAN ASSURE YOU THAT THE PEOPLE
WERE LOOKING AT WORKING WITH ARE
JUST AS WORRIED ABOUT GETTING IN
BED WITH THE EIGHT HUNDRED POUND
GORILLA CALLED CALIFORNIA.
I AM CERTAIN THAT WHATEVER
AGREEMENT IS HERE.
WE WILL BE ABLE TO MAY MAINTAIN
OUR RESPONSIBILITIES FOR MEETING
ARE TWENTY THIRTY TWENTY FORTY
TWENTY FIFTY GREENHOUSE GAS
REDUCTION GOALS.
DOES MEAN THAT THESE OTHER
STATES MIGHT WANT TO DO CALL OR
SOMETHING ELSE.
THAT WE'LL BE THEIR
RESPONSIBILITY I KNOW WERE ALSO
CONCERNED ABOUT JOBS AND WE
DON'T WANT TO EXPORT JOBS TO
OTHER STATES THAT. COULD BE
THINGS COULD BE BETTER DONE HERE
AGAIN THE PEOPLE THAT WE WILL
WORK WITH WILL HAVE THE SAME
CONCERNS.
AND I AM CONVINCED THAT WE CAN
COME UP WITH A FAIR WAY OF DOING
THIS THANK YOU.
ADDRESS QUIRK SEMESTER THANK YOU
UP DID VERY VERY QUICKLY ABOUT
PREACHING EVERYBODY BEING HERE
REALLY APPRECIATE ABOUT THE
SERIOUSNESS OF THE DEPTH.
THAT WE'RE LOOKING AT THIS.
.
AND I REALLY APPRECIATE THAT THE
CHAIRS LEADERSHIP IN THIS AND I
LOOK FORWARD TO GOOD
INFORMATION.
AT AN OPEN TRANSPARENT THAT
PROCESS AND HOPEFULLY GETTING TO
SOME DECISIONS THAT ACTUAL WILL
IN INCREASE.
RELIABILITY FLATTEN COSTS AND
AND PERHAPS. ACTUALLY.
ENCOURAGE OTHERS TO TAKE A LOOK
AT HOW CALIFORNIA'S DOING ITS
ELECTRICITY LOTTA GOOD
POSSIBILITIES HERE BUT THERE ARE
WARNING SIGNS ALONG THE WAY AND
I THINK WE NEED TO LISTEN TO ALL
OF THOSE. BECAUSE INSTEAD OF
THEM SO THANK YOU MISTER
CHAIRMAN FOR FOR CONVENING THIS.
TOTAL.
THANK YOU.
CHAIR HOLDEN AND MEMBERS OF THE
COMMITTEE.
MY NAME'S PHIL PATTON GO ON THE
DIRECTOR FOR REGIONALLY GRATION
AT THE CALIFORNIA I ALSO. AND
WANT TO THANK YOU FOR HOLDING
THE HEARING TODAY AND MOST
IMPORTANT A APPRECIATE YOUR
CONSIDERATION FOR GREATER
REGIONAL COLLABORATION AND WE
CERTAINLY BECAUSE IT WILL WE
BELIEVE IT WILL HELP ADVANCE
CALIFORNIA'S CLEAN ENERGY GOALS.
SO MY COLLEAGUE MARK ROUGHLY AND
I ARE GOING TO.
WALK THROUGH A FAIR AMOUNT OF
INFORMATION FOR YOU TODAY AND
YOU WILL GET TO THE SLIDE DECK
WHEN I HANDED OFF TO MARK. BUT I
WANTED TO MAKE A FEW OPENING
REMARKS AND IN SHORT WE'RE HERE
TODAY BECAUSE THE REGIONAL GRADE
WILL BE GOOD FOR CALIFORNIA.
AND TO THAT END WE'RE HERE TO
PROVIDE AN OVERVIEW OF WHAT WE
DO THE I SO.
DISCUSS WHAT ARE SOME OF THE
OPERATIONAL EXPERIENCES AND
CHALLENGES THAT WE'VE ALREADY
SEEN AND WHERE WE SEE THINGS
GOING. AND MORE IMPORTANTLY JUST
EXPLAIN HOW A REGIONAL
COLLABORATION MULTI STATE DIET
SO CAN CERTAINLY HELP MEET
CALIFORNIA'S ONGOING GREEN
ENERGY GOALS.
AND SO BY WAY OF BACKGROUND I
JUST WANTED TO MAKE SURE WE
UNDERSTAND THAT AND I ALSO LEAST
DECIDED SO IS A NOT FOR PROFIT
ENTITY. WERE PUBLIC BENEFIT
CORPORATION.
AND WE WORK UNDER THE
JURISDICTION OF THE FEDERAL
ENERGY REGULATORY COMMISSION.
BUT MORE IMPORTANTLY WHAT WE DO
IS WE APPLY NATIONAL RELIABILITY
STANDARDS IN OPERATING BUILD IT
UP AND SERVING ABOUT EIGHTY
PERCENT OF THE LOAD. HEARING
CALIFORNIA AND PROVIDED RELIABLE
ELECTRIC SERVICE TO THOSE THOSE
CONSUMERS HERE IN THE STATE OF
CALIFORNIA.
ONE OF THINGS WE'VE DONE OVER
THE LAST SEVERAL YEARS
IS CALIFORNIA'S MADE GREAT
STRIDES IN IMPLEMENTING
SIGNIFICANT LEVELS OF RENEWABLE
RESOURCES INTO THE SYSTEM. AND
AT THE SAME TIME INSURING A LOT
RELIABLE ELECTRIC SERVICE TO
CONSUMERS.
WAIT WE'VE DONE THAT IS CAL I SO
WORKS WITH OUR STAKEHOLDERS WITH
A VERY OPEN AND TRANSPARENT
STAKEHOLDER PROCESS.
BUT WHAT WE'VE DONE IS WE'VE
DEVELOPED AND DEPLOYED A NUMBER
OF TECHNOLOGY TOOLS TO HELP US
DO THIS.
AND FIRST AND FOREMOST WHAT OUR
PRIMARY GOAL IS BOUNCING LOADS
AND RESOURCES AND MAKING SURE WE
CONSERVE THAT THAT CONSUMER LOAD
AT ALL HOURS.
WE ALSO HAVE BEEN ABLE TO DO
THAT THE SAME TIME WE'RE
INCREASING THAT RENEWABLES
COMING FROM THE STATE'S OUR PS
GOALS AND MORE POORLY NOW
STARTING TO MEASURE AND QUANTIFY
WHAT'S HAPPENING WITH GHG
EMISSIONS. AS PART OF THOSE
OPERATIONS.
SO WE'RE CONTINUALLY WORKING TO
REFINE THAT AND MOVE THIS
FORWARD. BUT REALLY WHAT WE ARE
SEEING IS AN ENHANCED CREATED
THAT'S IMPROVING RELIABILITY FOR
CALIFORNIA AND SOME OF THE
WESTERN STATES AS WELL AND
YOU'LL HEAR SOME MORE ABOUT THAT
FROM US.
IT'S IMPORTANT RECOGNIZE.
THERE IS A MAJOR EVOLUTION
HAPPENING IN THE WEST TODAY.
PALM WE ARE NOT THE ONLY ISO
THERE'S AT LEAST TWO OTHER AYE
ESOS THAT ARE NOW LOOKING TO
OPERATE IN THE WESTERN STATES.
AND WHAT WE'RE SEEING IS MOST OF
THE UTILITIES THROUGHOUT THE
WESTERN STATES ARE ACTUALLY
SEEKING OPPORTUNITIES TO
INTEGRATE HIGHER LEVELS OF
RENEWABLES.
AND SEE HOW THEY CAN DO THAT
ENSURING A RELIABLE GRID BUT
ALSO DO THAT IN THE MOST COST
EFFECTIVE WAY TO REDUCE THEIR
COSTS AS WELL. SO THEY HAVE A
SIMILAR SET OF GOALS THAT WE
HAVE HERE.
ON IN DOING THAT WE SEE THAT.
IT'S IMPORTANT FOR US TO NOT
LOSE.
OPPORTUNITIES IN TERMS OF THE
OPPORTUNITY TO EXPAND THE SIZE
SO BECAUSE THE REALITY OF HIS
THOSE UTILITIES ARE LOOKING.
AND THE MORE ENTITIES THAT WE
CAN BRING TOGETHER UNDER THIS
ISO THE OPPORTUNITY AND THE
LOWER COSTS AND THE BENEFITS
THAT WE'RE GONNA TALK ABOUT.
HAPPEN AS WE BRING MORE MORE
ENTITIES TOGETHER.
SO TO BE SURE WE'VE DEVELOPED
YOU KNOW OUR RESPONSE TO THIS AS
WELL AND SOME OF THE THINGS
WE'VE DONE IS SOME VERY ADVANCED
A TECHNOLOGY AS I MENTIONED
BEFORE. PUT MORE POOR THE USING
OUR IT PLATFORM TO HELP IN AB
INTEGRATE AND ACTUALLY OPERATE
FOR EXAMPLE HIGH LEVELS OF
STORAGE AS THE STATE STARTS TO
ADD MORE AND MORE STORAGE TO THE
SYSTEM. IN ONE OF THE TOOLS TO
EMIGRATE RENEWABLES.
SO LET ME JUST SAY IN CLOSING.
THE THE ISO SUPPORTS
THE CHAIRMAN'S GOALS CERTAINLY
IN TERMS OF EXPLORING AT THE
GREAT THE OPPORTUNITIES
AVAILABLE FROM REGIONAL
COLLABORATION.
AND WHAT WE WANT TO DO TODAY IS
ARM SUPPOSED TO LET YOU KNOW
THAT WE SUPPORT THE LEGISLATION
THAT WOULD PROVIDE FOR A
REGIONAL COLLABORATION. AND MORE
POORLY WE STAND READY TO TRY TO
BE A RESOURCE.
AND HELP YOU MISTER CHAIR AS
WELL AS THE COMMITTEE MEMBERS
STAKEHOLDERS AND SO FORTH TO
WORK THROUGH THIS DISCUSSION AND
DEVELOPING SOME LEGISLATION THAT
WOULD BE EFFECTIVE FOR
CALIFORNIA.
AND SO WITH THAT I'D LIKE TO
HAND IT OVER TO. MY FRIEND MARK
ROTH LEADER TO PROVIDE MORE
DETAILS AND SHARE WITH YOU SOME
OF THE EXPERIENCE WE'VE HAD AN
OPERATING SYSTEM.
THANK YOU.
BUT YOU FILL CHAIR HOLDING THINK
VERY MUCH FOR CONVENING THIS.
DISCUSSION AND ASSEMBLYMEMBERS
AND I LOOK FORWARD TO THE
CONTINUING DISCUSSION ON THIS
TOPIC.
WHAT I'M GONNA GO THROUGH IS
DESCRIBED BIT PROVIDE YOU A
LITTLE BIT MORE INSIGHT INTO?
?
WHAT A BALANCING AREA AUTHORITY
DOES? UP THE CONTEXT OF WHERE
CALIFORNIA IT EXIST RELATIVE TO
THE REST OF THE WEST AND HOW
THEIR INTERCONNECTED.
I WILL DESCRIBE WHERE WE ARE IN
TERMS OF.
INTEGRATING RENEWABLES AND
WHERE WHERE WE ARE LOOKING
FORWARD IN TERMS OF INTEGRATING
ADDITIONAL RENEWABLES.
AND I'M GONNA DIVE INTO.
.
A SIDE OF.
DAYS THAT ILLUSTRATES SOME OF
THE EXPERIENCE OPERATIONAL%
EXPERIENCE THAT WE'VE ACTUALLY.
OBSERVED AND AS I DO SO I'LL
DESCRIBE.
WHERE REGIONALIZATION MAY PLAY
A ROLE IN HELPING US MANAGE
OPERATIONALLY AT AN INEFFICIENT
COST?
THEN I'LL CLOSE WITH SOME.
HIGHER LEVEL DISCUSSION ABOUT.
.
REALLY REGULATIONS AS PART OF A
SUITE OF SOLUTIONS THAT WE
BELIEVE THAT ARE NECESSARY IF
WE'RE GOING TO ACHIEVE. THE
OBJECTIVE OF A LOWER CARBON GRID
OUT OF IT AT A AT A REASONABLE
COST.
SO THAT.
.
JUST THAT IT'S A TRADING WHERE
WOULD WHERE IS CALIFORNIA IS SO
IS CALIFORNIA IS SO IS A
BALANCING AUTHORITY AREAS.
MISTER PATTON HILL JUST
DESCRIBED WE ARE INTERCONNECTED
WE ARE THE LARGEST BALANCING
AREA AND TERMS OF A LOAD IN THE
WESTERN A CONNECTION. AND THAT
DIAGRAM OF THE OUTLINE OF THE
WESTERN UNITED STATES THAT
OUTLINED ILLUSTRATES THAT THIS
IS AN INTERCONNECTED SYSTEM.
THE WIRES THE RESOURCES ARE ALL
INTERCONNECTED SO RESOURCE THAT
IS MOVING AT.
CERTAIN SPEED AND IN CALIFORNIA
IS MOVING THE SAME SPEAKERS
INTERCONNECTED EFFECTIVELY
CONNECTED TO OTHER RESOURCES
THROUGHOUT THE WEST.
IF YOU GO FURTHER EAST YOU ARE
NOW INTO ANOTHER INTERCONNECTION
SO THE WHOLE WEST IS ONE MACHINE
IF YOU WANT TO CONSIDER THAT.
WE ARE THE ONLY.
CENTRALIZED.
MARKET OPERATING REST THE ISL.
ALBERTA IN CALLIN AND I CAN'T
CANADA.
THEY HAVE A MARKET UP THERE IN
CANADA.
THERE IS A MARKET FORMING IN
THAT AREA THAT'S CALLED THE
MOUNTAIN WEST TRANSMISSION GROUP
AND AS MR PETTING GILL
DESCRIBED.
SOUTHWEST POWER POOL IS
INTENDING TO PROVIDE BALANCING
AREA SERVICES AND PROVIDE MARKET
SERVICES. INTO THAT AREA.
THE REST OF THE WEST OF THIS IS
THAT THE YOU SEE IS GREEN IS
BASICALLY OPERATING IN A
BILATERAL ARRANGEMENTS.
THEY CALL SOMEONE MAKE A DEAL
WITH SOMEONE TO PRODUCE MORE
ENERGY.
TO BALANCE OUR SYSTEM.
THAT SAID THERE ARE THIRTY EIGHT
BALANCING AUTHORITY AREAS IN THE
WEST.
ALL OF THE HAVE THE
RESPONSIBILITY OF BASICALLY
BALANCING ON A SECOND BY SECOND
BASIS LOADS AND RESOURCES.
SO ALL THESE THIRTY EIGHT
BOUNCING AREAS ARE INDIVIDUALLY.
COMING UP WITH THEIR RESOURCE
PLAN THERE DISPATCH PLAN
INTRADAY AND THEY ARE DOING THAT
IN A SEMI COORDINATED WAY. BUT
THEY'RE FOCUSED ON WHAT THEY
NEED FOR THEIR SYSTEM.
SO JUST TO ADD A LITTLE BIT MORE
COLOR AROUND.
BALANCING
OKAY
ONE OF THE FUNCTIONS OF THE
BOUNCING AREA IS TO BASICALLY
BALANCE LOW THE RESOURCES.
THIS IS WHAT I'M GONNA DESCRIBE
AND DISCUSS MORE THAN THE OTHER
FUNCTIONS THERE ARE THERE ALL
FUNCTIONS WE NEED TO MAINTAIN
RELIABILITY ENSURING THAT NO.
INDIVIDUAL TRANSMISSION ELEMENT
IS OVERLOADED.
BASICALLY SO IN SECURING
SECURITY OF THE SYSTEM.
IF THERE IS A MAJOR OUTAGE WE
ARE RESPONSIBLE FOR HELPING
REBUILD THE SYSTEM BACK UP.
OKAY.
AND THEN WE ALSO HAVE THE
RESPONSIBILITY OF ENSURING THAT
WE MAINTAIN ANOTHER RESERVES
OPERATING RESERVES SO THAT WE
ARE ALWAYS READY IN CASE WE LOSE
A RESOURCE. WE HAVE THE ABILITY
TO REPLACE THAT AND NOT HAVE ANY
INTERRUPTION OF SERVICE OKAY. SO
FOR THE REST MY DISCUSSION I'M
GONNA BE FOCUSING MORE AROUND
THE BALANCING PIECE.
AND ON THE BALLOT IN PEACE.
YOU THINK THIS IS A BALANCING
ACT LOW THE RESOURCES IF THEY'RE
IN BALANCE AND BECAUSE
ELECTRICITY HAS TO BE CONSUMED
AT THE SAME TIME IT'S PRODUCED
EFFECTIVELY.
.
WHEN IT IS IN BALANCE WE ARE
HELPING MAINTAIN THE SPEED OF
THE SYSTEM THE SPEED OF THE
SYSTEM OF MEASURE BY. HURTS
SIXTY HERTZ
BLUE LIGHTS RIGHT NOW ARE
BASICALLY IN WITH A FLICKERING
AT SIXTY HERTZ YOU DON'T SEE IT
BUT THEY ARE A TRIP IT'S
OCCURRING.
IF YOU'RE DEMAND IS GREATER THAN
YOUR SUPPLY.
IT'S THE WILL SLOW DOWN.
OKAY THE VERY NARROW BAND WHICH
WE OPERATE BASICALLY PLUS OR
MINUS POINT ZERO SIX HERTZ IS
THE BAND OF WHICH WE OPERATE.
IF IT SLOWS DOWN TOO MUCH.
WE BASICALLY GET TO THE POINT
WHERE WE HAVE WITH IS AUTOMATIC
RELAYS IT WILL BASICALLY
INTERRUPT LOAD.
PROTECT THE SYSTEM THAT HAPPENS
AT FIFTY NINE POINT FIVE HURTS.
NOW YOU CAN ALSO HAVE TOO MUCH
SUPPLY AND THAT'S NOT GOOD
EITHER BECAUSE IF IT TOO MUCH
SUPPLY. YOU BASICALLY HAVE THE
SYSTEM RUNNING FASTER THAN IT
WOULD THAT IS DESIGNED FOR.
AND.
HAVING TOO MUCH SUPPLY CAN LEAD
TO EQUIPMENT DAMAGE IF IT'S
GOING TO FAST AND THAT COULD
CREATE PERMANENT DAMAGE SO WE
BASICALLY HAVE TO CONSTANTLY
BALANCE.
LOADS IN RESOURCES OUR PURCHASES
OF ENERGY TO MAINTAIN THIS
BALANCE AND MAINTAIN SIXTY
HERTZ.
.
YOU MAY HAVE READ RECENTLY THAT.
.
IN THE.
SERBIA.
THEY WEREN'T ABLE TO MAINTAIN
THIS FREQUENCY BALANCE A RESERVE
ISSUES BETWEEN THE AREAS. AND IN
FACT.
THEY ACTUALLY CHANGE TIME OR
SLOW DOWN TIME BY SIX MINUTES
BECAUSE THEY WEREN'T IN
AGREEMENT HOW TO MAINTAIN THIS
BALANCE.
THAT'S ONE.
ILLUSTRATION OF WHAT HAPPENS
YOU'RE NOT BALLOTS
BUT MORE IMPORTANTLY WE'RE
TRYING TO MAINTAIN THIS BALANCE
SO THAT WE MAINTAIN RELIABILITY
AND WERE PREPARED FOR. BOUNCING
IF THERE'S ANY SYSTEM
DISTURBANCE.
WE MADE A TREMENDOUS PROGRESS IN
INTEGRATING RENEWABLES.
WE'VE GOT TWENTY ONE THOUSAND
MEGAWATTS FIRST OFF.
OUR P. CLOSE ABOUT FIFTY
THOUSAND MEGAWATTS.
WE HAVE TWENTY ONE THOUSAND
MEGAWATTS OF LARGE SCALE
RENEWABLES. INTER CONNECTED TO
THE CALIFORNIA I AM SO GRID.
IN ADDITION TO THAT.
WE'VE GOT SIX THOUSAND MEGAWATTS
OF ROOFTOP BEHIND THE METER
SOLAR CONNECTED THE GRIT. THAT
SIX THOUSAND MEGAWATTS A ROOFTOP
SOLAR WE DON'T SEE THAT WE DON'T
HAVE. VISIBILITY TO THAT
DIRECTLY ALL WE SEE IS LESS LOAD
ON THE SYSTEM.
ON THE TWENTY ONE THOUSAND
MEGAWATTS OF LARGE SCALE WE SEE
THAT WE CAN SEE WAS PRODUCING WE
CAN MANAGE IT AND.
I INTO.
WELL BOUNCE.
AND WE WE MANAGED WE CAN SEE IT.
THIS ALL GETS US.
WE'RE BASICALLY NEAR OUR GOAL OF
MEETING THIRTY THREE PERCENT OUR
PS.
AS WE MOVE ON AND WE MOVE ON TO
FIFTY PERCENT ARE PS.
WE NOW HAVE TO GET ADDITIONAL
RENEWABLES BUILT ON THE SYSTEM.
AND ROUGHLY SPEAKING YOU NEED TO
ADD ANOTHER FIFTEEN THOUSAND
MEGAWATTS OF. RENEWABLE CAPACITY
IN THE SYSTEM.
AT THIS POINT WE DON'T KNOW
EXACTLY WHAT THAT MIX OF
RESOURCES ARE GOING TO BE.
BASED ON CC.
PLANNING AND CPUC INTEGRATED
RESOURCE PLANNING IT LOOKS LIKE
ONE POSSIBILITY IS SOMETHING
AROUND.
ELEVEN THOUSAND.
PLUS MEGAWATTS OF ADDITIONAL
ADDITIONAL ROOFTOP SOLAR.
AGAIN A LOT OF THAT MAY NOT BE
VISIBLE TO THE OPERATOR.
IN ADDITION TO THAT IS ABOUT
THIRTY THREE HUNDRED MEGAWATTS
POTENTIALLY OF ADDITIONAL
RENEWABLES.
ON THE GRID.
AND THAT MAYBE LARGELY SOLAR
RESOURCES.
SO.
WE DO THINK THAT FIFTY PERCENT
IS ACHIEVABLE BY TWENTY THIRTY.
IT CAN BE DONE.
HOWEVER.
THE WORK THAT WE DID TO GET TO
THIRTY THREE PERCENT.
THAT WORK HAS TO CONTINUE AND I
PROBABLY HAVE TO ACCELERATE IN
TERMS OF THE SOLUTION AND THE
INNOVATION BECAUSE IT'S GONNA BE
HARDER OPERATIONALLY.
TO FIFTY PERCENT.
BUT WILL LOOK FORWARD TO THE
CHALLENGE.
WHAT IN TO SHOW YOU NOW
SOMETHING YOU'VE PROBABLY SEEN
BEFORE?
?
BUT I WANT ILLUSTRATE THIS E. OF
THE DOCKER. STILL STRAIGHT WHERE
WE ARE.
WHERE WE THOUGHT WE WOULD BE BY
THIS POINT?
AND I'M GONNA ROLL INTO THE REST
OF THE THE DIAGRAMS AND LEVERAGE
THIS INFORMATION.
SO WE PRODUCES FIRST OFF WHAT
YOU'RE LOOKING AS IS THE DOCTOR
THIS IS THE NET LOW THIS IS THE
LOAD MINAS.
VARIABLE RESOURCE OF THE WIND
AND SOLAR PRODUCTION.
THE REASON WHY WE TALK ABOUT.
NET LOW IS BECAUSE OF THE
BOUNCING AREA THAT'S EFFECTIVELY
WHAT WE HAVE TO BALANCE WITH THE
MOVE OTHER RESOURCES AROUND.
TO BALANCE THAT NET LOAD.
I DON'T HAVE CONTROL OVER THE
VARIABLE RESOURCES FOR THE MOST
PART.
AND SO WE WERE REFER TO THE NET
LOW IS WHAT WE'RE BALANCING FOR.
AND YOU CAN SEE HERE WHEN WE PUT
THIS TOGETHER ABOUT SIX YEARS
AGO WE SAID OKAY WHAT WHAT'S
GONNA HAPPEN TO OUR NET LOAD.
OVERTIME AND YOU CAN SEE HERE
THAT WEEK WE EXPECTED AS.
ADDITIONAL RENEWABLES
SPECIFICALLY SOLAR IN THE MIDDLE
OF DAY PRODUCE.
WE WILL SEE THE NET LOW REDUCE
FURTHER AND FURTHER IN THAT
MIDDLE DAY CARE IT.
WE EXPECTED TO BE WOULD BE ABOUT
TWELVE THOUSAND MEGAWATTS BY
TWENTY TWENTY.
IN REALITY WE ARE CURRENTLY
WE'VE SEEN A DAY DAYS ABOUT
SEVEN THOUSAND MEGAWATTS. NET
LOAD IN THE MIDDLE ON NICE
SUNDAY SPRING CONDITION.
AND I'LL EXPLAIN LATER WHY AND
WHAT THAT MEANS TO US IN TERMS
OF OPERATIONAL CONDITIONS BUT
THE POINT IS AND YOU MAY ASK
WHAT WHAT WHAT HAPPENED TO THE
SIX THOUSAND MEGAWATTS WHY'D YOU
MISS. YOUR YOUR YOUR
EXPECTATIONS WHEN YOU MADE THIS
PROJECTION SIX YEARS AGO.
WHAT I THINK WE MISSED WAS THE
LEVEL OF GROWTH AND?
AMOUNT OF RENEWABLES ROOFTOP
SOLAR. ó COMING ON TO THE
SYSTEM.
AND THAT WE'RE REDUCED
EFFECTIVELY THE LOAD ITSELF AND.
BRACELET TRADING THE.
THE LOWER BELLY OF THE DOCK.
THE SECOND THING THAT THIS.
ILLUSTRATES
FROM OPERATIONAL PERSPECTIVE IS.
THE RAMP IN THE EVENING.
AND AGAIN I'M BOUNCING THE
SYSTEM OPERATE COSTLY BALANCING
THE SYSTEM.
AS THE LOAD CONTINUES TO GROW IN
THE EVENING PEOPLE GO HOME
LIGHTS COME ON.
THE SOLAR IS ROLLING OFF SUN IS
SETTING AND NOW WE HAVE.
TO MANAGE BASICALLY.
FOURTEEN THOUSAND WHAT WE'VE
SEEN NOW FOURTEEN THOUSAND PLUS
MEGAWATTS OVER A THREE HOUR
PERIOD.
BUT THAT IN CONTEXT.
REMOVING THE EQUIVALENT OF.
.
SIX DIABLO CANYONS
OVER A THREE HOUR PERIOD THE
BALANCE OF SYSTEM AT THIS POINT.
OKAY.
WE'VE GOTTEN GOOD AT DOING IT.
WE KNOW HOW TO DO IT. THERE'S
THEY'RE SUFFICIENT CAPACITY TO
DO IT RIGHT NOW.
I'M GONNA TAKE STILL STRAIGHT.
NOW WHAT THE CHALLENGES.
SOMETHING TO DIVE INTO A COUPLE
THESE DAYS A LITTLE BIT DEEPER.
AND I APOLOGIZE THAT THESE ARE
BUSY SLIDES.
BUT IT.
STICK WITH ME HERE AS I LIKE
TRYING TO DESCRIBE THIS.
SO THIS IS FEBRUARY EIGHTEENTH
THIS IS THE DAY THAT I JUST JUST
DESCRIBE YOU THAT WE HAD A SEVEN
THOUSAND MEGAWATTS. NET LOAD.
.
MINIMUM AT LOW DAY.
THAT NOW LOAD IS ILLUSTRATED BY
THAT GRAD DOTTED LINE.
OUR LOAD I DON'T LIKE IT.
OUR LOAD IS THAT BLACK LINE.
AT THE TOP.
OKAY SO IF YOU LOOK FROM THE
BOTTOM UP WHAT YOUR LEAK LOOKING
AT IS THE RESOURCE MIX.
THAT IS BEING PRODUCED TO
BALANCE THE LOAD
STARTING FROM THE BOTTOM.
WE'VE GOT A THOUSAND MEGAWATTS
OF DL CAN YOU CLEAR UP PLAN.
ON THIS PARTICULAR DAY WE HAD
MAINTENANCE ON ONE OF THE UNITS.
SO AS A RESULT OF THAT WE CAN
HAVE TO THOUSAND MEGAWATTS
PRODUCTION WILL HELP THOUSAND
MEGAWATTS PRODUCTION.
AND THAT'S IMPORTANT BECAUSE
THAT ACTUALLY MADE MORE ROOM FOR
THE RENEWABLES.
GOING UP.
WE NOW LOOK AT GEOTHERMAL
THERE'S ABOUT FIFTEEN HUNDRED
MEGAWATTS GEOTHERMAL AND YOU CAN
SEE IT'S LARGELY FLAT OVER THE
DAY IT'S LARGELY A BASELOAD
RESOURCE.
THAT SAID THERE ARE GEOTHERMAL
RESOURCES THAT ARE FLEXIBLE AND
CAN BE DISPATCHED ON THIS
PARTICULAR DAY THERE WERE THEY
WERE NOT DISPATCHED.
THE NEXT LEVEL UP IS EFFECTIVELY
THE THERMAL OR GAS FLEET.
AND YOU CAN SEE HERE THAT IN THE
MIDDLE OF THAT DAY WHEN WE HAVE
THE THE THE LOWEST THAT LOAD. WE
STILL HAVE ABOUT FIFTEEN HUNDRED
TO TWO THOUSAND MEGAWATTS OF GAS
RESOURCE PRODUCING.
I'M GONNAMOVE A LITTLE FASTER
HERE NEXT UP IS HYDRO HYDRO WAS
LARGER RUN OF THE RIVER. I WOULD
HAVE TO TAKE THAT. NEXT UP IS
IMPORTS THAT IMPORTS THIS IS THE
INTERCHANGE FROM OUTSIDE THE
AREA.
NAY YOU MAY ASK WELL WHY ISN'T
AT THE MIDDLE OF THE DAY WHEN WE
HAVE THESE LOW NET LOADS AND
FRANKLY OVERSUPPLY CONDITIONS
WHY WE STILL IMPORTING FROM
OUTSIDE.
THE REASON IS THERE'S
CONTRACTUAL OBLIGATIONS.
PALO VERDE IS A CONTRACTUAL
OBLIGATION TO BE DELIVERED TO
CALIFORNIA. THEIR* ALL ALL
ARE ALSO IS PROBABLY SOME
RENEWABLES THAT ARE IN THAT NET
IMPORT.
NEXT UP YOU'LL SEE WIND SO
THAT'S THE GREEN THE DARKER
GREEN.
AND THAT'S PRODUCING ABOUT
THREE THOUSAND TO FOUR THOUSAND
MEGAWATTS AT THAT TIME. NEXT UP
YOU SEE THE WITNESS THE SOLAR.
AND THAT SOLAR THE ABOUT EIGHT
NINE THOUSAND MEGAWATTS.
IN THE NEXT UP YOU SEE THE RED
SECTION JUST ABOVE THE BLACK
LINE THAT BLACK LINE AGAIN WAS
THE LOAD.
THE READ INDICATES THAT WE
CANNOT TAKE ALL THE SOLAR.
THAT'S THE AMOUNT A SOLAR THAT
WE COULD NOT TAKE AND WE
EFFECTIVELY CURTAILED.
FORTUNATELY WE HAD ECONOMIC BIDS
TO CURTAIL SO WE COULD MANAGE
IT.
AND IT WAS GOOD BUT EIGHT THERE
IS ABOUT EIGHTEEN HUNDRED
MEGAWATTS DURING THAT DAY THAT
WE COULD NOT USE ALL THE
RENEWABLES.
AND WE HAD A BASICALLY STOP THE
PRODUCTION.
NOW MOVING NOW FROM A REGIONAL
PERSPECTIVE.
WHAT THE REGIONAL OPPORTUNITY IN
ONE PART HELPS US DO IS THAT
THAT?
LIGHT GREEN IMPORT.
IF WE HAVE A BETTER WAY OF
COORDINATING ACROSS THE WEST WE
MAY BE ACTUALLY TURN THAT AROUND
BECAUSE WE COULD ACTUALLY DE
COMMIT RESOURCES EXTERNALLY.
BASED ON OUR ARE A HOW WE SEE
THAT THE EXPECTATION OF THE
WHOLE SYSTEM AND THEN OPTIMIZE
OF ALL SYSTEM.
WE COULD TURN THAT AROUND SO
IT'S THAT WE CAN MAKE MORE ROOM
FOR THE RENEWABLES IN STATE.
NOW I'M GONNA MOVE ONTO THEIR TO
I'M SURE I'M GONNA MOVE ON TO
GROW QUICKLY THE EVENING WRAPPED
IN THIS PARTICULAR DAY WAS ONLY
THIRTEEN THOUSAND MEGAWATTS
RAMP.
AND THAT'S THAT'S FROM OUR
ENDING SIXTEEN TO THAT OUR IN
THE NINETEEN THAT'S THAT SHADED
AREA.
THE QUESTION I'M TRYING TO RUB
SHOW HERE OF WHAT A METRON
RESPONSES WHAT'S MEETING THAT
NET RAMP.
IT'S NOT SOLAR SOLAR TRAMPING
OUT SOLAR SHUTTING DOWN AT THIS
TIME.
WHAT'S MEETING THAT RAMP AND THE
EVENING PEAK.
IS IMPORTED ENERGY.
GAS RESOURCES IN CALIFORNIA. AND
HYDRO AND THOSE PERCENTAGES
DESCRIBE WHAT PERCENTAGE OF THAT
EVENING RAMP IS BEING MET BY
THOSE PARTICULAR RESOURCES.
NOW WE HAVE A LONGER TERM
OBJECTIVE TO REDUCE RELIANCE ON
GAS.
THEN THE QUESTION IS HOW SO
WE'RE TO MEET THAT EVENING RAN.
EITHER GONNA HAVE TO RELY MORE
ON IMPORTS.
ORGAN AFTER RELYING ON OTHER
SOLUTIONS
STORAGE.
AND OTHER SOLUTIONS TO FILL THAT
EVENING.
THE SOLAR IS NOT PRODUCING AT
THAT POINT.
SINCE YOU NOW ARE NOW FAMILIAR
WITH THIS GRAPH I'M GONNA
PROBABLY JUST THAT GO THROUGH
THIS ONE A LITTLE BIT QUICKER
THIS IS THE DAY. THAT WE HAVE
THE LARGEST THREE OUR RAMP IN
THE EVENING.
AND I JUST WANT US POINT OUT
THAT FOURTEEN THOUSAND MEGAWATT
EVENING AROUND ON THIS DAY.
WAS MET BY.
NOT SIXTY PERCENT IMPORTS BUT
THIRTY NINE PERCENT APART GAS
ACTUALLY MET FIFTY PERCENT
ALMOST OF THAT LOAD ON THIS
PARTICULAR DAY. AND HYDRO
PROVIDED ABOUT TEN PERCENT.
BUT I'M TRYING TO SHOW HERE THAT
FROM DAY TO DAY YOU CAN'T MISS I
RELY ON THE SAME AMOUNT. FROM
EXTERNAL.
SOURCES.
THERE MAY BE IMPLICATED THERE
MAY BE CONSTRAINTS OUTSIDE THEIR
LIMITING THAT ABILITY OF THAT OF
THOSE RESOURCES TO COME INTO
CALIFORNIA.
AND THAT'S WHY WE HAVE TO BE
READY TO BE ABLE TO.
HAVE A PROPER MIX TO BOUNCE
SYSTEM.
OKAY.
IS MY LAST.
A GRAPHICAL SLIDE.
I AM NOW SWITCHING SEASONS.
NOW I'M IN THE SUMMER.
THIS IS THE DAY THAT WE HAD THE
HIGHEST LOAD.
OF LAST YEAR.
OUR LOAD PEAK AT ABOUT FIFTY
THOUSAND MEGAWATTS.
WE HAVE NOT BEEN A FIFTY
THOUSAND MEGAWATTS SINCE TWO
THOUSAND SIX.
OKAY.
TWO THOUSAND SIX.
JUST GIVE YOU A REFERENCE THAT
WAS A ONE IN ABOUT ONE HUNDRED
TEMPERATURE DAY.
THIS WAS THE ONE IN NINETEEN
YEAR TEMPERATURE DAY.
THE CONSIDER BETWEEN TWO
THOUSAND SIX AND NOW TWO
THOUSAND SEVENTEEN I JUST.
EXPLAIN TO WE HAVE ABOUT SIX
THOUSAND MEGAWATTS OF ADDITIONAL
SOLAR BEHIND THE METER.
IF WE WERE SUCCESSFUL IN
INTEGRATING ALL THAT BEHIND THE
METER SOLAR THIS WOULD HAVE BEEN
A FIFTY SIX THOUSAND MEGAWATT
DAY.
OKAY SO.
THE FACT THAT WE ARE INTEGRATED
RENEWABLES IS HELPING MANAGE OUR
LOW.
HOWEVER.
AS THE SUN GOES DOWN.
FIRST UP.
SO WE. WE ARE EXPECTING IN WE WE
FORECASTED WITH ABOUT FORTY
EIGHT THOUSAND MEGAWATTS LOAD
FORTY SIX THOUSAND MEGAWATTS
LOAD FOR THIS PARTICULAR YEAR
PEAK.
WE EXCEEDED THAT.
OKAY THAT HAPPENS TEMPERATURE
CONDITIONS CHANGE.
WHEN THE SUN GOES DOWN OUR LOAD
WHICH IS REPRESENTED BY THAT
WHERE THAT DOTTED RED LINE AND
THE BLACK LINE ME.
STILL.
HIGHER THAN OUR FORECAST OF NET
LOW OR FORECASTED LOAD FOR THE
ENTIRE YEAR WAS EXPECTED TO BE.
AND WE HAVE NO SOLAR PRODUCTION
AT THAT.
SO WHAT THAT MEANS AND IT'S
ILLUSTRATED HERE'S TO MEET THAT
TWO HOUR LATER. LOW LEVEL THAT
STILL VERY HIGH WHAT DID WE RELY
ON.
WE RELIED ON A SIGNIFICANT
AMOUNT OF GAS RESOURCES AS
REPRESENTED BY THE BROWN.
HYDRO WHICH WAS A GOOD HYDRO
YOUR LAST YEAR SO WE'RE VERY
FORTUNATE.
AND THEN THE GREEN WHICH IS ON
THAT IN COURT OF ABOUT I THINK
ABOUT EIGHT TO NINE THOUSAND
MEGAWATTS OF NET IMPORT.
THIS IS HOW WE MEET OUR LOW.
FROM AN OPERATOR'S PERSPECTIVE.
THEIR STRESS LEVEL WAS NOT AT
THE TIME WHEN WE PEAKED.
THEIR STRESS LEVEL WAS HIGHEST
BETWEEN THAT TIME. AND WHEN WE
HIT THAT TWO HOUR THREE HOUR
LOOK LATER PEAK.
THAT'S BECAUSE.
LOOK NET LOW TO STILL GROWING ON
THEM.
THEY'RE LOSING EIGHT THOUSAND
MEGAWATTS OF SOLAR.
AND THEY STILL HAVE TO BALANCE
THE SYSTEM.
AGAIN I WANNA POINT OUT.
WE HAVE ENOUGH RESOURCES TO DO
THIS.
WE ARE ABLE TO MANAGE IT.
PLAYING THIS FORWARD NOW.
WE'LL HAVE SIGNIFICANT AMOUNT
MORE RENEWABLE RESOURCES.
THE GAS FLEET MAY NOT BE THE
SAME GAS FLEET THAT WE HAVE
TODAY.
SO WE HAVE TO START LOOKING FOR
INNOVATIVE SOLUTIONS.
TO HELP BOUNCE THE SYSTEM
OTHERWISE THERE COULD BE
INSUFFICIENT RAMPING OR
INSUFFICIENT CAPACITY TO MEET
THE LOW.
AND THAT WILL NOT BE GOOD THAT
WOULD BE A RELIABILITY ISSUE.
SO IN SUMMARY.
WHAT I'M SHOWING YOU HERE IS
THAT I'M NOT JUST FOCUSED WE'RE
NOT JUST FOCUSED ON
REGIONALIZATION THERE IS A SUITE
OF SOLUTIONS THAT'S GOING TO BE
NECESSARY? THIS IS A BIG ENOUGH
SCALE ISSUE THAT WE NEED A
VARIETY OF SOLUTIONS
WHETHER IT BE FOR STORAGE LARGE
SCALE TO BATTERY STORAGE. DEMAND
RESPONSE.
ELECTRIC VEHICLES ACTUALLY
PARTICIPATING IN BACK HELPING
BALANCE THE SYSTEM.
THE RENEWABLE THEMSELVES HAVING
THEM DISPATCH A BOWL AND
PROVIDING RELIABILITY SERVICES
THAT HAVE TRADITIONALLY BEEN
PROVIDED BY THE GAS FLEET.
GETTING THOSE RESOURCE TO
PROVIDE RELIABILITY. WE'VE BEEN
PER WE'VE PROVEN THAT THAT CAN
HAPPEN TECHNOLOGICALLY.
AND THEN LASTLY WE'VE STARTED TO
SEE HOW REGIONALIZATION.
THROUGH AT LEAST INITIALLY THE
ENERGY IMBALANCE MARKET HAS BEEN
SUCCESSFUL IN HELPING US MANAGE
THESE RENEWABLES.
ON THAT DAY WHEN WE HAD OVER
SUPPLY WE ARE ACTUALLY USING THE
ENERGY IMBALANCE MARKET AND WE
WERE SENDING THREE THOUSAND
MEGAWATTS OUT TO OTHER PARTS OF
THE SYSTEM. AND THEN BRING IT
BACK AGAIN THREE HOURS LATER
WHEN WE HAD TO TAKE THAT RAMP.
IT'S AN EFFECTIVE USE OF THE
REGIONAL RESOURCES.
WHAT THE REGIONALIZATION THE
BROADER REGIONALIZATION DOESN'T
MOVE THAT FROM REAL TIME TO NOW
DAY AHEAD AND ALSO POTENTIALLY
PLANNING FOR LONGER TERM
CAPACITY? GETTING THE RIGHT MIX
OF RESOURCES IN THE SYSTEM.
AND THEN LASTLY.
BUT I'LL CLOSE WITH THAT I
THINK THAT'S WERE LIKE THOSE AND
I'M.
HOPEFULLY WE CAN CONTINUE THIS
DISCUSSION ABOUT HOW
REGIONALIZATION.
IS AN EFFECTIVE NOT THE ONLY
SOLUTION BUT AN EFFECTIVE
SOLUTION HELPING US OPERATE THE
GRID IN AND DO IT A COST
EFFECTIVE WAY.
BUT WE APPRECIATE THE.
PRESENTATION THEN VERY THE
CLARITY ON THAT I'M GONNA TURN
TO MEMBERS IF YOU HAVE ANY
QUESTIONS OF THIS PANEL BEFORE
WE MOVE ON TO OUR. NEXT.
THERE ARE NONE PROFESSOR.
SQUARE HARM.
SO I THOUGHT THANK YOU BOTH FOR
YOUR UP PRESENTATIONS.
.
CLEARLY ONE OF THE THINGS THAT
WE COULD BENEFIT FROM BY THE WAY
I NOTICED ON THAT PEAK DAY IF
YOU WANT TO GO BACK TO THAT FOR.
THERE WAS NO WIND.
YEAH GOOD POINT.
THERE OTHER THERE IS NO DARK
GREEN WELL THERE IS.
I CITY THERE'S A SMALL AMOUNT
YEAH HARDLY BEEN THAT'S NOT
THAT'S NOT UNUSUAL ON THE
HOTTEST DAYS AND THE WIND IN
CALIFORNIA.
BECAUSE WELL UPS.
SO.
CLEARLY IF WE'RE GOING WE DON'T
HAVE ANYONE TO OUR WEST SO WE'RE
NOT GOING TO GET SOLAR TO HELP
US WITH THE EVENING PEAK.
WE DO HAVE PEOPLE TO THE EAST.
OUR PARTICULAR IN THE SPRING
THERE'S AM MORNING RAM. THAT
COULD CLEARLY HELP WITH SOLAR.
THERE'S ALSO.
WIND AND.
WYOMING THAT GOES ALL THE TIME
THAT WE NEED MORE TRANSMISSION
FOR THAT HOW DO YOU VISUALIZE
THE IMPORT OF RENEWABLES FROM
OTHER AREAS I'VE MENTIONED A
COUPLE OF POSSIBILITIES PERHAPS
YOU COULD EXPAND ON THAT.
WE MAKE A GOOD POINT THAT FROM A
SOLAR PERSPECTIVE.
.
THAT THE SOLAR TO THE EAST WILL
BE.
BASICALLY ON.
TURN DOWN BEFORE OUR OUR SOLAR.
I THINK FROM A PERSPECTIVE OF
WHEN WE STILL HAVE SOLAR WE MY
BILL WILL BE MEETING BECAUSE WE
HAVE AN ADDITIONAL SUPPLY THAN
WE NEED WE COULD BE SERVING SOME
OF THEIR. LOAD WITH OURS RATHER
THAN CURTAILING THE RENEWABLES.
WE ARE HELP THEM MEET THEIR
EVENING PEAK YES.
FROM A NGUYEN PERSPECTIVE THERE
IS A SIGNIFICANT AMOUNT OF WIND
AND A. NGUYEN THAT DOESN'T.
DIE OFF IN THE HOTTEST DAYS OF
ACTION BLOWS AND AND IN THE
MIDDLE DE ON THE HOTTEST DAYS.
IN WYOMING INTO MEXICO.
I'M DESCRIBING WHAT THE
POSSIBILITIES ARE AND I WANNA BE
CLEAR.
LIFE IS SO DOESN'T
DETERMINE WHAT RESOURCES WE
SHOULD DEVELOP AND PROCURE GOING
FORWARD THAT'S A STATE POLICY
DECISION.
WE ONLY DISPATCH WHAT IS THE
RESOURCES THAT ARE PROVIDED TO
US AND WE BOUNCE A SYSTEM.
SO THE DECISION ABOUT
REGIONALIZATION DOESN'T
DETERMINE. BUT IT DOES PROVIDE
AN OPTION AUDI THAT YOU CAN TO
NOW LOOK AT A BROADER SET OF
RESOURCE OF THE WEST BUT IT
DOESN'T REQUIRE YOU AS A STATE.
TO GO GET THOSE RESOURCES YOU
CAN MAKE THOSE DECISIONS OF THE
STATE.
SO.
WHAT?
RIGHT NOW WE HAVE THE ENERGY
IMBALANCE MARKET WHICH IS
BASICALLY.
BOB YOU'RE MEETING THANKS WHAT
IS SAID IN A FIVE MINUTE.
YES SO WE DISPATCHED ON A FIVE
AND FIFTEEN MINUTE BASIS.
ACROSS NOW ROUGHLY HALF THE
WEST.
YOU KNOW I'M ONE OF THE
SUGGESTIONS WE'RE GOING TO HEAR
FROM A LATER PANEL THAT I BRING
THIS UP IS A QUESTION TO YOU
NOW.
IS COULD WE.
EXPAND BE ENERGY IMBALANCE
MARKET WHICH IS NOW FOR FIVE AND
FIFTEEN MINUTES
TO A LONGER TIME.
TO GET STARTED ON SOME OF THESE
ISSUES ARE BEFORE THE POLITICAL
ISSUES ARE NECESSARILY.
SETTLED IS THAT FEASIBLE OR NOT.
IT'S POTENTIALLY FOR. HIS
POTENTIALLY FEASIBLE.
YEAH.
THAT IT WOULD ENERGY IMBALANCE
MARKET SAY FOR DAY AHEAD.
SO WE ARE INVESTIGATING ACT.
OKAY.
.
THE THE POINT ONE MAKE ON THAT
THAT ANSWER THOUGH IS THAT.
WHILE IT MAYBE ILL GET YOU A
PORTION OF THE BENEFITS THAT
THAT.
REGIONALIZATION WOULD DO WHAT
WOULD COULD COVER.
IT WAS TOUGH TO BE VOLUNTARY.
AND SO.
THE BOUNCING AREAS WOULD HAVE
TO VOLUNTARILY DECIDE THAT THEY
WANT TO PARTICIPATE.
IT MAY NOT PER PROVIDE AS MUCH
TRANSMISSION AND EFFECTIVENESS.
AS. A REGIONAL MARKET WOULD I
SAY AND. DO INVEST IN
TRANSMISSION YOU'RE GONNA NEED
THAT LEVEL OF CERTAINTY.
WELL I THINK THIS NOT EVEN ABOUT
INVESTMENT NEW TRANSMISSION.
HOW THE EXISTING TRANSMISSION?
AND HOW MUCH OF THE EXISTING
TRANSMISSION WOULD BE MADE
AVAILABLE WOULD BE IN QUESTION
HOW MUCH OF THAT WOULD REALLY
COME TO THE BROADER ENERGY
BALANCE MARKET IF WE EXPANDED TO
THE HEAD.
AND THE REASON THAT IS THAT THEY
HAVE BILATERAL ARRANGEMENTS FOR
TRANSMISSION THEY SOLD THAT
TRANSMISSION OFF IN.
HOW THAT TRANSIT BECOMES
AVAILABLE DINGY BELTS MARKER THE
DAY AHEAD?
MAYBE IN QUESTION.
I SEE THANK YOU.
PATTERSON AND THEN DOCTOR
EGGMAN.
A THANK YOU PRESENT EUROPE.
AND YOUR PRESENTATION I WANT ONE
EXPLORA.
THE MARGINS FOR ERROR ON ON
OPERATIONS AND GIVEN THE COUPLE
DIFFERENT SCENARIOS ARE.
SO ESSENTIALLY WE'RE USING. A
VARIATION OF A SPOT MARKET RIGHT
NOW.
WHICH GIVES YOU A VERY SHORT
WINDOW TO GET IT RIGHT.
THAT THIS RIGHT IF YOU DON'T GET
IT RIGHT A SHORT WINDOW.
WE CAN HAVE SOME UPPER
OPERABILITY EN.
OTHER SERIOUS PROBLEMS YET
SO JUST DANCE ACQUITTAL BUT WE
START PLANNING THIS ONE DATE
ADVANCE YES YOU HAVE THAT WHERE
THAT.
ONE TRY TO GET TO IS.
THE DIFFERENCE BETWEEN AND A.
.
AND IMMIGRANT INTEGRATE WESTERN
INTEGRATED SYSTEM AND THE SPOT
MARKET WITH RESPECT TO HOW FAR.
YOU YOU COULD GET IN THE
PLANNING PROCESS I'VE TAKEN A
COUPLE OF TOURS WHAT I REALLY
LIKE IS HOW YOU'RE ABLE.
IN A.
PREVIOUS TWENTY FOUR HOURS WITH
A BUNCH OF AND PUTS IN A LOT OF.
MODELING YOU GET A PRETTY
STRAIGHT. THE NEXT DAY WITH THE
ANTICIPATIONS OF THE ISSUES.
BUT YOU STILL HAVE TO DEAL WITH
US SPOT MARKET TO FIX IT.
IF YOU HAD INTEGRATION AND WE
WERE COOPERATIVE.
WITH THOUGH WESTERN.
WOULD WE BE ABLE TO HAVE.
RELIABLE TWENTY FOUR HOUR
PLANNING THAT WOULD MAKE YOUR
MARGINS OF ERROR. A LATIN LAST
SERB.
AT CREATION OF INDIGESTION YEAH
SO THE SHORT ANSWER IS YES AND I
THINK TO SOMEWHERE IMMENSE
QUIRKS ó PREVIOUS QUESTION.
FIRST OFF REGULATION WOULD GET
YOU A.
MORE COORDINATED DAY AHEAD
MARKET.
FOR AND WITH ALL THE
TRANSMISSION THAT WAS
PARTICIPATING.
BUT ALSO GET YOU NOW A.
COORDINATED RESOURCE
PLAN.
LOOKING OUT A YEAR IN ADVANCE A
MONTH IN ADVANCE. AND YOU CAN
MAKE YOUR LONG TERM PLANNING
DECISIONS IN A COORDINATOR Y.
ABOUT WHAT TRANSMISSION WHAT
RESOURCES.
YOU WANT TO DEVELOP.
KNOWING THAT THE STATE DECISIONS
OUR WHAT RESOURCE ONE DEVELOP
THE CAN DO THAT NOW IN A
COORDINATED WAY. WITH A
TRANSMISSION PLANNING PROCESS
WHERE YOU NEED TO SUPPORT. OR
WHERE TRANSMISSION NEEDS TO BE
DEVELOPED TO SUPPORT THAT PLAN.
U. DO NOT GET THAT YOU NOW WITH
JUST A.
EXPANDING THE ENERGY IMBALANCE
MARKET INTO THE DAY AHEAD THOSE
OF THE LONGER TERM PLANNING
BENEFITS.
SEVEN MAYBE I CAN ADD TO THIS
WHAT MARK SAYING HERE'S WELL
ELECT. MOVE YOUR MICROPHONE A
LITTLE CLOSER YES SIR SORRY BOMB
GOES GOES TO THE FACT WHAT WOULD
WE DO IN THAT DAY AHEAD TIME
FRAME. AND EFFECTIVELY WHAT
WE'RE DOING TODAY IS WE ARE
RUNNING THE DAY AHEAD MARKET AND
IDENTIFYING ALL OF THE RESOURCES
WE NEED. TO RELIABLY SERVE LOW
THE NEXT DAY BUT AS YOU POINT
OUT ONE OF THINGS THAT HAPPENS
IS DOING DAY AHEAD IN REAL TIME
IS WE KNOW THINGS ARE GONNA
CHANGE THE FORECAST COULD BE OFF
WE GET OF A FORCED OUTAGE AND SO
FORTH. I THINK TO ADD ON TO WHAT
MARK IS SAYING IS WHEN YOU THINK
ABOUT HAVING A MUCH LARGER
FOOTPRINT.
SUDDENLY WE HAVE ACCESS TO MANY
MORE RESOURCES A MUCH MORE
DIVERSE MIX OF RESOURCES
TO HELP SET UP THAT DISPATCHED
FOR THE FOLLOWING DAY. AND HIS
MARKS POINTING OUT OF BACK TO
SOME WOMEN QUIRK QUESTION A MUCH
LARGER TRANSMISSION
INFRASTRUCTURE. IN ORDER TO
ACCESS THOSE RESOURCES SO IN THE
END TO YOUR POINT WE END UP WITH
A MORE RELIABLE DISPATCH COMING
OUT OF THE DAY AHEAD JUST
BECAUSE WE HAVE A LARGER FLEET
TO WORK WITH.
AND YOU ALSO GET A MORE
EFFICIENT DISPATCH AND PLAN
BECAUSE YOU CAN TAKE ADVANTAGE
OF THE FACT THAT.
LET'S SAY THE NORTHWEST THEY
PEAK IN THE WINTER WE PEAK IN
THE SUMMER. SO THE FACT THAT
THEY DON'T PICK AT THE SAME TIME
YOU CAN NOW GET A BETTER SHARING
OF THE DAYS DIVERSE RESOURCES
BECAUSE THAT DIVERSITY OF. HOW
THE LOAD?
ATTRACT BUYERS ONE OTHER
QUESTION ABOUT.
THAT THE OVER PROCUREMENT UPS
OF SOME RENEWABLES I THINK IT'S
BASICALLY SO IF I'M.
UNDERSTAND OUR UNDERSTANDING IT
CORRECTLY YOU GOTTA.
PERIOD OF TIME UP THERE WHAT YOU
GOT TO COULD CURTAIL.
IN THAT CURTAILMENT PROCESS HAVE
WE BOUGHT THAT ELECTRICITY
ALREADY.
EFFECTIVE THE U. YOU'VE PAID FOR
THAT CAPACITY YOU PAY FOR
ELECTRICITY THROUGH POWER
PURCHASE AGREEMENTS REDWOOD SO
SO WE.
WE WE PAY FOR THAT YES.
IS IT IS I MEAN IS IT POSSIBLE
IN IN IN IN A WESTERN INTEGRATED
CIRCUMSTANCE WHERE. A I GUESS
INSTEAD OF CURTAILING AYE AYE
AND WHAT WE DO WITH IT IF I GET
IT TO GET RID OF IT. CANNOT BE
SENT TO THE REST OF THE YES
REGION AND COULD IT BE. THAT
POSSIBLY PRICED AT A WAY THAT IF
WE DIDN'T GET.
ALL OF THEM.
MONEY BACK THAT WE SPENT A BIKE
THAT WE WOULD GET SOMETHING BACK
YES.
YOU ARE WHAT YOU WOULD DO IS YOU
MAY BE YOU MAY BE SELLING IT OFF
AT A LOWER COST BUT.
YOU GET TO BENEFITS ONE IS YOU
MAY BE DISPLACING OTHER
RESOURCES HIGHER COSTS RESOURCES
THROUGHOUT THE WEST.
YOU MAY BE ABLE STORE THAT
ENERGY.
IN THE HYDRO SYSTEM IN THE
NORTHWEST.
AT WHICH POINT THAT ENERGY WILL
COME BACK TO YOU WHEN YOU NEED
IT FOR THE. ANOTHER PERIOD OF
TIME SO YOU FACTUALLY CAN USE
THE REST WESTERN GRID AND THE
RESOURCE IN THE WESTERN BRED TO
STORE THAT ENERGY.
THE SYSTEM IS A STORAGE DEVICE
ITSELF I'VE HEARD FROM SOME OF
THEM.
MANUFACTURERS IN CALIFORNIA
PEOPLE WHO ARE SPENDING QUITE A
BIT OF MONEY ON THEIR
ELECTRICITY.
THEY'RE BASICALLY ASKING MAY
WELL IF WE HAVE ALREADY PRE
PURCHASED A SIMILAR TRICITY THAT
WE CAN'T USE. OF WHY CAN'T OUR
CALIFORNIA MANUFACTURERS IN OUR
CALIFORNIA. RATE PAYERS TAP INTO
THIS DISCOUNTED.
EXTRA AVAILABLE. ELECTRICITY I
WOULD THINK THAT WOULD BE
SOMETHING VERY INTERESTING SO I
DON'T WANNA.
I DON'T THINK I WANT TO
NECESSARILY GIVEAWAY THAT
OPTION.
AND AND AND.
BUT I'D ACTUALLY LIKE TO
ENCOURAGE THAT OPTIONS SO THAT.
YOU KNOW FOLKS WELL ACTUALLY
PLAN ON ELECTRICITY.
WRITING THAT'S THAT'S MUCH MORE
STABLE AND AND AND AND LESS SO
WHAT YOU JUST DESCRIBED IS ONE
OF THE BENEFITS OF HAVING A
MARKET WITH MARKET PRICES.
BECAUSE IN THAT MIDDLE THE DAY.
WE ARE SETTING PRICES
POTENTIALLY LOW ZERO DOLLARS OR
MAYBE EVEN EIGHT DOLLARS.
IF YOU WERE ABLE TO TAKE THOSE
PRICES PLANS HAVE IT TRANSLATED
WE'RE PAYING PEOPLE TO TAKE IT
YES.
IF YOU WERE TO PASS OUT THROUGH
THROUGH A RETAIL RATE STRUCTURE
THAT RECOGNIZE THAT.
THROUGH THE TIME OF USES OR
DYNAMIC PRICING.
YOU COULD ACTUALLY INCENTIVIZE.
LOADS TO INCREASE AND USE THAT
ENERGY.
THAT'S REALLY POWERFUL AS YOU
WANT TO LEVERAGE THE ELECTRIC
GRID TO DE CARBONIZED OTHER
PARTS OTHER SECTORS
WHAT CAN YOU DO THAT. CHARGED
BATTERIES FOR ELECTRIC VEHICLES
AT THAT TIME.
THIS IS WHERE THE POWER OF THE.
D. CARBONIZED ELECTRIC GRID THEN
TRANSPIRES INTO THE CAR NOTHING
OTHER PARTS OF THE SECTORS I
DOUBT I ACTUALLY THINK THAT.
REGIONALIZATION IS GOING TO BE
A CALIFORNIA WANTS TO BE A
LEGACY LEADER IN ALL OF THIS AND
I ACTUALLY THINK IF WE REGIONAL
EYES THERE'S. AND I I WANNA HEAR
THE OPPOSITION AND OTHERS WHO
HAVE SOME CONCERNS ABOUT THIS
BUT IT WOULD SEEM TO ME. THAT
THE THAT IF WE HAD THIS.
REGIONAL A REVITALIZED A FULLY
INTEGRATED MARKET. THAT MARKET
FORCES BECAUSE CALIFORNIA. IS
SUCH A BROAD LARGE.
USER THAT OUR PREFERENCES MIGHT
VERY WELL.
ENGAGE AN INCENTIVE FIVE THE
OTHER UP PARTICIPANTS.
.
TWO UP.
PROCURING CERTAIN WAYS BECAUSE
THE MARKET IN CALIFORNIA WOULD
BE VERY MUCH INTERESTED IN IT AS
WELL. IS THAT. A WAY WE CAN SHIP
OUR.
ENERGY LEGACY EAST.
YO YOU WHAT YOU GET IS THEN THE
BENEFIT OF.
SHARE OUR RESOURCES AND SHARE
OUR CLEAN RESOURCES YOU CAN
ACTUALLY HELP DE CARBONIZED
OTHER SECTORS OF THE WEST.
AND JUST TO ILLUSTRATE THAT
POINT.
.
THREE TWO THOUSAND FOURTEEN AND
AND.
TWO THOUSAND SEVENTEEN.
WE REDUCE CARBON REDUCTION FROM
THE AYE ESOS DISPATCH BY TWENTY
THREE PERCENT.
NOW I'M NOT SAYING THAT THAT'S
BECAUSE OF ENERGY IMBALANCE
MARKET SOLELY I MEAN IT'S
OBVIOUSLY BECAUSE. WE WERE
INTEGRATING MORE RENEWABLES AND.
FOR A LOOK AT PACIFIC CORE.
PARTICIPATING IN JIM BOUNCE
MARKET.
FROM THE TIME THAT THEY STARTED
THE ENERGY AMOUNTS MARKET. THERE
WERE.
GHG REDUCTION WENT EL WAS ABOUT
FOURTEEN PERCENT OVER THE SAME
PERIOD TIME.
I THINK THAT ILLUSTRATES HOW.
HAVING A COORDINATED MARKET
WOULD ALLOW US TO HELP DE
CARBONIZED AND MAKE BETTER USE
OF ALL THE RESOURCES IN THE
WEST.
AND HELP DE CARBONIZED THE WEST.
SEEM TO ME THAT WOULD ALSO BE
PRESSURES ON ON PRICES IS WELL
TOMORROW BLOOM LANDING WE'RE
GONNA GET IT FOR LESS PRICES AND
YET THEY'RE NOT GETTING A BIT
NAM THEY'RE NOT GETTING IT JUST
BECAUSE IT'S CLEAN RESOURCES
GETTING BECAUSE ECONOMIC ENERGY.
AND. I WE CAN BE. A CALL
RESOURCE WITH OUR CLEAN ENERGY
BECAUSE MARGINAL COST ZERO.
THEY HAVE A HIGHER MARGINAL COST
WE HAVE A FEW COST WE CAN BEAT
THAT CAN.
THANK YOU VERY MUCH APPRECIATE
THE PRESENTATIONS CHAIRMAN THANK
YOU.
DOCTOR EGGMAN.
YEAH ALSO THANK YOU VERY MUCH
FOR THAT FOR THE.
REPRESENTATION.
.
AND I I MEAN DISTRESSING TO HAVE
THIS CONVERSATION AND I'VE BEEN
A CONSCIOUS WITHOUT LEGISLATOR
FROM. SOME OF THESE MARTA
EASTERN STATES AND.
THEY TALK A LOT ABOUT CARTMAN.
VERY LITTLE ABOUT THAT OTHER
THING SO IT'S GONNA BE
INTERESTING AS WE GO FORWARD.
ARM. IN AND BECAUSE THEY'RE VERY
PROTECTIVE OF THEIR THEIR JOBS
AND JOB MARKET AND AND
TRADITIONAL ECONOMY IF YOU WILL.
UP SO AS WE CONTINUE TO MOVE TO
WITH OUR.
NO CREATE CREATE MARKETS AND
VALUES THAT REFLECT OUR GOALS
AND OUR VALUES.
WE EXPAND THAT PIE TO MORE
REGIONAL WAY.
I'M JUST WONDERING YOUR YOUR
IMPRESSION OF THE IMPACT THEN ON
OUR ON OUR OUR JOB ECONOMY.
IN CALIFORNIA AS WE CONTINUE TO
EXPAND OTHER STATES RIGHT WOULD
MAKE THINGS MORE AFFORDABLE.
WHAT THEN DOES THAT DO? FOR OUR
LOCAL.
JOB ECONOMY AS IT RELATES TO.
ALTERNATE ENERGY YEAH I'LL TAKE
THIS ONE.
IS A EXCELLENT QUESTION AND ONE
THAT WAS TEED UP IN S. B. THREE
FIFTY AND SO IN THE ANALYSIS
THAT WE DID. WHAT WE FOUND IS
PART OF WHAT'S COMING OUT OF
THIS OVERALL ECONOMIC BENEFIT OF
HAVING A REGIONAL MARKET?
IS LOWER ENERGY PRICES FOR
CALIFORNIA CONSUMER.
AND WOULD THAT THEN DOES IS
CREATES AN ECONOMIC ENGINE TO
CREATE ADDITIONAL JOBS.
ONE OF THE OTHER THINGS WE FOUND
ANOTHER SECTORS INTO IT WELL
IT'S SPREAD ACROSS DIFFERENT
SECTORS AND FAIR ENOUGH IT DOES
AFFECT DIFFERENT SECTORS IN
DIFFERENT WAYS. RIGHT WITH THE
OVERALL NET BENEFIT OF HAVING
THE REGIONAL IS AN INCREASE IN
JOBS FOR CALIFORNIA IN ITS FAIR
ENOUGH TO SAY THAT AFFECTS
DIFFERENT SECTORS.
ONE OTHER INTERESTING THINGS
ABOUT IT IS HAVING THAT LOWER
COST FOR ENERGY ACTUALLY HAD THE
INCREASE BENEFIT TO
DISADVANTAGED COMMUNITIES.
BECAUSE THEIR ENERGY BILLS SUCH
A LARGE PORTION OF THEIR TOTAL
INCOME REDUCING THAT COST TO
THEM HAD A MUCH BIGGER BENEFIT
TO THEM IT WAS AT LEAST A TEN
PERCENT BIGGER VALUE. IN TERMS
OF WHAT IT DID FOR THEM AND
CREATING MORE VALUE AND WORTH TO
THEM.
SO I THINK WHAT WE DID IN THAT
ANNOUNCES DEFYING THAT YES THERE
IS AFFECT ON JOBS IN DIFFERENT
SECTORS BUT OVERALL THERE'S A
NET INCREASE IN JOBS ACROSS THE
ACROSS THE STATE.
THEY WATCH.
.
BECAUSE RISK.
THANK YOU SO MUCH.
AT THE END OF YOUR PRESENTATION
INITIALLY YOU INDICATED THAT.
REGIONALIZATION IS AN EFFECTIVE
SOLUTION.
IT'S NOT THE ONLY SOLUTION.
WHAT OTHER SOLUTIONS ARE THERE?
WELL I THINK GOING BACK TO THIS.
.
THE SAID TABLE.
EVERYTHING I DON'T I SAY IT'S
NOT THE ONLY SOLUTION BECAUSE I
THINK THE.
I CHALLENGES GREATER THAN ANY
ONE SOLUTION.
PROVIDES THE BENEFIT FOR SO IN
OTHER WORDS.
IF I'VE A THIRTEEN THOUSAND
MEGAWATT JUST BENEATH CHO HAVE A
FOURTEEN THOUSAND A WHAT RAMPING
PROBLEM.
I MAY BE ABLE SOLVE A PORTION OF
THAT THROUGH REGIONALIZATION.
BUT MAYBE I CAN SOLVE THE OTHER
PORTION WITH.
THREE THOUSAND MEGAWATTS OF
STORAGE DEVICES.
MAYBE FIVE MILLION ELECTRIC
VEHICLES WHICH TRANSLATES INTO
ABOUT THREE THOUSAND MEGAWATTS
OF ADDITIONAL STORAGE MAYBE THAT
CAN HELP PROVIDE SOME OF THE.
SOLUTION.
BUT WE HAVE TO DO SMART
CHARGING.
WITH THAT THAT THE RATES IN
STRUCTURE.
SUPPORT THAT.
.
TIME OF USE RATES IF WE CAN GET
THE MAN IN CALIFORNIA AND
ELSEWHERE ACROSS THE WEST TO
ACTUALLY BE RESPONSIVE TO THE
PRICES IN THE SYSTEM CONDITIONS.
YOU COULD ACTUALLY HAVE TIMES
WHERE WE WANT TO HAVE THEM
REDUCE LOW DURING THAT EVENING
RAMP.
OTHER TIMES WHEN WE HAVE TOO
MUCH SUPPLY THAT'S WHEN WE
SHOULD ACTUALLY BE RAMPING UP
THEIR LOAD INCREASING THEIR
PRODUCTION. OF WIDGETS OR
WHATEVER THEY'RE MAKING
MANUFACTURING AT THAT TIME A
VERY LOW COST.
OF ENERGY.
WE NEED TO HAVE THE RENEWABLES
THEMSELVES.
I KNOW THE RENEWABLE GOAL IS IN
TERMS OF RENEWABLE PORTFOLIO
STANDARD RENEWABLE ENERGY THAT'S
THE MEASURE.
BUT WE ACTUALLY HAVE TO HAVE THE
RENEWABLES NOW STEP BACK AND SAY
THERE'S TIMES WHERE WE DON'T
WANT HIM TO PRODUCE ENERGY. WE
ACTUALLY WANT HIM TO HOLD BACK
SO WE CAN GET SOME OF THE
ESSENTIAL RELIABILITY SERVICES.
SO WE DON'T HAVE TO RELY AS MUCH
ON THE GAS RESOURCES FOR THOSE
ESSENTIAL RELIABILITY SERVICES.
AND THAT WOULD BE A HELP PART OF
THE SOLUTION.
SO THOSE OF THE OTHER SUITE OF
SOLUTIONS AND I I GOT A POINT.
CALIFORNIA IS INCREDIBLY
INNOVATIVE.
THERE ARE A LOT OF INNOVATIVE
SOLUTIONS I'VE SEEN AND HEARD.
THIS IS THE BEST PLACE YOU CAN
HAVE TO DEVELOP THOSE INNOVATIVE
SOLUTIONS WE LOOK FORWARD TO
DIVERT HELPING DEVELOP THOSE AND
SHOW HOW THAT THAT THIS CAN BE
DONE. NOT JUST FOR CALIFORNIA
BUT SHOW HOW CAN BE DONE FOR THE
WEST.
IN A I THINK I'LL JUST ADD TO
THAT BY SAYING IF YOU GO BACK TO
ONE OF MARC SLIDES WERE TALKED
ABOUT HOW THE NGUYEN DISAPPEARED
AS SOME IN THE COURT POINTED
OUT.
WHEN THINGS YOU SEE ABOUT
LOOKING AT THIS WE TO SOLUTIONS
IS THEN THE DIVERSIFICATION. OF
THE RESOURCES THAT WERE RELYING
ON SO IT'S NOT JUST WIND AND
SOLAR IT'S ACTUALLY RELYING ON
THESE THINGS AS OTHER WAYS TO
BALANCE LOW TO RESOURCES.
BY THE WAY WE TALK ABOUT
DIVERSITY WERE TALKING ABOUT
TECHNOLOGICAL DIVERSITY AND
GEOGRAPHICAL DIVERSITY SO IT
MATTERS WHERE THE RESOURCES ARE
AT. FOR EXAMPLE THE WIND IN
WYOMING OR NEW MEXICO.
IT ACTION MATTERS WHAT TYPE OF
TECHNOLOGY SOME OF THE SHOULD BE
GEOTHERMAL SOME OF THE SHOULD
BE.
WIN SOME OF US SHOULD BE SOLAR.
THE DIVERSITY RESOURCES WILL
HELP FILL IN THAT SHAPE OF LOAD.
IF IT'S ALL ONE RESOURCE YOU'LL
JUST GET THE MIDDLE OF THE DAY.
LOAD COVERED IN FACT HOPE TO
MUCH SUPPLY AND USE YOU'LL MISS
THE PERIODS OF TIME WHEN THE SUN
GOES DOWN.
IN THE END IT.
IN A REGIONAL REGIONAL LIES GRID
AS ENERGY IS SHARED. OR THE
POSSIBILITIES AND LIMITS
REGARDING TRACKING THE
DISPATCHED ENERGY.
I MF SUMMER EXAMPLE CALIFORNIA
HAS A HIGHER STANDARD.
THING UTAH. CLEARLY.
BUT BEFORE SHARING THE
DISPATCHED ENERGY CAN WE SURE
THAT WHAT WE'RE USING.
COME THROUGH ZERO OR LIMITED THE
MISSION SOURCE.
REGIONALIZATION AND HAVING THE
VISIBILITY INTO THE SPECIFIC
RESOURCES PROVIDES A PATHWAY FOR
BEING ABLE TO DO THAT.
MORE THAN THE EXISTING METHOD
DOES AND THE REASON IS BECAUSE
WHEN I TELL YOU WHEN I TELL YOU
THERE'S.
TEN THOUSAND MEGAWATTS OF
IMPORTS
A LARGE PORTION OF THOSE IMPORTS
ARE UNSPECIFIED RESOURCES.
I DON'T KNOW TODAY WHAT IS
BEHIND THEM.
IT MAY BE HYDRO IN MAY BE.
GAS.
I DON'T KNOW WELL BEHIND THEM IT
MAY BE COOL.
UNDER REGIONALIZATION WE WOULD
PUT IN A TRACKING SYSTEM THAT
WOULD BE MORE RESOURCE SPECIFIC
BASED.
THAT WOULD ALLOW US TO DETERMINE
SIMILAR TO THE WAY WE DO AND
ENERGY IMBALANCE MARKET AND ALL
ADMIT THEN YOU BOUNCE MARKET WAS
A LEARNING. OPPORTUNITY THERE
SOME ENHANCEMENTS THAT WE NEED
TO CONTINUE TO DO. BUT IT
PROVIDES A PATHWAY FOR TRACKING.
RESOURCE. DELIVERIES TO SERVE
LOAN CALIFORNIA AND THAT ALLOWS
US TO TRACK WHAT IS SERVING OUR
LOW.
BUT AGAIN ALL AT FROM A
FUNDAMENTAL STANDPOINT WHAT
HAPPENS WITH THE MULTI STATE I
SO IS NOW WE ARE OPERATING EVERY
GENERATOR AND WE KNOW WHAT EVERY
GENERATOR IS DOING WITHIN THAT
FOOTPRINT. WHEN WE LOOK AT TO
HOW E. I. M. IS STRUCTURED THE
AYE AMENITIES HAVE AN OPTION TO
ELECT. WHICH RESOURCES THEY WANT
TO PARTICIPATE IN THAT MARKET.
AND SO HAD A VERY SIMPLE WAY TO
ANSWER QUESTION YOU GET. ALMOST
A HUNDRED PERCENT TRANSPARENCY
IN KNOWING EXACTLY WHAT
GENERATORS ARE RUNNING BECAUSE
NOW THE SYSTEM OPERATOR SEES
WHAT EACH UNIT IS DOING.
I JUST WANT TO ADD THAT THIS IS
THIS QUESTION IS LIKE.
COMPLEX SOLUTION.
BECAUSE.
WHY WE TRACKED THE GHG CONTENT
TO SERVE CALIFORNIA LOAD? I ALSO
HAVE TO BE RESPECTFUL OF THAT
THE OTHER STATES ARE NOT
TRACKING THAT OR MAY NOT HAVE
THE SAME FROM THEIR PERSPECTIVE
I HAVE
TO MAKING SURE THAT.
THERE LOW AND THERE OUGHT TO
THEIR GENERATION IT'S SERVING
THEIR LOAD. IS NOT.
FACTORING IN THE JEEP SHE
CONTENT BUT THE CALIFORNIA LOAD.
AND HOW WE SERVE THAT IS
FACTORING THE JEEP SHE CONTENT
THAT MAKES A LITTLE BIT MORE
COMPLEX AND MAKES A LITTLE MORE
A CHALLENGING TO SOLVE. BUT I
WILL SAY THE RELATION BECAUSE
YOU'RE DOING RESOURCE PACIFIC IT
ALLOWS FOR BETTER TRACKING
METHOD.
TO SERVE CALIFORNIA.
AND FINALLY THERE WERE TWO
COMMENTS YOU MADE AND I THINK
LOOKING FORWARD TO SEEING MORE
OF THAT TURNED. HEARING MORE
PROOF OF THAT.
YOU BY REGIONALIZATION USE THAT
CALIFORNIA CAN DE CARBONIZED
OTHER AREAS OF THE WEST.
I HOPE AND OTHER SECTORS.
YES AND THE OTHER THAT WE CAN BE
CARBONIZED ENERGY PRICES THOSE
ARE TWO STATEMENTS ARE MADE AND.
IMPORTANT STATEMENTS MIGHT LOOK
FORWARD TO HEARING AND SEEING
MORE OF THAT
BEFORE THE SHOW.
THANK YOU SIR IS HERE MISTER
CHAIR THANK YOU RENEWABLE
PORTFOLIO DIVERSITY IS ONE OF
THE UP BOXES YOU HAVE THERE IN
ADDITION TO THAT IS.
FLEXIBLE RESOURCES AND.
TO BE BY NO SURPRISE OR NO.
SECRET THAT MY INTERESTS IS TO
SEE. A THESE TYPES OF FLEXIBLE
RESOURCES AS YOU MENTIONED.
SPREAD OUT.
THE DIFFERENT GEOGRAPHIC AREAS.
AND QUITE FRANKLY LOOKING AT IT
FROM PERSPECTIVE BEFORE WE EVEN
GO OUTSIDE OF THE STATE.
WHAT ARE WE DOING TO MAXIMIZE
THE OPPORTUNITIES WITH IN
CALIFORNIA AND I REPRESENT AN
AREA WITH A SIGNIFICANT AMOUNT
OF FLEXIBLE RESOURCES?
OUT IN THE SONGS HE AREA.
THAT OF DEBATE AND DISCUSSION
FOR SEVERAL YEARS NOW. HAS BEEN
HOW DO WE INTEGRATE.
THAT RENEWABLE ENERGY AT TO
THIS PORTFOLIO A DIVERSITY THAT
WE'RE TALKING ABOUT CAN YOU
MAYBE ELABORATE A BIT. ON THAT
IF A FLEXIBLE RESOURCES.
YOU ARE LOOKING AT THESE TYPES
OF RENEWAL THOUSAND DIFFERENT
GEOGRAPHIC AREAS SO ABSOLUTELY
AND IN FACT.
WE WORK FOR THE CALIFORNIA
PUBLIC UTILITIES XIN TO. ENHANCE
WHAT'S CALLED A RESOURCE
ADEQUACY PROGRAM TO SUE
EXPLICITLY RECOGNIZE THE NEED
FOR FLEXIBLE RESOURCES IF NOT
JUST A MATTER OF BASE LOAD
RESOURCES.
AND I THINK THAT IN PART MOVES
THE INCENTIVE FOR. A FLEXIBLE
RESOURCES TO EITHER DEVELOP OR
BECOME MORE FLEXIBLE AS A RESULT
OF THAT I KNOW SOME OF THE EVEN
GAS RESOURCES HAVE BEEN.
MADE.
MODIFICATIONS TO MAKE THEM MORE
FLEXIBLE
WE'VE SHOWN HOW GEOTHERMAL CAN
ACTUALLY BE A FLEXIBLE RESOURCE
AND NOT BE A BASELOAD RESOURCE
AND THAT PROVIDES US TO MAKE
MORE ROOM ACTUALLY HELP
DISPATCH.
IN THE MIDDLE DAY IT CAN BE DONE
IN MAY BE SLIGHTLY MORE
EXPENSIVE THAT WE HAVE THE
RESOURCES TO DO WE HAVE THE
CAPABILITY.
CAN CAN YOU TALK A LITTLE BIT
ABOUT THE OTHER.
.
RENEWAL PULLED THAT IS SOMEWHAT
CONTROVERSIAL BEING THAT.
YOU KNOW BY MAIL JUSTICE
COMMUNITIES FEEL THAT THEY ARE
IMPACTED BUT BIOMASS.
AND THE ROLE THAT THE IN A
DIVERSIFIED PORTFOLIO. TIES YOU
REFER TO A MAY PLAY.
.
I I THINK THAT I THINK AND A
DIVERSE SUPPORT PORTFOLIO AND A.
WHO ALSO A IN CONJUNCTION WITH
IT A?
INTEGRATED RESOURCE PLAN
PROVIDES THE OPPORTUNITY TO MAKE
DECISIONS ABOUT WHERE. AND WHAT
TYPES OF RESOURCES YOU PLACE IN
THE SYSTEM AND I THINK THAT AT
THAT POINT. SHOULD AND I THINK
COULD CONSIDER A DISADVANTAGED
COMMUNITY ENVIRONMENTAL JUSTICE
CONSIDERATIONS.
AND I THING THE OTHER PARTY
KWACHA'S AS WE.
LOOK AT THE EXISTING GAS
RESOURCES AND WHAT THOSE
RESOURCES ARE DOING IN TERMS OF.
DISADVANTAGED COMMUNITIES
THERE'S OPPORTUNITY TO.
.
POTENTIALLY REDUCE THE IMPACTS
OF DISADVANTAGED COMMUNITIES
THROUGH REGIONALIZATION WHICH
SHOWED UP THROUGH THE SP THREE
FIFTY STUDY WORK.
OKAY THANK YOU.
JUST TO FOLLOW UP ON THAT
QUESTION AS WE TALK ABOUT THINGS
LIKE BIOMASS AND THINGS ARE MORE
EXPENSIVE AND HAVE SOME OF THE
CONSEQUENCES BUT THEY ALSO HELP
ADDRESS SOME OF OUR. AGAIN OTHER
LARGE STATE ISSUES IN GOALS
WILDFLOWERS IT DEVOLVE ISAAC
THEY'RE CLEANING UP OUR OUR OUR
FORESTS THAT WE DON'T DO A VERY
GOOD JOB WITH WHAT OUR
AGRICULTURE ECONOMY THAT
CONTINUES TO HAVE. CUT TREES AND
EVERYTHING HOW DO WE BALANCE
THOSE THINGS WE'VE GOT.
WE'VE GOT A LOT OF STOCK WE HAVE
A LOT OF FUEL THAT WE NEED TO
GET RID OF IN ORDER TO MAINTAIN
OUR CLEAN AIR BIG MASSIVE FIRE.
CAN BLOW ALL OF OUR OUR OTHER
GOALS.
A AND IF WE CONTINUE TO JUST
LOOK FOR AGAIN THINGS THAT ARE
MORE LESS EXPENSIVE FROM OTHER
PLACES AND THEN. AGAIN WHAT DOES
THAT DO HOW DO WE BALANCE ALL
WERE CALIFORNIA GOALS.
OR HOW ARE OUR CALVET EAGLES
BALANCED IN A REGULATION
APPROACH.
YEAH OF I THINK I THINK YOU'VE
HEARD BOTH OF US SAY IT'S A
REALLY IMPORTANT POINT HERE THAT
HAVING A REGIONAL ISO DOESN'T IN
ANY WAY IMPINGE UPON STATE
POLICY TO DO PROCUREMENT.
SO TO THE EXTENT IT'S IN
CALIFORNIA'S INTEREST TO BUILD
MORE BIOMASS IN ORDER TO CARE
FOR DYING FORCE AND SO FORTH.
IT'S CERTAINLY WITHIN
CALIFORNIA'S AUTHORITY TO DO
THAT
AND AS MARK DESCRIBE WHAT WE'RE
DOING AND WHAT WE'RE SHOWING
HERE IN A LOT OF THE SLICE IS
JUST THE CHALLENGE WE HAVE IN
DISPATCHING.
SO I THINK I THINK ASSEMBLYMAN
GARCIA'S QUESTION AROUND
FLEXIBLE RESOURCES IS REALLY THE
BEST AND EASIEST WAY TO ANSWER
YOUR QUESTION. WE GO BACK TO THE
FUNDAMENTAL SET OF RESOURCES
THAT.
YOU CAN THINK ABOUT GOING
FORWARD IS ALWAYS REMEMBER WE'RE
GONNA NEED MORE FLEXIBILITY.
AND SO WHEN MARKET SHOWN SOME OF
THOSE GRAPHS WHERE THOSE BOTTOM
AREAS ARE BASICALLY FLAT.
LIKE THE CONVENTIONAL GEOTHERMAL
FLEET WE HAVE TODAY THAT'S NOT
NECESSARILY GOING TO BE HELPFUL
WE'RE LOOKING FOR IS NEW
TECHNOLOGIES LIKE FLEXIBLE
GEOTHERMAL RESOURCES THAT CAN
ALLOW YOU TO RAMP UP AND DOWN.
AND SO THE BUILDING OUT OF
BIOMASS FACILITIES NEEDS TO TRY
TO AVOID BEING A CONVENTIONAL
SORT OF BASELINE TYPE OF
OPERATION AND ALLOW FOR
DISABILITY TO MOVE UP AND DOWN
IN THE COURSE OF THE DAY. AS WE
BUILD THAT CONCEPT INTO THOSE
PROCUREMENT POLICIES THEN YOU'VE
GOT SOMETHING THAT ACTUALLY IS
SUPPORTIVE FOR GREAT OPERATIONS.
THANK YOU AND I THINK WHAT I'M
ALSO INTERPRETING FROM WHAT
YOU'RE SAYING IS THAT YOU WOULD
NEED SOME ADDITIONAL DIRECTION
ON POLICY WHERE WE CAN MAYBE PUT
MORE FOCUS ON. GEOTHERMAL AND
HOW WE WOULD LIKE TO SEE IT
INTEGRATED AND YOUR.
RESPONSIBILITY THAT POINT WOULD
BE TO DISPATCH IT.
YEAH AND THAT'S WHERE I WAS
SAYING MISTER CHAIRMAN SORT OF
MY OPENING REMARKS HIS.*
WHAT WE WANT TO DO IS BE HELPFUL
TO YOU IN TERMS OF PROVIDING
THIS KIND OF INFORMATION TO HELP
GUIDE THAT SO YOU CAN SEE WHAT'S
THE WORDS THE VALUE PROPOSITION.
AS YOU START THINKING ABOUT
WHAT'S THE A NEXT SET OF
RESOURCES TRY MAKE SURE THOSE
RESOURCES ARE ALIGNED WITH HOW
THE SYSTEM LOOKS LIKE IT'S GOING
TO BE OPERATING AND THE BILL GET
THE BEST VALUE OUT OF THAT
RESOURCE. THANK YOU WE
APPRECIATE YOUR PRESENTATION
VERY THOUGHTFUL AND VERY.
WELL COVERED AND WE LOOK
FORWARD TO HAVING STICK AROUND
JUST IN CASE OR ANY QUESTIONS
THAT MIGHT.
COME UP DURING THE COURSE OF THE
REST OF THIS HEARING NEVADA BUT
IF I COULD I'D LIKE TO CALL THE
SECOND PANEL FORWARD THIS IS ON
THE PERSPECTIVES ON
REGIONALIZATION AND AND ABA
THIRTEEN.
LORE WHISTLIN.
SENIOR ENERGY ANALYSTS UNION OF
CONCERNED SCIENTISTS.
JANTZ MONEY JONES CHIEF
EXECUTIVE OFFICER INDEPENDENT
ENERGY PRODUCERS ASSOCIATION.
MATTHEW FRIEDMAN STAFF ATTORNEY
UTILITY REFORM NETWORK.
TONI BRAUN COUNCIL TO SEE A
CALIFORNIA MUNICIPAL UTILITIES
ASSOCIATION ROM POLICING SMITH
AND. WE WELCOME ALL OF YOU.
AND I GUESS WE CAN MAYBE PRESENT
IN THE ORDER THAT
YOUR NAME IS CULTURE AGO FIRST.
SO GOOD AFTERNOON THANK YOU SO
MUCH CHAIR HOLDING MEMBERS OF
THE COMMITTEE FOR THE
OPPORTUNITY TO SPEAK TODAY I'M
OR WHISTLING WITH THE UNION OF
CONCERNED SCIENTISTS.
AND I WANT TO FRAME MY COMMENTS
BY SAYING YOU SEE YES IS
COMMITTED TO DEVELOPING POLICIES
IN CALIFORNIA THAT ARE GONNA
MEANINGFULLY REDUCE GREENHOUSE
GAS EMISSIONS AND TOXIC AIR
POLLUTION. ASSOCIATE WITH THE
POWER SECTOR.
AND DOING IT IN A WAY THIS HAS A
POSITIVE EXAMPLE FOR STATES AND
OTHER COUNTRIES TO FOLLOW. SO IN
MY MIND THIS MEANS MAKING SURE
THAT THE CLEAN ENERGY TRANSITION
THE CLEAN ENERGY TRANSITION.
HAPPENS IN A WAY THAT DOESN'T
SACRIFICE GRID RELIABILITY AND
THAT KEEPS COSTS LOW.
I'M HERE TODAY TALKING ABOUT THE
IMPORTANCE OF A REGIONAL ENERGY
MARKET. DESPITE ITS COMPLEXITY
BECAUSE UCS BELIEVES THAT IT IS
A VERY MEANINGFUL TOOL FOR
INTEGRATING MUCH LARGER
QUANTITIES OF RENEWABLES.
BEYOND WHAT WE'RE CURRENTLY
PLANNING FOR AND WHAT WE BELIEVE
WERE ULTIMATELY NEED TO PROCURE
IN ORDER TO MAKE A MEANINGFUL
THEN ON CLIMATE CHANGE.
THE BOTTOM LINE IS THAT IF WE
WANT TO GO FASTER AND FARTHER ON
RENEWABLES WE NEED TO SERIOUSLY
CONSIDER THE BENEFITS THAT A
REGIONAL MARKET PROVIDES.
AS I SO MENTIONED THE MOST
IMPORTANT THING WE CAN DO TO
INTEGRATE LARGE QUANTITIES OF
RENEWABLES IS TO INCREASE
FLEXIBILITY OF THE SYSTEM. AND
CREATE MORE OPPORTUNITIES FOR
GRID OPERATORS TO SHIFT
RESOURCES AROUND TO MEET THE
CHANGING NEEDS OF THE GREG.
SO THE I SAW MENTION THIS BUT I
JUST WANT TO STRESS THAT.
THERE ARE SEVERAL DIFFERENT
STRATEGIES WERE GONNA NEED TO
DEPLOY TO GET TO LARGE
QUANTITIES OF RENEWABLES ON THE
GRADE AND TO GET TO A LOW CARBON
OR ZERO CARBON ELECTRICITY
FUTURE. A WESTERN GRADE IS NOT A
SILVER BULLET AND SHOULD NOT
DETRACT IN ANY WAY FROM THE VERY
IMPORTANT EFFORTS OUR STATE IS
UNDERTAKING TO DO THINGS LIKE.
BUILD MORE ENERGY STORAGE AND
LOCAL DISTRIBUTED ENERGY
RESOURCES TO REDUCE CONGESTION
TO MAKE THE GRID MORE RESILIENT.
TO REDUCE THE NEED TO RELY ON
NATURAL GAS SPEAKER PLANTS
ESPECIALLY ONES AND
DISADVANTAGED COMMUNITIES.
ALSO THINGS LIKE SHIFTING MORE
ELECTRICITY DEMAND TOWARDS TIME
WHEN RENEWABLES ARE MOST
ABUNDANT OR TARGET ENERGY
EFFICIENCY TO THE EVENING HOURS
WHICH WILL HELP REDUCE THE NEED
TO SUDDENLY RAMP UP ANOTHER
RESOURCE WHEN WE LOSE OUR SOLAR.
GENERATION.
BUT IT WERE TRULY COMMITTED TO
RAMPING UP RENEWABLES IN A MAJOR
WAY WE NEED TO ALSO EXPAND THE
CAPABILITIES OF GRID OPERATORS
TO SHARE GENERATION AND
TRANSMISSION RESOURCES
THROUGHOUT A WIDER FOOTPRINT.
THE BIGGEST BENEFITS IN MY MIND
EVER REGIONAL GRADE TO
CALIFORNIA REPAIRS AND THE
ENVIRONMENT ARE NUMBER ONE A
REGIONAL GRADE MAKES IT EASIER
TO ACCESS LESS FLEXIBLE
GENERATION FROM A LARGER POOL OF
RESOURCES. WHICH IS ESSENTIAL TO
BRINGING ON ONLINE MUCH LARGER
QUANTITIES OF RENEWABLES.
NUMBER TWO IT HELPS US UTILIZED
LOW COST RENEWABLES AND OTHER
STATES THAT WILL COMPLEMENT OUR
AMAZING SOLAR RESOURCE BOTH THE
LARGE AND THE SMALL SCALE PVP
THAT WE CAN AND SHOULD FAILED.
NUMBER THREE IT HELPS US ACCESS
A LARGER MARKET TO ABSORB THE
SOLAR GENERATION THAT'S IN
ACCESS TO WHAT CALIFORNIA
CUSTOMERS CAN CONSUMER WHAT'S
COST EFFECTIVE TO STORE.
THESE OTHER TOOLS THAT I
MENTIONED BEFORE ENERGY STORAGE
FLEXIBLE THE MAN THEY'RE
INCREDIBLY IMPORTANT SOURCES OF
FLEXIBILITY AND WILL LIKELY BE
EVEN MORE IMPORTANT THAN A
REGIONAL MARKET. FOR
ACCOMPLISHING CERTAIN CLIMATE
AND ENVIRONMENTAL JUSTICE
JUSTICE OBJECTIVES LIKE REDUCING
THE NEED TO RELY ON SPECIFIC IN
STATE NATURAL GAS PLANTS TO
PROVIDE LOCAL CAPACITY.
BUT I DON'T BELIEVE THAT THEY
ARE AN EFFECTIVE AND COST
EFFECTIVE SUBSTITUTE FOR
PROVIDING THE SYSTEM
FLEXIBILITY.
WE'RE GONNA NEED ON A DAILY
BASIS WHEN THE SUN GOES DOWN WE
LOSE OUR SOLAR. AND THAT'S WHAT
A REGIONAL MARKET CAN DO.
I ALSO WANT TO QUICKLY SPEAK TO
SOME OF THE CONCERNS THAT A
WESTERN GRADE COULD MEAN
CALIFORNIA GETS MORE OF ITS
ELECTRICITY FROM COAL FROM FROM
WESTERN COAL PLANTS.
AS YOU KNOW WE'VE ALREADY
IMPLEMENTED THAT WE'VE ALREADY
IMPLEMENTED A VERY STRONG POLICY
THE EMISSIONS PERFORMANCE
STANDARD TO PROHIBIT LOAD
SERVING AND HE'S HERE. FROM IT
RENEWING LONG TERM CONTRACTS
WITH INDIVIDUAL COAL PLANTS
AND THAT'S BEEN A HUGE DRIVER
AND REDUCING COAL THAT WE
CONSUME.
BUT
COAL GENERATION ALSO MAKES IT TO
CALIFORNIA BY WAVE UNSPECIFIED
MARKET PURCHASES FOR BUNDLES OF
ELECTRICITY WHICH IS DIFFERENT
FROM ELECTRICITY PURCHASES FROM
INDIVIDUAL PLANTS I KNOW WE
TOUCH ON THAT BRIEFLY IN THE
LAST.
SET OF COMMENTS.
ONE THING WE CAN DO ABOUT THIS
WHICH HAS BEEN THE MOST
IMPORTANT DRIVER FOR COAL PLANT
RETIREMENTS ACROSS THE COUNTRY.
IS EXPOSED THAT COAL GENERATION
TO MORE MARKET COMPETITION FROM
CHEAPER RESOURCES LIKE
RENEWABLES.
HAVING ACCESS TO A WESTERN
REGIONAL ENERGY MARKET IS GOING
TO MAKE IT MUCH EASIER FOR
CALIFORNIA TO GO FARTHER AND
FASTER WITH RENEWABLES. AND THAT
IN TURN OVER TIME IS GONNA HELP
DRIVE COOL OFF THE WESTERN
GRADE.
EXPANDING THE FOOTPRINT AYE SO
ALSO HAS THE BENEFIT OF ADDED
TRANSPARENCY THE CALL THE CURLY
MAKES IT TO CALIFORNIA'S
UNSPECIFIED WOULD HAVE TO BE
DISCLOSED IF THE PLANTS WERE
LOCATED IN A WESTERN AYSO. RIGHT
NOW ARE CAP AND TRADE PROGRAM
ASSIGNS UNSPECIFIED MARKET
PURCHASES A CARBON ADDER THAT'S
LESS THAN COAL BECAUSE WE CAN'T
ACTUALLY SEE WHICH PLANTS ARE
PROVIDING THAT GENERATION. IF WE
CAN SEE THE COAL WE CAN
ACCURATELY SIGN THE RIGHT CARBON
VALUE TO THAT ELECTRICITY.
A CLOSE JUST BY SAYING THAT
THESE ARE COMPLICATED ISSUES
WE'RE DISCUSSING THAT REQUIRE WE
HAVE MEANINGFUL OPPORTUNITIES TO
DEBATE. AND ALSO TO CRYSTALLIZE
THE BOTTOM LINES FOR CALIFORNIA
THAT WOULD ABSOLUTELY NEED TO
HAVE TO BE INTACT IF WE WERE TO
CREATE A WESTERN ISO.
AND I THINK THAT ABA A THIRTEEN
IS CREATING A MEANINGFUL
OPPORTUNITY WITH THE RIGHT DUE
PROCESS TO HAVE THIS
CONVERSATION. AND AT THIS POINT
I THINK THE BILL LANGUAGE HAS A
VERY SOLID FOUNDATION FOR
ARTICULATING HOW WE WOULD
PRESERVE OUR VALUES. AND PROTECT
OUR ABILITY TO CAN SEE IT TECH
CONTINUE PURSUING OUR CLIMATE
AGENDA THANKS.
THANK YOU BUDGETS MONEY JONES
REPRESENTING THE INDEPENDENT
ENERGY PRODUCERS.
AND.
WE REPRESENT DAY.
VAST ARRAY OF TECHNOLOGIES THAT.
ACTUALLY HAVE INVESTED TENS OF
BILLIONS OF DOLLARS IN
CALIFORNIA TO MEET OUR CA.
AGREEING CLIMATE GOALS AND THESE
INCLUDE WIND.
UTILITY SCALE SOLAR GEOTHERMAL
BIOMASS AND THE GAS LEAKED OUT
THAT HAS BEEN MODERNIZE TO LOWER
ITS CARBON.
FOOTPRINT.
AS WE ARE TO MEET RAMPS AND
OTHER NEEDS HERE IN CALIFORNIA
SO WE APPRECIATE THE OPPORTUNITY
I MISTER CHAIRMAN TO.
AB PRESENT OUR SUPPORT FOR A
PROPERLY STRUCTURED.
REGIONAL MARKET TO HELP ME
CALIFORNIA'S GREEN FUTURE THINK
THIS CAN BE DONE AND I ALSO WANT
TO THANK YOU FOR.
AB.
A THIRTEEN SO WHILE IT'S A WORK
IN PROGRESS THAT SUBJECT AT
THIS.
PACIFIC HEARING TODAY AYE IT
DOES PROVIDE SOME FOCUS.
TO TAKE THIS DISCUSSION FROM
THE ABSTRACT WHICH WE'VE HAD.
A COUPLE YEARS OF.
TO ACTUALLY HAVING THE DEBATE
ABOUT WORDS ON PAPER SO I THINK
IT'LL HELP FOCUS THINGS AND I
LOOK FORWARD TO THAT I THINK THE
STAFF BACKGROUND MATERIAL DID A
VERY GOOD JOB GIVING DE COMEDIAN
OVERVIEW.
HOW THE SYSTEM WORKS AND WHAT'S
IMPORTANT THERE AT THE DIET SO
DID A GOOD JOB OF EXPLAINING?
EXACTLY WHAT THE.
THE ISSUES THAT THEY FACE ARE.
AYE WHAT JUST WANNA START UP
QUICKLY BY SAYING.
THERE'S CERTAIN THINGS HERE
THAT.
ARE NOT NEW OKAY SO THE
REGIONAL ENERGY MARKETS.
BASICALLY ARE NOT NEW AT ALL
THEY WENT TO A FACT OVER FIFTY
YEARS AGO SO MATTER FACT
PRESIDENT KENNEDY IN NINETEEN
SIXTY ONE ORDERED AS A PLANNED
AND INCORPORATED NORTHWEST WITH
CALIFORNIAN THE SOUTHWEST. I
KNOW THERE'S MAYBE ONLY TEN
PEOPLE IN THE ROOM THAT WERE
AROUND THEN BUT DOT THAT'S WHAT
HAPPENED.
CONGRESS DID APPROPRIATE MONEY
AND WE DID BUILD A TRANSMISSION
SYSTEM THAT.
INCLUDE TO AC LEADS IN THE DC
LIVE IN THE NORTHWEST AND WE ARE
INTERCONNECTED AS WELL TO THE
EAST OF US I'D TO ARIZONA
NEVADA.
SO THE STRUCTURE HAS BEEN THERE
THE WIRES HAVE BEEN THERE FOR A
LONG TIME.
AND.
THE.
YOU KNOW THIS IS ALL IN
INTERSTATE MARKET IT'S BEEN
THERE FOR THAT PERIOD OF TIME IT
HAS BEEN SUBJECT TO THE COMMERCE
CLAUSE IN THE FEDERAL POWER ACT
AND ALL THE THINGS THAT GO WITH
INTERSTATE MARKETS.
SO THAT'S A BE I THINK AS YOU
HEARD EARLIER ONE OF THEM DIDN'T
MAIN DRIVERS FOR THAT AT THE
TIME. I WAS AT THE NORTHWEST IS
A WINTER PEAKING ENTITY MEETING
DATE THEY HEAT THEIR HOMES WITH
ELECTRICITY SO THEY PEAK IN THE
WINTER.
CALIFORNIA THE SOUTHWEST IT I
HAVE AIR CONDITIONING LOADS WE
PEAK IN THE SUMMER.
AND SO WAS A WITH A WAY TO
BASICALLY MOVE THIS POWER BACK
AND FORTH WITH A LOT WHICH
ALLOWED US BUT NOT OVERBILLED
OUR SYSTEMS TO MEET OUR NEEDS WE
IMPORT ABOUT TWENTY FIVE TO
THIRTY PERCENT OF OUR POWER.
WHICH I OBVIOUSLY HAD COST
ENVIRONMENTAL ISSUES ASSOCIATED
WITH IT.
THIS PARALLELS DISCUSSION WE
HAVE BEEN ALL GOING TO LITTLE
MORE DETAIL.
WITH WHAT'S GOING ON TODAY WITH
THAT BASICALLY SOLAR BEING ABLE
TO EXPORT IT WHEN WE DON'T NEED
IT.
OR WERE IN ACCESS AND ALSO TO
IMPORT WIND WHEN IT MAY BE
AVAILABLE IN OTHER REGIONS.
IN HELP US BEAT SOBRE PEEKING
OPPORTUNITIES.
TWENTY YEARS AGO.
A MARCH THIRTY FIRST SO THERE'S
A BIRTHDAY COMING UP THE AYE AYE
SO WENT LIVE.
I THINK YOU'RE PRETTY GOOD.
EXPLANATION OF WHAT IT IS STATE
DO IT'S SUPPOSED TO BE BORING
CALLASPO'S TO KEEP SYSTEM AT
SIXTY HERTZ TO KEEP US FROM
BEING SERBIA BUT APPARENTLY IT'S
GOTTEN MUCH MORE INTERESTING
OVER LAST OVER YEARS.
WE WHAT WE BELIEVE IS IMPORTANT
AS THEY ARE AIR TRAFFIC
CONTROLLER OF ELECTRONS THEY
DON'T OWN THE TRANSMISSION
SYSTEM THEY HAVE NO ECONOMIC
INTEREST IN THAT. INFORMED US
THAT IS INDEPENDENT POWER
PRODUCERS THAT ACTUALLY
DEVELOPED NGUYEN PLANTS AND
SOLAR PLANTS IN JUNE THERMAL
PLANTS GAS PLANTS.
NOT HAVING THE TRANSMISSION
SYSTEM GAINED IN USE BY THE
TRANSMISSION OWNER AWAY THE
COULD DETAILS.
ECONOMIC DEVELOPMENT
COMPETITION WAS CRITICAL.
SO IT HAD A MAJOR IMPACT ON.
AND BASICALLY OPENING UP
CALIFORNIA TO BE ABLE TO EXPAND
OUR NOBLE BASE.
IN OUR OTHER.
OTHER CLEAN RESOURCES I IN IN
MEETING OUR NEEDS.
AS YOU HEARD CALIFORNIA HE AYE
SO DOES NOT INITIATE POLICY.
IT'S DONE A GOOD JOB OF
INTEGRATING WHAT THE LEGISLATURE
HAS SENT TO IT OVER THE YEARS A
TERMS OF POLICIES WE WOULD
EXPECT THEM TO CONTINUE TO DO
THAT. HAZARD AS A METAL
INDICATES IT IS FOR IT REGULATED
AND THE AYE IN.
A CALIFORNIA INDEPENDENT SYSTEM
OPERATOR MEANS SAID IT A IT'S
NOT A STATE AGENCY AND IT'S NOT
COMMERCIALLY OWNED BY ANYBODY SO
THAT INDEPENDENCE IS VERY
IMPORTANT.
MOVING FORWARD THE BENEFITS AS
WE SEE A IN ITS NOT ONLY ONE
SOLUTION AS I THINK AT PEOPLE
HAVE INDICATED EARLIER. IT DOES
ALLOW US TO.
BASICALLY.
BETTER MANAGE OUR PORTFOLIO.
WHICH ALLOWS US IS.
SHOULD MISTER PATTERSON IT
INDICATED TO.
EXPORT EXES RENEWABLES WHEN IT
NECESSARY I'LL ADD I THINK.
MISS WHISTLING JUST ALREADY.
YEAH HIT UPON THIS.
IS IT ALSO HAS THE POTENTIAL
DISPLACING FALSO RESOURCES.
ELSEWHERE IN THE WEST OTHER
CHRISTIAN WEST ISN'T GOING TO D.
CARBONIZED BECAUSE CALIFORNIA
TELLS THEM TO. BUT THEY WILL BUY
CHEAP ELECTRONS FROM US AND
JUDGE SO I THINK THAT THAT'S A A
REAL OPPORTUNITY THERE.
IT ALLOWS US TO ACCESS LOWER
COST RENEWABLES AS I SAID THERE
ARE NGUYEN RESOURCES THAT MAY
NOT CURRENTLY BE AVAILABLE TO
CALIFORNIA BECAUSE LACKEY
TRANSMISSION. ABOUT MAYBE IN
ABOUT A AVAILABLE IN THE FUTURE
AS MS RIVLIN INDICATED IT WILL
IMPROVE TRANSPARENCY FROM THE
STANDPOINT OF THE I SO WILL KNOW
WHAT'S BEING DISPATCHED. THE
WHAT IMPACT.
AND WE'RE EXPECTING THAT THE
CORPORATE GOVERNANCE OF.
THIS ENTITY REMAINS.
REMAINS INDEPENDENT AS IT IS
TODAY.
AND THAT THEY'LL BE COMPARABLE
ACCESS TO THE.
GRID AS AT ALSO AS THERE IS
TODAY.
SO THE IT THAT THE YOU KNOW
THAT WE ALSO BELIEVE COMBAT ALL
THESE THINGS COMBINED WILL HELP
LOWER THE COST OF BEING OUR
CARBON GOALS IN THE FUTURE AND I
THINK THAT'S KEY. A IN TERMS OF
TRIED TO MEET THE OF THESE GOALS
WHICH WE WHOLEHEARTEDLY SUPPORT
BUT IN A MANNER THAT THAT LOWERS
THE COST.
THE IMPORTANT POINT HERE IS.
THE ROLE OF THE STATE IN THAT.
IN THAT REGIONAL MARKET.
AND CALIFORNIA WILL CONTINUE
HAVE CONTROL OVER ITS RESOURCE
DECISIONS LIKE THE OUR PS.
THE ENERGY EFFICIENCY STORE YOU
SEE WHEN YOU ENACT
LEGISLATION THAT.
YOU ARE SENSITIVE TO THE
COMMERCE CLAUSE AND OTHER THINGS
YOU WRITE THEM SMARTLY AND
CALIFORNIA SO FAR HAS DONE AT
OUR PS WE SPEND LOT OF TIME.
MAKING SURE THAT IT COMPLIES
WITH THE COMMERCE CLAUSE IN IN
THE PAST SEVEN YEARS NO ONE'S
CHALLENGED IT OKAY SO I THINK
WE'RE PRETTY WELL ON OUR WAY
DOWN THE ROAD. AND WHILE THE
WORDS CHIEF JUSTICE MONEY JONES
WILL NEVER LEAVE ANYBODY SLIPS
I'M PRETTY CONFIDENT THAT IT
WOULD WHICH WITHSTAND.
CONSTITUTIONAL SCRUTINY SO I I
THINK THAT IT'S IMPORTANT TO
RECOGNIZE THAT THAT'S THEIR CALL
IT CALIFORNIA WILL CONTINUE TO
HAVE CONTROL OVER IT CO TWO
POLICY AND THAT'S BEEN
CHALLENGED INTO A BIT CALIFORNIA
ONE ON THAT. I CALIFORNIA.
IT HAS CONTROL OVER
TRANSMISSION CITING AND.
RESOURCE.
PLANNING IT HAS.
IT IT HAS CONTROL OVER CITING
OF GENERATION.
IT WITHIN ITS BORDERS IT SETS
RETAIL RATES ID HAS RETAIL
PROGRAMS.
THE AP HAS TAX POLICIES THAT IT
THAT IT SO ALL OF THOSE THINGS
DID YOU DO TODAY YOU COULD
CONTINUE TO DO IN THE FUTURE AND
THAT'S IMPORTANT TO RECOGNIZE.
THE EXPANDED I ALSO.
AND I JUST WANNA MAKE THIS
CLEAR TO EVERYBODY.
WILL NOT AFFECT CALIFORNIA'S
ABILITY TO PURSUE ITS POLICY
GOALS IN THE FUTURE
I'M YEAH I AND.
CALIFORNIA WILL CONTINUE TO
HAVE CONTROL OVER ITS POLICIES
AS I SAID IT IS AGAIN THE LAWS
LONGER CONSISTENT WITH. THE
COMMERCE CLAUSE IN THE FEDERAL
POWER ACT WHICH IS YOU KNOW
WOULD WHICH IS WHAT THE.
STATUS IS TODAY AND ALWAYS HAS
BEEN AND SO I THINK THAT'S A
POSITIVE THING.
AND.
CALIFORNIA WILL YOU KNOW
CONTINUE TO MOVE FORWARD IN
BEING ABLE TO MOVE ITS POLICIES
AND IN WAYS THAT I THINK ARE.
WILL HOPE IS MEET OUR FUTURE SO.
THE WE.
.
YOU KNOW OUR SUPPORT FOR THIS
OUT OF ME TO BELIEVE THAT THIS
WILL GIVE US.
IT YOU KNOW EXPANDED.
ABILITY TO ACCESS ADDITIONAL.
RESOURCES FROM NOT ONLY AROUND
THE REGION BUT ALLOW US TO
EXPORTS OF THE INDIGENOUS
RESOURCES THAT WE HAVE HERE.
IN IN THE STATE OF CALIFORNIA
WHICH IS NOT JUST SOLAR AND IT'S
NOT JUST WIND ITS BIOMASS IT'S
YOU'LL THERMAL THAT SOME OF
THESE OTHER RESOURCES THAT ARE
FOUNDATIONAL TO OUR MARKET. SO
JUST IN CLOSING.
.
WE BELIEVE THAT THE GOVERNANCE
STRUCTURE OBVIOUSLY OF AN
EXPANDED ISO IS OF CRITICAL
IMPORTANCE.
WE BELIEVE THAT.
AB ERA EIGHT THIRTEEN IS
PROVIDING A FRAMEWORK TO HAVE A
DISCUSSION ABOUT WHAT ARE
DILIGENT OF LEGITIMATE
GOVERNANCE ISSUES THAT ARE
ACTUALLY ASSOCIATED WITH THAT.
AND I THINK THERE ARE THE POLICY
IMPLICATIONS THAT COULD BE TAKEN
UP IN OTHER LEGISLATION THAT ARE
YOU KNOW WHAT WHAT WHEN THAT IS
APPROPRIATE. TO THANK YOU FOR
THIS OPPORTUNITY. THANK YOU.
DID YOU HAVE A QUESTION FOR THAT
THAT THE SUMMER YOU CAN WAY OKAY
THANK YOU.
THANK YOU MISTER CHAIRMAN
MEMBERS OF COMMITTEE MATT
FRIEDMAN ON BEHALF OF THE
UTILITY REFORM NETWORK. I'M I'M
HERE TO SAY THAT TURNED SUPPORTS
GREATER REGIONAL COORDINATION.
BUT WE DON'T SUPPORT THE
PROPOSAL FOR EYES SO REGIONAL
EXPANSION.
I THINK IT'S IMPORTANT TO
UNDERSTAND THAT CALIFORNIA IS
ALREADY PART OF A REGIONAL
MARKET.
TRADING OF ELECTRICITY HAPPENED
THROUGHOUT THE WEST EVERY HOUR
OF EVERYDAY THAT INVOLVES
CALIFORNIA.
ENGAGE
COORDINATION.
IT'S WHETHER CALIFORNIA SHOULD
GIVE UP MEANING FULL CONTROL
OVER THE CALIFORNIA INDEPENDENT
SYSTEM OPERATOR.
AND CONTRAST TO THE WISE
COMMENTS A CHIEF JUSTICE MONEY
JONES TO MY LEFT.
I DON'T SEE. A COMPELLING VALUE
PROPOSITION THE CHI SO EXPANSION
BUT WE DO SEE SERIOUS POTENTIAL
DOWNSIDE RISKS THAT MUST BE
UNDERSTOOD BEFORE THE
LEGISLATURE MAKES A DECISION
THAT CANNOT EASILY BE REVERSED.
BASED ON THE REVIEW OF THE
STUDIES THAT WE'VE DONE.
WE'RE CONCERNED THAT REGIONAL
EXPANSION COULD LEAD TO HIGHER
COSTS FOR CALIFORNIA CONSUMERS A
GREATER UTILIZATION OF COAL AND
GAS FIRED POWER PLANTS
HIGHER IN STATE GREENHOUSE GAS
EMISSIONS FEWER IN STATE JOBS.
AND AN INCREASED RISK THAT
CUTTING EDGE STATE POLICIES THAT
WE'VE ALL INVESTED A LOT OF TIME
TO DEVELOP.
MIGHT BE SUBJECT
A FEDERAL PREEMPTION.
THE RENEWABLE PORTFOLIO STANDARD
PROGRAM IN ADDITION ON IS
POTENTIALLY AT RISK
BECAUSE REGIONAL EXPANSION WOULD
IRREVOCABLY MAKE SUBSTANTIAL
MODIFICATIONS TO KEY ELEMENTS OF
THAT PROGRAM. THAT COULD RESULT
IN LESS NEW RENEWABLE ENERGY
DEVELOPMENT.
AND GREATER RELIANCE ON
RENEWABLE ENERGY THAT IS NEVER
ACTUALLY USED TO SERVE
CALIFORNIA AND THEREBY PRODUCES
FEWER IN STATE ENVIRONMENTAL AND
PUBLIC HEALTH BENEFITS.
THIS IS A ONE WAY TICKET THAT
CAN'T BE UNWOUND OF CALIFORNIA
WANTS OUT LATER.
IT WOULD HAVE TO SPEND
YEARS AND HUGE SUMS OF MONEY TO
RECONSTRUCT AN ENTIRELY SEPARATE
AND NEW WHOLESALE MARKET
MECHANISM AND THAT'S PROBABLY
NOT GOING TO HAPPEN.
OUR PRIMARY CONCERN REALLY IS
THAT ELIMINATING THE GOVERNOR
APPOINTED.
STATE SENATE CONFIRMED BOARD
WOULD BE A MISTAKE.THE CURRENT
STRUCTURE REQUIRES
THE I SO TO BE ACCOUNTABLE TO
STATE INTERESTS AND TO ELECTED
OFFICIALS LIKE ALL OF YOU.
THE EXPANSION OF THE AYE SO
INVOLVES ELIMINATING ANY
SPECIFIC ROLE FOR CALIFORNIA'S
ELECTED OFFICIALS OR REGULATORS.
IN SELECTING THE GOVERNANCE OR
OVERSEEING THE ISO AND UNDER A
RESTRUCTURED ENTITY.
ALL OF YOU AND REGULATORS ARE
STATE AGENCIES WOULD BE
RELEGATED TO SIMPLY PROVIDING
INPUT.
ALONG WITH OTHER GOVERNMENT AND
INDUSTRY STAKEHOLDERS FROM
ACROSS THE WEST IN AFFECT YOUR
VIEWS WOULD BECOME ONLY
MARGINALLY RELEVANT. AND THIS
BILL THAT YOU WERE ASKED TO PASS
IT COMES TO A VOTE WOULD BE
LITERALLY THE LAST BILL YOU'LL
EVER GET TO VOTE ON THAT HAS A
DIRECT IMPACT ON THE I SO
BECAUSE IT WOULD NO LONGER BE
SUBJECT.
STATE OVERSIGHT.
THIS IS AN IMPORTANT POINT TO
UNDERSTAND
IT'S A ONE WAY TICKET AND YOU
HAVE ONE CHANCE TO DECIDE
WHETHER IT SHOULD GO FORWARD.
AND UNDER REGIONAL AYE SO IF THE
CALIFORNIA LEGISLATURE HAS ANY
CONCERNS.
WELL THEY CAN SEND A LETTER TO
THE ISO.
OR YOU CAN FILE COMMENTS WITH
THE FEDERAL ENERGY REGULATORY
COMMISSION WERE PRESIDENT
TRUMP'S APPOINTEES WILL BE MORE
THAN HAPPY TO CONSIDER WHETHER
CALIFORNIA'S VIEWS ARE VALID.
IN TWENTY SIXTEEN.
WHEN THE FIRST PROPOSAL FOR AYE
AS A REGIONALIZATION CIRCULATED
THERE WAS AN IDEA OF A WESTERN
STATES COMMITTEE WERE CALIFORNIA
WOULD ACTUALLY HAVE A VOTE ON
KEY POLICIES.
THAT WOULD BE CONSIDERED BY THE
ISO WELL THAT'S GONE ON IN THAT
FORMAT THE LATEST VERSION AND
EIGHTY EIGHT THIRTEEN APPEARS TO
RELEGATE THAT COMMITTEE TO
SIMPLY PROVIDING INPUT.
WELL BE ALL PROVIDE INPUT TO
DECISION MAKERS AND IT DOESN'T
MEAN THAT THEY A THAT IT'S A
MEANINGFUL FORM OF AND PUT. IT
DOESN'T PROVIDE ANY BINDING FORM
OF CONTROL.
SO WHY ARE WE CONCERNED ABOUT
THIS BECAUSE WE THINK THAT
EXPANDING THE I SO DOES INCREASE
THE RISK OF LITIGATION AND
PREEMPTION OF CALIFORNIA STATE
POLICIES.
COM RIGHT NOW CALIFORNIA HAS AN
IMPORTANT ROLE IN DISSUADING THE
I SO AND ITS BOARD FROM
APPROVING BAD MARKET MECHANISMS
THAT CAN FRUSTRATE CALIFORNIA'S
POLICY INITIATIVES.
I'M THAT ROLE WAS GONE UNDER A
REGIONAL HAS SO.
AND THE REGIONAL AYE SO WOULD
DEVELOP MECHANISMS THAT RESPOND
TO NEEDS AND OTHER PARTS OF THE
REGION.
SOME OF THOSE MECHANISMS MAY
VERY WELL CONFLICT WITH
CALIFORNIA'S POLICIES AND
PRACTICES.
ORIGINAL ISO WOULD ALSO INCLUDE
MANY STAKEHOLDERS OPPOSED TO
CALIFORNIA'S POLICIES.
IT WOULD BE DIRECTLY AFFECTED BY
THEM AS PART OF A SINGLE
INTEGRATED WHOLESALE MARKET.
RIGHT NOW. CALIFORNIA CAN'T BE
FORCED TO SUBSIDIZE COAL FIRED
POWER PLANTS IN UTAH OR WYOMING.
BUT.
IF WE'RE ALL PART OF THE SAME
REGIONAL GRADE.
IN THE SAME REGIONAL MARKET THAT
ACTUALLY PROVIDES A MECHANISM
FOR THE FEDERAL ENERGY
REGULATORY COMMISSION TO DO WHAT
IT'S INDICATED IT'S INTERESTED.
WHICH IS TO PROVIDE NEW SUBSIDY
MECHANISMS FOR EXISTING COAL
FIRED POWER PLANTS.
AND FOR ALL USERS OF THE SAME
REGIONAL TRANSMISSION OPERATOR
TO PAY FOR THAT.
WHEN YOU BRING IN A BUDGET COAL
PLANTS INTO YOUR. INTO YOUR
WHOLESALE MARKET UNDER THE SAME
RTO YOU HAVE ACTUALLY PROVIDED A
PATHWAY FOR FORCING THOSE KINDS
OF OUTCOMES. AND WE ALSO BELIEVE
THAT COURTS ARE LIKELY TO
PROVIDE GREATER SCRUTINY.
STATE POLICIES THAT AFFECT
WHOLESALE MARKETS WHEN THE
STATE'S ARE PART OF A SINGLE
REGIONAL TRANSMISSION OPERATOR.
AND IN FACT ONE OF OUR POTENTIAL
PARTNERS IN THE REGIONAL GRADE
THE STATE OF UTAH. HAS JUST
INCLUDED THEIR LEGISLATURE IN
THEIR STATE BUDGET ONE POINT SIX
MILLION DOLLARS TO SUE THE STATE
OF CALIFORNIA OVER ITS
GREENHOUSE GAS POLICIES.
THEY'RE READY TO GO TO SEE
WHAT'S UNDER THE CURRENT
PARADIGM AND MY VIEW IS THAT
EXPANDING THE I SO ACTUALLY
GIVES THEM A GREATER CHANCE OF
SUCCESS.
TO APPLY OUR POLICIES AS PART OF
THE FORK REGULATED SINGLE
WHOLESALE MARKET.
THERE'S NO WAY TO EXCLUDE OTHER
WREAKED OTHER WESTERN STATES
FROM PARTICIPATING ONCE THE DOOR
IS OPEN YOU CAN'T SIMPLY ALLOW
THE STATE'S YOU LIKE TO JOIN.
EVERYBODY GETS TO JOIN ON EQUAL
TERMS
SO IN OUR VIEW THERE IS A HUGE
RISK HERE THAT EXPANSION
PROVIDES AN OPPORTUNITY. FOR
OTHER HOSTILE PARTIES IN THE
WEST
TO COME AFTER CALIFORNIA'S
POLICIES AND IT INVITES
ADDITIONAL SCRUTINY BY THE
FEDERAL ENERGY REGULATORY
COMMISSION.
LAST FRIDAY THE ENTER THE BURKE
ISSUED A DECISION RELATED TO.
ISO NEW ENGLAND.
AND THAT'S FILLED WITH WARNING
SIGNS THAT THIS BURKE IS NOT
LIKE THE FORK THE CAME BEFORE
IT.
AND THAT THERE MAYBE NEW LIMITS
OR ATTEMPTS TO CREATE LIMITS ON
NEW STATE CLEAN ENERGY POLICIES
THAT FRUSTRATE REGIONAL MARKET
DESIGN.
GIVEN THE RISK
WHY DON'T WE SLOW DOWN AND TRY
ALTERNATIVES TO EXPANDING THE I
SO WHILE WE FURTHER UNDERSTAND
WHAT THE RISKS MIGHT LOOK LIKE
AS LITIGATION PROCEEDS AND OTHER
PARTS OF THE COUNTRY.
OUR CONCERN ABOUT AB EIGHT
THIRTEEN AS CURRENTLY DRAFTED IS
IT REALLY CONTAINS VERY FEW
ENFORCEABLE MEANINGFUL AND
DURABLE PROTECTIONS.
ON THE OBLIGATIONS THAT ARE
IDENTIFIED FOR INCLUSION IN THE
AYE ESOS NEW GOVERNING
DOCUMENTS.
ARE VAGUE SUBJECT A SUBSTANTIAL
INTERPRETATION AND PRETTY MUCH
INADEQUATE TO ADDRESS THE
LEGITIMATE CONCERNS ABOUT THE
THREAT TO CALIFORNIA'S
INTERESTS.
AND IN FACT THE PROVISIONS IN
THE BILL ARE SUBSTANTIALLY
WEAKER THAN THOSE THAT WERE
INCLUDED IN DRAFTS THAT WERE
CIRCULATED BY THE GOVERNOR'S
OFFICE JUST SEVERAL YEARS AGO SO
IT APPEARS THAT IT'S GOING IN
THE WRONG DIRECTION FROM OUR
PERSPECTIVE.
AND I'D ALSO LIKE TO POINT OUT
THAT ANY GUARANTEES THAT
CALIFORNIA MIGHT RECEIVE AS PART
OF AN INITIAL DEAL. CAN LATER BE
REVOKED AND THIS HAS HAPPENED IN
OTHER PARTS OF THE COUNTRY WERE
STATES HAVE ENTERED INTO
AGREEMENTS AS PART OF OUR T. O.
MARKET MECHANISMS. AND LATER ON
THOSE DEALS HAVE BEEN UNWOUND
AFTER THE STATE HAD ALREADY
PROVIDED IT'S BINDING AGREEMENT
IN FACT THAT'S THE BASIS FOR THE
HUGE RETAILING CASE THAT THE
SUPREME COURT DECIDED TWO YEARS
AGO.
I'M.
IN TERMS OF THE BENEFITS OF
REGIONAL EXPANSION ON THE
RESULTS ARE QUITE NEXT IN THE
EYES OF STUDIES THAT BE THREE
FIFTY STUDIES THAT WERE
COMPLETED TWO YEARS AGO. AND THE
RESULTS ACTUALLY CAN SHOW SLIGHT
INCREASES IN YOUR TERM
GREENHOUSE GAS EMISSIONS.
AND HIGHER GREENHOUSE GAS
EMISSIONS AND GAS POWER PLANT
DISPATCH WITH IN CALIFORNIA.
THIS KIND CUTS AGAINST THE IDEA
HERE THAT REGIONALIZATION
REDUCES THE POLLUTION IMPACT ON
LOW INCOME AND DISADVANTAGED
COMMUNITIES IN THE STATE. ARMED
THE MODELING ACTUALLY SHOWS THAT
THERE CAN BE AN INCREASE IN
GREENHOUSE GAS EMISSIONS AN
INCREASE IN GAS DISPATCH WITH IN
CALIFORNIA.
AND.
SO THOSE ARE SOME OF THE
CONCERNS WE HAVE ALSO. NOT THE
CURTAILMENT SITUATION I THINK WE
APPRECIATE THE CHALLENGE OF THE
SITUATION THAT'S IN FRONT OF US
TODAY. I'M WITH.
EXCEEDINGLY LARGE AMOUNTS OF
INTERMITTENT RENEWABLE POWER
CREATING OPERATIONAL CHALLENGES.
BUT THE EYES SO ON TODAY JUST
IDENTIFIED EIGHT DIFFERENT TOOLS
THAT COULD BE AVAILABLE TO TRY
TO MANAGE SOME OF THOSE RISKS
ONLY ONE OF THEM INVOLVE
REGIONAL EXPANSION.
AND THEIR OWN STUDY.
ACTUALLY FOUND THAT MOST OF THE
REDUCTIONS IN CURTAILMENT IN
TWENTY THIRTY.
CAN BE ACHIEVED WITHOUT.
ROBERT WITHOUT REQUIRING THE ISO
TO BECOME A REGIONAL GRID
OPERATOR SPECIFICALLY THEIR
STUDY FOUND THAT SEVENTY FIVE
PERCENT OF THE REDUCTIONS IN
CURTAILMENT.
COULD BE REALIZED SIMPLY THROUGH
ENHANCED BILATERAL COORDINATION
THROUGHOUT THE WEST WITHOUT
NEEDING TO EXPAND THE ISO.
WE THINK SO SO WHAT CAN THE
STATE DO.
I'M TO CAPTURE SOME OF THESE
BENEFITS
WITHOUT STEPPING INTO A RISKY
ENVIRONMENT.
IN OUR VIEW THE ALTERNATIVES
INCLUDE WORKING WITH OTHER IN
STATE BALANCING AUTHORITIES.
OWNED BY PUBLICLY OWNED
UTILITIES TO IN TO INCREASE
COORDINATION.
AND MAYBE EVEN NEGOTIATE TERMS
FOR JOINING THE ISO.
NO GOVERNANCE CHANGES WOULD BE
NEEDED.
TO EXPAND THE ISO WITHIN THE
STATE OF CALIFORNIA.
AND THEN THERE'S EXPANDING THE
VOLUNTARY ENERGY IMBALANCE
MARKET WHICH WAS DISCUSSED A FEW
MINUTES AGO.
TO PERMIT A GREATER RELIANCE ON
TRANSACTIONS WITH OTHER WESTERN
BALANCING AUTHORITIES THAT GO
BEYOND THE REAL TIME MARKET.
ON THE I SO IS CERTAINLY LOOKING
INTO THIS AND WE THINK IT'S
FERTILE GROUND.
HOW COORDINATION WITH THE
BONNEVILLE POWER AUTHORITY?
BONNEVILLE POWER AUTHORITY
CONTROLS A LARGE SET OF HYDRO
ASSETS
TRYING TO USE THOSE ASSETS MORE
EFFECTIVELY.
TO COORDINATE WITH CALIFORNIA'S
NEEDS COULD BE A WIN WIN. AND
THEN FINALLY WORKING WITH OTHER
WESTERN BALANCING AUTHORITIES TO
REDUCE BARRIERS TO EXPORTING
ACCESS POWER THAT'S PRODUCED IN
CALIFORNIA.
SO.
THAT'S WHERE WE'RE COMING FROM
ON THIS WE CERTAINLY LOOK FOR TO
WORKING WITH OTHER PARTIES AND
SUBSTANTIVELY ENGAGING BUT WE
WANT TO MAKE SURE THAT YOU
MEMBERS OF THE LEGISLATURE ARE
AWARE THAT THIS IS NOT A RISK
FREE PROPOSITION. AND WE'RE NOT
SURE WHAT BINDING PROTECTIONS
CAN BE INCLUDED IN STATE LAW
THAT ARE GOING TO GIVE US THE
COMFORT. THAT OUR POLICIES ARE
NOT GONNA BE IN THE CROSS HAIRS
UNDER AN EXPANDED GREAT THANK
YOU.
THANK YOU.
ARMSTRONG.
THANK YOU MISTER CHAIRMAN.
BEFORE I GO INTO WORD SOME OF
THE PREPARE MARKS THAT I IT DID.
A THOUGHT ABOUT AND DISCUSSING
TODAY I WANTED TO ESSENCE I HAVE
MISTER ROUGHLY OR SLIDE STILL IN
FRONT OF ME ANYWAY. A AND THAT'S
THE FIRST TIME I'VE SEEN HIM.
THINK ABOUT SAYS SOME OF THE
THINGS THAT THE THEY CLEARLY
ARTICULATE AND AND ONE OF THEM
IS.
THE YOU SEE THERE SAID AS YOU
CAN SEE THE ROLE OF THE GHASTLY
IN TODAY'S OPERATION
IT'S VERY VERY SICK.
IT'S SIGNIFICANT ON THE PEAK DAY
SLIDE THAT MISTER ROCK LEADER A.
A SET FORTH AND IT'S SIGNIFICANT
AND RAMPING SLIDES.
THAT HE SET FORTH TO MEET THE
RELIABLE OPERATION OF THE SYSTEM
SO. JUST SOMETHING THAT WE NEED
THINK ABOUT.
AND WE KNOW IT'S A SUBJECTIVE
OTHER DISCUSSIONS OTHER
LEGISLATION.
IT'S BIG IT'S BIG DEAL IT'S
WHAT WE RELY ON TODAY IN MANY
MANY INSTANCES OF RIVAL SYSTEM
OPERATION.
AND THE OTHER THING IS AND IT
STRIKES ME IS THAT TO HIS JOBS
VERY HARD.
AND WE SHOULDN'T TAKE IT FOR
GRANTED.
AND THAT IT'S GETTING MORE
CHALLENGING.
HE'S CONFIDENT AND I THINK WE
ALL ARE SINCE WE'VE MET THE
CHALLENGES ALREADY THAT WE WILL
NEED IN THE FUTURE. BUT WE
SHOULDN'T MAKE POLICY DECISIONS
THAT MAKETHE JOB MORE DIFFICULT
SO I THINK WE NEED TO KEEP THAT
IN MIND AS WE MOVE FORWARD AS
WELL.
SO S. SEE ANYWAY ISN'T A DIVERSE
ORGANIZATION A PUBLIC POWER
ENTITIES DATA.
ON ELECTRIC SIDE IT'S ABOUT
FORTY FORTY THREE FORTY FOUR
SOMEONE THAT RANGE OF ELECTRIC
UTILITIES.
I AND THERE'S MANY POSITIONS
WITHIN THAT LARGE GROUP ON
REGIONALIZATION SOME ARE
STRONGLY OPPOSED.
SOME ARE GENERALLY SUPPORTIVE.
AND YOU MAY LIKELY HEAR SOME OF
THOSE COMMENTS TODAY.
AS A WHOLE.
I THINK WE ARE.
.
LOOKING NOT TOWARDS THE IDEA OR
CONCEPT OF REGIONAL EXPANSION OF
THE I SO. BUT THE PRACTICAL
IMPLICATIONS AND WHAT ARE THE
IMPLICATIONS FOR OUR CUSTOMERS.
HOW DOES IT AFFECT RATES HOW
DOES IT AFFECT OUR ABILITY TO
KEEP THE LIGHTS ON HOW DOES THAT
AFFECT OUR ABILITY TO MAKE MEET
THAT OUR POLICY OBJECTIVES? OF
THE STATE OF CALIFORNIA.
AND ONE OF THINGS A THE MAIN
POINT I'D LIKE TO COMMUNICATE
AND TO THE COMMITTEE TODAY IS
THAT.
I THINK THERE IT SOMETIMES
CONFLATED NO STATUTORY.
.
CHANGES WITH NOTHING IS
HAPPENING IN IT INDUSTRY AND IN
FACT NOTHING COULD BE FARTHER IN
THE CHURCH THAN THE TRUTH.
THE I. SO SHOULD BE APPLAUDED
BY FOR ITS INNOVATIVE ENERGY
IMBALANCE MARKET AND I DON'T
THINK ANYONE WOULD HAVE THOUGHT.
THAT IN A FEW SHORT YEARS YOU
WOULD HAVE HAD.
ELEVEN ENTITIES A.
EITHER ALREADY PART OF THE
OPERATIONAL IBM. OR
LOOKING TO BE PART OF THAT
OPERATION BY TWENTY TWENTY.
ON THAT IS AND A TREMENDOUS
ACCOMPLISHMENT IT'S AN ON
PARALLELED A AMOUNT OF REGIONAL
COLLABORATION. IDIOT AND IT'S
NOT JUST POLICY DECISIONS BY
EXECUTIVES BUT ALL THE SOFTWARE
AND TECHNOLOGY AND CHANGES TO
SYSTEMS THAT GO IN PLACE. TO
ALIGN THE OPERATION OF THE
ENTITIES ITS IT IS A VERY BIG
LEFT.
AND SO THAT SHOULD BE NOT GO
UNNOTICED.
WHICH IS ALSO NOT GO UNNOTICED
IS THAT.
YOU HAVE UP FOR PUBLIC POWER
ENTITIES FOR OF THE LARGEST
EIGHT PUBLIC POWER ENTITIES IN
THE UNITED STATES.
THAT ARE ON TRACK TO BECOME E. I
AM ENTITIES WHERE WE'RE SITTING
RIGHT NOW THE SACRAMENTO
MUNICIPAL UTILITY DISTRICT.
PART OF THE BALANCING OF THE
WORRY OF NORTHERN CALIFORNIA
WILL BECOME IS SET TO BECOME ANY
ID AND AN ENTITY. ARE
APPROXIMATELY THIS TIME NEXT
YEAR. HOT LOSANGELES DEPARTMENT
OF WATER AND POWER NOT SALT
RIVER PROJECT WHICH IS THE
PHOENIX AREA WHICH IS.
BASICALLY THE SAME SIZE AS
DEPARTMENT WATER POWER.
AND THE CITY OF SEATTLE ARE ALL
SET TO GO WHEN IN A TWENTY
TWENTY OTHER CURRENT SCHEDULE.
SO THAT IS A BIG PARADIGM SHIFT
AND I SAY THAT BECAUSE AS A. PUP
AS A MARKET SEGMENT PUBLIC POWER
IS PROBABLY THE MOST CYNICAL
AND.
AND I SAW
SKEPTICAL AND CAUTIOUS.
IT COMES TO A THE DEVELOPMENT OF
THESE REGION MARKET SO YOU SEEN
A CHANGE.
AND IF THE CHANGES DRIVEN BY THE
CHANGING ENVIRONMENTS AND THE
OPERATIONAL CHALLENGES THAT
THOSE AT DIS.
ARE ALL FACING PERHAPS NOT TO
THE SAME EXTENT THAT THE ISO WAS
FIXING BECAUSE OF THE AGGRESSIVE
POLICIES. THAT WE PUT IN PLACE
BUT IN ONE WAY SHAPE OR FORM SO
THAT'S.
IT'S A HARBINGER OF THE CHANGING
ENVIRONMENT NOT JUST HERE BUT
ELSEWHERE IN THE WEST.
THE I. AS IT WAS ALSO.
MAKING CHANGES TO ITS MARKET TO
BETTER INTEGRATE.
RENEWABLES AND THEN PROPOSING
TO EXTEND THOSE CHANGES INTO
THEIR DAY AHEAD MARKET AND
EXPAND THAT TO THE ENTIRE E. I
AM FOOTPRINT.
THIS IS GOING TO INVOKE A HOST
OF DIFFICULT POLICY AND CHOICES.
CITY STATE ASSOCIATED WITH
MAKING SURE THAT RESOURCE
ADEQUACY IS MAINTAINED.
A WHETHER THERE ARE GOVERNMENTS
CHANGES THAT ARE NECESSARY HOW
TRANSMISSION COSTS WILL BE
ALLOCATED.
I'M BUT A IT IT APPEARS TO BE
WELL ON ITS WAY IT APPEARS TO BE
HAPPENING. AND AT THAT POINT IN
TIME
THE VOLUMES THAT ARCHIE
EXCHANGED AND TREATED THROUGH
THE I SO CENTRALIZED MARKET WILL
GO UP BY LEAPS AND BOUNDS OVER
WHAT IS. CURRENTLY DONE IN THE
E. I. M. ALL THIS IS GOING TO
HAPPEN.
ON OR IS SET TO BE PROPOSED AND
IT IN MY OPINION IS LIKELY TO
HAPPEN.
WITHOUT STATUTORY A.
SO THE LAST DEVELOPMENT THAT'S
HAPPENING IS.
ON THE I SO IS HOLDING ITSELF
OUT AS A PROVIDER OF RELIABILITY
SERVICES OR RELIABILITY
COORDINATOR SERVICES
SPECIFICALLY.
AND.
MANY THINGS CAN CHANGE BUT I
WOULD SAY THAT.
IT'S LIKELY THAT SIXTY FIVE OR
SEVENTY PERCENT OF THE DEMAND IN
THE WESTERN UNITED STATES WILL
TAKE RELIABILITY COORDINATOR
SERVICES FROM NASA.
SO NO ONE WOULD OF THOUGHT IN
TWO THOUSAND FOURTEEN ONLY WENT
DOWN THIS A PATH OF ENERGY
IMBALANCE MARKET THAT ANY OF
THIS THAT THIS KIND OF PROGRESS
WHAT HAPPENS IS.
I SOMEONE ON A COLD A THAT WAS
ON YESTERDAY SAID THAT THE
WESTERN UNITED STATES ITS NEVER
MOVED. THIS QUICKLY A ASIT
RELATES TO CHANGES IN THE
INDUSTRY I WILL SAY THAT THAT'S
PERHAPS A LOW BAR.
AND BECAUSE WE HAVE A CHIP MOVED
VERY QUICKLY OFTEN.
BUT THE EH BITE.
IRRESPECTIVE OF STATUTORY
CHANGE.
INDUSTRY ITSELF IS EVOLVING TO
TACKLE THE CHALLENGES THAT
MISTER RUFF LEADER HAS HAS LAID
OUT.
SO IN TWENTY TWENTY. WERE GONNA
HAVE AN E. I. M.. THAT IS LIKELY
TO BE WELL OVER HALF OF THE LOAD
IN THE WESTERN UNITED STATES.
WE COULD HAVE BY THEN AN
EXTENSION THAT EXPANSION OF THEY
HAD MARKET FUNCTIONALITY TO
BETTER OPTIMIZE THE COMMITMENT
OF RESOURCES IN A FORWARD TIME
PERIOD. THAT.
IS THAT SCENE I AM
FOOTPRINT OR PERHAPS EVEN A
SLIGHTLY BEYOND.
WELL HAVE WE COULD VERY WELL
HAVE SEVENTY PERCENT OF THE WEST
TAKING RELIABILITY SERVICES FROM
THE I SO.
THIS IS GOING TO HAPPEN.
.
IN MY OPINION WITH OR WITHOUT.
GEORGE.
SO WORST WE'RE TAKING A LOOK AT
THE I ESOS GOVERNANCE.
SORT OF IN THAT CONTEXT OF THE
EVOLUTION OF THE INDUSTRY AS A
WHOLE.
SOME OF THE THINGS THAT HAVE
COME UP.
I BELIEVE I AGREE WITH MR
FRIEDMAN THIS IS A ONE WAY
TICKET AND SO THAT HEIGHTENS THE
IMPORTANCE.
OF THE CHURCH OF THE DECISIONS
THAT WERE MAKING.
CHANGES THAT WOULD HAVE TO BE
AND PUT IN PLACE TO.
EXTRICATE A LARGE UTILITY FROM A
CENTRALIZED MARKET AND THE
LITIGATION THAT WOULD ENSUE.
ART ARE NOT TRIVIAL.
.
I DON'T AGREE WITH MISTER
FREEMAN THAT STATES WILL BE BIT
PLAYERS
STATES ARE NEVER BIT PLAYERS.
OUT WHILE THE LANGUAGE IN THE
BILL RIGHT NOW IS NOT A SPECIFIC
AS THE WHITE PAPERS THAT WERE
PUT OUT IN TWO THOUSAND SIXTEEN.
MY I ALWAYS VIEWED THAT AS JUST
DETAIL TO FALL.
STATES ARE NEVER BIT PLAYERS IN
OTHER ORGANIZED MARKETS STATES
HAVE MEANINGFUL ROLES
PARTICULARLY ON ISSUES LIKE
TRANSMISSION OST ALLOCATION.
AND.
PROCUREMENT ISSUES THAT CUT
ACROSS.
I STATE JURISDICTION.
SO.
WE NEED THINK HARD ABOUT THE
IMPACTS OF THOSE IN CALIFORNIA.
THINK THERE ARE SOLUTIONS OUT
THERE.
ON.
FINALLY AND.
A MISTER FRIEDMAN AND DISCUSS
THE OPTION OF HAVING CALIFORNIA.
PUBLIC POWER BALANCING
AUTHORITIES JOIN THE ISO AS A
MENTIONED YOU HAVE.
.
BANK EN LA THE TWO LARGEST
PUBLIC POWER BOUNCING
AUTHORITIES IN CALIFORNIA.
BY A LARGE MARGIN.
ALREADY SET TO BECOME E. I
AMENITIES BUT BEYOND THAT.
NEVER BEEN AN ISSUE OF.
A PHILOSOPHICAL OBJECTION.
IT'S BEEN IN ISSUE OF. WHERE THE
DOLLARS AND CENTS AND THE
IMPACTS ON LOCAL DECISION
MAKING?
AND SO THOSE DOES.
COST BENEFIT ANALYSES ARE ALWAYS
ON GOING.
AND WHEN. WE LOOK AT A IT IN
TERMS OF.
SHOULD WE JOIN THE AYSO WHICH A
PTO DESPAIN TRANSMISSION ARE
IT'S WELL THAT DO LOWER RATES
WHAT WILL THAT DO TO OUR ABILITY
TO MAINTAIN AND.
A DECISION MAKING OVER OUR
RESOURCES.
THAT'S THE BALANCING ITS NOT TO
SO I DON'T I DON'T KNOW WHAT
THERE IS BEYOND BACK THAT WOULD
NEED TO. TAKE PLACE THAT WOULD A
MOVE IN THE DIRECTION THAT
MISTER FRIEDMAN SUGGEST.
SO BATS A GENERALLY WHAT HAD
FOR YOU TODAY THERE'S A LOT
GOING ON HARDLY THE INDUSTRY CAN
HARDLY KEEP UP.
R. THAT'S GOING THAT PACE OF
CHANGE IS GOING TO HAPPEN
IRRESPECTIVE
OF WHAT HAPPENS IN THE
LEGISLATURE THIS YEAR.
AND WE LOOK FORWARD TO WORKING
WITH YOU ON HOWEVER THAT JUST
GOVERNMENT'S DISCUSSION FOR THE
ISA CONTINUES.
WELL THANK YOU I APPRECIATE ALL
OF YOU AND YOUR PRESENTATIONS
AND CERTAINLY.
YOU KNOW WILL BE THE FIRST TO
SAY WE FEEL. OF THE CHANGE
REFILL HOW RAPIDLY THINGS ARE
HAPPENING IN THE MARKETPLACE
BECAUSE IT FINDS ITS WAY TO THIS
COMMITTEE IN ONE FORM OR
ANOTHER.
AND SO WE'RE TRYING TO RECOGNIZE
THE IMPORTANCE OF WHAT THE
CONCEPT OF RACIALIZATION COULD
MEAN IN TERMS OF OUR FUTURE.
AND WE WANT TO MAKE SURE THAT WE
HAD A PROCESS ONE THAT WAS
TRANSPARENT ONE THAT WAS
DELIBERATE ONE THAT ALLOWED FOR.
THE SHARING OF A VARIETY OF
IDEAS AND AS YOU CAN HEAR JUST
IN THIS PANEL ALONG HERE ARE.
DIFFERENT POINTS OF VIEWS ON
WHAT.
A REALIZE MARKET MAY MEAN.
TO THE FUTURE OF THE RATE
PAYERS IN CALIFORNIA SO WE DO
WANT TO MAKE SURE THAT WE'RE
DOING THE RIGHT THING IN MOVING
AT THE RIGHT SPEED AND TAKING
THE RIGHT INFORMATION AND. I DID
WANNA AND I'LL TURN TO OTHER
MEMBERS BY DO WANT TO ASK A
QUESTION REALLY TO.
TO GET.
MISS WHISTLING YOUR.
HE RESPONSE.
TO MISTER MISTER FRIEDMAN'S.
SUGGESTION ABOUT THE POLICIES
AND.
CONFLICTING POLICIES I THOUGHT
IN YOUR PRESENTATION WAS. A. A
REFERENCE TO.
I ESPECIALLY AS YOU LOOK AT.
.
ENERGY THAT'S COMING IN FROM
OTHER STATES HOW THAT'S GOING TO
BE PRICED AND WHAT THE IMPACT
COULD BE TO OUR POLICIES IN.
TERMS OF A THE RENEWABLE
STRATEGIES THAT WE'VE ALREADY
PUT IN PLACE AND HOW
REGIONALIZATION CREATES A
DIFFERENT KIND OF OPPORTUNITY
AND NO IN THE BILL WE HAVE
REQUIREMENTS FOR GHG TRACKING.
CANOE KIND OF THE LOOT.
EXPAND ON THAT A LITTLE BIT IN
TERMS OF.
POLICIES AND POTENTIAL CONFLICTS
THAT.
WELL I.
SHIRT LET ME.
ONE THING THAT COMES TO MIND SO.
MATT DID MENTION THAT HE HE
FEELS THAT THE OUR PS WOULD BE
IN JEOPARDY IF WE WERE TO MOVE
TO A WESTERN REGIONAL ENERGY
MARKET AND SO.
I SIMPLY TALKING ABOUT IS THAT
THE WAY THE RPF THE STRUCTURED
RIGHT NOW THERE.
THERE'S AN EMPHASIS ON
PURCHASING ELECTRICITY THAT IS
EITHER LOCATED INSIDE THE STATE
OF ARE ACTUALLY SORRY NOT ONLY
LOCATED INSIDE CALIFORNIA
BECAUSE THAT WOULD VIOLATE THE
COMMERCE CLAUSE. BUT IS DIRECTLY
INTERCONNECTED TO THE CAL I SO
OR IF IT'S NOT I CAN BE.
.
CAN BE TRANSMITTED IN ON AN
HOURLY BASIS AND COUNTED AS SUCH
AND IF WE WERE TO EXPAND TO A
WESTERN AYE SO. THEN ANYTHING
THAT'S DIRECTLY INTERCONNECTED
INTO THE WESTERN AYE SO NOT JUST
THE CAL I SO WOULD BE CONSIDERED
BUCKET ONE AND SO. IN EFFECT IT
WOULD PUT LESS OF AN EMPHASIS ON
THE REMAINING PROCUREMENT WE
NEED TO DO UNDER THE CURRENT OUR
PS REQUIREMENT.
TO BUILD PROJECTS IN STATES.
AND I DON'T DENY THAT THAT'S A
RISK BUT I GUESS THE THING THAT
I THINK ABOUT IS NUMBER ONE.
A LOT OF PROCUREMENT HAS ALREADY
HAPPENED TO ME THAT FIFTY
PERCENT AND IT'S ALREADY LOCKED
DAN.
THE BULK OF REMAINING
PROCUREMENT THAT NEEDS TO
HAPPEN.
I THINK IS TO BE DONE BY THE
CCA'S
THE COMMUNITY CHOICE AGGREGATORS
THE CCA'S HAVE BEEN VERY.
OUTSPOKEN AND AND IN FACT
THERE'S A LOT OF PUBLIC PRESSURE
ON THEM TO DO AS MUCH IN STATE
DEVELOPMENT AS POSSIBLE
OBVIOUSLY THEY'RE DOING OTHER
THINGS TO. KEEP THEIR OPTIONS
OPEN BUT I DO THINK THAT THERE
ARE OTHER OPPORTUNITIES TO PUT A
THUMB ON THE SCALE FOR IN STATE
DEVELOPMENT EVEN IF IT'S NOT.
THE RP ES THAT'S DOING THAT.
I ALSO THINK THAT WE'VE
ACKNOWLEDGED THAT THE OUR PS IS
BECOMING LESS AND LESS OF THE
TOOL WE'RE GONNA USE TO DRIVE
RENEWABLE PROCUREMENT IN THE
FUTURE SO.
MY PERSONAL OPINION IS THAT IT
DOESN'T MAKE SENSE TO DO AN
EIGHTY PERCENT ARE PS FOR EVERY
UTILITY. LOAD SERVING ENTITY IN
THE STATE WE ARE GONNA HAVE TO
MOVE TO SOMETHING THAT'S A
LITTLE BIT MORE FLEXIBLE.
RECOGNIZING THE NEED TO BE MORE
FLEXIBLE TO ACCOMMODATE ALL
THESE RENEWABLES AND SO I THINK
THAT. IT'S BEEN IT THE WAY WE
STRUCTURE THE OUR PS HAS BEEN A
REALLY IMPORTANT AND EFFECTIVE
WAY TO DRIVE IN STATE
DEVELOPMENT THAT. IS GOING TO
CONTINUE TO HAPPEN NO MATTER
WHAT.
AND IN MY MIND THE BENEFITS OF A
REGIONAL GRADE TO.
BRINGING RENEWABLES ONLINE
FASTER MORE COST EFFECTIVELY.
OUT WAYS.
THE CONCERNS THAT WE'RE NOT
GONNA GET QUITE AS MUCH IN STATE
DEVELOPMENT AS WE WOULD
OTHERWISE.
S. PURSUIT.
I WOULD LIKE TO HEAR.
ANY OF THE OTHER PANELISTS
RESPOND TO MISTER FRIEDMAN SIR.
STERN ABOUT.
.
HOW THE WESTERN REGIONALIZATION
WOULD? STRENGTHEN THE CASE FOR
FEDERAL PREEMPTION.
IT WOULD SEEM TO ME THAT.
ANY.
REFORM THAT THAT.
TAKE THIS FURTHER IN THE
DIRECTION.
AWAY FROM CALIFORNIA GOVERNMENTS
TO ENTER STATE GOVERNMENTS.
IS GOING TO ONLY STRENGTHEN.
A CASE FOR FEDERAL PREEMPTION
AND FEDERAL AN INTERVENTION.
WHICH YOU KNOW I HAVE AS WE'VE
SEEN THE LAST TWO WEEKS.
WELL WE HAVE A HOSTILE
ADMINISTRATION.
TO CALIFORNIA'S POLICIES.
HOW THAT WOULD NOT?
OPEN UP THE DOOR TO THE
POTENTIAL FOR. THE COMPLETE
GUTTING OF ALL OF OUR.
GREENHOUSE GAS AND.
POLLUTION EFFORTS THAT WERE
SURPRISED AT HEARING IN THE
STATE OF CALIFORNIA.
IF IT'S POSSIBLE TO DO THAT.
IT'S POSSIBLE FOR THEM TO DO
THAT NOW.
NOTHING CHANGES THE FACT THAT
THE GUY CALIFORNIA'S.
POLICIES ARE SUBJECT TO A COMP
ARE SUBJECT TO COMMERCE CLAUSE
AND THAT'S BEEN THE CASE SINCE
SEPTEMBER NINE EIGHTEEN FIFTY
WHEN WE JOINED THE UNION THAT
THE COMMERCE CLAUSE SUPPLIES SO.
IF OUR POLICIES CONFLICT WITH
THE COMMERCE CLAUSE AND SO WE
CAN MAKE AN ARGUMENT THAT. YOU
KNOW THAT'S THE CASE.
THEN THAT'S A PROBLEM BUT
THAT'S A PROBLEM TODAY SURE I
WHETHER WE'VE D. WHETHER ALASKA
JOINS US OR WHETHER NEVADA JOINS
US IT'S STILL A PROBLEM. TODAY
LIKEWISE UNDER THE FEDERAL POWER
ACT.
WE ARE SUBJECT TO.
TODAY.
WITH THE SINGLE.
WITH A SINGLE STATE AYE SO AYE
AND WE WERE SUBJECT TO THE
FEDERAL POWER ACT PRIOR TO PRIOR
TO THE EYES OF I WAS ON THE
LOSING END OF LITIGATION. AND
NINETEEN NINETY FIVE ON THAT
ISSUE.
IT IF YOU'RE IF YOU IF YOU'RE A
DOT CONSISTENT WITH THE FEDERAL
POWER ACT YOU'RE YOU'RE EXPOSED
AS WELL. MISTER.
FRIEDMAN RAISED A HUGE CASE
WHICH WAS A MARYLAND CASE
AND THE SUPREME COURT WENT OUT
OF THEIR WAY IN THAT CASE TO SAY
WAS VERY NARROW WHAT THEY WERE
WHAT WOULD THEY WERE FOCUSED ON
WHICH WAS BASICALLY. A THE FACT
THAT THAT THAT THESE WERE NOT
BILATERAL CONTRACTS.
THERE WOULD NORMALLY BE.
RECOGNIZE BETWEEN TWO PARTIES
BUT THAT THIS STATE TRIED TO
TIED THEIR POLICY TO SOMETHING
THAT.
TO TO A FORK RATE AND THAT'S
THAT'S THE ONE THING THAT SET
OFF A THAT PROBLEM WE HAVE
HUNDREDS IF NOT THE A WITH
HUNDREDS OF CONTRACTS.
THAT ARE HONORED WITH RESPECT
TO RENEWABLE CONTRACTS WITH
GREAT RESPECT GAS CONTRACTS.
RESPECTED ALL KINDS OF THINGS
THAT ARE DIRE NOT IMPACTED BY
THAT SO I DON'T SEE THAT THERE'S
ANY RISK ADDITIONAL RISK THAT OF
HAVING THE MULTISTATE BODY.
OR MULTI JURISDICTIONAL BODY.
THEN WE ARE ALREADY FACE I
THINK THAT'S AT THE HEART OF THE
DISPUTED THAT THE TWO OF US ARE
HAVING. BUT I JUST DON'T SEE IT.
I I JUST WELL I I JUST DON'T
UNDERSTAND MEN UNDERSTAND THAT
ANYTHING THE SUBJECT TO
LITIGATION JUST AS WE'VE SEEN.
WITH OUR A.
YOU KNOW.
SANCTUARY STATE LAWS BEING
CHALLENGED BY THE NEW UNITED
STATES DEPARTMENT JUSTICE BUT IT
SEEMS LIKE ANY DIRECTION. BY AND
A ANY MOVEMENT TOWARD A MULTI
STATE.
GOVERNING STRUCTURE WHICH ONLY.
MAKE THE FEDERAL CASE STRONGER
FOR PREMIUMS.
IT'S HARDY PRODUCED.
DID EXTENT IT'S IT'S A STRONG
CASE UNDER UP LET'S USE THE
FEDERAL POWER ACT.
IT'S GOING TO BE A STRONG CASE
THAT AS I SAID REGARDLESS OF
WHETHER NEVADA'S IN IT OR NOT.
OKAY IF IT'S VIOLATING THE
FEDERAL OF FEDERAL POWER ACT
THAT'S GOING TO BE A PROBLEM.
AND.
AYE AYE THOUGH IF YOU WOULD
WOULD YOU. WHEN IT WHEN I'M
LOOKING AT THE OTHER CASES THAT
OF POPPED UP NATIONALLY AYE THE
DEITIES NORMALLY DON'T HINGE ON
WHETHER OR NOT. IT IT IT'S MULTI
STATE OR NOT TURNS OUT THAT
WHERE WE AND NEW YORK ARE THE
ONLY TWO SINGLE STATE ARTIOS.
SO THERE THERE IT IS THERE IS
AN IMPACT THERE'S SAID TO FAIRLY
SMALL COMMUNITY OF A OF ENTITIES
BUT I'M NOT SURE IF THERE'S A.
DISTINCTION BETWEEN MULTI STATE.
YOU KNOW POWER TRANSMISSION OR
OUR POWER PROCUREMENT.
VERSES MULTI STATE GOVERNMENTS.
AND AND IT'S MY UNDERSTANDING
THAT AND CORRECT ME IF I'M WRONG
MISTER FRIEDMAN BUT MY IS MY
UNDERSTANDING THAT. THIS EFFORT
IS.
SEEKING TO TAKE THE GOVERNMENT
AND GOVERNMENTS FROM AS YOU
INDICATED.
THE APPOINTMENTS.
BY OUR GOVERNOR AND OUR STATE
SENATE.
TO A MULTI STATE GOVERNANCE
STRUCTURE.
IF I MAY ASSEMBLY MEMBER ON IT
ACTUALLY IS IN A MULTI STATE
GOVERNANCE STRUCTURE IT IS NOT
TETHERED TO ANY STATE
GOVERNMENT.
UNDER THE PROPOSAL IT WOULD BE
A. PURELY INDEPENDENT BOARD AND
FOR QUIT HAVE SOLDIERS DICTION
OVERSIGHT WORSE TODAY WE HAVE A
SYSTEM WHERE FOR DOES HAVE
OVERSIGHT JURISDICTION OVER THE
CALIFORNIA AYE SO. BUT THE ISO
WAS ALSO RESPONSIBLE TO THE
STATE OF CALIFORNIA.
ON I WANT TO.
AGREE WITH YOUR CONCERN
OBVIOUSLY SINCE I RAISE THAT I
AGREE WITH THAT.
.
THERE HAVE BEEN CASES FOR
EXAMPLE THE STATE OF MINNESOTA
ENACTED A LAW THAT PROHIBITED
THE IMPORT OF COAL FIRED
ELECTRICITY INTO THE STATE
MINNESOTA IS PART OF THE MIDWEST
INDEPENDENT SYSTEM OPERATOR.
SOME COOPERATIVES IN NORTH
DAKOTA SUED THE STATE OF
MINNESOTA AND THEY GOT A THREE
OH NGUYEN IN THE EIGHTH CIRCUIT.
NAM AND THE JUDGES IN THE EIGHTH
CIRCUIT THAT RULED AGAINST THE
STATE.
WERE INFLUENCED BY THE FACT
THAT MINNESOTA WAS PART OF A
REGIONAL TRANSMISSION OPERATOR
AND THAT THEIR POLICIES
IMPERMISSIBLY INFRINGES UPON
FORK JURISDICTIONAL WHOLESALE
MARKET MECHANISMS AND RATES.
I THINK WE ARE VERY LIKELY TO
SEE SIMILAR CHALLENGES IN. A
WESTERN RTO I CAN'T TELL YOU
WHO'S GOING TO WIN AND WHO'S
GONNA LOSE THAT'S KIND OF A ROLL
OF THE DICE IN THE COURTS. ON
BUT WE WILL HAVE MORE INTERESTED
PLAYERS IN THE WEST
SPECIALLY COLERIDGE STATES
THAT ARE VERY CONCERNED ABOUT
THE APPLICATION OF CALIFORNIA'S
GREENHOUSE GAS POLICIES.
IF IT TURNS OUT THAT ONE OF
THEIR COAL FIRED PLANTS WITH
TURNED ON DISTURB CALIFORNIA
UNBEKNOWN TO THEIR KNOWLEDGE AND
WE SEND THEM A BILL FOR THEIR
GREENHOUSE GAS COSTS.
WHAT'S THEIR REACTION LIKELY BE.
DOWN THERE ARE GEARING UP TO SUE
US
AND I ALSO SEE A SITUATION WHERE
THE CREATION OF AN RTO WAS GOING
TO REQUIRE A LOT OF FOLK
OVERSIGHT INVOLVEMENT IN
APPROVAL OF TARIFFS.
LOOK.
THE TRUMP ADMINISTRATION HAS
DECLARED WAR AND. ON A NUMBER OF
FRONTS
I DON'T THINK WE I THINK IT
WOULD BE NAIVE TO ASSUME.
THAT IN THIS SITUATION
THEY'RE GONNA TAKE A PASS ON
USING SUCH AN OPPORTUNITY TO GO
AFTER CALIFORNIA'S CLEAN ENERGY
LEADERSHIP.
IN FACT I IMAGINE ANY MEMBER OF
THE FOR WORK WHO SUCCESSFULLY
DOES THAT IS GOING TO GET A
PROMOTION FROM THIS PRESIDENT.
SO. THIS IS NOT YOUR PARENTS
FOR.
THEM WE ARE IN A BRAVE NEW WORLD
AND I THINK CALIFORNIA NEEDS TO
TAKE ALL MEASURES IT CAN'T
PROTECT ITSELF. AGAINST
OPPORTUNISTIC WEAPONIZATION OF
FEDERAL JURISDICTION WHICH IS
WHAT WE'RE LOOKING AT AND
REGIONAL LIVES IN THE I SO PUTS
US AT DEEPER RISK ON THAT FRONT.
ASSEMBLY MEMBER. THAT GUT
FEELING AS HOLD UP JUST YET A
SECOND I I WANT TO BE ABLE TO
GIVE.
OF THE MEMBERS OPPORTUNITY ASK
QUESTIONS AND I AND I KNOW YOU
GUYS ARE ALL IT'S IN THE
RESPOND.
OF SO I'M GONNA TURNTO DOCTOR
QUIRK AND HE CAN RECOGNIZE YOU
CAN MAKE A QUESTION OF.
THAT PICKS UP ON THE LAST ONE
AND GIVES USED ANYONE OF YOU AN
OPPORTUNITY SPOT.
ARM MODEL BE MORE OF A COMMENT
FIRST OF ALL THANK YOU JUSTICE
MACNEE JOHNSON THANK YOU
JUSTICE.
ARE FRIEDMAN.
I WOULD JUST LIKE TO SAY WE'RE
NOT GOING SETTLE FOR US THIS
AFTERNOON.
SO DON'T WORRY YOU'LL GET IT
MORE OF A CHANCE TO MAKE YOUR
ARGUMENT.
I'M I WILL SAY THAT AT A.
OUR CONFERENCE.
THAT OF THE CALIFORNIA.
FOREIGN YOU HAVE FOUND
FOUNDATION FOR OUR. ENVIRONMENT
IN THE ECONOMY HAD WE HEARD FROM
ALISON CLEMENTS
OF THE NATURAL RESOURCES DEFENSE
COUNCIL.
SHE IS DIRECTOR OF THE
SUSTAINABLE FOR PROJECT AND FOR
THOSE WHO BEEN HEARING FOR
THAT'S THE FEDERAL ENERGY
REGULATORY COMMISSION. AND ITS
GROUP OF I THINK FIVE
COMMISSIONERS WHO SET. OF
VARIOUS POLICIES BASED UPON.
THE LOS ARE SHE REFERRED TO THE
MULTI STATE ARE SHE GAVE US A
LECTURE ON THE MULTI STATE.
OUR REGIONAL BALANCING THE.
ORGANIZATIONS.
ARM AND IT WAS HER JUDGMENT THAT
THIS DID IN FACT HELP.
OUR WITH THE ABSORPTION OF
RENEWABLES.
AGAIN WE'RE NOT GOING TO SETTLE
THIS TODAY.
I THINK THE IMPORTANT THING IS
TO BE AWARE OF MISTER FRIEDMAN'S
CONCERNS AND LOOK AT THEM
CAREFULLY.
I CERTAINLY MUCH RATHER JOINED A
JUSTICE ARE SMUTTY JONES ARE.
I ESTO THEN.
JUSTICE FRIEDMAN SCIENCE SO.
BUT. THE YOU KNOW YOU'VE RAISED
GOOD QUESTIONS AND WE'RE GOING
TO NEED TO RESOLVE THEM AND I
WANT TO THANK YOU VERY MUCH.
AND JUST SAY.
I'M PREPARED TO LISTEN AND
LEARN AND I KNOW THE CHAIR AND
THE REST OF THIS YEAR ARE AS
WELL THANK YOU.
I HEARD IT MISS REYES ASKED ME
TO MAKE A QUESTION BUT I ALSO
ALIGN MY REMARKS OF MISTER QUIRK
AND WAS ASKING CAN THINK ABOUT
THAT THE GUY JUST ARM WRESTLE
OFFER SOMETHIN EVERYTHING TO
SEE.
WHO WINS THEM YOU CERTAINLY
THERE'S A DIVERSITY OF OPINION
AS THERE SHOULD BE RIGHT AS
THERE SHOULD BE ONE WE'RE
LOOKING AN UNDERTAKING SOMETHING
THIS OF THIS MAGNITUDE?
WAS REYES ONE THINKS THIS
MOVEMENT IN IN A LINE OF SMALL
THINGS THAT I WAS ASKING BUT
EARLIER.
.
ARE THERE ARE THE RISKS THAT
OTHER STATES COULD THEN
SUBSIDIZE A DIRTY RESOURCES LIKE
COAL. NAM LOWERING THE COST TO
MAKE THEM MORE COMPETITIVE.
OLD HABITS ARE HARD TO BREAK
THAT WAS A QUESTION IT IS WOULD
THERE BE THAT POTENTIAL OF OTHER
STATES SUBSIDIZING IN ORDER TO
REDUCE COSTS.
MY TAKE A CRACK AT THIS M. SO.
I THINK THE STATES HAVE ALL THE
TOOLS THEY WOULD NORMALLY HAVE.
LAND USE POLICY ENVIRONMENTAL
POLICY TAX POLICY PROPERTY TAX
POLICY.
TO FURTHER THE ECONOMIC
DEVELOPMENT THAT THEY WANT.
AND SO IS THAT A RISK.
I THINK IT PROBABLY IS AND
ESPECIALLY WHEN YOU LOOK AT SOME
STATES AND THAT'S A HANDFUL
WHERE COLE IS SUCH AN IMPORTANT
PART OF THEIR.
I WILL ALSO SAY AND I'M NOT AN
EXPERT ON COAL DEVELOPMENT BUT
MANY OF THE PUBLIC POWER
ENTITIES IN THE WEST ARE HEAVILY
HEAVILY.
AND THEY SEE IT AS DYING IF NOT
ALMOST AT.
BECAUSE YOU'RE NOT TALKING ABOUT
YOUR LOT OF THE COAL PLANTS ARE
COMING OFF CONTRACTS IN THE MID
TWO THOUSANDS.
AND YOU'RE NOT TALKING ABOUT A
FEW MILLION DOLLARS HERE AND
THERE.
AND IT'S NOT JUST THE PLANTS
IT'S THE MARKETS.
WE'RE TALKING ABOUT TENS AND
TENS OF BILLIONS OF DOLLARS OF
INVESTMENT. IN THE CONTEXT OF.
OF KEEPING THESE RESOURCES IN
INVESTING IN THEM TO BE READY
DECADES LATER INTO THE FUTURE SO
TO HAVE A CRYSTAL BALL.
NO.
ARE THEY LOOKING AT INVESTING
BILLIONS OF DOLLARS IN THESE
PLANTS TO KEEP THEM ALIVE NET.
SO I AM.
IT'S AN IMPORTANT ACTUALLY
IMPORTANT THING ONE OF THE MANY
VARIABLES
THAT WE NEED THINK ABOUT.
BUT I HADN'T SEEN A COMPELLING
CASE THAT WE'RE GOING TO
REINVIGORATE COLON ANY ANY
SOONER.
AND IN THE A SPIRITED DOCTOR
QUIRKS COMMENTS AGAIN WE WILL
HAVE OTHER CONVERSATIONS ON THIS
BUT I WANTED TO. TURN TO THE
PUBLIC AND SEE IF THEY'RE ANY.
INDIVIDUALS WOULD LIKE TO TAKE
NO MORE THAN THREE MINUTES.
PRESENT THERE THOMAS.
GOOD AFTERNOON CHAIR MEMBERS.
ELEMENT HERE ON BEHALF SIERRA
CLUB CALIFORNIA. TEN
REPRESENTING FIVE HUNDRED.
SO I FORTY FIFTY THOUSAND
MEMBERS AND SUPPORTERS.
I JOIN US UP BY SAYING I WE
UNDERSTAND THERE THERE MAY BE
MANY MANY BENEFITS TO REGIONAL
GREAT ORIGINAL GOOD UNDER THE
RIGHT CONDITIONS.
.
HOWEVER WE HAVE SERIOUS CONCERNS
ABOUT WHETHER THOSE RIGHT
CONDITIONS WILL BE EFFECTIVELY
ADDRESS.
SPECIFICALLY BELIEVE THE
INDIVIDUALIZATION ACTION MUST
BE.
GUARANTEES DO THE FOLLOWING
WHICH IS AN EMPHASIS OF OF WHAT
MAY HAVE AUDIT AND SAID.
.
AND LET'S REDUCE GREENHOUSE GAS
EMISSIONS THROUGHOUT THE REGION
SIGNED UP FOR CALIFORNIA TO
CONTINUE TO INVEST IN RENEWABLE
ENERGY ON ITS OWN. ORIGINAL
GREAT IS DESIGNED IN A WAY THAT
WILL EXPAND OR EXTEND THE LIFE
OF CULT PART IN NATURAL GAS
POWER PLANTS.
IT MUST BE I MESSAGES LOOK LIKE
EVOLUTION IS NOT ACCEPTABLE FOR
REGIONAL EFFORTS TO RESULT IN
GREATER USE OF NATURAL GAS OR
COAL PLANTS.
THEREBY INCREASING GREAT AIR
POLLUTION AYE ANYWHERE WITHIN
THE STATE AT THE REGION.
ESPECIALLY IN AND AND
DISADVANTAGED COMMUNITIES.
IT MUST ENSURE ACCOUNTABILITY TO
CONTINUE TO INNOVATE AND
ACCELERATE IN TRANSITION AWAY
FROM FOSSIL FUELS.
ANY GOOD REASONS I SUPPOSE I
MUST ALLOW CONTINUE TO. MISS A
LOT CALIFORNIA'S CONTINUED USES
LEADERSHIP ON CLIMATE CHANGE AND
IT MUST MAINTAIN CONTROL THE
TYPE OF ENERGY USED IN THE
STATE.
WE WERE THERE UNDER THE CONTROL
OF THAT NEVER PREDICTABLE TRUMP
ADMINISTRATION TO BE VERY
DIFFICULT TO PROTECT HEALTH WHEN
HIS INTEREST OF THE STATE
BECOMES PART OF THE REGIONAL
GREAT.
AND LASTLY MUST ENSURE THAT
THERE ARE CORRUPT AND USING
ENERGY AND CLEAN ENERGY IN
CALIFORNIA.
WE HAVE TO MAKE SURE THAT ANY
REGIONAL GRID.
PROPOSED DOES NOT RESULT IN A
STAGNATION OF A GROWING.
RENEWABLE AND CLEAN ENERGY JOB
MARKET IN CALIFORNIA.
THANK YOU FOR THE OPPORTUNITY TO
SHARE MY.
MISTER CHAIRMAN AND MEMBERS
SCOTT WHICH I'M HERE TODAY ON
BEHALF OF THE CALIFORNIA
COALITION OF UTILITY EMPLOYEES.
ALSO MY COLLEAGUES AS OUR D. AS.
WAS NOT FEELING WELL.
ROBBIE HUNTER S. B. REPRESENT
THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL.
AS WELL AS MY OTHER BILLY TREATS
CLIENTS THAT
SEE ME HERE OFTEN AYE WE WANT TO
THANK YOU MISTER CHAIR WE THINK
THAT AB EIGHT THIRTEEN.
DOES PROVIDE.
THE IMPETUS FOR A ROBUST
DISCUSSION.
AND AT THE END OF THE DAY OF
THIS FOR AUGUST IN NOT.
MARCH WE WOULD BE HERE SAY THAT
WE NEED DEBT PROTECTIONS NOT
PRINCIPLES.
PARTICULARLY ON JOB SPEAKING TO
YOU ASSEMBLYMAN EGGMAN.
.
I WAS A LITTLE BIT TAKEN ABACK
BY CAL ICE'S RESPONSE YOUR
QUESTION THE VERY ELOQUENTLY
SIDESTEPPED IT I THOUGHT.
.
THEY BASICALLY THEIR RESPONSE TO
YOU WAS THAT WELL IF WE REDUCE
COSTS OVERALL TO THE WHOLE
SYSTEM. THAT THAT THAT WILL
RESULT IN JOB CREATION THAT'S
THE TRICKLE DOWN ECONOMICS A
APPROACH.
WHAT THEY DIDN'T TELL YOU WAS
THAT THEIR OWN STUDY FOUND THE
S. B. THREE FIFTY STUDY WHICH
THEY REFERENCE?
FOUND THAT BETWEEN TWENTY THIRTY
TWENTY TWENTY AND TWENTY THIRTY
CALIFORNIA WOULD SEE A LOSS OF
ONE HUNDRED AND TEN THOUSAND
RENEWABLE ENERGY CONSTRUCTION
JOBS.
THAT HAS MY CLIENTS AND STATE
BUILDING TRADES VERY VERY
CONCERNED.
WE WOULD LOSE THOSE JOBS UNDER
THEIR STUDY IF WE DON'T PROTECT
THE BUCKET SYSTEM.
AND THE PROBLEM IS TO DATE NO
LAWYER HAS COME UP WITH A
SATISFACTORY. MECHANISM.
TO.
ENSURE THAT WE PROTECT THE
BUCKETS.
WELL ENTERED INTO A REGIONAL
GRID WITHOUT.
CREATING AND VERY EASY
WORKAROUND.
FOR FOLKS TO DELIVER IT AND
UNCALLED BUCKET ONE.
SO FIRST AND FOREMOST THAT ISSUE
HAS TO BE RESOLVED CONCRETE LEAD
ANY LEGISLATION SECONDLY.
WE BELIEVE THERE HAVE TO BE
CONCRETE PROTECTIONS ON.
OUTLINING EXACTLY THE
METHODOLOGY FOR HOW COST WILL BE
ALLOCATED AND HEALTH BENEFITS
WILL BE ASSESSED SIMPLY SAYING
THAT A NEW TRANSMISSION LINE
WILL MAKE IT EASIER TO IMPORT
ENERGY TO CALIFORNIA IS A
BENEFIT.
ATTENTION HE PUTS US ON THE HOOK
FOR PAYING EIGHTY PERCENT
BECAUSE THAT'S WHAT WE REPRESENT
AS FAR AS LOW TECH YOU YOU GOT
THIRTY SEVEN EIGHTY PERCENT. OF
THE LOAD.
A WE WOULD BE ON THE HOOK FOR
PAYING EIGHTY PERCENT THE COST
OF TRANSMISSION PROJECTS OUTSIDE
THE CITY CALIFORNIA LASTLY.
GOVERNANCE HAS TO BE A OUTLINED
VERY DIRECTLY AND WE THINK COULD
BE IRRESPONSIBLE IF WHATEVER'S
NEGOTIATED DIDN'T COME BACK TO
THIS BODY FOR RATIFICATION THANK
YOU.
MISTER CHAIRMAN MEMBERS.
.
THANK YOU VERY MUCH FOR GIVING
THE OPPORTUNITY BRIEFLY TO MAKE
A COUPLE QUICK POINTS ARE NOT TO
BE REDUNDANT MIKE MATIC COUNSEL
FOR CONSUMER WATCHDOG. AND I AM
OLD ENOUGH TO HAVE BEEN HERE
DURING THE ORIGINAL.
GOVERNMENT DEREGULATION OR
ENERGY DEREGULATION WHEN THE.
GOVERNOR PETE WILSON PUSH TO
JIM BROUGHT HIS BILL.
LATE IN THE NINETY SIX SESSION.
THAT RESULTED IN THE FRIENDLY
FIRE ACCIDENT CALIFORNIA GET
ABOUT FORTY BILLION DOLLAR HIT.
AND DOW ROLLING BLACKOUTS.
GOVERNOR DAVIS THAT WAS
RECALLED AND.
ENRON EXECUTIVES.
WENT TO JAIL FLED THE COUNTRY
ABOVE.
I CALIFORNIA SPENT YEARS OF
REGAINING CONTROL OF ITS OWN
POWER MARKET MANAGER BUT.
NOW IF THERE IS THIS.
AND ATTEMPT I BELIEVE TO TO A
WE BELIEVE TO ATTEMPT TO OCCUR
REINTRODUCE THIS A KIND OF A
CONCEPT WHERE. WHAT HAS
HAPPENING IS THAT?
THIS.
KIND OF A BAIT AND SWITCH THAT
SAYS THAT WERE WE HAVE AN ISSUE
WITH OUR OUR POWER EFFICIENCY
HERE IN CALIFORNIA AND THAT
SIMPLY ISN'T TRUE.
WHAT THE PROPONENTS WANT IS TO
MONETIZE AND RADICALLY EXPAND A
NEW SPECULATIVE COMMODITIES
MARKET?
MUCH LIKE.
LECTURE CITY BEING BOUGHT AND
SOLD LIKE YOU WOULD FOR PORK
BELLIES.
THERE WILL BE NO WAY TO PREVENT
AN OUT OF CONTROL PRICING SCHEME
AS THERE WAS IN IN THE PAST.
AND DIRTY COAL FIRED ENERGY IS
GOING TO FIND ITS WAY INTO OUR
STATE AT THE EXPENSE OF ALL
CALIFORNIANS.
I ONCE WE GIVE AWAY THE
GOVERNOR'S IN THIS LEGISLATURE'S
AUTHORITY.
WE'RE NEVER GONNA GET BACK
SO MISTER MURATSUCHI WAS CORRECT
IN ASSUMING THAT THAT.
THAT STATES ARE IN FACT A BIT
PLAYERS IN THIS POTENTIAL
SHAKESPEAREAN TRAGEDY BECAUSE
PRE COURT HAS BEEN CLEAR.
THAT THE REGIONAL ARTIOS
AUTHORITY WILL IN FACT PREEMPT
STATE LAW.
THERE ARE SO IN IN CLOSING I
JUST WOULD LIKE TO SAY BUT MAYBE
IF WE ARE NOT MOVE ANYTHING THIS
YEAR AND MAYBE LET THE NEXT
GOVERNOR AND THIS LEGISLATURE.
DETERMINED THAT THE SAFETY OF
FUTURE CALIFORNIA'S THANK YOU
ALL VERY MUCH FOR YOUR TIME
THANK.
HI MY NAME'S TIM MCCRAE I'M THE
VICE PRESIDENT FOR ENERGY FOR
THE SILICON VALLEY LEADERSHIP
GROUP. LEADERSHIP GROUP SUPPORTS
REALIZATION OF THE CALIFORNIA
DEPEND SYSTEM OPERATOR OR ISO.
DONE RIGHT BIG TECH COMPANIES TO
LOCAL SOLAR PANEL INSTALLERS TO
SMALL FAMILY FARMS IN THE
CENTRAL VALLEY WOULD BENEFIT
FROM A FULLY INTEGRATED WESTERN
GRADE. THE ISO ESTIMATES THAT
LEGISLATION CREATE COMPARED TO
NINETEEN THOUSAND JOBS IN
CALIFORNIA BECAUSE ELECTRICITY
WILL BECOME MORE AFFORDABLE.
CLEAN ENERGY PRODUCTION WOULD
ALSO BENEFIT WE DO A LOT OF
THAT.
CURRENTLY CALIFORNIA SOMETIMES
RUSSES MORE CLEAN ENERGY FROM
RENEWABLE SOURCES THAT ARE GREAT
CAN HANDLE FORCING CLEAN
AFFORDABLE ENERGY TO BE THROWN
AWAY AN INTEGRATED WESTERN
GRIDLOCK CALIFORNIA CLEAN ENERGY
TO REACH A BROADER REGIONAL
MARKET.
COULDN'T AGGRESSION WOULD ALSO
HOPE ARE GOING CLEAN TECH SECTOR
BY ALLOWING IN STATE WIND AND
SOLAR PLANTS TO OPERATE AT FULL
CAPACITY SO WE DON'T HAVE TO
WASTE CLEAN ENERGY EVERY TIME
SUPPLY EXCEEDS DEMAND.
THANK YOU FOR YOUR TIME THANK
YOU.
GOOD AFTERNOON CHAIRMAN AND
MEMBERS OF THE COMMITTEE.
ANTONIO THEY ARE REPRESENTING
THE IMPERIAL IRRIGATION DISTRICT
OF AND WE ARE IN IN OPPOSITION
TO THE EXISTING PROPOSAL ON
REGIONALIZATION.
THIS PROPOSAL CAN RESULT IN
UNINTENDED CONSEQUENCES AND WILL
PUT IN SAY RENEWABLE RESOURCES.
AGAINST IMPORTED ENERGY FROM
OTHER STATES SOME OF IT AS YOU
HEARD ALREADY A NON RENEWABLE.
PROPONENTS OF THIS A PROPOSAL
TELL YOU THAT MOVING FORWARD.
YOU WILL BE ABLE TO EXPORT
EXCESS POWER A INTO NEIGHBORING
STATES BUT WHAT THEY HAVEN'T
TOLD YOU IS THAT YOU ALSO EXPORT
CALIFORNIA'S RENEWABLE ENERGY
INDUSTRY. AND THE GOOD PAYING
JOBS THAT COME WITH IT.
EXPANDING THE ENERGY MARKET INTO
A WESTERN AREA GRID CAN VERY
WELL SEAT CALIFORNIA'S DECISION
MAKING AUTHORITY TWENTY REGIONAL
BOARD COMPRISED OF OTHER STATES.
SOME OF WHICH DO NOT SHARE THE
SAME CORE VALUES AND PRINCIPLES
THAT WE DO HERE IN THE STATE OF
CALIFORNIA.
THE CURRENT PROPOSAL WILL ALSO
LEAVE THE SOLE AUTHORITY TO
APPROVE THE UP FINAL GOVERNANCE
PLAN IF THAT'S WHAT WE'RE GOING
TO CALL IT. A AT THE CALIFORNIA
ENERGY COMMISSION.
THAT IS VERY DIFFERENT THAN
WHAT YOU CURRENTLY HAVE.
IN LAW TODAY.
THROUGH S. B. THREE FIFTY WHICH
GIVES YOU THE MEMBERS OF THIS
BODY OF THAT FINAL AUTHORITY TO
APPROVE SO.
WE URGE THAT.
THAT NOT CHANGE AND.
HAVE THE FINAL VOTE IF ONE IS
TO HAPPEN A BY THE MEMBERS OF OF
THE LEGISLATURE. OUT AT THANK
YOU THAT THAT'S YOUR THREE
MINUTES OKAY THANK YOU THANK YOU
APPRECIATE.
THANK YOU MISTER CHAIRMAN MY
NAME IS ADAM SCALE ON CALIFORNIA
DIRECTOR WITH FOOD AND WATER
WATCH WE ARE ALSO IN OPPOSITION
TO REGIONALIZATION FOR MANY
OTHER REASONS EXPRESSED ALREADY.
WE ARE VERY CONCERNED ABOUT
CONSUMERS AND FAMILIES BEING
OVER CHARGED A WE ALREADY SEEN
REPORTS IN THE LA TIMES THAT
CALIFORNIA REPAIRS HAVE PAID
OVER SEVEN HUNDRED MILLION
DOLLARS.
FOR THE PROFITS OF SPECULATORS
IN THIS IS CURRENTLY UNDER THE
CURRENT GUY SO BOARD WHERE WE
HAVE SOME SAY. IF WE'RE GOING TO
GIVE UP THAT POWER TO AN RTO
WHERE WE HAVE NO VOTE WE EXPECT
THAT PROBLEM TO BE MUCH WORSE
WERE ALSO CONCERNED ABOUT JOB
LOSSES. AND WE WANT TO MAXIMIZE
IN STATE RENEWABLE PRODUCTION WE
WILL BE SENDING A LETTER THANK
YOU VERY MUCH THANK YOU.
GOOD AFTERNOON MY NAME IS AND
I'M ASKING SOME HERE ON BEHALF
THE CALIFORNIA RENT SICILIANS
AND REALLY ARE GRATEFUL FOR THAT
OPEN TRANSPARENT PROCESS THAT.
YOU'RE.
I'M COMMITTEE HAS COMMITTED TO
SPECIFIC BILL BUT SPECIFICALLY
WANT TO ECHO SOME ON COMMENTS I
MISS WAS LEADING THE RACE
SPECIFICALLY IN HARM'S JUST
COMMUNITIES AND HOW THIS NEW
SCHEFFEL IMPACT IS COMMUNITIES.
PACIFIC ON THE NATURAL GAS
PIPELINES AND SPECIALLY THE
PICKER PLANTS GIVEN THAT WE HAVE
SEEN EMISSION INCREASES FROM
THE.
CALLUSES STUDY THAT CAME ABOUT
HIM TWO YEARS AGO SEEM THAT AN
INCREASE ON NATURAL GAS USAGE
GIVEN THE NEW RUSSIA SO JUST
KEEPING THAT IN MIND AND REALLY
HAVING A CONVERSATION MOVING
FORWARD ON HOW WE CAN ADDRESSES
IN THIS BILL.
THANK YOU THANK.
HELLO MY NAME IS JONATHAN WITH
PATTERN ENERGY WHERE OUT WHEN A
NORTH AMERICA'S LARGEST
RENEWABLE ENERGY SUPPLY
COMPANIES. A WE DEVELOP WIND
SOLAR STORAGE AND TRANSMISSION
ARE BASED HERE IN CALIFORNIA.
AND WE SUPPORT THIS EFFORT.
WE THINK IT'S THAT A FANTASTIC
UP OPEN AND TRANSPARENT PROCESS
WE THANK YOU AND APPLAUD AND
APPLAUD THE THE BILL THAT'S COME
FORWARD.
WE UNDERSTAND THAT THERE HAS
BEEN.
SOME VERY SERIOUS CONCERNS
RAISED WE BELIEVE THEY NEED TO
BE ADDRESSED SERIOUSLY BUT WE
DON'T FORGET THE CONTEXT.
IT'S OUR UNDERSTANDING THAT A
REGIONAL ROBUST MARKET A FOR NEW
BILLS TO BUY AND SELL IN REAL
TIME TO SEND THE POWER WHERE IT
NEEDS TO GO WHEN IT'S BEEN
PRODUCED. IS ESSENTIAL UP FROM
EATING OUR CHEMICALS AS A
BASELINE HE'S BEEN STRUCTURE WE
THINK THE COST OF INACTION IS
HIGHER EMISSIONS HIGHER COSTS TO
CALIFORNIANS AND FEWER
CALIFORNIA JOBS.
WE LOVE TO BE PART OF THE
SOLUTION AND LOOK FOR TO
PURCHASE HIM PROCESS.
GOOD AFTERNOON I'M VICTORIA ROOM
WITH THE NATURAL RESOURCES
DEFENSE COUNCIL. AND WE NEED TO
SUPPORT THE WORK OF THE CHAIR
AND YOUR STAFF AND. MOVING THIS
PROCESS FORWARD AND OPEN
TRANSPARENT WAY. WE THINK THAT
REGIONALIZATION IS AN IMPORTANT
PRIORITY FOR THE STATE AND WE
NEED TO MOVE TO A CLEAN BRED AS
SOON AS POSSIBLE.
REGIONALIZATION IS ONE WAY TO
MAKE SURE THAT WE DO THAT.
EFFICIENTLY AND AFFORDABLY AND
FINALLY I JUST WANT TO MENTION.
WE DO NEED TO KEEP IN MIND LOCAL
AIR QUALITY AND WE DON'T THINK
REGIONALIZATION WILL MAKE THAT
WORSE HOWEVER THAT'S.
NOT SHOULDN'T BE THE ONLY
CONSIDERATION WE CAN ALSO LOOK
AT WAYS TO IMPROVE LOCAL AIR
QUALITY THROUGHOUT THIS PROCESS
THANK YOU.
MR TURN MEMBERS SILVIUS ALICIA
ON BEHALF OF ADVANCED ENERGY
ECONOMY WHERE BUSINESS
ASSOCIATION THAT REPRESENTS
MANUFACTURERS DEVELOPERS AND
USERS OF ADVANCE ENERGY
PRODUCTS.
I WERE HERE TODAY IN SUPPORT OF
THE REGIONALIZATION PROPOSAL WE
BELIEVE THAT IT WILL EXPAND THE
MARKET FOR ADVANCED ENERGY
PRODUCTS ACROSS THE BOARD.
INCOME WITH TREMENDOUS
OPPORTUNITY FOR ADDITIONAL IN
YOU PROJECTS JOBS AND EXPANSIONS
IN THE WESTERN REGION INCLUDING
CALIFORNIA. CURRENTLY THE
ADVANCED ENERGY SECTORIS ONE OF
THE FASTEST GROWING SECTORS OF
THE CALIFORNIA ECONOMY
SURPASSING SOME SIGNATURE
INDUSTRY SUCH AS THE FILM.
MOTION PICTURE ESOS UP INDUSTRY
AS WELL AS THE AG INDUSTRY SOBRE
GROWING AND WE BELIEVE THIS WILL
HELP US GROW EVEN FURTHER THANK
YOU VERY MUCH.
MISTER CHAIRMAN MEMBERS DOWN A
PRICE ON BEHALF THE FIX THE
GREAT COALITION WHERE COALITION
ENVIRONMENTAL ORGANIZATIONS.
RENEWABLE ASSOCIATIONS ISRAEL'S
RENEWABLE MANUFACTURERS.
I DON'T THINK IT CAN BE SAID
ENOUGH I WANT TO THANK YOU VERY
MUCH FOR THE LEVEL TRANSPARENCY.
AND DILIGENCE IN PROCESS AROUND
THIS
I THINK MOST FOLKS NO ONE HERE
THAT THIS IS AN EFFORT THAT HAS
BEEN UNDERTAKEN FOR THE LAST
THREE YEARS.
I BEHIND CLOSED DOORS WITHOUT
LEGISLATOR IN PLAN I THINK IT'S
REALLY IMPORTANT THAT WE
DAYLIGHT THIS BECAUSE THIS IS AN
IMPORTANT ISSUE. I ALSO WANT TO
NOTE THAT IN THOSE CONVERSATIONS
THERE ARE SOME IN HERE THAT HAVE
MADE STATEMENTS.
THAT WE NEED TO TALK ABOUT
BECAUSE THEY WERE READY TO SIGN
THOSE DEALS BEHIND CLOSED DOORS
AND I DO HOPE THAT THEY HAVE THE
CONVERSATION NOW. THAT THIS IS
BEING DELIGHTED.
I WANTED AND I'M SORRY THAT MR
WHICH IS NOT HERE BECAUSE I
WANTED TO KNOW WHERE HE CITED
THAT HUNDRED AND TEN THOUSAND
JOB LOSS HUNDRED TEN THOUSAND
PEOPLE. AND LOSING THEIR JOBS.
THE SAME STUDY THAT I BELIEVE HE
WAS REFERENCING WHICH IS THE
CALIFORNIA HIGHEST SO S. B.
THREE FIFTY STUDY ACTUALLY SHOWS
I HAVE A CHART HERE SHOULD
ANYONE LOOK AT IT. ACTUALLY
SHOWS THAT IF WE CONDUCT
BUSINESS AS USUAL AND DO NOT. DO
NOT ENGAGING REGIONALIZATION
DISCUSSION THE BY TWENTY THIRTY
THIS CAN BE NINETY THOUSAND NEW
JOBS CREATED. IF WE DO CONSIDER
REGIONALIZATION THERE WILL BE A
HUNDRED AND TEN THOUSAND NEW
JOBS CREATED TWENTY FIVE TO
THIRTY THOUSAND OF WHICH ARE HIS
HIGHLY SKILLED TECHNICALLY
TRAINED WORKFORCE.
IF WE WERE TO CONTINUE IN A
DIFFERENT MODEL OF
REGIONALIZATION THERE'S GOING TO
BE ABOUT A HUNDRED THOUSAND JOBS
CREATED SO I LOOK FORWARD TO
HAVING THAT DISCUSSION AS WE GO
THROUGH THIS PROCESS.
AND VERY MUCH THANK YOU.
EVEN.
GIVE ME EVERYBODY THIS IS LARA
NAVARRO WITH ENVIRONMENTAL
DEFENSE FUND. WE WORK.
ON INTEGRATING RENEWABLES I
WILL SAY IN EVERY SINGLE WAY ON
THIS CHART WE WANT TO SEE IF
THIS IS THE CHART. WE WANNA SEE
MORE RENEWABLES IN CALIFORNIA
AND OF COURSE THE CROSS THE
COUNTRY BUT CALIFORNIA IS THE
LEADER. WE HAVE TO FACE THAT.
WE BELIEVE THAT THIS POLICY
REGIONALLY CAUSATION NOT ONLY
WILL HELP US TO INTEGRATE
RENEWABLES IT WILL HELP US TO
EXPORT OUR RENEWABLE POLICIES TO
OTHER STATES.
AND THAT IS PURELY THROUGH THE
FUNCTION OF THE MARKET.
A IT ALSO IT'LL HELP LOWER
GREENHOUSE GASES IN THE LONG
TERM WE AGREE WITH AN RTC AND
OTHERS THAT AIR QUALITY SHOULD
BE LOOKED AT THIS IS NOT A
SURPRISE TO ANY OF US IN
CALIFORNIA.
THERE ARE DISADVANTAGED
COMMUNITIES THAT HIGH WORST AIR
QUALITY THAN OTHER PLACES WE
WANT THERE TO BE SOLUTIONS TO
THAT.
I WOULD MENTION ALSO THAT.
MANY THANK YOUS TO THE AUTHORS
OFFICE AND AND.
TO KELLY IN PARTICULAR WORKING
A RUNNING A TERRIFIC PROCESS ON
THIS AND REALLY TRYING TO
INTEGRATE DE UM THE THOUGHTS OF
MANY OF THE STAKEHOLDERS
INCLUDING THOSE THAT YOU HEARD
HERE. ON THE PANEL TODAY.
OVERALL I THINK THAT WE CAN GET
THERE THROUGH THIS PROCESS TO A
REGIONAL GRADE THAT IS REALLY
SUPPORTIVE OF CALIFORNIA'S
POLICIES. AND HELPS TO BRING
RENEWABLES THROUGHOUT THE WEST.
IT'S NOT THE ONLY THING WE HAVE
TO DO BUT IT'S ONE AND IT'S VERY
IMPORTANT.
IN THE LAST THING I WANT TO
KNOW IS THAT.
.
I.
CALIFORNIA IS AND WILL BE THE
ONE TO DO ITS OWN PROCUREMENT IT
IS THE WANT TO CHOOSE THE
RENEWABLE PORTFOLIO STANDARD.
RESOURCES IT IS THE WIND TO BE
ABLE TO ENFORCE ITS GREENHOUSE
GAS POLICIES THROUGH THE MARKET.
THESE THINGS DON'T CHANGE OR GO
AWAY AND JUST IN CASE WE WERE
WORRIED THAT THEY DO THEY ARE IN
THE BILL.
THIS IS ALREADY PROTECTED THE
WAY THE BILL IS WRITTEN AND I
THINK OF COURSE THE BILL COULD
BE IMPROVED NO OFFENSE AUTHORITY
STEVE BUT IT IS THERE IN
STRUCTURE. SO THANK THANK.
MISTER CHAIRMAN MEMBERS JOHN
WHITE REPRESENTED CLEAN PARKING
PAIN I WANT TO ECHO THE
SENTIMENTS ABOUT OUR HEALTH
REFRESHING THE PROCESS OF THAT
YOU'VE EMBARKED ON AND THE FACT
THAT WE'RE HAVING THESE
CONVERSATIONS AND MARCH INSTEAD
OF IN AUGUST. IS A GOOD SIGN
THAT WE'RE GOING TO GET SOME
WORK DONE OF OUR JUSTICE THE AYE
SO SAID THAT THE REGIONAL
EXPANSION IS NOT THE SOLE
SOLUTION TO.
PROBLEMS THAT WE HAVE
CREATED IN OUR SUBSTANTIAL
SUCCESS.
NEITHER SHOULD WE THINK OF THE
RENEWAL AS THE. REGIONAL GRID AS
THE SOLUTION FOR ALL OF THE
OTHER PROBLEMS THAT WE HAVE.
NATURAL GAS POWER PLANT
EMISSIONS ARE GOING UP.
TODAY WITHOUT REGIONALIZATION
BECAUSE OF THE WAY THE GRIDS
OPERATING BECAUSE WE GOT
FOURTEEN THOUSAND MEGAWATTS THAT
WE HAD TO TURN BACK ON WHEN THE
SUN GOES DOWN SO THAT'S A
PROBLEM TODAY.
A AND I THINK IT NEEDS ATTENTION
TODAY SEPARATE FROM THIS BILL OR
MAYBE AS POSTCARDS SECOND IS
MISTER WHICH SAID THE THAT THE
STAKES ON PROCUREMENT.
IN TERMS OF JOBS ISN'T A VERY
BIG CONCERN BUT I WOULD POINT
OUT THAT AT THE MOMENT.
WE'RE NOT DOING ANY PROCUREMENT
IN CALIFORNIA UTILITIES BY
ANYTHING CCA'S ARE JUST GETTING
STARTED.
WE ARE NOT BUILDING WHERE WE'RE
BUILDING OUT WHAT WE'VE ALREADY
BOUGHT.
SO TO ME THINKING ABOUT HOW TO
GET MORE CHIU THERMAL MORE LARGE
SCALE STORAGE.
OF MORE CLEAN PILE LAST THOSE
ARE THINGS THAT AREN'T
NECESSARILY THE RESPONSIBILITY
OF THE REGIONAL CURRENT.
POLLS ON THERE THAT'S OTHER WORK
WE NEED TO DO.
K. BECAUSE PROCUREMENT IS OUR
RESPONSIBILITY.
I THINK THERE'S AN OPPORTUNITY
TO STRENGTHEN OUR PROTECTION VIS
A VIS THE FEDS
BY ALIGNING WITH THE WEST COAST
GOVERNOR INSLEY GOVERNOR BROWN
IN OREGON. A GOVERNOR SANDOVAL
IN NEVADA ARE MUCH CLOSER TO OUR
POINT OF VIEW ON ALL THESE
MATTERS.
THEN OUR OF THE TRUMP PEOPLE AND
I THINK THE WAY THE BILL IS
WRITTEN.
IN TERMS OF REQUIRING REPORTING
GREENHOUSE GAS EMISSIONS.
ACQUIRING CERTAIN CRITERIA TO BE
MET FOR ANYBODY TO JOIN IS GONNA
MAKE IT PROBABLY LESS LIKELY
THAT UTAH WYOMING ARE GOING TO
COME IN. RIGHT AWAY BECAUSE OF
THE WAY WE'RE FRAMING THIS I
THINK SO I THINK.
PART OF WHAT'S GOING ON IS WE
LITTLE BIT CHASING GHOSTS FROM
PREVIOUS. DISCUSSIONS WERE
PEOPLE WORRY THAT THEY'RE GONNA
GET JAMMED AT THE END SESSION
AND.
WORST CASE SCENARIO I THINK WHAT
WE HAVE NOW IS OPPORTUNITY TO
FACE THE ISSUES THAT ARE BEFORE
US.
COME UP WITH SOLUTIONS SOME IN
THIS BILL BUT SOME IN OTHER
BILLS.
BECAUSE GRANT WE HAVE MUCH WORK
TO DO IF WE'RE GOING TO STAY ON
TRACK IF WE'RE GOING TO LOWER
COSTS AND IF WE'RE GONNA TO
CREATE THIS THE LOW CARB GRITTED
FUTURE THANK YOU.
THANK YOU.
THANK YOU AND I'D LIKE TO THANK
ALL OF THOSE WHO US SPOKE WE
APPRECIATE YOUR COMMENTS.
AND I THINK IT. PROBABLY GOES
DOZEN GO WITHOUT SAYING THAT
THIS IS A VERY IMPORTANT.
PART OF HOW WE NEED TO GATHER
INFORMATION.
YOU KNOW I THINK ONE OF THE.
THE BENEFICIARIES OF A MORE
DETAILED. OUR EXTENDED PROCESS
IS.
THE PUBLIC.
FOR US
HEARING YOUR TESTIMONY TODAY
HEARING THOSE THE COMMENTS THAT
WE JUST HEARD ON PUBLIC COMMENT
HELPS SHAPE.
CONTINUE TO SAVE OUR OUR
THOUGHTS AROUND THIS IMPORTANT
ISSUE AND. WE RECOGNIZE THAT
SOMETHING THIS COMPLICATED.
HAS TO WORK THROUGH A PROCESS
AND SO WE WILL CONTINUE TO HAVE
THAT.
DIALOGUE CONTINUE.
THIS WILL NOT BE THE THE LAST.
AS WAS POINTED OUT EARLIER. A
CONVERSATION THAT THIS COMMITTEE
WILL HAVE AROUND THIS TOPIC AND
THAT WE LOOK FORWARD TO
CONTINUING TO TAKE IN COURT SO
THAT WE CAN SHAPE. AND MAKE A
MORE PERFECT LEGISLATIVE
PROPOSAL BUT LET ME ALSO SAY
THERE'S NO PERFECT LEGISLATION.
AND A SO I DON'T WANT US ALL TO
HOLD OUT THAT.
YOU KNOW WE'RE GOING TO BE ABLE
TO COME UP WITH SOMETHING AT THE
END. THAT IS GOING TO SATISFY.
EVERY PERSON BOTH IN FAVOR
REGIONALIZATION AND THOSE WHO
OPPOSE
WE'RE GONNA DO OUR VERY BEST.
THOUGHT TO TAKE ALL OF THE THE
COMMENTS AS THOUGHTFUL AS THEY
ARE TRYING TO INTEGRATE THEM AS
BEST AS WE CAN SO APPRECIATE YOU
COMING OUT TODAY APPRECIATE THE
MEMBERS FOR. BEING HERE AND
BEING A PART OF THIS A
DISCUSSION AND WE LOOK FORWARD
TO HAVING ANOTHER HEARING AT
SOME POINT IN THE NEAR FUTURE.
TO CONTINUE GOING THANKS VERY
MUCH