GOOD MORNING. UH WELCOME TO THE
JOINT HEARING OF THIS IS A JOINT
HEARING OF ASSEMBLY, UTILITIES,
NATURAL RESOURCES AND BUDGET. AH
MR EDDIE GARCIA IS RUNNING LATE.
HIS FLIGHT IS DELAYED, SO I WILL
BE CHAIRING OF THE HEARING AND
UNTIL HE GETS HERE. TO START. WE
HAVE SOME HOUSEKEEPING ITEMS TO
GO OVER. WE ENCOURAGE EVERYONE
TO PRACTICE PHYSICAL DISTANCING.
AS A REMINDER TO THE PUBLIC.
THIS COMMITTEE ACCEPTS IN PERSON
PUBLIC TESTIMONY TO MAKE TIME
FOR EVERY PERSON WAITING TO
COMMENT. WE WILL LIMIT PUBLIC
TESTIMONY TO ONE MINUTE PER
PERSON IF YOU ARE UNABLE TO
APPEAR IN PERSON TODAY YOU MAY
FILE WRITTEN COMMENTS TO THE
EMAIL ADDRESS ON THE COMMITTEE
WEBSITE. WE ARE MEETING TODAY TO
DISCUSS THE TOPIC OF MIDTERM
ACTIONS NEEDED FOR THE ENERGY
TRANSITION. WHILE THIS IS VERY
BROAD, OUR FOCUS TODAY WILL BE
ON RENEWABLE ENERGY RESOURCE
DEVELOPMENT TO MEET OUR 2030
GOALS. WE HAVE AUTHORIZED
SEVERAL BUDGET, UM AND ALLOCATED
FUNDING. UM, IN FUTURE YOUR
MONEY TO SUPPORT CLEAN ENERGY
RELIABILITY INVESTMENT PLAN, UM
, THAT THE CC WILL PRESENT IN
MARCH OF 2023 TO HELP IDENTIFY
ACTIONS THAT SUPPORT NEAR AND
MIDTERM RELIABILITY. WHILE
REDUCING GREENHOUSE GASSES. EACH
OF THESE ACTIONS ALONE WOULD BE
RECOGNIZED AS SOME OF THE
BIGGEST PIECES OF ENERGY POLICY
IN THE PAST DECADE. TAKEN
TOGETHER. IT MARKS A MONUMENTAL
INVESTMENT IN OUR CLEAN ENERGY,
FUTURE FUTURE THAT WE ALL
SUPPORT AS THE STATE CONTINUES
TO BATTLE THE EFFECTS OF CLIMATE
CHANGE, SUCH AS THAT OF HEAT
WAVES THAT CONTINUED TO ROLL
THROUGH THE SUMMER. AND EVERY
SUMMER WILL BE CONTINUING TO
ROLL THROUGH. BUT THE PURPOSE OF
THIS HEARING IS TO ASSESS WITH A
FOCUS ON 2030 WHAT ACTIONS HAVE
BEEN TAKEN BY THE STATE AGENCIES
TO DATE TO MEET OUR ENERGY
TRANSITION, WHAT ADDITIONAL
PLANNING AND ACTION MIGHT BE
NECESSARY AND TO HEAR. FROM
OUTSIDE EXPERTS THEIR VISION FOR
MEETING THE ENERGY TRANSITION.
THIS HEARING WILL PROVIDE A
BROAD OVERVIEW OF THE VISION OF
2030 AND PRESENT CHALLENGES AND
OPPORTUNITIES THAT WILL BE
EXPLORED, UM IN OTHER HEARINGS
AND OTHER COMMITTEES IN THE
FUTURE, INCLUDING TRANSMISSION
AND DISTRIBUTION, PLANNING THE
IMPACTS OF ELECTRIFYING THE
TRANSPORTATION SECTOR. AND THE
EVOLUTION OF THE NATURAL GAS
SECTOR. WITH THAT. I WOULD LIKE
TO INVITE MY COLLEAGUES TO
PROVIDE OPENING REMARKS. I'LL
START WITH OUR BUDGET CHAIR
ASSEMBLYMEMBER'S FILTERING UH,
THANK YOU, MADAM CHAIR. THIS IS
THE HEARING THAT IS A FOLLOW UP
FROM OUR BUDGET HEARING THAT WE
HAD A COUPLE OF MONTHS AGO IN
AUGUST. THERE ARE STILL A NUMBER
OF QUESTIONS THAT REMAIN
UNANSWERED THAT WOULD LIKE TO
TRY TO GET A CLEAR, CLEAR HANDLE
ON. I THINK THERE WAS A
SIGNIFICANT NUMBER AMOUNT OF
CONCERN IN THE LEGISLATURE. AS
WE WERE LOOKING AT EMERGENCY
ENERGY SUPPLY THAT THERE WAS AN
OVER RELIANCE ON FOSSIL FUEL. IT
WAS A. LACK OF REALLY
ARTICULATION OF FUTURE CLEAN
ENERGY PURCHASES. UH AND AT THE
TIME WHEN WE ARE MOVING TOWARD
OUR 2050 GOAL OF 100% RENEWABLE
ENERGY IT SEEMED ODD TO RETREAT
TO FOSSIL FUELS AND TO USE THAT
AS A CRUTCH. WHEN THERE WHEN WE
ARE THE CENTER OF THE GREEN AND
CLEAN ENERGY REVOLUTION, NOT
JUST IN THE COUNTRY, BUT REALLY
IN THE ENTIRE WORLD WHEN WE HAVE
SO MANY COMPANIES HERE,
INNOVATION GOING ON THAT HAS
SEEMED A REALLY OPPORTUNITY TIME
TO DOUBLE DOWN AND TO INVEST IN
THOSE TECHNOLOGIES. SO I THINK
THERE WAS A NUMBER OF QUESTIONS
, WHICH WERE NOT ABLE TO ANSWER
IN AUGUST. IT'S AN OPPORTUNITY
FOR THE ADMINISTRATION TO
ADDRESS MANY OF THOSE QUESTIONS
TODAY IN TERMS OF LONG TERM, UH
CLEAN ENERGY RESOURCES. WHICH
RESOURCES ARE WE REALLY GOING TO
BE? UM HEAVILY INVESTING IN OVER
THE NEXT 5 TO 10 YEARS, AS WELL
AS LOOKING AT INNOVATIVE
TECHNOLOGY LIKE DEMAND RESPONSE
THAT WE COULD REALLY UTILIZE IN
A PINCH, BUT ALSO UNDERSTANDING
THAT THAT CLIMATE CHANGE IS
HERE. CLIMATE CHANGE IS ALTERING
OUR REALITY, WHETHER IT'S WILD
FIRES OR DROUGHTS AND
UNDERSTANDING THAT THAT IMPACTS
OUR ENERGY GRID THAT IMPACTS OUR
ABILITY TO GENERATE
HYDROELECTRICITY. IT IMPACTS, UH
, INCREASES THE DEMAND FOR
BACKUP STORAGE BECAUSE NOW SO
MANY FOLKS WHO ARE IMPACTED BY
WILDFIRES AND POWER SHUTOFFS ARE
LOOKING AT BACKUP STORAGE ON
THEIR OWN, UH, GOING OFF THE
GRID IN SOME WAYS OR PARTIALLY
GOING OFF THE GRID WHEN THEY
NEED TO. SO MANY OF THESE ITEMS,
UNFORTUNATELY, WEREN'T DISCUSSED
IN ANY GREAT FASHION, EVEN AS WE
WERE UM, REALLY MOVING THROUGH A
VERY LARGE $1.6 BILLION.
PROPOSAL THAT INVOLVED KEEPING.
VERY OLD NUCLEAR POWER PLANT
OPEN. SO, UM YOU'RE TATE. WE'D
LOOK AT THIS AS THE BEGINNING OF
THE CONVERSATION, NOT A ONE AND
DONE CONVERSATION. I THINK WE'RE
HOPEFUL THAT THE ADMINISTRATION
IS COMING FORWARD WITH CERTAIN
ANSWERS THAT UNFORTUNATELY,
DIDN'T GET GET ANY ANSWERS IN
AUGUST. SO UH, VERY MUCH LOOK
FORWARD TO THIS HEARING. AND
LOOK FORWARD TO AGAIN. THE
DIALOGUE AND THE PARTNERSHIP
AND, UM YEAH, WELL, FEED IT BACK
TO THE CHAIR. THANK YOU. THANK
YOU. UM NEXT, I'D LIKE TO INVITE
, UH ASSEMBLYMEMBER'S FANG TO
GIVE OPENING REMARKS. THANK YOU,
MADAM CHAIR. UM CERTAINLY
APPRECIATE THE ATTENTION ON THIS
ISSUE. I THINK THAT WHEN WE TALK
ABOUT ENERGY AND THAT THE
REALITY OF OUR ENERGY CHALLENGES
AS A STATE, I THINK THEY ARE
GOING AWAY. I THINK THEY'RE ONLY
GOING TO INTENSIFY AND WHEN WE
TALK ABOUT RELIABILITY AND
AFFORDABILITY, THOSE ARE REAL
ISSUES THAT WE'RE GOING TO
ADDRESS AND WE HAVE TO ADDRESS
AND I THINK, UH, WE HAVE TO BE
PRAGMATIC AND REALISTIC. I
CERTAINLY UM THEY HAVE A
DIFFERENT PERSPECTIVE OF THOSE
ON THE DAIS, BUT I THINK WE NEED
TO HAVE AN HONEST ASSESSMENT OF
HOW WE ACTUALLY DEAL WITH THESE
CORE ISSUES. UM AND, UM AND
FIGURE OUT A WAY TO ADDRESS THEM
AND IN A WAY THAT PUTS
CALIFORNIANS FIRST. ESPECIALLY
WHEN WE TALK ABOUT HOW DO WE
KEEP THE LIGHTS ON? UM, WE HAVE
TO, UH, LOOK AT UM, YOU KNOW,
FOSSIL FUEL GENERATION NATURAL
GAS GENERATION. WE HAVE TO LOOK
AT THE VALUE OF THE APPLICATION.
I THINK WHAT WE SAW WITH THE
FLEX ALERTS IN THE SUMMER AND
THE DEBATE IN FRONT OF THE
LEGISLATURE ABOUT THE EXTENSION
OF THE ALLOCATION. I THINK IT
REVEALED A REALITY THAT WE'RE
GOING TO HAVE TO LOOK AT ALL
SOURCES OF ENERGY PRODUCTION, UH
, TO KEEP THE LIGHTS ON. SO
THANK YOU, MADAM CHAIR. THANK
YOU, MR FONG. WELL I LOOK
FORWARD TO HEARING FROM THE
PANELISTS ON HOW WE CAN PREPARE
FOR LONG TERM CLEAN ENERGY
RELIABILITY WHILE MAKING SURE
THAT THESE COSTS DON'T FALL ON
WORKING CALIFORNIANS, BUT. SO
WITH THAT WE'RE READY TO GET
STARTED. OUR FIRST PANELIST WILL
BE, UH, C E C VICE CHAIR. GUNDA
WILL START US OFF.
GOOD MORNING, GOOD MORNING
CHAIRS AND MEMBERS AND PUBLIC
PARTICIPANTS HERE. I'M SAYING
UGANDA VICE CHAIR OF THE
CALIFORNIA ENERGY COMMISSION FOR
THE RECORD. I JUST WANTED TO GO
THROUGH SOME OPENING COMMENTS
BEFORE WE ANSWER YOUR QUESTIONS
AS A PANEL HERE. THANK YOU FOR
THE OPPORTUNITY TO PROVIDE
OPENING COMMENTS TO YOU AND YOUR
COMMITTEE'S ON MIDTERM ACTIONS
NEEDED FOR THE ENERGY
TRANSITION. ELECTRICITY SYSTEM
RELIABILITY. CONTINUES TO BE ONE
OF THE MOST. CRITICAL PRIORITIES
OF THE C C C P U C AND CAISO
MEMBERS BEFORE I TALK ABOUT THE
SPECIFIC ACTIONS THAT WE HAVE
TAKEN COLLECTIVELY AS AGENCIES I
WANT TO ELEVATE HOW ALL THE
ACTIONS WE HAVE TAKEN SINCE 2020
HAVE HELPED US NAVIGATE A MUCH
HARDER SITUATION THAN 2020 AND
2022. JUST TO PROVIDE YOU A HIGH
LEVEL STAT. WE WERE NEARLY 6000
MEGAWATTS HIGHER THAN WHAT WE
EXPERIENCED DURING THE BLACKOUTS
IN 2020, AND WE WERE STILL ABLE
TO GET THROUGH THAT WITHOUT A
BLACKOUT. THANKS TO YOU, UM, THE
LEGISLATURE AND THE AND THE
ADMINISTRATION FOR ALL THE TOOLS
AND THE SUPPORT YOU HAVE
PROVIDED US OVER THE LAST
SEVERAL YEARS. OVER THE LAST TWO
YEARS, WE HAVE SUBSTANTIALLY
EXPANDED OR COLLECTIVE
COLLABORATION AND TAKING FULL
ADVANTAGE OF OUR COLLECTIVE
AUTHORITIES TO PLAN FOR THE MOST
CRITICAL SUMMER MONTHS THAT TEST
GRID RELIABILITY. BETTER
INCORPORATING CLIMATE CHANGE
INTO OUR PLANNING, ORDERED AN
UNPRECEDENTED LEVEL OF NEW CLEAN
RESOURCES, EFFECTIVELY
INCREASING AND PLANNING,
INCREASING OUR PLANNING RESERVE
MARGIN. IDENTIFIED AND BUILT OUT
ADDITIONAL EMERGENCY RESOURCES.
AND MANY OTHER THINGS. AS WE
NOTED AT THE BEGINNING OF THE
SUMMER CCN CASE WAS ANALYSIS
ASSURED THAT WE COULD HAVE A
SHORTFALL AS MUCH AS 1700
MEGAWATTS THIS SUMMER. IF YOU
ADD IN THE POTENTIAL FOR EXTREME
HEAT, AS WE SAW IN 2020 AND
WILDFIRES EXPERIENCED IN 2021,
WE COULD HAVE HAD 7000 MEGAWATTS
. SHORTFALL IS WATER ANALYSIS
SHOULD AND THAT'S NEARLY WHERE
WE LANDED THIS SUMMER. THIS
SUMMER, YOU AND THE GOVERNOR
TOOK BOLD STEPS TO MAKE
AVAILABLE AN UNPRECEDENTED LEVEL
OF RESOURCES AND AUTHORITIES
OVER THE NEXT DECADE TO SUPPORT
CALIFORNIA'S CRITICAL LIABILITY
, AFFORDABILITY AND TRANSITION
TO CLEAN ENERGY. MAYBE TWO OR
FIVE ESTABLISHED THE STRATEGIC
RELIABILITY DESERVE, WHICH WAS
ESSENTIAL TO ENSURING
RELIABILITY THIS SUMMER AND THE
OPTION OF OPTING, PERMITTING
INTO COGNITION OF UNPRECEDENTED
BUILD OUT OF CLEAN ENERGY
REQUIRED FOR THE LIABILITY AND
RSP 100 GOALS. MAYBE TWO. OH,
NINE FANS, MULTIPLE CLEAN ENERGY
PROGRAMS TO INVEST IN IMPORTANT
STRATEGIES TO REACH OUR CLEAN
ENERGY GOALS THROUGH BUILDING
THE CARBON IZATION OFFSHORE WIND
AND INVEST IN DEVELOPMENT OF
CLEAN ENERGY TECHNOLOGIES
THROUGH CLIMATE INNOVATION
PROGRAM. SB 8 46 ENABLES THE
STATE TO EVALUATE WHETHER
EXTENDING THE ABLOW CANYON
NUCLEAR POWER PLANT. IT'S
PRUDENT TO PROVIDE RELIABILITY.
THIS SUMMER, WE WERE AGAIN FACED
WITH ONGOING EXTREME DROUGHT
CONDITIONS AND AN EXTENDED AN
EXTREME HEAT UNLIKE ANYTHING WE
HAVE EVER SEEN BEFORE FOR
SEPTEMBER MONTH. ESPECIALLY
SINCE AUGUST 31ST. THAT LASTED
FROM AUGUST. 31ST TO SEPTEMBER
9TH SEPTEMBER 6TH WAS OUR WORST
DAY. THE EXPECTED ONE INTO
DEMAND FORECAST OR THE MEDIAN
FORECAST FOR SEPTEMBER. 2022 WAS
APPROXIMATELY 44,600 MEGAWATTS.
AND WE WERE ON OUR ON A TRACK TO
GET TO 53,000 MEGAWATTS THIS
SUMMER, WHICH WOULD HAVE PUT US
ABOUT 7000 MEGAWATTS HIGHER THAN
WHAT WE WERE ANTICIPATED. AND
YOU ALL EXPERIENCED WHAT HAS
HAPPENED ON ON SEPTEMBER 6TH. WE
WERE ON TRACK FOR THE 53,000
MEGAWATTS BEFORE DEMAND. SIDE
LOAD REDUCTIONS WERE CALLED ON,
INCLUDING A WIRELESS EMERGENCY
ALERT, WHICH WENT OUT TO 27
MILLION CALIFORNIA'S
CALIFORNIANS IN COUNTIES WITH
HIGH ELECTRICITY USE PATTERNS
DURING THE PEAK. SO ULTIMATELY
SYSTEM ULTIMATELY EXPERIENCED A
HIGHER 52,000 MEGAWATTS. LORD
HAS TOPPED 50,000 MEGAWATTS ONLY
TWICE IN THE I S S HISTORY WHEN
IT REACHED 11 50,006 MEGAWATTS
IN SEPTEMBER, 2017 AND 50,270
MEGAWATTS IN JULY 2006 BASED ON
HISTORICAL DATA. THIS WOULD PUT
THE EVENT AT A ONE IN 27 HEAT
EVENT OR WHETHER EVENT USING 30
YEARS OF DATA OR ONE IN 14 USING
20 YEARS DEAD OF JUST TO GIVE
YOU WHAT'S HAPPENING THERE, AS
YOU TAKE FEWER AND FEWER YEARS
FOR HISTORICAL ANALYSIS, WE ARE
SEEING THAT THIS IS BECOMING
MORE AND MORE NORMAL.
PRELIMINARY ANALYSIS SUGGESTS WE
WOULD HAVE NEEDED TO PLAN FOR
NEARLY 30% CUSHION SIGNIFICANTLY
HIGHER THAN WATER PRACTICES ARE
TODAY. TO GET THROUGH A DAY SUCH
AS SEPTEMBER 6TH. BY STAYING AT
30% CUSHION. WE DO NOT SUGGEST
THAT THIS BE ENTIRELY PROCURED
BY THE LDCS. BUT COLLECTIVELY,
LSC PROCUREMENT, THE STRATEGIC
RESERVE. THE ALL TIME IMPORTS
AND OTHER CONTINGENCIES SUCH AS
BALANCING AREAS SUPPORT IN
EMERGENCY. LOWER PRODUCTION
PROGRAMS ARE NEEDED TO SUPPORT
SUCH LEVELS OF CUSHION. AS
CHALLENGING AS IT WAS FOR THE
GRADE. WE WERE FORTUNATE IN
MULTIPLE WAYS. WE HAD RELATIVELY
LOW OUTAGE RATES OF OUR FLEET
THAT EXISTING GENERATION DURING
THE WORST DAYS OF THE EVENT.
THERE WERE MINIMAL WILDFIRES TO
THE ELECTRICAL INFRASTRUCTURE,
DESPITE THE FACT THAT THERE WERE
MULTIPLE WILDFIRES IN THE
VICINITY OF ELECTRICAL
INFRASTRUCTURE IN CALIFORNIA AND
PACIFIC NOTICED IN THE TIME
PERIOD. CAL FIRE AND OTHER
FIGHTERS. FIREFIGHTING AGENCY
DID AN OUTSTANDING JOB IN
MONITORING AND PROTECTING
CRITICAL INFRASTRUCTURE.
COORDINATION AND COLLABORATION
WITH IN CALIFORNIA AND ACROSS
THE WEST RESULTED IN STRONG
IMPORTS AND EMERGENCY
ASSISTANCE. GOING BOTH TO AND
FROM KAISER DURING THIS EVENT.
WELL THE HEAT EVENT AFFECTED THE
ENTIRE WEST. IT WAS NOT EXTREME
AT THE SAME TIME THROUGHOUT THE
REGION. FOR EXAMPLE, THE PACIFIC
NORTHWEST EXPERIENCED HIGH
TEMPERATURES EARLY ON, BUT WAS
ABLE TO PROVIDE ADDITIONAL
EXPORTS WHEN CALIFORNIA NEEDED
MOSTLY THERE WAS A COUNSELOR
THAT EFFORT ACROSS THE STATE TO
SUPPORT THE GRID DURING THE HEAT
WAVE. WE HAVE VERY CLOSE
COORDINATION AMONG GOVERNOR'S
OFFICE, SISI CPUC, CAISO, DWR
AND CALLOW. YES. THE GOVERNOR'S
OFFICE LED THE DEVELOPMENT OF
STATEWIDE PLAYBOOK, LEVERAGING
THE CAICEDO'S PLAYBOOK. FOR
OPERATIONAL NEEDS IN ADVANCE OF
THE SUMMER FOR SUCH EVENTS AND
INITIATE THE PLAYBOOK DURING THE
SUMMER EVENT. THE GOVERNOR
ISSUED AN EMERGENCY PROCLAMATION
ON AUGUST 31ST, ENABLING
EMERGENCY RESOURCES TO BE
ACTIVATED DURING THE CRISIS. WE
ARE WORKING TO QUANTIFY THE
IMPACT OF PARTICULAR EFFORTS,
BUT AT A HIGH LEVEL, THE
STRATEGIC RESERVE WAS ABLE TO
BRING APPROXIMATELY 1600
MEGAWATTS, DWR GENERATORS AND
CONTRACTS FOR IMPORTS BROUGHT ON
NEW SUPPLY. AND SEES HIS DEMAND
SIDE COULD SUPPORT PROGRAM WHICH
PROVIDED THE INTRODUCTION.
CUSTOMER LOADED ACTION THROUGH
THE FLEX CELLULAR AND WIRELESS
EMERGENCY ALERT MADE A
SUBSTANTIAL REDUCTION IN THE
LOAD. CPS IS EMERGENCY LOWER
PRODUCTION PROGRAM LIKE THE L R
P REDUCED LOADING KAISER
TERRITORY. DWR MAXIMIZED HYDRO
ELECTRIC GENERATION AND MINIMIZE
PUMPING DEMANDS FROM THE STATE
WATER PROJECT. TGS CARTEL ENERGY
USED ACROSS STATE FACILITIES,
INCLUDING A WARM SHUT DOWN IN 25
BUILDINGS, SETTING TEMPERATURES
TO 85 DEGREES AND SHIFTED TO
BACKUP GENERATORS AND OTHER
FACILITIES. WE WILL, WE WILL BE
PROVIDING A MUCH MORE EXTENSIVE
OVERVIEW FOR THE SUMMER IN THE
RELIABILITY REPORT, AS REQUESTED
IN A B 205, WHICH WILL BE
PROVIDED ON JANUARY 31ST. WE
WILL ALSO PROVIDE PRIMARY
ANALYSIS OF CALIFORNIA'S
RELIABILITY SITUATION FOR THE
NEXT DECADE. IN A REPORT IN
DECEMBER AS REQUIRED BY SP 8 46
. WE WILL EXPAND ON THE ANALYSIS
IN THE ABBEY 205 REPORT WITH THE
FOCUS ON MIDTERM RELIABILITY.
THIS ANALYSIS WILL INCLUDE
PROJECTIONS OF RESOURCE IS
EXPECTED TO BE ADDED TO THE
GRID. THE MOST UP TO DATE DEMAND
FORECASTS, INCLUDING ANTICIPATED
ELECTRIFICATION. WE'RE ALSO IN
THE PROCESS OF DEVELOPING
CLEANER GEE RELIABILITY
INVESTMENT PLAN AS AS CALLED FOR
IN SP 8 46 WILL SUPPORT
RELIABILITY AND DEPLOYMENT OF
CLEAN ENERGY RESOURCES AND LOWER
PRODUCTION RESOURCES. THE PLAN
WILL LAYOUT PROPOSED INITIATIVES
FOR FUNDING TO FURTHER
STRENGTHEN OUR GRID AND THE
LIABILITY THROUGH 2035. THE PLAN
WILL BE INFORMED BY PUBLIC
COMMENT. AND WILL BE PROVIDED TO
YOU BY MARCH OF NEXT YEAR. WE
RELEASED A REQUEST FOR
INFORMATION LAST MONDAY. AS OUR
FIRST OPPORTUNITY FOR PUBLIC
INPUT ON THE TECHNOLOGIES AND
APPROACHES TO CONSIDER IN THE
PLAN, AND WE WILL PROVIDE MORE
OPPORTUNITIES FOR PUBLIC INPUT
BEFORE WE ADOPTED PLAN AT A
BUSINESS MEETING AND BRING IT
BACK TO YOU. THE STRATEGIES, AND
THE PLAN WILL BE ALIGNED TO
SUPPORT THE CREEP POLICIES THAT
SOME OF YOU LAID OUT IN YOUR
COMMENTS TODAY. LAID OUT IN THE
LEGISLATION SUPPORTING THE
LOADING ORDER. REDUCED DEMAND
DURING THE NET PEAK LOAD,
SUPPORT NEAR AND MID TERM
RELIABILITY AND SUPPORT THE
STATE'S GREENHOUSE GAS GOALS. WE
ALSO WILL LOOK TO ENSURE THE
STRATEGIES ARE COMPLEMENTARY TO
OTHER ONGOING AND NEWLY FUNDED
PROGRAMS ESTABLISHED BY THE
LEGISLATURE. SUPPORTING
CALIFORNIA'S MORE MOST ADVERSELY
AFFECTED BY THE STATE'S EXISTING
FOSSIL RESOURCES AS WELL AS
SUPPORTING AFFORDABILITY. THANK
YOU AGAIN FOR THIS OPPORTUNITY
TO PROVIDE AN OPENING STATEMENT
. I WILL NOW TURN TO MY
COLLEAGUE PETE SCHOLAR FROM CPUC
, AND THEN HE'LL BE FOLLOWED BY
DELPHINE HÌ FROM CHI. SO THANK
YOU SO MUCH. THANK YOU. GOOD
MORNING. ASSEMBLYMEMBER'S MY
NAME IS PETE SCHOLAR AND I'M THE
DIRECTOR OF ELECTRIC SUPPLY
PROCUREMENT AND COSTS AT THE
CALIFORNIA PSC RIGHT IN THE
ENERGY DIVISION. THANK YOU FOR
THIS OPPORTUNITY TO PROVIDE YOU
WITH A STATUS UPDATE OF THE BUCS
ENERGY RESOURCE DEVELOPMENT
EFFORTS. TWO RECENT BèC AYE.
INTEGRATED RESOURCE PLANNING
DECISIONS ORDERED PUC
JURISDICTIONAL LOAD SERVING
ENTITIES THAT PROCURE NEW
RESOURCES THAT WILL PROVIDE
14,800 MEGAWATTS OF NET
QUALIFYING CAPACITY, WHICH
REPRESENTS THE AMOUNT OF ENERGY
THAT RESOURCE CAN DELIVER, UH
DURING PEAK PERIODS WHEN ENERGY
DEMAND IS THE HIGHEST ALL 11
5500 MEGAWATTS OF RESOURCES IN
THE SECOND ORDER WERE REQUIRED
TO BE CLEAN ENERGY RESOURCES AND
, UH, SO FAR FOR THE FIRST
ORDER, THE 3300 MEGAWATTS HAVE,
UH ARE TURNING OUT TO PROVING TO
BE MOSTLY BATTERIES. SO
ESSENTIALLY, ALMOST ALL OF
THOSE, UH WAS MEGAWATTS ARE
TURNING WILL BE CLEAN ENERGY
RESOURCES, AND THAT REPRESENTS
ALMOST ONE THIRD OF THE CURRENT
BèC JURISDICTIONAL PEAK LOAD.
THESE 12,800 OF THOSE MEGAWATTS
ARE REQUIRED TO COME ONLINE
BETWEEN 2021 2025. AND THE
REMAINING 2000 ARE QUESTION TO
BE ONLINE BY 2026. BUT THOSE ARE
LONG LEAD TIME RESOURCES. UH AND
THE DECISION ORDERING THEM
RECOGNIZE THAT THEY'RE A LITTLE
MORE CHALLENGES WITH THOSE
RESOURCES SO PROVIDED THAT THE
ENTITIES PROVIDE A SHOWING OF A
GOOD FAITH EFFORT. THEY DO HAVE
LIKE A TWO YEAR PERIOD TO
ACTUALLY BRING THOSE ONLINE AND
I BRING THAT UP THIS JUST
BECAUSE I THINK IT'S IMPORTANT
TO STRESS THAT WE'RE NOT GOING
TO GET ALL OF THIS DONE. WITH
BATTERIES, SOLAR AND WHEN WE
WERE GOING TO NEED SOME OTHER
RESOURCES, AND THEY'RE GOING TO
INVOLVE NEW TECHNOLOGIES THAT
COULD TAKE SOME ADDITIONAL TIME
OR THEY MAY NEED, YOU KNOW NEW
TRANSMISSION TO RESOURCE RICH
AREAS, AND SO WE NEED TO WE IN
RECOGNITION OF THAT THERE WAS A
LITTLE MORE, UH, GRACE PERIOD.
FOR THOSE NEW RESOURCES, THOSE
TYPES OF RESOURCES UM. THE THERE
ARE ALSO IN ADDITION TO THOSE
THERE ARE STILL RESOURCES COMING
ONLINE THAT WERE ALREADY
ENVISIONED AND INCLUDED IN OUR
BASELINE WHEN WE ORDERED THOSE
SO THINGS LIKE THEIR RENEWABLE
PORTFOLIO STANDARD RESOURCES
THAT WERE ALREADY IN PLAY AND
BATTERY STORAGE MANDATE
RESOURCES FOR THOSE WILL BE IN
ADDITION TO THESE NEW 14,800
MEGAWATTS. AH AND, UM AH! AND
THEN IN ADDITION TO THAT,
SPEAKING TO THE SUMMER
RELIABILITY CHALLENGES WE'VE HAD
OF LATE, THERE'S IN THE PC
SUMMER RELIABILITY DECISION. UH
WE DIRECTED THE UTILITIES THAT
INVESTOR OWNED UTILITIES TO
ENDEAVOR TO PROCURE ANOTHER 2 TO
3000 MEGAWATTS OF RESOURCES THAT
ARE AVAILABLE AT SUMMER PEAK
PERIODS FOR 2022 2023. UM THESE
THESE SOME RELIABILITY RESOURCES
INCLUDE THE NEW EMERGENCY LOAD
REDUCTION PROGRAM, WHICH IS
ENROLLED OVER FOUR MILLION
CUSTOMERS REPRESENT 900
MEGAWATTS OF POTENTIAL LOAD
REDUCTIONS TO PROCURE ADDITIONAL
IMPORT. UH IT ALSO PROVIDED
AUTHORITY TO PROCURE ADDITIONAL
IMPORTS, WHICH PROVIDED OVER
1000 MEGAWATTS OF INCREMENTAL
RESOURCES. DURING THE HIGHEST
LOAD DAYS THIS PAST SEPTEMBER.
AND A NUMBER OF NEW PROGRAMS AND
PILOT EFFORTS, INCLUDING NEW
DEMAND RESPONSE PROGRAMS. NEW
DYNAMIC RATES. UH A SMART
THERMOSTAT PROGRAM. NEW MICRO
GRID AUTHORIZATIONS IN
ADDITIONAL FUNDING FOR THE FLEX
ALERT PROGRAM. IT TAKES SEVERAL
MONTHS TO DEVELOP PRELIMINARY
ESTIMATES OF THE PERFORMANCE OF
LOAD REDUCTION IN DEMAND
RESPONSE PROGRAMS IN ADDITIONAL
TIME TO PERFORM MORE THOROUGH
ANALYSIS BY INDIVIDUAL PROVIDER
CUSTOMER CLASS PERFORMANCE. UH
OVER TIME, AS THE HEAT EVENT
PERSISTED, UH, ETCETERA, SO, UH
, WHILE WE KNOW THAT MANY WHITE
MEGAWATTS OF LOAD REDUCTION
RESOURCES WERE TRIGGERED BY THE
CASE, SO DURING THAT EVENT, WE
DON'T YET KNOW HOW THEY
PERFORMED. BUT WE WILL CERTAINLY
CONSIDER WHETHER AND HOW TO
IMPROVE THESE PROGRAMS BASED ON
THOSE PERFORMANCE RESULTS ONCE
THE MARKET SETTLEMENT DATA IS IN
HAND. FINALLY I'LL NOTE THAT ANY
NEW RESOURCES BEING PROCURED BY
LOAD SERVING ENTITIES, NOT UNDER
PUC JURISDICTION, UH, WHICH
WITHIN CASE AND MAKE UP ANOTHER
10% OF THE LOAD AND OUTSIDE OF
COOKED SO ANOTHER 25% IN
CALIFORNIA. ANY OF THOSE
RESOURCES WOULD BE ADDITIONAL TO
WHAT I'M REPORTING HERE. UM IN
TERMS OF THE FOCUSING ON THE NEW
RESOURCES THAT HAVE ACHIEVED
COMMERCIAL OPERATION IZATION SO
FAR. SINCE JANUARY 2020 OVER
4000 MEGAWATTS. UH OF CLEAN NEW
RESOURCES HAVE BEEN ADDED TO THE
CASE OF GRID, A LARGE AMOUNT OF
WHAT HAS BEEN ENERGY STORAGE
THAT CAN PROVIDE ENERGY DURING
THE CRITICAL NET PEAK HOURS AS
THE SUN IS SETTING. IN ADDITION
TO THESE NEW STEEL IN THE GROUND
RESOURCES, THE I O U. S
ACHIEVED, UM, VERY CLOSE TO THE
TOP OF THE 2 TO 3000 MEGAWATTS.
TARGET THAT, UH, THE SUMMER
RELIABILITY PROCEEDING TARGET IN
SEPTEMBER THIS PAST SEPTEMBER.
TO GET THESE UN PERCENTAGE
UNPRECEDENTED AMOUNT OF CLEAN
RESOURCES. ONLINE IN THE
REQUIRED TIME FRAMES. PROJECT
DEVELOPERS ARE CURRENTLY FACING
A NUMBER OF CHALLENGES, WHICH WE
ARE LARGELY FALL INTO THREE
CATEGORIES SUPPLY CHAIN
INTERCONNECTION AND PERMITTING.
ON THE SUPPLY CHAIN SIDE. THERE
ARE A LENGTHY LIST OF ISSUES
THAT HAVE AFFECTED THE NEW
RESOURCES SUPPLY CHAIN. UH AND
THESE ISSUES MAY RESOLVE ON
DIFFERENT TIMELINES. UH, THE
MARKET IS RESPONDING TO SUPPLY
CHAIN ISSUES IN DIFFERENT WAYS.
FOR INSTANCE, THE U. S
DEPARTMENT OF COMMERCE
INVESTIGATION OF THE OXEN SOLAR
PETITION CAUSED SEVERE
DISRUPTION WERE NEARLY ALSO
SOLAR PANELS THIS PAST SPRING
AND SUMMER. IN JUNE. THE BIDEN
ADMINISTRATION PROVIDED TWO YEAR
REPRIEVE. THROUGH JUNE 2024. BUT
WE'RE STILL WAITING FOR THE
OUTCOME OF THAT INVESTIGATION,
WHICH COULD ADD SIGNIFICANT NEW
TARIFFS TO THE SOLAR AND SOLAR
PLUS, UH, PROJECTS BEING
DEVELOPED SOLAR PLUS STORAGE
PROJECTS BEING DEVELOPED IN
CALIFORNIA. PROJECTS HAVE ALSO
FACED MANUFACTURING DISRUPTIONS
WITH COVID 19 RELATED SHUTDOWNS
IMPACTING BATTERY MANUFACTURING
IN CHINA, AS WELL AS DISRUPTIONS
IN THE SHIPPING MARKET.
SOMETIMES THEY'RE DELAYS IMPORT
OFFLOADING, BUT WE ALSO HAVE
SEEN CHALLENGES AND CHANGES IN
SHIPPING REGULATIONS THAT IMPACT
THE TYPES OF SHIPS THAT CAN
CARRY BATTERIES IN THE AMOUNT OF
BATTERIES THAT CAN BE LOADED ON
INDIVIDUAL SHIPS. LIKE THE REST
OF THE ECONOMY. WE KNOW THAT ALL
PARTS OF THE SUPPLY CHAIN OF
EXPERIENCED LIMITED AVAILABILITY
AND INFLATIONARY PRESSURES. NOT
JUST ON PANELS AND BATTERIES,
BUT ALSO ON CEMENT. TRANSFORMERS
AND OTHER BALANCE OF PLANT
EQUIPMENT. HMM. AH! PRICE
INCREASES IN PROJECT COMPONENTS
CAN MAKE PROJECTS UNVIABLE FOR
DEVELOPERS, MAKING IT MORE PRICE
LEE COSTLY FOR THEM TO COMPLETE
THE PROJECT AT THE NEGOTIATED
PRICE VERSUS JUST DEFAULTING ON
THE CONTRACT AND LOSING THEIR
DEPOSITS, AND MANY DEVELOPERS
HAVE SOUGHT PRICE RENEGOTIATIONS
AS A RESULT OF THE INFLATIONARY
PRESSURES AND REVISED ONLY LINE
DATES. AS A RESULT OF SUPPLY
CHAIN ISSUES. THE INFLATION
REDUCTION ACT CAME NOT A MOMENT
TOO SOON TO HELP SOME OF THOSE
PRICE INCREASES EXPERIENCE BY
DEVELOPERS AS THEY BRING THEIR
PROJECTS TO FRUITION. THE SECOND
SET OF CHALLENGES FACING
DEVELOPERS RELATE TO GRID
INTERCONNECTION PROCESS. THERE
ARE A LOT OF TIME AND RESOURCE
INTENSIVE STEPS THAT NEED TO BE
PERFORMED TO GET INTERCONNECTION
STUDIES AGREEMENTS AND EQUIPMENT
ITSELF IN PLACE SO THEIR NEW
RESOURCE CAN COME ONLINE AND
DELIVER ENERGY RELIABLY. FINALLY
THE THIRD SET OF CHALLENGES ARE
RELATED TO PERMITTING. IN
GENERAL, BUT ESPECIALLY THE
PERMITTING OF LARGE SCALE
BATTERY PROJECTS AS LOCAL
PERMITTING AGENCIES AND FIRE
MARSHALS FAMILIARIZE THEMSELVES
WITH THIS RELATIVELY NEW
TECHNOLOGY. THE CDC HAS HAS BEEN
SUPPORTING HIS EFFORTS OF LATE
AND THEY ALSO HAVE LAUNCHED A
NEW PERMANENT PROGRAM, WHICH
WILL PROVIDE AN OPTIONAL
ALTERNATIVE PATHWAY FOR SOME
PROJECTS. BèC UH, HAS BEEN
COORDINATING WITH OTHER STATE
AND LOCAL ENTITIES TO ADDRESS
THESE CHALLENGES. DIFFERENT
CHALLENGES REALLY THIS SPRING TO
HELP ENSURE THAT THESE RESOURCES
WERE BROUGHT ONLINE AS QUICKLY
AS POSSIBLE. THE PC SPEARHEADED
THE DEVELOPMENT OF A NEW
TRACKING ENERGY DEVELOPMENT TASK
FORCE TED TASK FORCE, WHICH IS A
JOINT EFFORT WITH PUC, CC CAISO
AND THE GOVERNOR'S OFFICE. OF
BUSINESS AND ECONOMIC
DEVELOPMENT. AND CURRENTLY,
GÓMEZ IS NOW COORDINATING THAT
TASK FORCE. THE OBJECTIVE OF THE
TASK FORCE IS TO TRACK NEW
ENERGY PROJECTS THAT ARE IN
DEVELOPMENT AND PROVIDE
DEVELOPMENT SUPPORT AS
APPROPRIATE FOR INDIVIDUAL
PROJECTS WHERE IDENTIFY BARRIERS
AND COORDINATED ACTIONS ACROSS
THE AGENCIES THAT CAN HELP
PROJECTS ARE AT LARGE. THE
PRIORITY FOCUS OF THE TED PACKED
TASK FORCE HAS BEEN PROJECTS
THAT COME ON LINE IN THE NEXT 1
TO 3 YEARS. UH IN TERMS OF WHAT
WE'VE SEEN, SOME PROJECTS HAVE
SOUGHT LAST MINUTE ASSISTANCE
WITHIN OUR CONNECTION PERMITTING
SHIPPING OR CONSTRUCTION
CHALLENGES. AND REITERATING THE
IMPORTANCE OF PUSHING THESE
NORMAL CONSTRUCTION
COMPLEXITIES. TWO KEY
STAKEHOLDERS SO THAT THEY
PROJECTS CAN REACH COMPLETION
COMPLETION AND SERVER LIABILITY
HAS BEEN EXTREMELY HELPFUL IN
GETTING THESE PROJECTS COMPLETED
ONLINE AND ONLINE. IN FACT, IN
SOME CASES, IS FLAGGING TO A
SPECIFIC AGENCY THAT THE BALL'S
IN THEIR COURT. AH AND OR, UM,
YOU KNOW, WRITING LETTERS TO IN
SUPPORT OF PERMIT EXTENSIONS TO
WORK OUTSIDE OF THE TYPICAL TIME
FRAME, SO YOU KNOW VARIETY OF
DIFFERENT THINGS THAT WE'VE DONE
TO TRY TO HELP MOVE PROJECTS
ALONG THAT HAVE BEEN PRETTY
SUCCESSFUL SO FAR. AND FINALLY,
WE'VE ALSO THE CAISSON PUC HAVE
INITIATED THE TRANSFORMATION
DEVELOPMENT FORUM TO CREATE A
REGULAR, TRANSPARENT OPPORTUNITY
FOR STAKEHOLDERS. AH TO TRACK
THE STATUS OF TRANSMISSION. UH
NETWORK UPGRADES THAT AFFECT
INDIVIDUAL GENERATORS AND ALL
OTHER TRANSMISSION PROJECTS IN
GENERAL THAT ARE APPROVED BY THE
CHI SOS TRANSMISSION PLANNING
PROCESS. IN THESE QUARTERLY
MEETINGS, TRANSMISSION OWNERS
PROVIDE STATUS, UPDATES WITH A
STRONG FOCUS ON DELAYS AND
REASONS FOR THE DELAYS AND
REVISED TARGET COMPLETION DATES
, WHICH HELP DEVELOPERS
PRIORITIZE AND SEQUENCE OTHER
COMPONENTS OF THEIR PROJECTS.
LASTLY I WANT TO MENTION THAT
THE PCS EFFORTS TO KEEP
ELECTRICITY RATES AFFORDABLE FOR
ALL CUSTOMERS WHILE ACHIEVING
OUR CLEAN ENERGY AND RELIABLY
GOALS ARE CRITICALLY IMPORTANT.
UH IN THE ANNUAL SP 6 95 REPORTS
THE LEGISLATURE. THE PUC HAS
HIGHLIGHTED RATE TRENDS AND
IDENTIFIED THE COST DRIVERS OF
ELECTRIC RATES, WHICH ARE
PRIMARILY WILDFIRE MITIGATION,
INVESTMENTS, TRANSMISSION,
INFRASTRUCTURE AND REVENUE
SHORTFALLS FROM THE GROWTH AND
BEHIND THE MEDIA RESOURCES AS
WELL AS SECONDARY COST DRIVERS
FROM TRANSPORTATION, ELECTRIC
ASIAN INVESTMENTS AND ENERGY AND
CAPACITY PROCUREMENT FOR
ELECTRIC RELIABILITY. THE BUCS
AFFORDABILITY RULEMAKING ADOPTED
METRICS TO JOINTLY TRACK
AFFORDABILITY ISSUES FOR
CUSTOMERS ACROSS THE UTILITY
INDUSTRIES. THE CPC REGULATES
AND REQUIRED THE UTILITIES TO
PRESENT AFFORDABILITY RESULTS.
IN NEW REQUESTS FOR RAPE THEIR
EXPENDITURES. IN ADDITION, WITH
THE IN COORDINATION WITH THE
OFFICE OF ENERGY AND
INFRASTRUCTURE SAFETY, THE PUC
IS ENHANCING ITS REVIEW OF
WILDFIRE MITIGATION COSTS IN THE
I O U'S GENERAL RATE CASES. UH
IN ADDITION, AS YOU ARE AWARE,
THE LEGISLATURE RECENTLY
APPROPRIATED ANOTHER $1.2
BILLION FOR A SECOND ROUND OF
CALIFORNIA ARRERIDJ. PAYMENT
PROGRAM FUNDING. UH HUH. AND YOU
ALSO PASSED A B 205, WHICH
DIRECTS THE PUC TO IMPLEMENT
INCOME GRADUATED FIXED CHARGES.
TO READ IT FOR RESIDENTIAL RATES
TO ADDRESS EQUITY ISSUES AS MORE
CUSTOMERS ELECTRIFY AND INVEST
IN DISTRIBUTED ENERGY RESOURCES.
LAST WEEK. THE PUC, UH
ADMINISTRATIVE LAW JUDGE OR A
PUC LAW JUDGE RELEASED FOR
COMMENT. A NEW PROPOSED DECISION
MODERNIZING THE NET AND THE
ENERGY METERING TARIFF TO MORE
CLOSELY ALIGNED RATE DESIGN WITH
AFFORDABILITY OBJECTIVES. BèC IS
CONSTANTLY BALANCED, CONSTANTLY
BALANCING RELIABILITY AND CLEAN
ENERGY GOALS WITH CUSTOMER BILL
AFFORDABILITY. WE ALSO RECOGNIZE
THAT IS BECOMING INCREASINGLY
CHALLENGING AS RATE DRIVERS
COMPOUND AND WE LOOK FORWARD TO
WORKING WITH THE LEGISLATURE TO
DEVELOP ADDITIONAL POLICY TOOLS
AND SOLUTIONS. THANK YOU FOR THE
OPPORTUNITY TO PROVIDE YOU WITH
INFORMATION ABOUT THE PSC'S
COLLABORATION, COLLABORATIVE
EFFORTS TO ENSURE NOON. CLEAN
ENERGY RESOURCES COME ONLINE AS
QUICKLY AS POSSIBLE. TO SUPPORT
GRID RELIABILITY WHILE ALSO
BALANCING COSTS. I WILL NOT PASS
THE MIC TO MY COLLEAGUE DELPHINE
HOW WITH THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR.
MINOR HEIGHT ADJUSTMENT THERE.
GOOD MORNING CHAIR MEMBERS.
THANK YOU FOR THE OPPORTUNITY TO
SPEAK BEFORE YOUR RESPECTIVE
COMMITTEES THIS MORNING. MY NAME
IS DELPHINE HOV, DIRECTOR OF
CALIFORNIA REGULATORY AFFAIRS AT
THE CALIFORNIA INDEPENDENT
SYSTEM OPERATOR. AS STATED BY
ADVICE TO YOUR GUNDA AND
DIRECTOR SCHOLAR ALREADY THE I
ALSO HAS BEEN WORKING VERY
CLOSELY WITH OUR ENERGY AGENCY
PARTNERS AND TO ENSURE BETTER
COORDINATION AND ALIGNMENT
THROUGHOUT THE SUMMER MONTHS BUT
ALSO IN ALL OF THE PLANNING
LEADING UP TO THE CRITICAL
SUMMER MONTHS. AS OUR CHIEF
OPERATING OFFICER AND SENIOR
VICE PRESIDENT, MARK ROTH LAYER
HAS STATED BEFORE THE ASSEMBLY,
UTILITIES AND ENERGY COMMITTEE.
UH, THIS PAST YEAR, THE
ALIGNMENT AND INCREASED
COORDINATION HAS BEEN
INSTRUMENTAL AND IMPROVED IN
PREVENTING SHORTFALLS AND
PREPARING FOR THE NEAR TERM. WE
JUST RECENTLY RELEASED OUR
SEPTEMBER REPORT. IT'S A
COMBINATION OF MONTHLY REPORTS
THAT THE CAISO PUBLISHES OVER
THE SUMMER MONTHS. BUT THIS TIME
AROUND, WE HAVE A VERY IN DEPTH
REVIEW OF THE EVENTS OF EARLY
SEPTEMBER. AS WE UNDERSTAND THEM
WITH THE DATA THAT WE HAVE
TODAY. THE GOAL IS TO PROVIDE
INCREASED TRANSPARENCY AND A
RESOURCE TO UNDERSTAND HOW THE
GRID IS HANDLING AND EVER
INCREASING DEMAND FOR ENERGY.
THE REPORT IS RICH IN CONTENT.
IT HAS MANY OF THE ASPECTS THAT
BOTH VICE CHAIR GUNDA AND
DIRECTOR SCHOLARS SPOKE OF. AND
WE REALLY APPRECIATE ALL OF
THEIR EFFORTS IN COORDINATING
WITH US DURING THAT TIME. BUT
DURING THE SEPTEMBER'S RECORD
SETTING HEAT WAVE, THE ISIL WAS
ABLE TO KEEP ELECTRICITY FLOWING
WITHOUT INTERRUPTION BECAUSE OF
SOME VERY SPECIFIC FACTORS THAT
I WANTED TO POINT OUT, IN
ADDITION TO THE MANY
ENVIRONMENTAL FACTORS THAT VICE
CHAIR GUNDA HAD GONE THROUGH,
FOR EXAMPLE, THERE WAS NOT AS
MANY WILDFIRES AS THERE WAS IN
2020. THE PACIFIC NORTHWEST DID
HAVE A COOL DOWN AS WE WERE
GOING INTO THE MOST CRITICAL
PEAK PERIOD OF OUR SYSTEM. BUT
IN ADDITION TO THOSE
ENVIRONMENTAL FACTORS DO WANT TO
NOTE AS A DIRECTOR SCHOLAR HAD
MENTIONED THAT WE'VE HAD
INCREASED RESOURCE ADEQUACY
PROCUREMENT SENDS 2020,
ESPECIALLY THOSE RESOURCES THAT
WILL BE EFFECTIVE DURING THE NET
PEAK WHEN THE SUN SETS AND WE
STILL HAVE VERY KEEN NEED FOR
ELECTRICITY DRIVEN BY LARGE AIR
CONDITIONING LOADS. SPECIFICALLY
WE'VE ADDED 3500 MEGAWATTS OF
ADDITIONAL GRID CONNECTED
BATTERY STORAGE SINCE 2020 TODAY
WE HAVE ABOUT 4400 MEGAWATTS OF
GRID CONNECTED BATTERY STORAGE
AND TOTAL, SO AS YOU CAN SEE,
SINCE 2020. THE SIGNIFICANT
AMOUNT OF THAT CAPACITY WAS
ADDED IN JUST TWO SHORT YEARS
AND MORE IS COMING AS DIRECTOR
SCHOLAR HAD NOTED. IN ANOTHER
FACTOR IS AN IMPROVED
COORDINATION AND COMMUNICATIONS
WITH CALIFORNIA UTILITIES
THROUGHOUT THE STATE THROUGHOUT
OUR FOOTPRINT, AS WELL AS STATE
AGENCIES, INCLUDING THE
GOVERNOR'S OFFICE, AND, OF
COURSE, OUR PARTNERS AT THE
PUBLIC UTILITIES COMMISSION AND
THE CALIFORNIA ENERGY COMMISSION
, ENHANCED COORDINATION WITH
OTHER REGIONAL UTILITIES AND
MEMBERS OF THE WESTERN ENERGY
IMBALANCE MARKET. ANOTHER
CRITICAL ASPECT IS SINCE THE
2020 OUTAGES, THE MARKET
ENHANCEMENTS THAT WE HAD BEEN
PUT IN PLACE WHERE REALLY PUT TO
THE TEST THIS SUMMER. AND SO
THOSE IMPROVEMENTS GREATLY
HELPED US WHETHER THROUGH THIS
ADDITIONAL HEAT WAVE IN
SEPTEMBER. WE ALSO HAD USE OF
NEW STATE PROGRAMS TO PROVIDE
NON MARKET RESOURCES TO ADDRESS
EXTREME EVENTS AND OTHER
CONSERVATION EFFORTS. EVEN
THOUGH THE CALIFORNIA IS SO DOES
NOT CONTROL THESE RESOURCES, NOR
DO WE HAVE VISIBILITY AND
WORKING WITH OUR PARTNERS. WE
WERE ABLE TO ENSURE THAT ALL OF
THESE RESOURCES KIND OF CAME TO
THE FORE TO HELP OUT THE GRID.
WE ALSO HAD VERY CLOSE
COORDINATION WITH THE LOAD
SERVING ENTITIES THROUGHOUT THE
ISIS FOOTPRINT DURING OUR
HIGHEST EMERGENCY ALERT LEVEL OF
THE EVENT. WE GOT VERY CLOSE TO
BUT DO NOT HAVE TO ORDER
ROTATING OUTAGES BUT THEIR
COORDINATION AND COOPERATION
WITH US WE ARE VERY THANKFUL FOR
THAT. LASTLY EMERGENCY
ASSISTANCE KEPT OUR ENERGY
FLOWING INTO AND OUT OF THE
CASE, SO GRID DEMONSTRATING THE
IMPORTANCE OF RESOURCE SHARING
AMONG COLLABORATING ELECTRICITY
SYSTEMS ACROSS THE WEST. THE
EARLY SEPTEMBER EVENTS WERE VERY
, UM WE'RE NOT ONLY EXTREME, BUT
THEY WERE UNPRECEDENTED. THE I S
O ISSUED FLEX ALERTS, CALLING
FOR VOLUNTARY CONSERVATION FOR
RECORD 10 CONSECUTIVE DAYS ON
SEPTEMBER 6TH WHEN THE RECORD
TEMPERATURES WERE SET THROUGHOUT
THE CALIFORNIA SYSTEMS AND THE
WEST, THE MAN ON THE ICE SO AS
VICE CHAIR GUNDAM MENTIONED
REACHED OUR ALL TIME PEAK OF
52,061 MEGAWATTS. AND THAT WAS
THE PEAK DURING THE MIDDLE OF
THE DAY AND NOT TO MENTION THE
CHALLENGING PERIODS DURING THE
NET PEAK AS THE SUN WAS SETTING,
BUT AIR CONDITIONING LOAD WAS
STILL QUITE HIGH. WE ALSO WANT
TO NOTE THAT REGIONAL
COOPERATION HELPED US GREATLY
AND MAINTAINING RELIABILITY.
THAT SAME EVENING OF SEPTEMBER
6TH. WE HAD NET IMPORTS OF 6500
MEGAWATTS FROM NEIGHBORING
PROVIDERS AS WELL AS ON TOP OF
THAT ANOTHER 1000 MEGAWATTS FROM
THE WESTERN ENERGY IMBALANCE
MARKET, SO THOSE ADDITIONAL
TRANSFERS IN REAL TIME AGAIN
SHARING WITH HER NEIGHBORS.
APPROVED CRITICAL IN HELPING THE
ICE A GRID. AS SUCH
INTERRUPTIONS WERE AVOIDED. UM,
BUT MORE OF THE INS AND OUTS AND
LESSONS LEARNED CAN BE PROVIDED
AND GLEAN THROUGH THE REPORT
THAT WE PUT OUT IT'S A, UM UH,
NAIL BITING 170 PAGE THRILLER IF
YOU HAVE THE TIME TO READ IT, UM
, BUT IN SUMMARY, I'LL JUST NOTE
THAT YOU KNOW, WITH THE
INCREASED FREQUENCY OF HEAT
WAVES ACROSS THE WEST WILL
CONTINUE TO HAVE TO GRAPPLE WITH
DEMAND FOR INCREASED ENERGY
USAGE. WHAT WE FOUND IS THAT WE
DO HAVE MANY TOOLS. UM BUT AS
DIRECTOR SCHOLAR NOTED, SOME OF
THE GREAT TOOLS THAT WE HAVE
TODAY, SUCH AS BATTERY STORAGE
HAS BEEN EFFECTIVE THAT WE DO
NEED TO CONTINUE TO LOOK TO
DIVERSIFYING OUR PORTFOLIO AND
OUR CLEAN ENERGY RESOURCES TO
OPERATE THROUGHOUT ALL PERIODS
OF THE DAY AND SEASONS ON THE
GRID. THANK YOU VERY MUCH FOR
YOUR TIME. THANK YOU TO ALL OF
YOU FOR YOUR PRESENTATIONS. NEXT
I'LL OPEN IT UP TO QUESTIONS OR
COMMENTS FROM COMMITTEE MEMBERS.
MR FONG. UM, THERE'S A FEW
QUESTIONS. THANK YOU FOR THE
PRESENTATION. UM I'M NOT SURE IF
THIS MAYBE GOES TO THE ENERGY
COMMISSION, OR MAYBE IT GOES TO
KILL IS SO BUT I WANTED TO KIND
OF GET MORE SPECIFICS ON, UM,
THE STRATEGIC ENERGY RESERVE. I
THINK WE'VE HAD THIS
CONVERSATION BEFORE WHEN IT WAS
GOING THROUGH THE PROCESS. BUT
YOU FLESH OUT NOW KIND OF WHAT
THE ASSETS ARE IN THE RESERVE.
UM, THANK YOU. REMEMBER FOR THE
QUESTION? YES WE HAVE BROADLY
WHAT WE WERE ABLE TO DO. THIS
YEAR AND THEN WE HAVE SOME IDEAS
ON THE NEXT SEVERAL YEARS TO
BEGIN WITH US. YOU KNOW THAT ARE
THREE BROAD COMPONENTS TO THE
FUNDING THAT YOU PROVIDED US.
ONE IS THE STRATEGIC RESERVE
THAT THE DWR IS DOING. AND THEN
THERE ARE TWO PROGRAMS THAT SISI
THAT WERE CREATED. ONE IS THE
DEMAND SIDE GREAT SUPPORT
PROGRAM, WHICH IS AN INCENTIVE
PROGRAM FOR EMERGENCY LAW
PRODUCTION AND ANOTHER ONE,
WHICH IS CALLED THE DISTRIBUTOR
GENERATION ASSETS PROGRAM, WHICH
WERE STILL IN THE PROCESS OF
STANDING UP. THAT WOULD PROVIDE
A LOT OF CLEAN BACKUP GENERATION
AND DISTRIBUTED ASSETS. ON THE
DWR SIDE. WE HAVE MULTIPLE
ELEMENTS THAT MAKE IT SO ONE IS
THE TEMPORARY CHEN SETS THAT DWR
WAS ABLE TO STAND UP FOR THE
LAST COUPLE OF YEARS THAT THEY
WERE ALSO ABLE TO FUND A NUMBER
OF IMPORTS THIS YEAR. AND MOVING
FORWARD. THERE WILL BE MONEY
SPENT ON HOLDING ON TO SOME OF
THE PREVIOUSLY PLANNED RETIRED
RETIREMENT RESOURCES, INCLUDING
THE OTC POWER PLANTS, SO THAT'S
THE BROAD STRUCTURE OF IT. UM
THEY'RE CURRENTLY BASED ON THE
TWO OH, FIVE REQUIREMENTS. DWR
IS IN THE PROCESS OF COMING TO
SEE SEES BUSINESS MEETING THIS
MONTH TO PROVIDE DETAILS ON WHAT
THEY'RE HOPING TO DO, AND WILL
BE REPORTING THAT IN OUR NEXT
REPORT, SO IS THE STRATEGIC
RESERVE. IS IT FUNCTIONING NOW?
YES, IT IS. AND SO GOING BACK,
AND I'LL HAVE TO GO BACK AND
READ THE 170 PAGES IN THE IN THE
REPORT IN THE SUMMER, BUT WHEN
IT WAS UTILIZED IN THE SUMMER.
WHERE DID THE POWER COME FROM?
YES SO A LARGE AMOUNT WAS
IMPORTS THIS SUMMER DWR FUNDED
AND NEARLY 1000 MEGAWATTS OF
IMPORTS. THEY WERE TEMPORARY
GENERATORS THIS YEAR ABOUT THE
ONES THAT WERE INSTALLED LAST
YEAR. BUT AT LEAST THIS YEAR AND
WITH THE DSG S PROGRAM AT C C.
WE WERE ABLE TO TALK ABOUT 300
MEGAWATTS OF, UM, GRID SIDE
PRODUCTIONS AND IN TERMS OF THE
IMPORTS, WHAT IS THE MAKEUP OF
THE IMPORTS WHERE WHAT POWER WAS
GENERATED THROUGH THE IMPORTS.
YEAH I WOULD LIKE TO DEFER TO MY
COLLEAGUE BèC. THANK YOU. I
BELIEVE THE VAST MAJORITY OF
THOSE IMPORTS CAME FROM THE
NORTH WEST NORTHWEST. AND HOW
DID HOW WAS THAT POWER GENERATED
IN NORTHWEST? UM, IT LIKELY WAS
LARGELY, UH, HYDRO ELECTRIC
HYDRO. OKAY? AND SO WHEN SO,
WHEN WE TALK ABOUT WHEN I LOOK
AT THE KELLY SO WEBSITE AND IT
SAYS IMPORTS WHAT DOES THAT
MEAN? IS IT? IS IT HYDRO
PREDOMINANTLY, OR IS IT OTHER
ASPECTS OF THANK YOU FOR THE
QUESTION WHEN WE'RE LOOKING AT
THE IMPORTS TABLE IN PARTICULAR
, WE DON'T PROVIDE A BREAKDOWN
BECAUSE THAT IS THE TOTALITY OF
THE IMPORTS BEING BROUGHT INTO
THE CASE, SO IT COULD BE AS
DIRECTOR SCHOLAR MENTIONED IT
COULD BE HYDRO BASED, BUT DURING
THE CERTAIN TIMES OF THE DAY, AS
WELL AS THE YEAR IT COULD ALSO
BE OTHER ASSETS. THE MARGINAL
TENDS TO BE GAS. IMPORTED FROM
THE WEST, BUT IT COULD BE A
BLEND ACROSS THE RESOURCES THAT
THEY'RE ABLE TO PROVIDE. OKAY
AND THEN IN TERMS OF, I GUESS
PROJECTIONS AND MAYBE THIS GOES
BACK TO THE ENERGY COMMISSION.
YOU MENTIONED KIND OF SEPTEMBER
. 6TH IS KIND OF THE THAT THE
BIG DAY THAT WE WERE KIND OF IN
A REALLY BAD SPOT. I MEAN,
LOOKING OUT NOW FOR IN THE NEXT,
AND I THINK YOU PROVIDED SOME
INSIGHT ON THIS IN SOME OF OUR
HEARINGS. BUT HAS HAS THOSE
ASSESSMENTS CHANGE? WHAT IS THE
WHAT IS THE PROJECTION? FOR THE
STATE. UH SAVE IN THE NEXT LIKE
5 TO 10 YEARS IN TERMS OF DEMAND
AND SUPPLY. THANK YOU. REMEMBER
TO JUST WANT TO USE THIS
OPPORTUNITY TO JUST SETTLE LEVEL
SET ON THE DEMAND FORECAST AND
THE FORECAST THAT CALIFORNIA
ENERGY COMMISSION DOES. SO
CALIFORNIA ENERGY COMMISSION
PROVIDES A MULTITUDE OF
FORECASTS. ONE FORECAST IS
CALLED THE ONE INTO, WHICH IS A
MEDIAN FORECAST. BUT ALONG WITH
THAT WE ALSO CREATE AND ADOPT A
FEW OTHER FORECAST THAT ARE
LOOKING AT EXTREME WEATHER
CONDITIONS. SO FOR EXAMPLE, THIS
YEAR, THE LEVELS THAT WE'VE
EXPERIENCED WAS WAS ADOPTED AS A
FORECAST UNDER HIGH CONDITIONS.
WHICH WAS ABOUT ONE IN 20
FORECAST, SO THAT'S 52,700. SO
WE CONTINUE TO PROVIDE THEM AS
AS WE MOVE FORWARD INTO INTO THE
FUTURE. I THINK A COUPLE OF
AREAS TO ELEVATE AND HIGHLIGHT
FOR YOU. WHAT WHAT WE'RE
BEGINNING TO OBSERVE IS THAT THE
MEDIAN FORECAST IS NOT CHANGING
THAT MUCH SO THAT IT'S YOU KNOW
, ROUGHLY 1 TO 2% GROWTH YEAR
AFTER YEAR IN THE MEDIAN
FORECAST, AND GENERALLY THE
MEDIA MEMBERS WHEN YOU LOOK BACK
IN A YEAR RIGHT THERE, BUT
WHAT'S HAPPENING IS GIVEN THIS
HIGH LEVEL TEMPERATURES WERE
OBSERVING THE TAILS ARE
STRETCHING. AND STRETCHING
REALLY, REALLY FAR. SO THE
QUESTION THEN BECOMES HOW DO YOU
COVER THOSE SCALES IN AN
AFFORDABLE MANNER? SO PREVIOUSLY
? UH YOU KNOW, OVER THE LAST
BEFORE THE LAST THREE YEARS, WE
TYPICALLY ACCOUNTED FOR THOSE
TALES WITH THE 15% PLANNING
DESERVE MARGIN ON THE TOP OF YOU
KNOW WHAT WE LOOKED AT AS A
MEDIAN FORECAST. THAT WOULD BE
HARDER TO COVER MOVING FORWARD,
AND THAT'S SOMETHING THAT WE ARE
WORKING ON HOW BEST TO
ACCOMMODATE THOSE TAILS USING A
COMBINATION OF EXISTING
PROCUREMENT, BUT ALSO THE TOOLS
THAT YOU PROVIDED US IN TERMS OF
STRATEGIC RESERVE AND SUCH AND
SUPPORT OF THE ADDRESSING THE
TALES IS TO RESERVE. YES, YOU
DIDN'T MENTION SOME OF THE
RETIREMENT ASSETS THAT NO LONGER
BEING RETIRED. SO CAN YOU GIVE
ME SOME EXAMPLES OF CONTRACTS
THAT WERE EXTENDED OUT OR OR
ASSETS THAT WERE SUPPOSED TO, UM
PHASE OUT THAT WEREN'T YES. AND
SO WE ARE LOOKING AT THE OTC
POWER PLANTS, WHICH ARE ROUGHLY
4000 MEGAWATTS. AND THAT PROCESS
OF EXTENDING THEM IS A TWO PART
PROCESS. ONE IS WE NEED THE
STATE WATER BOARD TO ALLOW US TO
DO SO. AND THEN DWR HAS TO
NEGOTIATE THE CONTRACT TO BE A
PART OF THAT. IT'S CURRENTLY
UNDERWAY. THE DWR IS NEGOTIATING
EXTENSION OF SOME OF THESE AND
HAVING SOME EARLY TALKS, OKAY?
YES. GO AHEAD. THE. RIGHT NOW.
THOSE CURRENT EXTENSIONS GO
THROUGH NEXT YEAR. SO WHAT? UM
EXTENSIONS THAT VICE CHAIR GONNA
IS REFERRING TO WOULD START IN
2024. SO HOW SO I THINK YOU
OUTLINED THIS. THIS CHALLENGES
IS THAT YOU'VE YOU'VE GOT SOME
BATTERY STORAGE COMING ONLINE,
UM, IN 21 TO 25, THEN SOMEONE 26
. SO YOU DID SAY THAT WE CAN'T,
OF COURSE, ADDRESSED THE
SHORTFALL COMPLETELY BY BATTERY
STORAGE. CAN YOU KIND OF
ELABORATE ON THAT IN TERMS OF
LIKE IS THERE A NEW TECHNOLOGIES
ON THE HORIZON THAT YOU'RE
LOOKING AT? OR YOU'RE HOPING
THAT IT'S GOING TO BE ONLINE OR
YOU CAN YOU KIND OF FLUSH THAT A
LITTLE BIT. THERE ARE TWO
CATEGORIES OF ADDITIONAL
RESOURCES THAT WERE ORDERED BY
THE COMMISSION. THOSE LONG LEAD
TIME RESOURCES. UH AND. ONE
OTHER 2000 MEGAWATTS 1000 WORK
REFERRED TO AS CLEAN FIRM
GENERATION, RIGHT, SO IT'S NOT A
BATTERY. THAT'S JUST, YOU KNOW,
RESTORING AND THEN, UM, SORT OF
SHIFTING IN TIME WHEN ENERGY IS
DELIVERED. IT'S ACTUALLY HAS TO
BE NEW, YOU KNOW ELECTRONS THAT
ARE GENERATED IN A CLEAN FIRM
MATTER. UH TRADITIONAL, THERE
AREN'T A WHOLE LOT OF RELIABLE
RENEWABLE RESOURCES THAT CAN
PROVIDE THAT THE MOST COMMON ONE
WOULD BE, UM UM GEOTHERMAL
RESOURCES, BUT THERE ARE FEW OF
THEM. BIO BIO GET. UM UH AH! UM
PLANTS USING BIOENERGY WOULD
ALSO FIT IN THAT CATEGORY, FOR
INSTANCE, AND THEN THE OTHER
CATEGORY BROAD CATEGORY IS LONG
DURATION STORAGE OF EIGHT HOURS
OR MORE. A THEORETICALLY YOU CAN
STACK 24 HOUR BATTERIES AND GET
YOUR EIGHT HOURS. IF THAT'S
THAT, THEN YOU'RE COMPETING WITH
ALL THE OTHER RESOURCES THAT ARE
ALL THE OTHER. YOU KNOW THAT
FIRST, UH THAT THAT OTHER 12,000
MEGAWATTS OF RESOURCES, SOME OF
WHICH WILL BE BATTERIES, SO UH,
WELL, WELL, THEY CAN BE MET THAT
WAY. UM THE REASON WE PROVIDED A
LITTLE MORE OF A GLIDE PATH TO
COMPLIANCE WOULD BE TO ALLOW
LOAD SERVING ENTITIES TO
CONSIDER SOME OTHER TECHNOLOGIES
LIKE COMPRESSED THEIR
UNDERGROUND COMPRESSED AIR. OR,
UM, PUMPED STORAGE OR OTHER
FORMS OF CHEMICAL STORAGE THAT
ARE NOT QUITE AS DEVELOPED AS A
LITHIUM ION. SO AS THESE NEW
TECHNOLOGIES DEVELOPED, I MEAN,
CERTAINLY WE NEED BASE LOAD.
RELIABLE ENERGY. I THINK
RELIABILITY IS KIND OF THE KEY
WORD HERE THAT WE KIND OF, SAY
OVER AND OVER AGAIN, BUT I MEAN
FROM ON A PRAGMATIC LEVEL, IF A
LOT OF THESE, UM PROJECTS. UM
CONTINUE TO NEED MORE TIME TO
DEVELOP WHAT IS THEN THE PLAN TO
ENSURE RELIABLE CONTINUOUS
ENERGY. WELL I GUESS I WOULD SAY
THAT, UM THINGS LIKE THE
STRATEGIC RESERVE AND THE
POTENTIAL EXTENSION OF THE
ENVELOPE PROVIDES SOME SOME KIND
OF CUSHION AND BRIDGE, UH, TO
FILL IN FOR THAT UNCERTAINTY AND
IN CASE THOSE THOSE PROJECTS
STILL COME ONLINE IN TIME. I
THINK THE OTHER, UH THE
AUTHORIZATION TO THE I BANK TO
START A TRANSMISSION, YOU KNOW
TO PROVIDE FUNDS FOR
TRANSMISSION. UM LOANS COULD
REALLY HELP BECAUSE YOU WIND UP
WITH A BIT OF A CHICKEN EGG
SITUATION WITH THOSE NEW
RESOURCES. IF THEY'RE IN RECENT,
YOU KNOW IF THEY'RE IN A
RESOURCE THAT DOESN'T HAVE
TRANSMISSION. THEN THE
TRANSMISSION KIND OF TYPICALLY
WAITS FOR A GENERATION CONTRACT
, BUT IT'S HARD TO GET A
GENERATION CONTRACT WHEN
BASICALLY THE FIRST, THE FIRST
PROJECT NEEDS TO CARRY THE COST
OF THE TRANSMISSION AND THEN GET
RECOUPED THOSE COSTS OVER TIME,
SO THAT'S ANOTHER OPPORTUNITY IS
TO LOOK AT AH! YOU KNOW, PICKING
THE EGG OVER THE CHICKEN OR
WHATEVER, AND GET THE GET. THE
TRANSMISSION BUILT TO RESOURCE
RICH AREA SEEMS LIKE ANOTHER.
IT'S ANOTHER IMPORTANT
OPPORTUNITY. WE'VE DONE IT
BEFORE, AND CERTAINLY
CONSIDERING IT NOW. SO ON THAT
ON THAT NOTE, THEN I MEAN, YOU
MENTIONED THAT SOME OF THESE
CONTRACTS ARE EXTENDED YEAR
AFTER YEAR AFTER YEAR. IS THAT?
HOW IS THAT ASSESSED? I MEAN,
YOU YOU DECIDE LIKE THIS YEAR
WE'RE GOING TO NEED ANOTHER YEAR
EXTENSION. IT'S GONNA HARD AND
THESE, AS IS AS HE'S ASSETS ARE
FUNCTIONING AT YOU KNOW, YOU
NEED SOME CERTAINTY OVER TIME.
YOU JUST CAN'T RAMP UP AS AS YOU
INDICATED. YOU CAN'T RAMP UP A
POWER PLANT IN THE MIDST OF A
CRISIS, THE NEW RESOURCES, THEY
NEED LONG TERM CONTRACTS. THAT'S
THE ONLY WAY THEY GET BUILT.
TYPICALLY 10 15 20 YEAR
CONTRACTS MAY BE PUMPED STORAGE
MASSIVE PROJECTS THEY PROBABLY
CAN CONSIDERABLY NEED EVEN
LONGER TERM CONTRACTS. UM THAT
THE SHORT TERM KIND OF BRIDGING
LIKE THE ONCE THROUGH COOLING,
UH, RIGHT NOW, THE WAY THAT HAS
HAPPENED, AND IT'S HAPPENED ONCE
SO FAR, WHICH WAS A THREE YEAR
EXTENSION FROM THE ORIGINAL
CONTEMPLATED DATES, WHICH WAS
REALLY DISAPPOINTING. WE REALLY
HAD, YOU KNOW, THOUGHT WE HAD
THINGS PLANNED TO, UH UM, RETIRE
THOSE PLANTS IN 2020 AND IT WAS
NOT AN EASY DECISION TO EXTEND
THOSE ONCE. UH AND SO THOSE WERE
THREE YEAR EXTENSIONS, AND NOW I
WHAT'S BEING PROPOSED IS ANOTHER
THREE YEAR EXTENSION AND AGAIN
WHETHER THEY ARE NEEDED THE FULL
THREE YEARS OR NOT, THAT WOULD
BE KIND OF TBD. OKAY, SO THAT
THOSE THAT DOESN'T THOSE
ANALYSES ARE STILL BEING DONE,
WHETHER WE NEED TO EXTEND OUT
ANOTHER WHAT? WHATEVER, THREE
YEARS OR OR NOT, AGENT ENERGY
AGENCIES HAVE RECOMMENDED THE
THREE YEAR EXTENSION AT THIS
POINT TO THE WATERBOARD THE
WATER BOARDS NOW CONSIDERING, UH
AND THEN I THINK WITHIN THAT
RECOMMENDATION, THERE WAS AN
ACKNOWLEDGEMENT THAT THREE YEARS
IS KIND OF UH, BE ON THE SAFE
SIDE. BUT IT COULD CONCEIVABLY
BE THAT MAYBE PERHAPS THE FULL
THREE WEREN'T NEEDED. SO LET LET
ME ASK THE KIND OF A BASIC
QUESTION E. THERE'S A LOT OF
AGENCIES HERE AND THEN, OF
COURSE, THE WR IS NOT HERE. BUT
I'M ASSUMING THEY REPORT TO YOU
, WHO IS THE LEAD AGENCY WHEN IT
COMES TO DEVELOPING KIND OF THE
ENERGY PORTFOLIO, MOVING FORWARD
AND KIND OF HOW WE PLAN. WELL,
I'LL SAY WE ALL HAVE PIECES OF
THIS RIGHT. WE TRANSMISSION IS
OVERSEEN BY THE CHI SO AND
APPROVED BY THE CASE, SO, UH,
TRANSMISSION PLANNING AND, UH,
THE PUC ONLY HAS JURISDICTION
OVER 65% OF CALIFORNIA'S LOADS,
SO ACCOUNTANTS CPC UH, EVALUATES
AND DIRECTS THE PROCUREMENT ON
BEHALF OF THOSE ENERGIES UNDER
OUR JURISDICTION TO MEET THE
RELIABILITY AND GHD GOALS OF THE
OF THE STATE. YEAH I JUST WANT
TO ADD A COUPLE OF THINGS THERE.
I THINK, UM THANK YOU FOR THAT
QUESTION. REMEMBER, I THINK THAT
THE 30,000 FT LEVEL WHEN THE YOU
KNOW WE HAVE PLANNING AND KIND
OF PROCUREMENT AUTHORIZING THE
PROCUREMENT PART OF IT, AND THEN
THEN YOU HAVE THE BUILDING PART
OF IT. AND THEN YOU HAVE TO
THINK THROUGH THE CONTINGENCY,
SO THAT'S KIND OF HOW WE HAVE
STRUCTURED OUR WORK. BETWEEN THE
THREE AGENCIES, ALONG WITH OTHER
AGENCIES LIKE DWR AND SUCH SO
AND AS AS, UM PETE DIRECTORS
COLUMN MENTIONED WE ALL HAVE
PIECES OF LEADERSHIP, BUT WE
WORK ON ALL THE PIECES TOGETHER.
SO WHEN WE THINK ABOUT THE
PLANNING PHASE, WE HAVE THE 2045
PLANNING. THAT'S A STATEWIDE
PLANNING ON SB 100. IT'S DONE
JOINTLY BETWEEN C C C P U. C AND
, UM, CARB, AND WE HAVE A REAL
OPPORTUNITY TO SET THE
TRAJECTORY OF THE NEXT 25 YEARS.
AND THEN COMES THE 10 TO 15 YEAR
FORECASTING PERIOD. THAT'S WHERE
SISI DOES THE DEMAND FORECASTING
ELEMENT, BUT WE DO JOINTLY
THROUGH A PROCESS CALLED THE
GEST JOINT AGENCY STEERING
COMMITTEE, AND WE AGREE ON THE
FORECAST AND THE SCENARIOS. AND
THEN THAT GOES THROUGH TO, UM
CPUC, WHO IS THEN LOOKING AT THE
DEMAND FORECAST AND AUTHORIZING
THE NECESSARY PROCUREMENT AND
BACK TO A CASE OF FOR THE
TRANSMISSION PLANNING. SO WE
HAVE THOSE PIECES AND I THINK
YOU KNOW IF YOUR TO YOUR POINT I
THINK THAT NEEDS TO BE A
COLLECTIVE PLAN OF ARTICULATION.
AND THEN WE'RE BEGINNING TO
BRING IT TOGETHER OVER THE LAST
COUPLE OF YEARS. I GUESS THAT'S
THE BIG CHALLENGE THAT I SEE.
AND IT'S AND THIS IS A DYNAMIC
THAT IT'S THROUGH A LOT OF
CHALLENGES. I MEAN, AS WE KIND
OF DISCUSSED THE SUPPLY CHAIN
ISSUE, I WILL A LOT OF YOU KNOW,
GÓMEZ WAS INVOLVED, AND YOU HAD
CALIFORNIA TRANSPORTATION AGENCY
WAS EVOLVED AND IT WAS. IT WAS
KIND OF LIKE EVERYONE'S KIND OF
AND THEN GET THE PORTS AND
EVERYONE'S GONNA POINT AT EACH
OTHER. AND THEN THIS DYNAMIC. I
JUST KIND OF WANT TO AVOID. UM
YOU KNOW, I KNOW YOU'RE ALL KIND
OF COLLABORATING, BUT I'M JUST
TRYING TO UNDERSTAND LIKE WHO IS
THE ACCOUNTABLE ENTITY IN THIS
IN THIS WHOLE SITUATION, AND IS
IT I'LL SEE OF US. ALL THREE OF
YOU GUYS, OKAY? UM YOU KNOW,
GOING BACK TO, UM AND I THINK
THAT THE CHAIR MENTIONED THIS
KIND OF THE TENSION BETWEEN
AFFORDABILITY AND RELIABILITY.
IT SEEMS LIKE THERE ARE WHEN WE
TALK ABOUT STRATEGIES AND HOW WE
DEAL WITH THESE ENERGY CRISIS
AND I THINK IT'S KIND OF AN
ONGOING CHALLENGE RIGHT NOW IS
THAT MORE OF THE BURDENS ARE
BEING PLACED ON THE CONSUMER. UH
COSTS CERTAINLY HAVE HAVE
INCREASED. UM DRIVEN BY IN A
NUMBER OF FACTORS, AND THEN
YOU'RE WHERE NOW AS A STATE. UM
THE ALL THREE OF YOU ARE ASKING
CONSUMERS TO NOW CURVE THEIR
USAGE. AND SO THERE'S A LOT OF
THERE'S A LOT OF
RESPONSIBILITIES PUT ON THE ON
THE ON THE CONSUMER. IS THAT A
DYNAMIC THAT YOU SEE, LIKE BEING
ALLEVIATED AT SOME POINT, MAN? I
WOULD THINK THAT WE WOULD PUPPY
LOOK FOR IN TERMS OF THE
STRATEGY THE WAY TO EXPAND
RELIABLE SUPPLY SO THAT THERE
ISN'T KIND OF THIS. IT CONTAINS
STRESS ON THE ON THE CONSUMER.
OR IS MY ANALYSIS INCORRECT. I
THINK THAT'S SPOT ON. UH AND I
THINK THAT THE SOLUTION IS, YOU
KNOW, IT'S GOING TO BE A VARIETY
OF TOOLS IN THE TOOLBOX TO GET
US BACK TO A POINT, UH, WHERE WE
AREN'T RELYING ON FLEX ALERTS
AND ASKING CUSTOMERS TO
PARTICIPATE IN, YOU KNOW,
CONSERVATION IF AND PRESSURING
THEM TO DO SO. AND THEY'RE GONNA
INVOLVE TOOLS LIKE AH DEMAND
RESPONSE PROGRAMS AND NEW DEMAND
RESPONSE OFFERINGS. UH, THE
STRATEGIC RESERVE FOR THOSE
NEEDLE PEAKS THAT WE DON'T BAKE
INTO, AND MAYBE DON'T WANT TO
BAKE INTO RATES BECAUSE THEY ARE
RESOURCES THAT ARE KIND OF BREAK
THE GLASS RESOURCES. WE ONLY USE
THEM ON RARE OCCASIONS. THEY
DON'T BID INTO THE ENERGY
MARKETS. RIGHT? SO THEY'RE GONNA
BE KIND OF DIFFERENT CATEGORIES
OR DIFFERENT BUCKETS OF TOOLS TO
HELP RESOLVE THIS PROBLEM
COLLECTIVELY AND WE AND WE NEED
TO CATCH UP, RIGHT. WE NEED TO
RECOGNIZE THAT, UM AT THE, UM
ONE INTO THE CURRENT PLANNING
RESERVE MARGINS THAT HAVE BEEN
YOU KNOW, WORKING FOR THE PAST,
20 OR 30 YEARS ARE NOT SEEMING
TO WORK ANYMORE, AND WE WERE
CURRENTLY REEVALUATING AT THE
BèC. WHAT THE YOU KNOW WHAT THE
IMPACTS, YOU KNOW, FACTORING IN
, UH MORE RECENT. UM UH CLIMATE
FROM EURO WEATHER FORECASTS, UM
OUT OF RATES OF RESOURCES. HYDRO
AVAILABILITY. UM IMPORTS WHETHER
WE CAN COUNT ON THE AMOUNT OF
IMPORTS THAT WE'VE HAD ALL THOSE
ARE GOING INTO OUR NEXT ROUND OF
PROCUREMENT AUTHORIZATION TO
DETERMINE JUST HOW BIG OF A
RESERVE MARGIN WE NEED TO GET
BACK ON TRACK TO THAT, YOU KNOW,
YOU GET THE BASELINE YOU'RE
TALKING ABOUT BACK TO WHERE IT
NEEDS TO BE. SO THEN, UH, I
GUESS WHEN WE TALK ABOUT COSTS,
I MEAN, THAT'S CERTAINLY YOU'VE
GOT A VERY DIFFICULT JOB BECAUSE
YOU'RE DEALING WITH SUPPLY
PLANNING AND COSTS. AND YOU
MENTIONED THIS AFFORDABILITY
RATIO. UM YOU KNOW, HAS THERE
BEEN AN ANALYSIS IN TERMS OF
WHAT THE COST IS TO THE AVERAGE
CONSUMER OVER TIME? AND WHAT
WHAT IS GOING TO BE PLACED ON
THEM GOING FORWARD. SO THE, UM.
YOU KNOW THE ULTIMATELY THE
COSTS ARE REFLECTED IN IN THE
RATES THAT EVERYONE'S PAYING
RIGHT. THAT'S WHERE YOU CAN SEE
WHAT'S HAPPENING. WE ARE SEEING
, UH, PRETTY RAPID INCREASES IN
RATES FOR PIETY OF REASONS NOT
NOT JUST THE GENERATION
PROCUREMENT THAT WE'RE TALKING
ABOUT HERE, BUT WILDFIRE, UM AND
THE GAS GOT THE PRICE OF GAS,
NATURAL GAS. SO, UM THE I THINK
THAT THAT'S GOING TO CONTINUE TO
BE A CHALLENGE IS LIKE KIND OF
MY CLOSING THE CLOSING POINT OF
MY OPENING, UH, STATEMENT WAS WE
LOOK FORWARD TO WORKING WITH
WITH THE LEGISLATURE ON
OPPORTUNITIES TO LOOK AT HOW TO
MODIFY AND YOU'VE BEEN AH! IT'S
BEEN REALLY HELPFUL TO HAVE THE
SUPPORT. WE'VE ALREADY HAD TO
HELP MITIGATE SOME OF THESE COST
INCREASES. AND I GUESS I THINK
ONE SORT OF SILVER LINING HERE
IS THAT THIS INCREASED
ELECTRIFICATION OF VEHICLES AND
, UH AND BUILDINGS, UH, DOES
PROVIDE AN OPPORTUNITY TO SPREAD
THESE COSTS OVER A LOT MORE
KILOWATT HOURS SO THAT THAT CAN
ULTIMATELY REDUCED RATE PRESSURE
OVER TIME, ESPECIALLY IF WE GET
THE KIND OF THE USE AND THE
CHARGING SET RIGHT SO THAT WE'RE
NOT CREATING A LOT MORE. NEED
FOR PEAK RESOURCES AS WE
TRANSITION TO THAT. HI
ELECTRIFICATION AND STATE.
RIGHT, BUT WHEN YOU'RE LOOKING
AT ALL THE TOOLS IN THE TOOLBOX,
I MEAN, ARE THE COSTS OF THE
CONSUMERS. I MEAN, ARE THEY
CONSIDERED IN THESE DISCUSSIONS?
I MEAN, IF YOU LOOK AT WHAT
YOU'VE JUST IDENTIFIED AND WHAT
YOU JUST SAID. YOU'RE MORE
ELECTRIFICATION IS GOING TO
REQUIRE MORE SUPPLY AND IF
THERE'S WE'RE NOT GENERATING
ENOUGH SUPPLY, THAT'S A PROBLEM,
RIGHT? YEAH I WANNA JUST ADD A
COUPLE OF THOUGHTS THERE FOR
CONSIDERATION. SO ONE YOU
MENTIONED EARLIER ABOUT JUST THE
IMPACT ON THE ON THE CONSUMERS,
SO I THINK ONE OF THE
OPPORTUNITIES THAT THAT WE WERE
GIVEN AS JOINT AGENCIES IS STILL
REALLY EXPLORE THE OPPORTUNITY
FOR THE $1 BILLION RELIABILITY
INVESTMENT. AND AS A PART OF
THAT, WE WOULD ALSO ASKED TO
INVESTIGATE THE OPPORTUNITY FOR
DEMAND FLEXIBILITY. SO I THINK
THAT THAT THAT IS A HUGE
OPPORTUNITY FOR US TO FIGURE OUT
HOW TO TAKE THESE SITUATIONS
WHERE WE'RE SENDING AN ALERT OR
CALLING FOR THE FLEX ALERT AND
REALLY, UM, INSTITUTIONALIZED
THROUGH AUTOMATION. ASSISI
CURRENTLY HAS A PROCEEDING ON
LOAD MANAGEMENT STANDARDS THAT
ALLOWS FOR AUTOMATION OF SOME OF
THESE ROLES, RESOURCES AND WHAT
WE'RE BEGINNING TO SEE FROM
EARLY CONSUMER BEHAVIOR. UM
SURVEYS IS THAT GENERALLY THE
CONSUMERS ARE OKAY TO, FOR
EXAMPLE, DISCHARGED THEIR BACK
THERE BEHIND THE METER STORAGE
DEVICES. UP TO 20% BUT BEYOND
20% THEY'RE REALLY CONCERNED
ABOUT THEIR UNRELIABILITY.
ANOTHER OPPORTUNITY IS TODAY WE
HAVE A MILLION ELECTRIC VEHICLES
ON THE ROAD, WHICH IS
APPROXIMATELY 10 GIGS OF STORAGE
UNDER WHEELS, SO THE OPPORTUNITY
HERE IS FIGURING OUT HOW WE CAN
MAXIMIZE THE DEMAND FLEXIBILITY
SIDE THAT WILL IN A TEAR THEM
INTO DIFFERENT BUCKETS. YOU
KNOW, THE FIRST BUCKET BECOMES
TRANSFORMATIONAL, GREAT
PLANNING. VERSUS THOSE AMOUNTS
OF NEEDLE PEAK. AND HOW DO YOU
COMPENSATE AND INCENTIVIZE SO
JUST WANTED TO ADD THAT THAT THE
ELECTRIFICATION, UM THAT THE
STATE IS PURSUING MIGHT ALSO
PROVIDE US OPPORTUNITIES AND
TOOLS IN BETTER PLANNING THE
GRID MOVING FORWARD, BUT I THINK
THAT WOULD THAT GOES BACK TO THE
ORIGINAL QUESTION I HAVE
OUTLINED, WHICH IS THAT
OUTLINING KIND OF WHAT YOU'VE
JUST INDICATED, RIGHT? MOVING
FORWARD IN THE FUTURE. IT SEEMS
TO ME THAT THE STRATEGY IS
PUTTING MORE AND MORE STRESS AND
RESPONSIBILITY ON THE CUSTOMER.
THAT YOU KNOW THAT NOW YOU'VE
GOT ELECTRICITY GRID THAT IS
LEANING ON CUSTOMERS TO DO MORE
INSTEAD OF ACTUALLY AS A STATE.
GENERATING THE POWER. WE NEED TO
KEEP THE LIGHTS ON. THE IS THAT,
DO YOU? DO YOU ACKNOWLEDGE THAT
TENSION? I GUESS I'D SAY THAT
THAT'S THAT IT SPEAKS TO TRYING
TO DO IT THE MOST COST EFFECTIVE
MANNER, SO I THINK WHAT? WE
CERTAINLY WANT TO GET AWAY FROM.
REQUIRED REALLY LEANING ON, UM
CUSTOMERS TO, UM TO REDUCE THEIR
USAGE BECAUSE THINGS ARE HOT
OUT. THAT'S NOT A GOOD OUTCOME,
BUT PROVIDING CARROTS TO
CUSTOMERS WHO ARE INTERESTED OR
THIRD PARTY PROVIDERS WHO CAN
AGGREGATE THOSE CUSTOMERS TO, UH
TO ADJUST THEIR CHARGING AND
STILL BE ABLE TO, UM TO OVERRIDE
IT IF THEY NEED TO, OR PRE COOL
THEIR HOME OR, YOU KNOW, HAVE
HAVE HAVE SOME OF THESE OPTIONS
FOR CUSTOMERS THAT THERE THAT
THAT WOULD BE HAPPY TO
PARTICIPATE AND HELP AND RECEIVE
SOME COMPENSATION FOR DOING SO.
THAT'S KIND OF THE THAT'S THE
BEST OF BOTH WORLDS. THAT'S
BETTER THAN BEING KIND OF SORT
OF AGNOSTIC OR INDIFFERENT TO
WHAT? HOW WHEN OR HOW THE
CUSTOMERS ARE CHARGING AND JUST
BUILD EVERYTHING WE NEED ON THE
SUPPLY SIDE TO ACCOMMODATE KIND
OF THE KIND OF THE WORST CASE
CHARGING UP, SO I THINK THAT'S
THE GOAL IS TO, UM, MAKE MAKE
THOSE WORK TOGETHER. BUT I AGREE
WITH YOU NOT NOT JUST KEEP
TELLING CUSTOMERS THINGS ARE
HOT. YOU'VE GOT TO TURN YOUR AIR
CONDITIONER UP. THAT'S NOT A
GOOD OUTCOME. HERE IS A HUGE
PROBLEM. RIGHT YOU GOT YOU GOT
RELIABILITY. THOSE ARE THE SO
THE AVERAGE CALIFORNIA AND
THEY'RE NOT SURE ABOUT THE
RELIABILITY AND THEN OH, BY THE
WAY, THE RATES ARE GOING UP AND
THEN AND THEN, THIRDLY, WHICH IS
THE TRIPLE WHAMMY, WHICH IS OH,
WE'RE ASKING YOU TO DO MORE.
RIGHT THAT'S NOT A SUSTAINABLE
SITUATION AND YOU KNOW, AND IF
IT WAS, MY UNDERSTANDING OF THE
DYNAMICS ARE HAPPENING RIGHT
NOW, IS THAT YOU KNOW YOU'VE GOT
RELIABLE, CONTINUOUS PRODUCTION
OF ELECTRICITY THROUGH NATURAL
GAS AND ON OLDER FACILITIES.
THEY'RE BEING FORCED TO CLOSE
RIGHT. SO THEN BUT THEN TO MAKE
THAT UP ISN'T ISN'T REALLY
RELIABLE EITHER. BECAUSE YOU
KNOW YOU GOT INTERMITTENT
SOURCES OF ENERGY. AND AS YOU
INDICATED BEFORE THEY GOT ANY
LONG LEAD TIMES, AND WE DON'T
KNOW WHEN THEY THERE'S
PERMITTING ISSUES AND SUPPLY
CHAIN ISSUES AND EVERYTHING ELSE
THAT MAY NOT, UM, PRODUCE MAY
NOT BE SUFFICIENT IN TERMS OF
MAKING UP THAT DIFFERENCE, AND
SO WE WE'VE WE'VE BUILT IN A
STRUCTURE OR FRAMEWORK THAT IS
ONLY GOING TO MAKE THE
RELIABILITY. AFFORDABILITY EASE
ISSUES WORSE. THERE'S THAT MAKES
IT MY AM I INCORRECT? I JUST
WANT TO ADD TO SAY NO, I THINK
YOU KNOW YOU YOU'RE KIND OF YEAR
30,000 FT LEVEL OF FRAMING OF
YOU KNOW, AS WE MOVE FORWARD
WITH SHUTTING DOWN AT FOSSIL
GENERATION IN ORDER TO MEET OUR
CLEAN ENERGY GOALS. AND TRYING
TO CONTEND WITH THE CLIMATE
CRISIS OF THIS ENORMOUS PEAKS.
HOW DO YOU DO IT? RELIABLE
FASHION, AND I THINK THAT'S A
THAT'S A VERY FAIR QUESTION. AND
I THINK THE AGENCIES ARE TRYING
TO DO THIS IN A WAY THAT WE CAN
MEET. AFFORDABILITY ARE CLEAN
ENERGY GOALS AS WELL AS
RELIABILITY AND WHAT WE SEE IS
THE DEMAND SIDE PROVIDES A HUGE
OPPORTUNITY. AND AN OPPORTUNITY
TO DO IT IN A WAY THAT THE
CUSTOMERS DO NOT FEEL IMPACTED.
AS DETECTIVE SCHOLAR WAS
MENTIONING, YOU KNOW, HOW DO YOU
TAKE INTO ACCOUNT THAT DEMAND
SIDE RESOURCES IN A WAY THAT YOU
KNOW, RATHER THAN CALLING THEM
AT THE LAST MINUTE WHEN IT'S
REALLY HOT, YOU KNOW IS THAT PRE
COOLING BECOMES A PART OF OUR
GENERAL PROCESS, YOU KNOW, AND
HOW DO WE ALERT THE DEMAND SIDE
RESOURCES MULTIPLE DAYS AHEAD,
SO THERE IS A PLANNING BY THE
THIRD PARTY, UH, OFFERING
PARTIES OR HOW DO WE USE OUR
STORAGE THAT WE HAVE, WHICH WILL
NOT WHICH WE HOPE WILL NOT, IN A
EFFECT THE CONSUMER COMFORT. I
THINK THERE'S A THERE'S A
PLANNING ELEMENT THAT WE HAVE TO
COME TO WORK ON AND WE TAKE YOUR
POINTS. JUST ASK. FINALLY I
THINK ALLY SO PERSON IS VERY
QUIET, WHICH NEVER REALLY WANT
THAT TO HAPPEN. SO UH HAVE I
MEAN, IS THERE ANYTHING THAT
YOU'D LIKE TO ADD TO THIS
CONVERSATION? UM ABSOLUTELY.
ACTUALLY THERE'S ONE THING I'M
SURPRISED BOTH VICE YOU'RE GONNA
AND MAYBE, UM, DIRECTOR SCHOLAR
WERE TOO MODEST DIMENSION, BUT
THERE'S BEEN SIGNIFICANT
ACTIVITY ON THE LOAD MANAGEMENT
SIDE, AND WE'RE VERY EXCITED
ABOUT THAT. SO AT THE CALIFORNIA
SO WE PRODUCE PRICES ON THE GRID
EVERY FIVE MINUTES AND THE
INTENT OF THAT IS TO SHOW
CONSUMERS WHEN IT'S MORE
ECONOMICAL TO USE ELECTRICITY
VERSUS NOT SO DURING THE PEAK
WHERE WE'RE GOING THROUGH SUNSET
, AND WE HAVE A HUGE SPIKE IN
DEMAND, YOU'LL SEE THAT OUR
PRICES NATURALLY RISE. BUT DOWN
AT THE RETAIL SIDE, A LOT OF
THAT IS MUTED EITHER NOT VISIBLE
AT ALL, OR SORT OF IN KIND OF
BROAD TIME OF USE RATES, BUT I
THINK BOTH THE C C AND THE CPUC
ARE TAKING GREAT STRIDES IN
TRYING TO DELIVER THAT MESSAGING
AND THAT COMMUNICATION DOWN TO
THE RETAIL LEVEL BUT THE PAIRING
OF THAT THAT I DO WANT TO POINT
OUT, I THINK TO THEIR CREDIT. IS
THAT IT DOES LEVERAGE A LOT OF
THE TECHNOLOGY THAT WE HAVE
TODAY, SO IT DOES NOT REQUIRE
ACTUAL PEOPLE TO BE STARING AT A
RAID OR TURNING THINGS OFF
MANUALLY. BUT IF IT WERE
INTEGRATED IN OUR HOME ENERGY
SYSTEMS IF ALEXA KNEW WHAT THE
RATE WAS COMING, IT CAN MODULATE
THE TEMPERATURE IN YOUR
REFRIGERATOR. YOUR POOL PUMPS
THAT COULD BE HUNDREDS AND
THOUSANDS OF MEGAWATTS OFF THE
GRID WITHOUT ANYONE EVEN
NOTICING IT. AND SO THOSE I
THINK I JUST WANTED TO HIGHLIGHT
SOME OF THE EXCELLENT EFFORTS
GOING ON AT THE AGENCIES TO HELP
WITH THAT IN TERMS OF ACTUALLY
COORDINATING WITH US, WE AGREE.
I SPENT YEARS OF COORDINATION
AND COOPERATION THROUGH THE
JOINT AGENCY STEERING COMMITTEE,
FOR EXAMPLE, GOING BACK TO 2013
WHERE WE HAVE BEEN WORKING VERY
CLOSELY WITH THE CDC AND
DEVELOPING THAT ENERGY DEMAND
FORECAST, WHICH, FOR EXAMPLE,
THIS YEAR HAS A NEW SCENARIO
LOOKING AT OUR TRANSPORTATION,
ELECTRIFICATION NEEDS WHICH ARE
REALLY RAMPING UP AND ALSO
CONSIDERING OTHER FORMS OF
ELECTRIFICATION. AND THAT GOING
10 YEARS OUT AND UNDERSTAND OR
MORE UNDERSTANDING. HOW DO WE
ACTUALLY PREPARE FOR THAT? AND
WE RELY ON THE PUBLIC UTILITIES
COMMISSION TO REALLY OPTIMIZE
WHAT THAT GENERATION PORTFOLIO
LOOKS LIKE, WHICH ALSO OPTIMIZES
LEAST COST MEETING OUR GHD
GOALS, MEETING OUR RPS GOALS AND
RELIABILITY THAT COMES BACK
TOGETHER AT THE CALIFORNIA IS SO
THAT WE CAN RUN THROUGH OUR
TRANSMISSION PLANNING PROCESS.
NOT ONLY FOR THE OVERALL SYSTEM
BUT ALSO TO IDENTIFY AREAS ON
THE GRID WHERE WE MIGHT NEED
RELIABILITY. BUT THEN DOING SO
WE'RE ABLE TO PUT ALL OF THE
PUZZLE PIECES TOGETHER, SO THAT
WHEN WE'RE TALKING ABOUT COSTS,
IT'S NOT JUST ONE SIDE OR THE
OTHER IS LOOKING AT THE TOTALITY
OF IT, WHICH EVENTUALLY WILL
FIND ITS WAY INTO RATES. SO I
REALLY COMMEND A LOT OF THE
EFFORTS THAT MY COLLEAGUES ARE
WORKING ON AND STRUGGLING
THROUGH BECAUSE THESE ARE NOT
EASY CONVERSATIONS TO GET
THROUGH. AND AS DIRECTOR SCHOLAR
MENTIONED, THERE'S OFTEN THESE
SORT OF LIKE CHICKEN AND EGG
ISSUES THAT WE HAVE TO DEEP DIVE
INTO, AND MAYBE MORE
SPECIFICALLY ADDRESS VERSUS ON A
SYSTEM WIDE LEVEL. UM, BUT THE
ONE THING I, UH LAST THING I
WANT TO ITERATE IS OUR SYSTEM IS
A LOT PEAKY. ER IT DOES HAVE
THOSE KIND OF NEEDLE PEAK DEMAND
POINTS. AND I THINK SOME
CONCENTRATION THERE AND KIND OF
SPREADING OUT THE LOAD. THAT'S
GOING TO BE A MUCH MORE
SUCCESSFUL STRATEGY, WHICH DOES
INVOLVE PARTICIPATION OF THE
LOAD SIDE. BUT HOPEFULLY IN A
WAY THAT IS NOT BURDEN. SOME
DOESN'T INCONVENIENCE FOLKS AND
IS LEVERAGING THE TECHNOLOGY AND
ASSETS THAT WE HAVE TO MAKE IT
SEAMLESS. WANT TO APPRECIATE THE
PATIENCE OF THE CHAIR? I KNOW
THERE'S ANOTHER PANEL. SO SINCE
I'LL THROW THIS ONE QUESTION OUT
THERE, AND YOU CAN FEEL FREE TO
ANSWER IT WOULD LIKE TO KIND OF
GET YOUR SENSE ON THE
TRANSMISSION REQUIREMENTS. KIND
OF WHAT? WHAT WHERE WE ARE AS A
WHAT? WHAT GRADE? WOULD YOU GIVE
OUR TRANSMISSION CAPACITY AND
WHERE WE NEED TO GO, BUT I THIS
IS REALLY IMPORTANT CONVERSATION
THAT WE NEED TO HAVE KIND OF A
REAL HEART TO HEART ON US
ASSESSMENT OF WHAT'S HAPPENING.
I DO I DO BELIEVE, AND I WOULD
SAY THAT IF WE ARE REALLY GOING
TO PRIORITIZE RELIABILITY AND
AFFORDABILITY, I THINK WE'RE
GOING TO HAVE TO REEVALUATE SOME
OF THE THINGS THAT COME OUT OF
THIS BUILDING. SO THANK YOU VERY
MUCH. THANK YOU. UM THAT'S THE
GOAL OF THIS HEARING RIGHT TO
HAVE TO ASK QUESTIONS AND TO
FIGURE OUT WHERE WE'RE GOING
NEXT AND TO ALLOW MEMBERS RIGHT
TO GET THEIR QUESTIONS ANSWERED.
OH, I'M SORRY. I DIDN'T REALIZE
THAT WAS THE LAST QUESTION
DIRECTED TOWARDS ME. SO YES. SO,
UM, ONE OF THE THINGS AS, UM UM
UH, THIS HEARING HAS NOTED, IS
THE INCREDIBLE COORDINATION
COLLABORATION WE HAD LOOKING AT
THE 20 YEAR OUTLOOK. SO OUR
NORMAL PROCESSES ONLY GO OUT 10
YEARS, BUT WE REALLY UNDERSTAND.
GIVEN WHAT'S BEING DRIVEN HERE
THROUGH SB 100, VARIOUS OTHER
PIECES OF LEGISLATION THAT WE
NEED TO LOOK EVEN FURTHER BEYOND
WHERE WE HAVE TRADITIONALLY BEEN
PLANNING. SO THAT WAS AN
EXTREMELY FRUITFUL EXERCISE. I
THINK THERE WAS A LOT GLEANED
FROM THAT EXERCISE OF WHAT THAT
COULD LOOK LIKE 20 YEARS OUT,
AND SO THAT THAT HELPS US AS WE
LOOK AT THE 10 YEAR, YOU KNOW,
WHAT IS THAT BRIDGE LOOK LIKE?
WHAT DO WE NEED TO PREPARE
OURSELVES FOR? AND THAT'S BEEN
AN EXCELLENT DISCUSSION WITH CCP
èC, ALSO WITH AIR RESOURCES
BOARD AS WE DRIVE TO OUR CLEAN
ENERGY FUTURE, AND WHAT THE
TRANSMISSION UPGRADES MIGHT LOOK
LIKE BUT AGAIN. I WANT TO NOTE
THAT THAT ANALYSIS THAT THE
KAISER PUT OUT FOR THE 20 YEAR
OUTLOOK IS FOCUSED MORE ON THE
TRANSMISSION SIDE, BUT THE OTHER
PIECE IS ALWAYS GOING TO BE THE
GENERATION SIDE AND WE'RE LOAD
GOES SO LOW DEMAND, SO IT'S
IMPORTANT TO HAVE ALL THE PUZZLE
PIECES TOGETHER, AND I THINK A
LOT OF THAT WILL KIND OF FEED
THROUGH THE NATURAL PLANNING
PROCESSES THAT THE AGENCY IS IN
THE CASE ALREADY HAVE. THANK
YOU. THANK YOU. SO, MR TING.
THANK YOU, MADAM CHAIR. UM I
WANTED TO KIND OF JUMP OFF FROM
WELL, MR FONG STARTED WITH
AROUND STRATEGIC RESERVE. UM CAN
YOU TELL US WHAT HAS BEEN
PURCHASED FOR THIS STRATEGIC
RESERVE AS OF NOW? YEAH, THANK
YOU. REMEMBER, THINK SO. THE
MAIN PIECES FOR THIS YEAR HAS
BEEN SUPPORT OF THE IMPORTS
ABOUT 1000 MEGAWATTS OF IMPORTS
THAT WERE FUNDED THROUGH THE DWR
PROCESS. THERE WERE ABOUT 120
MEGAWATTS OF TEMPORARY CHEN SETS
THAT WERE, UH, FUNDED AND CC.
TEMPORARY. WHAT I'M SORRY.
TEMPORARY CHEN SETS GENERATION
SETS THEIR ASSISTANCE. WHAT KIND
OF ENERGY IS THAT? THEY WERE A
FOSSIL GENERATION MORE SPECIFIC,
BUT THERE WERE DIESEL, I
SUPPOSE. AND THEN WE HAD.
ROUGHLY 300 MEGAWATTS OF SUPPORT
FROM CCS DSG S PROGRAM. THE
DEMANDS HAD GREAT SUPPORT
PROGRAM, AND THOSE INCENTIVES
WERE PRIMARILY ALSO MADE TO
BACKUP GENERATORS THAT WERE
RUNNING ON DIESEL. THE IMPORTS
ARE JUST. JUST THE DAY OF
PURCHASE IS RIGHT. IT'S NOT
BECAUSE IT'S ODD TO HAVE A SO
THEY CONTRACTS THEY WERE THEY
WERE ABLE TO PURSUE. UM MULTIPLE
DAYS AHEAD, THEY WERE ABLE TO
BUY IMPORT PACKAGES AS THE HEAT
WAVE WAS WE WERE EXPERIENCING SO
THEY WERE NOT REAL TIME THEY
WERE ACTUALLY BROUGHT AHEAD OF
TIME. SOME OF THEM WERE ACTUALLY
SORRY TO INTERRUPT, BUT SOME OF
THEM WERE MONTHLY PRODUCTS AND
MULTI MONTH PRODUCTS AND THEN
SOMEWHERE IN THIS SORT OF
SEVERAL DAY TIMEFRAME, BOTH BOTH
WERE ALL OF THE ABOVE. GOT IT,
SO? SO SO I GUESS IT'S NOT
REALLY WHAT I ENVISIONED WHEN WE
PASSED. A STRATEGIC RESERVE. TO
ME THAT WAS EITHER TEMPORARILY
MORE ALONG THE LINES OF WHAT YOU
WERE TALKING ABOUT. MR HONDA,
WHICH IS REALLY SORT OF
TEMPORARY GENERATION OR BACK UP
TO ZERO REASON WHY WE'RE SO
HEAVILY. RELIANT ON IMPORTS. I
IMAGINE THAT THE CHALLENGE WITH
IMPORTS IS THAT IF UM, THE
ACTUAL LOAD SERVING ENTITY NEEDS
THOSE. WE'RE NOT GONNA GET THAT
ENERGY. I THINK. GOING FORWARD.
IT'S SORT OF A SHORT TERM VERSUS
LONG TERM OR MEDIUM TERM. IT
TAKES A LITTLE MORE TIME TO GET
SOME OF THESE OTHER RESOURCES
STOOD UP. UM, UH, THERE WAS A
FAIR AMOUNT OF CARE TAKEN TO
MAKE SURE THAT THE PROCUREMENT
THAT WAS BEING PERFORMED FOR
THOSE, UM THOSE ADDITIONAL, UM,
STRATEGIC RESERVE IMPORTS WERE
NOT GETTING AHEAD OF THE LOAD
SERVING ENTITIES THAT WERE
PROCURING TO MEET THEIR THEIR
OWN ARE A RESOURCE ADEQUACY
REQUIREMENTS. WE HAD A LOT OF
CONVERSATION. I HAD A LOT OF
CONVERSATIONS WITH, UH,
PROCUREMENT FOLKS IN IN THE EYE
USING THE C C A IS TO MAKE SURE
THAT THAT WAS, UM, THAT DIDN'T
HAPPEN, AND THAT IS SOMETHING WE
HAVE TO BE CAREFUL OF. AND
THAT'S SIMILAR ISSUE WITH WITH
BATTERIES, RIGHT? WE'VE
MENTIONED REALLY 14,800
MEGAWATTS ORDERED A DECENT CHUNK
OF THAT, AT THIS POINT IS GOING
TO BE LITHIUM BATTERIES,
ESPECIALLY IN THE SHORT TERM. UH
WE HAVE WE HAVE TO TAKE CARE OF
THAT. WE DON'T WIND UP THROUGH
THE STRATEGIC RESERVE. CREATING
MORE DEMAND AND COMPETING FOR,
UM FOR THOSE SAME RESOURCES. UH
AS I MENTIONED, WE HAVE SUPPLY
CHAIN ISSUES AND THEY'RE JUST A
SCARCITY IN LITHIUM ION. SO WE
HAVE TO TAKE GREAT CARE AND WE
ARE TAKING GREAT CARE NOT TO, UM
TO PAY ATTENTION, AND WE'RE IN
CONVERSATION WITH DWR TO MAKE
SURE THAT THAT WE MINIMIZE THOSE
TYPES OF UNINTENDED
CONSEQUENCES. THE PART OF I
THINK WHAT YOU MENTIONED. IT'S
PROBABLY WHY WE'RE LOOKING AT
INCREASING LITHIUM IS CRACKS
TRACTION HERE IN THIS STATES
WHILE WE'RE ALSO TRYING TO WE
KNOW WE'RE GONNA NEED MORE
LITHIUM UNTIL THERE'S OTHER
TECHNOLOGIES TO DO ELECTRIC
STORAGE. SO THIS TIME, I THINK
IT'S NOT JUST BEING CAREFUL. I
DON'T WANT TO SAY OH, LET'S NOT
GO BY LITHIUM BECAUSE THE PRICE
MIGHT GO UP. SO LET'S GO BUY
DIESEL. BECAUSE THAT PRICE MIGHT
GO UP TO THEM. UNDERSTOOD IT'S
IN THE YEAR 22 TIME FRAME THAT
I'M TIRED THIS YEAR NEXT YEAR,
AND WE HAVE BETWEEN THIS YEAR
NEXT YEAR. 2023 2024 8000
MEGAWATTS OF AND THE COMING
ONLINE TO MEET THOSE RP ORDERS,
AND WE'RE HEARING FROM THE LOAD
SERVING ENTITIES WHO ARE ON THE
HOOK TO PROCURE THOSE THAT THEY
ARE STRUGGLING TO THAT THAT
LITHIUM ION SUPPLIERS IN THAT
TIME FRAME ARE STRUGGLING TO
FIND THE SUPPLY. THEY'RE ALSO
COMPETING WITH ELECTRIC VEHICLE
WORLD. SO I THINK MUCH THIS YEAR
IS GOING TO BE LITHIUM. MY OWN.
SORRY TO CUT YOU OFF. IT'S JUST,
UM GETTING THE SHORTEST I
APOLOGIZE ABOUT. YEAH I HAVE. I
DON'T. I DON'T KNOW. BUT I DO
HAVE A COLLEAGUE WHO MAYBE
GUESTS. ARE WE TALKING TO? OH, I
GUESS I'LL BE TALKING LIKE 200.
WE'RE TALKING 2000. WE'RE
TALKING FOR THIS COMING YEARS.
2000 MEGAWATT. ACTUALLY IT'S
2800 MEGAWATTS REQUIRED THIS
THIS NEXT BY JULY OR RATHER, BY
AUGUST 2023. WELL NO, THAT'S THE
TOTAL AND OF THAT, I WOULD I
WOULD SUSPECT THAT UH, AT LEAST
70 80% OF SO PROBABLY 15 TO 2000
OR MAYBE EVEN MORE MEGAWATTS. I
MEAN, THE $2000 IS YOU. YOU JUST
YOU JUST MENTIONED 8000 SO THAT
8000 OR 2800, ALRIGHT, IT'S 2800
FOR 2023. FOR 2024. SO I
COMBINED THE NEXT TO I WAS
TALKING ABOUT ONE YEAR OR TWO
YEARS THIS YEAR YOU MEANT THIS
YEAR PLUS NEXT YEAR. AH! YEAH I
THINK I WAS TRYING TO SPEAK TO
THE NEAR TERM TIME FRAME AND I
SAW INITIALLY STARTED WITH 8000
OR ACTUALLY, IT SHOULD HAVE BEEN
8700 FOR THE NEXT TWO YEARS. BUT
TO BE SPECIFIC, IT'S 2800 THIS
COMING AUGUST AND THEN ANOTHER
6000. JUNE 2024. RIGHT AND YOU
SAID ABOUT SEVEN APPROXIMATELY
70% LITHIUM AND SAY, AT LEAST 70
TO 80% OF THAT, IN THAT TIME
FRAME IS LIKELY TO BE LITHIUM
OR, YOU KNOW IT'S GOING TO BE
STORAGE OR STORAGE, PLUS SOLAR
PROJECTS. AND SOMEWHERE THERE'S
SOME WIND AND THERE'S SOME OTHER
RESOURCES AS WELL. RIGHT. WHAT
WHAT WAS THE COST OF 120
TEMPORARY DIESEL GENERATORS IN
THE 300 BACKUP DIESEL
GENERATORS? AYE. I DO NOT HAVE
THAT INFORMATION ON ME A ROUGH
GUESS, UM, TALKING BILLIONS
MILLIONS. THOUSANDS IT WOULD. IT
WOULD BE MILLIONS OF TAKING FROM
2021 INSTALLATIONS. WE WERE
SPENDING ABOUT A MILLION EACH
MEGAWATT A LITTLE BIT OVER A
MILLION. SO ROUGHLY 120 MILLION
. I MEAN, GIVE OR TAKE RIGHT,
APPROXIMATELY 150 MILLION. UM.
HOW HOW MUCH WAS STORAGE HAVE
COST. HOW MUCH DOES STORAGE
COSTS? AH I WOULD WANT TO GET
BACK TO YOU ON THAT. WE'VE WE'VE
SEEN A ROUGH COST FOR STORAGE.
WE DON'T KNOW. UH, SO THE IT'S
BEEN A MOVING TARGET OF LATE.
UH, PRETTY DRAMATIC MOVING
TARGET OF LATE, SO I WAS BETWEEN
UM 10 CENTS. 3000. WELL YEAH,
THE OTHER THING IS THEY ARE WE
TALKING ALL IN COSTS? ARE WE
TALKING ABOUT THEIR P P A S SO
THAT LOADS ARE GOING TO SEE SEE?
LET'S BE EXCITED. LET'S TALK
ABOUT ONE COST. UM SO JUST GO
CRAZY. I'M GONNA NEED TO CALL A
FRIEND FOR THE ANSWER THAT I
JUST DON'T HAVE IT AT HAND. I
DON'T WANT TO THROW A NUMBER OUT
THERE. THIS IS LIKE I FEEL LIKE
WE JUST FILLED IT ON THE
PYRAMID. YES EXACTLY. THE
LIFELINE. OKAY YOU CAN CALL THE
LIFELINE. WE'RE GONNA COME BACK
TO YOU, DON'T YOU? DON'T YOU GET
ON THE PHONE. WE'RE STILL GONNA
WAIT FOR OUR QUESTIONS TO BE
ANSWERED TODAY. THANKS. UM SO
YOU YOU HAD MENTIONED IN
PARTICULAR AROUND AND JUST A
BALLPARK. I'M NOT LOOKING FOR
YOU KNOW, THIS IS JUST A ROUGH
ESTIMATE. UM, THAT YOU KNOW YOU
HAD MENTIONED IN PARTICULAR
AROUND INTERCONNECTION. I THINK
THAT'S A REALLY INTERESTING
ISSUE. I'VE HEARD THAT THERE
WERE ISSUES AROUND
INTERCONNECTION, COULD YOU COULD
YOU EXPAND ON THAT SORT OF WHAT
WE'RE SO WHAT'S SOME OF THE
BARRIERS ON INTERCONNECTION? I
DIDN'T WANT ANYBODY. I DON'T
KNOW, MR. MR SKULL IF YOU'RE THE
EXPERT OR ANYBODY MAYBE IT'S
MISS HÌ. WELL I'LL SAY IT'S THE
CHALLENGES IN, UM AND. ONE BIG
ISSUE IS THAT THE, UM THE
UTILITIES, UH, ARE DOING A LOT
OF SPENDING A LOT OF TIME ON
WILDFIRE MITIGATION UPGRADES.
THEY TALK ABOUT THAT BEING THEIR
NUMBER 123 PRIORITIES AND WE
STRESS THAT WE AGREE AND THAT
THEY ALSO NEED TO WORK ON
FRIDAYS, 45 AND SIX LIKE
INTERCONNECTION UPGRADES, AND
THEY SO THEY ARE THEY CAN BE A
BOTTLENECK. UH SOMETIMES THE
EQUIPMENT ITSELF CAN BE A
BOTTLENECK, UM OR AND, UH UM
AND, UM. THOSE ARE THE TWO OF
THE TWO PRIMARY ISSUES ADDRESSED
THIS QUESTION, MR FRIEDMAN SINCE
HE'S IN THE AUDIENCE AS WELL,
BUT ALSO HOW MUCH OF THAT IS THE
I O. U. S GET REIMBURSED FOR
WILDFIRE. MITIGATION BUT THEY'RE
NOT GETTING REIMBURSED FOR
INTERCONNECTION. THEY DON'T GET
A CHARGE THEIR COST OF CAPITAL
OR DO THEY? I DON'T KNOW. I'M
JUST ASKING. THEY DON'T GET THE
CHARGE UNTIL IT'S USED AND
USEFUL UNTIL TIMELINE IS THAT
THAT YOU'RE ASKING? THAT'S
ACTUALLY JUST IT'S JUST A
QUESTION WHETHER THEY DO SO
THERE'S NO THERE'S NO
MISALIGNMENT OF INCENTIVES,
MEANING? NO THEY GETTING PAID
EITHER WAY. NO, NO, NO, THEY GET
PAID WHEN IT COMES ONLINE. I
SEE. I BELIEVE WE HAVE SOMEONE
UM, FROM THE CPU. SEE, THAT'S ON
ZOOM THAT. CAN ANSWER MR TING'S
QUESTION. I'LL TURN IT OVER TO
MOLLY STERKEL PROGRAMS. THANK
YOU VERY MUCH. APPRECIATE IT. I
GOOD MORNING. UM EXCUSE ME. GOOD
AFTERNOON ASSEMBLY HEARING. CAN
YOU HEAR ME? YES, WE CAN HEAR
GREAT. OKAY SO, UM, I THINK
YOU'RE INTERESTED IN THE COST OF
STORAGE. IS THAT WHAT YOU'RE
ASKING ME RIGHT NOW? OR DO WE
MOVE ON TO A SECONDARY? WE'RE WE
ARE STILL ON THAT TOPIC. THANK
YOU ON STORAGE, CORRECT. AND
STORAGE. YES. SO FIRST, I'D JUST
LIKE TO REITERATE THAT MY
COLLEAGUE UM UH, PETE'S COLOR
WAS EXACTLY CORRECT. WE DO HAVE
ON TRACK AND IN CONTRACT WE DO
EXPECT THERE TO BE CLOSE TO 3000
MEGAWATTS OF NEW STORAGE WITHIN
THE NEXT 12 MONTHS PERIOD. WE'VE
STARTED THINKING ABOUT THE
RELIABILITY YEAR STARTING IN
OCTOBER. SO LIKE OCTOBER 2022
LASTING THROUGH THE THAT THE 12
MONTH PERIOD THAT WOULD END NEXT
SEPTEMBER 2023. SO WHEN I QUOTE
THAT NUMBER ABOUT OF ABOUT 3000
MEGAWATTS, AND MOST OF THAT IS
STORAGE. I THINK IT'S OVER. 2800
IS IN CONTRACT OF STORAGE. THERE
ARE AN ADDITIONAL, UM 1500 OR
EVEN MORE RESOURCES NAMEPLATE.
AH THAT WOULD BE A VARIETY OF
DIFFERENT TECHNOLOGIES THAT ALSO
WILL PROBABLY BE DEVELOPED IN
THAT SAME TIME PERIOD. BUT THEY
JUST DON'T NECESSARILY COUNT
TOWARDS THE NEXT QUALIFYING
CAPACITY, WHICH IS SORT OF THE
CENTER OF TODAY'S HEARING. SO
YOU KNOW MORE MEGAWATTS IN
NAMEPLATE ARE BEING DEVELOPED
THAN THEY ARE IN TERMS OF N. QC
QC STUDENTS STORAGE COST
ESTIMATE FOR ME THAT WAS THE
QUESTION. YES SO THE COST
ESTIMATE IS DEFINITELY A MOVING
TARGET. FIRST OF ALL THE COSTS
OF THE STORAGE RESOURCES CAN BE
AS AS MUCH AS LIKE A BILLION
DOLLARS FOR 500 MEGAWATTS OF
RESOURCES. UM THAT CAN GO UP
BASED ON THE INFLATION PRESSURE
. PRESSURE'S WE'VE HAD, AND IT
CAN ALSO GO DOWN BASED ON THE
INFLATION REDUCTION REDUCTION
ACT. WELL LET'S LET GO UP,
DEPENDING ON CLASS OF LAND OR
OTHER MR CLOSENESS, NOT LET'S
NOT LOOK INTO THE FUTURE WILL
LEAVE THE CRYSTAL BALL ASIDE.
WHAT YOU TELL US WHAT WHAT YOU
HAVE WHAT YOU HAVE RECENTLY
ENTERED INTO CONTRACTS OVER
BECAUSE YOU YOU ALLUDED TO
CONTRACTS EVEN ENTERING RIGHT?
SO UNFORTUNATELY BEING ON THE
SPOT AND I HEARING LIKE THIS, I
AM NOT AT LIBERTY TO THIS CLOSED
THE CONFIDENTIAL TERMS OF THE
UTILITY CONTRACTS BECAUSE THOSE
ARE ALLOWED UNDER OUR
REGULATIONS TO BE HELD
CONFIDENTIAL TO PROTECT.
CONSUMERS FROM, UM YOU KNOW,
SORT OF. WE WANT OUR CONSUMERS
TO BENEFIT FROM PRICE
COMPETITION, AND WE DON'T WANT
TO ANNOUNCE PRICES OF ONE MARKET
ACTOR TO ANOTHER MARKET ACTOR,
WHICH I'M SURE YOU CAN
UNDERSTAND. SO WE DO ALLOW
PRICES TO BECOME, UH, PUBLIC
AFTER THREE YEARS, SO I'D HAVE
TO GO BACK AND SEE. LIKE, WHAT
ARE OUR CURRENTLY PUBLIC PRICES.
WE ALSO DO OUR MODELING AND
THINGS BASED ON PUBLIC PRICE
PROJECTIONS FROM THINGS LIKE
LAZARD AND BLUE. UM UH BLOOMBERG
ENERGY FINANCE AND WE CAN
PROVIDE THOSE TWO. YOU CAN STOP
YOU THERE. SO THIS IS WE'RE NOT
OKAY. I GUESS THIS THIS THIS IS
A REQUEST FROM THE LEGISLATURE.
TO THE PUC REGARDING A STATE
APPROPRIATION. SO I DON'T KNOW
HOW THAT COULD BE. WE'LL TALK
ABOUT THE STRATEGIC RESERVE. ARE
WE NOT? WE'RE NOT. I'M SORRY.
WE'RE TALKING ABOUT THE BUCS
ORDERS TO LOAD SERVING ENTITIES
THAT WE REGULATE AND THEIR
PROCUREMENT. I'M NOT AWARE OF
STRATEGIC RESERVE BATTERY
PROCUREMENT. SORRY. THANK YOU.
SO THIS IS JUST WHAT'S COMING
ONLINE IN THE UNIVERSE OF ENERGY
SUPPLY. FOR THE CPUC.
JURISDICTIONAL? YES. RIGHT
CORRECT AND THERE ARE 40
DIFFERENT LOAD SERVING ENTITIES
AND THEY'RE ALL ENTERING INTO
CONTRACTS. THERE ARE OVER 100
DIFFERENT CONTRACTS PER YEAR, SO
IN SOME SENSE, THE DEVELOPERS
ARE COMPETING WITH EACH OTHER
AND ALSO THE LOAD SERVING
ENTITIES, WHICH COMPRISED OF
ENERGY SERVICE PROVIDERS.
INVESTOR OWNED UTILITIES AS WELL
AS COMMUNITY TRACE AGGREGATORS.
THEY ARE ALL ENTERING INTO
DIFFERENT CONTRACTS. SO IN SOME
OF THOSE CONTRACTS ARE PUBLIC
LIKE BECAUSE OF THE REGULATIONS
OF THAT PARTICULAR ENTITY, AND
SOME OF THEM ARE HELD IN HIGH
CONFIDENTIALITY. I TOTALLY
UNDERSTAND SO YES, YOU'RE JUST
TELLING US WHAT IS HAPPENING IN
THE MARKETPLACE AND RIGHT AND
YOU YOU ASKED ABOUT
INTERCONNECTION CHALLENGES.
MOLLY STOOD UP THAT 10 TASK
FORCE I REFERENCED EARLIER, SO
SHE MAY BE ABLE TO ELABORATE ON
SOME OF THE CHALLENGES
PERFECTLY. THE PINCH POINTS ARE
ON INTERCONNECTION. WELL I THINK
THAT YOU KNOW, THE REMARKS KIND
OF MADE A REFERENCE TO THE FACT
THAT IN ORDER TO MAINTAIN THE
SAFETY OF THE GRID, THE PROCESS
IS EXTREMELY DELIBERATE AND
DETAILED. AND TECHNICALLY, UH,
YOU KNOW, TECHNICALLY FOCUSED ON
ON SAFETY AND RELIABILITY,
BECAUSE WE, UM WE NEED THE GRID
TO BE SECURE. SO THAT TAKES TIME
AND SO EACH INTERCONNECTING
PROJECT DOES GO THROUGH A
LENGTHY APPLICATIONS STUDY
REVIEW PROCESS. IF IT UM THEY
GET ESTIMATES FOR THE COST OF
THE INTERCONNECTION. IF THE
DEVELOPER LIKES THAT THEY SIGNED
AN INTERCONNECTION AGREEMENT,
AND THEN USUALLY IT TAKES ABOUT
TWO YEARS FOR THE OR 2 TO 3
YEARS FOR THE PROJECT SPECIFIC
INTERCONNECTION FACILITIES TO
COME ONLINE. THERE MAY ALSO BE
NETWORK TRANSMISSION FACILITIES
, UM, THAT FACILITATE ONE OR
MORE PROJECTS. AND SO THE
PROJECT MAY WANT TO WAIT FOR THE
DEVELOPMENT PATTERN OF THE
TRANSMISSION. GRID TO, UM, TO
SUPPORT THAT PROJECT, SO I THINK
YOU KNOW EACH AND EVERY PROJECT
HAS ITS OWN INTERCONNECTIONS
STORY, AND YOU KNOW, ALL SIDES
WOULD LIKE THE PROCESS TO GO
FASTER. THE INTERCONNECTING
UTILITY STAFF WOULD LIKE THE
PROJECTS TO JUST COME IN THE
DOOR AND BE READY TO GO AND NOT
WAIT FOR A CONTRACT AND THE
DEVELOPER AS SOON AS THEY GET A
CONTRACT, THEY WOULD LIKE THE
INTERCONNECTING UTILITY TO BUILD
THE FACILITIES IMMEDIATELY. UM
BUT IN IN FACT, EVERYBODY HAS TO
WORK TOGETHER, AND MANY OF THE
PIECES JUST HAVE TO FALL INTO
PLACE. SO IT'S A IT'S CUT
COMPLEX CONSTRUCTION TIMELINES
WITH LOTS OF INTERDEPENDENCIES.
THAT'S JUST THE NAME THE
INTERCONNECTION GAME. TOTALLY
UNDERSTAND. IT'S ANYTHING WE
COULD DO TO MAKE IT GO FASTER.
UM I THINK CONSTANT VIGILANCE
AND PRESSURE SO THAT THE I'M
ALWAYS OPEN TIGHT. YES I THINK
WE HAVE REALLY SUPPORTED
TRANSPARENCY. UM PROCESS
IMPROVEMENTS. AND UM AND JUST
CONSTANT MEASUREMENT AND
MANAGEMENT OF THE PROCESS, SO I
WOULD LIKE TO PERHAPS PASSES TO
MY COLLEAGUE DELPHINE, AND MAYBE
SHE COULD TALK A LITTLE BIT
ABOUT THE INTERCONNECTION
PROCESS ENHANCEMENTS THAT THE
CAISO HAS UNDERTAKEN THAT ARE
HAVE BEEN VERY HELPFUL AND WILL
CONTINUE TO YIELD FRUIT AHEAD.
THANK YOU, MOLLY. SO BUILDING ON
THAT, UM, THE CASE, SO WE NEED
TO CALL THAT UNDER OUR TARIFF.
WE DO HAVE AN OBLIGATION TO LOOK
AT ALL OF THE INTERCONNECTION
PROJECTS AND EVALUATE THEM. SO
RIGHT NOW WE HAVE OVER 100
GIGAWATTS OF INTERESTED PARTIES
TRYING TO INTERCONNECT TO
VARIOUS PARTS OF THE GRID. UM,
THAT'S OBVIOUSLY, UM, WELL
BEYOND THE CAPACITY THAT THE
STATE NEEDS, BUT WE ARE
OBLIGATED AS THE CASE SO UNDER
OUR TARIFF TO EVALUATE AND STUDY
THOSE, AND SO THAT HAS CREATED
QUITE A LOGJAM IN OUR PROCESSES
AS WE'RE TRYING TO WEAVE THROUGH
WHICH PROJECTS ARE PROBABLY
GOING TO MAKE IT TO THE FINISH
LINE. SO AS MOLLY MENTIONED IN
OUR INTERCONNECTION PROCESS
ENHANCEMENTS STAKEHOLDER
INITIATIVE. WE'VE HAD SEVERAL
PHASES. NOW WE'RE LOOKING AT
VARIOUS LEVELS OF IMPROVEMENT,
UM, BOTH IN TERMS OF TRYING TO
GET MORE COMMITMENT FOR FOLKS
THAT ARE IN THE INTERCONNECTION
QUÊ SO THAT WE KNOW WHICH ONES
WILL ACTUALLY GET TO MATURITY.
BUT ALSO WE ARE WORKING WITH THE
STATE AGENCIES TRY TO UNDERSTAND
OF THOSE PROJECTS. ARE THERE
ALSO CLEAR POLICY MOTIVATIONS
THAT COULD THAT WERE THE CASE SO
COULD ALSO EVALUATING
CONSIDERING OUR WORK ON THE
INTERCONNECTION SIDE. SO, AS
MOLLY NOTED, IT IS A DELICATE
BALANCE. NOT ONLY DOES THE CHI
SO NEED TO WORK WITH THE
AGENCIES, ALL THE DEVELOPERS AS
WELL AS THE INVESTOR OWNED
UTILITIES WHO ULTIMATELY OWN THE
TRANSMISSION SYSTEM, UM AND
OPERATE THOSE, BUT WE ALSO HAVE
TO BE RESPECTFUL OF THE TARIFF
THAT WE ARE BOUND BY, BUT THOSE
PROCESSES ARE ONGOING. THOSE
CONVERSATIONS ARE HAPPENING
RIGHT NOW, AND WE'RE KEEN ON
WORKING WITH OUR PARTNERS TO
KEEP IMPROVING, BUT I GUESS I
MEAN, YOU KNOW, GIVEN THAT WE
ARE. I MEAN, WE ARE ACTING AS IF
WE'RE IN A STATE OF EMERGENCY,
RIGHT? AND I UNDERSTAND THE
PROCESS IS COMPLEX. IT'S VERY
DELICATE. THIS IS NOT SOMETHING
THAT YOU CAN JUST TILT UP
OVERNIGHT, BUT, UH, YOU JUST
HEARD MR SCHOLAR SAYING, HEY, WE
DID THE UM YOU KNOW, YOU KNOW,
WE HAD TO KEEP THE OTC IS OPEN
ANOTHER THREE YEARS AND WE
DIDN'T WANT TO DO WE HAVE TO
KEEP DIABLO OPEN SOMETHING THAT
WE WERE PLANNING ON CLOSING. AH,
AND SO I GUESS, UM BUT I HEAR
IT'S COMPLICATED AND IT'S JUST
TAKING A TAKING A WHILE. I GUESS
TO ME IT DOESN'T STRIKE ME AS AN
AGENCY THAT HAS A HIGH SENSE OF
URGENCY LIKE THE SAME URGENCY
THAT I THINK WE ARE HEARING FROM
OUR CONSTITUENTS AND FROM OTHER
CALIFORNIANS THAT FEEL LIKE UH,
YOU KNOW, WHAT'S THE STATE DOING
TO MANAGE AND INCREASE THE
AMOUNT OF SUPPLY TO SAY WE HAVE
YOU KNOW ALL THESE PROJECTS
READY TO BE INTERCONNECTED AND
TRYING TO GET ONLINE AND THEY'RE
MORE THAN WE NEED. AND THEN WHAT
ARE WE DOING WITH THE RESERVE?
WHY DO WE NEED TO KEEP THESE OTC
PLANTS? WHY DON'T WE JUST GET
EVERYONE? WHY CAN'T WE JUST GET
EVERYONE INTERCONNECTED AND
ONLINE? NOT ALL OF THOSE
RESOURCES THAT ARE IN THE QUEUE
SORT OF STANDING IN LINE ARE
ACTUALLY GOING TO MAKE IT TO
MATURITY, SO THERE'S GOING TO BE
VARIOUS SITUATIONS, EITHER WITH
THEIR FUNDING OR THE FIRMNESS OF
THEIR DEVELOPMENT. BUT I THINK A
LOT OF THIS COMES BACK TO
UNDERSTANDING THE UNDERLYING
RATIONALE. SO I THINK WITH OUR
ENERGY TRANSITION, A LOT OF
THINGS HAVE CHANGED. WE ARE
REEVALUATING OUR PROCESSES TO
MAKE THEM MORE EFFECTIVE AS
WE'RE MOVING FORWARD. BUT THAT'S
ALSO MEANS THAT I THINK IN
CHANGING OUR PROCESSES, WE ALSO
NEED TO GO THROUGH THE
APPROPRIATE STAKE. HOLDING AN
OPEN PROCESSES THAT GOT US HERE
IN THE FIRST PLACE. SO PART OF
THE, UM INTERCONNECTION PROCESS
ENHANCEMENTS AS A SERIES OF
STAKEHOLDER, UH, INITIATIVES
THAT THE CHI SO HAS CONDUCTED
WITH OUR STAKEHOLDERS TO
UNDERSTAND AND HEAR FROM THEM.
HOW CAN WE TRANSITION AND
TRANSFORM OUR EXISTING PROCESS?
BECAUSE WE DO ULTIMATELY,
NEITHER SUPPORT WE UNDERSTAND
THERE'S A PROBLEM. WE HAVE
IDENTIFIED IT. WE'RE WORKING
TOGETHER TO TRY TO CHANGE IT.
BUT I DON'T THINK THE SOLUTION
IS NECESSARILY OBVIOUS. SO IF WE
SAID TO ALL 100, GIGAWATTS OF
RESOURCES, GREAT YOUR
INTERCONNECTED VERY FEW OF THEM
WILL ACTUALLY GET CONTRACTS AND
BE SUPPORTED. SO WE DO WANT TO
BE MINDFUL THAT SIMPLY BECAUSE
THERE IS A QUEUE DOESN'T
NECESSARILY MEAN THERE'S A
COMMITMENT TO IT, AND THAT'S
WHAT WE'RE TRYING TO DO IS
CREATE A PROCESS THAT WILL KIND
OF FILTER OUT THOSE THAT WILL
RISE THE TOP AND ALSO GET THE
RESOURCES IN THE RIGHT PLACES
AND RESOURCES THAT WILL SUPPORT
STATE GOALS. SO WHAT'S THE
DEADLINE FOR THIS NEW PROCESS?
WE ARE ALREADY LOOKING AT IT.
WE'VE ALREADY HAD THE FIRST
PHASES GO IN. SO THIS IS A
CONTINUOUS IMPROVEMENT OF OUR
INTERCONNECTION PROCESS THAT WE
WILL BE FILING WITH THE FEDERAL
ENERGY REGULATORY COMMISSION THE
NEXT FILING. I DON'T HAVE THAT
ON HAND. BUT I CAN CHECK AND GET
BACK TO YOU ON THAT. I GUESS I'M
STILL NOT HERE. I GUESS THEY YOU
KNOW, I'M GETTING A VERY
BUREAUCRATIC ANSWER THAT WE'RE
WORKING ON IT. I GUESS. IT
DOESN'T MAKE ME FEEL VERY
CONFIDENT THAT CHANGE IS
IMMINENT, I GUESS. MY MISSING
SOMETHING. I THINK THE CHANGE
THAT COMES HAS TO BE THE RIGHT
CHANGE AND NOT NECESSARILY A
FAST CHANGE. WE DO HAVE TO WORK
THROUGH OUR STAKEHOLDER PROCESS
WE DO NEED CAN WE DO BOTH? WE
WOULD LIKE TO WORK WITH OUR
STAKEHOLDERS ON THAT, AND THE
FASTER WE CAN WORK WITH THEM ON
GETTING TO RESOLUTION. THE
FASTER WE WOULD LOVE TO MAKE
THOSE CHANGES. OKAY SO I DIDN'T
GET AN ANSWER. SO YOU YOU.
YOU'RE WORKING ON IT. YOU DON'T
KNOW WHEN YOU'LL BE DONE. YOU
DON'T KNOW WHAT IMPROVEMENT
YOU'LL MAKE. YOU DON'T KNOW HOW
IT'S GOING TO COME OR MAKE IT
FASTER THAN TWO YEARS. THAT'S
WHAT I HEARD. BUT YOU'RE WORKING
ON IT. AND YOU HAVE NO IDEA WHEN
YOU CAN GET BACK TO ME WITH AN
ANSWER. IT'S LIKE I SAID, IT
DEPENDS ON THE OPEN STAKEHOLDER
PROCESS THAT WE HAVE. BUT IT IS
A PRIORITY. IT IS EVERYTHING WE
DO WITH EVERYTHING WE DO IN
LIFE, ESPECIALLY IN GOVERNMENT.
IT DEPENDS. BUT YOUR ANSWER IS
ABSOLUTELY NOT APPROPRIATE. IT'S
NOT SOMETHING THAT I THINK GIVES
ME GREAT CONFIDENCE. SHOULDN'T
SHOULDN'T GIVE CALIFORNIANS
GREAT CONFIDENCE. SO IT'S VERY
CONCERNING YOU COME TO HEARING
AND KNOWING THAT WE. ARE PUSHING
AND DOING EVERYTHING POSSIBLE.
TO EXPLORE NEW WAYS TO INCREASE
THE SUPPLY OF ENERGY. WE HAD TO
GO BACKWARDS IN MY OPINION. JUST
ONE PERSON'S OPINION BACKWARDS.
YOU KNOW AND REALLY MOVE FOR
DIESEL LOOKING AT NATURAL GAS.
WHEREAS WE HAVE, YOU KNOW,
POTENTIALLY CLEAN ENERGY
PROJECTS THAT WE WANT TO BRING
ONLINE AND WHAT YOU'RE SAYING TO
ME IS WORKING ON IT, AND WE HAVE
NO IDEA. WHEN WILL MAKE THE
SYSTEM BETTER? AND THERE'S
NOTHING THAT YOU'RE TELLING ME
THAT WE COULD DO AS A STATE TO
MAKE IMPROVEMENTS. WELL I WANT
TO CORRECT THAT. AND I'M NOT
SAYING THAT WE'RE NOT EFFECTIVE
AT WORKING ON THIS, BUT IT DOES
TAKE A LOT OF PARTNERS SO YOU
CAN DO THE ANALYSIS AND THE
ENGINEERING STUDIES. YOU GIVE ME
NO DETAILS. YEAH MAYBE I COULD
HELP DELPHINE WITH YOUR PARTNER
BEEN SO HELPFUL TO US. UM SO ONE
OF THE THINGS THAT WE DID IN
RECOGNITION OF THIS, UM
ASSEMBLYMEMBER'S TING IS WE DID
DO THIS TRACKING ENERGY
DEVELOPMENT TASK FORCE AND WHAT
IT DID IS IT BROUGHT US TOGETHER
AND WE HAD SOME GOOD
CONVERSATIONS ABOUT EXACTLY THE
FRUSTRATION. I THINK YOUR LINE
OF QUESTIONING IS GETTING OUT.
LIKE, WHAT CAN WE DO TO
ACCELERATE IT? AND SO WORKING
TOGETHER, PRESIDENT REYNOLDS
SENT EACH OF THE INVESTOR OWNED
UTILITIES OF VERY, UM, UH, CLEAR
AND STERN LETTER ASKING THEM TO
ACCELERATE AND REMOVE ALL
BARRIERS INTERCONNECTION FOR
NEAR TERM PROJECTS. SHE DID THAT
IN MARCH. EACH OF THE UTILITIES
HAVE RESPONDED TO HER QUITE SOME
TIME AGO. OF COURSE. BUT THAT
THAT LETTER EXCHANGE FOSTERED
THE COMMITMENT TO ONGOING BI
WEEKLY CONVERSATIONS WITH EACH
OF THE, UM INTERCONNECTION
UTILITY DEPARTMENTS AND THE PUC
AND WE DO BRING IN THE C C AS
WELL AS THE CASE, SO AS
APPROPRIATE AS WELL AS GOBY IS,
OF COURSE, DEPENDING ON THE
PARTICULAR ISSUE FOR THE
PARTICULAR PROJECT, SO WHAT WE
STARTED TO DO IS UM, MANAGE WHAT
WE'VE ASKED THE UTILITIES TO
MEASURE WHICH IS YOU KNOW HOW
MANY PROJECTS ARE COMING? AND SO
YOU KNOW, IN THE PAST TWO YEARS
WE'VE BROUGHT ONLINE OVER 150
DIFFERENT RESOURCES INTO THE
CASE. SO AS NEW INTERCONNECTIONS
, EACH OF THOSE PROJECTS WENT
THROUGH ALL OF THE PREVIOUSLY
AFOREMENTIONED INTERCONNECTION
PROCESSES APPROVED BY FARC, AND
IN THE NEXT TWO YEARS, THERE
WILL BE AN EQUAL NUMBER OF NEW
CASES OF RESOURCES PROJECTS
COMING ONLINE. SO THE TYPES OF
PROCESS CHANGES THAT DELPHINE
HAS, YOU KNOW, BEEN DISCUSSING
ARE THINGS THAT COULD BE SORT OF
MIDSTREAM CHANGES THAT MIGHT
MAKE IT BETTER FOR EVERYBODY.
BUT WE WANT TO DO THOSE VERY
DELIBERATELY BECAUSE THEY COULD
, UH, WE DON'T WANT TO HAVE THE
UNINTENDED CONSEQUENCES OF
DISRUPTING ANYTHING THAT IS
CURRENTLY IN FLIGHT COMING
ONLINE FOR THE NEXT 12 TO 36
MONTHS. SO AGAIN. WHAT WE'RE
TRYING TO DO IS WE HAVE LISTS OF
YOU KNOW ALL THE PROJECTS THAT
ARE COMING ONLINE. UM OKAY. OKAY
SO HAS LIST THE PUC HAS LISTS
AND WE WORK IN THE UTILITIES
HAVE LISTS AND WE WHEN WE
LITERALLY ARE WORKING THROUGH
THE LIST AND MAKING SURE THAT
NONE OF THEM, UM HAVE HAVE
BARRIERS TO INTERCONNECTION AND
THAT WE, YOU KNOW, GET TOGETHER
ALL THE RIGHT HEADS TO REMOVE
EACH PROJECT. AND WHEN THE
SITUATION DOES ARISE THAT THERE
ARE PROBLEMS THAT ARE CROSS
CUTTING ACROSS MANY PROJECTS.
THAT'S WHEN WE CAN LOOK FOR
PROCESS IMPROVEMENTS. UM AND
AGAIN. I JUST WANT TO EMPHASIZE
THAT THE PRESIDENT OF THE CPUC
HAS AT LEAST IMPLORED EACH OF
THE UTILITIES TO MAKE IT THEIR
TOP PRIORITY. UM TO DO
INTERCONNECTION, BUT AT THE SAME
TIME RECOGNIZING AS WHAT PETE
WAS SAYING THAT THEY ALSO HAVE
OTHER PRIORITIES RIGHT SO THAT
IT'S A REALLY DELICATE BALANCING
ACT AS JUST LEAVE IT THERE.
THANK YOU FOR THE OPPORTUNITY TO
JUMP IN ON INTERCONNECTION. SO
HOW DO WE UNDERSTAND THEIR
PRIORITIES, WHICH IS ALSO ONE OF
OUR PARTIES. I MEAN UTILITY
UNDER GROUNDING IS A PRIORITY
FOR THE STATE AS WELL. SO I
DON'T THINK ANYBODY'S ARGUING.
OH, THIS IS NOT IMPORTANT.
ABSOLUTELY. 100% IMPORTANT. IT'S
OBVIOUSLY NOT AS BIG AN ISSUE IN
MY, UH, JURISDICTION MY DISTRICT
, BUT IT'S A MAJOR ISSUE IN MANY
OTHER PARTS OF THE STATE, SO I'M
NOT ARGUING THAT, I GUESS. THE
QUESTION IS, THEN HOW DO WE ALSO
GET THEM TO PRIDE? BECAUSE IT'S
NOT LIKE THE SAME DIVISION IS
DOING BOTH GOT DIVISIONS DOING
THE UNDERGROUND AND SOME OTHER
DIVISIONS DOING INTERCONNECTION.
UH WHAT DO WE NEED TO ENSURE
THAT THEY ARE AS FOCUSED ON
INTERCONNECTION AS THEY ARE ON
UTILITY UNDERGROUND? UM WELL,
YOU KNOW, WE'D HAVE TO HAVE THE
UTILITIES HERE TO ANSWER WHAT
DIVISION DOES WHAT? BUT I DO
UNDERSTAND THAT INTERCONNECTION
, YOU KNOW, TOUCHES. ACTUALLY
MANY, MANY DEPARTMENTS IN THE
UTILITY FROM DISTRIBUTION,
PLANNING TO TRANSMISSION
PLANNING AND THEN OF COURSE,
DISTRIBUTION AND TRANSMISSION
CONSTRUCTION, SO THEY DO HAVE
YOU KNOW, COMPLEX PROJECT
MANAGEMENT TEAMS THAT HAVE TO
GET ENGAGED. UM BEFORE THEM AND
SO IT IS ACTUALLY SOMETIMES THE
SAME PEOPLE THAT ARE DOING THE
WORK FOR LIKE A NEW LOAD
INTERCONNECTION AS WELL AS THE
NEW GENERATOR INTERCONNECTION AS
WELL AS THE GRID, RELIABILITY
AND MAINTENANCE WORK, SO A LOT
OF TIMES IT IS THE SAME
CONSTRUCTION TYPE CRUISE IN THE
SAME ELECTRICAL PLANNERS. AND I
THINK ONE OTHER THING TO POINT
OUT AGAIN. IT WAS ONE OF MY
THREE. YOU KNOW, WITH THE THREE
CHALLENGES THAT WE'RE
EXPERIENCING IN OUR CONNECTION
WITH CERTAINLY ONE OF THEM, AND
I DON'T WANT TO MINIMIZE THAT.
AND I'M NOT MINIMIZING THAT. BUT
UH, YOU KNOW, AND I THINK IF YOU
TALK TO DIFFERENT DEVELOPERS,
SOME WILL TELL YOU THAT THERE'S
A PROBLEM AND IT'S AND I THINK
WE LOOK AT AND WE AGREE AS A
PROBLEM, AND IT NEEDS TO BE
FIXED AND OTHERS WOULD LOOK AT
OR HAD THE EXPERIENCE WHERE THE
TED TASK FORCE ACTUALLY STEPPED
IN. GOT SOMETHING YOU KNOW,
OTHERS WILL BE LIKE EVERYTHING
WENT FINE. DIDN'T NEED ANY HELP
. OTHERS WILL BE. YES WE NEED
HELP. WE CONTACTED TASK FORCE
GOVERNOR'S OFFICE THEY GOT
INVOLVED. IT GOT SOMETHING
MOVING, AND THERE WILL ALSO BE
DEVELOPERS WHO PROBABLY SIGNED A
CONTRACT OR OFFERED A CONTRACT
TO AN LSC THAT HAD A REALLY
UNREALISTIC START DATE THAT THE
UPGRADES THAT WOULD HAVE BEEN
REQUIRED REALLY SIX OR SEVEN
YEARS OUT. AND YET THEY SIGN A
CONTRACT COME ONLINE IN TWO OR
THREE YEARS. SO I'M SURE YOU
WILL YOU HEAR FROM FROM THOSE
FOLKS AS WELL, RIGHT. SO THERE
THERE HAS TO, YOU KNOW, THAT IS
A PART OF WHAT'S GOING ON IN
SOME OF THESE CASES, SO YOU
KNOW, I JUST OFFER THAT, BUT
ABSOLUTELY IT'S ONE OF THE
ISSUES THAT WE HAVE, YOU KNOW,
ON A CALL WITH A UTILITY EXACTLY
LAST WEEK WHO WAS TALKING ABOUT
PARTICIPATION, AND THAT'S YOU
KNOW, AS I SAID, YOU KNOW, ONE
TOOTH, WE GET IT. 123 SHOULD BE
WILDFIRE. BUT THERE HAS TO BE
456. THEY HAVE TO BE IN HERE,
BUT I ALSO DO WANT TO REITERATE
IN TERMS OF THAT QUESTION OF
ALIGNMENT BECAUSE IT'S A GOOD
ONE. THEY YOU KNOW, THERE IS AN
INTEREST IN THE UTILITIES
GETTING THAT THAT RESOURCE
GETTING GETTING THAT ADDITIONAL
INFRASTRUCTURE INTO RATE BASE.
CERTAINLY SO THAT'S IT'S NOT.
THEY'RE NOT GETTING PAID TO
PROVIDE THAT SERVICE UNTIL IT'S
ON THE GRID. UM JUST GOING BACK
TO, UH, THE STRATEGIC RESERVE
FOR A SECOND, THEN ALSO, IT'S
PART OF OUR DIABLO. UM,
AGREEMENT. YOU KNOW, THERE'S A
BILLION DOLLARS THAT HAS YET TO
BE APPROPRIATED. BUT THE
UNDERSTANDING IS THAT THERE'S A
BILLION DOLLARS OF ENERGY
CLEANER, CLEANER ENERGY THAT WE
WOULD LIKE TO BRING ON TO
INCREASE SUPPLY. SO WHAT CAN WE
DO TO UM YOU KNOW, SHOULD WE PUT
ANY OF THAT MONEY INTO SUPPLY
CHAIN ISSUES? UM INTERCONNECTION
ISSUES SHOULD, UH YOU KNOW, WHAT
CAN WE DO TO ENSURE THAT THAT
THOSE FUNDS WILL BE SPENT
TOWARDS CLEANER ENERGY RATHER
THAN YOU KNOW THESE DIESEL
GENERATORS OR NEWT, NEWER
TECHNOLOGY THAT WILL REALLY KIND
OF MOVE US CLOSER TO OUR 2050
GOALS. YEAH THANK YOU.
ASSEMBLYMEMBER'S UM, JUST JUST
WANT TO ADD TO YOUR PREVIOUS
QUESTIONS DO AS THEY JUMP INTO
THIS. SO UM, IN TERMS OF JUST A
BILLION DOLLARS THAT YOU
PROVIDED, AS YOU KNOW, YOU
SPECIFICALLY ASKED US TO LOOK AT
ALTERNATIVES, SO WE JUST DID A
WORKSHOP AT TWO WEEKS AGO, AND
THE WAY WE ARE STRUCTURING THAT
ISN'T BROADLY THREE BUCKETS. ONE
BUCKET IS THE PROCESS
INVESTMENTS POTENTIALLY, YOU
KNOW, JUST AS YOU POINTED OUT,
UM, THROUGH THE SUMMER IN BOTH
THE LEGISLATIVE BRIEFINGS, BUT
ALSO IN OUR PUBLIC PROCESS.
THERE HAVE BEEN A NUMBER OF
PROCESS ISSUES THAT WERE RAISED,
INCLUDING LOCAL GOVERNMENT
SUPPORT. UM AS MUCH AS INFLATION
SUPPORT. AND ALSO, AS YOU JUST
TALKED ABOUT HOW WHAT CAN WE DO
IN TERMS OF INTERCONNECTION? UM
THE BROAD PROBLEMS WE'VE HEARD
AROUND INTERCONNECTION IS
STAFFING RESOURCES AND THE
STAFFING RESOURCES THAT ARE
PARTICULARLY HAVE THE SKILL SET
ARE SUPPOSEDLY VERY MINIMAL ON
THE MARKET, AND THEN JUST THE
ISSUE ON THAT, AND THE SECOND
BUCKET IS BROADLY ON THE SUPPLY
SIDE ON THE BULK SIDE. WHAT CAN
WE DO? SOME OF THOSE RESOURCES
THAT YOU'VE SPECIFICALLY
IDENTIFIED OUR FUEL CELLS AND
OTHER LONG LEAD TIME RESOURCES
THAT ARE NOT COST EFFECTIVE
TODAY FOR RESOURCE PLANNING, BUT
ON THE CUSP OF
COMMERCIALIZATION. IS THERE
SOMETHING WE CAN DO TO
ACCELERATE THAT AND THE THIRD
BUCKET IS BROADLY ON THE DEMAND
SIDE. SO INCLUDING, YOU KNOW
WHAT ARE THE DIFFERENT DEMANDS
SAID OPPORTUNITIES. ONE OF THE
THINGS THAT WAS NOTED, WAS THE
VTG VEHICLE TO GREAT OPPORTUNITY
. AND HOW DO WE EXPAND THAT? SO
WE'RE LOOKING AT THOSE THREE
BUCKETS BROADLY, WE ALSO GOT
SOME INPUT ON CARVING SOME OF
THE MONEY FROM THAT BILLION FOR
PROJECTS THAT CAN SHOW
IMMEDIATELY AS A WAY TO FURTHER
SO. SO WE'RE LOOKING AT AT THE
TOTALITY OF THAT IN TERMS OF NOT
COMPETING WITH THE MARKET, BUT
INVEST IN TECHNOLOGIES THAT CAN
REALLY HELP US. MOVE FORWARD.
UM, A COUPLE OF THINGS ON AND
BROADLY THE STORAGE AND THE
PROBLEMS. I JUST WANTED TO MAKE
SURE WE HEAR YOU 100% THAT
INTERCONNECTION IS ONE OF THE
CRITICAL ELEMENTS OF OUR OF
MAKING SURE THE GRID IS RELIABLE
. AS AS BOTH MY COLLEAGUE
DELPHINE AND PETE AND MARLA
MENTIONED, I THINK THE THOSE ARE
CUTTING ACROSS A VARIETY OF
ENTITIES THAT ARE RESPONSIBLE
FOR THAT ALL THE WAY FROM ELLIS
IS TOO HIGH, SO AND OTHER
PROCESSES. AND I THINK, YOU
KNOW, WE JUST WANNA RECOGNIZED
YOU THAT WE SEE IT AS AN
IMPORTANT PROBLEM THAT SORRY WE
HAVEN'T COME WITH VERY CLEAR
STRATEGY ON HOW TO REALLY
OVERCOME THAT BARRIER. BUT WE
ARE RIGHT NOW, IN THE PROCESS OF
IDENTIFYING THE BARRIERS AND
PUTTING STRATEGIES TO ACCELERATE
THAT PROCESS, AND WE HAVE BEEN
HEARING IT LOUD AND CLEAR AND
STAKEHOLDER PROCESS THAT THAT'S
ONE OF THE ISSUES WE NEED TO
SOLVE. SO. DOES THAT MEAN THAT
IN THE FUTURE, THE HOPE IS THAT
FOR STRATEGIC RESERVE PURCHASES
, OR EVEN AS WE'RE BRINGING ON,
UH, SUPPLY ONLINE THAT WE ARE
HOPING TO RELY ON MUCH CLEANER
RESOURCES, YES, ABSOLUTELY. SO I
THINK OUR HOPE IS, YOU KNOW
YOU'VE I THINK YOU YOU'VE MADE
IT VERY CLEAR IN THE IN THE IN
THE PUBLIC MEETINGS AND THE
OVERSIGHT HEARINGS THAT YOU WANT
THAT DESERVE TO BE AS CLEAN AS
POSSIBLE, AND WE ARE HOPING TO
RELY ON SOME OF THE FOSSIL SIDE
EARLY ON, BECAUSE THAT'S WHAT WE
SEE IS AVAILABLE TODAY. BUT OUR
HOPE IS TO REALLY CLEAN IT UP
THROUGH THE DEMAND SIDE AND
DEMAND SIDE PROGRAMS. AND I
THINK EVEN LIKE YOU MENTIONED
FUEL CELLS, SO EVEN THE FUEL
CELL TECHNOLOGY MAY NOT BE
COMPLETELY THERE YET. I THINK
THAT, UH, IS A WORTHY INVESTMENT
TO INVEST IN SOME OF THESE NEWER
TECHNOLOGIES. OBVIOUSLY YOU HAVE
TO MAKE SURE THAT ENERGY IS
RELIABLE AND THAT WHEN WE NEED
IT, IT'S THERE. I THINK IT IS,
MAKES SENSE TO TRY TO INVEST IN
SOME OF THESE NEWER TECHNOLOGIES
TO HELP GET THEM TO MATURITY.
YEAH YOU'RE ABSOLUTELY RIGHT.
THANK YOU. RAISE THIS OVER THE
LAST SEVERAL HEARINGS TO THE
IMPORTANCE OF MAKING SURE WE ARE
REALLY LOOKING AT THE DEMAND
SIDE STRATEGIES. WE ARE AS A
PART OF DEVELOPING THE DEMAND
SIDE FLEXIBILITY GOAL. WE ARE
CONVENING ROUNDTABLES RIGHT NOW
AND WHAT THE BARRIERS ARE I
THINK ONE OF THE THINGS WE
COLLECTIVELY AS A STATE ENTITIES
HERE, AS PARTNERS HAVE NOT BEEN
ABLE TO DO IS REALLY DEVELOPED
THAT VISION STATEMENT YET NOT
FOR LACK OF TRYING, BUT IT'S
BEEN HARD TO GET THE PIECES
TOGETHER, AND WE REALLY HOPE TO
PROVIDE THAT TO YOU IN THE
QUARTERLY UPDATES THAT WE THAT
WE ARE GOING TO REQUIRE IN THIS
PROCESS. I APPRECIATE YOU
MENTIONED PROCESS IMPROVEMENT. I
WOULD JUST URGE ALL THE AGENCIES
TO REALLY COME BACK. TO FIGURE
OUT WHAT WE CAN DO. MY PROCESS
IMPROVEMENT STANDPOINT. I
UNDERSTAND. MR RICKLES POINT
ABOUT? WELL, SOME OF THESE ARE
JUST CASE BY CASE PROJECT BY
PROJECT. I UNDERSTAND THAT, BUT
TO NOT, UM FIGURE OUT WHAT WE
NEED TO DO TO STREAMLINE. THIS
AND NOT TO BE ABLE TO ARTICULATE
THIS AT A TIME WHEN WE
DESPERATELY NEED TO GET THIS
ENERGY ONLINE AND I UNDERSTAND
WE DON'T HAVE CONTROL OVER THE
PRIVATE MARKETPLACE, SO WHETHER
SOMETHING COMES ONLINE OR NOT.
THAT'S NOT ENTIRELY ON US
BECAUSE THAT THAT'S PRIVATE
CAPITAL COMPANY INDIVIDUAL
COMPANIES. WE UNDERSTAND WE CAN
ONLY CONTROL SO MUCH, BUT AT
LEAST THE PART THAT WE CAN
CONTROL. IN TERMS OF OUR
PROCESSES. OUR INTERFACE, I
THINK REALLY NEEDS TO BE GREATLY
IMPROVE THE FACT THAT THAT CAN'T
EVEN BE ARTICULATED PUBLIC
HEARING ABOUT WHAT NEEDS TO BE
FIXED OR IMPROVED ON WHAT WE'RE
DOING TO IMPROVE IT IS, I THINK
VERY, VERY TROUBLING. LAST LAST
QUESTION IS REALLY AROUND
PERMITTING. I KNOW THE THIRD
POINT YOU MENTIONED MR SCHOLAR
WAS AROUND PERMANENT. SO WHAT
CAN BE DONE TO STREAMLINE THE
PERMITTING ON OUR SIDE? ALSO,
THERE ARE DIFFERENT TYPES OF
PERMITS. UH WE'VE CERTAINLY
GOTTEN INVOLVED ON SOME OF THE
CONSTRUCTION PERMIT WHERE WE CAN
WRITE LETTERS ENCOURAGE LOCALS
TO DO WHAT THEY CAN TO SPEED
THINGS ALONG. YEAH, AND SHARING
THE IMPORTANCE FOR SUMMER
RELIABILITY HAS BEEN QUITE
EFFECTIVE. AND THEN THERE THERE
IS, YOU KNOW THIS CONCERNED FIRE
FIRE MARSHAL RELATED TYPICALLY
RELATED CONCERN ABOUT THESE NEW
BATTERIES, UTILITY SCALE BATTERY
PROJECTS, AND THAT'S THAT'S
TURNING OUT TO BE. YOU KNOW,
IT'S JUST GETTING ENTITIES. YOU
KNOW, THESE FAMILIARIZED WITH
WITH WHAT YOU KNOW HOW, BUT THEY
REPRESENT HOW THEY WORK WITH THE
SAFETY AND FIRE SAFETY PIECES TO
THAT ARE AND WE HAVE THE SAME
ISSUE WITH SORE THEY HAD THE
SAME ISSUE OF SOLAR AND I'D SAY,
YOU KNOW WE WERE WE WERE, YOU
KNOW, IN THE CC HAS A LOT OF
EXPERTISE IN THIS AREA GOT VERY
INVOLVED AND HAVE BEEN MY
UNDERSTANDING QUITE HELPFUL,
GETTING LOCALS MORE COMFORTABLE
WITH THESE PROJECTS OVER THE
PAST FOUR OR FIVE MINUTES. AND
AS AS YOU KNOW, I THINK THERE
WAS EVEN SOME INFORMATION
SHARING ACROSS THE DIFFERENT
LOCALITIES AS AS SOME GOT MORE
COMFORTABLE. YES TINGA, I I'M
NOT THE LEAD ON THE PERMITTING,
BUT AT A VERY HIGH LEVEL. I JUST
WANTED TO, UM, THANK THE
LEGISLATURE FOR THE OPT IN
PERMITTING AUTHORITY THAT WAS
PROVIDED TO THE C C. I THINK
IT'S EXTREMELY IMPORTANT FOR US
TO BE ABLE TO WORK WELL WITH THE
LOCAL AGENCIES ON HOW BEST TO
MOVE PERMITTING, BUT I THINK YOU
PROVIDED US SOME TOOLS AND WILL
CONTINUE TO IDENTIFY MORE. FOR
YOU TO HELP US WITH. THANK YOU.
THANK YOU. THANK YOU, MR TING.
WE'VE HEARD LEGITIMATE CONCERNS
FROM BOTH CHAIRMAN TING AND, UM
, OUR BUDGET VICE CHAIR, MR FONG
, UH, YOU KNOW, BUT WE CAN'T
FORGET ABOUT THE COSTS OF THAT
LOW INCOME COMMUNITIES, UM, LIKE
MINE WILL BEAR. COMMUNITIES
ACROSS THE STATE. THE BEAR THE
BRUNT OF IMPACTS FROM THE
CONTINUED RELIANCE ON FOSSIL
FUEL INFRASTRUCTURE, BOTH IN
TERMS OF AIR POLLUTION. CLIMATE
IMPACTS LIKE EXTREME HEAT. UM,
IN MY DISTRICT IN THE SAN
FERNANDO VALLEY OF LOS ANGELES,
THERE WERE RECENTLY METHANE
LEAKS FROM AN AGING NATURAL GAS
PLANT. THERE'S UM OFTENTIMES,
EMERGENCY AIR QUALITY WAIVERS
AND IN LOS ANGELES COUNTY. UM
WHAT? AND OF COURSE, THE ONES
THROUGH COOLING EXTENSIONS AND I
KNOW WE'VE DISCUSSED UM, WE'RE
ABOUT SEVEN YEARS FROM A ANOTHER
POTENTIAL DIABLO CANYON
EXTENSION. UH, VERY LITTLE TIME
. AND FROM WHAT I'VE HEARD FROM
WHAT YOUR ANSWERS TO MY
COLLEAGUE'S QUESTIONS. WE'RE NOT
SURE IF WE'RE GOING TO EVEN MAKE
THAT RIGHT. I MEAN, WHAT? WHAT
ARE WE GONNA SEVEN YEARS? SEEMS
LIKE VERY SHORT. FROM WHAT I'VE
HEARD, UM, THE CHALLENGES THAT
YOU'VE IDENTIFIED AND SO WHAT
CAN WE DO NOW? UM TO AVOID THE
CONTINUED OTC AND OTHER AGING
POWER PLANT EXTENSIONS. THANK
YOU. CHAIR I THINK I JUST WANTED
TO, UM, KIND OF FRAME IT OUT A
LITTLE BIT OF HIGHER LEVEL JUST
UNDER RELIABILITY CRISIS SO THAT
WE COULD ANSWER THIS QUESTION
AND SET IT UP. SO FIRST OF ALL,
I WANT TO ACKNOWLEDGE THE EQUITY
IMPLICATIONS AFTER THE LIABILITY
CONCERNS, UM, ESPECIALLY GIVEN
THAT THIS YEAR WE WERE RUNNING
DIESEL, GEN SETS AND DIESEL
BACKUP GENERATORS. IN AREAS
WHICH ARE BROADLY LOCATED IN
COMMUNITIES OF CONCERN AND
FRONTLINE COMMUNITIES, AND I
THINK THAT'S A VERY SOBERING
REALITY OF WHERE WE ARE TODAY,
AND WE WANTED TO COOK NYSE THAT
WE NEED TO DO MORE AND BETTER TO
MAKE SURE THAT WE ARE ON COURSE
OF RETIRING THE FOSSIL
GENERATION AND NOT BURDENING THE
COMMUNITIES. FOR THAT TO HAPPEN
JUST AT A VERY HIGH LEVEL. WE
HAVE THREE THINGS WE NEED TO DO
. WE NEED TO HAVE A ROBUST
STRATEGY TO MAKE SURE THAT WE
ARE BUILDING TO THE LEVEL THAT
WE NEED TO BE BUILDING ON A
REGULAR BASIS. AND YOU KNOW
YOU'VE IN OTHER COMMITTEES HAVE
PUSHED US AND CPUC HAS DONE A
TREMENDOUS JOB ON AUTHORIZING
THE PROCUREMENT AND THE
QUESTIONS RIGHT NOW HAVE BEEN.
HOW DO YOU BUILD TO THAT RIGHT?
SO WE WERE TAKING THE STEPS TO
DO THAT? I THINK THAT'S AN
IMPORTANT COMPONENT. THERE'S
ANOTHER COMPONENT, WHICH IS HOW
DO WE CONTINUE TO TACKLE THIS
VOLATILITY OF CLIMATE CRISIS
RESOURCES THAT ARE CLEANER?
RIGHT NOW, YOU KNOW, GIVEN THE
GIVEN THE SHORT TIME PERIOD OF
HOW TO BUILD THAT STRATEGIC AS
IRV, WE ARE, UM DEPENDING ON A
LOT OF THE EXISTING FOSSIL
GENERATION, BUT CURRENT PLANNING
, WE HAVE DONE SCENARIOS TO SEE
HOW WE CAN REDUCE THE RELIANCE
ON THE FOSSIL GENERATION. BUT
YOU'RE ABSOLUTELY RIGHT THAT WE
NEED A LONG TERM. STRATEGY FOR
MAKING SURE WE CAN GET THROUGH
THE NEEDLE PEAKS WITH CLEAN
RESOURCES. RIGHT NOW, IT FEELS
THAT THESE EXTENSIONS HAVE
BECOME PART OF THE STRATEGY AND
IT'S JUST THE PLAN. WE'LL JUST
EXTEND IT EVERY YOU KNOW. THREE
MORE YEARS. FIVE MORE YEARS.
SEVEN MORE YEARS. UM AND I'M
ASKING HOW WHAT DO WE NEED TO DO
NOW, TOO? SO THAT THESE
EXTENSIONS AND WHAT WE'VE
PROMISED THESE FRONTLINE
COMMUNITIES. UH YOU KNOW,
ACTUALLY DOESN'T HAPPEN THAT WE
DON'T CONTINUE EXTENDING I THINK
IT'S IT STARTS WITH PLANNING
ADEQUATELY IN A CHAIR. I THINK
ONE OF THE THINGS THAT WE WHEN
WE CAME INTO 2020 WE WOULD
ABSOLUTELY CAUGHT OFF GUARD WITH
THE AMOUNT OF CLIMATE CRISIS
THAT WE HAVE SEEN. YOU KNOW,
THAT'S JUST THAT REALITY OF WHAT
HAPPENED. AND I THINK HAS STATE
AGENCIES. WE NEED TO ACKNOWLEDGE
THAT IN A WHILE, WE WERE DOING
OUR BEST TO PLAN THAT WAS NOT
SEEN. WELL IN RETROSPECT, I
THINK, GIVEN THE EXPERIENCE OF
2020 2021 2022, WE HAVE
HISTORICAL EVIDENCE AND
VISIBILITY OF HOW BETTER TO PLAN
. I THINK THAT'S THE FIRST STEP
ON HOW DO WE PLANNING THAT? LIKE
WHAT YOU SAID THE ADEQUATE
PLANNING. HAS THAT STARTED? WHO
WILL INITIATE THAT? YES I THINK
ABSOLUTELY. UM THE THREE
AGENCIES COLLECTIVELY HAVE COME
COMPLETELY TRANSFORMED OUT IN
THE PROCESS OF CONTINUING TO
TRANSFORM OUR ANALYTICAL
FRAMEWORK ON HOW DO HOW DO WE
THINK ABOUT RELIABILITY UNDER A
CLIMATE THREAT, SO I THINK
THAT'S THE FIRST STEP. AND SO
NOW, YOU KNOW, AS WE PROVIDED
YOU OVER THE SUMMER, MANY
ANALYSIS NOW WE'RE BEGINNING TO
REALLY PLAN FOR NOT FORECASTS,
BUT SCENARIOS SO HISTORICALLY,
WE'VE ALWAYS SAID WHAT IS THE
FORECAST BASED ON THE HISTORICAL
DATA, BUT NOW WE'RE LOOKING AT
MANY CLIMATE SCENARIOS AND
UNDERSTANDING WHAT THE VOLUNTEER
COULD COULD LOOK LIKE. SO I
THINK WE ARE IN A VERY GOOD
PLACE AND WILL CONTINUE TO
DEFINE THAT ANALYSIS. AND WHEN
DO YOU EXPECT LIKE A PLAN TO
BECOME PUBLIC? SO THE FIRST
REPORT WE HAVE THAT IS COMING TO
YOU IN DECEMBER, WILL WILL
OUTLINE SOME OF THE WORK THAT
WE'VE ALREADY DONE AND SOME THAT
NEEDS TO BE CONTINUED TO BE
FLUSHED OUT AND OVER THE NEXT
QUARTERLY REPORTS IN A WE WOULD
IMAGINE MIDDLE OF NEXT YEAR YOU
WILL HAVE A MUCH MORE CLEAR
PICTURE FROM ALL OF US. BUT ON
THE FRAMEWORK FOR THE ANALYSIS
AND HOW WE ARE MITIGATING THEM
NOT TO SAY THAT WE DON'T HAVE UH
UH, PLANTS RIGHT NOW, BUT I
THINK OVER THE NEXT SIX MONTHS,
THEY'LL COME TOO MUCH MORE
CLARITY IN A WAY WE CAN
COMMUNICATE TO YOU BETTER. I
JUST I GUESS I FEEL THAT, UM
EVERY HEARING WE SAY WE WEREN'T
EXPECTING THIS. WE'RE NOW GOING
TO PLAN FOR THE FUTURE. WE'VE
BEEN SAYING THIS FOR YEARS. I
MEAN, I'VE ONLY BEEN IN THE
LEGISLATURE OF 4.5 YEARS, BUT I
FEEL LIKE I HEAR THAT'S LIKE A
RECURRING, UM, ANSWER THAT I GET
IN IN HEARINGS AND, YOU KNOW, I
JUST WE HAVE A SENSE OF URGENCY
, RIGHT? I MEAN, THESE ARE
FRONTLINE COMMUNITIES THAT ARE
BEING I FEEL JUST NEGLECTED. UM
AND THAT'S ALWAYS OUR BACKUP.
LET'S JUST CONTINUE RUNNING
THESE PLANTS, UM, THAT ARE
POLLUTING THE AIR THERE THAT ARE
CAUSING. UH PUBLIC HEALTH ISSUES
IN IN OUR COMMUNITIES. UM AND
YOU KNOW, I WANT A PLAN THAT
AVOIDS THAT. YEAH ABSOLUTELY.
AND I DO NOT WANT TO SPEAK ABOUT
IT IN TWO WAYS. YOU'RE
ABSOLUTELY RIGHT. UM STARTING IN
2020 WHEN WE STARTED ESTIMATING
OUR WORST CASE SCENARIO. BASED
ON THE 2020 EXPERIENCE GOING
INTO 2021. WE THOUGHT WE HAD
FIGURED IT OUT. IN 2021, YOU
KNOW, WE EXPERIENCED DIFFERENT
EFFECTS AND THEN 2022 WAS
COMPLETELY DIFFERENT. BUT WHAT
IT DID DO, THOUGH, IS THAT WE
HAVE NOW THREE YEARS OF
HISTORICAL DATA, WHICH REALLY
HELPS CONSTRUCTED MODELS COMING
INTO 2020. WE JUST DID NOT HAVE
THAT KIND OF DATA. AND ALSO, WE
HAD TO SOCIALIZE THAT THIS IS
NOT A ONE TIME EVENT THIS COULD
CONTINUE TO HAPPEN. EARLY ON.
FOR EXAMPLE, IN IN MAY, WHEN WE
PUT OUT THAT WE COULD HAVE A
7000 MEGAWATT POTENTIAL
SHORTFALL THIS YEAR. UM THE
INITIAL COMMENTS WE RECEIVED
WERE THAT THAT YOU KNOW THAT IS
JUST OUT OF ORDINARY AND THAT
MIGHT NOT SHOW UP. BUT THAT
SHOWED UP, SO I THINK WHAT
YOU'RE BEGINNING TO SEE FROM THE
STATE AGENCY SAYS. WE HAVE A
BETTER FRAMEWORK ON HOW TO
ANALYZE THAT. AND BUT TO YOUR
POINT DO WE HAVE A VERY CLEAR
SOLUTION ON MAKING SURE THAT WE
CAN TELL YOU TODAY WITH 100%
CERTAINTY THAT WE ARE GOING TO
RETIRE THOSE? NO, AND WE'LL COME
BACK TO YOU WITH THAT BETTER
PLAN SOONER THAN LATER. I LOOK
FORWARD TO THAT PLAN, AND I WILL
BE LOOKING OUT FOR IT. UM IT'S
VERY IMPORTANT TO ME AND I KNOW
TOO MANY OTHER, UH OF MY
COLLEAGUES IN THE LEGISLATURE
THAT REPRESENT THESE FRONTLINE
COMMUNITIES WERE AS
REPRESENTATIVES OF THESE
COMMUNITIES WE HEAR FROM OUR
CONSTITUENTS, UM, ABOUT THE
IMPACTS ENVIRONMENTAL IMPACTS OF
THAT THESE AGING POWER PLANTS
HAVE IN OUR COMMUNITY AND LOCAL
GOVERNMENTS AREN'T ABLE TO MOVE
FORWARD IN TERMS OF, YOU KNOW,
LAND USE PLANNING WHEN THESE
PLANTS ARE GONE. UH AND YOU
KNOW, WE'RE WE'RE WAITING FOR
THAT. YOU KNOW, WE REALLY WANT
THAT TO MOVE FORWARD AND YOU
KNOW, TO HAVE CLEAN AIR AND, UH,
YOU KNOW BETTER PUBLIC HEALTH
OUTCOMES. YES, I JUST DIDN'T
CLOSING. YOU KNOW, WE AS A PART
OF OUR INTEGRATED ENERGY POLICY
REPORT THIS YEAR, WE DID
REGIONAL WORKSHOPS. AND YOU KNOW
WE HAVE BEEN IN VENTURA COUNTY
IMPERIAL COUNTY, UM AND REALLY
KIND OF EXPERIENCED BOOTS ON THE
GROUND. THE IMPACTS OF YOU KNOW,
FOR EXAMPLE, EXTENDING THE OTC
POWER PLANTS. EQUITY IS AT THE
HEART OF THE WORK. WE DO. UM WE
ABSOLUTELY RECOGNIZED THAT AND
UM, WE ARE SORRY. WE HAVEN'T
BEEN ABLE TO ACCELERATE THE
SOLUTIONS TO DO THAT, AND WE
WILL ABSOLUTELY COME BACK TO
YOUR SOLUTIONS THAT A REQUEST TO
THE LEGISLATURE THAT WOULD HELP
YOU ACCELERATE THAT. WHAT CAN WE
DO TO HELP THAT TO PARTNER WITH
YOU? I THINK THIS YEAR YOU'VE
GIVEN US A NUMBER OF TOOLS
NUMBER OF TOOLS IN TERMS OF BOTH
CREATING A RESERVE BY THE MOVING
A NUMBER OF THESE PLANTS OUT OF
THE MARKET AND MAKING IT YOU
KNOW, IN A USE ONLY UNDER
EXTREME SITUATIONS, SO THAT IS,
I THINK A VERY RIGHT STEP. AND
NOW YOU HAVE GIVEN US FUNDING TO
ACCELERATE THE STRATEGIC RESERVE
TO BE MORE CLEANER AS WELL AS
THE BROADER, UM, ENERGY
RESOURCES. I THINK WE HAVE BEEN
GIVEN A NUMBER OF TOOLS THIS
YEAR WE HAVE TO THROUGH THE
PUBLIC PROCESS FIGURE OUT THE
BEST WAY TO ACCELERATE THIS TO
REALLY BRING AS EQUITABLE
SOLUTION AS POSSIBLE AS QUICKLY
AS POSSIBLE. SO WILL ABSOLUTELY
COME BACK TO YOU WITH
RECOMMENDATIONS THAT WE MIGHT
HAVE. THANK YOU. WELL, THANK
YOU. THANK YOU TO ALL THE
REPRESENTATIVES FROM THE STATE
AGENCIES THAT JOINED US TODAY.
UH THERE'S STILL A LOT OF
UNANSWERED QUESTIONS AND FOLLOW
UPS THAT WE WILL BE LOOKING OUT
FOR, BUT I JUST WANT TO THANK
YOU FOR PARTICIPATING IN OUR
HEARING TODAY. UM WE'RE READY TO
MOVE ON TO THE NEXT PANEL. WHICH
IS A PANEL OF INTERESTED PARTIES
, ALSO DISCUSSING THE ENERGY
TRANSITION IN 2030. THANK YOU.
THANK YOU.
I BELIEVE MR BRECKEL, ARE YOU
FROM THE CLEAN AIR TASK FORCE
WILL START THIS SECOND PANEL.
THANK YOU. AND THIS IS ON YES.
GOOD AFTERNOON AND THANKS FOR
THE OPPORTUNITY TO TESTIFY HERE
TODAY. MY NAME IS ALEX BRECKEL
AND THE DIRECTOR OF CLEAN ENERGY
INFRASTRUCTURE DEPLOYMENT
CLEANER TASK FORCE WERE GLOBAL
NGO WORKING TO REDUCE AIR
POLLUTION AND GREENHOUSE GAS
EMISSIONS QUICKLY AFFORDABLY AND
EQUITY EQUITABLY. SO, AS WE
RECENTLY HEARD, CALIFORNIA HAS
BUILT AN IMPRESSIVE AMOUNT OF
CLEAN ENERGY, RELYING ON THE
BOTTOMS UP PROJECT BY PROJECT
APPROACH TO DEPLOYMENT. BUT AS
GOOD RELIABILITY CHALLENGES OF
THE PAST THREE SUMMERS HAVE
REVEALED THIS APPROACH IS
FAILING TO ELICIT THE PAY SCALE
AND DIVERSITY OF NEW RESOURCES.
AT THE STATE NEEDS TO REACH ITS
AMBITIOUS CLEAN ENERGY GOALS. A
BETTER ALTERNATIVE. WE BELIEVE.
IT'S FROM CALIFORNIA TO URGENTLY
DEVELOP A COMPREHENSIVE CLEAN
ENERGY DEPLOYMENT PLAN THE
CHART. IT'S FAST TO A LOW CARBON
FUTURE, AND I'LL ELABORATE ON
THAT IN JUST A MOMENT. SO I
THINK IT'S STARTLING FACT FOR ME
IS THAT DESPITE ALL OF THE NEW
ADDITIONS OF CLEAN ENERGY AND
BATTERIES, WE JUST TALKED ABOUT
OVER THE PAST DECADE, NET
GENERATION CAPACITY ADDITIONS
HAVE REMAINED FLAT IN THE STATES
. SO FOR EVERY MEGAWATT, WE'RE
BRINGING ONLINE, YOU LOSE A
MEGAWATT DUE TO RETIREMENTS.
OVER THE NEXT 2.5 DECADES. CARB
ANTICIPATES THAT THE TOTAL
GENERATION CAPACITY WILL NEED TO
BE FOUR TIMES LARGER THAN IT IS
TODAY. SO PAST DECADE, NO GROWTH
NEXT 2.5 DECADES FOR X GROWTH IN
THE TOTAL GENERATION CAPACITY.
IN THE CALIFORNIA GRID. AND
CARVE ALSO ESTIMATES THE UTILITY
SCALE SOLAR DESPITE ALL THE
CHALLENGES THAT WE JUST TALKED
ABOUT, WOULD HAVE TO INCREASE
THE PACE OF NEW ADDITIONS BY
FIVE X COMPARED TO RECENT PAST
AND THAT'S FOR EACH OF THE NEXT
20 YEARS. SO A SUSTAINED
EXTREMELY HIGH DEPLOYMENT RATE.
AND TO INTEGRATE THAT THIS MUCH
CLEAN ENERGY THE CAPACITY THAT
TRANSMISSION SYSTEM, THE LARGE
SCALE TRANSMISSION LINES THAT
MOVE ELECTRICITY, CONSUMERS
WOULD HAVE TO INCREASE
TREMENDOUSLY AS WELL. ONE
ESTIMATE PUTS IT AT ROUGHLY
TRIPLE THE CAPACITY BY MID
CENTURY TO FULLY DE CARBONIZED
THE CALIFORNIA GRID. AND YET
JUST IN CALIFORNIA'S NEED FOR
RAPID CLEAN ENERGY CONSTRUCTION
AND DEPLOYMENT IS GREATEST CLEAN
ENERGY PROJECTS ARE TAKING FAR
TOO LONG TO COMPLETE. ONE
EXAMPLE IS THE TOPAZ, SOLAR
FARM, CALIFORNIA'S AND THE
UNITED STATES' LARGEST SOLAR
FARMS TOOK SIX YEARS TO
CONSTRUCT AND BEGIN OPERATION.
CALIFORNIA WOULD NEED THE
EQUIVALENT OF 100 SUCH PROJECTS
JUST TO REACH 90% 0 CARBON
ELECTRICITY SALES TARGET BY
2035. THAT'S JUST 12 YEARS AWAY
. 100 OF THE PROJECTS THAT TOOK
SIX YEARS NEED TO BE BUILT IN
JUST 12 YEARS. AND TRANSMISSION
CAPACITY OR TRANSMISSION
PROJECTS TAKE EVEN LONGER AS WE
WE'VE JUST BEEN DISCUSSING. DUE
TO THEIR SIZE, THEIR COMPLEXITY
AND I THINK DIFFICULT REGULATORY
ENVIRONMENT IN CALIFORNIA. UM
AND THOSE HAVE IN RECENT PAST
LED TO NUMEROUS DELAYS AND
TRANSMISSION PROJECTS THAT ARE
UNDERWAY. SO CURRENTLY PROJECTS
THAT ARE UNDER CONSTRUCTION OF
ACCRUED AN AVERAGE OF FIVE YEARS
OF DELAY RELATIVE TO WHAT THE
CALIFORNIA IS SO ANTICIPATED
THOSE PROJECTS TO TAKE
ADDITIONALLY, THE 15 PROJECTS
THAT ARE UNDERWAY THAT ARE
ANTICIPATED TO BE COMPLETED BY
2030 THAT IN YOUR TIME YOUR TERM
GOAL THAT WE'VE TALKED ABOUT
HAVING TAKEN THREE TIMES LONGER
THAN THEY HAVE ANTICIPATED ON
AVERAGE, AND IT'S MORE CLEAN
ENERGY PROJECTS ARE BUILT
SIMULTANEOUSLY IN THE COMING
YEARS, THE VARIOUS TO DEPLOYMENT
THAT HAVE LED TO THESE NEAR TERM
DELAYS. HE'S PAST RECENT DELAYS.
UM INCLUDING COMPETITION FOR
LAND, LOCAL OPPOSITION. OUR
BURDENS ON STATE AND LOCAL
PERMITTING AGENCIES WILL ONLY
GROW. THEY WON'T THEY WON'T
MITIGATE. IN OCTOBER, THE CLEAN
AIR TASK FORCE ENVIRONMENTAL
DEFENSE FUND, PUBLISHED A REPORT
WHERE WE IDENTIFIED SOME OF
THESE CHALLENGES AND OFFERED A
PATH FORWARD. WE FOUND THAT
ACHIEVING THE STATE'S CLEAN
ENERGY TARGETS WILL BE
CHALLENGING BUT ACHIEVABLE IF
THE STATE TAKES URGENT ACTION
TODAY, AND TO THAT END, WE
OFFERED SEVERAL SPECIFIC
RECOMMENDATIONS HERE. I'LL JUST
TALK ABOUT THREE OF THEM. FIRST
AND MOST IMPORTANTLY, CALIFORNIA
SHOULD DEVELOP A STATEWIDE CLEAN
ENERGY DEPLOYMENT PLAN THAT
CONSIDERS THE STATE AS AN
INTERCONNECTED, DIVERSE AND
CONTINUOUS HOLD THAT IT IS AND
DEVELOPING THE PLAN. THE STATION
ENGAGED WITH LOCAL GOVERNMENTS
AND COMMUNITIES AND IDENTIFY
SPECIFIC AMOUNTS, LOCATIONS AND
TIMING OF NEW RESOURCE
DEPLOYMENT AND INFRASTRUCTURE
EXPANSE AND REQUIRED ACROSS THE
STATE TO REACH ITS CLEAN ENERGY
GOALS. NEAR TERM AND LONG TERM.
SUCH A PLAN WOULD HELP DEPLOY
CLEAN ENERGY MORE DELIBERATELY
AFFORDABLY AND ON TIME. SECOND
THE STATE SHOULD ASSIGN PRIMARY
RESPONSIBILITY FOR ACHIEVING THE
CLEAN ENERGY GOALS OF THE STATE
AND OF THE PLAN TO A SINGLE LEAD
AGENCY AND GIVE THEM THE
AUTHORITY TO IMPLEMENT THE PLAN.
I JUST REFERENCED RESPONSIBILITY
FOR ACHIEVING CALIFORNIA'S
CLIMATE GOALS IS CURRENTLY
SPREAD AMONG MORE THAN A DOZEN
AGENCIES WITH DIFFUSE
RESPONSIBILITIES AND OVERLAPPING
JURISDICTION. AS THE OLD ADAGE
GOES WHEN EVERYONE'S IN CHARGE.
NO ONE IS IN CHARGE. ASSIGNING
ELITE AGENCY TO IMPLEMENT THE
CLEAN ENERGY DEPLOYMENT PLAN
WILL ENABLE COORDINATED THIS
DECISION MAKING REQUIRED TO
TACKLE A PROJECT OF THIS
ENORMITY IN THIS COMPLEXITY.
THIRD AND LASTLY, THE STATE
SHOULD DEVELOP A DASHBOARD TO
PUBLICLY TRACK PROGRESS TOWARDS
MILESTONES ESTABLISHED IN THE
PLAN. THERE ARE NUMEROUS SOURCES
OF INFORMATION ON HOW MUCH CLEAN
ENERGY POWER LINES CHARGING
STATIONS AND OTHER CLEAN ENERGY
INFRASTRUCTURE BUILT ANNUALLY.
BUT IT'S MY CONTENTION THAT
NOBODY INSIDE THE GOVERNMENT OR
OUT AND SAY DEFINITIVELY WHETHER
THE STATE IS ON TRACK TO REACH
ITS CLEAN ENERGY GOALS,
AFFORDABLY AND RELIABLY AND ON
TIME A DASHBOARD WOULD PROVIDE
THAT CRITICAL INFORMATION. ALSO
ENHANCE ACCOUNTABILITY OF THE
STATE AGENCIES AND PROVIDE
MARKET CERTAINTY TO CLEAN ENERGY
RESOURCES. SO IN SUMMARY,
CALIFORNIA MUST BUILD AN
UNPRECEDENTED AMOUNT OF CLEAN
ENERGY AND SUPPORTING
INFRASTRUCTURE. DONE RIGHT. THIS
CLEAN ENERGY TRANSITION WILL DO
MORE THAN REDUCE PLANET WARMING
GREENHOUSE GASSES THAT WERE JUST
TOXIC AIR POLLUTION IN HOMES AND
COMMUNITIES PROVIDE HUNDREDS OF
THOUSANDS OF JOBS AND PLACE
CALIFORNIA AT THE FOREFRONT OF
THE BATTLE AGAINST CLIMATE
CHANGE. AND FRANKLY, THERE ISN'T
A MOMENT TO WASTE FAILING TO
RAPIDLY DEPLOY CLEAN ENERGY AND
RELATED INFRASTRUCTURE TODAY,
COMPOUNDS THE DIFFICULTY OF
DOING SO TOMORROW. SO NOW IS THE
TIME FOR CALIFORNIA TO CREATE
AND IMPLEMENT A CLEAN ENERGY
DEPLOYMENT PLAN. THANK YOU FOR
YOUR ATTENTION. I WELCOME
QUESTIONS. I WILL ALSO APOLOGIZE
. I WILL HAVE TO RUN JUST AFTER
TWO TO CATCH A PLANE, BUT I CAN
JOIN BY. ZOOM FOR THE REMAINDER
OF THE QUESTION. PERIOD. THANK
YOU. THANK YOU UP NEXT WE HAVE,
ALEXIS SAID HERMAN FROM THE
CALIFORNIA ENVIRONMENTAL JUSTICE
ALLIANCE. HELLO. UM, LET ME JUST
START. THERE WE GO, OKAY? HELLO
MY NAME IS ALEXIS SAID HERMAN,
AND I'M, THE ENERGY EQUITY
PROGRAM MANAGER AT THE
CALIFORNIA ENVIRONMENTAL
JUSTICE, ALLIANCE OR STAFF. AH
THANK YOU SO MUCH TO THE
COMMITTEE FOR ALLOWING US TO
SPEAK. THERE HAS A STATEWIDE
COMMUNITY LED ALLIANCE THAT
WORKS TO ADVANCE ENVIRONMENTAL
JUSTICE AND ALLEVIATE POVERTY
AND POLLUTION. WILL UNITE THE
POWERFUL LOCAL ORGANIZING OF OUR
MEMBERS IN THE COMMUNITIES MOST
IMPACTED BY ENVIRONMENTAL
HAZARDS TO PURSUE COMPREHENSIVE
POLICY SOLUTIONS. TODAY, I'LL
START BY TALKING A LITTLE BIT
ABOUT WHY WE THINK CALIFORNIA IS
IN THIS RELIABILITY CRISIS IN
THE FIRST PLACE AND HOW THIS HAS
HARMED ENVIRONMENTAL JUSTICE
COMMUNITIES FIRST AND WORST,
THEN I WILL SPEAK BRIEFLY ABOUT
THE DANGERS OF THE STATE'S
CURRENT STRATEGY BEFORE
OUTLINING CLEANER, HEALTHIER AND
SAFER ALTERNATIVES. SO STARTING
WITH HOW CALIFORNIA GOT INTO
THIS POSITION, WHICH WE HAVE
ALREADY BEEN IN QUITE A LARGE
DISCUSSION AROUND. UM WE ALL
KNOW THE SCIENCE IS CLEAR. YOU
KNOW, THE EXTRACTION OF BURNING
OF FOSSIL FUELS ARE THE PRIMARY
DRIVER OF CLIMATE CHANGE, WHICH
WE KNOW ARE FUELING EXTREME
HEAT, DROUGHTS AND WILDFIRES.
THESE DISASTERS HURT WORKING
CLASS COMMUNITIES OF COLOR FIRST
AND WORST, AND NOW THEY'RE
PUTTING SO MUCH STRAIN ON OUR
OUTDATED POWER GRID THAT ALL OF
US ARE HERE TO TALK ABOUT
RELIABILITY, AND WE'VE BEEN
DOING IT. UM YOU KNOW, FOR YEARS
. OF COURSE, NONE OF THIS IS
NEWS SCIENTISTS, ADVOCATES,
INDIGENOUS LEADERS AND COMMUNITY
MEMBERS HAVE SOUNDED THE ALARMS
FOR DECADES ABOUT THE NEED TO
MOVE AWAY FROM FOSSIL FUEL BASED
ECONOMY, NOT ONLY TO PROTECT OUR
PLANET BUT ALSO TO PROTECT OUR
COMMUNITY MEMBERS, DESPITE
WARNINGS TO MOVE FASTER AND
FARTHER ON CLEAN ENERGY,
HOWEVER, WE'VE SEEN THAT
CALIFORNIA HAS LARGELY STALLED
IN MANY WAYS. AS AS FOLKS HAVE
BEEN NOTING ONE REASON IS
BECAUSE SOME OF THESE TRANSITION
QUESTIONS ARE EXTREMELY
CHALLENGING AND COMPLEX. WHICH
IS WHY IT'S SO GREAT. WE'RE
HAVING THIS CONVERSATION TO
TODAY TO GET REALLY INTO THE
WEEDS OF SOME OF THESE LARGER,
SYSTEMIC, LIKE INTERCONNECTION
ISSUES AND TECHNICAL BARRIERS.
OTHER FOUNDATIONAL REASONS,
HOWEVER, ALSO INCLUDE A LEGACY
OF SYSTEMIC RACISM, NEGLIGENCE,
POOR PLANNING AND GREENWASHING
AND LOBBYING BY THE FOSSIL FUEL
INDUSTRY OR RUNNING OUT OF TIME,
AND WE CAN'T AFFORD TO TRUTHS
PATH THAT DO ANYTHING BUT QATAR
TIES WITH THE ROUTE DRIVER OF
CLIMATE CHANGE. SO NEXT, I'LL
TALK ABOUT THE DANGERS OF THE
CURRENT STRATEGY BEING TAKEN BY
CALIFORNIA, WHICH INCLUDES AN
OVER RELIANCE ON POLLUTING AND
HARMFUL RESOURCES LIKE GAS,
DIESEL, NUCLEAR BIOGAS, HYDROGEN
AND CARBON CAPTURE AND STORAGE.
THIS PAST YEAR. THE CALIFORNIA
LEGISLATURE, UM YOU ALL PASSED
THE ENERGY TRAILER BILL A B 25,
WHICH AMONG MANY THINGS DID
CREATE THIS STRATEGIC
RELIABILITY RESERVE THAT WE HAVE
ALREADY TALKED ABOUT HAVE FOUND
THIS RESERVE TO BE EXTREMELY
DANGEROUS IN MANY WAYS, AS IT
WAS SET UP IN A WAY THAT WOULD
LIKELY FUND DIESEL BACKUP
GENERATORS AND THE EXTENDED USE
OF GAS PLANTS. AS WE ALL KNOW,
DIESEL AND GAS ARE EXTREMELY
TOXIC. MORE THAN 40 CONSTITUENTS
OF DIESEL EXHAUST ARE LISTED AS
HAZARDOUS AIR POLLUTANTS BY THE
U. S EPA. A GAS PLANTS ALSO
PRODUCE HARMFUL POLLUTION AND
RISK RELEASING TOXIC METHANE
EMISSIONS AND OVER HALF OF GAS
PLANTS ARE LOCATED IN
CALIFORNIA'S MOST DISADVANTAGED
COMMUNITIES. THEY HOW DID
APPRECIATE GOVERNOR NEWSOM
SIGNING STATEMENT TO A B 0205
WHICH DOES DIRECT THE C E. C.
CARBON DWR TO ENSURE FULL
ENGAGEMENT WITH RELEVANT
AGENCIES AND ENSURE THAT CLEAN
ENERGY RESOURCES ARE PRIORITIZED
OVER FOSSIL FUELS. IT'S WORTH
REPEATING THAT CLEAN ENERGY
RESOURCES SHOULD BE PRIORITIZED
OVER FOSSIL FUELS AND ALL CASES
AS THEY ARE THE ROOT CAUSE OF
CLIMATE CHANGE. AND YET WE ARE
HEARING TODAY FROM VARIOUS
AGENCY STAFF THAT THERE HAVE
ALREADY BEEN, UM, PROCESSES IN
PLACE TO, YOU KNOW, ALLOW FOR
MORE DIESEL AND GAS. SO YOU
KNOW, WE WOULD LIKE TO SEE MORE
TRANSPARENCY IN THAT AND
DEFINITELY ECHO OTHERS. COMMENTS
AROUND ENSURING THERE IS A CLEAR
, UH CLEAR DATABASE TO SEE AND
ALSO CLEAR TRACKING TO SEE WHAT
BROUGHT US TO GET TO THE
DECISION OF IMPLEMENTING MORE
FOSSIL FUELS. FRONTLINE
COMMUNITIES, SEE FEEL AND
BREATHE THE IMPACTS OF THIS
VICIOUS CYCLE EVERY DAY, AND FOR
THE PAST THREE SUMMERS, THEY'VE
EXPERIENCED INCREASED SMOG
POLLUTION AND DIESEL EXHAUST IN
THEIR NEIGHBORHOODS. AS THE
GOVERNOR'S OFFICE HAS ISSUED.
EMERGENCY PROCLAMATIONS,
UNWINDING CRITICAL AIR QUALITY
PROTECTIONS THAT EJ ADVOCATES
HAVE FOUGHT FOR AND WON. NOT
ONLY ARE FOSSIL FUELS WORSENING
THE CLIMATE CRISIS AND OUR
PUBLIC HEALTH, BUT THEY'RE ALSO
EXTREMELY UNRELIABLE. BACK IN
2015. THE FAILURE OF THE LISA
CANYON GAS STORAGE FIELD
THREATENED THE RELIABILITY OF
THE SOUTHERN CALIFORNIA GRID AND
SICK AND TENS OF THOUSANDS OF
LOCAL RESIDENTS IN AUGUST 2020
ROLLING BLACKOUTS IN CALIFORNIA
WERE COMPOUNDED BY FAILURES AT
TWO DIFFERENT GAS PLANTS. IN
ADDITION TO GAS AND DIESEL
NUCLEAR POWER ALSO POSES HUGE
RISKS. SO HOW WAS OPPOSED TO SB
846, WHICH WHICH IS, UM, LOOKING
TO EXTEND THE OSLO CANYON AS THE
LOCATION OF THIS FACILITY RUNS
THE RISK OF RELEASING DEADLY
RADIATION TO TENS OF THOUSANDS
OF RESIDENTS NEAR THE FACILITY,
SUCH AS THE EJ COMMUNITY AND THE
NEIGHBORING SANTA MARIA VALLEY.
CALIFORNIA SHOULD ALSO NOT RELY
ON OTHER HARMFUL ENERGY SOURCES
THAT CONTINUE TO POLLUTE
COMMUNITIES SUCH AS BIOGAS,
HYDROGEN AND CARBON CAPTURE AND
STORAGE. WHILE THESE HAVE BEEN
TAUGHT, LARGELY TOUTED AS CLEAN
ENERGY SOLUTIONS BY MANY
STAKEHOLDERS, THEY ALL CONTINUE
TO POLLUTE THE AIR, LAND AND
WATER AND EJ COMMUNITIES WHILE
SENDING A LIFELINE TO THE FOSSIL
FUEL INDUSTRY. BIOGAS PRODUCTION
RELEASES CARCINOGENS LIKE
BENZENE, WHICH ARE TOXIC TO
HUMAN HEALTH, IN ADDITION TO
NITROUS OXIDE IN PNEUMONIA,
WHICH ARE TIED TO LUNG DAMAGE,
CARDIOVASCULAR IMPACTS, LOW
BIRTH WEIGHT AND PREMATURE DEATH
WHEN BURNED. BIOGAS ALSO
GENERATES CARBON DIOXIDE AND
RUNS THE RISK OF LEAKING METHANE
. RURAL COMMUNITIES IN THE
CENTRAL VALLEY ARE LARGELY
AFFECTED BY THE INCREASED
POLLUTION FROM BIOGAS
PRODUCTION. FURTHERMORE WHILE
GREEN HYDROGEN HAS BEEN, UM A
BUZZWORD AS OF LATE 99% OF
HYDROGEN USED TODAY IS MADE FROM
FOSSIL FUELS AND THE ONLY WAY
FOR GREEN HYDROGEN TO BE TRULY
CLEAN IS FOR IT TO BE PRODUCED
USING ELECTROLYSIS POWERED BY
CLEAN AND RENEWABLE ENERGY
SOURCES. EVEN THEN, IT SHOULD
NOT BE USED IN APPLICATIONS
WHERE DIRECT CLEAN
ELECTRIFICATION IS POSSIBLE. AND
CARBON CAPTURE AND STORAGE
TECHNOLOGIES ARE HEAVILY, UH,
BEING CONSIDERED LATELY, BUT
THEY HAVE NOT BEEN PROVEN TO
WORK. IN FACT, CCS PROJECTS HAVE
REPEATEDLY FAILED AND CONTINUE
TO CONTRIBUTE TO AIR WATER AND
LAND POLLUTION BY VARIOUS
STUDIES. OUR COMMUNITIES. HEALTH
IS NOT A PRICE WE'RE WILLING TO
PAY TO KEEP THE FOSSIL FUEL
INDUSTRY AFLOAT. THE GOOD NEWS
IS WE DON'T NEED TO ACCEPT THE
FALSE TRADEOFF BETWEEN A
RELIABLE GRID AND CLEANER AIR TO
BREATHE. IN FACT, THERE ARE MANY
SOLUTIONS THAT ARE CLEAN AND
HEALTHY WHILE ALSO BRINGING NEW
ECONOMIC BENEFITS AND
OPPORTUNITIES TO FRONTLINE
COMMUNITIES. I'LL SPEAK TO THREE
OF THESE SOLUTIONS NOW AND CALL
OUT SPECIFIC ACTIONS. CALIFORNIA
CAN TAKE THE FIRST SOLUTION, AS
MANY FOLKS HAVE ALREADY BEEN
SPEAKING TO AT LENGTH IS THAT WE
CAN BE MORE STRATEGIC ABOUT HOW
AND WHEN WE USE OUR ENERGY WHILE
BEING MORE ENERGY EFFICIENT BY
UTILIZING TECHNOLOGIES, TOOLS
AND RESOURCES THAT HELP US DO
THIS. UM FOLKS EARLIER TALKED
ABOUT THE STATEWIDE FLEX ALERT
THAT ALLOWED DEMAND TO DROP MORE
THAN 2000 MEGAWATTS. THIS IS
PROOF THAT CONSUMERS CAN SUPPORT
GREATER LIABILITY, BUT TO, UM
COMMITTEE MEMBERS POINT EARLIER
, THEY SHOULDN'T BE ASKED TO DO
THIS AND JUST A VOLUNTARY WAY,
AND WE REALLY NEED A MORE
SYSTEMATIC APPROACH TO TAKE
ADVANTAGE OF THIS. THIS IS WHY
CALIFORNIA SHOULD INVEST IN
DEMAND SIDE RESOURCES SUCH AS
ENERGY EFFICIENCY, DEMAND
RESPONSE AND SMART THERMOSTATS
AND ENSURE EJ COMMUNITIES ARE
FIRST IN LINE TO ACCESS THEM.
PROGRAMS LIKE THE C. E C S NEW
NOVEL, EQUITABLE BUILDING
DECRIMINALIZATION PROGRAM THAT
EJ ADVOCATES ALSO HELPED SECURE
FUNDS FOR DISAPPEAR YEAR ARE KEY
VEHICLE FOR EQUIPPING LOW INCOME
TENANTS WITH THE HOLISTIC SIDE
OF BUILDING UPGRADES.
ADDITIONALLY CALIFORNIA SHOULD
ENSURE THE SUCCESS OF ITS
EMERGENCY LOAD REDUCTION PROGRAM
, WHICH PAYS LOW INCOME
CUSTOMERS TO CONSERVE THEIR
ENERGY DURING TIMES OF SURGING
ENERGY DEMAND. BèC APPROVED THIS
PROGRAM LAST DECEMBER AND
REQUIRED COORDINATION AND
MARKETING YET SO FLEX ALERTS
THIS YEAR WAIT, FAILED TO EVEN
MENTION THE OPPORTUNITY TO GET
PAID FOR REDUCING ENERGY
CONSUMPTION. THESE TYPES OF
PROGRAMS HAVE PROVEN SUCCESSFUL
IN OTHER STATES, BUT WITHOUT
SUFFICIENT OUTREACH AND
COMMUNICATION. OURS WILL LIKELY
FAIL. SECOND WE CAN INCREASE
LOCAL CLEAN AND DISTRIBUTED
ENERGY AND STORAGE. THE WAY THE
ELECTRICITY GRID WAS ORIGINALLY
SET UP IS OUTDATED AND
INEFFICIENT. AND IN ORDER TO
ENSURE THE ELECTRIC GRID IS
MODERNIZED TO BE RELIABLE AND
RESPONSIVE. CALIFORNIA SHOULD
INVEST IN THINGS LIKE CLEAN
ENERGY MICROGRIDS FOR EJ
COMMUNITIES, WHICH ARE CAPABLE
OF MAINTAINING POWER WHILE
ISLAND DID OR DISCONNECTED FROM
THE BROADER GRID. THIS CAN
ENABLE LOW INCOME AND BID
MEDICALLY BASELINE COMMUNITIES
TO HAVE ACCESS TO CLEAN AND
RELIABLE BACKUP POWER, EVEN WHEN
THE GRID GOES OUT. IN ADDITION,
CALIFORNIA SHOULD INVEST IN
COMMUNITY SOLAR AND STORAGE,
WHICH CAN DELIVER CLEAN ENERGY
WHEN THERE IS A GREATER RISK OF
BLACKOUTS, WHILE ALSO BRINGING
EJ COMMUNITIES BILL SAVINGS AND
OPPORTUNITIES FOR ENERGY
DEMOCRACY. WITH A QUICKER
IMPLEMENTATION OF THE A B 23 16
COMMUNITY SOLAR AND STORAGE
PROGRAM AT THE PUC PROJECTS
COULD LIKELY BE DEPLOYED BY 2024
2025 OFFSET THE NEED TO KEEP
ONCE THROUGH COOLING GAS PLANTS
ONLINE. CALIFORNIA SHOULD ALSO
INVEST MORE IN VEHICLE TO GRID
INTEGRATION AND THERMAL STORAGE
, WHICH WILL BECOME EASIER TO DO
WITH THE INFLUX OF FEDERAL FUNDS
COMING IN AND LASTLY, WE CAN
INCREASE UTILITY A SCALE CLEAN
ENERGY AND STORAGE PROCUREMENT
AS SOON AS POSSIBLE. A LOT OF
FOLKS TODAY HAVE MENTIONED A
LACK OF A SENSE OF URGENCY FROM
FOLKS THAT ARE CHARGED WITH MANY
RESPONSIBILITIES WHEN IT COMES
TO ENERGY PROCUREMENT. THIS IS
ONE OF THE MORE OBVIOUS
SOLUTIONS YET THERE HAVE BEEN SO
MANY BARRIERS TO IT THAT HAVE
BEEN DISCUSSED. AND THE
INTEGRATED RESOURCE PLAN
PROCEEDING. THE COMMISSION IS
REQUESTING INPUT RIGHT NOW TO
INFORM A NEW, RELIABLE AND CLEAN
POWER PROCUREMENT PROGRAM. AH
AGREES THAT THIS KIND OF PROGRAM
IS NEEDED AND WE URGE THAT IT BE
SET UP IN A WAY THAT ENSURES
LOADS ARE SERVING ENTITIES
PROCURE ENOUGH TO MEET THE
STATE'S AIR QUALITY CLIMATE AND
EQUITY GOALS. ADDITIONALLY THE
COMMISSION SHOULD STUDY
RESOURCES AND TRANSMISSION NEEDS
IN LOCAL AREAS AND ENSURE LOAD
SERVING ENTITIES DO MORE
TARGETED LOCAL CLEAN ENERGY
PROCUREMENT. TO ENABLE THE
RETIREMENT OF FOSSIL FUEL PLANTS
NEAR EJ COMMUNITIES. THERE HAS
BEEN A BIG DISCONNECT BETWEEN
LOCAL PROCUREMENT AND, UM,
SYSTEM WIDE PROCUREMENT. SO IN
COMMENTS SUBMITTED EARLIER THIS
MONTH OF SEVERAL PARTIES
RECOGNIZED TO THE COMMISSION
SORRY. SEVERAL PARTIES
RECOGNIZED THE NEED FOR THE
COMMISSION TO PRIORITIZE ENDING
RELIANCE ON GAS RESOURCES AND
LOCAL AREAS THROUGH STUDYING
WHAT KIND OF RESOURCES AND
TRANSMISSION IS REALLY NEEDED.
AND FINALLY, CALIFORNIA SHOULD
INCREASE INTERAGENCY
COORDINATION. UM NOTHING NEW
THAT WE HAVEN'T TALKED ABOUT
ALREADY, BUT ALSO PLAN AHEAD SO
THAT WE MAXIMIZE BENEFITS AND
REDUCE HARMS FOR EJ COMMUNITIES.
IN REGARDS TO ENERGY PROCUREMENT
PLANNING AHEAD IS ESPECIALLY
IMPORTANT FOR LARGER PROJECTS.
BUT IN GENERAL, MORE CORONATION
AND EARLIER PLANNING SHOULD BE
APPLIED TO ALL ENERGY TRANSITION
MATTERS SO THAT WE'RE NOT
WASTING MORE TIME AND MORE MONEY
INTO AGING, POLLUTING POLLUTING
INFRASTRUCTURE THAT WILL HAVE TO
RETIRE ANYWAY. TO CLOSE.
CALIFORNIA CANNOT RELY ON
APPROACHES THAT CONTINUE A
LEGACY OF ENVIRONMENTAL RACISM
INSTEAD OF TURNING TO GAS,
DIESEL, NUCLEAR HYDROGEN, BIOGAS
AND CCS WE CAN AND MUST INVEST
IN AND SCALE UP CLEAN AND
DISTRIBUTED ENERGY, ENERGY
EFFICIENCY AND DEMAND RESPONSE
THAT INCREASED THE RELIABILITY
OF THE GRID AND STRENGTHEN. UH,
THE RESILIENCE OF OUR
COMMUNITIES. THANK YOU. THANK
YOU. UM NEXT, WE HAVE MATT
FRIEDMAN FROM THE UTILITY REFORM
NETWORK. THANK YOU. UM IT'S
GREAT TO BE HERE TODAY. MY NAME
IS MATT FRIEDMAN. I'M A STAFF
ATTORNEY WITH THE UTILITY REFORM
NETWORK OR TURN TURN AS AN
INDEPENDENT, NONPROFIT RATEPAYER
ADVOCACY GROUP HERE IN
CALIFORNIA, REPRESENTING THE
INTERESTS OF RESIDENTIAL
CUSTOMERS OF THE INVESTOR OWNED
UTILITIES AND ALL OF THE
UTILITIES, THAT AND LOAD SERVING
ENTITIES SUBJECT TO THE
REGULATORY OVERSIGHT OF THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. UM CALIFORNIA HAS
COMMITTED TO AN AMBITIOUS SET OF
GOALS FOR ITS ENERGY TRANSITION
OVER THE COMING DECADES. WE'VE
HEARD A LOT ABOUT THIS TODAY
FROM THE OTHER WITNESSES, AND
THESE GOALS INCLUDE
DECARBONIZATION TARGETS FOR THE
ELECTRIC SECTOR THAT WILL RESULT
IN OVER 80% OF THE ELECTRICITY
COMING FROM ZERO CARBON
RESOURCES BY 2030 90% BY 2035.
95% BY 2040 AND HOPEFULLY 100%
BY 2045. ALTHOUGH THESE TARGETS
ARE IMPORTANT DRIVERS OF REAL
WORLD ACTIONS THE LEGISLATURE
NEEDS TO RECOGNIZE THAT
SUCCESSFULLY EXECUTING THIS
TRANSITION IS GOING TO REQUIRE A
WHOLE SERIES OF NEAR TERM
ACTIONS TO NAVIGATE A VARIETY OF
CHALLENGES THAT LAY AHEAD, SO I
WANT TO OFFER A FEW THOUGHTS
ABOUT WHAT COMES NEXT AND TO
HIGHLIGHT SOME IMMEDIATE
CONCERNS THAT SHOULD BE
ADDRESSED IN THE COMING YEAR.
THESE CONCERNS INCLUDE
SKYROCKETING RETAIL ELECTRICITY
RATES. DELAYS IN CLEAN
GENERATION PROJECTS COMING
ONLINE THAT'S BEEN DISCUSSED
QUITE A LOT. AND THE INCREASING
DIFFICULTY OF APPLYING RESOURCE
PLANNING OBLIGATIONS TO A WIDE
RANGE OF INDEPENDENT LOAD
SERVING ENTITIES. BUT FIRST I
WANT TO TALK ABOUT THE EMERGING
CRISIS OF AFFORDABILITY AND THE
NEED FOR STATE SUPPORT TO LOWER
ELECTRICITY RATES AS A CORE
ELEMENT OF THE CLEAN ENERGY
TRANSITION. THIS IS A FAMILIAR
STORY. YOU KNOW THAT RATES HAVE
BEEN GOING UP FOR SAN DIEGO GAS
AND ELECTRIC AND P GENIE
RESIDENTIAL RATES ARE UP ALMOST
50% IN THE LAST FIVE YEARS.
THAT'S 50% AND 30% IN JUST THE
LAST TWO YEARS. PUBLIC UTILITIES
COMMISSION WHEN ASKED TO OFFER A
FORMAL PROJECTION. THEY THINK
THAT RATES ARE GOING TO INCREASE
FOR THESE UTILITIES BY 8 TO 9%
PER YEAR FOR THE NEXT FEW YEARS.
BUT WE THINK THAT'S PROBABLY
UNDER PROJECTION, GIVEN THE
OTHER SPENDING THAT'S ON THE
TABLE. AND MEANWHILE, PG AND E
LOW INCOME CUSTOMER RATES HAVE
RISEN OVER 60% SINCE 2017 AND
OVER 40% IN JUST THE LAST TWO
YEARS. SAN DIEGO GAS AND
ELECTRIC THEIR RESIDENTIAL RATES
TODAY, THEIR AVERAGE RATES 37 A
HALF CENTS A KILOWATT HOUR. THAT
MEANS THESE CUSTOMERS ARE PAYING
AMONG THE HIGHEST RETAIL RATES
IN THE NATION. THERE ARE MANY
FACTORS DRIVING RATE INCREASES
IN CALIFORNIA. IT INCLUDES OUT
OF CONTROL UTILITY SPENDING
INVESTMENTS IN GRID HARDENING
AND WILDFIRE MITIGATION
LIABILITY COSTS FOR WILDFIRES.
UM, THE ADOPTION OF ROOFTOP
SOLAR EXCESSIVE UTILITY,
SHAREHOLDER PROFITS AND
GENERALLY THE UNWILLINGNESS OF
STATE REGULATORS TO IMPOSE
SPENDING DISCIPLINE OR HOLD THE
UTILITIES ACCOUNTABLE. BUT THE
RESULTS OF THESE RATE INCREASES
ARE CLEAR. CUSTOMERS ARE
STRUGGLING TO PAY THEIR BILLS,
AND THEY'RE INCREASINGLY FACING
DISCONNECTION FROM BASIC UTILITY
SERVICES. YOU KNOW, AS OF AUGUST
OF THIS YEAR, UM CUSTOMERS OF
THE INVESTOR OWNED UTILITIES
OWED $2 BILLION IN ARREARAGES.
UM AND ALTHOUGH THE STATE DID
APPROPRIATE $1.2 BILLION THIS
YEAR TO COVER THE COSTS, THIS
FUNDING IS SPLIT BETWEEN PRIVATE
AND PUBLIC UTILITIES, AND IT
ONLY COVERS DEBT ACCUMULATED
BETWEEN MARCH 2020 AND DECEMBER
OF 2021. A LARGE PORTION OF THE
CURRENT CUSTOMER DEBT ACTUALLY
FALLS OUTSIDE OF THIS TIMEFRAME.
UM AND MEANWHILE, BETWEEN JULY
AND OCTOBER OF THIS YEAR,
500,000 HOUSEHOLDS SERVED BY THE
MAJOR INVESTOR OWNED UTILITIES
RECEIVED SHUT OFF NOTICES.
THAT'S A MILLION AND A HALF
CALIFORNIA RESIDENTS WHO HAVE
BEEN THREATENED WITH TERMINATION
OF ELECTRICITY AND GAS SERVICE
BECAUSE THEIR MONTHLY BILLS HAVE
SIMPLY SKYROCKETED AND WINTER IS
COMING. AND THIS MEANS WE'RE
EXPECTING AN AVALANCHE OF
SHUTOFFS COME LATER IN THE
WINTER. UM, THE ADDITIONAL
CONSEQUENCE OF SPIRALING
ELECTRICITY RATES IS THE IMPACT
ON BUILDING AND TRANSPORTATION
GOALS. I'M SORRY BUILDING AND
TRANSPORTATION ELECTRIFICATION
GOALS. EXTREMELY HIGH RATES
UNDERMINE EFFORTS TO PERSUADE
CUSTOMERS TO SWITCH FROM GAS
FIRED FURNACES TO ELECTRIC HEAT
PUMPS AND FROM GASOLINE POWERED
VEHICLES TO ELECTRIC VEHICLES.
SO WHAT ARE THE SOLUTIONS?
THAT'S A LOT OF BAD NEWS. WELL,
PART OF THE SOLUTION INVOLVES
FINDING OTHER SOURCES OF MONEY
TO PAY FOR A LOT OF THESE POLICY
PROGRAM AND RELIABILITY
OBJECTIVES. UM THIS YEAR FOR
MANY YEARS TURN HAS BEEN URGING
THE LEGISLATURE TO SUPPORT OUR
CLEAN ENERGY TRANSITION WITH
TAXPAYER FUNDS TO REDUCE THE
BURDEN ON RATEPAYERS. UM AND
THIS IS CRITICAL BECAUSE THE
ENTIRE COST PUTTING THE ENTIRE
COST OF THIS TRANSITION ON
RATEPAYERS IS SIMPLY
UNSUSTAINABLE. IT'S ECONOMICALLY
REGRESSIVE AND AGAIN, IT WOULD
FRUSTRATE OUR ABILITY TO PROMOTE
OTHER STATE POLICIES LIKE
TRANSPORTATION AND BUILDING
ELECTRIFICATION. UM, COLLECTING
FUNDING FOR THESE PROGRAMS VIA
INCOME TAXES IS, UM,
FUNDAMENTALLY MORE ECONOMICALLY
PROGRESSIVE THAN USING
ELECTRICITY RATES AND
RECOGNIZING THAT THE LEGISLATURE
THIS YEAR PAST HISTORIC FIVE
YEAR $7.9 BILLION PACKAGE TO
SUPPORT, ENERGY, RELIABILITY,
DEBT RELIEF AND CLEAN ENERGY
INVESTMENTS AND THEN AS PART OF
THE SB 8 46 PACKAGE INVOLVING
DIABLO CANYON, THERE WAS A
COMMITMENT. TO MAKE AN
ADDITIONAL BILLION DOLLAR
INVESTMENT TO SUPPORT A CLEAN
ENERGY RELIABILITY INVESTMENT
PLAN. THIS LEVEL OF FUNDING IS
UNPRECEDENTED, AND IT HAS THE
POTENTIAL TO ACCELERATE THIS
TRANSITION. HELP SHORE UP GRID
RELIABILITY AND REDUCE THE
BURDENS ON ELECTRICITY CUSTOMERS
. THIS ASSUMES, OF COURSE, THAT
THE FUNDS ARE SPENT WISELY AND
THAT THE FUNDS ARE SPENT TO HELP
TRANSITION US AWAY FROM FOSSIL
FUELS. UM AND CERTAINLY WE SHARE
THE CONCERNS THAT
ASSEMBLYMEMBER'S TING HAS RAISED
ABOUT THE DWR STRATEGIC
RELIABILITY RESERVE AND WHETHER
THIS MONEY IS BEING SPENT NOT TO
PROMOTE THE TRANSITION, BUT
INSTEAD TO BUY A BUNCH OF DIESEL
GENERATORS. UM AND TO SUPPORT
CONTINUED OPERATION OF GAS
PLANTS. IS THAT THE WISEST USE
OF THE MONEY? WELL FOR THE REST
OF THE MONEY. UM, AS MANY OF YOU
KNOW ABOUT A THIRD OF IT IS
SUPPOSED TO OCCUR IN FUTURE
BUDGET YEARS. UM AND THESE
INVESTMENTS ARE CRITICAL TO THE
SUCCESS OF MANY OF OUR 2030
GOALS. SO AS WE HEAD INTO 2023,
WHICH WE UNDERSTAND TO BE A MUCH
MORE LEAN BUDGET YEAR COMING UP
. IT'S REALLY IMPORTANT THAT THE
FUNDING COMMITMENTS MADE THIS
YEAR ARE HONORED. IF COMMITMENTS
ARE NOT HONORED, AND IF AND IF
AUTHORIZED FUNDS OR FUNDS THAT
HAVE BEEN PROMISED, AND
LEGISLATION AREN'T APPROPRIATED.
IT'S GOING TO SIGNIFICANTLY
HAMPER OUR PROGRESS IN ACHIEVING
A VARIETY OF THESE OBJECTIVES.
UM WHAT CAN WE DO BEYOND WHAT
HAPPENED THIS YEAR? WELL, THE
LEGISLATURE SHOULD FOLLOW THESE
ACCOMPLISHMENTS BY CREATING
DURABLE MECHANISMS FOR FUNDING
THE STATE'S COMMITMENTS IN THIS
AREA. IN 2022, THERE WAS A
CONSIDERATION OF A CLIMATE IN
EQUITY TRUST FUND IN SENATE BILL
10 20, AUTHORED BY SENATOR LAIRD
THAT WOULD HAVE BEEN ABLE TO
CHANNEL VARIOUS SOURCES OF
MONEY. TO REDUCE ELECTRICITY
RATES. IT'S DESIGNED TO BE A
LONG TERM STRUCTURE TO HELP
RATEPAYERS OUT AND ALL THE TRUST
WASN'T INCLUDED IN THE FINAL
VERSION OF THE BILL THAT WENT TO
THE GOVERNOR. WE THINK THAT THIS
ISSUE AND THIS CONCEPT DESERVES
CONTINUED CONVERSATION. UM OTHER
SOURCES OF MONEY INCLUDE FEDERAL
FUNDS IN THE LAST TWO YEARS, THE
FEDERAL GOVERNMENT HAS
APPROPRIATED UNPRECEDENTED
AMOUNTS OF MONEY TO SUPPORT
CLEAN ENERGY, THE 2021
INFRASTRUCTURE INVESTMENT AND
JOBS ACT AND THE 2022 INFLATION
REDUCTION ACT. INFLATION
REDUCTION ACT HAS $7 BILLION,
FOR EXAMPLE, TO SUPPORT
DISTRIBUTED RENEWABLE ENERGY
INSTALLATIONS AND LOW INCOME AND
DISADVANTAGED COMMUNITIES. UM
WE'D LIKE TO GET A SHARE OF THAT
MONEY. WE'D LIKE TO GET A SHARE
OF ALL THE MONEY THAT'S BEEN
APPROPRIATED AND SO CALIFORNIA
AS A NEAR TERM ACTION ITEM NEEDS
TO BE AGGRESSIVE IN SECURING ITS
SHARE OF FEDERAL FUNDS THAT CAN
REDUCE THE BURDEN BOTH ON THE
STATE'S TAXPAYERS. AND IT'S
RATEPAYERS. AND UNLESS THE STATE
ACTS QUICKLY, WE MAY LOSE THE
OPPORTUNITY TO GET SOME OF THIS
MONEY. THERE ARE A LOT OF
DEADLINES COMING UP. THE STATE
NEEDS TO HAVE FUNCTIONING
PROGRAMS. UM, AND THE TIGHT
TIMELINES ARE SOMETHING THAT
EVERYONE NEEDS TO KEEP THEIR
EYES ON. SEPARATELY FROM THESE
FUNDING EFFORTS, WE AGREE WITH
THE COMMENTS THAT HAVE BEEN MADE
EARLIER ABOUT THE BARRIERS TO
DEPLOYMENT OF CLEAN ENERGY
INFRASTRUCTURE. MR BECKEL HAD
SOME VERY INTERESTING
OBSERVATIONS ABOUT THE DELAYS IN
THE TIME FOR NEW TRANSMISSION
PROJECTS TO COME ONLINE AND HOW
THAT'S CREATING A CASCADING
EFFECT FOR GENERATION. UM, WE'RE
ALSO SEEING COST INCREASES FOR
GENERATION AND MR SCALLOP FROM
THE PIECE FROM THE PUC SORT OF
MENTIONED SOME OF THE SUPPLY
CHAIN ISSUES THAT ARE GOING ON
THERE. UM AND DEVELOPMENT
DELAYS. AS WE SEE IT FOR NEW
CLEAN RESOURCES ARE INCREASINGLY
TIED TO THE SLOW PACE OF
TRANSMISSION. INTERCONNECTION UM
, AND THIS IS THE RESULT OF BOTH
A SUB OPTIMAL PROCESS. UM, KIND
OF SLOW WALKING BY THE I O U. S
AND FUNDAMENTAL CONSTRAINTS ON
TRANSMISSION CAPACITY. UM, FERC
IS TAKING A LOOK AT THIS. THE
FEDERAL ENERGY REGULATORY
COMMISSION. THEY'VE COME UP WITH
A SET OF PROPOSALS FOR REFORMING
THE INTERCONNECTION PROCESS.
IT'S NOT CLEAR HOW THAT WILL
INTERFACE WITH WHAT THE
CALIFORNIA S O HAS ALREADY DONE
AND IS DOING. HOPEFULLY
CONTINUED IMPROVEMENTS. THERE
WILL DEAL WITH SOME OF THOSE, UH
SOME OF THOSE BLOCKAGES THAT ARE
CREATING THESE ENDLESS DO LOOPS.
BUT ONE OF THE PROBLEMS IS JUST
NOT ENOUGH TRANSMISSION. FOR
EXAMPLE, THERE'S STILL NO VIABLE
PATH FOR GEOTHERMAL IN THE
SALTON SEA TO DELIVER THEIR
OUTPUT TO THE REST OF CALIFORNIA
. UM THE PUC, UM, RECENTLY
DIRECTED ALL OF THE ENTITIES
UNDER ITS JURISDICTION TO GO OUT
AND BUY 1000 MEGAWATTS, AT LEAST
OF CLEAN, FIRM RENEWABLE
CAPACITY, WHICH IS A GATEWAY FOR
BUYING SALTON SEA GEOTHERMAL. SO
FAR, NO SALTON SEA GEOTHERMAL
HAS BEEN BOUGHT UNDER THIS
PROGRAM. WE HAVEN'T SEEN THE
FULL RESULTS. FOLKS ARE OUT
THERE BUYING, BUT SO FAR THE
WORD IS THAT THE DEVELOPERS
AREN'T ABLE TO GET ADEQUATE
TRANSMISSION AND GUARANTEES THAT
IT WILL BE BUILT ON TIME. AND SO
WE'RE SORT OF STUCK IN THE SAME
PLACE. MEANWHILE, THE CALIFORNIA
IS SO TALKED ABOUT THEIR 20
YEAR. OUTLOOK TODAY. FORECASTING
NEED FOR $30 BILLION IN
TRANSMISSION INVESTMENTS. UM
IT'S NOT CLEAR WHO'S GOING TO
BUILD THIS TRANSMISSION. HOW TO
ALIGN THE TIMING OF THE
TRANSMISSION WITH NEW GENERATION
LAST YEAR, SENATOR BECKER
AUTHORED SB 10 32, WHICH WOULD
HAVE ESTABLISHED A CLEAN ENERGY
INFRASTRUCTURE AUTHORITY TO
FINANCE DEVELOPMENT OAN. CLEAN
ENERGY INFRASTRUCTURE, INCLUDING
TRANSMISSION FACILITIES, AND WE
THINK THAT THIS KIND OF APPROACH
IS WORTHY OF ADDITIONAL
CONSIDERATION. UM ONE OF THE KEY
REASONS IS THAT TRANSMISSION IS
EXPENSIVE. IT'S NOT JUST
EXPENSIVE TO BUILD. IT'S
EXPENSIVE TO OWN, ESPECIALLY
WHEN A UTILITY OWNS IT. WHY
BECAUSE THEY'RE GETTING A RETURN
ON THEIR INVESTED SHAREHOLDER
EQUITY AND THEIR DEBT. AND THE
FEDERAL ENERGY REGULATORY
COMMISSION HAS BEEN QUITE
GENEROUS AND OFFERING VERY
LUCRATIVE RETURNS. WELL, WHAT'S
THE WHAT'S THE ALTERNATIVE? THE
ALTERNATIVE IS USING PUBLIC
SECTOR DEBT. STATE FINANCING.
IT'S JUST MATH. YOU BRING DOWN
THE COST THIS WAY. UM NOW THE
UTILITIES DON'T LIKE THIS
APPROACH BECAUSE IT DOES
THREATEN THEIR PROFITS. BUT
LOOKING AT IT FROM THE CONSUMER
PERSPECTIVE, I THINK THE STATE
NEEDS TO TAKE A VERY CREATIVE
AND AMBITIOUS APPROACH TO
THINKING ABOUT HOW PUBLIC SECTOR
DEBT CAN BE USED. TO FINANCE
MANY OF THESE NEW BIG
INFRASTRUCTURE EDITIONS TO MAKE
IT CHEAPER FOR ALL OF THE
CUSTOMERS. UM AND THEN IN
ADDITION TO THE TRANSMISSION
SIDE, WE HAVEN'T TALKED ABOUT
THE DISTRIBUTION SIDE, WHICH IS
FULLY STATE JURISDICTIONAL, BUT
THERE ARE CONCERNS THAT NEW
INTERCONNECTIONS AT THE
DISTRIBUTION SYSTEM LEVEL ARE
BEING HUNG UP. THERE'S BEEN
RECENT COVERAGE OF CONCERNS BY
FRED AND FOLKS IN FRESNO ABOUT
THEIR INABILITY TO CONNECT NEW
CUSTOMERS TO THE PGD SYSTEM. AND
THEIR INABILITY OF CUSTOMERS TO
ELECTRIFY AND TO GET THOSE
CONNECTIONS. UM I THINK THE
LEGISLATURE MAY WANT TO FOCUS ON
DISTRIBUTION INTERCONNECTION
ISSUES IN THE COMING YEAR. SINCE
THESE PROCESSES ARE TOTALLY
WITHIN THE CONTROL OF STATE
AGENCIES, UM AND THERE MAY BE
THE NEED FOR NEW NEW REPORTING
REQUIREMENTS AND METRICS AND
PRIORITIZATION. UM BUT THE
DISTRIBUTION SYSTEM IS WHERE
THERE'S A LOT OF ACTION RIGHT
NOW FOR DEVELOPMENT OF SMALL
SCALE PROJECTS, AND CERTAINLY A
LOT OF THE OTHER STUFF THAT'S ON
THE AGENDA. I'M SO SWEET OF
INITIATIVES TO ADDRESS
TRANSMISSION AND DISTRIBUTION
CAPACITY. UM, FINANCING AND
INTERCONNECTION ISSUE SHOULD BE
UP FOR CONSIDERATION. FINALLY I
JUST WANT TO NOTE THE CHALLENGE
OF ALIGNING THE STATE'S PLANNING
GOALS WITH THE PROCUREMENT
PROCESSES OF ALL OF THE LOAD
SERVING ENTITIES. SO WE SEE A
LOT OF STUDIES. UH CAN STATE
AGENCIES ARE PUBLISHING REPORTS
IDENTIFYING THE OPTIMAL RESOURCE
MIX? FOR ACHIEVING OUR LONG TERM
DECARBONIZATION AND CLEAN ENERGY
GOALS. LOT OF MODELING WORK HAS
BEEN DONE, BUT IS THIS WHAT THE
FUTURE IS ACTUALLY GOING TO LOOK
LIKE? IS IT GOING TO BE
EFFICIENT AND OPTIMIZED ON A
STATEWIDE BASIS, JUST LIKE YOU
DO IN A MODEL OR IS IT GOING TO
BE UNCOORDINATED, INEFFICIENT
AND NEEDLESSLY COSTLY? SO HOW
SHOULD THE STATE ENSURE THAT THE
PROCUREMENT DONE BY DOZENS OF
LOAD SERVING ENTITIES MAKES
SENSE AND THAT IT'S WORKING
COLLECTIVELY TO ACHIEVE OUR
SHARED GOALS? THE PRIMARY
OVERSIGHT OF PROCUREMENT REALLY
JUST OCCURS AT THE PUC, AND IT
ONLY APPLIES TO THE PRIVATE
UTILITIES AND THE COMMUNITY
CHOICE AGGREGATORS ELECTRIC
SERVICE PROVIDERS. IT'S THROUGH
THE RENEWABLE PORTFOLIO STANDARD
PROGRAM. INTEGRATED RESOURCE
PLANNING AND THE RESOURCE
ADEQUACY PROGRAM, BUT THE
PRIMARY TOOL FOR NEW RESOURCE
DEVELOPMENT, IT'S THE INTEGRATED
RESOURCE PLANNING PROGRAM IN THE
PUC IS DOING A BLUE SKY. REFRESH
ON THAT RIGHT NOW TRYING TO
THINK ABOUT HOW WOULD THEY
REDESIGN THE PROGRAM TO MAKE IT
WORK BETTER? ONE OF THE ISSUES
IS HOW DO YOU DEAL WITH LONG
LEAD TIME? RESOURCES THAT ARE
KIND OF LUMPY. YOU CAN ONLY
BUILD THEM IN FIXED QUANTITIES,
AND IF IT REQUIRES NEW
TRANSMISSION, IT'S NOT CLEAR
THAT ANYBODY HAS FIGURED THIS
OUT AND SPECIFICALLY, THE PUC.
FOR EXAMPLE, IF THE STATE'S
GOING TO MOVE FORWARD WITH
OFFSHORE WIND, WHICH HAS BEEN A
TOPIC OF A LOT OF CONVERSATION
HERE, COORDINATED PROCUREMENT,
MAYBE ESSENTIAL, HOW'S THAT
GOING TO OCCUR? DOES IT MAKE
SENSE TO ASSIGN FRACTIONAL
SHARES OF A SINGLE PROJECT? TOO
MANY, MANY BUYERS, OR WOULD IT
BE PREFERABLE TO SIGN THE ENTIRE
OBLIGATION TO A CENTRAL BUYER?
THAT CAN NEGOTIATE A MASTER
CONTRACT. BèC MAY OR MAY NOT
HAVE THE STATUTORY TOOLS THAT
NEEDS TO ENSURE THAT THE LOAD
SERVING ENTITIES COMPLY WITH ITS
PROCUREMENT REQUIREMENTS. UM AND
WE THINK THAT THE OPTION OF
ASSIGNING SOME OF THESE LONG
LEAD TIME RESOURCES TO A CENTRAL
BUYER SHOULD BE ON THE TABLE. UM
AND FINALLY, THERE IS A PUBLICLY
OWNED UTILITIES, UH, THAT ARE
OVERSEEN BY THE ENERGY
COMMISSION. BUT THEY ARE NOT
DIRECTLY REGULATED EXCEPT FOR
THE RENEWABLE PORTFOLIO STANDARD
PROGRAM. AND WHILE SOME PEOPLE
US ARE HEADING IN THE RIGHT
DIRECTION, AND THEY'RE DOING
GREAT WORK AS LEADERS, OTHERS
ARE FALLING BEHIND. UM IN
SUMMARY. WE GOT MAJOR MAJOR
AFFORDABILITY CHALLENGES. WE'VE
GOT TO FIND OTHER SOURCES OF
MONEY TO SUPPORT THIS TRANSITION
. WE HAVE BIG NEAR TERM BARRIERS
TO CLEAN RESOURCE DEPLOYMENT
THAT WE NEED TO BE LOOKING AT.
WE HAVE MORE QUESTIONS THAN
ANSWERS AT THIS POINT. AND
FINALLY, WE HAVE UNCLEAR
RESPONSIBILITY FOR ENFORCING
PLANNING GOALS AND FOR AND WE
HAVE FRAGMENTED DECISION MAKING
OCCURRING BY INDIVIDUAL BUYERS.
UM SO WITH THAT TALL ORDER IN
FRONT OF US, WE LOOK FORWARD TO
WORKING WITH THE AGENCIES AND
WITH THE LEGISLATURE AND OTHER
STAKEHOLDERS TO TRY TO FIND OUR
WAY THROUGH THIS AND WE ARE
TOTALLY COMMITTED TO GETTING TO
OUR 2030 GOALS AND BEYOND. IT'S
JUST GOING TO BE A LOT OF WORK.
THANK YOU. THANK YOU TO ALL OF
YOU ON THIS PANEL. UM NEXT, I'LL
OPEN IT UP TO QUESTIONS FROM OUR
COMMITTEE MEMBERS. MR FONG. I
DON'T HAVE ANY SPECIFIC
QUESTIONS. I WOULD JUST, UH THIS
ONE A, I GUESS, SAY AS SOMEONE
WHO REPRESENTS ENERGY CAPITAL,
CALIFORNIA. I THINK SOME OF THE
TESTIMONY IS SOME WHAT EITHER
INACCURATE, UM OR JUST KIND OF
INFLAMMATORY, UM COUNTY PRODUCES
70% CALIFORNIA'S OIL PRODUCED
76% OF CALIFORNIA NATURAL GAS
PRODUCED 60. CALIFORNIA'S
RENEWABLE ENERGY. AND SO NONE OF
THE GOALS THEY'VE OUTLINED AND
THIS AND THIS HEARING CAN BE CAN
BE MET WITHOUT US. SO ALL I'M
ASKING IS FOR ALL OF YOU ON THIS
PANEL TO BE PRAGMATIC. WE HAVE
TO KEEP THE LIGHTS ON. AND WE
HAVE TO ENSURE, AS THE CHAIR
SAYS, THE WELL BEING OF LOW
INCOME FAMILIES AND FAMILIES
STRUGGLING CALIFORNIA TO KEEP
THE TO PAY FOR THE ELECTRICITY
BILLS. YEAH, I KNOW. BY THE WAY
, THEY'RE GONNA FLY AROUND AND
THEY'VE GOT TO TAKE THEIR KIDS
TO SCHOOL, AND THAT REQUIRES
THEM TO PUT FUEL IN THEIR CARS.
AND SO THERE'S A FALSE CHOICE
HERE WHEN WE CAN BE PRAGMATIC
ABOUT HOW WE POWER, CALIFORNIA.
AND WHO WHICH IS NOW THE FOURTH
LARGEST ECONOMY IN THE WORLD.
AND SO ALL I WOULD SAY IS THAT
IF YOU'RE GOING TO MODEL ENERGY
POLICY IN CALIFORNIA, YOU SHOULD
DO IT ALL. AND THAT INCLUDES, UM
PETROLEUM AND NATURAL GAS
BECAUSE RIGHT NOW, IF YOU LOOK
AT CARLA ISOS WEBSITE, 33% OF
THE POWER BEING GENERATED RIGHT
NOW IS NATURAL GAS. AND SO WE
HAVE A MATH PROBLEM HAS
INDICATED BEFORE. HOW DO YOU
MAKE UP THE DIFFERENCE, AND
THAT'S WHY THE APPLICATION WAS
EXTENDED. THAT'S WHY THE. THE
ENERGY COMMISSION IS CREATING
THE STRATEGIC RESERVE IS BECAUSE
WE LIVE IN REALITY. AND WE HAVE
TO KEEP THE LIGHTS ON. AND
THAT'S ALL I HAVE TO SAY. THANK
YOU. MR TEAM. SO JUST JUST GOING
BACK TO. I MEAN, I THINK THIS
ALL THREE SPEAKERS SORT OF ECHO
THE SAME THING IN TERMS OF
HAVING A HAVING A CLEAN ENERGY
PLAN. MOVING CLOSER TO THE GOAL.
I THINK WHAT WE DIDN'T HEAR WAS
REALLY, UM GREATER DETAILS OF
HOW WE HOW WE DOING? UM. YOU
KNOW, GET JUST GETTING INTO THE
WEEDS. I MEAN THE REASON WE GOT
TO THE STAGE WE DID LAST AUGUST
WASN'T BECAUSE OF, UH BLACK OF
INTENTIONS OR LACK OF DESIRE OF
OUTLINING WHAT ALL THREE OF YOU
SAID. UH IT WAS GETTING TOO. A
LEVEL OF GRANULARITY AND I THINK
I THINK OUR MR FONG KIND OF
MENTIONED THAT IN TERMS OF HOW
TO ACHIEVE IT, RIGHT SO IF YOU
CAN'T FIGURE OUT HOW TO ACHIEVE
IT. YOU STILL NEED TO KEEP THE
LIGHTS ON AND SO BY WHAT WE
DECIDED TO DO WAS, YOU KNOW,
KEEPING THE LIGHTS ON WITH
TEMPORARY DIESEL GENERATORS AND
OTHER TEMPORARY FOSSIL SO I
GUESS GOING BACK TO ALL THREE OF
YOU IF YOU HAVE OTHER INSIGHTS.
I MEAN, YOU KNOW, I DON'T. I
DON'T THINK I DISAGREE WITH
ANYTHING THAT YOU ALL SAID. BUT
IT DIDN'T HAVE MANY DETAILS THAT
COULD REALLY HELP US FIGURE OUT
WHAT TO DO. I MEAN, JUST JUST
GOING BACK TO MR MR BRECKEL
POINT THAT IN AN IDEAL WORLD WE
HAVE WHAT AGENCY IN CHARGE. WE
DON'T HAVE ONE AGENCY IN CHARGE,
BUT WE ACTUALLY HAVE I THINK YOU
KNOW THE PERSON IN CHARGE AND
THAT THAT'S THE GOVERNOR GOT THE
GOVERNMENT IN CHARGE, AND THE
GOVERNOR'S OFFICE IS IN CHARGE,
AND THEY ARE ACUTELY AWARE OF
THIS ISSUE, AND THEY'RE WORKING
ON AND ALL THE ALL THE AGENCIES
SET UP HERE, WORK FOR THEM.
RIGHT SO, UM I THINK WHAT WE
YEAH. ARE MISSING IS THE
SPECIFICS OF HOW WE. HOW WE
ACHIEVE IT. YOU KNOW HOW MUCH
HOW MUCH STORAGE IS REALLY
REALISTIC TO GET ONLINE THE NEXT
10 10 20 YEARS. UM. YOU KNOW,
FUEL CELLS IS THAT IS THAT YOU
KNOW REAL. AH IN TERMS OF
TECHNOLOGY, AND CAN WE SCALE IT
IN TERMS OF, UM YOU KNOW,
NATURAL GAS, HOW MUCH OF WHAT WE
NEED, AND I KNOW THAT THERE'S
MORE ENERGY EFFICIENT AND THAT'S
WHAT NATURAL GAS COMING ONLINE
AS WELL. SO ALL OF THESE THINGS,
I MEAN, I THINK THAT THE HIGH
LEVEL. IS NOT WHAT THIS HEARING
IS SUPPOSED TO BE ABOUT. THIS
HEARING IS REALLY ABOUT GETTING
DOWN TO BRASS TACKS AND GETTING
DOWN TO DETAILS. ON WHAT DO WE
NEED TO DO, BECAUSE THAT'S
ULTIMATELY THE DECISION. THAT WE
HAD TO MAKE IN AUGUST, WHICH WAS
NOT AN IDEAL DECISION. YOU KNOW
, KEEPING THE OTC S GOING
KEEPING DIABLO GOING? UM, YOU
KNOW, THE STRATEGIC RESERVE FROM
THE PREVIOUS YEAR, REALLY
LOOKING AT DIESEL GENERATION
THAT THAT WAS NOT REALLY THAT
THAT'S THE OPPOSITE OF THE
DIRECTION THAT WE HAVE CHARTED.
SO I THINK UNTIL YOU CAN COME
FORWARD WITH SOME GREATER
SPECIFICITY. UH, YOU KNOW, I CAN
AGREE WITH YOUR COMMENTS, BUT IT
DOESN'T GET US ANY CLOSER TO
ACHIEVING OUR GOALS. SO FEEL
FEEL FREE TO RESPOND IF YOU'D
LIKE, BUT THAT'S JUST BROAD
BROAD POINT FOR ALL THREE OF
YOU. I THINK, UH, YOU'VE ASKED.
HOW MUCH OF A RESOURCE DO WE
NEED TO GET TO A PARTICULAR SET
OF GOALS? THAT WAS ONE OF THE
THINGS THAT YOU MENTIONED?
ASSEMBLY MEMBER? THE MODELING
WE'VE DONE IS MORE THAN ADEQUATE
. IN FACT, WE SEEM TO BE SO IN
LOVE WITH MODELING. WE SPEND
MOST OF OUR TIME DOING THE
FORECASTING AND NOT ENOUGH TIME
DOING THE ACTUAL HEAVY LIFTING
IN THE WORK. THE WAY TO FIND OUT
HOW MUCH RESOURCES AVAILABLE TO
START DIRECTING ENTITIES TO GO
BUY IT OR TO HAVE THE STATE GO
OUT THERE AND TAKE THE LEAD IN
DOING THAT TYPE OF PROCUREMENT.
THAT'S HOW YOU KNOW NOW IS DW
ARE GOING TO BE THE LEADING EDGE
OF THIS. ARE THEY ACTUALLY GOING
TO GO OUT AND BUY ENERGY STORAGE
? OR ARE THEY GOING TO FOCUS ON
RESOURCES THAT THEY HOPE TO
NEVER USE? WHICH I FIND IS A
SOMEWHAT OF A QUESTIONABLE
STRATEGY. I WOULD THINK WE'D
WANT TO USE PUBLIC MONEY TO BUY
RESOURCES THAT WE PLAN ON USING
ALL THE TIME. WOULD SEEM TO BE A
BETTER WAY TO DO THIS. UM, SO I
THINK THAT THE ANSWER IN THE
NEAR TERM IS TO START SIMPLY
DOING MORE. THIS MIGHT NOT BE A
VERY SATISFYING AND PRESCRIPTIVE
AND SPECIFIC UM, RECOMMENDATION
, BUT DOING MORE IMMEDIATELY IS
PROBABLY THE FIRST THING WE WANT
TO DO, RATHER THAN DOING A LOT
MORE STUDYING OF WHAT KIND OF
RESOURCES MAY OR MAY NOT BE
AVAILABLE. UM THE SECOND THING
I'M GONNA SAY IS ON THE
TRANSMISSION ISSUE AND THE
INTERCONNECTION. UM I DO THINK
IT'S A COMPLICATED ISSUE AND
PART OF WHAT WE'RE NOT SEEING
YET. ARE THE PINCH POINTS THAT
NEED TO BE FIXED. UM AND I THINK
A DEEPER DIVE INTO WHAT THOSE
PINCH POINTS ARE AND HOW TO
SOLVE THEM. IS IT THE UTILITIES
THAT ARE SLOW WALKING THERE
BASICALLY DIVERTING PERSONNEL TO
WORK ON OTHER PROJECTS LIKE
WILDFIRE MITIGATION? UM I CAN'T
SIT HERE TODAY AND TELL YOU THAT
I HAVE THE ANSWER. I CAN TELL
YOU THAT IT'S A GOOD QUESTION.
THAT WE NEED TO LOOK AT. UM WHAT
IS THE CASE SO NEED TO DO TO FIX
ITS QUÊ PROCESS? UM SO THAT WE
CAN MOVE FORWARD. I'M NOT SURE.
UM BUT I ALSO THINK THAT
INCREASED EMPHASIS ON THAT
QUESTION IS WORTHY OF OUR
CONSIDERATION. SO I AM SORRY
THAT WE DON'T HAVE THE SILVER
BULLETS HERE. I THINK WE'RE JUST
TRYING TO POINT YOU
DIRECTIONALLY INTO WHAT THE
HURDLES LOOK LIKE AND WHERE
EVERYBODY NEEDS TO FOCUS THEIR
ATTENTION GOING FORWARD. YEAH, I
THINK, UM CALISTO DOESN'T KNOW
WHAT YOU KNOW WHAT WHAT? WHAT TO
DO TO FIX THE PROBLEM, EITHER.
THAT WAS CLEAR. UM GOING BACK TO
YOUR POINT ABOUT DOING MORE. SO
YOU'RE SAYING THAT THE STATE
SHOULD GET INVOLVED IN THE
ENERGY PROCUREMENT BUSINESS AND
WE SHOULD BE AH, BECAUSE BECAUSE
TRADITIONALLY WE HAVE IT RIGHT.
LIKE YOU SAID, PART OF OUR
STRATEGIC RESERVE IT JUST TO
HAVE A RESERVE. UM ABED, YOU ARE
YOU SAYING THAT YOU RECOMMEND
THE STATE GETTING INTO THE
ENERGY SUPPLY BUSINESS? SORRY
THE STATE HAS BEEN IN THE ENERGY
PROCUREMENT BUSINESS SINCE THE
2000 CRISIS THROUGH DWR RIGHT.
THEY WERE THRUST INTO IT IN THE
MIDDLE OF THE EMERGENCY, AND
THEY STEPPED UP AND DID A BUNCH
OF CONTRACTING. I'M NOT
SUGGESTING THAT DWR IS THE BEST
VEHICLE FOR THIS POINTING OUT
THAT THERE ARE TWO WAYS TO DO
IT. ONE IS YOU ORDER ALL OF THE
LOAD SERVING ENTITIES IN THE
BUYERS OUT THERE. TO GO BUY
THINGS. THE ALTERNATIVE IS YOU
DO IT YOURSELF AS THE STATE AND
I'M NOT SURE THAT THE STATE HAS
MADE THAT CHOICE OR FIGURED OUT
HOW TO NAVIGATE THE TENSION
BETWEEN THOSE TWO POLES. BèC HAS
ORDERED LOAD SERVING ENTITIES TO
GO OUT AND BUY STUFF, BUT IS IT
ENOUGH? IS THAT THE RIGHT STUFF?
UM WE'RE GETTING SOME
INFORMATION YET ABOUT SO FAR
ABOUT WHAT'S COMING IN PROJECTS
ARE GETTING DELAYED. MORE NEEDS
TO BE DONE. THERE'S KIND OF A
BLACK HOLE IN TERMS OF PUBLICLY
OWNED UTILITIES AND WHAT THEY'RE
DOING, MEANING THE INFORMATION
ISN'T AS READILY AVAILABLE FROM
A CENTRALIZED SOURCE. SO IF
WE'RE GOING TO DO MORE, WE
SHOULD BE DOING MORE SOONER. UM
AND IF THE STATE DOES WANT TO
PLAY WITH STATE MONEY THROUGH
DWR MONEY THAT HAS PERHAPS
ALREADY BEEN APPROPRIATED BY THE
LEGISLATURE, UM, I THINK
FOCUSING ON THAT ON THE HIGHEST
VALUE SOLUTIONS THAT SUPPORT THE
CLEAN ENERGY TRANSITION IS
SOMETHING WORTH THINKING ABOUT.
AND I'M IT WOULD BE GREAT TO
HAVE DWR HERE TODAY, FOR EXAMPLE
, TO TALK ABOUT WHAT THEY'RE
DOING AND ANSWER SOME OF THESE
QUESTIONS. I WOULD JUST ADD THAT
I TOTALLY AGREE. I REALLY THINK
THE MAIN MESSAGE FROM ME IS THAT
WE NEED TO MOVE FROM A REACTIVE
POSTURE TO A PROACTIVE POSTURES
. SO IT'S ABOUT LOOKING AHEAD
FAR ENOUGH AND PROCURING ENOUGH
SO THAT REASONABLY FORESEEABLE
DELAYS REASONABLY FORESEEABLE
CANCELATIONS OF NEW RESOURCES
ARE ACCOUNTED FOR. IN THE AMOUNT
THAT UTILITIES ARE ASKED TO GO
OUT AND PICK YOUR OR THAT THE
STATE IS COMING IN TO SUPPORT
AND PROCUREMENT ALSO, THERE,
THERE CERTAINLY IS OUR OTHER
STATES THAT TAKE IT MORE. ACTIVE
AND PROACTIVE ROLE IN
TRANSMISSION DEVELOPMENT THAT
THE BILL THAT WAS REFERENCED
EARLIER. CLEAN AIR TASK FORCE
SPONSORED SB 10 32. SENATOR
BECKER'S BILL, AND I DO THINK
THERE IS A PLACE FOR THE STATE
TO BE MORE FORWARD, LEANING ON
TRANSMISSION, ESPECIALLY
TRANSMISSION THAT'S GOING TO
UNLOCK CLEAN ENERGY RESOURCES
THAT WE KNOW THE STATE WILL NEED
AND THAT ARE IN THE MOST IDEAL
PLACES. ALSO TO UNLOCK
TRANSMISSION THAT WILL ALLOW FOR
THINGS LIKE THE OPEN CYCLE. I
WANT THROUGH COOLING TURBINES TO
BE TAKEN OFFLINE. THAT'S
PRINCIPALLY A LOCAL GENERATION
AND TRANSMISSION CHALLENGE THAT
HAS BEEN STUCK FOR A VERY, VERY
LONG TIME BECAUSE OF A REACTIVE
STANCE AND INFRASTRUCTURE AND
PROCUREMENT POLICY. MR FRIEDMAN
IDENTIFIED. UM. OR OR THE NEED
TO STUDY WHAT THE PINCH POINTS
ARE RIGHT IN TERMS OF
TRANSMISSION DEVELOPMENT LIKE
AND YOU LIKE WHAT? YOU SAID.
THERE ISN'T A POINT PERSON WE'VE
ALL WORKED LIKE WHO SHOULD BE
IDENTIFIED WHO SHOULD BE
DIRECTED TO IDENTIFY THOSE PINCH
POINTS AND THE BARRIERS. IN OUR
CURRENT STRUCTURE. SURE IN THE
CURRENT STRUCTURE, I THINK THE
CONSUMER ADVOCATE OF THE PC HAS
DONE A LOT TO IDENTIFY. WHAT
SOME OF THOSE PINCH POINTS MIGHT
BE. I THINK GÓMEZ IS ALSO QUITE
ACTIVE IN THAT WITH THE NEW
RESEARCH, THE NEW FINANCING
AUTHORITIES THAT THEY HAVE I
THINK THEY ARE GOING TO HAVE TO
BECOME PRETTY EXPERT AND HOW TO
GET A TRANSMISSION PROJECT DONE.
SO I THINK THOSE WOULD BE THE
TWO POINTS OF EMPHASIS I WOULD
PLACE NOW. AND YEAH, GO AHEAD.
IF I MAY FOLLOW UP WITH, UH MR
FRIEDMAN. I THINK WHEN WE WERE
DEBATING THE STRATEGIC ENERGY
RESERVE, UH, BEFORE THE BUDGET
COMMITTEE, THERE WAS CERTAINLY A
CONCERN RAYS AND A WARNING TO
THE LEGISLATURE, UM, THAT THE
RESERVE WAS DESIGNED TO
SUPPLEMENT IN TIMES OF
EMERGENCY. IT WAS NOT TO
INTERVENE AND CREATE DISRUPTION
POTENTIALLY IN THE ENERGY
MARKET. AND SO I TOOK THAT, OF
COURSE, WARNING TO HEART. I WAS
WONDERING IF YOU HAD KIND OF A
RESPONSE. UM ANY. I MEAN, JUST
HEARING YOU TALK ABOUT THE FACT
THAT YOU MAY WANT A LITTLE BIT
MORE GOVERNMENT INTERVENTION IN
THE STATE ENERGY MARKET. I WOULD
SAY THAT I WOULD BE HESITANT ON
THAT. BUT I WOULD LIKE TO GET
YOUR PERSPECTIVE. UM, THANK YOU.
ASSEMBLYMEMBER'S UH, I THINK ARE
AT THE TIME. UM WE DID PROVIDE
TESTIMONY TO THE LEGISLATURE ON
THIS CONCEPT. AND AT THE TIME WE
NOTED THAT THE IDEA OF SPENDING
STATE MONEY ON PHYSICAL HARDWARE
THAT NEVER GETS USED AS
QUESTIONABLE. I MEAN, IF YOU'RE
GOING TO GO BUY UP ALL THE
DIESEL GENERATORS AND STICK THEM
IN A WAREHOUSE AND HOPE THAT YOU
NEVER HAVE TO USE THEM WAS THAT
THE WISEST USE OF STATE MONEY
WHEN YOU COULD BE SPENDING IT ON
STUFF THAT YOU'RE ACTUALLY USING
EVERY SINGLE DAY LIKE LIKE
STORAGE. AND THE PROBLEM WITH
STORAGE HAS BEEN THAT PRICES
HAVE ESCALATED, AND THEY HAVE
BEEN SUPPLY CHAIN CONSTRAINTS.
SO MAYBE THE STATE NEEDS TO
OVERPAY FOR STORAGE. BUT MAYBE
YOU END UP GETTING AN ASSET THAT
YOU ACTUALLY USE FOR 10 OR 20
YEARS EVERY SINGLE DAY, EVERY
HOUR OF THE DAY THAT PROVIDES
VALUE TO THE GRID RATHER THAN A
BUNCH OF GENERATORS THAT SIT
DOING NOTHING LITERALLY JUST
WAITING TO BE CALLED ON. I THINK
THAT WAS THE CRITIQUE. UM SO THE
STATES IN IT ONE WAY OR ANOTHER
IF THE LEGISLATURE AGREED TO
APPROPRIATE MONEY, WHICH IT DID
, SO THE QUESTION NOW IS WHAT TO
DO WITH THE MONEY AND HOW TO GET
BEST VALUE OF IT. FROM IT FOR
ALL THE CUSTOMERS IN THE STATE.
UM SO ANYWAY, THAT THAT'S KIND
OF WHERE I WAS GOING. OKAY? BUT
IN TERMS OF THE PROCURE OR THE,
UH, PRODUCTION OF ENERGY THAT
THE GENERAL DYNAMICS OF ALL THE
PLAYERS STILL PRODUCE, I MEAN,
WE DO HAVE ENOUGH UH, HELLO.
BASELINE LOADED MEAN WITH WITH
EVERYTHING WE'VE GOT. WE JUST
NEED TO SUPPLEMENT IT. BUT IN
TERMS OF REPLACEMENT, I'M I'M
ALL FOR THAT. THE NEED FOR MORE
TRANSMISSION LINES. I'M JUST I
GUESS I'M TRYING TO UNDERSTAND
IF YOUR FOCUS IS ON I MEAN, ONE
OF YOUR MISSION MISSION IS THE
RATEPAYER. THEN RIGHT NOW, AS I
INDICATED EARLIER THE RATEPAYER
BECAUSE THE CUSTOMER IS BEING
ASKED TO DO A LOT, AND SO I WAS,
YOU KNOW. AS A AS A AS INDICATED
EARLIER. WE'RE TAKING ASSETS,
ALL ALL FLYING, WHICH YOU
PROBABLY SHOULDN'T IN THE SHORT
MEDIUM TERM. I WOULD SAY THAT
PROBABLY WE NEED THEM, UM, FOR
THE FORESEEABLE FUTURE, JUST
BEING REALISTIC. AND THEN
THERE'S NOT ENOUGH ENERGY COMING
ONLINE AND THEN THERE ARE THE
ONLY RESPONSE IS DEMAND. UH, ON
THE DEMAND SIDE, I MEAN, YOU'RE
ASKING AS YOU SAY THE CUSTOMER
TO NOT ONLY PAY HIGHER RATES BUT
ALSO TO THEN USE ELECTRIC
ELECTRICITY. SO I MAYBE YOU CAN
CAN CAN, UM RESPOND TO THAT AS
WELL. YEAH, I THINK YOU KNOW, IN
TERMS OF THE ROLE FOR THE STATE
. I DON'T THINK THE STATE SHOULD
OWN GENERATION. I DON'T THINK
THAT'S A GOOD USE OF STATE
MONEY. I THINK THE STATE
FINANCING AND MAYBE OWNING
TRANSMISSION IS A WHOLE
DIFFERENT THING, BECAUSE THERE'S
A LOT OF ECONOMIC BENEFITS
ASSOCIATED WITH THAT. UM,
GENERATION IS A COMPETITIVE
BUSINESS. AND THERE ARE A LOT OF
COMPANIES OUT THERE THAT KNOW
HOW TO BUILD, OWN AND OPERATE
THESE RESOURCES. AND I DON'T SEE
THAT WE WANT TO CHANGE THAT, UM
WHAT DO WE WANT CUSTOMERS TO DO
? YOU KNOW, THE GAS PLANTS ARE
GOING TO STAY ONLINE UNTIL WE
DON'T NEED THEM ANYMORE. THAT'S
KIND OF THE WAY IT'S ALL SET UP
WHERE EVERY YEAR OR EVERY COUPLE
OF YEARS IF THERE'S A
RELIABILITY CRUNCH, UM WHETHER
THE STATE WANTS TO OR NOT, THE
CALIFORNIA IS SO CAN REQUIRE
THOSE PLANTS TO STAY ONLINE AND
SIMPLY PAY THEM AND FORCE US ALL
TO PAY THE COSTS AND THAT THAT'S
PROBABLY WHAT'S GOING TO HAPPEN.
UNLESS AND UNTIL THEY'RE NO
LONGER NEEDED. AND HOW DO WE GET
THERE? UM, I MEAN, A LOT OF IT
IS A LOT OF IT IS STORAGE RIGHT
NOW. THERE'S A LOT OF GENERATION
ONLINE, BUT IT'S PRODUCING A
TIMES THAT AREN'T THE TIMES THAT
WE NECESSARILY NEED IT SO
SHIFTING. THAT IS REALLY THE
GAME RIGHT NOW. HOW FAR CAN WE
GO WITH STORAGE AND HOW MUCH
CHEAPER STORAGE GOING TO GET IN
THE FUTURE YEARS AFTER WE GET
THROUGH THE SUPPLY CRUNCH? SO
THE OTHER THING WOULD BE LOOKING
AT TRANSMISSION IMPROVEMENTS TO
GO INTO THE LOCAL AREAS THAT ARE
CONSTRAINED RIGHT NOW, UM, WHERE
YOU HAVE THE NEED TO OPERATE
THOSE GAS PLANTS BECAUSE OF A
TRANSMISSION CONSTRAINT.
LITERALLY. YOU JUST CAN'T IMPORT
ENOUGH. HOW DO WE DEAL WITH THAT
? ULTIMATELY IN THE LONG RUN, I
THINK THIS WILL BE GOOD FOR
REPAIRS. IN THE SHORT RUN. WE'RE
DEALING WITH A LOT OF COSTS ON
THE SYSTEM THAT ARE DRIVING UP
RATES THAT ACTUALLY AREN'T
RELATED TO THIS TRANSITION.
THERE ARE MORE RELATED TO THINGS
LIKE WILDFIRES. UM WHICH WAS NOT
PART OF THE STATE'S PLAN. IT'S
JUST SOMETHING THAT'S HAPPENING,
AND WE'RE TRYING TO FIGURE OUT
HOW TO GET THROUGH IT. SO I
DON'T KNOW IF THIS IS HELPFUL,
BUT JUST SOME REACTIONS. ON THE
OTHER COMMENTS. SORRY OKAY.
YEAH. IF I MAY JUST SPEAK TO A
FEW, A FEW DIFFERENT THINGS THAT
I'VE BEEN HEARING TOTALLY AGREE
WITH OTHER OTHER FOLKS
MENTIONING THAT THERE IS NOT
REALLY A SILVER BULLET SOLUTION,
UNFORTUNATELY, BUT THERE ARE
MANY LITTLE PIECES THAT YOU
KNOW, LITTLE AND BIG PIECES THAT
CAN BE IMPROVED AND STRENGTHENED
. I THINK I'LL JUST SAY KIND OF
ALONG THE LINES OF MORE STORAGE
AND JUST THINKING ABOUT MORE
STRATEGIC USE OF STORAGE. I KNOW
I MENTIONED COMMUNITY SOLAR AND
STORAGE. AND I THINK, ALTHOUGH
AGAIN, NOTHING IS A SILVER
BULLET SOLUTION. COMMUNITY SLOW
AND STORAGES. IS UNIQUE IN THAT
IT CAN AVOID SOME OF THE ISSUES
THAT UTILITY SCALE HAS,
ALTHOUGH, OF COURSE WE NEED MORE
UTILITY SKILL, BUT BECAUSE IT'S
ON THE DISTRIBUTION LEVEL
COMMUNITY SOLAR PROJECTS, UM YOU
KNOW, CAN AVOID SOME OF THE KIND
OF THE LAND USE AND PERMITTING,
UM, UH, KIND OF BIGGER STRAINS
THAT SOMETIMES THEY USED TO
UTILITY SCALE PROJECTS HAVE, UH
, AND CAN ALSO FOLLOW ON A
FASTER TIMELINE. SO HEARING FROM
A LOT OF OUR SOLAR DEVELOPER
PARTNERS THAT AGAIN CAN CAN
REALLY GET PROJECTS ONLINE
QUICKLY BY 2024 EVEN 2025. UM AS
LONG AS WE GET THIS PROGRAM, YOU
KNOW, SET UP AND UP AND RUNNING.
SO GOING TO THE SENSE OF URGENCY
POINT THAT WE REALLY WANT TO SEE
THROUGH OUR STATE AGENCIES. UM
IN ADDITION, I KNOW A FEW FOLKS
HAVE MENTIONED THE INTEGRATED
RESOURCE PLAN PROCEEDING AND HOW
THERE'S THIS NEW PROCUREMENT
PROGRAM THAT'S CURRENTLY YOU
KNOW, BEING CREATED AND UNDER
CONSIDERATION. I THINK THIS IS
ALSO, YOU KNOW, A REALLY
IMPORTANT STEP FORWARD. TO
ENSURING THAT WE HAVE OUR LOADS
BECAUSE YOU KNOW, IN TERMS OF
ENERGY PROCUREMENT, THE STATE,
UM THE COMMISSION, THE PUBLIC
UTILITIES COMMISSION DOES
OVERSEE THE LOAD SERVING
ENTITIES INTEGRATED RESOURCE
PLANS. HOWEVER THERE AREN'T
REALLY STRONG COMPLIANCE
MEASURES FOR LSE. SO WE'VE WE'VE
OFTEN SEEN THEM NOT REALLY
PROCURING ENOUGH CLEAN ENERGY TO
ME THE CLIMATE COMMITMENTS THAT
WE'VE ALL CREATED AS A STATE,
AND SO I KNOW MANY BARRIERS HAVE
BEEN MENTIONED. BUT IN ADDITION
TO KIND OF ADDRESSING THOSE
BARRIERS TO RESEARCH AND BETTER
COORDINATION, I THINK JUST EVEN
HAVING A MORE, UM A CLEAR
PROCESS THROUGH THE I R P TWO TO
TRACK UH, GREENHOUSE GAS
REDUCTIONS. IT IS CURRENTLY
BEING CONSIDERED. I'M JUST
ELEVATING. THAT IS SOMETHING
THAT AGAIN UM ARE YOU KNOW THERE
HAS BEEN INVOLVED IN AND I KNOW
NUMEROUS OTHER PARTIES. UM AND,
UH, WHEN IT YEAH, AND I THINK I
HAD ONE OTHER POINT, BUT I'M NOW
FORGETTING IT. SO THOSE ARE THE
TWO I'LL SAY RIGHT NOW. BUT
AGAIN JUST WANTED TO ELEVATE
THIS. OH I REMEMBERED IT NOW. SO
JUST ALONG THIS, UH I KNOW
ASSEMBLYMEMBER'S PHªN HAD
MENTIONED A FEW TIMES. IS THAT
YOU KNOW, WE CAN'T. WE CAN'T
RELY ON CONSUMERS TO, YOU KNOW
VOLUNTARILY. AH AGAIN
VOLUNTARILY JUST ON THEIR OWN
TIME. CONSERVE ENERGY OR B B THE
YOU KNOW, BE RESPONSIBLE FOR
SOMETHING WHEN THIS IS A
SYSTEMIC PROBLEM TO THAT POINT,
I DID MENTION THE L R. P EARLIER
, WHICH WILL PAY LOW INCOME
CUSTOMERS TO RESERVE THEIR
ENERGY USE AND JUST WANT TO
ELEVATE AGAIN THAT THIS THIS
PROGRAM KIND OF COULD HAVE GONE
A LOT FURTHER THIS PAST HEAT
WAVE, BUT THERE HAS BEEN REALLY
, REALLY LOW AND POOR
COORDINATION, COMMUNICATION FROM
NOT ONLY THE CAISO BUT ALSO FROM
UTILITIES. AND SO WE REALLY
WANNA MENTION THAT. WE WE CAN
STAND THIS PROGRAM UP AND SEE
SEE IT GO MUCH FURTHER, WHILE
ALSO BRINGING MUCH NEEDED BILL
SAVINGS TO FOLKS WHO ARE
STRUGGLING TO PAY THEIR BILLS
RIGHT NOW, SO IT REALLY IS A WIN
WIN FOR US. AND IN ADDITION TO
THE E L R P, UM I THINK I JUST
WANT TO JUST WANT TO ELEVATE
THAT IF WE'RE GONNA WE'RE GONNA
KIND OF USE THE FRAMING OF LET'S
NOT LET YOU KNOW. LET'S NOT THIS
FAULT. LET'S NOT LET RELIABILITY
FALL ON COMMUNITIES. WE HAVE TO
THINK ABOUT HOW WE'RE EVERY
SINGLE DAY THROUGH THROUGH. OUR
ACTIONS WERE LETTING YOU KNOW
THE POLLUTION IMPACT. SMALL TOWN
COMMUNITIES, AND SO DEFINITELY
HERE, THE NEED TO BE PRAGMATIC
AND TO UNDERSTAND THE SUITE OF
OPTIONS THAT ARE AT PLAY, BUT WE
REALLY NEED TRANSPARENCY IN
TERMS OF THE TRADE OFFS THAT WE
MAKE WHEN WE CHOOSE SOME ENERGY
RESOURCES OF OVER OTHERS
RECOGNIZING IT'S COMPLEX, BUT
ALSO RECOGNIZING THAT, UM,
CONTINUING A PATH OF YOU KNOW,
GAS AND DIESEL RELIANCE AND ALSO
SOME OF THE OTHER ENERGY SOURCES
THAT I MENTIONED. UM YOU KNOW,
IT'S PUTTING PEOPLE IN HOSPITALS
, YOU KNOW, SO WE REALLY HAVE TO
DO MORE TO ENSURE THAT WE'RE
MAKING THE TRADE OFFS REALLY
CLEAR AND THAT WE BEING VERY
INTENTIONAL ABOUT HOW WE ARE
MOVING IN THE CLEAN ENERGY
TRANSITION. THANK YOU ANY OTHER
QUESTIONS FROM? UM NO, I AGREE.
I MEAN, WHEN YOU MENTIONED THE E
L R P PROGRAM. UM UNFORTUNATELY
, WE ALWAYS HAVE CHALLENGES
DOING OUTREACH AND
COMMUNICATIONS. UM TWO PEOPLE
THAT WILL BENEFIT FROM THAT THAT
ARE WILLING TO YOU TO ENROLL IN
THESE PROGRAMS. AND YOU KNOW,
I'VE SEEN THAT. ACROSS THE BOARD
ON A LOT OF PROGRAMS THAT THAT
THE PUC AND OTHERS, UM, MANAGE
RIGHT OR ADMINISTER. AND HOW DO
WE GET IT OUT THERE TO THE
COMMUNITIES? WHAT DO YOU HAVE
ANY IDEAS ON HOW WE CAN DO THAT?
OH, YES, DEFINITELY. UM, WELL,
YOU KNOW, WITH SO MANY OF THESE
PROGRAMS AS YOU MENTIONED,
THERE'S A LOT OF GREAT. UM
OPPORTUNITIES FOR COMMUNITIES TO
TAKE ADVANTAGE OF, HOWEVER THERE
YOU KNOW, ONE OF THE BEARS THAT
IS OFTEN MENTIONED IS JUST LIKE,
NOT ONLY THE BEARS. I THINK MANY
OF US ARE FAMILIAR IN TERMS OF
LACKING RESOURCES AND TIME TO
BE, YOU KNOW FULLY, YOU KNOW, TO
BE ATTENDING. SO MANY OF THESE
OF THESE HEARINGS AND KNOWING
ABOUT THE DIFFERENT PROGRAMS
THAT ARE AVAILABLE. THERE'S ALSO
SOMETIMES A LACK OF TRUST.
BECAUSE OF YOU KNOW THE HISTORY
OF THAT SOME COMMUNITIES HAVE
WITH WITH THE INSTITUTIONS. AND
SO THAT'S WHY WE SAY HOW WE
ALWAYS, UM WE ALWAYS, UH,
ENCOURAGE THE COORDINATION WITH
COMMUNITY BASED ORGANIZATIONS TO
GET OUT THE MESSAGE. BUT IN
ADDITION TO THAT, I THINK
SPECIFICALLY TO THE L R P. I
KNOW THAT THERE HAS BEEN A
DESIRE TO SEE THAT ON ON THE
FLEX ALERTS. UM I THINK, UH,
FROM CONVERSATION WITH UM FROM
WITH SOME FOLKS. I THINK THERE
WAS JUST A LITTLE BIT OF A
DISCREPANCY SINCE THE L R P ONLY
APPLIES TO, UM YOU KNOW, I O. U
S. AND SO MAYBE THE FLEX ALERTS
DIDN'T INCLUDE THAT BECAUSE IT'S
STATEWIDE FLEX ALERT. SO AS I
WOULD LOVE TO CONTINUE THAT
CONVERSATION BECAUSE I THINK
THERE'S STILL A WAY WE CAN
INCLUDE THE SUITE OF OPTIONS
THAT FOLKS HAVE, UM AND ENSURE
THAT THAT IS IN THE MESSAGING
THAT IT'S COMING FROM THE STATE
. BUT YEAH, BEYOND THE L R E L R
P AND MOVING ON TO JUST GENERAL
GENERAL, UH, KIND OF
COMMENDATIONS, I WOULD SAY,
DEFINITELY PROVIDING CBOS
RESOURCES TO DO TO DO OUTREACH
AND SUPPORT. AH SUPPORTING
COMMUNITIES, UM, TO BE AWARE OF
THE DIFFERENT THINGS THAT ARE
AVAILABLE TO THEM, UH, AND AS
MENTIONED BY MANY FOLKS,
INTERAGENCY COORDINATION,
BECAUSE, UM, YOU KNOW, E J
ADVOCATES CAN ONLY BE IN SO MANY
PUC PROCEEDINGS WITH THE
RESOURCES THAT WE HAVE, AND SO
WHEN THE TO THE EXTENT AND
THAT'S JUST AN EXAMPLE OF
COURSE, THERE'S MANY DIFFERENT
TYPES OF, UH, PROCEEDINGS AND
WORK THAT WE DO, BUT JUST
MENTIONING THE CPC AS AN
EXAMPLE, BECAUSE THAT'S AN AREA
I'M MORE FAMILIAR WITH, UH AND
KNOWING THAT THERE'S SO MANY
ISSUES THAT ARE SPREAD OUT
ACROSS SO MANY DIFFERENT AREAS.
THAT'S WHERE ALL KIND OF AH,
NOTICING HERE TODAY, I THINK THE
MORE THAT WE CAN THAT STREAMLINE
, MAKE THINGS TRANSPARENT AND
PUBLIC AND ACCESSIBLE TO THE
AVERAGE COMMUNITY MEMBER. THE
MORE THAT WE CAN DO THAT THE
BETTER. I KNOW THAT IT'S TOUGH
BECAUSE HE'S CHALLENGED. THESE
TOPICS ARE VERY TECHNICAL AND
COMPLEX. BUT I THINK THAT
THERE'S SO MUCH MORE THAT WE CAN
DO ON THAT. THANK YOU. I WANT TO
THANK ALL OF THE PANELISTS FOR
YOUR TESTIMONY FOR ANSWERING OUR
QUESTIONS. THANK YOU FOR JOINING
US HERE TODAY. ON YOU KNOW, ON
THIS ISSUE OF IDENTIFYING
ACTIONS TO GET TO OUR 2030 GOALS
LIKE WE MENTIONED AT THE
BEGINNING OF THE HEARING. THIS
IS NOT A ONE TIME ONE AND DONE
HEARING. YOU KNOW, THIS IS A
CONTINUING CONVERSATION. UM AND
A LOT OF YOU HAVE IDENTIFIED
ISSUES THAT WE NEED TO CONTINUE
WORKING ON QUESTIONS. THAT WE
NEED TO CONTINUE ASKING, AND I
REALLY APPRECIATE THAT. SO THANK
YOU VERY MUCH TO ALL OF YOU
NEXT. AND I ALSO WANT TO THANK
EVERYONE IN THE ROOM. THAT'S
STILL HERE, UM, FOR YOUR
PATIENTS FOR ENGAGING FOR
LISTENING TO THE FULL HEARING IN
PERSON, BUT NEXT, WE'LL MOVE ON
TO ANYONE THAT WANTS TO PROVIDE
PUBLIC COMMENT. AS A REMINDER WE
WANT TO LIMIT THE PUBLIC COMMENT
PERIOD TO ONE MINUTE PER PERSON.
BUT THANK YOU FOR JOINING US
HERE TODAY AND FOR STAYING FOR
THE FULL HEARING. PLEASE GO
AHEAD. GOOD AFTERNOON. DANIEL
BRAD ON BEHALF OF SIERRA CLUB,
CALIFORNIA THANK YOU VERY MUCH
FOR THE OPPORTUNITY TO COMMENT
AND FOR HOLDING THIS HEARING
TODAY. WE KNOW THAT AS WE
TRANSITION AWAY FROM FOSSIL
FUELS, WE MUST ALSO KEEP THE
LIGHTS ON, ESPECIALLY AS THE
WORSENING CLIMATE CRISIS
THREATENS GRID RELIABILITY.
HOWEVER AS WE HEARD FROM, SAY,
HOT TODAY, THE STATE CANNOT
CONTINUE TO PUT THE BURDEN OF
RELIABILITY ON THE ENVIRONMENT
AND ON ALREADY OVERBURDENED
COMMUNITIES. BY PROPPING UP
FOSSIL FUEL INFRASTRUCTURE,
CONTINUING TO DELAY THE
RETIREMENT OF ONCE THROUGH
COOLING AND OVER UTILIZING DIRTY
DIESEL BACKUP GENERATORS THIS
SESSION, WE LOOK FORWARD TO
WORKING WITH THE LEGISLATURE TO
FURTHER ADVANCE DISTRIBUTED
ENERGY RESOURCES, BATTERY AND
LONG DURATION, STORAGE, ENERGY
EFFICIENCY AND DEMAND RESPONSE
PROGRAMS. AND WHILE
TRANSPORTATION ELECTRIFICATION
IS GOING TO INCREASE ENERGY
DEMAND THE EVER GROWING
POPULATION OF LIGHT AND HEAVY
DUTY ELECTRIC BATTERY ELECTRIC
VEHICLES CAN ALSO ENHANCE GRID
RELIABILITY THROUGH, UH,
BIDIRECTIONAL CAPABILITIES. AND
FINALLY, WE HOPE TO HAVE THE AS
MANY OF THESE CONVERSATIONS AS
POSSIBLE THROUGH ACTUAL POLICY
BILLS THIS SESSION THAT CAN MOVE
THROUGH THE ENTIRE LEGISLATIVE
PROCESS. THANK YOU. THANK YOU
NEXT. THANK YOU, MADAM CHAIR.
MEMBERS OF THE COMMITTEE OF THE
THREE COMMITTEES WERE HERE TODAY
. JEREMY SMITH. YOU'RE ON BEHALF
OF THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL WERE
CHAGRINED THAT VERY LITTLE WAS
SAID TODAY ABOUT THE WORKERS IN
THE INDUSTRIES WHOSE JOB WILL BE
AFFECTED BY THIS TRANSITION
IDEAS WERE DISCUSSED TODAY. WE
HAVE A UNIQUE PERSPECTIVE ON
CLIMATE CHANGE, AND THE
TRANSITION TO NEW ENERGY
REMEMBERS HAVE FOUGHT FOR THE
ENTITLEMENTS AND THEN HAVE BUILT
THE VAST MAJORITY OF THE STATES,
UTILITY SCALE SOLAR WIND,
GEOTHERMAL PUMP STORAGE AND
OTHER RENEWABLE SOURCES OF
ENERGY. MOST OF THESE
ENTITLEMENTS WERE HARD FOUGHT,
FIGHTING THE SAME ACTIVISTS
LOCALLY THAT ARE CURRENTLY
DEMANDING THE STATE CEASED
TRADITIONAL POWER AND ENERGY
PRODUCTION. AT THE BUILDING
TRADES. WE BELIEVE IN CLIMATE
CHANGE, BUT APPRECIATED SOME OF
MEMBERS. FONG'S COMMENTS ABOUT
BEING PRAGMATIC. HOWEVER, OUR
MEMBERS SECRETLY A REALISTIC
APPROACH TO THE CLIMATE CRISIS
THAT EMBRACES SCIENCE AND COMMON
SENSE SOLUTIONS THAT ALSO
SUPPORTS OUR WORKFORCE AND DOES
NOT PRICE WORKING FAMILIES LIKE
THEIR OWN OUT OF CALIFORNIA. OUR
MEMBERS HAVE TRAINED FOR YEARS
TO DO EXACTLY WHAT THEY WANT TO
DO BE CONSTRUCTION WORKERS, MANY
OF WHOM WORK IN THE CURRENT
ENERGY PRODUCTION SECTOR. NOW
WHAT THEY DO NOT WANT US TO BE
RETRAINED TO BE ANYTHING OTHER
THAN A TRADES. PERSON IS A
MISTAKE TO THINK THAT THEY WANT
ANY JOB OTHER THAN THE ONE THEY
WERE TRAINING FOR. FINALLY, WE
FULLY EXPECT OUR INDUSTRIAL
WORKERS TO REMAIN INDUSTRIAL
WORKERS AS WE MOVED AS WE MOVE
TO FULLY MEET THE CLIMATE
CRISIS, AND WE ASK POLICYMAKERS
TO KEEP THEM THIS IN MIND AS WE
TALK ABOUT THE NEED FOR A
TRANSITION RIGHT TRANSITION OF
OUR ENERGY PRODUCTION. THANK
YOU. GOOD MORNING, MADAM CHAIR
MEMBERS VINCE WARREN MODULE WITH
THE CLIMATE CENTER SINCE MOST OF
TODAY'S CONVERSATION FOCUSED ON
UTILITY SCALE, I DO WANT TO
UPLIFT BY SECURITY WINDOWS AND
SO HOUSING SARAH CLUBS. COMMENTS
ABOUT USING E. V S TO PROVIDE
GRID STABILITY. UM, AND PREVENT
FUTURE BLACKOUTS. WE'RE SEEING
THIS IDEA TAKE HOLD IN THE
MAINSTREAM, ESPECIALLY WHEN
SEEING FORWARD ACTUALLY MARKETED
AS A MAJOR FEATURE IN THEIR
ELECTRIC F 1 50. THE STATE
CURRENTLY HAS A GOAL OF FIVE
MILLION EBS BY 2030. IF WE WERE
TO ACHIEVE THAT GOAL, WE WILL
HAVE ENOUGH BATTERIES ON WHEELS
TO POWER EVERY HOME IN THE STATE
FOR A FULL DAY. AND ONE THING TO
NOTE ON THAT FRONT WERE EXPECTED
TO EXCEED THAT GOAL BY A WIDE
MARGIN EIGHT MILLION VEHICLES
GIVEN THE CURRENT MARKET TRENDS.
THIS WILL GET US THROUGH ALL THE
PEAKS THAT WE KEEP HEARING ABOUT
, AND THAT WILL CONTINUE
HAPPENING BECAUSE OF THE CLIMATE
DRIVEN EXTREME HEAT EVENTS. TO
TAP INTO THIS MASSIVE POTENTIAL.
THE STATE NEEDS TO DO EVERYTHING
IT CAN TO ACCELERATE THE
ADOPTION OF THE GI. WE NEED TO
MAKE SURE THAT THESE VEHICLES
HAVE THE HARDWARE, SOFTWARE AND
PRICE SIGNALS NEEDED TO MAKE
SIGNIFICANT CONTRIBUTIONS TO THE
GRID, ALL OF WHICH CAN AND MUST
BE DRIVEN BY THE POLICY SET BY
THE LEGISLATURE. THESE COULD
INCLUDE MANDATING THAT EVERY
ELECTRIC VEHICLE SOLD IN STATE
BE CAPABLE OF PUTTING ELECTRONS
ONTO THE GRID. AS WELL AS
LEVERAGING BUDGET DOLLARS,
INCLUDING THE SP 8 46 MONEY
THAT'S BEEN AGREED TO
INCENTIVIZE THE ADOPTION OF E G
CAPABILITIES IN BOTH ZEB AS WELL
AS THE CHARGING INFRASTRUCTURE
THAT BENEFITS FROM STATE
FUNDING. ONE OTHER CRITICAL
THING TO NOTE USING THESE
RESOURCES WOULD AVOID THE
DEVELOPMENT UNCERTAINTIES AND
LONG PERMITTING TIMES ASSOCIATED
WITH UTILITY SCALE PROJECTS.
WHICH OF COURSE ARE STILL
NEEDED. FINALLY ALL OF THESE
POLICIES MUST ENSURE THAT
FRONTLINE COMMUNITIES ARE THE
FIRST BENEFICIARIES TO BENEFIT
FROM THESE TECHNOLOGICAL
ADVANCES. THANK YOU. THANK YOU.
THAT AFTERNOON, JOHN KENNEDY
WITH THE RURAL COUNTY
REPRESENTATIVES OF CALIFORNIA.
UH I'M REALLY GLAD WE'RE HAVING
THIS DISCUSSION TODAY BECAUSE
LOCALS ARE REALLY EXPERIENCING A
LOT OF THESE ISSUES AND TRYING
TO FIGURE OUT HOW WE GET TO THE
STATES ENERGY GOALS, HOW WE GET
TO THE STATES CLIMATE CHANGE
GOALS, SO TO BRIEF ISSUES. THE
FIRST IS RELIABILITY. WE HAVE
FOLKS JUST 30 MILES AWAY FROM US
IN SACRAMENTO THAT DON'T HAVE
RELIABLE ELECTRICITY. AND THAT'S
NOT ACCEPTABLE TODAY AND SECOND
IS THE ABILITY TO SERVE EVEN
NORMAL ECONOMIC GROWTH IN
COMMUNITIES. SO RELIABILITY
ISN'T JUST ABOUT THE THREAT OF
ROLLING BLACKOUTS WE'VE HAD OVER
2000 FAST TRIP OUTAGES OVER THE
LAST SEVEN OR EIGHT MONTHS
THROUGHOUT THE STATE, THOSE
OUTAGES AND AVERAGE ABOUT 4 TO 6
HOURS, BUT AS LONG AS 10 TO 20
HOURS OF REALLY DISRUPTIVE
IMPACT ON SCHOOLS ON LOW INCOME
FAMILIES ON BUSINESSES ON
WORKERS SO IT'S A QUALITY OF
LIFE ISSUE THROUGHOUT THE STATE.
SOME CIRCUITS HAVE GONE DOWN 20
TIMES OVER THE LAST SIX MONTHS
OR SO, SO WE NEED TO FIGURE OUT
HOW WE CAN REDUCE THE NUMBER OF
THESE OUTAGES AND PROVIDE SAFE
AND RELIABLE AND AFFORDABLE
ELECTRICITY AND THEN WITH
RESPECT TO CONNECTIONS. I AGREE
. WE NEED TO LOOK AT
TRANSMISSION. WE NEED TO LOOK AT
MORE ENERGY PROCUREMENT. BUT WE
ALSO NEED TO GET THE SMALLER
SCALE INFRASTRUCTURE PROJECTS
FINISHED. WE HAVE LONG HAD
PROBLEMS WITH GETTING POWER TO
NEW PROJECTS WERE OFTEN TOLD
IT'S 2 TO 4 YEARS BEFORE THE
UTILITY CAN COME IN AND DO THE
SYSTEM UPGRADES NECESSARY TO
BRING A NEW MANUFACTURING
FACILITY ONLINE, A NEW FOOD
PROCESSING FACILITY IN FRESNO
COUNTY. HAD MAJOR PROBLEMS, AND
THEIR ALTERNATIVE IS DIESEL
BACKUP GENERATORS. THAT'S NOT
ACCEPTABLE. TODAY THE NORTH
COAST IS HAVING HUGE PROBLEMS. 5
TO 7 YEAR DELAYS IN GETTING THE
INFRASTRUCTURE UPGRADED SO THEY
CAN EXPAND HOSPITAL ACCESS SO
THEY CAN BUILD A NEW
DISTRIBUTION FACILITY. SO THESE
ARE THE PROBLEMS WE'RE SEEING
FROM AN ECONOMIC DEVELOPMENT
PERSPECTIVE FROM A NORMAL GROWTH
PERSPECTIVE. BUT WE'RE ALSO
SEEING THEM FRUSTRATE THE
STATE'S ABILITY TO ELECTRIFY THE
VEHICLE FLEET TO DE CARBONIZED
INDUSTRIAL PROCESSES. SO I WANT
TO BRING THAT TO YOUR ATTENTION
WOULD LOVE TO WORK WITH YOU ON
SOLUTIONS TO THAT, BECAUSE WE
THINK THAT THE LOCAL GOVERNMENTS
WORKING WITH UTILITIES WORKING
WITH THE STATE AND MAKE IT
HAPPEN, SO THANK YOU FOR YOUR
TIME TODAY. THANK YOU. WELL, WE
HAVE CONCLUDED OUR AGENDA. THIS
WAS A JOINT HEARING BETWEEN THE
ASSEMBLY COMMITTEES ON NATURAL
RESOURCES, UTILITIES AND ENERGY
AND BUDGET SUB SIX. I WANT TO
THANK THE MY FELLOW CHAIRS, MR
TING AND MR GARCIA FOR PLANNING
THIS HEARING AND ALL THE STAFF
THAT WORKED ON IT AND THANK YOU,
MR FONG FOR JOINING US TODAY.
UM, SO THIS THIS MEETING IS
ADJOURNED. THANK YOU.