GOOD EVERYONE WE'RE GONNA GET
STARTED AS A SUB COMMITTEE AND
AS YOU ALL ARE CUSTOM WE BETTER
WALK THROUGH SOME OF THE- HOUSE
KEEPING ITEMS. AND AND WE DO
HAVE- ONE ITEM ON THE AGENDA SO
WE'LL GET STARTED GOOD AFTERNOON
WELCOME I'D LIKE TO CONVENE THE
ASSEMBLY COMMITTEE TO LEASE AN
ENERGY AS A SUB COMMITTEE.
CHARGES PLEASE CALL THE ABSENT
MEMBERS BEFORE WE MOVE TO THE
AGENDA HAVE A FEW HOUSEKEEPING
ANNOUNCEMENTS TO MAKE WE WILL
HAVE ASSEMBLY MEMBER BIGELOW
TEMPORARILY FILLING IN FOR SOME
MEMBER CHEN. TODAY WELCOME SOME
MEMBER BIGELOW TODAY WE WILL
VOTE ON ONE BILL THAT IS ON THE
CONSENT IMMEDIATELY FOLLOWING
OUR COMMITTEE HEARING TODAY WE
WILL HOLD OUR TRANSMISSION
INFORMATIONAL HEARING. HOW
MAINTAIN DECORUM DURING THE
HEARING AS IS CUSTOMARY AN
INDIVIDUAL WITH DISRUPTIVE MAY
BE REMOVED- FROM THE ROOM OR THE
REMOTE MEETING SERVICE- IF FILE
THERE ARE CONCERNS WITH THAT-
ACTIVITY. CALLING NUMBER FOR
TODAY'S HEARING IS. 877-692-8957
AND THE ACCESS CODE IS. ONE
THREE ONE FIVE FOUR THREE SEVEN
YOU CAN ALSO FIND THIS NUMBER ON
THE ASSEMBLY UTILITIES AND
ENERGY COMMITTEE WEBSITE. AS
WELL AS ON THE TV SCREEN WE ARE
ALSO ACCEPTING WRITTEN TESTIMONY
THROUGH THE POSITION- LETTER
PORTAL ON THE COMMITTEE'S
WEBSITE AS I MENTIONED WE HAVE
ONE MEASURE. ON THE AGENDA IT IS
ON CONSENT. AND WE WILL- WAIT
TILL- WE ESTABLISH FORM TO TAKE
AN ACTION ON THAT MATTER BUT I
BELIEVE WE ARE ABLE TO CALL
FOLKS FOR THE INFORMATION
HEARING. AND SO THOSE WHO WILL
BE TESTIFYING ON THE FIRST PANEL
IF YOU WANT TO MAKE YOUR WAY UP
TO THE- TO THE FRONT. AND WE
WILL- I GUESS RECESS THIS THAT
PARTICULAR PART OF THE SESSION
AT THIS TIME SO WHILE WE GO TO
RECESS ON THE ACTUAL HEARING
WITH THE ONE ITEM THE CONSENT
CALENDAR. AND WE WILL GO INTO
THE- TRANSMISSION- HEARING. FOR
TODAY. ONCE OUT WOULD WELL SO AS
YOU GET SITUATED I'M GOING TO
RECONVENE THE- OFFICIAL HEARING
BECAUSE WE DO HAVE APARTMENTS
ALL ASK THE SECRETARY TO CALL
THE ROLL AND THEN WE'LL WE'LL
TAKE THAT ONE ITEM THAT'S ON
CONSENT. EDUARDO GARCIA HI. HERE
PATTERSON PATTERSON HERE BEAR
CAN BIGELOW. BIGELOW HERE
CARILLO CARRILLO HERE CUNNINGHAM
CRISTINA GARCIA CRISTINA GARCIA
HERE HOLDEN. THEN HERE MAYES
MAYES HEAR MURATSUCHI CORK
AIRPORT HERE REYES REYES HERE
SANTIAGO KING. THAT'S NINE OKAY
SO WE DO HAVE A QUORUM WE DO
HAVE ONE ITEM ON CONSENT
CALENDAR THAT IS EASY ARE ONE
EIGHT EIGHT BY MR HOLDEN DO I
HAVE A MOTION AND MOTION AND A
SECOND TO MOVE THE ITEM ON THE
CONSENT CALENDAR AREN'T ANY
QUESTIONS ABOUT THAT- SECRETARY
RON PLEASE CALL THE ROLL. ACR
ONE EIGHTY EIGHT THE MOTION AS
BE ADOPTED TO CONSENT EDUARDO
GARCIA HI. IN ORDER C. I.
PATTERSON PATTERSON AYE
BARRICADE HANDS. BIGELOW BIGELOW
I CARILLO CARRILLO I'D
CUNNINGHAM CRISTINA GARCIA
CRISTINA GARCIA I HOLDEN HOLDEN
IMA'S MAYES AYE AMHERST TEACHING
CORK. CORK I REYES REYES AYE
SANTIAGO KING THAT'S NINE OKAY
THE CONSENT ITEM HAS BEEN PASSED
WE WILL LEAVE THE ROLE OPEN FOR
OTHER COLLEAGUES TO ADD ON AND
THAT THIS TIME WILL RECESS THE
OFFICIAL- UTILITIES AND ENERGY
HEARING AND A CALL THE-
TRANSMISSION HEARING TO ORDER.
WANT TO THANK YOU ALL WHO HAVE-
JOINED US TODAY WOULD LIKE TO
CALL THIS NOW THE INFORMATION
HEARING TO ORDER WE ARE HERE TO
DISCUSS. THE NEED FOR NEW
TRANSMISSION IN ORDER TO MEET
OUR AMBITIOUS CLIMATE GOALS
SPECIFICALLY WE WILL EXPLORE HOW
WELL OUR PLANNING PROCESS-
PREPARES US FOR FUTURE
TRANSMISSION NEEDS. CHALLENGES
THAT EXIST WITHIN THE PROCESS
AND SOLUTIONS THAT ENSURE WE CAN
MEET OUR CLEAN ENERGY GOALS. IN
TWO THOUSAND EIGHTEEN SB ONE
HUNDRED ESTABLISHED THE STATE
POLICY THAT RENEWABLE AND ZERO
CARBON RESOURCES SUPPLY A 100%
OF ELECTRICITY BY TWENTY FORTY
FIVE. IN TWENTY TWENTY ONE THE
FIRST JOINT AGENCY SB ONE
HUNDRED REPORT FOUND THAT IN
ORDER O MEET. THIS POLICY
CALIFORNIA WILL NEED TO BUILD
SIX GIGAWATTS OF NEW CLEAN
RESOURCES EVERY YEAR THIS REPORT
DEMONSTRATES. THAT THE 1100%
CLEAN ENERGY POLICY IS
ACHIEVABLE BUT REQUIRES BUILDING
ELECTRIC FACILITIES AT AN
UNPRECEDENTED PACE. HAND IN HAND
WITH THIS NEED FOR NEW RESOURCES
IS A NEED FOR TRANSMISSION TO
CONNECT PROJECTS TO THE POWER
GRID. A RECENT STUDY BY THE
CLEAN AIR TASK FORCE AND THE
ENVIRONMENTAL DEFENSE FUND
CONCLUDED THAT CALIFORNIA MUST
DOUBLE. ITS TRANSMISSION
CAPACITY BY TWENTY FORTY FIVE.
THIS NEW HIGH VOLTAGE
TRANSMISSION TAKES ON AVERAGE
TEN YEARS TO BUILD. TIME IS OF
THE ESSENCE TO ENSURE THAT OUR
PROCESS TO BRING NEW FACILITIES
ONLINE. ARE ADEQUATE TO MEET THE
NEEDS OF THE FUTURE. THIS BILL
WILL BE THE FIRST OF MULTIPLE
HEARINGS. PLAN BY THIS COMMITTEE
TO FOCUS ON TRANSMISSION AND
WILL NARROWLY. FOCUSED ON
STATEWIDE PLANNING EFFORTS AND
ACTIONS WITHIN CAL I SO WE HAVE
INVITED A PANEL TO DISCUSS
POTENTIAL PROBLEMS AND SOLUTIONS
WITH TRANSMISSION PLANNING.
ASSET ALL POUNDS PROVIDE THEIR
OPENING STATEMENTS THEN WE CAN
TURN TO THE COMMITTEE FOR
QUESTIONS. WE WILL START WITH
MARK ROSSITER SENIOR VICE
PRESIDENT AND CHIEFOPERATING
OFFICER. THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR
WELCOME. THANK YOU- JERRY GARCIA
AND- THANK YOU FOR HAVING US
TODAY I'M GONNA QUICKLY HANDED
OFF TO- NEIL MILLER VICE
PRESIDENT OF INFRASTRUCTURE-
PLANNING. OF ALL TO SAY THANK
YOU FOR YOUR ACTION ON A SKI ARE
ONE EIGHTY EIGHT. IT ALSO- MY
ROLE AS CHIEF OPERATING OFFICER
IS BOTH A- RESPONSIBLE FOR IT
INFRASTRUCTURE PLANNING BUT ALSO
OPERATIONS AND IT'S REALLY
CRITICAL. AS AN OPERATIONAL
MATTER THAT THE PLANNING OF THE
INFRASTRUCTURE BE TIMELY- AND
BE. CONSIDERATE OF WHAT THE
SYSTEM NEEDS ARE. AND IT'S VERY
BECOMING MORE MORE CRITICAL THAT
THAT IT BOTH RESOURCE AND
TRANSMISSION INFRASTRUCTURE ARE
. ORDINATED AND- RESOURCES ARE
PLANNED IN ADVANCE SO THAT THEY
COME ON LINE IN TIME SO THAT WE
CAN ALSO LET SOME OF THE
RETIREMENT OF RESOURCES THAT WE
ARE TRANSITIONING OFF OF A
RETIRE. SO TAT I'M JUST GONNA
QUICKLY HANDED OFF TO NEIL
MILLER WILL PROVIDE SOME
ADDITIONAL OPENING STATEMENTS.
THANK YOU VERY MUCH AYE GARCIA
AND IS THIS AN OPPORTUNITY TO
WALK THROUGH THE WE DO HAVE A
PRETEXT THAT WOULD JUST TOUCH
ON. THANK YOU AND WHAT I WAS
LOOKING TO DO WAS TO TOUCH ON
THE FUNDAMENTAL PROCESSES SO WE USED TO MOVE
TRANSMISSION PLANNING FORWARD.
AND ALSO TO INDICATE THE WITH
THE ACCELERATION OF A NUMBER OF
KEY INPUTS WE ARE HAVING TO PICK
UP THE PACE TO ACHIEVE WHAT WE
NEED TO OVER THE NEXT DECADE. SO
IF I COULD JUST MOVE TO THE NEXT
SLIDE PLEASE. FUNDAMENTALLY ARE
THE ISA'S ANNUAL TRANSMISSION
PLANNING PROCESS IS A VEHICLE
USED TO MOVE FORWARD WITH
TRANSMISSION ACROSS THE 80% OF
THE STATE THAT FALLS WITHIN OUR
FOOTPRINT. THE TRANSMISSION
PLANNING IS REALLY DONE BASED ON
THREE MAJOR INPUTS. AND THAT IS
THE LOAD FORECAST WORK DEVELOPED
BY THE CALIFORNIA ENERGY
COMMISSION. THE RESOURCE
PLANNING CONDUCTED BY THE PUBLIC
UTILITIES COMMISSION. AS WELL AS
ALL OF THE RELEVANT OF FEDERAL
AND STATE AND OUR EYES SO OWN
PLANNING REQUIREMENTS AND
CRITERIA. EACH YEAR WE PRODUCES
ANNUAL TRANSMISSION PLAN THAT
THAT OBLIGATES SOMEONE TO TRY TO
ACTUALLY GET THAT TRANSMISSION
BUILT. AND GENERALLY THE
TRANSMISSION FALLS INTO MEETING
THE NEEDS OF RELIABILITY NEEDS.
ACCESS TO RENEWABLE GENERATION
TO IS TO ACHIEVE STATE GOALS. AS
WELL AS LOOKING FOR TRANSMISSION
UPGRADES THAT CAN ALSO. HELP
LOWER THE OVERALL DELIVERED COST
OF ELECTRICITY BY ACCESSING
LOWER COST RESOURCES. TO THOSE
OF THE KEY MAIN INPUTS THAT
REUSING. AND IN ALL THREE OF
THOSE AREAS WERE HAVING TO ADAPT
AND CHANGE. ACTUALLY IF I COULD
JUST MOVE. ALL PASSED THIS SLIDE
THIS LARGELY HAS THE WORDS I
JUST SPOKE TO AT CENTER SPEND
JUST A FEW MORE MINUTES ON THIS-
THE GRAPH THAT YOU SEE AS PART
OF WHAT'S DEMONSTRATING THE NEED
TO ESCALATE THE PACE OF
DEVELOPMENT. THAT GRAPH
REPRESENTS THE- LOAD GROWTH
PROJECTED BY THE CALIFORNIA
ENERGY COMMISSION. THE LOWER
BLUE LINE WAS THERE
COMPREHENSIVE FORECAST DEVELOPED
TWO YEARS AGO. THE RED LINE
CONSIDERABLY HIGHER IS THE
CURRENT FORECAST LOOKING OUT
OVER THE NEXT DECADE SO THIS IS
DEMONSTRATING ASIGNIFICANT
INCREASE IN LOAD GROWTH
ESPECIALLY AS WE SEE TRANSFER
ME- OTHER INDUSTRIES AND
TRANSPORTATION. TRANSITION TO
ELECTRICITY TO REDUCE THEIR OWN
CARBON FOOTPRINT. THE DIRECT
IMPACT OF THAT THAT'S ALSO ONE
OF OUR OTHER INPUTS INTO OUR
PLANNING PROCESSES THE IMPACT IT
HAS ON PUBLIC UTILITIES
COMMISSION RESOURCE PLANNING.
THE PLANS WE BASED LAST YEAR'S
TRANSMISSION PLAN ON WERE KEY TO
ADDING A THOUSAND MEGAWATTS OF
NEW RESOURCES A YEAR OVER THE
NEXT DECADE. THE PLAN OR BOARD
JUST APPROVED IN MARCH OF THIS
YEAR WAS TIED TO A PACE OF
TWENTY SEVEN HUNDRED MEGAWATTS A
YEAR. AND A PLAN WE'RE NOW
WORKING ON IS KEY TO RESOURCE
PLANS CALLING FOR OVER FOUR
THOUSAND MEGAWATTS TO BE ADDED
EACH YEAR OVER THE NEXT DECADE.
SO THAT RAMPING UP BOTH OF LOAD
REQUIREMENTS CUSTOMER DEMAND
REQUIREMENTS AS WELL AS THE
RESOURCES NEEDED TO SERVE FULL
LOAD. AND MEET THE NEEDS OF
RETIRING RESOURCES IS OBVIOUSLY
GOING TO DRIVE AN ACCELERATION
OF OUR TRANSMISSION PLANNING AND
INITIATING NEW TRANSMISSION
PROJECTS. IF I COULD MOVE TO THE
NEXT SLIDE PLEASE. THE OTHER
CHALLENGE WE HAVE IS THAT THE
GOOD NEWS IS COMPETITION FOR
PROVIDING THOSE RESOURCES IS
VERY MUCH ALIVE AND WELL AT
TIMES WE ALSO FACE THOUGH A BIT
OF AN ABUNDANCE OF RICHES OUR
CURRENT INTERCONNECTION QUEUE.
IS SITTING AT TWO HUNDRED THIRTY
FIVE THOUSAND MEGAWATTS OF
ASSETS SEEKING TO CONNECT TO OUR
SYSTEM. THAT IS A GREAT DEAL OF
COMPETITION FOR A MUCH SMALLER
AMOUNT OF AUTHORIZED PROCUREMENT
JUST TO PUT THAT IN CONTEXT-
LAST JUNE THE PUBLIC UTILITIES
COMMISSION AUTHORIZED THEIR
SINGLE LARGEST EVER. A RESOURCE
AUTHORIZATION WHICH WAS FOR
ELEVEN POINT FIVE GIGAWATTS OR
ELEVEN THOUSAND FIVE HUNDRED
MEGAWATTS OF RESOURCES. OUR
CURRENT INTERCONNECTION QUEUE IS
STANDING UP WELL OVER TWENTY
TIMES THAT AMOUNT. SO WINNOWING
DOWN THROUGH THE AMOUNT OF
PROJECTS APPLYING TO GET
CONNECTED AS THEY ARE ALSO
SEEKING. TO GET TOP POWER
PURCHASE AGREEMENTS IN PLACE
WITH UTILITIES AND OTHER LOAD
SERVING ENTITIES. IS OBVIOUSLY A
CHALLENGER HAVING TO DEAL WITH.
LAST YEAR ALONE WE ADDED OVER A
HUNDRED OF ALMOST A HUNDRED AND
FIFTY THOUSAND MEGAWATTS OF. OF
ASSETS TO THE INTERCONNECTION
QUEUE SEEKING TO GET CONNECTED.
AND AS I SAID COMPETITION IS
GOOD BUT THIS LEVEL OF
COMPETITION DISTRACTS FROM THE
PROJECTS THAT WILL BE MOVING
FORWARD JUST BECAUSE OF THE
SHEER VOLUME. IF I COULD MOVE TO
THE NEXT SLIDE PLEASE. SO THIS
YEAR'S TRANSMISSION PLAN THAT I
ALREADY MENTIONED- HAS BEEN
MOVING FORWARD SHOWING THAT
ACCELERATION OVER THE TEN YEARS
WE'VE CALLED FOR AN ADDITIONAL
TWENTY THREE PROJECTS TOTALING
TWO POINT NINE BILLION IN COST.
OVER THE LAST FIVE YEARS WE'VE
BEEN AVERAGING ABOUT TWO HUNDRED
AND FIFTEEN MILLION A YEAR AND
CAPITAL IN OUR TRANSMISSION
PLANT SO THIS IS MORE THAN A TEN
FOLD INCREASE. WE ALSO TOOK THE
STEP OF TRIGGERING THIS YEAR OF
DEVELOPING A TWENTY YEAR
TRANSMISSION OUTLOOK. THAT IS
NOT AN APPROVAL DOCUMENT IT WAS
A WAY TO PROVIDE SOME LONGER
TERM VISION FOR WHAT THE GREAT
BUT LOOK LIKE IN THE FUTURE. TO
MEET THE REQUIREMENTS OF GETTING
TO A 100% CARBON FREE. AND THAT
HELPS PROVIDE CONTEXT FOR.
PLANNING DECISIONS SO WE HAVE TO
MAKE IN THE NEAR TERM AND SETS
OUT LONGER TERM STRATEGY OUT-
NEXT SLIDE PLEASE. THE LAST
THING I WANTED TO TOUCH ON WAS
JUST AHEAD ON SOME OF THE KEY
AREAS AND OPPORTUNITIES FOR WE
THINK THERE CAN BE PROCESS
IMPROVEMENTS THAT RECOGNIZING
THE VOLUME OF TRANSMISSION THAT
NEEDS TO BE PLANTED BUILT. AND
THAT IS BOTH THE NETWORK
UPGRADES AS WELL AS THE
INTERCONNECTION FACILITIES THAT
ARE NEEDED FOR THESE RESOURCES
TO PIPE TO THE SYSTEM AS WELL AS
THE SIR CUSTOMER LOAD AT THE
OTHER END SO FIRST ANYTHING THAT
CAN BE DONE OF COURSE TO
STREAMLINE THE PERMITTING
PROCESS AND REGULATORY APPROVAL
PROCESS. IS ALWAYS APPRECIATED
THE TIME LINES THAT CAN TAKE FOR
AT TIMES HAVING TO REVISIT THE
NEED FOR CERTAIN TRANSMISSION
FACILITIES LATER IN THE PROCESS
CAN ADD YEARS TO GETTING CERTAIN
pTRANSMISSION BILL AND WHILE WE
ALWAYS AGREE THAT- THESE
DECISIONS NEED TO BE PROPERLY
VETTED SOMETIMES THE TIMING IS
AN ISSUE OF WHEN THEY'RE BEING
VETTED AND HOW. ALSO POWER
PURCHASE AGREEMENTS BEING PUT IN
PLACE RIGHT NOW ARE LARGELY JUST
FOCUSED OVER THE NEXT FEW YEARS
OUT. LONGER TERM PROCUREMENT TO
IDENTIFY WHICH PROJECTS WOULD BE
MOVING FORWARD. WHAT HELPED US
FOCUS OUR PRECIOUS ENGINEERING
RESOURCES ON THE PROJECTS THAT
ARE MOVING FORWARD. INSTEAD OF
KEEPING SOMEBODY ALIVE FOR NEAR
TERM COMPETITION. WE'RE ALSO
CONCERNED WHERE THIS IS NOT AS
MUCH OF AN ISSUE FOR THE ICE OF
IT PERHAPS FOR THE REST OF THE
INDUSTRY AND IN ACHIEVING THESE
OUTCOMES WE ARE CONCERNED ABOUT
THE OVERALL. VOLUME OF RESOURCES
AVAILABLE TO ENGINEER AND BUILD
ALL OF THE FACILITIES THAT NEED
TO BE PUT IN PLACE AND TO US
THAT'S A STATEWIDE ISSUE WE
WON'T SOLVE THAT JUST BY HIRING
OR STAFF AWAY FROM EACH OTHER.
IT'S A STATEWIDE ISSUE. AND
LASTLY WE ARE LOOKING THROUGH
OUR OWN PROCESSES AND WE HAVE A
NUMBER OF ACTIVE STAKEHOLDER
PROCESS IS UNDER WAY RIGHT NOW.
LOOKING FOR WAYS TO OPTIMIZE OUR
OWN TRANSMISSION PLANNING AND
GENERATION INTERCONNECTION
PROCESSES. THESE OF OFTEN BEEN
HELD UP ACTUALLY AND- BY THE
FEDERAL ENERGY REGULATORY
COMMISSION OF SOME OF THE BEST
IN CLASS. BUT WE DO HAVE TO SEE
IF THERE'S ANY OPPORTUNITY TO
GET ANY EFFICIENCIES AND
IMPROVEMENTS OUT OF THOSE
PROCESSES AS WELL. SO I'VE
COVERED A LOT OF GROUND TO LOOK
FORWARD TO THE DISCUSSION BUT
THAT WRAPS UP. THE INITIAL
COMMENTS THANK YOU VERY MUCH
THANK YOU VERY MUCH ANYTHING
YOU'D LIKE TO ADD TO THAT-
MISTER MARK. RATHER NO I GUESS
ONE THING I'D LIKE TO ADD AS A-
AS WE ALL KNOW. THE IMPORTANCE
OF GETTING. A NEW GENERATION NEW
RESOURCES ON CLEAN RESOURCES
CLEAN IT'S A CLEAN FLEXIBLE
RESOURCE ON. IS BECOMING EVER
MORE CRITICAL- AS YOU ARE WHERE
WE RECENTLY INDICATED THAT THIS
YEAR WE STILL SEE. DEFICIENCIES
THAT POTENTIALLY PUT THE SYSTEM
IN VULNERABILITY AT LEAST A HIGH
LOW LEVELS IN EXTREME
CONDITIONS. CERTAINLY CLIMATE
CHANGE IS IMPACTING US BOTH IN
TERMS OF WILDFIRE RISKS- BUT
ALSO JUST- THE- RISK OF HIGH
TEMPERATURES AND HIGH LOADS
ACROSS THE SYSTEM. AND ALLOWING
US TO MOVE THE GET THE SOME OF
THESE ARE. OLDER RESOURCES
RETIRED. SOME OF THAT'S GONNA
TAKE RESOURCES BUT IT'S ALSO
GONNA TAKE CURRENT MISSION. AND
WE HAVE TO DO THIS IN A
COORDINATED WAY WHERE THE
TRANSMISSION THE SERVICE PORTAL
RESOURCES AS IN PLACE. IN THE
RIGHT TIME AT THE RIGHT PLACE.
THAT COORDINATES WITH THAT AND I
THINK THAT'S THAT'S KIND OF THE
MESSAGE. THAT THE ANNUAL
CONTAINER HERE FROM US THANK YOU
. THANK YOU LET'S MOVE ON TO THE
NEXT PRESENTER THAT- MY BAKER
DIRECTOR OF PUBLIC ADVOCATE'S
OFFICE. YES THANK YOU MR
CHAIRMAN AND MEMBERS OF THE
COMMITTEE I ALSO HAVE A SLIDE
PRESENTATION- AND I. HI MY NAME
IS MATT BAKER- THE DIRECTOR OF
THE PUBLIC ADVOCATE'S OFFICE WE
ARE THE INDEPENDENT CONSUMER
ADVOCATE AT THE PUBLIC UTILITIES
COMMISSION. AND OUR MISSION IS
TO ADVOCATE FOR AFFORDABLE SAFE
RELIABLE UTILITY SERVICES- CAN
YOU MOVE THAT SLIDE TO I'M HERE
TO SPEAK ABOUT THE COST IMPACTS
OF THE TRANSMISSION BUILD OUT-
AND OFFER AREAS WHERE YOU KNOW
WE MIGHT WANT TO STUDY TO SEE IF
WE CAN MITIGATE SOME OF THOSE
COSTS- WE KNOW THAT THE SYSTEM
WILL NEED- NEW TRANSMISSION IF
ONLY BECAUSE WE'VE GOT A LOT OF
NEW CHEN GENERATION WIND AND
SOLAR. THAT WILL REQUIRE IT- WE
ALSO KNOW THAT WILL NEED TO
DEVELOP THIS IN A QUICKER TIME
FRAME THAN WE HAVE IN THE PAST-
AND FINALLY GIVEN THE RATE
PRESSURES THAT WE'RE FACING WE
WILL NEED TO FIND WAYS TO TRY TO
CONTROL THE COST AND CERTAINLY
CONTROL THE GROWTH IN THE COSTS.
IN THIS PRESENTATION I'M GONNA
TALK A LITTLE BIT ABOUT WHAT'S
HAPPENING WITH RATES TODAY- I
WILL ALSO TALK ABOUT HOW THE
TRANSMISSION INVESTMENTS IMPACT
RATES AND WHAT THEIR TRAJECTORY
AS AND FINALLY- AND WITH A FEW
DIFFERENT IDEAS ON THINGS THAT
WE CAN STUDY T AMELIORATE THIS
PROBLEM. IF YOU CAN GO TO THE
NEXT SLIDE- EDUCATION SEE FROM
THIS SLIDE RATES HAVE INCREASED
SUBSTANTIALLY SINCE TWENTY
FOURTEEN EXCEEDING THE RATE OF
INFLATION THESE FIGURES WERE
PROVIDED BY THE STAFF AT THE
PUBLIC ADVOCATE'S OFFICE. THE
BLACK LINE AT THE BOTTOM
REPRESENTS THE CONSUMER PRICE
INDEX OVERALL YOU KNOW EACH
UTILITIES RESIDENTIAL AVERAGE
RATE HAS INCREASED SUBSTANTIALLY
SINCE TWO THOUSAND AND NINE. GO
TO THE NEXT SLIDE. ON THIS SLIDE
WHAT WE'RE DEMONSTRATING HERE IS
THAT WITH IN THESE RATE
INCREASES TRANSMISSION COSTS ARE
TAKING UP HIGHER AND HIGHER
PERCENTAGE THAT MEANS THEY'RE
PUSHING RATES UP- AND THIS IS
HAPPENING FOR AGAIN ALL OF THE
BIG THREE UTILITIES- IF YOU CAN
GO TO THE NEXT SLIDE- AND ON
THIS SLIDE WE'RE SHOWING THAT
WHAT THE ACTUAL TRANSMISSION
COSTS. HAVE BEEN. SINCE TWO
THOUSAND AND NINE- COSTS HAVE
INCREASED OVER THREE HUNDRED
PERCENT- TRANSMISSION COSTS ARE
RECOVERED FROM THE FEDERAL
ENERGY THROUGH. TRANSMISSION
OWNERS MAKING A FILING TO THE
TRIP TO THE FEDERAL ENERGY
REGULATORY COMMISSION. THIS IS
COLLECTED THROUGH FROM THE RATE
PAYERS VIA BOTH A HIGH VOLTAGE
TRANSMISSION ACCESS CHARGE WHICH
IS FOR FACILITIES. TWO HUNDRED
KV AND ABOVE AND A LOW VOLTAGE
TRANSMISSION ACCESS CHARGE AT
BELOW TWO HUNDRED- CAVESE. THE
FIRST IS PAID FOR BY ALL OF THE
CUSTOMERS IN THAT CASE-
TERRITORY THE SECOND IS PAID BY
THE CUSTOMERS OF EACH OF THE
INDIVIDUAL I- USE WHERE IT TAKES
PLACE- AND AGAIN AS YOU CAN SEE.
THIS CHART SHOWS THAT THE YOU
KNOW THE GROWTH OF THE HIGH
VOLTAGE TACK SINCE TWO THOUSAND
AND NINE IF YOU CAN MOVE THIS
NEXT SLIDE. WHAT WE WANT TO SHOW
HERE IS THAT THE TACK IS
EXPECTED TO CONTINUE. TO
INCREASE FURTHER- AS- THE
REPRESENTATIVE SOME KAITO
ALLUDED TO- RECENTLY THERE WILL
THEY PUT FORWARD THEIR TWENTY
YEAR TRANSMISSION OUTLOOK- AND
THIS DOES EXPLORE THE LONGER
TERM GRADE REQUIREMENTS AND HOW
WE WILL MEET OUR CLEAN ENERGY
GOALS. RELIABLY AND COST
EFFECTIVELY- WHAT THIS CHART
SHOWS IS THAT BY TWENTY FORTY TO
BASED ON OUR CALCULATIONS USING-
THE TAX CALCULATOR PROVIDED BY
OKAY SO WE'LL SEE A 90% INCREASE
TO THIRTY ONE DOLLARS A MEGAWATT
HOUR- SO JUST TO RECAP. YOU KNOW
WE'RE ALREADY IN A SITUATION
WHERE RATES ARE INCREASING
SIGNIFICANTLY. ADMISSION COSTS
FOR ONE DRIVER OFTHOSE RATE
INCREASES AND THERE ARE OTHERS
AS WELL. TO MEET OUR CLIMATE
OBJECTIVES AND TO HAVE A
RESILIENT RELIABLE SYSTEM. WE'RE
GONNA NEED MORE TRANSMISSION SO
THESE COSTS WILL GO- THE
QUESTION WE WOULD LIKE TO PUT
FORWARD IS KIND OF WHAT CAN WE
DO ABOUT IT- AND WE WOULD LIKE
TO SEE WORK. IN THE FOLLOWING
AREAS SO IF YOU GO TO THE NEXT
SLIDE. ONE THING THAT AFFECTS
THE COST OF TRANSMISSION IS HOW
YOU FINANCE IT- WE'RE NOT
ADVOCATING ANY PARTICULAR WAY
WITH THE SLIDE DOES IS IT
ILLUSTRATES. FOR DIFFERENT
FINANCING MODELS- JUST TO SHOW
HOW BIG OF AN IMPACT THINGS LIKE
THE RATE OF RETURN AND WHETHER
YOU'RE FINANCING WITH DEBT OR
EQUITY- CAN HAVE ON THIS. I'M
SECOND YOU CAN GO TO THE NEXT
SLIDE- WE ARE ALSO OPTIMISTIC
THAT- IN THE FUTURE- ADVANCED
TECHNOLOGIES WILL HOPEFULLY HELP
US AVOID INTO FOR TRANSMISSION
COSTS AND I THINK. YOU KNOW THE
QUESTION WE WANT TO ASK IS YOU
KNOW CAN THESE TECHNOLOGIES NEW
TECHNOLOGIES CAN INCREASING
EFFICIENCIES TO SMART WIRES. CAN
THE SCALING OF BATTERIES CAN
THAT HELP RELIEVE CONGESTION AND
LOAD POCKETS CAN IT HELP US TO
COST EFFECTIVELY DEFERRED
TRANSMISSION IS NOT REALLY COST
EFFECTIVE IF YOU BUILD SOMETHING
THEN A COUPLE YEARS LATER YOU
HAVE TO BUILD TRANSMISSION AGAIN
SO YOU WANT TO WANT TO LOOK AT
THAT- ENDED DO THIS WE NEED TO
BE REALLY BEING DISCIPLINED IN
PILOTING DEMONSTRATIONS.
LEARNING FROM OTHER
JURISDICTIONS STRESS TESTING THE
SOLUTION SO THAT THEY MEET ALL
THE REQUIREMENTS OF ROUND
RELIABILITY- AND FIGURE OUT HOW
WE CAN SCALE THEM AND IN
PARTICULAR WE'RE INTERESTED IN
WHAT. EITHER BOB IT'S EITHER AN
INCLUDING BEHIND THE METER
BATTERIES ELECTRIC VEHICLE
BATTERIES AND ALL OF THE
BATTERIES THAT WERE INVESTING IN
THE BULK POWER SYSTEM YOU KNOW
WHAT POTENTIAL CAN THEY HAVE YOU
KNOW TO HELP ADDRESS SOME OF
THESE CONCERNS. AND THEN
FINALLY- IF YOU CAN GO TO THE
NEXT SLIDE. WE'RE REALLY
CONCERNED ABOUT TRANSMISSION
COST OVERRUN. LARGE TRANSMISSION
PROJECTS HAVE A HISTORY OF COST
OVERRUNS- A TWENTY NINETEEN
STUDY BY THE BATTLE BRATTLE
GROUP OF EIGHTEEN- CALLIE SO
APPROVED PROJECTS SHOWS THAT IN
OUR THERE WAS AN AVERAGE. COST
ESCALATION OF 40% WHY NINE
PHYLLIS SOME OF THE MORE-
EGREGIOUS EXAMPLES OF SOME OF
THESE COST OVER RUNS. IN I THINK
WE REALLY NEED TO KNOW WHY IS
THIS HAPPENING- WHAT ROLE IS
SITING AND PERMITTING- AND THE
DELAYS CAUSED IN THERE WHAT
ROLES THAT PLAYING IN THESE COST
OVER RUNS. HOW MUCH OF THIS IS
DUE TO POOR PROJECT PLANNING OR
POOR EXECUTION. AND THEN FINALLY
CAN WE DEVELOP. INCENTIVES FOR
WAYS TO HELP SHIELD RATEPAYERS
FROM SOME OF THE RISKS OF COST
OVERRUNS SO- AND I I'LL JUST SAY
YOU KNOW TO SCALE THE CLEAN
ENERGY BUILD OUT AND THE SCALE
THE TRANSMISSION BUILD OUT.
REALLY GOING TO NEED TO ADDRESS
SOME OF THESE COST ISSUES AND
REALLY BE MINDFUL OF THAT.
FINALLY IN CONCLUSION YOU KNOW
IN A DECARBONISE WORLD WE'RE
GONNA NEED MORE CLEAN
ELECTRICITY ORGANIZED A LOT MORE
CLEAN ELECTRICITY- CARDS CURRENT
DRAFTED THAT SCOPING PLAN
ENVISIONS SIGNIFICANTLY MORE
ELECTRICITY THAT'S CLEAN. FOR
TRANSPORT BUILDING AND INDUSTRY-
WE HAVE A SYSTEM THE
TRANSITIONING TO RUNNING MORE
AND MORE ON WIND AND SOLAR- AND
THIS WILL REQUIRE MORE
TRANSMISSION. YOU KNOW SO WE
HAVE TO BUILD THIS OUT IN AN
ENVIRONMENT WHERE RATES AND
BILLS HAVE INCREASED FASTER THAN
INFLATION. UNTIL WE REALLY GOT
AGAIN LOOK AT YOU KNOW CAN WE
CONTROL THESE COSTS. AND JUST TO
REITERATE. WE'D LIKE TO SEE SOME
CONSIDERATION- ARE STUDYING OF
DIFFERENT WAYS TO FINANCE THESE
PROJECTS THAT FIT WITHIN. HOW WE
DO THINGS HERE IN CALIFORNIA. WE
WANT TO SEE- AND EMPHASIS-
CONTINUED EMPHASIS ON LOOKING TO
NEW TECHNOLOGIES. AND WE REALLY
WANT TO SEE A WAY TO HELP
ADDRESS COST OVER RUNS INCLUDING
BUT NOT LIMITED TO ADDRESSING
SITING PERMITTING AND
CONSTRUCTION DELAYS. THANK YOU
MR CHAIRMAN. THANK YOU I'M GONNA
PAUSE HERE AND ASK ANY OF MY
COLLEAGUES IF THEY HAVE ANY
QUESTIONS FOR YOURSELF OR FOR
THE FIRST TWO. PRESENTERS DR.
THANK YOU- FIRST I THINK- FOR MR
MILLER. DO WE HAVE ANY IDEA HOW
THESE TRANSMISSION COSTS ARE
DIVIDED. HOW MUCH IS IT TOO- HOW
MUCH OF THIS IS BECAUSE WE HAVE
TO REACH OUT TO NEW GENERATION
SITES. OUT IN THE DESERT FOR
SOLAR OR WIND. AND HOW MUCH IS
DUE TO INCREASED- USAGE MORE
LECTER COMBS MORE LOCKED
VEHICLES AT CETERA. IT IS IT'S
STILL HERE WITH THE AYE SO THE-
AND IN OUR ANNUAL TRANSMISSION
PLANNING PROCESS WE'RE VERY
SPECIFIC ABOUT WHAT'S DRIVING
THE NEED FOR EACH TRANSMISSION
UPGRADE. WE HAVEN'T TRIED TO GO
BACK AND REASSESS THOUGH EXACTLY
TO SAY WELL THIS IS THE IMPACT
ON RATES FROM THIS TYPE OF
PROJECT VERSUS THAT TYPE.
BECAUSE I HAVE TO ADMIT WHEN
WE'RE LOOKING AT TRYING TO PICK
THE BEST OVERALL TRANSMISSION
SOLUTION IT'S RARE THAT THOSE
ARE JUST MEETING A SINGLE
PURPOSE SURE SO SOME OF THE
PROJECTS ARE QUITE CLEAR WE CAN
IDENTIFY SOME MAJOR PROJECTS
THAT WERE DESIGNED TO REACH OUT
INTO NEW AREAS AND ACCESS YOU
NEW RESOURCES. BETTER WITHIN THE
LARGER NETWORK ITSELF QUITE
OFTEN OUR SOLUTIONS ARE A
COMBINATION OF HELPING US MEET
THE LOAD RELIABILITY NEED AND
ALSO HELPING ACCESS FROM
RENEWABLE GENERATION. AND THAT'S
PARTICULARLY THE CASE IN THIS
YEAR'S TRANSMISSION PLANT.
WITHOUT APPROVAL FOR A- A NEW
MAJOR FIVE HUNDRED KV SUBSTATION
THAT WOULD PROVIDE ADDITIONAL
RELIABILITY BENEFITS INTO THE
AREA. AND ALSO PROVIDE BETTER
ACCESS TO NORTHERN SACRAMENTO
VALLEY RENEWABLE RESOURCES SO
SOME OF THESE PROJECTS ARE
MEETING MULTIPLE PURPOSES BUT WE
DO TRY TO GIVE THE KEY
INDICATORS IN OUR TRANSMISSION
CLASS. I DO NOT TO HAVE A RATE
IMPACT OF ONE VERSUS THE OTHER
I'M AFRAID ALL RIGHT WELL. I
THINK IT'S SOMETHING THAT WE
NEED TO THINK ABOUT- AND I
PARTICULARLY HERE. WOULD LIKE
TO- GET ANY COMMENTS THAT THE-
MISTER BAKER IS WILLING TO THINK
ABOUT THEY'RE ALL SORTS OF
EQUITY CONCERNS HERE AND- YOU
HAVE PEOPLE WHO HAVE. VERY LOW
USAGE AND ALSO WHO SAY DON'T
HAVE CARS AND YET A LARGE PART
OF THE INCREASE IN DEMAND IT'S
GOING TO BE ELECTRIC CARS
ELECTRIFICATION FOR RUSSIA.
HOMES IT'S CETERA BUT
PARTICULARLY FOR CARS AND FOR
PEOPLE WHO DON'T HAVE CARS OR
WHO USED TO FUEL OTHER THAN LUCK
TRICITY. ARE THEY GOING TO HAVE
TO TAKE ON. AND THE IS WHY I
ALWAYS HAVE IF KNEW. HOW MUCH
WAS INCREASED USAGE VERSUS.
DIFFERENT TERM TRANSMISSION BUT
THAT THERE IS AN ISSUE HERE FOR
PEOPLE WHO DON'T HAVE CARDS OR
HAVE DEEP FEW CARDS FOR THE OLD
ON HYDROGEN OR BIO FUELS AND ARE
THEY GONNA HAVE TO ALSO PAY FOR
THIS INCREASE TRANSMISSION. IT'S
CLEARLY WE DON'T EVEN HAVE AN
ANSWER RIGHT NOW FOR HOW MUCH
THIS IS COSTING BUT I THINK IT'S
SOMETHING WE NEED TO LOOK AT IN
THE FUTURE TO BE FAIR- SO MISTER
BAKER WHAT DO YOU THINK. SO I
THINK I WOULD ADDRESS THAT
QUESTION IN A COUPLE OF WAYS BUT
HISTORICALLY THE YOU KNOW ONE OF
THE GREAT THINGS ABOUT THE
ELECTRICITY SYSTEM IS AS WE
INVESTED MORE IN INFRASTRUCTURE
IN THE SIXTIES AND SEVENTIES. WE
WERE ALSO INCREASING USAGE SO
THOSE ELECTRONS WERE SPREAD OUT
OVER MORE AND MORE USERS YOU'RE
ACTUALLY ABLE TO SEE A
DECLINING- COST OVER THE OVER
THAT TIME FRAME. AND I THINK
DEPENDING ON HOW YOU DO
ELECTRIFICATION PARTICULARLY OF
TRANSFER OF PARTICULAR EVIL OF
CONSUMER VEHICLES- YOU MAY BE
ABLE TO SEE THAT AS WELL AND I
THINK THAT'S ONE OF THE THINGS
THAT WE WILL REALLY WANT. TO IS
YOU KNOW MAKE SURE COST BECAUSE
THERE'S ARE THE ONES WHO WILL
ABSORB THE COST OF IT- BUT ALSO
TRY TO MAKE SURE THAT
ELECTRIFICATION IS DONE IN A WAY
SO THAT IT. MINIMIZES THE AMOUNT
OF INFRASTRUCTURE THAT NEEDS TO
BE BORN AND I THINK WE'LL WE'RE
MINDFUL OF. THE CONCERNS YOU'RE
RAISING AROUND. OU KNOW THE
TYPES OF VEHICLES THAT PEOPLE
DRIVE AND I THINK WE WERE MORE
THAN WILLING TO LOOK AT THAT
OKAY. AND THEN IN TERMS OF THE-
INCREASE. IN TRANSMISSION AND
PROJECTS. I THINK A LARGE PART
OF THAT TEHACHAPI OVERRUN THIS
DUE TO THE FACT THAT BECAUSE OF
LOCAL OPPOSITION THEY- THEY
WENT. WENT UNDERGROUND WITH THE
WIRES WHICH WILL BE DOING OF
COURSE A LOT MORE OF- I DON'T
KNOW ABOUT THE OTHER PROJECTS
BUT THIS ONE. I WOULD THINK THAT
A LARGE FRACTION THAT OVERRIDE
WAS DUE TO THE UNDERGROUNDING
ZACHAREK CORRECT. AND HI FOR
DOING A LOT MORE THAT'S ANOTHER
ISSUE. THE AND IF I COULD JUST
THAT ARE NOT THAT HAVING TO TAKE
THESE ADDITIONAL CHALLENGES
AROUND THE THUS THE ROUTING OF
THE TRANSMISSION ITSELF AND
WHERE THAT MIGHT LEAD IS
SOMETHING THAT WE'VE BEEN TRYING
TO PUT MORE ATTENTION TO IN OUR
OWN PLANNING PROCESSES AND A
TRANSMISSION LINE WITH THAT WENT
INTO SERVICE A FEW YEARS AGO IN
SAN DIEGO WHEN WE ARE CONDUCTING
OUR TRANSMISSION PLANNING SO
THAT THERE WERE NO SURPRISES WE
COSTA DEL BOTH THE COST OF
OVERHEAD AS WELL AS UNDERGROUND
AND IT SPECIFIED ARE LEVEL ONE
OR THE OTHER. BUT WE DID PROTECT
THE PRICE INTO ACCOUNT RIGHT
FROM THE START WITH THE HATCH P.
ADMITTEDLY WE DID NOT SEE THAT
COMING BUT ANOTHER PROJECTS
WE'VE BEEN LOOKING FOR OTHER
OPPORTUNITIES AND THERE ARE
TIMES WERE GOING UNDERGROUND CAN
ACTUALLY SAVE US SOME MONEY BY
REDUCING THE CITING COSTS AND
LAND ACCESS COSTS BEYOND YOUR
ALSO AS YOU YOU'RE ALSO MORE
LIKELY TO FINISH PROJECT ON TIME
IF PEOPLE DON'T HAVE TO LOOK AT
THE WIRES. WHY IS SAN DIEGO.
SUCH A- DIRT THEY'RE PAYING A
LOT MORE FOR TRANSMISSION THAN
THE OTHER SAN DIEGO- ELECTRIC
GAS ELECTRIC IS PAYING A LOT
MORE FOR TRANSMISSION I CAN SORT
OF UNDERSTAND PG&E WITH VERY
SPREAD OUT- BASS AND I CAN
UNDERSTAND ADDISON BEING IN A
MUCH MORE COMPACT- BUT WHY IS
SAN DIEGO SO HIGH YOU WOULD
THINK THAT THERE. WELL I JUST.
CURIOUS. THE RESULT IN YOUR
GRAPH IMPAIRING THE THREE- I'LL
USE CLUSTER TRANSMISSION. OKAY
CLOSER TO THE COMMISSION
TRANSMISSION CAN WITH CENTER
ANDRE. I IT'S NOT I DON'T KNOW
IS READING I WAS JUST GOING TO
SAY- I'M ASSUMING THAT THE SUIT
AND THAT THIS IS JUST ONE THING
AT THE CHEQUERED THESE HIGH
VOLTAGE OR TOTAL TRANSMISSION
COSTS. HIGH VOLTAGE. AS A
PERCENTAGE OF RATES. OKAY SO IF
I'M SORRY IF THIS IS THE HIGH
VOLTAGE TRANSMISSION CHARGE- AS
A PERCENTAGE OF THEIR RATE IT
COULD JUST ALSO BE A FUNCTION OF
THE REST OF THEIR RATE BECAUSE
SOME TYPE THE HUBBLE BUT I
SHOULD ALSO CLARIFY OUR HIGH
VOLTAGE TRANSMISSION CHARGES ARE
COVERED ON A DOLLARS PER
MEGAWATT HOUR. FROM THE
UTILITIES OR THE LOAD SERVING
ENTITIES THAT ARE SERVING THE
LOAD BUT THE WIRES RATES
THEMSELVES REFLECTED DECISIONAL
RATE DESIGN SO NOT EVERYONE HAS
THE SAME RATE DESIGN FOR HOW
TRANSMISSION COSTS THAT ARE
BEING LEVELIZED THROUGH OUR
PROCESS ARE BEING RECOVERED FROM
RESIDENTIAL CONSUMERS SO THEY
CAN APPLY DIFFERENT RATE
STRUCTURES AS WELL IN THEIR
FINAL RATE DESIGN THAT WE DON'T
HAVE DISABILITY YEAH SAN DIEGO
OVER ALTHOUGH HAS HIGHER RATES
PERIOD. FOR THEIR CONSUMERS. CAN
I'VE NEVER QUITE UNDERSTOOD WHY
. I MEAN I WILL DEFINITELY GET
BACK TO YOU ON THAT SOME OF THE
INITIAL THINGS THEY HAVE A VERY
HIGH PENETRATION OF ROOFTOP
SOLAR IN THEIR- VERY SPRING TO
COST UP QUITE A BIT THEY ALSO
HAVE THEIR MORE OF A- YOU KNOW A
WIRES COMPANY THEN. ON THE OTHER
THE OTHER TWO UTILITIES BUT
WE'LL GET BACK TO YOU WITH THE
EXACT ANSWER ON OKAY THANK YOU.
THANK YOU AND THE QUESTIONS-
QUESTION SIR. THERE WERE TWO
QUESTIONS WHY ON THE EFFICIENCY
SIDE. OF BOTH FR MR RIGHT
LETTER AND MR MILLER. YOU KNOW
WHEN YOUR LAST SLIDE THAT THE
ISO'S REVIEWING YOUR GENERATION
INTERCONNECTION PROCESSES. WAS
THAT INVOLVED IN TO SPEAK FUTURE
INTERCONNECTION CLUSTERS HAVING
SIMILAR VOLUME. ISSUES YOU SEEN
WITH CLUSTER FOURTEEN. YOU HAVE
ANY POTENTIAL REMEDIES FOR THIS
IF THAT'S WHAT THINGS ARE ADDED
. RIGHT NOW ALL THE INDICATIONS
WE'RE GETTING FROM. AND I THAT
MAINLY FROM OUR OWN INTELLIGENCE
FOR PEOPLE THAT ARE TEND TO
DEVELOP THESE APPLICATIONS ON
BEHALF OF THE VARIOUS INVESTORS
IS THAT WE COULD SEE AS MANY OR
EVEN MORE APPLICATIONS COMING
OUT US AND THE NEXT CYCLE AND
THIS IS ACTUALLY SOMETHING WE
THINK WE NEED TO GET AHEAD OF
THAT IN SOME AREAS WE ARE
LOOKING AT INCREASING THE
APPLICATION FEES AS WELL AS
INTRODUCING OTHER REQUIREMENTS.
TOO SO THAT THE PROJECTS THAT
ARE READY TO MOVE FORWARD CAN
MOVE FORWARD ON A MORE TIMELY
BASIS AND THAT THE PROJECTS THAT
ARE NOT READY TO MOVE FORWARD TO
SOME EXTENT STEP ASIDE AND MAKE
WAY FOR THE ONES THAT ARE SO WE
ARE LOOKING AT WE'VE ALREADY
ASKED OUR BOARD TO APPROVE
CERTAIN CHANGES TOWARD TARIFFS
ALREADY IN THAT REGARD. AND WILL
BE BRINGING THE- YOU READY. DO
THIS YEAR CELS THAT WE'RE
WORKING ON AS WELL. SO PART OF
THAT IS TO MANAGED- AND FOCUS
THE ATTENTION ON THE ONES THAT
ARE READY TO MOVE SO THAT WE'RE
NOT DISTRACTED BY THE LARGE
VOLUMES THAT ARE NOT OKAY I
THINK IN ADDITION TO THAT I
THINK JUST HAVING. A RESOURCE
DEVELOPMENT PLAY OUT SO THAT THE
PROJECTS THAT ARE ACTUALLY
GETTING CONTRACTED ARE MOVING
FORWARD AND REALLY AND IT AND
THE ONES THAT ARE NOT ACTUALLY
GET CLEARED OUT OF THAT A
PROCESS SO KIND OF THIS BACKLOG
OF HAVING A LOT OF. DEMAND BUT
NOT A LOT OF DEVELOPMENT IS-
EXACERBATING THE ISSUE. OKAY NO
QUESTION FOR BOTH OF YOU IS
THAT. IN YOUR PRESENTATIONS USE
INPUTS FROM THE CPUC TO DO YOUR
TRANSMISSION PLANNING- BUT THEN
YOU MUST DEFEND THOSE SAME DATA
POINTS- WHEN YOU'RE BEFORE THE
CPUC. AND DONNA WERE WONDERING I
MEAN IS THERE A DIFFERENT WAY OF
GOING ABOUT- GETTING TO A PLACE
WHERE WE ARE MORE EFFICIENT AND
EFFECTIVE WITH OUR TIME- TO
ULTIMATELY GET TO THE END GOAL
THAT WE'RE TRYING TO ACHIEVE IN
WEB AND ASKED THE SAME QUESTION
FOR DIRECTOR MAKERS WELL. AT THE
CELLS WHAT ONE IS. YOU DAD HAD
AN ISSUE THAT SHOWS UP AND I
HAVE TO ADMIT I'VE TESTIFIED IN
ALMOST EVERY. MAJOR TRANSMISSION
FILING IN THE LAST TEN YEARS
IT'S GOING TO HEARING. AND THAT
THAT THE ISSUE IS YOU KNOW IT'S
FOR ITS IN FRONT OF US THAT WERE
RELYING ON INPUTS FROM THE
PUBLIC UTILITIES COMMISSION
ITSELF. AND THAT'S ONE OF THE
AREAS WE WOULD FOR TO SEE. MORE
MORE SCRUTINY. AT THE PROJECT
INITIATION STAGE. INSTEAD OF
GOING THROUGH ALL OF THE
DETAILED ROUTING ENGINEERING
WORK AND REVISITING THE QUESTION
OF IF THE LINE WAS NEEDED IN THE
FIRST PLACE. SO GETTING MORE
SCRUTINY OUT FRONT BUT BACKING
OFF ON THIS AFTER THE FACT.
DUPLICATION WOOD WE THINK IT'S
AN OPPORTUNITY FOR IMPROVEMENT
NOW HOT WHAT SHAPE THAT TAKES
THERE ARE DIFFERENT TYPES OF
MODELS OUT THERE BUT AS A
FUNDAMENTAL GOAL THAT'S
SOMETHING WE WOULD REALLY SEE
SOME. OPPORTUNITY FOR. THANK YOU
COULD I JUST ADD THAT WE- WE DO-
WE DO PARTICIPATE IN BOTH THE
CDC PROCESS OF DEVELOPING THE-
THE- THE FORECAST AND WE
PROVIDE. SOME INPUT ON THAT AND-
COLLABORATE- BUT ALSO IN THE CQC
PROCESS OF THE RESOURCE PLANNING
WE DO HAVE OPPORTUNITY AND WE DO
COMMENT. IN THE RESOURCE PLAN
BEFORE IT IS FINALIZED AND
APPROVED AND THUS KICKING OFF
THE INPUT TO THE TRANSMISSION
PLANNING PROCESS SO WE DO
EXERCISE THOSE ANA. THOSE
OPPORTUNITIES TO ENGAGE. THANK
YOU MUCH BAKER. YEAH I WOULD SAY
WE'RE ALSO CONCERNED ABOUT THE
NUMBER OF TIMES THAT- YOU KNOW.
THE PROPERTY FOR BY TO THE APPLE
I WOULD SAY OUR- WE ARE NOW
STUDYING. HOW WE CAN MORE
EFFECTIVELY ENGAGE UP FRONT. IN
THE PLANNING PROCESS- AND WAYS
TO GET SOME OF THE COST
CONSIDERATIONS THAT WE CARE
ABOUT ADDRESSED UP FRONT DOOR
LOOKED OUT UP FRONT- AS OPPOSED
TO. DOING SOME OF THAT FROM
CANDOR FROM THE END PART OF THE
STRATEGY BUT WE DO SEE THAT THAT
IS THE- ISSUE THAT WE NEED TO
LOOK AT. RIGHT THANK YOU EVER
HAVE ANY OTHER QUESTIONS OF GO
AROUND ONCE MORE IF NOT THANK
YOU- YOU'RE NOT GOING VERY FAR
SHE US SO WE MAY COME UP WITH
SOME. ADDITIONAL QUESTIONS WILL
GO ON WITH THE- AGENDA WE HAVE
SINCE JENNY MEN AND WITH VICE
PRESIDENT ASSET STRATEGY AND
PLANNING. FOR SOUTHERN
CALIFORNIA EDISON PLEASE. GOOD
AFTERNOON CHAIR GARCIA AND
MEMBERS OF THE- MY NAME IS XIN
GINNY MANON AND I'M VICE
PRESIDENT OF ASSET MANAGEMENT
AND BY FIRE SAFETY AT SOUTHERN
CALIFORNIA EDISON. I THANK YOU
FOR THE OPPORTUNITY TO SPEAK
WITH YOU TODAY ABOUT ONE OF THE
MOST IMPORTANT TRANSITIONS AHEAD
OF US. YOU KNOW THE BABY LOOK AT
THAT THE VALUE OF THE ELECTRIC
GRID GOES BEYOND THE COMMODITY
COST OF THE ENERGY DELIVERS. THE
GREAT POWERS ALL ASPECTS OF OUR
SOCIETY AS ELECTRICITY BECOMES
THE FUELING SYSTEM FOR A LARGER
PART OF THE ECONOMY WE MUST RE
IMAGINED WHAT THE FUTURE GREAT
SHOULD LOOK LIKE AT ALL LEVELS.
AND HOW IT MUST FUNCTION
DIFFERENTLY TO MEET THOSE
EXPANDED NEEDS. IN RECENT
HISTORY LOAD GROWTH AN
ELECTRICAL INFRASTRUCTURE BUILD
OUTS HAVE PROCEEDED AT A MODEST
PACE. WITH THE REASONABLE
PREDICTABILITY. WHILE AN
ELECTRIC SYSTEM UPGRADE CAN TAKE
AS LONG AS A DECADE DECIDE
LICENSE BUILD AND COMMISSION THE
EXTREMELY LONG LEAD TIMES FOR
MANAGEABLE GIVEN THE SMARTEST
PREDICTABLE GROWTH. HOWEVER WE
ARE CURRENTLY AT AN INFLECTION
POINT VERY RAPID ACCELERATION IN
ELECTRIC GRID UPGRADES AS NEEDED
COMPARED TO WHAT WAS SUFFICIENT
HISTORICALLY. SO IT'S ESSENTIAL
TO PREPARE SO THAT WE CAN
INCREASE DECARBONISATION
ACCELERATED ELECTRIFICATION
IMPROVE AIR QUALITY AND RESPOND
TO CLIMATE CHANGE IMPACTS. I'D
LIKE TO FOCUS FOR A MINUTE ON
THE DECARBONISATION ASPECT.
DECARBONISATION OF OUR ECONOMY
WILL BE A POOR DRIVER OF HOW THE
PLAN DESIGN AND OPERATE THE
ELECTRIC PARADE GOING FORWARD.
THE AIR RESOURCES BOARD IS
UPDATING THE STATE'S COPING
SPLAT BAND AS WE SPEAK THAT
CRAFTING THE STATE'S BLACK TO
CARBON NEUTRALITY BY TWENTY
FORTY FIVE AND THE IMPLICATIONS
FOR THE ELECTRIC SYSTEM ARE
MONUMENTAL. FOR THE ALTERNATIVE
THAT CARPET HIGHLIGHTED AS THE
PREFERRD SCENARIO ALTERNATIVE
THREE. BY TWENTY FORTY FIVE
ELECTRIC LOAD WOULD INCREASE BY
NEARLY TWO THIRDS FROM TWENTY
TWENTY LEVELS. WE WILL NEED TO
BUILD OUT SEVEN GIGAWATTS OF
SOLAR AND DO BIGGER WALKS OF
BATTERY STORAGE EVERY SINGLE
YEAR. FOR CONTEXT HISTORICALLY
WE HAVE ONLY BUILT OUT LESS THAN
THREE GIGAWATTS OF SOLAR AT THE
MAXIMUM. AND WE NEED TO CONNECT
ALL OF THAT TO THE GREAT TO MEET
INCREASED DEMAND FROM
ELECTRIFICATION. BY 2035100% OF
THE ANNUAL LIGHT DUTY VEHICLES
SOLD IN THE STATE WILL BE ZERO
EMISSION. WE ALSO EXPECT MAJOR
CHANGES IN HOW CUSTOMERS WILL
USE ELECTRICITY WHICH WILL PLACE
UNPRECEDENTED STRESS ON THE GRID
. DEMAND WILL BE HIGHER AND LESS
PREDICTABLE SUPPLY WILL BE MORE
INTERMITTENT AND DEPENDENCE ON
ELECTRICITY FOR TRANSPORTATION
HOMES AND BUSINESSES WILL
INCREASE. CONVERSATIONS WITH CC
THE CPUC ADVERTISER REVEALED A
GROWING APPRECIATION OF THE
CHALLENGES AHEAD OF US AND THE
NEED FOR ACTION NOW. I DO WANT
TO EMPHASIZE THAT TO HIT THE
SHARED GOALS WE WILL NEED TO DO
MORE THAN TRANSMISSION UPGRADES.
MEETING INCREASED LOCAL DEMAND
AND INTERCONNECTING DISTRIBUTED
ENERGY RESOURCES WILL ALSO
REQUIRE UPGRADES AND NEW DESIGN
AND OPERATING STANDARDS AT THE
BILL XIN LEVELS AND AT CUSTOMER
SITES. AS THE GREAT GETS MORE
COMPLEX AND INTERCONNECTED
TECHNOLOGY WILL BE A SIGNIFICANT
FOUNDATIONAL ELEMENT AS WELL
WHETHER IT IS FOR COMMUNICATION
AUTOMATION MORE SENSORS ON THE
GRADE OR CYBER SECURITY. TO
OPERATE A SAFE SECURE RELIABLE
AND FLEXIBLE GRADE YOU MUST ALSO
INVEST IN THE DIGITAL
INFRASTRUCTURE. LET ME QUICKLY
GO THROUGH A TOUR OF SOME OF THE
CHALLENGES BEFORE US A LOT OF
YOU THIS YOU HAVE BEEN TALKING
ABOUT. WHAT SPECIFICALLY MORE
THAN TWENTY MILLION LIGHT DUTY
ELECTRIC VEHICLES ARE EXPECTED
BY TWENTY FORTY FIVE IN
CALIFORNIA. WITH EACH NEW
VEHICLE SPEAK CHARGING BEING
ROUGHLY THE EQUIVALENT OF ADDING
A NEW HOME TO THE CORRECT. FOR
THE FIRST TIME SINCE THE
ELECTRIC GRID WAS BUILT A
SIGNIFICANT AMOUNT OF DIMOND
WILL COME FROM DEVICES THAT ARE
NOT STATIONARY MAKING LOAD
FORECASTING BY LOCATION MORE
DIFFICULT. NOT ONLY WILL THE
UNCERTAINTY OF DEMAND
FORECASTING INCREASE THE
VARIABILITY IN POWER SUPPLY WITH
RENEWABLE RESOURCES BUT ALSO
INCREASE AS MANY OF THESE ARE
INTERMITTENT RESOURCES. THIS IN
TURN WILL CHALLENGE THE GRID
STABILITY RELIABILITY AND
RESILIENCE. CONNECTING MILLIONS
OF SOLAR PANELS BATTERIES AND
ELECTRONICS TO THE GREAT COULD
CAUSE WIDESPREAD POWER QUALITY
IMPACTS SUCH AS VOLTAGE
DISTORTIONS. WHICH IF LEFT
UNMITIGATED WOULD SHORTEN THE
LIFE OF CUSTOMER AND GREAT
EQUIPMENT LIKE. THE BUSCA FUTURE
RENEWABLE RESOURCES WILL BE
LOCATED FAR FROM CUSTOMERS AND
THE CURRENT TRANSMISSION GRID
WOULD BE UNABLE TO DELIVER
ADEQUATE POWER TO OVERLOOKED
CENTERS. THE GRID WOULD BE
EXPOSED TO GROWING CLIMATE
CHANGE EFFECTS RECENT WILDFIRES
AND HEATWAVES IN CALIFORNIA ARE
ONLY PROOF OF THE ACCELERATION
OF THESE CLIMATE CHALLENGES. WE
CAN GO ON AND ON ABOUT THIS
CHALLENGES BUT WHAT ARE THE
SOLUTIONS. IN SHORT READ
PLANNING DESIGN AND OPERATIONS
NEED TO INVOLVE STARTING RIGHT
NOW. THOUGH THERE ARE CONTINUED
UNCERTAINTIES IN THE
TRAJECTORIES OF DEMAND GROWTH
AND RENEWABLE RESOURCE
DEVELOPMENT WE CAN ALL AGREE ON
THE END GAME. THAT IS WE MAY NOT
KNOW THE EXACT PATH BUT WE ALL
KNOW A DESTINATION. CALIFORNIA
SHOULD MAKE REASONABLE REFORMS
TO THE EXISTING PLANNING REGINA
AND PERMITTING PROCESSES WE NEED
LONGER TERM PLANNING AND WE NEED
TO GET AHEAD OF THE DEMAND
GROWTH CURVE BY BEGINNING THE
NECESSARY INVESTMENTS IN THE
TRANSMISSION AND DISTRIBUTION
SYSTEMS NOW. WE SHOULD HAVE
ELECTRIC UTILITIES PROACTIVELY
UPGRADE THE GREAT BY PROVIDING
THEM ADEQUATE COST RECOVERY
ASSURANCES. GETTING AHEAD OF
CLEAN TECHNOLOGY ADOPTION AND
WORSENING CLIMATE CHANGE IMPACTS
WILL ALLOW AVOID COSTLY JUST IN
TIME SOLUTIONS PREVENT THE GREAT
FROM BEING A BARRIER TO
ELECTRIFICATION AND
DECARBONISATION. AND IN FACT
ENABLE AN EQUITABLE AND
AFFORDABLE TRANSITION TO A CLEAN
ECONOMY. WE SHOULD ALSO EXPAND
ENERGY SYSTEM PLANNING ACROSS
STATE AGENCIES TO LONGER TERM
TIME HORIZONS AND TWENTY FORTY
FIVE DECARBONISATION OBJECTIVES.
WE NEED TO WORK ON THE NEAR TERM
NEEDS AND LONG TERM TARGETS WITH
EQUAL URGENCY. SIGNIFICANT
AMOUNT OF TRANSMISSION NEEDS TO
BE BUILT TO SUPPORT SB ONE
HUNDRED AND CARBON NEUTRALITY
ALL PARTIES AGREE ON THIS POINT
TWO. SO SPECIFICALLY FOR
TRANSMISSION. TWO THINGS FIRST
WE NEED TO PLAN USING DIMOND AND
RESOURCE FORECASTS THAT COULD
ACTUALLY MEET CALIFORNIA'S CLEAN
ENERGY GOALS OR AT LEAST HAVE A
REASONABLE CHANCE TO MEET THOSE
GOALS OTHERWISE WE FALL FURTHER
AND FURTHER BEHIND. WE SHOULD
ENSURE THAT KIND SO TRANSMISSION
PLANNING PROCESS OR D. B. B.
INCORPORATES TWENTY FORTY FIVE
GOALS THE TEN YEAR PLANNING
HORIZON OFF CRISIS B. B. B. DOES
NOT CURRENTLY INTEGRATE THE POTS
HIGHLIGHTED BY CARP SCOPING PLAN
SCENARIOS. TO HELP HIGH SO THE
STATE SHOULD REQUIRED THAT THE
CC PROVIDE FULL FIFTEEN YEAR I
PER FORECAST TO THE CHI SO FOR
USE IN ITS STEEL B. B. AND I PER
FORGOT SHOULD REFLECT A BIBLE
TRAJECTORY TO CARBON NEUTRALITY
BY TWENTY FORTY FIVE. THAT
INCORPORATE STATE POLICIES LAWS
REGULATIONS. AND EXECUTIVE
ORDERS. FOR EXAMPLE THE I PER
FORECAST TO THE HI SO FOUR
TRANSMISSION PLANNING SHOULD
REFLECT THE STATE POLICIES FOR
ELECTRIC VEHICLE ADOPTION. IN
OUR VIEW THIS WILL HELP. ENSURE
TIMELY MODELING AND APPROVAL OFF
A LONG LEAD TIME TRANSMISSION
OPERATES BY THE CRISIS. SECOND
WE NEED TO ESTABLISH A UNIFIED
STATE AND LOCAL CITING AND
APPROVAL PROCESS. ONE KEY
CHALLENGE WITH TRANSMISSION
DEVELOPMENT IS THAT PLANNING
BETWEEN RELEVANT ENTITIES IS NOT
ALIGNED LOCAL JURISDICTIONS AND
VARIOUS AGENCIES ARE NOT
EQUIPPED WITH PLANTS THAT COULD
BE CHEAP THE STATE'S GOALS. AS
THE SB ONE HUNDRED JOINT AGENCY
REPORT NOTED A UNIFIED PLANNING
PROCESS FOR DEVELOPING YOU
DIDN'T INCLUDE THE SCALE ENERGY
PROJECTS AND RESPECTIVE
TRANSMISSION LINES MUST BE
CONSIDERED. IT WILL ALSO BE
IMPERATIVE TO FASTRACK HIGH
PRIORITY PROJECTS BELLOWED IS
BOUND TO INCREASE WITH THE
SYSTEMS ARE ALREADY CONSTRAINED
ARE CLOSE TO BEING CONSTRAINED
AND ECONOMIC DEVELOPMENT IS
VITAL FOR EXAMPLE LOCATIONS IN
COMMUNITIES NEAR THE PORTS MAJOR
TRANSPORTATION CORRIDORS AND
WAREHOUSE DISTRICTS. IN OUR VIEW
THE STATE DOES NOT NEED NEW
AGENCIES OR NEW PUBLIC FINANCING
MECHANISMS IT NEEDS COMMONSENSE
REFORMS OF THE EXISTING
PROCESSES TO ENABLE PROACTIVE
GREAT INVESTMENT INVESTMENTS AND
MINIMIZE THE TIME TO CONSTRUCT
TRANSMISSION LINES. WE ARE
ACTIVELY WORKING ON SOLUTIONS
OURSELVES AS THE UTILITIES
EVALUATING THE IMPACT OF HIGH
ELECTRIFICATION SCENARIOS
TRANSITIONING FROM A BRIT
CENTRIC DO A MORE CUSTOMER
CENTRIC PLANNING. AND
STREAMLINING OUR INTERCONNECTION
PROCESSES IF WE ARE GOING TO
ACHIEVE OUR SHARED CLIMATE GOALS
AT AN AFFORDABLE AND EQUITABLE
TRANSITION TO CLEAN ENERGY FOR
ALL CALIFORNIANS WE NEED TO CUT
CURRENT TIME LINES DOWN AND FIND
WAYS TO UNDERSTAND TODAY WHAT
THE NEEDS OF THE FUTURE WILL BE
. THANK YOU FOR YOUR TIME AND I
LOOK FORWARD TO NEXT TO MY TENT
THANK YOU ALL ASKING YOU MY
COLLEAGUES IF THEY HAVE ANY
QUESTIONS OF YOUR PRESENTATION.
NO QUESTIONS BUT I LIKE TO GET A
COPY OF YOUR PRESENTATION. CAN
YOU SEEN THE OTHER QUESTIONS
WILL MOVE ON TO THE NEXT TO
CENTER- CAMERON. YOUR HEALTH
CARE SENIOR REGULATORY AND
MARKET AFFAIRS MANAGER. EDP
RENEWABLES. THANK YOU MR
CHAIRMAN THE MEMBERS OF THE
COMMITTEE APPRECIATE THE
OPPORTUNITY TO SPEAK TODAY ABOUT
THIS IMPORTANT TOPIC. MY NAME IS
CAMERON KASKY I WORK FOR EDP
RENEWABLES WERE UP- GLOBAL
NATIONAL MULTI TECHNOLOGY
RENEWABLE ENERGY DEVELOPER. AND
ALSO ASSET OWNER- WE DO WIND
SOLAR STORAGE OFFSHORE WIND
HYDROGEN WE HAVE- MOSTLY UTILITY
SCALE BUT ALSO DISTRIBUTED
GENERATION. BUSINESS I AGREE
WITH A LOT OF COMMENTS OF THEIR
PANELISTS SO FAR TODAY I WANT
TO- PRIMARILY ADD TO THE SENSE
OF URGENCY AROUND THE
TRANSMISSION QUESTION. IN MY
VIEW I THINK IT'S THE SINGLE
LARGEST BARRIER TO REACHING OUT
MERE CLEAN ENERGY GOALS I PREACH
APPRECIATE THE ATTENTION FROM
THE COMMITTEE. ON THIS ISSUE I
WILL SAY THAT THIS PROBLEM IS
NOT UNIQUE TO CALIFORNIA- BY ANY
MEANS IT'S ONE OF THE LARGER
CONCERNS- AND ALL THE STATES
THAT WE WORK AND TRANSMISSION IS
FUNDAMENTALLY A- A DIFFICULT
ISSUE TO DEAL WITH- A TOUCH ON
SOME OF THE FUNDAMENTAL REASONS
AT ALL I'LL GET I BROUGHT JUST A
COUPLE SLIDES- THERE ARE
REFERRED TO IN A LITTLE BIT-
THAT I THINK ARE IMPORTANT. BUT
SO I TOUCH ON SOME OF THE
REASONS WHY I THINK TRANSMISSION
IS SO DIFFICULT IN SOME AREAS
FOR IMPROVEMENT. ONE IS THAT
THERE'S SO MANY ENTITIES
INVOLVED IN THEY'RE ALL
DEPENDENT ON EACH OTHER RIGHT
TRANSMISSION OWNERS. AND
OPERATORS THEY REALLY NEED TO BE
TOLD- BY THE GENERATORS AND THE
LOAD SERVING ENTITIES WHERE
THEY'RE GOING TO CONTRACT FOR
NEW RESOURCES SO THEY KNOW WHERE
TO PLAN AND BUILD THE NEW
TRANSMISSION TO. THE SAME TIME
ON OUR HANDS- YOU KNOW WE NEED
TO BE CONFIDENT THAT THE
TRANSMISSION WILL BE THERE ONCE
OUR GENERATION IS BUILT- SO THAT
WE CAN DELIVER OUR RESOURCE
ADEQUACY. IN OUR CLEAN ENERGY ON
TIME- AND THEN THE STATE SIDE
YOU KNOW WE ALL NEED THE
REGULATORS. BLESS THOSE
INVESTMENTS IN ADVANCE SOMETIMES
AND ALSO YOU KNOW DO THE
PERMANENT WORK- TO MAKE THE
TRANSMISSION HAPPEN. SO THIS IS
AN AREA WHERE CONVENE ALL THE
ENTITIES WHERE SOME STATE
LEADERSHIP I THINK CAN REALLY BE
CRITICAL- TO HELP DRIVE THE
INDUSTRY FORWARD IN CUTS
THROUGH- SOME OF THOSE CHICKEN
AND EGG ISSUES. ABOUT THE OTHER
ISSUE A TRANSMISSION IS IT IT'S
BEEN TOUCHED ON ALREADY TODAY
BUT IT JUST TAKES SO LONG RIGHT
IT'S BY FAR THE LONGEST LEAD
TIME- ASSETS INVOLVED IN OUR
ENERGY TRANSITION WE CAN BUILD.
OUR CLEAN ENERGY RESOURCES
ARMATURE ONCE ANYWAYS IN ABOUT
EIGHTEEN MONTHS- BUT IT TAKES
YOU KNOW SEVEN TO TEN YEARS TO
BUILD NEW TRANSMISSION- EVEN
FOR. CERTAIN JUST UPGRADES WHICH
SHOULD BE RELATIVELY EASY TO
EXISTING INFRASTRUCTURE WHERE
YOU'RE RE CONDUCT DURING.
TRANSMISSION TOWERS IN EXISTING
RIGHT AWAY IT'S NEW SEEN
SIGNIFICANT DELAYS FOR THAT
WORK. SO THAT'S I THINK THAT'S
WHY THE CRISIS TWENTY YEAR
OUTLOOK- IS A REALLY IMPORTANT
STEP FORWARD IN THAT REGARD.
LAYS OUT THE FUTURE PICTURE OF
WHERE WE REALLY NEED TO GO WITH
TRANSMISSION NOW WE NEED TO TAKE
THAT INFORMATION AND- INCLUDE IT
. IN OUR RESOURCE PLANNING
PROCESS SEES IN THE STATE AND
MAKE SURE THAT WE'RE MAKING
THOSE INVESTMENTS- SOON SO IT'LL
BE READY WHEN WE'RE BUILDING
THOSE RESOURCES IN THE FUTURE.
THE OTHER ISSUE WITH
TRANSMISSION THAT WILL BE NO
SURPRISE TO FOLKS IS THE
PERMITTING CHALLENGES- THAT IS
JUST DIFFICULT CITING LINEAR
FACILITIES- IS DIFFICULT NO
MATTER WHAT THEY ARE. I DON'T
THINK THERE'S ANY EASY WAY
AROUND THAT BUT- I DO THINK THAT
THERE'S SOME PRINCIPLES THAT CAN
BE HELPFUL WITHOUT ISSUE ONE IS
STARTING EARLY. AND WE HAVE THE
TRANSMISSION OUTLOOK NOW- IT
PAINTS A PRETTY CLEAR PICTURE
FROM WHERE E WILL NEED SOME
UPGRADES I THINK STARTING THE
PERMITTING PROCESS ON SOME OF
THOSE LINES SOONER. RATHER THAN
LATER AND HAVING THE PERMITS
READY TO BE A PRUDENT STEP- THE
OTHER POINT HERE IS TO USE ON
CITING IS TO USE. OUR CORRIDORS
AS EFFICIENTLY AS POSSIBLE. AND
IF- THE STAFF TO GO TO THE WATER
SLIDE. WHEN I BROUGHT- THIS. I
MEAN A- THANK YOU. THIS IS A
REALLY GREAT PICTURE I WANT TO
SHARE WITH THE COMMITTEE THAT
ILLUSTRATES SOME OF BOTH THE
LAND AND COST THE COLONIES OF
SCALE BUILDING BIGGER
TRANSMISSION PRESIDENT
INCREMENTALLY GOING IN AND
BUILDING- SMALLER TRANSMISSION
ON A AS NEEDED BASIS IF YOU LOOK
AT THE- SEVEN SIXTY FIVE KV
TRANSMISSION CORRIDOR- EXAMPLE
VERSES OF THREE FORTY FIVE KV
EXAMPLES. SHOWS SIGNIFICANT YOU
KNOW COSTS PER MEGAWATT OF
TRANSFER CAPABILITY SAVINGS
ALMOST A FIVE FOLD SAVINGS PLUS
YOU CAN OBVIOUSLY SEE THE
ADDITIONAL RIGHT OF WAY SO-
EFFICIENCIES THERE SO IF WE CAN
GO IN AND REPURPOSE. EXISTING
RIGHT AWAY WITH SOME OF THE
SMALLER FACILITIES THAT EXIST
TODAY. AND AND ADDS LARGER
TOWERS THERE WE CAN
SIGNIFICANTLY COST EFFECTIVELY-
TO THE TRANSFER- CAPABILITY. THE
OTHER- QUICK POINT I WANT TO
MAKE IS OFF OF THAT OTHER SLIDE
IS JUST WITH RESPECT TO THE COST
OF TRANSMISSION- AND WE'LL SEE
IN A SECOND THREE DIFFERENT THE
NATIONAL STUDIES BUT THEY'RE
LOOKING AT. WHAT IT WILL TAKE TO
MEET CLEAN ENERGY STANDARDS
ACROSS THE COUNTRY- AND NOT TO
TAKE AWAY- FOR ME MISTER BAKER'S
COMMENTS ABOUT THE COST OF
TRANSMISSION I THINK PUT BOTH
THESE THINGS CAN BE TRUE. THE
COST OF TRANSMISSION IS
INCREASING IS AN IMPORTANT
FACTOR. TO KEEP OUR EYES ON BUT
NEEDS TO BE PUT INTO PERSPECTIVE
APOLOGIZE FOR THE DELAY HERE BUT
IT NEEDS TO BE PUT INTO
PERSPECTIVE. BUT THE LARGER
CLEAN ENERGY TRANSITION THAT
WE'RE TALKING ABOUT RIGHT AND IF
YOU THINK ABOUT THE AMOUNT OF
CLEAN ENERGY RESOURCES THEY WERE
GONNA HAVE TO ADD TO THE SYSTEM.
THESE THESE THREE DIFFERENT
STUDIES ACROSS THE COUNTRY. LOOK
AT THE TRANSMISSION TO SUPPORT
THAT AND THE COSTS OF THE
TRANSMISSION TO SUPPORT THAT YOU
CAN SEE THAT IN THAT CONTEXT THE
TRANSMISSION IS ACTUALLY A MUCH
SMALLER. PORTION OF THE OVERALL
INVESTMENTS FOR THE SCREENER TO
TRANSITION THAT WE'RE TALKING
ABOUT SO IT'S JUST IMPORTANT TO
KEEP THAT BROADER PERSPECTIVE
TRANSMISSION ABOUT SMITH IS
REALLY MEANT TO SAVE COSTS AND
GET ACCESS TO. CHEAPER PREFERRED
RESOURCES THAT ARE OUT THERE- SO
WITH THAT I THINK. WE'LL START
TO CLOSE AND- LOOK FORWARD ANY
QUESTIONS AND DISCUSSION- FROM
THE PANEL WHICH IS WE WANT TO
EMPHASIZE. THE IMPORTANCE OF
STATE LEADERSHIP ON THESE
TRANSMISSIONS THANK YOU THANK
YOU LICENSE- FOR THIS PRESENTER
. OKAY SEE NONE. WE'LL GET BACK
YES SIR. WHAT WOULD DO THAT IT
BENEFICENCE YOU GOT A GOOD LUCK
IT WE HAVE ONE THAT LAST
PRESENTER THAT SAID TENNIS WICK
YEAH ACTUALLY P. DIRECTOR OF
PERMIT CINEMA. CLICK THANK YOU
MISTER CHAIRMAN AND MEMBERS OF
THE COMMITTEE FOR HAVING ME HERE
IS A LOCAL REPRESENTATIVE AGAIN
I'M TENNIS WICK THE DIRECTOR
PERMITS IN OMAHA THE LAND USE
PERMITTING AUTHORITY FOR THE
COUNTY CINEMA I'M ALSO THE
PRESIDENT THE CALIFORNIA- COUNTY
PLANNING DIRECTORS ASSOCIATION
REPRESENTING THE FIFTY EIGHT
COUNTIES. HERE IN CALIFORNIA-
SONOMA COUNTY IS COMMITTED TO.
MORE EFFICIENT PERMITTING WHEN
IT COMES TO RENEWABLE ENERGY WE
WERE THE FIRST COUNTY IN
CALIFORNIA TO PARTNER WITH THE
US DEPARTMENT OF ENERGY
INFORMING- SOLAR APPLICATION
PROCESS THAT'S REDUCED OUR
PERMITTING TIMES FOR A
RESIDENTIAL ROOFTOP SOLAR AND
STORAGE- FROM A WEEK DOWN TO
NINETY MINUTES- AND WE'RE
LOOKING FOR FUTURE EFFICIENCIES
AND WORKING WITH PRIVATE AND
STATE PARTNERS WHEN IT COMES TO.
RENEWAL THAT RENEWABLE ENERGY
GENERATION AND STORAGE- MY
COMMENTS THIS AFTERNOON FOCUSED
PRIMARILY ON STORAGE- WHERE WE
ARE SEEING A PRIVATE ENTITIES
COMING IN AND MAKING
REPRESENTATIONS TO US ABOUT
STATE NEEDS- AND WHAT WE REALLY
NEED IS TO HEAR FROM STATE
AGENCIES ABOUT. WHAT CAPACITY WE
NEED TO PLAN FOR HOW THAT
TRANSLATES INTO ACREAGE AND-
PROXIMITY OF THESE FACILITIES TO
SUBSTATIONS. IF WE CAN DO THAT
WE CAN MOVE OUT OF THE AD HOC
PROCESS THAT WE HAVE NOW USE
PERMITS AND DESIGN- AND
ENVIRONMENTAL REVIEW WHICH IS
THE COMMITTEES I'M SURE FAMILIAR
WITH TAKE. ANYWHERE BETWEEN
EIGHTEEN MONTHS TO THREE YEARS
TO MOVE THROUGH A PROCESS TO
SOMETHING WHERE IF WE IF WE HAVE
THE INFORMATION WE NEED UP
FRONT. WE CAN- REDUCE THAT TIME.
TO A MINISTERIAL PERMIT- BY
DOING ALL THE UP FRONT PLANNING
OF ENVIRONMENTAL REVIEW CHANGING
THE GENERAL PLANS. AND ZONING
ORDINANCES SO WE CAN ACCOMMODATE
THESE USES. THAT RIGHT NOW IT
AND I SHOULD SAY REGARDING
ESPECIALLY THE STORAGE UNITS
IT'S NOT SO MUCH THE USE ITSELF
THEY'RE PRETTY STRAIGHTFORWARD
TO FIGURE OUT IT'S REALLY THE
SETTING WHERE THE SUBSTATIONS
ARE LOCATED. AT THE TIME THEY
WERE ORIGINALLY BUILT MANY OF
THEM- GREAT DEPRESSION ERA
LOCATIONS THEY WERE ON THE
PERIPHERY OF OUR COMMUNITIES BUT
NOW. THE BUILT ENVIRONMENT HAS
COME AN ENCROACHED AROUND THEM
AND THEIR NUMBER OF MORE
SENSITIVE RESOURCE ISSUES THAT
WE NEED TO ADDRESS UNDER THE
ENVIRONMENTAL QUALITY ACT
BEFORE- WE CAN AUTHORIZED READY
SO THANKS AGAIN FOR THE
OPPORTUNITY TO BE HERE AND LOOK
FORWARD TO ANY QUESTIONS. FOR
THE RIGHT THANK THANK YOU THANK
YOU TO ALL OF. THE PANELISTS AND
I MEAN I WOULD HAVE GOT A LONG
LIST OF QUESTIONS HERE THAT I'M
A JUMP INTO BUT OPEN IT UP FOR
SOME OF MY COLLEAGUES TO A TO
START OFF. SO FOR MR WHERE- ARM.
AGAIN PUTTING IN INFRASTRUCTURE
FOR- MORE ELECTRIFIED HOMES. AND
ALSO FOR EV'S YOU'RE GONNA HAVE
TO TAKE IT BACK YOU WOULD HAVE
TO REVISE YOUR LOCAL
INFRASTRUCTURE ARE YOUR
TRANSFORMERS ARE GOING TO HAVE
TO BE. MADE LARGER- YOU'RE GONNA
HAVE TO LOOK AT THE LOCAL WIRES
BUT THEY CAN CARRY- IS AND I
DON'T KNOW HOW MUCH YOU'RE
INVOLVED IN THIS PLANNING BUT
CAN YOU SAY ANYTHING ABOUT THAT
OR I ALSO FROM THE
REPRESENTATIVE FROM EDISON
AFTER. MR SINNOTT MISTER RADHA
WICK FINISHES. YES THANK YOU FOR
THE QUESTION WELL FORTUNATELY
LOCAL REGULATORS RARELY GET INTO
THAT LEVEL- THAT THAT FIELD WE
DON'T OCCUPY. AND IT'S- I THINK
OUR CHALLENGES FACED WITH THAT
AND THEN THIS HAPPENS THROUGHOUT
CALIFORNIA RELATIVELY OLD OLD
HOUSING STOCK. SO NOW THAT WE'RE
THE COST OF MONEY STILL
RELATIVELY CHEAP WE'RE SEEING A
LOT OF REMODELING AND THAT'S
WHEN- THE SOLAR INFRASTRUCTURE
AT LEAST ON THE PRIVATE SIDE ON
THE RESIDENTIAL SIDE. BECOMES
OUR PRIMARY FOCUS UNFORTUNATELY
IT'S NOT HOLDING ANYTHING BACK-
WHEN IT COMES TO LARGER
INFRASTRUCTURE THAT. MY
COLLEAGUES HERE DISCUSSING
CURRENT AND THEN FOR MISS
MARYLAND- HOW MUCH YOU'RE GOING
TO HAVE TO REBUILD OF YOUR
CURRENT LOCAL INFRASTRUCTURE. TO
TAKE INTO ACCOUNT THE FACT THAT
DEMAND PROBABLY DOUBLES. WE ARE
GOING THROUGH THE PLANNING
PROCESS SEES RIGHT NOW. AND BUT
WE DO EXPECT I JUST SPEAK
DIRECTLY INTO THE MICROPHONE YOU
NEED THEY DON'T NEED TO LOOK AT
ME AND PEOPLE WILL HEAR YOU MUCH
BETTER. WE DO EXPECT THAT THE
DISTRIBUTION INFRASTRUCTURE THAT
NEEDS TO BE UPGRADED BOTH TO
MEET THE LOAD OF ALSO TO
INTEGRATE THE DISTRIBUTED ENERGY
ROSE MY RESOURCES THAT THE BILL
BE IN A- OTHERS ROOFTOP SOLAR
OR- OTHER STORAGE FACILITIES AND
SO ON AND SO FORTH. IN ADDITION
LOCALLY BEYOND THE DISTRIBUTION
INFRASTRUCTURE- AS- THE BOSTON
FEEL PLANS- YOU KNOW I RETIRING.
IN THE IN THE LOCAL AREAS AND TO
BRING IN THE TRANSMISSION TO DO
THAT URBAN LOTS CENTERS. THE
TRANSMISSION OF THE SUB
TRANSMISSION SYSTEM NEEDS TO BE
UPGRADED AS WELL. OKAY BUT DID
GOING TO DOUBLE RATES RIGHT
REYES AND BY 2% DO WE HAVE ANY
BALLPARK NUMBERS THERE. I AM
UNABLE TO GIVE YOU AN EXACT
PERCENTAGE RIGHT NOW BUT IT IS
NOT- IT'S NOT MINIMAL AND I
CANNOT TELL YOU IT IF IT'LL BE
DOUBLE ARE NOT SITTING HERE
RIGHT NOW BUT BE EXPECT
SIGNIFICANT. BUILDOUT NEEDED AT
THE TRANSMISSION AND
DISTRIBUTION LEVELS DO LIKE I
SAID BOTH TO MEET THE- LOAD
GROWTH AND ALSO TO INTERCONNECT
THE RENEWABLE RESOURCES. AND
THEN MISTER BAKER HAVE YOU BEEN
CONSIDERING THIS ALPHA. LOCAL
REPLACING OF TRANSFORMERS AT
CETERA WILL IMPACT- RIGHT IN
ADDITION TO TRANSMISSION. YEAH
WE'RE WE'RE CONCERNED ABOUT THE
ENTIRE BUILD OUT- YOU KNOW IT'S
NOT AN ARGUMENT NOT TO DO IT BUT
IT IS AN ARGUMENT TO MAKE SURE
THAT WE'RE VERY CAREFUL IN WHAT
THE COSTS ARE. AND THAT WE'RE
LOOKING AT NOT JUST. WHAT THE
COST OF SERVICES BUT WHEN IT
MIGHT HIT. RATE PAYER SO THAT IT
CAN BE SPREAD OUT RIGHT BUT BUT
IT IS AN ISSUE WE CARE ABOUT AND
WE'RE LOOKING AT RIGHT NOW. YES
AND I WAS LISTENING TO ONE OF
THE- OUR ELECTRIC. LOCAL LAW
ENERGY PRODUCERS AND SUPPLIERS
THEY WERE SAYING THAT THEY
TALKED ABOUT A PARTICULAR COURT
. BOB WHERE THERE WERE TWO
TESLAS AND IF SOMEBODY GOT A
THIRD TESLA UNLESS PEOPLE WERE
SMART ENOUGH JUST TO TEST THEM
DIGESTA CHARGE THEM AT THE RIGHT
TIME GOOD FOR YOU OKAY. BUT IF
THEY DIDN'T THAT- THEY'D HAVE TO
PUT IN A NEW TRANSFORMER FOR
THAT PARTICULAR RACK COURT- SO.
WE'RE GOING TO HAVE TO BECOME
SMARTER ENERGY ENERGY- USERS AS
WELL. TAKEN MMHM. I'D LIKE TO
ADD SOMETHING S. LIMIT ASSEMBLY
MEMBER CORK- ONE OF THE
CHALLENGES IN ANSWERING THE
QUESTION THAT YOU ASKED IS- THE
- INTERNET UTILITIES. ARE
REQUIRED TO DO THEIR PLANNING
THEIR GOOD PLANNING BASED ON THE
DEMAND FORECASTS THAT THE CC
PRODUCES THAT'S PART OF THE- I
BURKE. AND THEN THE CQC REQUIRES
US TO USE THAT AND CURRENTLY.
THE AYE PER FORECAST THAT THE CC
PROVIDES US DOES NOT INCORPORATE
THE LEVEL OF ELECTRIFICATION AND
LOAD GROWTH THAT WE BELIEVE IS
COMING AND WE BELIEVE IT IS
NECESSARY TO MEET THE TWENTY
FORTY FIVE- CARBON NEUTRALITY
GOALS. SO THAT'S PART OF THE
CHALLENGE OF BEING ABLE TO
ACTUALLY PLAN FOR WHAT WE
BELIEVE COLLECTIVELY IS NEEDED
FOR CARBON NEUTRALITY. WELL
SOUNDS LIKE OMETHING THE CHAIR
CAN LOOK INTO OVER THE NEXT
MONTHS OR YEARS. THANK YOU MR
THANK YOU GOOD QUESTION IT CAN
GET INTO THE COST SIDE OF THINGS
AND EVERYONE'S WELCOME TO
ADDRESS THIS LAST INFORMATION
HEARING HELD FOCUSED ON THE
RISING ELECTRICITY RATES. HERE
IN CALIFORNIA AND CUSTOMERS
FINDING THEMSELVES IN A VERY
DIFFICULT SPOT THE GOVERNOR
PROPOSES SOME ADDITIONAL
RESOURCES FOR THE AREA-
CHALLENGES THROUGHOUT THE STATE
WERE EXCITED TO SEE THE NUMBER
THAT THESE BUT FORWARD. CLEARLY
PAINTING THE PICTURE THAT PEOPLE
ARE STILL STRUGGLING WITH- PAIN
THOSE UTILITY BILLS. SO I'D LIKE
TO SPEND SOME TIME IN TERMS OF
WATER SPECIFIC- ACTION ITEMS
THAT WE SHOULD BE LOOKING AT AS
IT RELATES TO THE BUILD OUT OF
THIS. TRANSMISSION NEED THAT WE
HAVE TO MEET THESE AMBITIOUS
GOALS. BUT AT THE SAME TIME-
KEEPING IN MIND- THESE COSTS
THAT ULTIMATELY- IMPACT- REGULAR
FOLKS. IN CALIFORNIA WILL DEAL
WITH A MISTER MAKER FIRST AND
THEN WE'LL OPEN IT UP TO OTHERS.
GIVEN THAT YOU DID UP A TOUCH ON
SOME POTENTIAL. IDEAS OR
SOLUTIONS ON THAT FRONT. YEAH I. I- I THINK WE NEED TO ROUTE
EVERYTHING IN WHERE DO WE NEED
TO BE IN TWENTY FORTY FIVE SO WE
HAVE TO START THERE AND HAVE TO
WORK BACKWARDS SO I DEFINITELY
AGREE THAT AND YOU KNOW AND I
THINK CARDS DONE A PRETTY GOOD
JOB IN LAYING OUT KIND OF
DIRECTIONALLY WHERE WE SHOULD BE
GOING AND WE HAVE TO INCORPORATE
THAT INTO INTO THE PLANNING
PROCESSES- I YOU KNOW I DO
THINK- YOU KNOW IT ALL STARTS
WITH WHAT WE NEED WHEN WE NEED
IT. IS A PLANNING PROCESS- I
CONTINUE TO BELIEVE THAT YOU
KNOW THERE ARE WAYS THAT WE CAN
BRING SOME EFFICIENCIES OUT OF
THE SYSTEM WE'VE LAID OUT A
COUPLE WAYS- LET'S LOOK AT HOW
WE'RE FINANCING THESE
INVESTMENTS THEIR ENORMOUS THERE
OVER A LONG PERIOD OF TIME IN
THE CONTEXT OF EVERYTHING WE
HAVE TO DO THEIR HUGE. I MEAN
THAT THAT THE OVERALL INVESTMENT
WILL BE HUGE. HEY SO HOW DO WE
YOU KNOW WHAT WHAT ARE WAYS THAT
WE CAN AND- WE TRANSMISSION H.
THERE GENERALLY SAFE INVESTMENTS
TO SELL- SO LOOKING AT THAT- I
WOULD ALSO. POINT OUT THAT I
THINK WE SHOULD REALLY TAKE A
CLOSE LOOK AT. YOU KNOW THE
SITING. AND PERMITTING
PROCESSES- BECAUSE I IT. IT IS
THE I BELIEVE THAT THEY WHAT WE
THINK THEY ARE RESPONSIBLE FOR
DRIVING UP. A CERTAIN AMOUNT OF
THE COSTS BUT THEY ARE CERTAINLY
HELPING TO STRETCH THE TIME
FRAME OUT AND WE REALLY NEED TO
WORK- YOU KNOW COLLECTIVELY TO
BUILD THINGS AS QUICKLY AS WE
POSSIBLY CAN IN THE MOST COST
EFFECTIVE MANNER. I THINK I'LL
LEAVE MY REMARKS THERE- IT. THAT
BUT HAPPY TO TALK MORE ABOUT
SOME OF THE OTHER IDEAS WE HALF
. IN HERE FROM OTHER BALANCE ON
THIS AS WELL. IS IT AYE I WOULD
JUST SPEND ADD TO THAT- YOU KNOW
IN OUR TRANSMISSION PLANNING
PROCESS AND I THINK THIS IS
SOMETHING YOU'VE HEARD FROM
OTHERS AS WELL WE OFTEN CALL IT
THE TRANSMISSION PLANNING
PROCESS BUT WE DO LOOK FOR OTHER
ALTERNATIVES WHAT'S THE LOWEST
COST WAY TO MEET THE NEED. AND
THAT INCLUDES A LOT OF ACTIVITY
ON NOT ONLY WHERE STORAGE MAY
EMERGE ON ITS OWN BUT WHERE WE
SHOULD BE TRYING TO WORK WITH
PEOPLE BUYING STORAGE TO GET
LOCATED AT THE MOST AFFECTED
AREAS. WE ALSO INCLUDE IN OUR
OWN STUDY WORK EACH YEAR WE
STARTED AN ANNUAL PROCESS OF
INCLUDING HOW MUCH STORAGE IN
CERTAIN AREAS WOULD ACTUALLY BE
EFFECTIVE AT HELPING MEET LOCAL
NEEDS BEFORE YOU START BUMPING
INTO THE PROBLEM OF HAVING TO
CHARGE THAT STORAGE IN ORDER TO
HAVE IT AVAILABLE AT THE NEXT
PEAK LOAD. SO THESE ARE PRODUCER
SOLUTIONS WERE TRYING TO GET AS
MUCH VISIBILITY OF AN
TRANSPARENCY ON AS POSSIBLE AND
LOOK FOR THE LOWEST COST IN THE
LONG RUN. AS MR BECAUSE SLIDE
SHOW THOSE QUITE OFTEN. WHEN
PEOPLE ARE LOOKING AT THE
TRANSMISSION COSTS THEY SEE THE
COST BUT THE BENEFITS SHOWS UP
SOMEWHERE ELSE. AND WE NEED TO
MAKE SURE THAT OUR DECISIONS ARE
TAKING ALL OF THE COSTS AND
BENEFITS INTO ACCOUNT. WHETHER
THAT'S A TRANSMISSION SOLUTION
STORAGE OR OTHER NEW EMERGING
TECHNOLOGIES. WE'VE ALSO BEEN
LOOKING AT- AT DIFFERENT OF
APPLICATIONS OF FLOW CONTROL
DEVICES TO MAKE THE BEST USE OF
THE INTEGRATED GRID. AS OPPOSED
TO JUST PUTTING POWER FLOW WHERE
IT WANTS TO. OUR PHYSICS TAKES
IT OUT THAT WE CAN BE MORE
ACTIVELY CONTROLLING THE FLOW OF
TRANSMISSION OF ELECTRICITY. TO
MAKE THE BEST USE OF THE
FACILITIES WE HAVEN'T THAT WE'RE
ADDING TO THE GRID. SO THAT
HOLISTIC VIEW IS REALLY
IMPORTANT TO COMING UP WITH THE
BEST OVERALL SOLUTION AND THE
INTEREST RATE PAYERS. BUT ALSO
INVOLVES LOOKING OUT LONGER TERM
NOT JUST WHAT'S THE- WHAT'S THE
CHEAPEST TODAY. BUT WHAT
PROVIDES THE BEST VALUE OVER
FIVE TEN FIFTEEN AND TWENTY
YEARS. YOU HAVE NOT OF YOU HAVE
- YES YOU KNOW WE TALK ABOUT AND
EQUITY ALL THE IT'S OF PART OF
THIS. SO THE TWO- SOLUTIONS THAT
I TALKED ABOUT IN MY REMARKS-
I'LL COME BACK TO THOSE BECAUSE
IF WE CAN A PROACTIVELY PLAN IF
YOU GET A HEAD OFF UP- YOU KNOW
FOR THE LONGER TERM THAT- LEADS
TO A MANAGED TRANSITION AND A
MANAGED TRANSITION WILL BE LESS
COSTLY THAN TRYING TO CATCH UP
AT THE END. DOING JUST IN TIME
UPGRADES ESPECIALLY FOR THE
LARGE BUILD OUTS LIKE A
TRANSMISSION PROJECTS AND THE
SECOND POINT IS ABOUT APPROVAL
OTHERS HAVE TALKED ABOUT IT THE
LICENSING PERMITTING REVISITING
THE NEED THESE ALL ADDS TO TIME
AND TIME EAGLES MONEY- EXTENDING
EIGHT TO TEN YEARS ALREADY LONG
SOMETIMES IT TAKES LONGER- SO. I
AND BIT ALSO KEEP IN MIND COUPLE
OF OTHER POINTS. THESE SEEMS
LIKE BIG INVESTMENTS BUT THESE
UNNECESSARY. IT IS INVESTMENTS
ARE IN ALICE'S SHOWS THAT IN THE
LONG RUN THE ENERGY COSTS FOR
CUSTOMERS WILL ACTUALLY GO DOWN
BY A THIRD DESPITE ALL THESE
INVESTMENTS THAT WE NEED TO MAKE
TODAY. WHETHER IT'S ON THE-
RENEWABLE GENERATION SIDE ALL
THE GREAT SIDE. AND LASTLY YOU
KNOW ONE OF THE THINGS AS WE
LOOK AT AFFORDABILITY IS NOT
ONLY THE COST OFF THE GRID
UPGRADES AND THE INVESTMENTS
NEEDED. BUT ALSO. THE COST OF
INACTION THE COST OF NOT DOING
IT. ESPECIALLY WITH CLIMATE
CHANGE AND MAKING SURE THAT IT'S
NOT THAT BAD EVERYONE IN
CALIFORNIA EVEN THE- PEOPLE WHO.
ARE DISADVANTAGED OR VULNERABLE
IN SOME OTHER WAY KATTAN- BUT
DISSIPATE SO HE'S IN A- BEGIN TO
LOOK AT BOTH SIDES OF THE COIN
BOTH THE COST OF DOING AND COST
OF NOT. UGH GOING AHEAD WITH
THESE INVESTMENTS THANK YOU.
THIS BAKER HI I WAS JUST GONNA
ADD ONE LAST STRATEGY TO THE YOU
KNOW LOWER THE COST LOOK AT THE
FINANCING- THAT THAT THE LAST
PIECES WHEN SOMETHING CAN HIT
THE RATE PAYERS BECAUSEOFTENTIMES WHICH YOU'LL SEE AS-
YOU KNOW THERE'S INCREASES IN
TRANSMISSION AND THERE'S BE AN
INCREASE INVESTMENT AND
DISTRIBUTION THERE'S WILD FIRE
THERE'S ALL OF THESE THINGS AND
THEY START TO PANCAKE OP. SO TO
WHAT EXTENT AND THIS IS YOU KNOW
WE NEED TO BE STRATEGIC ON HOW
WE DO THIS AND THINK ABOUT IT ON
THE WHOLE SYSTEM BUT TO WHAT
EXTENT CAN INVESTMENTS BE
DEFERRED EVEN IF IT'S FOR A
TEMPORARY SHORTER PERIOD OF TIME
OR CAN TO WHAT EXTENT CAN THE
IMPACTS OF THOSE INVESTMENTS ON
RATES BE DEFERRED THROUGH OTHER
MECHANISMS. SO ANYONE ELSE. LIKE
TO ADD. YEAH I REALLY APPRECIATE
ALL THE ANSWERS FROM THE OTHER
PANELISTS AND BUILDING OFF OF
WHAT MR BAKER WAS JUST SAYING
THERE I THINK ALSO BEING MINDFUL
OF AS ELECTRIFICATION- MATURES
YOU KNOW THAT SHOULD HELP US
SPREAD AROUND THE COST OF SOME
OF THESE LARGER INVESTMENTS AND
WELL SO IT REALLY IS A MATTER OF
TIMING AND STAGING MAKE SURE
THEY WERE BRINGING UP THE RATE
BASE AS A ROUTING UPSET SOME
COSTS TO IT. RIGHT GOOD COUPLE
QUESTIONS- LET'S GET YOUR
OPINIONS ON THE INTERSTATE
TRANSMISSION CONCEPT AND DOES
THAT HELP US AND THE IMMEDIATE-
DOES THAT PUT US IN A BETTER
POSITION TO MEET NOT JUST OUR-
VICIOUS GOALS BUT- STABILIZES
THE GREAT SYSTEM THE OTHER
QUESTION IS- YOU KNOW I MADE
REFERENCE IN MY OPENING COMMENTS
THAT LAST TRANSMISSION LINE TOOK
NINE YEARS TO SITE PERMIT AND
APPROVAL I MEAN IS THAT THE
BASELINE THAT WE SHOULD CONTINUE
TO BE POINTED TO THAT IT'S GOING
TO TAKE THAT LONG. TO BUILD
ADDITIONAL TRANSMISSION IN
CALIFORNIA OR IS THAT A UNIQUE
CIRCUMSTANCE THAT- TOOK THAT
LONG I MEAN I'D LOVE TO HEAR
PERSPECTIVES ON BOTH OF THOSE-
QUESTIONS FROM PANELISTS WHO
WANTED. TO MAKE SOME COMMENTS ON
THAT. SO WITH REGARD. TURKEY
WITH REGARDS TO- INTERSTATE
TRANSMISSION I THINK- A WELL
PLANNED- INTERSTATE TRANSMISSION
CAN BE QUITE EFFECTIVE IN
ACCESSING A DIVERSE SET OF
TECHNOLOGIES AND GEOGRAPHICALLY
DIVERSE OTHER RESOURCES. IT HAS
TO COME WITH A- A ACCEPTED
RESOURCE PLAN THAT A KNOWLEDGES
THAT THERE'S GOING TO BE
RESOURCES DEVELOPED AND
CONTRACTED IN THAT IN AND ACROSS
THE REGION IF IT DOESN'T THEN
IT'S A IT'S AN INVESTMENT TO
NOWHERE SO IT HAS TO BE AGAIN
COORDINATED WITH THE RESOURCE
DEVELOPMENT AND RESOURCE.
PROCUREMENT PLANNING- I THINK
THE AS A GENERAL MATTER THE
HAVING A ROBUST- INTERSTATE
TRANSMISSION GRID ALLOWS US TO
OPTIMIZE THE SYSTEM AND
OPERATIONALLY WE SEE THE
BENEFITS OF THAT THROUGH THE
WESTERN ENERGY IMBALANCE MARKET-
WE EXPECT THAT THOSE
OPPORTUNITIES WILL INCREASE AND
THOSE REGIONAL OPPORTUNITIES
WILL INCREASE OVER TIME- BUT IT
HAS AGAIN COME ALONG WITH SOME
COORDINATED- RESOURCE AND
TRANSMISSION PLANNING CONCEPTS
ON. ONE AND I THINK. I DO NOT
AGREE WITH THAT AND JUST ON THE
ISSUE OF TIMING- I HAVE TO ADMIT
UNTIL WE SEE THINGS SHIFTING
WERE ASSUMING TOSS THE WORST
CASE THAT THESE TYPES OF
PROCESSES WILL CONTINUE TO TAKE
THIS LONG. THAT'S NOT IDEAL BUT
THAT'S OVER HAVING TO BREAK INTO
OUR ACTIVITIES BECAUSE LIKE YOU
SAID UNTIL THERE IS- PROGRESS
ON. FINDING WAYS TO STREAMLINE
THE PERMIT THE PERMITTING AND
SHORTEN THOSE TIME LINES WHICH
IS WHERE THE BULK OF THE TIME
SPENT TO BE BLUNT THE AMOUNT OF
CONCERN TIME SPENT ON ACTUAL
CONSTRUCTION NOW IS BECOMING A
VERY SMALL PART OF THE TIMELINE
. THAT- UNTIL THERE'S SOME
PROGRESS WERE WERE HAVING TO
MAKE THOSE ASSUMPTIONS INTO OUR
WORK BUT THAT'S BECAUSE NOT
BECAUSE WE WANT TO THAT'S OUR
THAT'S OUR REALITY SO THAT'S
WHAT WE'RE HAVING TO PLAN
AROUND- BUT- BUT IT'S NOT IDEAL
. WHEN I WAS WANTING TO ADD TO
EITHER ONE OF THOSE QUESTIONS
THAT. TIME FRAME AND OR THE
INTERSTATE TRANSMISSION IDEA.
JUST ON THE ON THE REGIONAL GRID
I WAS JUST EMPHASIZE THAT IT'S
ABSOLUTELY CRITICAL IN ORDER TO
BE ABLE TO MEET OUR CLEAN ENERGY
GOALS BOTH RELIABLY AND COST
EFFECTIVELY IT'S REALLY
IMPOSSIBLE. TO IMAGINE DOING ALL
THREE OF THOSE SAYINGS RELIABLE
COST EFFECTIVE- AND CLEAN
WITHOUT A MORE REGIONAL ALLIES
STE. GRID ON THE TIMING FOR
TRANSMISSION. I THINK I WOULD
JUST SAY WE SHOULD- PLAN FOR THE
WORST AND HOPE FOR THE BEST AND
WORK TO BEAT THOSE TIME LINES AS
WELL BUT IT'S DEFINITELY URGENT
TO GET STARTED. YOU KNOW
RECOGNIZING THOSE LONGER
TIMELINES IN THE PAST. PLEASE
YEAH I'LL JUST ADD ON YOU KNOW I
THINK IT'S ESSENTIAL TO HAVE
DEAL GEOGRAPHIC DIVERSITY FOR
THE REASONS EVERYONE ELSE-
NOTED- I THINK ANOTHER REASON TO
FORMALIZE ANY KIND OF ROOM
REGIONAL- TRANSMISSION IS IT
ALSO ALLOWS THE OPPORTUNITY TO
MAKE SURE THAT THERE'S AGREED
UPON COST ALLOCATION BETWEEN THE
DIFFERENT REGIONS WHICH I THINK
WOULD ALSO GO A LONG WAY TOWARDS
EASING THAT. OKAY RIGHT IF FOR
NO ONE'S GONNA AT ADD ON TO
THOSE. TWO QUESTIONS I'M GONNA
PAUSE THE INFORMATION HEARING
FOR A MINUTE OPEN UP THE-
REGULAR UTILITY AND ENERGY
HEARING FOR A COUPLE OF MEMBERS
HAD ON TO MATTER AND WE'LL GET
BACK TO SEARS OF QUESTIONS FOR
YOU ON. WHICH UP PUBLIC COMMENTS
AS WELL FOR THE HEARINGS WELL
SELF AND JUST WAS QUICK PAUSE SO
WILL NOT RECONVENE THE UTILITIES
ENERGY HEARING. ACR ONE EIGHTY
EIGHT BE ADOPTED TO CONSENT OUR
QUE HAN. CUNNINGHAM CUNNINGHAM I
. HER SURGERY SANTIAGO SANTIAGO
I CHIANG. ELEVEN IT WILL LEAVE
THAT OPEN FOR OTHER MEMBERS TO
ADD ON WE WILL RECESS THE
UTILITIES AND ENERGY HEARING AND
RECONVENE THE INFORMATION
HEARING AT THIS TIME- ANY OTHER
QUESTIONS- THE- DOCTOR WORK.
QUESTIONS COMMENTS OKAY YOU KNOW
I I'D LIKE TO DO SOME LITTLE
DIFFERENT HERE AND A WEEK WE
HAVE PUBLIC COMMENTS THAT
FOLLOWS AFTER YOU KNOW THE
PRESENTATIONS HERE I'D LIKE TO
ASK THE THOSE WHO ARE IN THE
PUBLIC- AS THEY COME UP MAYBE
YOU HAVE A QUESTION OR TWO- OF
THE PANELISTS AND- YOU KNOW NOT
AND I GOT YOUR QUESTION RIGHT
BUT A CONSTRUCTIVE YOU KNOW
QUESTION ON A ON A ON A POINT
THAT PERHAPS WAS TOUCHED ON.
THAT WE'D LIKE TO HEAR SOME
ELABORATED RESPONSE TO ALL OR
FOR THAT MATTER A DIRECT
QUESTION THAT STATEMENT THAT YOU
WANT TO MAKE FOR ON THE RECORD
AT THIS INFORMATION HEARING SO
WE'LL START WITH- ALLEN WITH
SAYING THAT THANK YOU SO MUCH
OR YOUR PRESENTATIONS- NOT TO
PUT YOU ON THE SPOT HERE BUT WE
DEFINITELY WANT TO BE ABLE TO
HAVE A WELL ROUNDED- OPPORTUNITY
TO HAVE SOME POINTS RAISED
QUESTIONS ANSWERED AND THEN I'LL
COME BACK TO THE PALACE BECAUSE
WE ANTICIPATE HAVING ADDITIONAL
HEARINGS ON TRANSMISSION. AND
YOU MAY HAVE SOME IDEAS AND
SUGGESTIONS THAT YOU WANT TO
POINT US IN A SPECIFIC DIRECTION
THAT YOU YOU'RE LOOKING AND
SEEKING DIRECTION AND GUIDANCE
SO- MY APOLOGIES IN ADVANCE FOR
THE UNCONVENTIONAL APPROACH HERE
BUT NEVERTHELESS I WANT THIS TO
BE AS PRODUCTIVE AS POSSIBLE SO
WE'LL START WITH THE PUBLIC
COMMENTS THAT ARE HERE IN THE
ROOM HAVE PLEASE TAKE YOUR NAME
ORGANIZATION OF YOUR QUESTION OR
COMMENT PLEASE PUT THAT FOR
THANK YOU MISTER CHAIRMAN MY
NAME'S JOHN WHITE I'M WITH THE
CLEAN POWER CAMPAIGN IN THE
CENTER FOR ENERGY EFFICIENCY
RENEWABLE TECHNOLOGIES FIRST ON
EXPRESSED GRATITUDE TO THE CHAIR
AND TO THE MEMBERS AND THE
PANELISTS FOR THIS VERY VERY
GOOD HEARING COVERED A LOT OF
GROUND QUESTIONS HAVE BEEN GOOD.
IS REALLY REALLY IMPORTANT- ONE
OBSERVATION I WOULD MAKE ABOUT
THE COST OF TRANSMISSION IS IF
YOU KNEW THE HISTORY OF THE TO
HATCH A P. LINE AND HOW THAT
UNDERGROUNDING PROJECT HAPPENED
IT IT'S A SCANDAL WAS THE
INTERVENTION OF PRESIDENT PEAVEY
ON BEHALF OF A OF THE CITY AT
CHINO HILLS. THE TRANSMISSION
RIGHT AWAY WAS WITH THE- LINE
WAS ALL. THERE WAS JUST NEXT.
WITHIN EXISTING RIGHT AWAY AND
PEAVEY OF FORCED EDERSON TO
UNDERGROUND AT A COST OF SOME
THREE HUNDRED MILLION DOLLARS.
SO THAT'S A CAUTIONARY TALE FOR
WHEN YOU HEAR PG&E TELL YOU THAT
WE HAVE. ABOUT TEN THOUSAND
MILES WORTH OF TRANSMISSION
WE'RE GOING UNDERGROUND WHAT
THAT'S THIRTY BILLION DOLLARS
AND THAT AMOUNTS TO ALL THE
MONEY THAT THAT. THAT THAT UP
TWENTY YOUR OUTLOOK WAS GOING TO
COST. SO WHILE WE UNDERSTAND
WELFARE PROTECTION IS IMPORTANT
UNDERGROUNDING IS THE HIGH COST
SOLUTION IS NOT THE FIRST THING
THAT WE SHOULD DO WE HAVE MICRO
GRIDS WE HAVE OTHER ALTERNATIVES
SO. SO THAT'S THAT'S A COMMENT
THAT I WANTED TO MAKE- THE OTHER
THING I WOULD JUST OBSERVE IS
THAT ONE OF THE REASONS THAT THE
GOVERNOR HAS TO PUT MONEY FROM
THE STATE BUDGET INTO BUYING
SUPPLEMENTAL- ENERGY RESERVES IS
BECAUSE WE DON'T HAVE ENOUGH
TRANSMISSION THAT IS AVAILABLE
TO DELIVER THE PROJECTS THAT ARE
READY TO COME ONLINE. AND THAT'S
A FAILURE ON THE PART
PRINCIPALLY OF THE PC. BECAUSE
THEY PRACTICE THE JUST IN TIME
PHILOSOPHY THAT WE CAN WAIT
THERE'S NO HURRY WE'VE GOT
ENOUGH AND IT TURNS OUT THEY
WERE WRONG YOU KNOW THE IMPORTS
FROM THE RETIREMENT OF COAL.
WENT AWAY FOR MUCH FASTER OF THE
GAS PLANTS CONTINUE TO BE OLD
AND DIRTY AND INEFFICIENT THE
CLEAN ENERGY IS WHAT'S GOING TO
BOTH LOWER COSTS AS WELL AS
INCREASE RELIABILITY SO THIS IS
A REALLY IMPORTANT SUBJECT AND I
HOPE YOU STAY WITH THAT MISTER
CHAIRMAN WE LOOK FORWARD TO. YOU
TO HEARINGS AND THESE KINDS OF
QUALITY DISCUSSIONS MAKING RIGHT
THANK YOU- NEXT WEEK. GOOD
AFTERNOON MISTER CHAIR PATRICK
WELCH WITH THE CALIFORNIA
MUNICIPAL UTILITIES ASSOCIATION
ONE ALSO LIKE MISTER WHITE THANK
YOU FOR- DIGGING INTO THIS
IMPORTANT ISSUE AND ALSO ON THE
COSTS AS WELL. DON'T HAVE ANY
QUESTIONS FOR THE PANELISTS SO.
DON'T WORRY ABOUT THAT BUT I DO
HAVE A FEW COMMENTS I'D LIKE TO
DISCUSS TODAY. THERE ARE TWENTY
PUBLIC POWER UTILITIES THAT
RECEIVE THEIR TRANSMISSION
SERVICE IN THE CHI SO AND THE
REST ARE SERVED BY MUNICIPAL
BOUNCING AUTHORITIES WHICH ARE
WHICH LARGELY CONTROL THEIR OWN
ATRANSMISSION LINES THAT'S
SOMETHING FOR IT IMPORTANT FOR
THE COMMITTEE TO CONSIDER IS
THAT CHI SO COVERS 80% THE
STATE. THE OTHER 20% THE STATOR
COVER BY MUNICIPAL BOUNCING
AUTHORITIES AS WELL. WE
RECOGNIZE AT C. MADE THE- AND
SUPPORT THE NEED FOR SOME DEGREE
OF TRANSMISSION UPGRADES AND NEW
FACILITIES IN THE CHI SO GREAT
TO MEET THE STATE'S CLEAN ENERGY
GOALS. WE CAUTION THE COMMITTEE
THAT THE RUSH TO BUILD
TRANSMISSION IN CHI SO SHOULD
NOT OBSCURE THE IMPORTANT FOCUS
OF IMPROVING OVERALL RELIABILITY
IN MANAGING CUSTOMER COST
IMPACTS. MISTER BAKER IS ONLY
PROVIDED SOME INFORMATION ON THE
COST MPACTS OUR ANALYSIS SHOWS
THAT THE CHI SO A TRANSMISSION
COSTS HAVE TRIPLED IN THE PAST
DECADE. COSTS VARY BY REGION AS
MISTER BAKER DISCUSSED BUT IF
THE TREND CONTINUES WE ESTIMATE
THAT IN. NORTHERN CALIFORNIA THE
MONTHLY TRANSMISSION OSTS FOR A
CUSTOMER WILL INCREASE FROM
EIGHTEEN DOLLARS PER MONTH ON
THEIR BILL TODAY TO ABOUT THIRTY
FIVE BY TWENTY THIRTY THAT
DOESN'T GET US ALL THE WAY TO
TWENTY FORTY FIVE SO YOU CAN
IMAGINE THAT WILL GO UP. THAT'S
AN ADDITIVE COSTS THERE'S OTHER
THINGS LIKE DISTRIBUTION
WILDFIRE GENERATION THAT WILL BE
LAYERED ON TOP OF THAT. TO PUT
THIS IN CONTEXT CALIFORNIA'S
TRANSMISSION ACCESS CHARGE
NORTHERN CALIFORNIA IS ALREADY A
157% HIGHER. THAN THE NATIONAL
AVERAGE BY TWENTY THIRTY EVEN AS
NATIONAL SPENDING ON
TRANSMISSION INCREASES WE COULD
BE PAYING 210027% MORE THAN THE
NATIONAL AVERAGE. THERE ARE
DIFFERENT CHALLENGES FOR
MUNICIPAL UTILITIES OF THEIR OWN
BALANCING AUTHORITIES FOR SOME
TRANSMISSION UPGRADES MAY BE
ESSENTIAL IN SOME CASES TO
REACHING A 100% GOAL. BUT THEY
NEED BETTER PERMITTING AS BUSY
HAS BEEN DISCUSSED TODAY AND
SEQUEL LITIGATION PROTECTION TO
GET THESE PROJECTS DONE IN A
TIMELY MANNER. AND IN CLOSING
MISTER CHAIR REALLY APPRECIATE
THE COMMITTEE LEADING INTO THIS
TOPIC AND WE LOOK FORWARD TO
HAVE FURTHER DISCUSSIONS WITH
YOU AND THE REST OF THAT
STAKEHOLDERS THANK YOU. ARE
THANK YOU NEXT NEXT. BIGGER NEXT
PUBLIC COMMENT. THANK YOU GOOD
AFTERNOON- MISTER CHAIR. AND
MEMBERS OF THE COMMITTEE- ALSO
THANK YOU FOR- HOLDING THIS.
THIS HEARING- LOTS OF- GOOD
INFORMATION AND- IT'S BEEN A LOT
OF TIME- WITH YOUR STAFF. AND
THE WONDERFUL PREPARATION. THAT
SHE DID- I WANTED TO MAKE A JUST
A FEW POINTS ONE IS A
CLARIFICATION THAT P. GENIES
UNDERGROUNDING PROPOSAL. PARDON
ME A START OVER MISTER CHAIRMAN
VALERIE TERRELL OF LAJOS WITH
PACIFIC GAS AND ELECTRIC COMPANY
. SO THE ONE POINT I WANT TO
MAKE IS THE UNDERGROUNDING
PROPOSAL BY P. JEANNIE IS A
DISTRIBUTION LEVEL PROPOSAL.
THAT'S ONE POINT I WANT TO MAKE-
THE SECOND IS JUST- AS WE HAVE
ALREADY STARTED TO WORK WITH
YOUR STAFF WE WILL CONTINUE TO
WORK WITH YOU THE LEGISLATURE IN
YOUR STAFF- ON ANY ADDITIONAL
QUESTIONS THAT YOU HAVE ON COST
TRENDS- AND OTHER TRENDS- AT YOU
FURTHER EXPLORE- THIS ISSUE
THANK YOU. THANK YOU. GOOD
AFTERNOON MISTER CHAIR AND
COMMITTEE MEMBERS THIS IS
JONATHAN YOUNG WITH THE STATE
WATER CONTRACTORS AND I MAY BE
WONDERING WHY I'M UP HERE
TALKING AND ENERGY HEARING- BUT
ONE OF THE REASONS I WANTED TO
SPEAK TODAY IS THAT ENERGY IS
INCREASINGLY BECOMING ONE OF THE
LARGEST COSTS FOR THE STATE
WATER CONTRACTORS AS WE WORK ON
DELIVERING WATER ACROSS THE
STATE- OUR SUSPICION REPRESENTS
TWENTY SEVEN OF THE TOP TWENTY
NINE PUBLIC WATER AGENCIES THAT
CONTRACT WITH D. W. R. TO
DELIVER WATER FROM THE STATE
WATER PROJECT TO AREAS AS FAR AS
LA IN THE DESERT AND SO. YOU CAN
IMAGINE OUR ENERGY COSTS CAN BE
REALLY EXPENSIVE WHEN YOU TALK
ABOUT LIFTING IT OVER TO HATCH
APPEASE- AND SO ONE OF THE
THINGS I WANT TO REALLY RAISE
AND I THINK- MISTER BAKER AND
SEVERAL OTHERS SPEAKERS OF TOUCH
ON IT IS JUST THE NEXUS WITH
WATER FORD ABILITY ISSUES I'M AS
WE CONTINUE TO BUILD OUT THIS
TRANSMISSION NETWORK WE'RE GONNA
SEE INCREASING COST PRESSURES ON
WATER AFFORDABILITY. ESPECIALLY
AS IT RELATES TO DELIVERING
CONVEYING OF WATER THROUGHOUT
THE STATE I'M SO THAT'S ONE OF
OUR BIG CONCERNS IS WANT TO
THANK YOU AGAIN FOR THE
WONDERFUL PANEL IN THE EXCELLENT
SPEAKERS AND THE EFFORT THE
COMMITTEES PUTTING INTO THIS
SUBJECT. SO THANK YOU FOR YOUR
TIME. THANK YOU ANYONE ELSE
WISHING TO- SPEAK CAN PUBLIC
COMMENTS. ADDRESS QUESTIONS
COMMENTS CONCERNS COMPLAINTS- OF
THE ABOVE OKAY WE'LL WE'LL GET
BACK TO POUNDS IN A MINUTE THANK
YOU- IF YOU WANT OF REFLECTING
ON THOSE UGH WENT OVER MADE AND
YOU HAVE SOME THOUGHTS WILL ASK
YOU IN YOUR CLOSING COMMENTS TO
TOUCH ON THOSE WE'RE GOING TO GO
TO THE MODERATOR- MODERATOR DO
WE HAVE ANY ONE IN LINE TO-
THANK YOU LADIES AND GENTLEMEN
IF YOU'D LIKE TO SHARE A COMMENT
PLEASE PRESS ONE THEN ZERO ON
YOUR TOUCH TONE PHONE. AND WE
HAVE NO ONE CLEANED UP. ALL
RIGHT SO SAY NO ONE EITHER.
ASKED AND ANSWERED. NO ONE IS
PAYING ATTENTION TO WHAT WE ARE-
IN IN IN YOUR CLOSING COMMENTS
AT PERHAPS YOU'D LIKE TO ADDRESS
SOME OF THE POINTS THAT WERE
MADE DURING PUBLIC COMMENTS AND
IF SO I MEAN A ONE QUESTION I'D
LIKE TO PUT ON TABLES WELL LOT
OF OBSTACLES TO BUILD OF
TRANSMISSION YOU KNOW MAYBE YOU
CAN TOUCH ON WHAT ARE THE TOP
TWO OR THREE IN YOUR PERSPECTIVE
THAT WE NEED TO YOU KNOW PAY
CLOSER ATTENTION TO GET TO THE
END GOAL AND- BUT I'LL JUST TO
SAY THANKYOU AGAIN FOR. BEING
HERE FOR YOUR PATIENCE AND ALSO
YOUR CONTRIBUTION TODAY PLEASE.
WILL START. AGAIN THANK YOU FOR
HOLDING THIS. IMPORTANT AND FOR
INFORMATIONAL HEARING I THINK
IT'S IMPORTANT TOPIC- I'LL JUST
SAY THAT THE DIET SO IS VERY
COGNIZANT OF THE NEXUS BETWEEN-
RELIABILITY- A CLEAN ENERGY AND
AFFORDABILITY AND- WE'RE DOING
EVERYTHING WE CAN AS PART OF
THE- THAT. INFRASTRUCTURE
FRAMEWORK TO BUILD OUT THE RIGHT
TRANSMISSION IN AN AFFORDABLE
WAY IN A THOUGHTFUL WAY WE
CERTAINLY DON'T WANT TO GET
AHEAD OF. RESOURCE DEVELOPMENT
BUT WE CERTAINLY DO WANT TO KEEP
UP WITH THAT AND WE RECOGNIZE
THAT THE PACE OF RESOURCE
DEVELOPMENT HAS TO INCREASE-
THERE'S BEEN A LOT OF DISCUSSION
ABOUT- SOLUTIONS. ARE I THINK
THERE'S NO ONE SOLUTION AND I
THINK IT'S AN AND SITUATION WE
HAVE TO DO ALL THESE THINGS.
INCLUDING AS- HOW DO WE GET
DEMAND. ON A TO- REDUCE AT
CERTAIN TIMES THAT REDUCES
DEMAND FOR TRANSMISSION REDUCES
DEMAND FOR ENERGY WHEN YOU NEED
IT CERTAINLY ELECTRIC VEHICLES
AS AN OPPORTUNITY TO AFRICAN
SHAPE ELECTRIC VEHICLE
CONSUMPTION. TO TIMES WHEN WE'RE
NOT OTHERWISE PEAKING THAT HELPS
THE SYSTEM- IF WE CAN MOVE WATER
THROUGH THE SYSTEM AT TIMES WHEN
WE ARE NOT- PEAKING THAT IS
CERTAINLY A SOLUTION. SO I THINK
WE HAVE TO LOOK AT ALL THE MAN
SIDES- SUPPLY SIDE AND THEN COME
IN WITH A REASONABLE-
TRANSMISSION PLAN THAT LOOKS AT
AND ALIGNS WITH THOSE OTHER
SOLUTIONS WHETHER IT BE IN STATE
OR ACROSS THE REGION AND WE HAVE
TO REACH OUT TO OUR NEIGHBORS
ACROSS THE REGION BECAUSE WE IF
WE DO. REGIONAL DEVELOPMENT WE
CAN'T DO IT ALONE WE HAVE TO DO
IT IN A COORDINATED MANNER. SO
WITH THAT I AGAIN APPRECIATE THE
OPPORTUNITY TO HAVE THIS
IMPORTANT DISCUSSION IT'S NOT
THE END OF DISCUSSION I'M SURE
WE'RE GONNA CONTINUE THIS BUT-
THANK YOU. I'M FINE YES. THE
REPRESENTATIVE FROM I BELIEVE IS
A REPRESENTATIVE FROM THE
MUNICIPAL UTILITIES MENTIONED
SEEK WORK REFORM S. SEQUEL BEEN
A MAJOR ISSUE IN CITING. UP OUR
PLANT POWER LINES. ACTUALLY IT'S
THE COMPONENT THAT REQUIRES
ANOTHER DETERMINATION OF THE
NEED FOR THE PROJECT THAT IS
WHERE IT'S SOME OF THE
DUPLICATION OCCURS AND ALSO THE
DOTE AROUND PROJECTS THAT HAVE
BEEN. YOU KNOW APPROVED THROUGH
OUR PROCESS MOVING THROUGH THE
PERMITTING DETAILED ENGINEERING
ROADING ACTIVITIES BUT THEN WE
REVISIT THE NEED ALL OVER AGAIN.
AND THAT THAT CAN ADD EASILY AND
HAS ADDED YEARS IN ITSELF TO
DIFFERENT PROJECTS WELL SO THAT
I'M RETIRED BUT- PERHAPS SOME
OTHER MEMBER OF THE COMMITTEE
CAN TAKE THIS UP- TOUCHING THE
SEQUEL IS LIKE TOUCHING THE LIVE
WIRE BY THE WAY. THE BUT IT
SOUNDS LIKE SOMETHING THAT WE
SHOULD DO AND IF IT IS IN FACT
DUPLICATIVE. WEAKER IDEA REFORM
SYKORA IN SOME WAY BUT THAT
PARTICULAR FOR DECIDING YEARS TO
PROJECTS AND THEREFORE MILLIONS
MANY MILLIONS OF DOLLARS. THANK
YOU THANK YOU. PLEASE PROCEED.
YEAH INCLUDE THAT FIRST OF ALL
THANK YOU SO MUCH FOR HAVING US
TO SPEAK TO THIS IMPORTANT TOPIC
IN THE SECTION. OF I THINK IN
CLOSING I WILL. PROBABLY BE
REPEATING SOMETHING I'VE TALKED
ABOUT BEFORE. FROM OUR
PERSPECTIVE GETTING AHEAD OF THE
CURVE IS EXTREMELY IMPORTANT AND
PLANNING FOR THE LONG TERM
PLANNING TWO TO FIVE YEARS OUT
FOR DISTRIBUTION OR EIGHT TO TEN
YEARS OUT FOR TRANSMISSION IS
NOT SUFFICIENT ANYMORE. THE
GROWTH WILL BE EXPONENTIAL AT
THE BACK END BECAUSE WE'RE
TRYING TO GET TO THE SAME AND
GOAL IN TWENTY FORTY FIVE HAVING
A MORE MANAGED BUILD OUT WILL
HELP US LOOK AT WHAT THE NEEDS
ARE HOLISTICALLY. PLAN IN A
MANAGED WAY LOOK AT ALL THESE
DIFFERENT ARRAYS OF BALANCING
THE SUPPLY AND THE DEMAND IN
TERMS OF MANAGED CHARGING FOR
EV'S ARE IN A MANAGE TIME OF
CONSUMPTION BUT THERE IS FOR
WATER MOVEMENT OR OTHER. END USE
APPLICATIONS AND THEN THE SECOND
PIECE THAT WE HAVE BEEN TALKING
ABOUT IS LOOKING AT THE APPROVAL
PROCESS BOTH FOR THE NEED TO AND
DOES A PERMITTING AND SITING.
THE MAYBE THAT'S WE CAN DECIDE
LOOKING AT THE SUITE OF PROJECTS
WHICH ONES ARE THE HIGHEST
PRIORITY WHICH ARE THE HIGHEST
NEEDS LOCATIONS BOTH FROM A
GREAT NEED POINT OF VIEW AND
ALSO IN EQUITY POINT OF VIEW
FROM YOU KNOW AND THE
DEMOGRAPHICS IN CALIFORNIA AND
FAST TRACKING SOME OF THOSE HIGH
PRIORITY PROJECTS. OF TO START
WITH IS ON A LEAVE IT AT THAT
THAT MADE I THINK THOSE ARE. THE
THINGS THAT CAN START WORKING ON
RIGHT NOW. THANK YOU MR CHAIRMAN
AND COMMITTEE MEMBERS FOR HAVING
A LOCAL REPRESENTATIVE HERE
TODAY WE APPRECIATE IT- AND AS I
SAID IN MY OPENING COMMENTS TO
THE EXTENT THAT WEEKEND. NO THE
CAPACITY NEED. THE LAND AND THE
PROXIMITY TO THE EXISTING
INFRASTRUCTURE WE CAN HELP WITH
SEQUEL- IN REDUCING THE
PERMITTING TIME. THANK YOU. YES
THANK YOU AGAIN FOR HAVING US
HERE ARE HEY I THINK I WANT TO
TALK ABOUT A COUPLE THINGS ONE
IS JUST THE- WHAT. I THINK.
MIGHT THE NEXT STEPS FOR THE
COMMITTEE BUT- I THINK. REALLY
THINGS THAT I THINK WE'RE
COMMITTED TO DO AT THE PUBLIC
ADVOCATE'S OFFICE- THAT YOU KNOW
TO TRY TO DO OUR PART. YOU KNOW
ONE IS JUST TO MAKE SURE THAT
WE'RE CLEARLY INCORPORATING WHAT
THE STATE GOALS ARE IN THAT WERE
CONSISTENT WITH THOSE.
PARTICULARLY THE SCOPING PLAN
GOALS AND HOW THAT IN IN IMPACTS
OUR ADVOCACY- TO IS WE WOULD
LIKE TO BE MORE ENGAGED IN.
PARTICULARLY IN TRANSMISSION
PLANNING. UP FRONT AND WE WILL
BE COMING FORWARD WITH. TO YOU
KNOW TO OUR PARTNERS AT QUÉ AT
AT CHI SO WITH. SUGGESTIONS ON
HOW MIGHT BE TO BETTER
INCORPORATE SOME OF THE COST
CONSIDERATIONS UP FRONT SO THAT
WE CAN DO MORE UP FRONT AND
LESS. LESS IN THE BACK. THREE IS
WHAT WE DO THINK THAT IT IS
IMPORTANT TO LOOK AT. HOW ARE
FINANCING THESE IN GIVEN THE-
MAGNITUDE OF ALL OF THE
INVESTMENTS OVER DOING INTO THE
SYSTEM. SO WE'LL BE LOOKING AT
THAT AND WE'D- ENCOURAGE
LEGISLATURE ALSO TO LOOK AT
THAT. WE WILL ALSO BE LOOKING AT
THE IMPACTS OF THE CURRENT
PERMITTING REGIME STAT CITING A
PERMITTING REGIME WHAT ACTUALLY
ARE GETTING FORMA. COMPARED TO
KIND OF OTHER STATES AND- YOU
KNOW WHAT TO CREATE YOU KNOW
WHAT ARE THE BENEFITS WHAT MIGHT
BE THE BENEFITS OF MAKING IT
SHORTER. AND THEN FINALLY I
THINK THAT IT IS REALLY
IMPORTANT FILE ON OUR SIDE AS
WELL AS THE REST OF THE-
ELECTRIC PLANNING WORLD TO KIND
OF INCORPORATE ALL OF THESE IN
TOGETHER SO. WE'RE NOT DOING.
THE SAME YEAR WERE PUTTING A
WHOLE BUNCH INTO BUILDING
ELECTRIFICATION AND A WHOLE
BUNCH IN THE TRANSPORTATION
EXTRICATION WHOLE BUNCH INTO-
YOU KNOW NW TRANSMISSION. THAT
WE CAN SEQUENCE SOME OF THESE
OUT OVER REASONABLE TIME SO THAT
THEY CAN HIT RATE PAYERS. AT A
TIME WHERE SO YOU DON'T HAVE
RATE CSAKY DON'T HAVE REBELLION-
YOU KNOW YOU JUST HAVE LOW
GROWTH THAT STARTS TO MAKE YOU
KNOW TO MEET UP WITH WHAT THE
COST GROWTH THIS SOUTH. I'LL
LEAVE IT AT THAT AND THINK YOU
VERY MUCH FOR HAVING ME HERE
THANK YOU. BASED THANK YOU
CHERUB APPRECIATE IT- I WANT TO
TOUCH QUICKLY ON THE ON THE
SEQUEL A QUESTION- WE HAVE BEEN
LOOKING AT SOME POTENTIAL
CHANGES THERE AND I AM- FAMILIAR
WITH AT LEAST ONE EXAMPLE WHERE.
JUST THE QUESTION OF WHETHER OR
NOT A LINE WE CONDUCT DURING
WHICH AGAIN IS ALL WITHIN
EXISTING RIGHT AWAY WHO WOULD
HAVE TO GO THROUGH THE FULL C.
PCM PROCESS. ONE OF THE LESSER-
PERMIT TO CONSTRUCT PROCESS
THESE- TAKES UP A YEAR'S ORTH
OF TIME OF A TRANSMISSION
OWNER'S. LAWYERS TALKING WITH
THE SECRET DIVISION JUST TO
FIGURE OUT WHICH APPLICATION CAN
BE FILED. SO I THINK THAT'S ONE
EXAMPLE WHERE- SOME VERY
STRATEGIC. CHANGES TO CLEARLY
DEFINE YOU KNOW WHERE THAT
DEMARCATION LINE IS- COULD COULD
POTENTIALLY SHAVE OFF A YEAR'S
WORTH OF TIME. IN THAT EXAMPLE-
BUT IN CLOSING I WOULD. JUST
EMPHASIZE HOW IMPORTANT IT IS TO
ADDRESS THE COST QUESTIONS FOR
CONSUMERS. I THINK IT WAS
pCRITICAL THERE IS FOCUSING ON
BILLS. AND ALL ENERGY COSTS TO
CONSUMERS NET NET- AS WE
TRANSITION TO CLEAN ENERGY. I
WOULD ALSO EMPHASIZE AGAIN THE
IMPORTANCE OF STATE LEADERSHIP
ON TRANSMISSION QUESTIONS I
THINK. MAYBE NEED A NEW APPROACH
THERE THE- MULTI AGENCY. PROCESS
THAT CURRENTLY EXISTS IN TAKES
ABOUT SIX YEARS TO IDENTIFY. AND
APPROVE NEW TO NEW TRANSMISSION
I THINK THIS IS TAKING TOO LONG
SO WE NEED A MORE TARGETED.
APPROACH TO THAT AND THEN JUST
STOP AT THE SIZING IMPORTANCE
FOR ALL THIS. OF HAVING. A MORE
REGIONAL GRID THANK YOU. THANK
YOU MY COLLEAGUE HAS OF COURSE
ABOUT. ALL IT COMMENT- I'LL GET
TO WITH YOU RIGHT AFTER THE
MEETING AND WE COULD TALK ABOUT
SAKE WELL. NOT USE THAT THE
CHAIR MR HOLDEN WHO'S BEEN THE
CHAIR HERE OR SOMEONE ELSE WILL
BE AROUND NEXT YEAR- PERHAPS. WE
CAN SAY WE'RE NOT CHANGING
SEQUEL WE'RE JUST SAYING THAT
WHEN SOMETHING'S ALREADY BEEN
DONE IT'S ALREADY BEEN DONE-
IT'S VERY HARD. TO WORK ON THIS
PROJECT AND YOU WILL NEED THE
SUPPORT OF LABOR UNIONS. YOU
WILL NEED AT LEAST THE
PERMISSION OF THE
ENVIRONMENTALISTS BUT- IT SOUNDS
LIKE THAT'S SOMETHING WHICH
COULD MAKE A DIFFERENCE IN COST
AND THAT IS A BIG DEAL FOR US
RIGHT NOW. SCOTT WELL I DON'T
SEE SCOTT HERE BUT- HE'D BE A
GOOD PERSON TO TALK TO- SERVICE
HE HE M. HE WOULD BE A GOOD
PERSON TO TALK TO READ HE'S GOT
THE- LABOR UNIONS THAT. WORK FOR
THE UTILITIES I THINK YOU'D BE
INTERESTED IN THIS ISSUE AS WELL
SOUTH BOB GOOD LUCK I'LL BE GLAD
TO TALK TO YOU ANYTIME AND
SUGGEST SOME POSSIBLE AUTHORS.
GOOD LUCK HE SAID. I THANK DR WE
ARE I THINK THIS CONCLUDES OUR-
INFORMATION HEARING ON
TRANSMISSION CLEARLY- THIS LAST
POINT THAT WAS JUST MADE IS OF
INTEREST TO US AND PROP COULD BE
THE CENTER OF OUR OUR NEXT
TRANSMISSION CONVERSATION I
THINK IT TIES IN WITH THE
CURRENT STATE OF ENERGY. I
CHALLENGES THAT- THAT WE ARE
FACING ALONG WITH SOME OF THE
PROPOSALS THAT THE MAY REVISE
HAS PUT FORWARD AS IT RELATES TO
TRYING TO BACK FILL SOME OF OUR
ENERGY NEEDS- FOR TODAY SO- WILL
KEEP THAT IN MIND AS WE MOVE
FORWARD I WANT TO THANK ALL THE
PANELISTS AGAIN AND ALL THOSE
WHO- SPOKE DURING PUBLIC
COMMENTS- WE WILL ADJOURN THIS
INFORMATIONAL HEARING. AT THIS
TIME IT'S THREE ELEVEN PM THANK
YOU AND THAT WILL RECONVENE THE-
UTILITIES AND ENERGY- COMMITTEE
HEARING SERGEANTS IF YOU CAN-
CALL- THE ABSENT MEMBERS AND I
BELIEVE IT'S- BAUER K. HAN-
MISTER TEEN. AND THOSE WOULD BE
THE ONLY TWO YEAH WHAT WILL
LEAVE- THE CALL OPEN FOR A GOOD
FIFTEEN MINUTES. THANK YOU HAVE
A CARD. HER NAME ON THE RIVER-ACTUALLY MATTERS OF THE COURT.
ROBIN ROBERTS. THAT'S RIGHT YEAH
YOU AND I HAVE. MET YEAH. YEAH
REALLY. ONE IDEA CALLED USING
THE WE CAN DO.
TEN
IT WILL OPEN UP THE CALL. ACR
ACR ONE EIGHTY EIGHT. MY PHONE.
ACR ONE EIGHTY EIGHT THE MOTION
IS BE ADOPTED TO CONSENT PARA
QUE HAN KANG. KING I THANK YOU
OKAY AND- WE'LL LEAVE IT OPEN
FOR A FEW MORE MINUTES FOR OTHER
MEMBERS TO ADD ON.
OKAY AT THIS TIME THE UTILITIES
AND ENERGY HEARING WILL ADJOURN.