OKAY, WE'RE GONNA GET. GOOD
AFTERNOON, EVERYONE WELCOME TO
THE CALIFORNIA STATE ASSEMBLY,
UTILITIES AND ENERGY. COMMITTEE
HEARING. I LIKE TO CALL THIS
MEETING TO ORDER HEARING OF THE
ASSEMBLY COMMITTEE ON UTILITIES
AND ENERGY. WE'RE HERE FOR AN
OVERSIGHT HEARING TO HOLD OUR
ANNUAL REVIEW OF THE CALIFORNIA
ENERGY ENTITIES WITH A SPECIFIC
FOCUS ON RELIABILITY AND
READINESS FOR SUMMER 2023.
BEFORE WE BEGIN. I HAVE SOME
HOUSEKEEPING TO GO OVER.
COMMITTEE IS WELCOMING THE
PARTICIPATION AND INTEREST OF
DOCTOR WOULD TODAY SO WELCOME
DOCTOR TO THE COMMITTEE HEARING
. ONE OF OUR PANELISTS WILL BE
PARTICIPATING REMOTELY. HOWEVER
THERE WILL NOT BE PUBLIC PHONE
TESTIMONY. PUBLIC COMMENT CAN BE
MADE EITHER IN PERSON OR
SUBMITTED VIA EMAIL ON OUR
COMMITTEE'S WEBSITE.
ADDITIONALLY I WILL MAINTAIN THE
QUORUM DURING THE HEARING, AS IS
CUSTOMARY ALREADY HERE AS MUCH
FROM THE PUBLIC WITHIN THE
LIMITS OF OUR TIME, WE WILL NOT
PERMIT CONDUCT THAT DISRUPTS OR
OTHERWISE IMPEDES THE ORDERLY
CONDUCT OF THE LEGISLATIVE
PROCEEDINGS. THANK YOU PANELISTS
FOR BEING HERE THIS AFTERNOON.
HOLD THIS VERY TIMELY
CONVERSATION LEADING INTO THE
SUMMER OF 2023, AS WE ARE ALL
AWARE OF THE LAST THREE SUMMERS
HAVE CAUSED THEIR SHARE OF
CHALLENGES FOR ELECTRICITY GRID.
FROM THE UNFORTUNATE ROTATING
OUTAGES IN AUGUST 20/20 THE
BOOTLEG FIRE IN JULY, 2021 THE
CUT OFF A LARGE PORTION OF
ENERGY IMPORTS. TO THE LABOR DAY
. WE CAN HEAT EVENT LAST YEAR
THAT SCENE SOME RECORD BREAKING
TEMPERATURES THROUGHOUT THE
STATE AND THE HIGHEST DEMAND ON
CALYX IS SOUL'S HISTORY. IT'S
UNCLEAR WHAT SUMMER 2023 WILL
BRING, AND I LOOK FORWARD TO THE
HEARING AS PART OF TODAY'S
DISCUSSION. WHAT THE ENERGY
ENTITIES ANTICIPATE MIGHT HAPPEN
IN THE NEXT FEW MONTHS. THESE
EXTREME MOMENTS TO OUR
ELECTRICITY GRID HAVE SPURRED US
TO ACTION. AND ALL I WANT. I DO
WANT TO COMMEND THE PANEL ON
YOUR WORK THESE PAST FEW YEARS
AND KEEPING THE LIGHTS ON AND
CONSISTENTLY PRIORITIZING
RELIABILITY. UNCERTAINTY
CERTAINLY WHEN THE POWER GOES
OFF, ESPECIALLY DURING THE
HEATWAVE LIVES ARE ON THE LINE.
CALIFORNIANS HEALTH AND SAFETY
IS IMPACTED. NOW WE ARE THREE
YEARS OUT FROM THE 2020 OUTAGES
AND WE HAVE TAKEN EXTRAORDINARY
ACTION THROUGH POLICY AND
REGULATORY CHANGES AND EXTENSIVE
FUNDING. THAT IS WHY WE'RE
REVIEWING AND WE'RE WANTING TO
REVIEW THE EFFECTIVENESS OF OUR
EFFORTS AND TO UNDERSTAND HOW
READY THESE EFFORTS HAVE MADE US
FOR THIS SUMMER IN THE FUTURE
YEARS TO COME. LEGISLATURE HAS
HAD TO MAKE SOME DIFFICULT
DECISIONS TO SHORE UP
RELIABILITY, INCLUDING THE
EXTENSION OF DEBORAH DIABLO
CANYON AND THE CREATION OF THE
RELIABILITY RESERVE. AND THIS
COMMITTEE. THANKS THE EXTENSIVE
WORK AND COLLABORATION WITH OUR
COLLEAGUES IN THE BUDGET
COMMITTEE DURING THE ANALYSIS
AND REVIEW OF THESE
EXTRAORDINARY PROPOSALS. I ALSO
HOPE TODAY'S DISCUSSION CAN
PROVIDE AN OPPORTUNITY TO
REFLECT ON THE IMPLEMENTATION OF
THESE RECENT BUDGET ACTIONS AND
THEIR EFFECTIVENESS AND THE
IMPACT IN THE BROADER ENERGY
MARKET. I ALSO WANT TO NOTE THAT
WHILE TODAY'S DISCUSSION IS
FOCUSED ON RELIABILITY, THIS
HEARING WILL SERVE AS AN ANNUAL
REPORT ON THE LEGISLATURE FROM
THE CPUC. AND THE PUBLIC
ADVOCATE OFFICE. SO WE WELCOME
BROADER COMMENTS AND QUESTIONS
ABOUT ALL THE ASPECTS OF THESE
ENTITIES WORK. WITH THAT I'LL
TURN TO MY COLLEAGUES AND SEE IF
ANYONE ELSE HAS ANY OPENING
REMARKS, AND I'LL LOOK TO MY
RIGHT. MY LEFT, PLEASE. THANK
YOU, MR CHAIR. WELL I AM EXCITED
TO HEAR FROM THE DEPARTMENTS AND
AGENCIES ON THE PROGRESS OF
RELIABILITY, THAT'S FOR SURE
ENCOURAGING TO HEAR THE GOOD
NEWS FROM THE WESTERN
ELECTRICITY COORDINATING COUNCIL
UNRELIABILITY. UM FROM THE
COMMITTEE BACKGROUND PAPER.
QUOTES IN QUOTES ALL REGIONS IN
THE WEST SHOW ADEQUATE RESERVE
MARGIN TO MEET DEMAND UNDER
EXTREME CONDITIONS AND QUOTE.
WHILE I'M ENCOURAGED TO HEAR
THAT WE'RE TRENDING IN A
POSITIVE DIRECTION. CALIFORNIA
DOES HAVE AN INCREASED RISK WHEN
COMPARED TO OTHER WESTERN STATES
DUE TO OUR RELIANCE ON IMPORTS.
CLEARLY THE NEED TO PRIORITIZE
LARGE AND ROBUST PROCUREMENT
ORDERS WAS A RIGHT CALL. BY THE
LEGISLATURE. WE NEED TO BALANCE
THE NEED FOR RELIABILITY WITH
PROVIDING CLEAN, CARBON FREE
ENERGY. I LOOK FORWARD TO
HEARING WHAT THE STATUS OF THOSE
ORDERS WILL BE FROM THE PANELIST
THAT WE HAVE TODAY. THANK YOU.
THANK YOU ANYONE ELSE? OKAY? WE
WILL ASK THE PANELISTS TO COME
FORWARD. WE WELCOME THEM. LAST
AT THE PANELISTS PROVIDE THEIR
OPENING STATEMENTS, THEN WE CAN
TURN TO THE COMMITTEE FOR
QUESTIONS AFTER THE LAST PANEL
IS PRESENTS. AND WELCOME. AND IN
THE ORDER THAT YOUR OUTLINED IN
THE AGENDA YOU MAY PROCEED.
THANK YOU.
GOOD AFTERNOON. UH CHERRY GARCIA
, MEMBERS OF THE COMMITTEE, I'M
ALICE REYNOLDS, THE PRESIDENT OF
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION. I'M PLEASED TO BE
HERE TODAY TO DISCUSS SUMMER
RELIABILITY WITH MY COLLEAGUES
FROM THE CALIFORNIA ENERGY
COMMISSION, THE PUBLIC
ADVOCATE'S OFFICE, THE
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR IN THE DEPARTMENT OF
WATER RESOURCES. AS YOU'RE
LIKELY AWARE, THE PUC REGULATES
PRIVATELY OWNED ELECTRIC NATURAL
GAS, TELECOMMUNICATIONS, WATER,
RAILROAD, RAIL, TRANSIT, TRANSIT
AND PASSENGER TRANSPORTATION
COMPANIES WITH RESPECT TO
ELECTRICITY RELIABILITY. THE PUC
DIRECTS ELECTRICITY PROCUREMENT
CARRIED OUT BY THE RETAIL
PROVIDERS OF ELECTRICITY WHAT WE
CALL LOAD SERVING ENTITIES.
THESE ENTITIES ARE COMMUNITY
CHOICE, AGGREGATORS ELECTRIC
SERVICE SERVICE PROVIDERS AND
THE INVESTOR OWNED UTILITIES AND
THEY'RE RESPONSIBLE FOR
PROVIDING POWER TO CUSTOMERS
WITHIN THE TERRITORIES OF THE
INVESTOR OWNED UTILITIES, WHICH
IS ABOUT 75% OF THE STATE'S
ENERGY LOAD. IN ADDITION TO
RELIABILITY RESPONSIBILITIES, OF
COURSE, THE RETAIL PROVIDERS
ALSO ARE RESPONSIBLE FOR MEETING
THE CLEAN STATES. CLEAN ENERGY
MANDATES. CALIFORNIA'S PROGRESS
ON THE PATH TO 100% CLEAN
ELECTRICITY GRID MEANS THAT WE
NOW HAVE A LARGE FLEET OF
RENEWABLE ENERGY RESOURCES,
WHICH PROVIDE RELIABLE AND LOW
COST POWER TO SERVE OUR
BUSINESSES, INDUSTRY AND
RESIDENTS. WE'RE ALSO
INTERCONNECTED TO THE WEST WIDE
GRID. AND ON MOST DAYS THE
ELECTRICITY SYSTEM HAS MORE
AVAILABLE RESOURCES THAT NEEDED
TO SERVE LOAD. BUT WE KNOW THAT
CLIMATE CHANGE IS DISRUPTING THE
STATUS QUO AND CAUSING SEVERE
WEATHER IMPACTS THAT INCLUDE
EXTREME HEATWAVES, BRINGING
UNPRECEDENTED ELECTRICITY LOADS
TO CALIFORNIA AND THROUGHOUT THE
WEST. IN ADDITION TO INCREASING
ENERGY DEMAND, WE'RE ALSO SEEING
A SHIFT IN THE TIMING OF PEAK
LOAD MOVING TO LATER IN THE
EVENING. YOU MAY HAVE HEARD
DISCUSSIONS OF PEAK VERSUS NET
PEAK NET PEAK BEING THE PEAK
ENERGY LOAD THAT THE SYSTEM HAS
TO COVER WITHOUT SOLAR.
ESSENTIALLY THE TWO ARE EMERGING
. WE'RE SEEING THAT THE HIGHEST
PEAK LOAD TENDS TO OCCUR LATER
IN THE EVENING. AND WE'RE NOW
FOCUSING ON SYSTEM CAPACITY IN
THE EVENING HOURS WITH AROUND
EIGHT PM BEING THE FOCUS OF
SYSTEM RELIABILITY PLANNING. AND
I'LL NOTE THAT IF YOU HAPPEN TO
CHECK THE KAISER WEBSITE
YESTERDAY, WHICH I DO FREQUENTLY
, YOU'LL NOTE THAT OUR PEAK LOAD
WAS AROUND EIGHT PM AND SOLAR
WAS ESSENTIALLY ZERO AT THAT
TIME. I'M LOOKING FORWARD TO THE
TIME WE HAVE HERE TODAY TO
PRESENT AN UPDATE ON THE JOINT
AGENCY EFFORTS THAT ARE ONGOING
TO MEET THIS CHALLENGE. SO TO
GIVE YOU AN IDEA OF THE RUN OF
SHOW WE'RE FOLLOWING. UM THE
AGENDA SET FORTH BY THE
COMMITTEE AND I'LL START WITH A
FEW SIDES ON BACKGROUND. AND
THEN AFTER MR BAKER'S
PRESENTATION, VICE CHAIR GUNDA
WILL DESCRIBE UPDATES TO THE
RESOURCE STACK ANALYSIS AND THE
LATEST SNAPSHOT ON SUMMER
RELIABILITY. EXPORTATION
EXPECTATIONS, FOLLOWED BY
PRESENTATION BY DEPARTMENT OF
WATER RESOURCES AND CHI STO. UM
MOVING TO THE SLIDES THAT I HAVE
THE FIRST ONE I SEE IS ALREADY
UP. THANK YOU, UM AND I WANTED
TO NOTE ON THIS SLIDE THAT OVER
THE PAST FIVE OR SO YEARS THAT
ONE OF THE PUC S TOP PRIORITIES
HAS BEEN TO ENSURE THE
RELIABILITY OF THE ELECTRICITY
GRID BY ORDERING LOADS SERVING
ENTITIES TO QUICKLY BRING
ELECTRICITY RESOURCES ONLINE AND
NEAR AND MIDTERM TO MEET
INCREASING DEMAND. IRREGULAR WEB
WEATHER PATTERNS AND THE PEAK
LOAD. SO UM, AS YOU'LL SEE
BETWEEN NOVEMBER 2019. AND TODAY
WE'VE ORDERED A TOTAL OF 8800
MEGAWATTS TO COME ONLINE BY 2028
, WHICH IS THE LARGEST
REQUIREMENT FOR NEW CLEAN ENERGY
AND STATE HISTORY. THAT MEANS
THAT THE LOAD SERVING ENTITIES,
THE INVESTOR OWNED UTILITIES,
COMMUNITY CHOICE AGGREGATORS AND
ELECTRIC SERVICE PROVIDERS ARE
ALL RESPONSIBLE FOR SIGNING
CONTRACTS TO BRING THEIR PORTION
OF THIS NEW AMOUNT OF
PROCUREMENT ONLINE IN A TIMELY
MANNER MANNER. UM AND FOR
CONTEXT FOR THIS NUMBER. UM
YESTERDAY THE PEAK DEMAND WAS
AROUND 29,000 MEGAWATTS, SO
YOU'LL SEE THAT WITH THESE
DECISIONS WE'VE ORDERED MORE
THAN HALF OF WHAT WE NEEDED
YESTERDAY. UM. AND IMPORTANTLY,
ALSO NOTE THAT THE PROCUREMENT
ORDER FROM 2021 ORDERED 1000
MEGAWATTS OF LONG DURATION
STORAGE AND 1000 MEGAWATTS OF
LONG LEAD TIME RESOURCES SUCH AS
AS GEOTHERMAL. WE'RE LOOKING FOR
THESE SPECIFIC TYPES OF
RESOURCES BECAUSE OF THEIR
STABLE ENERGY PROFILES, WHICH
ALLOW THEM TO PROVIDE ENERGY ON
DEMAND IN THE EVENING HOURS FOR
EXTENDED PERIODS OF TIME. I
SLIDE TO PLEASE. THIS TABLE
SHOWS A BREAKDOWN OF WHAT THE
TYPES OF NEW RESOURCES THAT WE
EXPECT TO COME ONLINE BY 2026 BY
TECHNOLOGY TYPE BASED ON WHAT
LOAD SERVING ENTITIES ARE
PROVIDING TO US. SO THESE ARE
THE CONTRACTS THAT HAVE BEEN
ENTERED INTO AND THE MAIN
TAKEAWAY HERE IS THAT THE LION'S
SHARE OF NEW RESOURCES, IT'S
GOING TO BE STANDALONE STORAGE
AND HYBRID, UH, SOLAR AND
STORAGE RESOURCES. UM HYBRID
SOLAR AND STORAGE MEANS THAT
STORAGE IS BEING ADDED TO
EXISTING SOLAR RESOURCES, OR NEW
SOLAR AND STORAGE RESOURCES ARE
BEING BUILT IN ONE LOCATION. AND
WHILE ALL OF THE RESOURCES
LISTED HERE DO CONTRIBUTE TO OUR
ELECTRIC GRID NEEDS AT DIFFERENT
HOURS OF THE DAY BATTERY STORAGE
SIGNIFICANTLY, TRIBUTE
CONTRIBUTES TO OUR NEAR TERM
RELIABILITY NEEDS DURING THE
EIGHT PM EVENING PEAK WHEN THE
GRID IS MOST STRESSED. AND I'LL
GO TO SLIDE. THREE NOW. SLIDE
THREE SHOWS THE PACE OF NEW
RESOURCE DEVELOPMENT. AND THIS
PICK KEEPING UP. THIS PACE IS
CRITICAL TO MAKING SURE ALL OF
OUR PROCUREMENT ORDERS RESULT IN
ACTUAL STEEL IN THE GROUND. WE
HAVE AN INTER AGENCY TASK FORCE
CALLED THE TRACKING, ENERGY
DEVELOPMENT TASK FORCE, OR TED,
DEDICATED TO TRACKING PROGRESS
PROJECT BY PROGRESS PROJECT BY
PROGRESS PROJECT BASED ON OUR
CUMULATIVE TRACKING, WE'VE SEEN
OVER 3300 MEGAWATTS OF NET
QUALIFYING CAPACITY BROUGHT
ONLINE BETWEEN OCTOBER 2021 AND
SEPTEMBER 2022. FOR 2023 LOAD
SERVING ENTITIES ARE REPORTING
THAT AN ADDITIONAL 1800
MEGAWATTS OR MORE WILL BE
BROUGHT ONLINE BY THE PEAK
SUMMER SEASON WITH THE POTENTIAL
FOR ANOTHER 1300 MEGAWATTS
ONLINE BY THE END OF THE YEAR. I
DO WANT TO MAKE IT CLEAR THAT
THIS UNPRECEDENTED LEVEL OF
RESOURCE DEVELOPMENT COMES WITH
ITS CHALLENGES PERMITTING SUPPLY
CHAIN DISRUPTIONS, TRANSMISSION
AND IN OUR CONNECTION RELATED
DELAYS AND OTHER FACTORS MAKE
DEVELOPING RESOURCES IN A TIMELY
FASHION DIFFICULT. UM BUT STAFF
ACROSS ALL AGENCIES ARE WORKING
TO COLLABORATE WITH LOADS
SERVING ENTITIES AND DEVELOPERS
, ONE ON ONE TO HELP OVERCOME
ANY CHALLENGES THEY'RE FACING.
NEXT SLIDE, PLEASE. SO BRIEF
UPDATE ON THE STATUS OF THE
DIABLO CANYON POWER PLANT
EXTENSION PURSUANT TO SB 8 46
FROM LAST YEAR, THE CPUC OPENED
A NEW RULE MAKING TO CONSIDER
EXTENDING OPERATIONS OF DIABLO
CANYON POWER PLANT THROUGH
OCTOBER. 2029 FOR UNIT ONE AND
OCTOBER 2033 FOR UNIT TWO.
PHASE. ONE OF THE RULEMAKING
WILL ADDRESS FUNDING FOR THE
DIABLO CANYON INDEPENDENT SAFETY
COMMITTEE AND THE RETIREMENT
DATES BASED ON STATUTORY
CRITERIA. AS DIRECTED BY THE
LEGISLATURE. THE CPUC IS
CONSIDERING INFORMATION PROVIDED
BY THE INDEPENDENT SAFETY
COMMITTEE. THE CCN PUC JOINT
RELIABILITY PLANNING ASSESSMENTS
AND THE SIX ANALYSIS OF NEED TO
SUPPORT RELIABILITY AND COST
EFFECTIVENESS EVALUATION. PHASE
TWO OTHER PROCEEDINGS WILL
DETERMINE COST RECOVERY AND
COMPENSATION REPORTING PROCESSES
, AND THE CPUC IS ALSO WORKING
WITH THE DEPARTMENT OF WATER
RESOURCES ON A SEMI ANNUAL TRUE
UP OF P GENIES, RELICENSING N
TRANSITION COSTS WITH THAT. I
WILL CONCLUDE MY REMARKS BY
OFFERING MY THANKS TO THE
COMMITTEE AND I LOOK FORWARD TO
YOUR QUESTIONS. I DO ALSO WANT
TO NOTE THAT I WILL BE STEPPING
OUT OF THE HEARING ROOM, WHILE
MR BAKER MAKES HIS REMARKS IN
ORDER TO AVOID ANY POTENTIAL
ISSUES WITH EX PARTE
COMMUNICATIONS AND I WILL RETURN
AFTER HIS REMARKS CONCLUDE.
THANK YOU VERY MUCH. THANK YOU
VERY MUCH, MR BAKER. CHAIRMAN
GARCIA, VICE CHAIR AND MEMBERS
OF THE COMMITTEE. THANK YOU FOR
THE OPPORTUNITY TO PRESENT TODAY
. MY NAME IS MATT BAKER,
DIRECTOR OF THE PUBLIC
ADVOCATE'S OFFICE WITH ME HERE
TODAY, OR LINDA SERIZAWA, DEPUTY
FOR ENERGY AND CURRENT FOR OUR
CHIEF COUNSEL. YOU SHOULD HAVE
OUR 2022 ANNUAL REPORT AND SOME
OF THE OTHER KEY SLIDES BEFORE
YOU. I HOPE YOU'VE HAD A CHANCE
TO REVIEW OUR ANNUAL REPORT THAT
HIGHLIGHTS OUR TEAM'S 2020 TO
WORK TO FIGHT FOR AFFORDABILITY
AND EQUITY. PUBLIC ADVOCATE'S
OFFICE IS THE INDEPENDENT
CONSUMER ADVOCATE AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. OUR TOP PRIORITY IS
TO HELP ENSURE SAFE, AFFORDABLE
AND RELIABLE ENERGY, WATER AND
COMMUNICATIONS SERVICES. WE DO
THIS BY SCRUTINIZING EVERY
UTILITY APPLICATION, THEN
PROVIDING THE COMMISSION WITH
OUR FINDINGS AND RECOMMENDATIONS
. THIS IS IMPORTANT BECAUSE
THESE APPLICATIONS TYPICALLY
REQUEST INCREASES IN CUSTOMER
RATES AND IMPACT THEIR UTILITY
SERVICES. CALIFORNIA FACED MANY
HURDLES IN 2022, INCLUDING
RISING UTILITY BILLS,
RELIABILITY AND SAFETY CONCERNS.
I'M PLEASED TO REPORT THAT WE
ARE WORKING HARD TO ADDRESS ALL
THESE HURDLES BY IDENTIFYING
CREATIVE WAYS TO LOWER UTILITY
BILLS IN THIS HIGH INFLATION
ENVIRONMENT. HELPING TO ADVANCE
THE STATE'S RELIABILITY GOALS.
AND BY RECOMMENDING COST
EFFECTIVE SOLUTIONS TO HELP
TRANSITION TO A CLEAN ENERGY
FUTURE. A FEW BRIEF HIGHLIGHTS
OF OUR ACHIEVEMENTS IN A COUPLE
OF THESE AREAS. FIRST THE
COMMISSION'S DECISIONS TO UPDATE
THE STATE'S NAME ROOFTOP SOLAR
PROGRAM ADOPTED ARE KEY
RECOMMENDATIONS ON MAKING THIS
PROGRAM MUCH LESS COSTLY AND
FAIR FOR HOUSEHOLDS THAT DO NOT
GO SOLAR. THE DECISION WILL ALSO
ENHANCE CALIFORNIA'S GRID
RELIABILITY BY ENCOURAGING THEM
CUSTOMERS TO PAIR THEIR NEW
SYSTEMS WITH STORAGE. SECOND THE
COMMISSION'S COST OF CAPITAL
DECISION FOR THE FOUR LARGEST
ENERGY UTILITIES. THIS
PROCEEDING DETERMINES, AMONG
OTHER THINGS, HOW MUCH UTILITIES
CAN EARN HERE, THE COMMISSION
ADOPTED A SIGNIFICANT REDUCTION
TO THEIR REQUESTS OF 24 OF 25
BASIS POINTS, WHICH IS
CONSISTENT WITH OUR POSITION AND
ADVANCES, THE COMMISSIONS AND
OUR EFFORTS ON AFFORDABILITY.
FINALLY I HAVE A LITTLE SLIDE
HERE, UM, IN THE AREA OF OUR
GENERAL RATE CASES YOU'LL SEE
FROM THIS CHART. HOW MUCH RATES
HAVE INCREASED? THIS IS WHY
WE'RE WHY WE ARE DOING ALL THAT
WE POSSIBLY CAN TO ADVOCATE FOR
RATEPAYERS IN THESE PROCEEDINGS
WITH THESE RATE INCREASES TOP OF
MIND WE SPENT MOST OF LAST YEAR
REVIEWING PG AND E SAN DIEGO GAS
AND ELECTRIC'S AND SO COW GASSES
APPLICATIONS. AND DEVELOPING
RECOMMENDATIONS FOR PUC
CONSIDERATION. ALL OF THESE WILL
HAVE SIGNIFICANT RATE AND BILL
IMPACTS ON CUSTOMERS. FOR EACH
WE HAVE RECOMMENDED SIGNIFICANT
AND REASONABLE COST REDUCTIONS
TO THE UTILITIES REQUESTS. WE
EXPECT THE COMMISSION DECISION
ON PG AND E S GRC LATER THIS
YEAR AND ON SDG AND E S AND SO
CALLED GASSES GRCS EARLY NEXT
YEAR AGAIN, AS YOU CAN SEE FROM
THESE CHARTS, BILLS ARE
INCREASING AT AN UNSUSTAINABLE
RATE. WE MUST DO ALL IN OUR
POWER TO ADDRESS INCREASING
UTILITY COSTS AND THEIR IMPACT
ON CONSUMERS. SINCE TODAY'S
HEARING IS FOCUSED ON
RELIABILITY. I WANT TO CONCLUDE
MY REMARKS WITH SOME
OBSERVATIONS ABOUT THE COSTS AND
RATEPAYER IMPACTS OF MEETING OUR
RELIABILITY CHALLENGES. FIRST
MEETING. THESE RELIABILITY
CHALLENGES IS INCREASINGLY
EXPENSIVE. ALRIGHT, PRICES HAVE
INCREASED SUBSTANTIALLY. BETWEEN
2017 AND 2021 AUGUST SYSTEM ARE
A PRICES HAVE INCREASED IT 158%
WE EXPECT THIS TREND TO CONTINUE
DUE TO TIGHT MARKET CAN
CONDITIONS. THE CONDITION
THROUGHOUT THE WEST IS ALSO VERY
TIGHT. GENERALLY WE CAN EXPECT
HIGHER PRICES FOR SUMMER ENERGY
IMPORTS BECAUSE OF COAL PLANT
RETIREMENTS AND A LONG TERM
TREND FOR HIGHER TEMPERATURES IN
THE PACIFIC NORTHWEST. IT IS NOT
JUST EXISTING ARE A CAPACITY, UM
, AS THE PRESIDENT ALSO ALLUDED
TO MANY OF THE NEW I R P
RESOURCES, UH, ACQUIRED TO MEET
THE MIDTERM RELIABILITY NEEDS
ARE EXPERIENCING DELAYS AND
COSTLY AMENDMENTS TO THEIR
CONTRACT PRICE. WITH INCREASING
INCREASES, AVERAGING 30% SOME OF
THE FACTORS IN INCLUDE INCREASES
IN THE PRICE OF BATTERY AND
SOLAR PANELS SUPPLY CHAIN AS
WELL AS JUST INCREASED DEMAND.
WE'RE ALSO SEEING INCREASES IN
PERMITTING AND SOFT COSTS,
PARTICULARLY FOR BATTERY
INSTALLATIONS. AND SECOND POINT
I WANT TO MAKE ABOUT
RELIABILITY, AND ITS COST IS
WHILE THESE COSTS ARE INCREASING
NOT ALL OF THEM WILL FLOW
THROUGH TO THE RATEPAYERS. SOME
BATTERY CONTRACTS ARE STRUCTURED
TO ALLOW RAPE PAIRS TO RECOUP
SOME OF THE CONTRACT COSTS WHEN
ELECTRICITY IS EXPORTED. IN
ADDITION, WE ARE HOPEFUL THE
INFLATION REDUCTION ACTS. TAX
CREDIT WILL HELP AMELIORATE SOME
OF THE COST INCREASES. TAKE AWAY
ON THIS IS WE SHOULD BE VERY
CONCERNED ABOUT, UH, MIDTERM
RELIABILITY AND ARE A COST
INCREASES, HOWEVER, RESOURCE
PROCUREMENT FOR THE LIABILITY IS
ONLY ONE PART OF THE COST OF
PROVIDING SERVICE AND IT IS NOT
A PRIMARY DRIVER. THE RATE
INCREASES THAT WE'RE SEEING THE
ONES THAT I ALLUDED TO IN THE
LAST SLIDE. THE PRIMARY COST
DRIVERS ARE THE TRANSMISSION
BUILD OUT DISTRIBUTION,
INVESTMENT AND WILDFIRE
MITIGATION AS WELL AS LEGACY
CUSTOMER PROGRAM COSTS. NO, I
WOULD BE REMISS IF I DID NOT
POINT OUT THE GENERAL FUNDS
INVESTMENTS IN RELIABILITY,
STRATEGIC RELIABILITY RESERVE
PROVIDED PUSHING FOR RATEPAYERS
AND DELIVERS ADDED RELIABILITY
BENEFITS. RESOURCES GIVE CAISO
ADDITIONAL CAPACITY ON TOP OF
THE CPU. CS EFFECTIVE PLANNING
RESERVE MARGIN OF 20 TO 25 22.5.
GIVEN WHAT CLIMATE CHANGE IS
THROWING A CALIFORNIA AS WE
TRANSITION TO A CLEAN GRID ADDED
RELIABILITY IS VERY IMPORTANT.
IN CONCLUSION. WE HIT THE PUBLIC
ADVOCATE'S OFFICE ARE COMMITTED
TO WORKING WITH YOU, THE
GOVERNOR, THE COMMISSION AND ALL
OTHERS TO FIND EFFECTIVE WAYS TO
ENSURE THAT UTILITY SERVICES ARE
RELIABLE, AFFORDABLE AND SAFE,
ESPECIALLY FOR THOSE MOST IN
NEED. WITH THIS. I'D LIKE TO
CONCLUDE BY THANKING YOU AGAIN
FOR THE OPPORTUNITY TO PRESENT
TODAY. PLEASE CONTACT ME IF YOU
HAVE ANY DEEPER QUESTIONS, AND
I'M HERE TO ANSWER ANY QUESTIONS
YOU MIGHT HAVE. THANK GOD I WILL
TURN IT OVER TO THE NEXT PANELS.
THANK YOU. MR BAKER WILL PROCEED
TO THE NEXT WEEK. GOOD AFTERNOON
CHAIR AND MEMBERS OF THE
COMMITTEE. I THANK YOU SO MUCH
FOR THIS OPPORTUNITY TO BE HERE
AND PROVIDE YOU WITH AN UPDATE
ON THE RELIABILITY ANALYSIS. I'M
SEVERAS UNDER ONE OF THE
COMMISSION MEMBERS AT THE ENERGY
COMMISSION FOR THE RECORD. GOING
TO THE NEXT SLIDE, PLEASE. SO AS
WE CONTINUED OUR DISCUSSION
UNDER LIABILITY OVER THE LAST
2.5 YEARS, WE REALLY KIND OF
COALESCED AROUND THIS. THIS
PARTICULAR FRAMING AFTER
RELIABILITY CHALLENGES WE FACE
TODAY IN THE STATE. ONE IS THE
PLANNING PROCESSES. THIS IS
WHERE WE TALK ABOUT. HOW DO WE
IMPROVE OUR PROCESSES TO ENSURE
THAT THE CLIMATE CHANGE IMPACTS
ARE REALLY BEING BAKED INTO THE
FORECASTING? HOW DO WE ENSURE
THAT THE PROCESSES ARE IN SYNC
IN A TIME FASHION WHERE THE
INTEGRATED RESOURCE PLANNING AND
THE OTHER PROCUREMENT STRATEGIES
TAKE INTO ACCOUNT THOSE THOSE
UPDATED FORECAST NUMBERS SO THE
PROCUREMENT IS ADEQUATE AND ALSO
, HOW DO WE MAKE SURE THEN TO
INTERCONNECT THEM ON A TIMELY
BASIS, SO THAT'S AROUND THE
PLANNING SIDE. IN TERMS OF THE
SECOND BIG PROBLEM. WE LOOK AT
THE SCALING OF RESOURCES.
OBVIOUSLY MUCH OF OUR CLEAN
ENERGY TRANSITION TO DATE HAS
BEEN AROUND SOLAR WIND AND SOME
STORAGE BUT MOVING FORWARD. WE
HAVE AMBITIOUS GOALS ON OFFSHORE
WIND. WE HAVE TRANSMISSION
REQUIREMENTS. LONGLEY TIME
RESOURCES, INCLUDING LONG, LONG
TERM STORAGE OR LONGLEY STORAGE.
SO ALL OF THOSE THINGS HAVE TO
BE PLANNED FOR TODAY TO MAKE
SURE WE HAVE THEM IN THE GROUND
IN A TIMELY FASHION. ALONG WITH
THAT THE COMMITTEE HERE RAISED
IN SEVERAL LOCATIONS, THE
IMPORTANCE OF DEMAND FLEXIBILITY
. THAT'S ANOTHER IMPORTANT
ELEMENT THAT WE NEED TO FIGURE
OUT HOW TO OPERATIONALIZE AND
HAPPY TO ANSWER THAT IN THE
QUESTION AND ANSWERS. AND
FINALLY, HOW DO WE CONTINUE TO
AUGMENT THE RESOURCES WE HAVE
FOR THE PURPOSES OF THE EXTREME
EVENTS? SO APART FROM THE
PLANNING STANDARDS WE HAVE WE
HAVE ENOUGH CUSHION. TO RIGHT
RIGHT THROUGH THIS EXTREME
MOMENTS. NEXT SLIDE, PLEASE. SO
ACTIONS TAKEN, UH, TO DATE OUR
COLLECTIVE AND I JUST WANTED TO
EMPHASIZE HERE YOU KNOW, THERE
HAS BEEN QUESTIONS FROM THE FROM
THE COMMITTEE AND THE
LEGISLATURE ON HAVING ALL THE
AGENCIES WORK TOGETHER BETTER,
AND THIS IS JUST TO SHOWCASE
THAT. UM C C C P U C. THE DWR
TYSOE, ALONG WITH THE GOVERNOR'S
OFFICE, AS WELL AS THE
GOVERNOR'S. OFFICER THE BUSINESS
THE GO BEST. WE'RE ALL WORKING
VERY CLOSELY TOGETHER UNDER THE
UMBRELLA STRUCTURE. WE WORK VERY
REGULARLY AND SOME OF THE KEY
ELEMENTS THAT WE'RE FOCUSING ON
RELIABILITY ANALYSIS RESEARCH
TRACKING THAT PRESIDENT CHANNELS
MENTIONED IN TERMS OF THE TET
TASK FORCE CONTINGENCY TRACKING
. WHAT DO WE DO WITH THOSE
EXTREME WEATHER EVENTS? HOW DO
WE PLAN FOR CONTINGENCIES? AS
WELL AS ENTITY SPECIFIC, UM
PLANNING PLANNING PORTIONS,
INCLUDING CAICEDO'S OPERATIONAL
PLAN, EMERGENCY PLAN LOADING
ORDER AND REAL TIME
COMMUNICATIONS. SO WE HAVE A
NUMBER OF DIFFERENT TEAMS THAT
WOULD WORK WORKING COLLECTIVELY
TOGETHER. NEXT SLIDE, PLEASE. SO
THIS IS JUST A SNAPSHOT OF WHAT
WE'VE PROVIDED YOU IN FEBRUARY
VERSUS WHAT WE'RE TELLING YOU
TODAY, THE BIG DIFFERENCE HERE
IS TO TWOFOLD. ONE IS THE HYDRO
CONDITIONS SINCE THE FEBRUARY
UPDATE TO YOU, WE'VE GOTTEN THE
LATEST DATA FROM DWR AND HYDRO.
DEFINITELY THE OVERALL
GENERATION INCREASED, BUT IT
ALSO COMES AT A COST OF WITH THE
INCREASED AMOUNT OF PUMPING
LOAD. REQUIRED TO MOVE THE WATER
AROUND SO OVERALL, THERE IS A
NET BENEFIT OF ABOUT 300
MEGAWATTS. ON THE TOP OF THAT
WHEN WE CAME TO YOU IN FEBRUARY
, WE REDUCE THE AMOUNT OF IMPORT
AVAILABILITY BY 500 MEGAWATTS
COMPARED TO LAST YEAR GOING TO
THIS YEAR, GIVEN THE DROUGHT
CONDITIONS, BUT WITH THE AMPLE
AMOUNT OF WATER AND THEN THE AND
HOW WE ARE TRACKING ON IMPORTS
WE FEEL LIKE WE CAN GET TO THE
6000 LEVEL, WHICH ALSO ADDS
ANOTHER 500 MEGAWATTS OVERALL IN
THE NET. WE HAD 800 MEGAWATTS
BETTER THAN WHAT WE TOLD YOU IN
FEBRUARY. NEXT SLIDE, PLEASE. UM
SO AND THE RESULT SUMMARY. JUST
WANT TO GIVE YOU A MINUTE HERE.
SO AGAIN, IT'S IMPROVED HYDRO
AND IMPROVED IMPORT SITUATION,
SO I WANT TO JUST WALK THROUGH
THE TABLE CAREFULLY HERE. SO YOU
HAVE 33 ROWS AND THREE COLUMNS.
THE NUMBERS IN THE LAST TWO
COLUMNS TO THE FIRST ONE, THE
FIRST ROW THERE IS WHAT WE
EXPECTED. OUR POTENTIAL
SHORTFALL OR SURPLUS COULD BE
UNDERSTANDING PLANNING
CONDITIONS. THE FIRST NUMBER OF
15 50 WAS THE SURPLUS WE
MENTIONED TO YOU IN FEBRUARY
UNDER STANDARD PLANNING
CONDITIONS, AND THAT HAS GOTTEN
REALLY BETTER TO 23 50 MEGAWATTS
NOW. SO IN AN AVERAGE
CONDITIONS, MEANING AVERAGE
PLANNING CONDITIONS THAT ALSO
TAKE INTO ACCOUNT CLIMATE CHANGE
WITH NOT SAYING IT'S OUTSIDE,
BUT ONCE YOU GO INTO THE TAIL
EVENTS, THIS EXTREME EVENTS,
THAT'S WHERE YOU BEGIN TO SEE
THE NEED FOR CONTINGENCIES. IN
FEBRUARY, WE MENTIONED TO YOU
THAT IF WE WERE TO HAVE THE SAME
AMOUNT OF HEAT AS 2020 WE WILL
BE SEEING ABOUT 1000 MEGAWATTS,
SHORTFALL OR NEED FOR
CONTINGENCIES THAT HAS REDUCED
TO 200 NOW AND IF WE HAD A 2022
EQUIVALENT EVENT, WHICH WAS
SIGNIFICANT DEPARTURE FROM THE
EXPECTED FORECAST, WE WILL BE
LOOKING AT ABOUT 1800 MEGAWATTS
OF NEED FOR CONTINGENCIES NOW. I
WANTED TO RAISE A COUPLE ISSUES
FOR YOU ON THIS. PLEASE NOTE
THAT THESE NUMBERS DO NOT
INCLUDE COINCIDENTAL
CATASTROPHIC FIRE TO
TRANSMISSION. SO AS UM AS CHAIR
YOU MENTIONED AT THE TOP, YOU
KNOW, WE HAD BOOT LIKE FIRE THAT
KNOCKED OUT ABOUT 4000 MEGAWATTS
IN 2021, AND IF THAT WERE TO
OCCUR, THOSE NUMBERS WILL BE
COMPOUNDED ON THE TOP OF THIS.
AND ALSO JUST TO GIVE YOU A
SENSE GOING INTO 2022. THE
NUMBERS WERE LOOKING BETWEEN
10,000 MEGAWATTS OF SHORTFALL,
PLUS INCREMENTAL RISK SO WERE
SIGNIFICANTLY BETTER SITUATED
THIS YEAR, GIVEN THE AMOUNT OF
PROCUREMENT AND FINALLY CATCHING
UP PLANNING PROCESSES THAT
REALLY CATCHING UP WITH WHERE WE
NEED TO BE. NEXT SLIDE, PLEASE.
I'M GONNA JUST PUT THIS FOR
RECORD FOR YOU GUYS TO JUST, YOU
KNOW, LOOK AT BUT WHAT WE WANTED
TO HIGHLIGHT FOR YOU. HERE IS
THE AMOUNT OF NEW RESOURCES WERE
EXPECTING TO COME. SO IF YOU
LOOK AT THE TABLE, UM, A COUPLE
OF POSITIVE SIGNALS THERE, SO
EXISTING RESOURCES WENT UP BY
829 MEGAWATTS. THAT'S ALL HYDRO.
WE'RE ALSO LOOKING AT UPTAKE ON
NEW BATTERY NAMEPLATE. NEW
HYBRID RESOURCES, EVERYTHING'S
LOOKING UPWARD. RESOURCE
ADEQUACY. IMPORTS ARE ALSO
EXPECTED TO GROW AND
COLLECTIVELY, YOU HAVE ABOUT
2000 MEGAWATTS OF HIGHER, HIGHER
SUPPLY SIDE CONDITIONS, BUT ON
THE OTHER SIDE YOU HAVE ABOUT
500 MEGAWATTS OF DEFICIT
INCREASED DEMAND DUE TO THE
PUMPING LOAD. SO OVERALL WHEN
YOU TAKE THESE NUMBERS AND DO AN
HOURLY ANALYSIS, WE END UP WITH
THE NUMBERS. WE SHOWED YOU ON
THE PREVIOUS PREVIOUS SLIDE.
NEXT SLIDE, PLEASE. SO THE
QUESTION THEN IS, CAN WE GET
THROUGH THOSE EXTREME EVENTS?
AND THAT'S WHERE THE
CONTINGENCIES COME IN PLACE. I
WANT TO TAKE A MOMENT TO REALLY
THANK THE LEGISLATURE FOR GIVING
US THE TOOLS LAST YEAR WITH THE
STRATEGIC RESERVE. THE DSG S
PROGRAM, WHICH IS THE DEMAND
SIDE COULD SUPPORT PROGRAM AS
WELL AS THE DISTRIBUTED ENERGY
ASSETS PROGRAM. ALL OF THESE ARE
REALLY HELPING US. TO DEVELOP
RESOURCES AND HAVE THEM IN THEIR
POCKET FOR CONTINGENCIES. SO WE
LISTED A FEW OF THEM HERE AT THE
STRATEGIC RESERVE IS A BIG ONE
THAT DWR DELPHINE'S GONNA TALK
ABOUT THAT IN A MINUTE CPUC
PROGRAMS. THEY ALSO HAVE
EMERGENCY LOAD REDUCTION
PROGRAM, FLEX ALERT AND SO ON.
UM THE THIRD ONE THERE, SAYS DWR
STATE WATER PROJECT. I JUST WANT
TO KNOW THAT NOW THAT WE
ELEVATED THE AMOUNT OF PUMPING
LOAD, SOME OF THAT PUMPING LOAD
COULD BE REDUCED UNDER EXTREME
CONDITIONS, SO WE RIGHT NOW LEFT
IT AS A ZERO CONTINGENCIES. BUT
IF WE LOOK AT 2020, WE WERE ABLE
TO GET ABOUT 700 MEGAWATTS OF
RELIEF 2021. NOT MUCH BECAUSE
THE DROUGHT CONDITIONS 2022. WE
WERE IN THE 500 RANGE. SO THERE
IS A PRETTY BIG OPPORTUNITY, BUT
WE WOULDN'T KNOW THAT UNTIL DAYS
OR WEEKS AHEAD OF TIME. UM AND
FINALLY WE HAVE NON PROGRAM
RESOURCES. THESE ARE CAICEDO'S
EFFORTS ON ENSURING LED WP AND
CAISO SMART BANK AND SO ON, ARE
WORKING TOGETHER TO ALLOW FOR
SOME ADDITIONAL BALANCE
TRANSFERS. FINALLY UNDER NEXT
STREAM SITUATION, WE WILL HAVE
TO LEAN ON GOVERNOR'S EMERGENCY
PROCLAMATION WHERE WE GO INTO
RELIEVING SOME OF THE PERMIT
LIMITS, AND THAT'S WHERE THE
ADDITIONAL RESOURCES COME FROM.
OVERALL WE HAVE A GENERAL OF
2800 TO 26,000 MEGAWATTS OF
CONTINGENCIES IN OUR POCKET.
TODAY WE'LL CONTINUE TO EVALUATE
THEM. AND IN EVERY QUARTERLY
REPORTS, YOU WILL GET THOSE
NUMBERS SO GIVEN THE OVERALL
CONDITIONS OF THE SHORTFALL, AS
WELL AS THE CONTINGENCIES WE
HAVE. WE ARE DEFINITELY FEELING
CAUTIOUSLY OPTIMISTIC GOING INTO
THIS SUMMER, MUCH BETTER THAN
LAST YEAR AND FINALLY NEXT
SLIDE. JUST UNDER ADDITIONAL
RELIABILITY UPDATES. AS YOU
KNOW, WE HAVE A B 205209 AND 8
46 ALL KIND OF COMING TOGETHER
UNDER LIABILITY EFFORTS. WE HAVE
A WORKSHOP TOMORROW WE HAD MUCH
OF THIS INFORMATION WILL BE PUT
OUT IN DETAIL ARE 2023 HYPER OR
INTEGRATE ENERGY POLICY REPORT
THAT SISI DEVELOPED IS
FUNDAMENTALLY FOCUSED ON
INTERCONNECTION ISSUES, AND
WE'RE DOING THAT COLLABORATIVELY
WITH CPUC AND CAISO SO WE CAN
HAVE ONE STATE APPROACH TO THAT.
AND FINALLY ON THE STRATEGIC
RESERVE UPDATES, DWR WILL SPEAK
TO THE OTC CONTRACTS AND THEN
WE'LL CONTINUE TO ANSWER
QUESTIONS ON THIS. THANK YOU.
THANK YOU VERY MUCH. WE'LL MOVE
ON TO THE NEXT PRESENTER. THANK
YOU VERY MUCH. MY NAME IS
DELPHINE KHÓ. I'M THE DEPUTY
DIRECTOR FOR STATEWIDE WATER AND
ENERGY AT THE DEPARTMENT OF
WATER RESOURCES. THANK YOU SO
MUCH FOR HAVING ME HERE TODAY.
I'M GOING TO GO POWER POINT FREE
TODAY. SO LET ME START BY GOING
BACK A LITTLE BIT TO REVIEW WHAT
OCCURRED IN 2022. SO IN 2022 DWR
WAS ABLE TO SECURE OVER 3500
MEGAWATTS OF CAPACITY TO ADDRESS
SUMMER RELIABILITY. THE VAST
MAJORITY OF THAT CAPACITY WAS
APPROXIMATELY 3350 MEGAWATTS.
AFFIRM ENERGY IMPORT CONTRACTS.
FOCUSING ON SUMMER 2023. THE
SITUATION IS SLIGHTLY DIFFERENT
, SO I OUTLINED THE RESOURCES WE
HAVE PREPARED FOR THIS SUMMER.
THUS FAR, DWR HAS SECURED 291
MEGAWATTS OF GENERATION AND
PREPARATION FOR EXTREME EVENTS
OF THAT AMOUNT. 147.5 MEGAWATTS
IS ALREADY ONLINE AND ANOTHER
143.5 IS EXPECTED TO BE ONLINE
BY SEPTEMBER. THIS LAST TRANCHE
OF RESOURCES IS COMPRISED OF NEW
LOW EMISSION GENERATING
RESOURCES. BASED ON THE SAME
PROPRIETARY TECHNOLOGY FROM A
DIFFERENT DIFFERENT GENERATOR
MODEL THAT HAS ALREADY MET THE
CALIFORNIA AIR RESOURCES BOARD
CERTIFICATION FOR DISTRIBUTED
GENERATION. THIS TECHNOLOGY IS
EMISSIONS PROFILE HAS BEEN
PROVEN TO BE LOW ENOUGH TO BE
EXEMPT FROM THE PERMIT
REQUIREMENTS OF AIR POLLUTION
CONTROL OR AIR QUALITY
MANAGEMENT DISTRICTS. THE
REDUCTION IN CAPACITY, THOUGH
OVERALL IS BECAUSE DWR NO LONGER
HAS THE AUTHORIZATION TO
CONSIDER IMPORTS BUT THAT HAS
BEEN REQUESTED THROUGH THE
REVISED BUDGET FOR SUMMER 2023.
FURTHERMORE DWR HAS VOLUNTARILY
DECLINED TO SEEK ANYMORE DIESEL
GENERATION, EVEN THOUGH THAT IS
STILL POSSIBLE UNDER THE WATER
CODE THROUGH JULY, 31ST 2023
MOVING AHEAD TO 24 AS VICE CHAIR
GONNA MENTIONED DWR EXPECTS TO
HAVE RESOURCES SIGNIFICANTLY
INCREASE TO 3150 MEGAWATTS
AVAILABLE. AND THIS LARGE
INCREASE REFLECTS THE RECENTLY
CONTRACT ID ONCE THROUGH COOLING
RESOURCES. UM THAT AMOUNTS TO
2860 MEGAWATTS. THOSE ARE THOSE
RESOURCES ARE ACTUALLY SET TO
RETIRE AT THE END OF THIS YEAR.
UM AND THAT'S BEEN THE MOST
SIGNIFICANT CHANGE OF IN THE
LAST COUPLE OF MONTHS FOR DWR
AND INCREASES OUR TOTAL
COMMITMENT AS OF APRIL 30TH 2023
TO $2.1 BILLION FOR THE FUND.
FOR THE THREE OTC RESOURCES THE
ONCE THROUGH COOLING RESOURCES.
DWR ENTERED INTO THESE CONTRACTS
AT THE RECOMMENDATION OF THE
STATEWIDE ADVISORY COMMITTEE ON
COOLING WATER INTAKE STRUCTURES
OR SACK QUIZ QUIZ INCLUDES
REPRESENTATIVES FROM, UH C P U.
C. C C AS WELL AS THE CALLOUS SO
I'M IN GOOD COMPANY RIGHT HERE.
AND IN THE SEPTEMBER 30TH 2022
REPORT, ZACH WAS RECOMMENDED TO
THE STATE WATER RESOURCES
CONTROL BOARD TO EXTEND THE
COMPLIANCE. STATE OF THREE OF
THEM ONCE THROUGH COOLING
RESOURCES FROM DECEMBER 31ST
2023 THROUGH TO DECEMBER 31ST
2026 IN ORDER TO INCLUDE THESE
IN THE ELECTRICITY SUPPLY
STRATEGIC RELIABILITY RESERVE
PORTFOLIO. WITHOUT SUCH ACTION
FROM THE STATE WATER RESOURCES
CONTROL BOARD THIS 2860
MEGAWATTS OF NATURAL GAS FIRED
GENERATION RESOURCES WOULD HAVE
RETIRED BY DECEMBER. 31ST 2023
IN ORDER TO COMPLY WITH WENT
THROUGH ONCE THROUGH COOLING
POLICY. UM, AS THE SACK WAS
EXPLAINED, ENABLING DWR TO
CONTRACT WITH THESE EXISTING
RESOURCES WILL ALLOW THE STATE
TO ADDRESS RELIABILITY CONCERNS
AND POPULATE THE STRATEGIC
RESERVE MORE EXPEDITIOUSLY AND
WITH MORE CERTAINTY WHILE IT
WORKS TO SECURE ADDITIONAL
RESOURCES. EXTENDED OPERATIONS
UNDER DWR WOULD NOT BEGIN UNTIL
2024 OR LATER IN ARE DEPENDENT
UPON THE STATE WATER RESOURCES
CONTROL BOARD EXTENSION OF THOSE
ONCE THROUGH COOLING PERMITS. WE
DO EXPECT THE STATE WATER
RESOURCES CONTROL BOARD TO TAKE
ACTION EITHER LATER THIS SUMMER
OR EARLY FALL OF 23. THAT
CONCLUDES MY REMARKS AS AN
UPDATE AND HAPPY TO ANSWER
QUESTIONS. THANK YOU VERY MUCH.
THANK YOU WILL WILL BE ASKING
QUESTIONS AFTER THE LAST
PRESENTER, SO PLEASE THANK YOU
VERY MUCH. I'M NEIL MILLER WITH
THE INFRASTRUCTURE AND
OPERATIONS AT THE CALIFORNIA
INDEPENDENT SYSTEM. OPERATOR I
DID BRING A FEW SLIDES. SO, UH,
IF I COULD JUST START THE SLIDE
DECK, PLEASE. SO JUST A QUICK
RECAP OF 2022 AND A LOT OF MY
MATERIAL IS GOING TO BE
BASICALLY ALIGNS WITH THE SAME
CONCLUSIONS YOU'VE ALREADY HEARD
FROM PRESIDENT REYNOLDS AND VICE
CHAIR GUNDA. WE'VE BEEN LOOKING
AT IT THROUGH SLIGHTLY DIFFERENT
LENS, INCLUDING LOOKING AT WHAT
PARTICULAR TOOLS IN THE TOOLBOX
HAVE BEEN IMPROVING IN TERMS OF
MEETING THE CONVENTIONAL
PLANNING REQUIREMENTS. AS WELL
AS THEN LOOKING AT THE RESERVES
AND THE EMERGENCY MEASURES AS AN
ADD ON TO ADDRESS THE MORE
EXTREME EVENTS. SO WHEN WE LOOK
AT LAST YEAR, WE WERE LOOKING AT
MODERATE CONDITIONS OVERALL
UNTIL WE HIT THE YOUNG
PRECEDENTED HEATWAVE IN
SEPTEMBER. AS WHICH OBVIOUSLY
SET NEW RECORDS AND STRESS THE
SYSTEM. NOW A FEW DIFFERENT
TOOLS THAT WE HAD IN THE TOOLBOX
AT THAT TIME, THE WESTERN ENERGY
IMBALANCE MARKET WAS EXTREMELY
EFFECTIVE AT MOVING POWER AROUND
AND ENSURING THAT WE WERE ABLE
TO GET THE POWER FROM WHERE
THERE WERE SURPLUSES TO THE
PEOPLE THAT WERE MOST IN NEED.
UH WE ALSO HAD THE BENEFIT OF
THAT TIME ABOUT 3000 MEGAWATTS
OF NEW INSTALLED CAPACITY OF
BATTERIES THAT WERE EXTREMELY
EFFECTIVE AT HELPING US MEET
THOSE LATE DAY PEAKS AS THE
SOLAR OUTPUT HAS DROPPED OFF, AS
YOU'VE ALREADY HEARD FROM
PRESIDENT REYNOLDS, THAT IS NOW
OUR NEW CRITICAL TIME OF DAY.
NEXT SLIDE, PLEASE. SOME KEY
OBSERVATIONS, THOUGH, WHEN WE
LOOK AT THE SUMMER OF 2023 AS I
MENTIONED OUR CONCLUSIONS TO
ALSO SUPPORT THOSE YOU HEARD
FROM VICE CHAIR, GUNDA, WE ARE
SEEING MATERIALLY IMPROVED
CONDITIONS IN 2023, BASED
LARGELY ON THE IMPROVED HYDRO
CONDITIONS OVERALL, AS WELL AS
THE ADDITION OF NEW RESOURCES TO
THE GRID. WHEN WE LOOK AT THOSE
AND DO THE ASSESSMENT AGAINST
THE CONVENTIONAL PROBABILISTIC
PLANNING TARGETS, WE DO SEE THAT
USING THE RESOURCES THAT ARE
CURRENTLY IN OUR PIPELINE TO BE
CONNECTED TO THE GRID NOW OR BY
JUNE 1ST THAT WE HAVE A SLIGHT
SURPLUS OF MEETING THE LONG TERM
PLANNING TARGETS, AND WHEN WE
LOOK AT THE RESOURCES THAT ARE
STILL GRINDING TOWARDS TARGETING
A SEPTEMBER 1ST IN SERVICE STATE
THOSE ACTUALLY GIVE US SO MUCH
MORE COMFORTABLE MARGIN UP OVER
2000 MEGAWATTS. NOW TO PUT IN
PERSPECTIVE, THE SAME METRICS
WERE SHOWING A SHORTFALL LAST
YEAR OF 1700 MEGAWATTS, AS WE
WERE GOING INTO THE SUMMER. AND
I SHOULD MENTION THESE. THESE
CONTINGENCIES. THESE EVENTS LOOK
AT US NOT SAYING THAT WE WOULD
BE SHEDDING LOAD BUT THAT WE
WOULD BE CALLING ON EMERGENCY
MEASURES TO MITIGATE THE IMPACT
IF WE HIT THOSE NEXT SLIDE,
PLEASE. SOME OTHER KEY
OBSERVATIONS, THOUGH, THESE THIS
PLANNING ANALYSIS LOOKING AT
LONG TERM TARGET PLANNING
TARGETS, OF COURSE, DOES NOT
TAKE INTO ACCOUNT AND WE REMAIN
VULNERABLE TO WIDESPREAD
HEATWAVE EVENTS THAT COULD DRIVE
UP TO HIGH LOAD LEVELS AT THE
SAME TIME AS THREATENING
IMPORTS. AND AS WE MENTIONED
BEFORE HOURS OF VULNERABILITY DO
FOCUS ON THE LATE EVENING POST
SOLAR WINDOW HOURS. THE
STRATEGIC RESERVES THAT YOU'VE
HEARD ABOUT ALREADY OR SOMETHING
OR WORKING HARD TO MOBILIZE WITH
THE STATE AGENCIES TO ENSURE
THAT WE CAN CALL ON THEM WHEN
NEEDED. THE NEXT SLIDE, PLEASE.
ON THIS SIDE. WE'VE JUST SHOWN
WHAT IS GIVING US THE REASON FOR
THE ADDITIONAL COMFORT THIS YEAR
, THE INCREASED RESOURCES
PRIMARILY IN BATTERIES, AS WELL
AS SOLAR FOR CHARGING THAT
STORAGE HAVE BEEN A HUGE HELP.
IN OUR ANALYSIS. WE'RE ALSO
LOOKING AT ROUGHLY 240% OF
AVERAGE HYDRO CONDITIONS ON
APRIL 6TH ONE WHO TOOK OUR
SNAPSHOT TO INFORM OUR ANALYSIS.
THAT MORE THAN OFFSETS ON THE
NEXT SLIDE, PLEASE. THE UH,
SOMEWHAT MODEST INCREASE IN LOAD
WHEN WE LOOK ACROSS THE ENERGY
COMMISSION'S PROJECTIONS. IF I
COULD MOVE TO THE NEXT SLIDE,
PLEASE. YES UH, WE'RE SEEING
RELATIVELY MODEST LOAD GROWTH
ACROSS THE RANGE OF THE
PROBABILISTIC ANALYSIS, WHICH IS
COMFORTING. AND IF I COULD MOVE
TO THE NEXT SIDE WHERE WE'RE
PUTTING OUR TIME RIGHT NOW IS ON
TUNING UP. THE OPERATIONS
FOCUSED TO BE READY FOR THE
SUMMER EVENTS. WE'VE BEEN
PUTTING ADDITIONAL WORK INTO THE
CLARIFICATION OF THE EMERGENCE,
UH EMERGENCY ALERTS THAT WE'RE
PROVIDING TO BE CRYSTAL CLEAR TO
INDUSTRY OF THE SITUATIONS WERE
FACING. OR STRENGTHENING THE
CRITERIA AROUND WHEN TO APPLY.
CALIFORNIA FLEX ALERT. WE'RE
WORKING WITH OUR RELIABILITY
COORDINATOR NEIGHBORS TO ENSURE
THAT OUR PROCESSES FOR ACCESSING
SURPLUSES IF WE'RE IN A
SHORTFALL, SITUATION ARE FULLY
TUNED UP AND VICE VERSA. WE'VE
ALSO BEEN WORKING TO IMPROVE
COORDINATION ACROSS THE INDUSTRY
TO ENSURE THAT THE ROLE SER
CRYSTAL CLEAR. AND WE HAVE ALSO
BEEN FINE TUNING SOME OF OUR OWN
COORDINATION TOOLS INTERNALLY
FOR OUR OWN OPERATIONS GROUP.
THAT LADDER HAS BEEN FOCUSING
PRIMARILY ON BROADENING OUR
WILDFIRE VISIBILITY AND
AWARENESS. IF I COULD TURN TO MY
LAST SLIDE. THE OTHER KEY FOCUS,
OF COURSE, IS ON COMMUNICATION,
SO WE'VE ALSO BEEN DOING
WHATEVER WE CAN TO FIRM UP OUR
COMMUNICATIONS PLAN AND BE READY
FOR THIS SUMMER. LOOKING AT
SUMMER CONDENSED SYSTEM
CONDITION BULLETINS, TUNING UP,
FLEX ALERT COMMUNICATIONS AND
ALSO RELYING ON A VERY ROBUST
SOCIAL MEDIA PLATFORM FRAMEWORK
FOR REACHING OUT IN TIMES OF
NEED. SO THANK YOU FOR THE
OPPORTUNITY AND I LOOK FORWARD
TO THE QUESTIONS. THANK YOU VERY
MUCH. WE'RE GOING TO OPEN IT UP
TO MY COLLEAGUES. TO THE RIGHT.
IT'S. LET'S START WITH OUR
GUESTS. CAREFUL WHAT YOU WISH
FOR READY. THANK YOU. UM SO I'M
A LITTLE BIT OF A NOVICE HERE,
BUT I WILL DO MY BEST TO NOT
SCREW SOMETHING UP HERE. BUT I
HAVE I HAVE QUESTIONS, AND I'M
GOING TO ADDRESS IT TO EACH OF
THE PANELISTS. UH, MISS REYNOLDS
. UM, YOU MENTIONED, UM A FRASER
BRINGING PROCUREMENT ON TIME
ONLINE IN A TIMELY MANNER, AND
SO I'M LOOKING AT THE NEW
RESOURCES SECTION THERE WERE
OBVIOUSLY PRODUCING POWER. HOW
ARE WE IMPROVING OUR
TRANSMISSION AND INTERCONNECTION
PERMITTING TO GET IT ONLINE
FASTER. UM AS I RECALL, ONE OF
THE BIG REASONS FOR EXTENDING
DIABLO IS THAT WE'RE STRUGGLING
TO GET GREEN POWER RESOURCES
ONLINE EFFICIENTLY, SO AND I'LL
ADD TO THAT. AFTER WE HAD THE
HEARING ON DIABLO HERE AND AFTER
WE LEFT, UM I STARTED HEARING
ABOUT SIGNIFICANT CHALLENGES OF
INTERCONNECTION TRANSMISSION IN
MY DISTRICT, UM TO A POINT.
WHERE WE STARTED DOING ASKING A
LOT OF QUESTIONS, AND NOW I'M
RUNNING A BILL ON THAT BECAUSE
IT'S A SERIOUS PROBLEM. IN
ADDITION, DURING THAT HEARING,
THERE WAS A GENTLEMAN THAT RIGHT
THERE FROM TRINIDAD, WHO TALKED
ABOUT ONE OF THE BIGGEST
CHALLENGES WE HAVE WITH OUR
GREEN ENERGY PORTFOLIO AND ARE
GROWING GREEN ENERGY RESOURCES
IS THE ABILITY TO GET
INTERCONNECTION AND
TRANSMISSION. AND SO I ASKED AT
THE TIME, UM MS MARTA SANTOS
ABOUT THAT. AND SHE SAID, WE'RE
AWARE OF THAT SO AS WE LOOK AT
RELIABILITY. GOING FORWARD TO ME
. THAT ALSO MEANS WE NEED TO
HAVE BETTER TRANSMISSION AND
INTERCONNECTION TO ENSURE
RELIABILITY IN. MAYBE I'M JUST A
NERVOUS BECAUSE I DON'T REALLY
KNOW I YOU KNOW, I JUST THINGS
IN AND TURN THEM ON AND HOPE THE
HELL THEY WORK. SO WHAT ARE WE
DOING? BECAUSE WE HEARD FROM OUR
UTILITY P GENIE IN PART OF THE
DISTRICT. THAT IT WILL TAKE 7 TO
10 YEARS. YOU GET THE GO AHEAD.
TO DO A TRANSMISSION LINE.
THAT'S AN AWFULLY LONG TIME,
CONSIDERING THAT THINGS LIKE
DIABLO HAVE BEEN PERMITTED FOR
ADDITIONAL FIVE YEARS TO HELP
WITH THIS PROBLEM, SO HELP ME
HELP ME WITH THAT BASIC
QUESTION. I KNOW IT WAS LONG,
BUT I HAD A LOT TO THROW IN
THERE. SURE ABSOLUTELY. AND YOU
HAVE IDENTIFIED UM, A FEW AREAS
THAT ARE REALLY CRITICAL TO THE
CLEAN ENERGY TRANSITION AND
AREAS THAT ALL OF THE AGENCIES
HAVE BEEN SPENDING A LOT OF TIME
WORKING ON AND YOU'RE RIGHT.
THIS IS A SIGNIFICANT PROBLEM.
UM, I'M GONNA SEPARATED OUT A
COUPLE OF THINGS THAT YOU
COVERED IN THE QUESTION, AND
THAT REALLY KIND OF IDENTIFIED
SOME OF THE KEY CHALLENGES THAT
WE'RE FACING. SO ONE IS
GENERATION INTERCONNECTION, AND
I TALKED A LITTLE BIT ABOUT THE
TED TASK FORCE, WHERE, UM,
AGENCY STAFF LOOK AT ALL ASPECTS
OF THE PROJECT AND TRY TO, YOU
KNOW, MAKE SURE FROM SOUP TO
NUTS THAT WE'RE DOING EVERYTHING
WE CAN TO FACILITATE. ONE OF THE
STAGES THAT WE WORK ON IS
INTERCONNECTION. AND I WILL
DEFER TO MY CASE THAT MY
COLLEAGUE FROM CHI SO TO TALK
ABOUT THE GENERATION
INTERCONNECTION PROCESS. UM WELL
, ALL OF THE AGENCIES ARE
PARTICIPATING IN A PROCESS THAT
CASE SO THAT IS LOOKING AT WAYS
TO FACILITATE AND MAKE SURE THAT
WE'RE MANAGING THE
INTERCONNECTION CUES AND THE
BEST WAY POSSIBLE. UM YOU ALSO
RAISED DISTRIBUTION,
INTERCONNECTION AND ENERGY
IZATION. UM AND IN PARTICULAR, I
THINK ENERGY IZATION OF NEW
PROJECTS, WHICH IS BECOMING A
SIGNIFICANT GROWING ISSUE AND
THROUGHOUT THE STATE. UM AND I
SO THIS IS AN ISSUE THAT IS
ARISING BECAUSE OF SIGNIFICANT
CHANGES IN THE DISTRIBUTION
SYSTEM. NEW LOAD COMING ONLINE
ARE EXPECTED INCREASE IN LOAD,
SO CALIFORNIA HAS PRETTY HAD A
PRETTY STABLE LOAD FOR ALMOST 40
YEARS, SO WE HAVEN'T DEVELOPED
PROCESSES TO PLAN FOR
SIGNIFICANT AMOUNTS OF NEW LOAD,
WHICH WE ACTUALLY WELCOME NOW
BECAUSE WE'RE WE WANT TO SEE
INCREASE IN TRANSPORTATION,
ELECTRIFICATION AND BUILDING
ELECTRIFICATION. UM SO WE'RE IN
A TRANSITION PERIOD IN THE
DISTRIBUTION SITE SYSTEM WHERE
WE'RE REALIZING THAT THERE ARE
CAPACITY CONSTRAINTS, IF WE'RE
LOOKING AT ADDING CONCENTRATED
NEW LOAD IN DIFFERENT AREAS. UM
ALL OF THE UTILITIES DO HAVE, UM
, MAPPING AND PORTAL INFORMATION
ON THEIR INTERCONNECTION
CAPACITY. SO THEY HAVE THEIR
SYSTEM MAPPED AND THEY HAVE
INTERCONNECTION CAPACITY, UM
THROUGH PORTALS AND WEBSITES.
WHAT WE'RE WORKING ON DOING, UM
, WITH THE UTILITIES AND
MANAGING THEIR WORK IS, UH,
PLANNING FOR NEW LOADS, SO WE
KNOW THAT THERE ARE EXISTING
CAPACITY CONSTRAINTS. SOME
PLACES ON THE SYSTEM HAVE
EXISTING CAPACITY. SOME DON'T
THE PLACES THAT HAVE CAPACITY OR
NOT NECESSARILY THE ONES WHERE
THE NEW PROJECTS ARE COMING IN.
AND SO WE'RE TRYING TO, UM UH,
LOOK FOR WAYS TO INCREASE THE
COORDINATION BETWEEN LOCAL
GOVERNMENTS BETWEEN DEVELOPERS,
OTHER STAKEHOLDERS AND THE
UTILITIES SO THAT THAT THEY CAN
ACTUALLY PLAN AHEAD. AND MAKE
SURE THAT THE SYSTEM IS READY
FOR INCREASES IN CAPACITY.
THAT'S OF COURSE, DIFFICULT
BECAUSE SOMETIMES THE PLANNING
DOESN'T NECESSARILY IS YOU HAVE
TO GET THE TIMING, RIGHT? YOU
KNOW, WHEN IS THE PROJECT AT THE
RIGHT STAGE? I THINK.
UNFORTUNATELY WE'VE SEEN A LOT
OF INSTANCES WHERE PROJECTS HAVE
BEEN READY AND THE DISTRIBUTION
SYSTEM IS NOT READY. AND SO
THAT'S NOT WHERE WE WANT TO BE.
WE WANT TO GET AHEAD OF THE
CAPACITY NEEDS AND MAKE SURE
THAT THE DISTRIBUTION SYSTEM IS
READY TO GO. THERE IS A
SIGNIFICANT VOLUME OF WORK THAT
IT NEEDS TO BE. E DONE. UM SO I
WON'T SAY THAT WE HAVE ALL THE
ANSWERS. WE DO HAVE EXISTING
PROCEEDINGS AT THE PUC TO WORK
ON THIS ISSUE, AND WE ALSO HAVE
A, UM, ALMOST LIKE AN INFORMAL
STRATEGIC TASK FORCE WITHIN THE
PUC, WHERE STAFF IS AVAILABLE TO
MOBILIZE WITH DEVELOPERS WHEN WE
HEAR OF PROBLEMS, AND SO WE HAVE
BEEN RESPONDING TO INSTANCES
WHERE DEVELOPMENT IS READY OR WE
KNOW DEVELOPMENT IS IMMINENT AND
THE SYSTEM IS NOT WHERE IT
SHOULD BE TO WORK FOR YOU TO
WORK ON, YOU KNOW, ARE WE HAVE
WE DONE? AN ANALYSIS OF THE LOAD
SHAPE OF THE NEW DEVELOPMENT SO
THAT WE KNOW WHAT WHAT IS
NECESSARY FOR THE SYSTEM TO
MATCH IT ALL THERE. ARE THERE
ALTERNATIVES ARE THERE EVEN
TEMPORARY ALTERNATIVE SO WE CAN
GET THOSE PROJECTS ONLINE WHEN
THEY NEED TO WIN AND GET THE
SYSTEM READY SO THAT THE
PROJECTS CAN MOVE FORWARD. I
THINK THAT BECOMES CRITICALLY
IMPORTANT WHEN WE'RE TALKING
ABOUT AN ACUTE SHORTAGE OF
HOUSING IN THE STATE AND HOUSING
THAT'S GOING ALL ELECTRIC AND
HAVING HOUSING PROJECTS READY TO
BE ENERGIZED AND NOT ENERGIZED.
UM THAT'S UM WE'RE SENDING THE
WRONG MESSAGE. IS THERE ON THAT
AND IT'S CAUSING A LOT OF
FRUSTRATION. THAT'S WHY THERE'S
A LARGE VOLUME OF BILLS IN THIS
AREA THIS YEAR TO TRY TO GET OUR
ARMS AROUND THAT I DO HAVE A
BUNCH. IS IT OKAY IF I ASKED ALL
MY QUESTIONS? I'M SORRY. YOU
GUYS WANNA GET COFFEE? UM IT'S
NOT THAT BAD. BUT I NOTED IN THE
THERE'S ALSO CHAIR REYNOLDS AS
WELL, I NOTED IN THE, UM IN YOUR
TOTAL SEPTEMBER NET QUALIFYING
CAPACITY CONTRACT PAGE YOU HAD
THERE. UM 2025 AND 2026. YOU'RE
CONTRACTING ZERO FOR BIOMASS
BIOGAS Y ZERO OR IS THAT THEY
JUST YOU'RE JUST NOT CONTRACTING
OR ARE YOU? JUST NOT? EVERYTHING
ELSE HAS BEEN CONTRACTED. BUT
NOT THAT. SO THESE ARE CONTRACTS
THAT THE LOAD SERVING ENTITIES
REPORT TO US. AND, UM, SO
EVERYTHING THAT THEY HAVE
EVERYTHING THAT HAS RESPONDED TO
AN R F O R R P THAT THE LOAD
SERVING ENTITIES HAVE SENT OUT
AND THEN HAS RESULTED IN A
CONTRACT. SO COME IN LEAST CAUSE
BEST FIT IS REFLECTED ON THE
CHART. WE DO HAVE STATUTORY
MANDATES FOR BIOMASS AND BIOGAS
. AND SO THAT THOSE WE HAVE SEEN
SOME CONTRACTS IN THAT AREA
PURSUANT TO MANDATES, BUT I
EXPECT THAT IT'S JUST AND THE
CONTRACTS COULD BE COMING. SO
THE FUTURE YEARS ARE DON'T
REFLECT WHAT WE WILL ULTIMATELY
SEE. SO I THINK FOR THE NEAR
TERM, YOU'RE PROBABLY SEEING
WHAT IS THE FULL RANGE OF WHAT'S
GOING TO HAPPEN ON THE CHART.
BUT FOR THE OUT YEARS, WE'RE
GOING TO SEE MORE CONTRACTS COME
INTO PLACE JUST JUMPED OUT AT ME
THAT EVERYBODY ELSE WAS
CONTRACTED. BUT THERE WERE ZEROS
THERE, SO OKAY. UM QUESTION FOR
MR BAKER. MR BAKER. YOU HAD A
CHART THAT SHOWED, UM, PRICES
FOR SDG AND E SIGNIFICANTLY
HIGHER THAN SO. CALLISON AND PG
AND E, WHICH WERE KIND OF LUMPED
TOGETHER. SO IS THAT STAGGERED
BECAUSE OF RAPE CASE DECISIONS,
OR, UH OR SOMETHING ELSE? I MEAN
, WHY WHY? WHY IS ONE SO MUCH
HIGHER? UM UH, SAN DIEGO GAS AND
ELECTRIC IS PARTICULARLY HIGH.
UH FOR A COUPLE OF REASONS ONE.
IT HAS LESS INDUSTRIAL LOAD THAN
THE OTHER TWO UTILITIES AND SO
THAT YOU KNOW IF YOU CAN SPREAD
MORE OF THE COSTS OUT OVER MORE
INDUSTRIAL LOAD. YOU CAN
AMELIORATE SOME OF THE FIXED
COSTS. I THINK ANOTHER MAJOR
DRIVER OF THE DISPARITY BETWEEN
UH, SAN DIEGO GAS AND ELECTRIC
AND THE REST OF THE SYSTEM IS
THEY HAVE A VERY, VERY HIGH
PENETRATION OF THEM. ROOFTOP
SOLAR. UM AND, UH, YOU KNOW, IN
SOME CASES IN, UH, WELL, UH, BY
OUR ESTIMATE, ALMOST 20% OF THE
RATE IN THE SAN DIEGO GAS AND
ELECTRIC TERRITORY IS DUE TO
LEGACY NET ENERGY METERED
SYSTEMS. YOU ALSO MENTIONED UM
AND I'M I WAS TRYING TO TYPE
THIS AS I WAS LISTENING TO. YOU
SAID SOMETHING ABOUT JUST IN
GENERAL. INTERCONNECTION AND
TRANSMISSION COSTS ARE
INCREASING AND FAIRLY QUICKLY
AND SO WHY? WHY THE? WHY THE
INCREASE? WHAT'S DRIVING THAT?
WELL, I THINK, UH, PRESIDENT
REYNOLDS TOUCHED UPON, UH, A
COUPLE OF POINTS. BUT ONE IS I
WOULD JUST SAY THE DISTRIBUTION
SYSTEM IS STARTING TO GET OLD
AND IT'S NEEDING AND IT'S
NEEDING A SIGNIFICANT AMOUNT OF
REINVESTMENT. WE'RE ALSO WANTING
TO MODERNIZE DISTRIBUTION
SYSTEM. AND WE'RE WANTING TO
WEAR POSSIBLE HARDEN IT FOR
WILDFIRE. UH YOU KNOW, UH,
CONSIDERATIONS SO BETWEEN THOSE
THREE FACTORS. UM WE'RE PUTTING
CONSIDERABLE AMOUNT OF RESOURCES
INTO THE DISTRIBUTION SYSTEM.
AND AS YOU KNOW, WE'RE ALSO YOU
KNOW THE CASE, SO IS PROJECTING
THROUGH THEIR TPP. UM ANOTHER
$30 BILLION OF INVESTMENTS IN
THE TRANSMISSION IN THE VAULT
TRANSMISSION SYSTEM. UM AND I
SHOULD SAY THAT THAT'S JUST.
FOUR. YOU KNOW, THOSE COSTS ARE
FINANCED. SO THOSE COSTS
ACTUALLY PROBABLY ABOUT TWICE AS
MUCH JUST JUST INCLUDING FINANCE
COSTS, AND NOT INCLUDING ANY
COST OVERRUNS. THANK YOU. THANK
YOU COULD SAY ONE THING, UM, TO
ON YOUR LAST QUESTION, JUST
REALLY QUICKLY. I DO. I DO THINK
THAT THE ONE OF THE AND THIS
GETS TO THE PRICE ISSUE AS WELL.
ONE OF THE, UM YOU KNOW
POTENTIAL BRIGHT SPOTS IN TERMS
OF INCREASING RATES THAT WE'RE
SEEING IS IF WE CAN ELECTRIFY
TRANSPORTATION, UH AND, YOU KNOW
, EVENTUALLY HEATING AND COOLING
RELATIVELY QUICKLY AND ISN'T IN
HIS AND IN AS COST EFFECTIVE WAY
AS POSSIBLE. BECAUSE THAT'S
REALLY ONE OF THE FEW AREAS
WHERE WE HAVE THE POTENTIAL TO
PUT SOME DOWNWARD PRESSURE ON
RATES AGAIN BECAUSE WE CAN
SPREAD THOSE FIXED COSTS OVER
MORE ELECTRONS AND MORE USES SO
THAT THE PUBLIC ADVOCATE'S
OFFICE WE THINK IT'S VERY
IMPORTANT, UM, TO TRY TO
ENERGIZE THOSE COMMUNITIES AS
QUICKLY AS POSSIBLE. IT REALLY
IS, UM, YOU KNOW, UH PART OF THE
REGULATORY COMPACT. THAT UTILITY
HAS AN OBLIGATION TO SERVE.
THERE'S LOAD THERE. WE'D LIKE TO
SEE IT MOVE AS QUICKLY AS
POSSIBLE. IT'S MORE COMPLICATED
THAN THAT. AS THE AS PRESIDENT
REYNOLDS, UH, YOU KNOW, ALLUDED
TO, UM BUT IT YOU KNOW, BUT IT
IS A VERY IMPORTANT ISSUE FOR US
. THANK YOU. UM, MR GUNDA, UM
YOU ALSO REFERENCED INNER
CONNECTION AND TRANSMISSION
PROCESSES. I BELIEVE SO, UM,
JUST MAYBE IN THIS KIND OF A
GENERAL QUESTION FOR EVERYONE.
IS THERE ANY POSSIBILITY THAT
THINGS DON'T TAKE 7 TO 10 YEARS
BEFORE THEY CAN ACTUALLY BEGIN
TO DO SOME OF THESE, OR IS THAT
IS THAT GOING TO BE THE
TIMEFRAME AND THE REASON I'M
SAYING THIS FRAME THIS FOR YOU?
WE'RE LOOKING AT POTENTIAL
OFFSHORE WIND DEVELOPMENT. UM
WE'RE TALKING ABOUT GIGAWATTS OF
POWER. UM. NO CERTAINLY IN
NORTHERN CALIFORNIA. NO CAPACITY
FOR TRANSMISSION THERE AT ALL.
SO WHO WE ARE, ACTUALLY WHEN. DO
WE DO? PEOPLE START PLANNING FOR
THAT? BECAUSE UH, I DON'T KNOW.
HOW WOULD WOULD IT. HOW AWFUL
WOULD IT BE TO HAVE AN AMAZING
NET GREEN RESOURCE THERE AND BE
MIRED DOWN IN A PROCESS WHERE WE
CAN'T MOVE THAT POWER. THANK
YOU. ASSEMBLYMEMBER'S WOULD.
ABSOLUTELY I THINK, UM, JUST
KIND OF ELEVATE YOUR CONCERNS ON
THE INTERCONNECTION TRANSMISSION
ISSUES. I THINK THEY'RE
ABSOLUTELY IMPORTANT TO TACKLE
AND I THINK ABSOLUTELY VÚI. SO
I'LL KIND OF COMMENT ON A COUPLE
OF THINGS AND I'LL PASS TO MY
COLLEAGUE NEIL HERE. UM SO TWO
ELEMENTS SO THAT THE ENERGY
COMMISSION HAS AN OPPORTUNITY TO
WORK WITH KAISER AND CPUC
THROUGH THE IEPER PROCESS TO
REALLY ELEVATE THIS ISSUE, SO
BECAUSE OF THAT WE FOR THE 2023
IEPER, WE'RE REALLY FOCUSING ON
LAYING OUT THE PROBLEM
STATEMENT. OF WHERE THE
INTERCONNECTION ISSUES ARE
COMING FROM REALLY KIND OF
PROVIDE TRANSPARENCY. THIS IS
ONE OF THE QUESTIONS THAT THE
LEGISLATURE ASKED US IN OUR
EARLIER HEARINGS, YOU KNOW? DO
YOU GUYS HAVE A GAN CHART ON ON
WHAT'S HAPPENING, SO THAT'S ONE
OF THE PRODUCTS WE'RE HOPING TO
DEVELOP THIS YEAR IS TO PROVIDE
YOU A FULL, UM, TIMELINE AND
FLOW CHART OF THE
INTERCONNECTION PROCESS, BOTH ON
THE TRANSMISSION SIDE AS WELL AS
THE DISTRIBUTION SIDE. TWO WE
WOULD LIKE TO ELEVATE THE
BARRIERS AND THEN THREE. WE
WOULD LIKE TO SHOWCASE SOME OF
THE SOLUTION MATRIX THAT THE
STAKEHOLDERS ARE PROPOSING. SO
ON THE PROBLEM STATEMENTS SOME
OF THE THINGS THAT WERE ELEVATED
IN THE LAST TWO WORKSHOPS WE HAD
COMES DOWN TO RESOURCES JUST
FUNDAMENTALLY BOTH ON THE
TRANSMISSION SIDE AS WELL AS THE
DISTRIBUTION SIDE FROM THE I O U
S. WHAT WE'VE HEARD IS THIS 2 TO
3 FOLD INCREASE IN THE IN THE
INTERCONNECTION REQUESTS ON BOTH
SIDES IS REALLY JAMMING THE
RESOURCES. WE'RE JUST NOT
EQUIPPED. TO YOU KNOW, IN TERMS
OF RESOURCES TO BE ABLE TO DO
ALL OF THAT WORK RAPIDLY. THAT'S
ONE SECOND WE HEARD ABOUT
POTENTIALLY THE ISSUES AROUND
TRANSPARENCY. HOW FOR EXAMPLE,
IN THE DISTRIBUTION SIDE, WE'VE
HEARD UM WITHIN THE UTILITIES.
NOT ALL DEPARTMENTS WORK
TOGETHER, SO THEY THEMSELVES DO
NOT HAVE TRANSPARENCY ON THE
TOTALITY OF THE ISSUE. AND SO
THAT'S SOMETHING AS A PROBLEM
STATEMENT THAT WAS RAISED AND
THIRD, YOU KNOW, JUST THE SHEER
VOLUME OF DEPLOYING THIS, YOU
KNOW, WITH THE NECESSARY E, UM
UM, NECESSARY WORKFORCE. WHAT
WE'VE HEARD OVER AND OVER IS
IT'S NOT A CONSTRUCTION ISSUE.
IT IS IT'S DEFINITELY LIKE THE
CONSTRUCTION RESOURCES ARE
AVAILABLE BOTH ON THE BACK SIDE
AND THE DISTRIBUTION SIDE BUT
COMES DOWN TO THE PLANNING AND
EARLY EXECUTION SITE, SO I WILL
HAVE NIELSEN COMMENT ON THAT. AS
A PART OF THE SOLUTIONS JUST TO
ELEVATE A COUPLE OF PIECES THAT
ARE MID TERM AND LONG TERM
SOLUTIONS BEING DEPLOYED IN
TERMS OF ENHANCING OUR, UM, OUR
PLANNING RIGHT SO THAT THE
TRANSMISSION QUÊ PROCESS THE
REFORM PROCESS. SIMILARLY ON THE
DISTRIBUTION SIDE, WE HAVE SOME
PROCESSES IN PLACE AND THERE WAS
AN ABSOLUTE ASK FOR BRIDGE
SOLUTIONS. SO ONE PARTICULAR
EXAMPLE TO ELEVATE WE HAVE THIS
IN L. A AREA. WE HAVE A
PARTICULAR CLIENT WHO HAS A LOT
OF ELECTRIC TRUCKS READY TO BE
DEPLOYED, BUT NOT NECESSARILY
HAVE THE ENERGY TO PLUG THEM
INTO AND ONE OF THE CREATIVE
SOLUTIONS THAT THEY ARE DOING
RIGHT NOW IS DEPLOYING SUB
TRANSMISSION AND DISTRIBUTION
LEVEL RESOURCES THAT CAN JUST BE
USED FOR PLUGGING THE LOAD, SO
THOSE WERE ELEVATED AT POTENTIAL
SOLUTIONS OVER THE NEXT YEAR OR
TWO AS THE REST OF THE PROCESSES
CATCH UP. SO I'LL PASS THAT AND
PASS IT TO, UM MILLER BEFORE YOU
CAN FOLLOW UP ON THAT, BECAUSE,
YOU KNOW BECAUSE I'VE HEARD THE
SAME THING. I'VE HEARD THAT IT'S
NOT THE CONSTRUCTION END OF IT.
THERE'S A WORKFORCE. THEY'RE
READY TO GO. THEY CAN ACTUALLY
DO THERE. THERE THERE THERE TO
DO THE WORK, BUT IT IS IN THE
PLANNING PIECE OF IT. AND YOU
JUST SAID YOURSELF THAT YOU'VE
GOT A LOT OF REQUESTS COMING IN
SO THE BOTTLENECK IS THERE. WHAT
ARE YOU DOING TO EXPEDITE THAT?
YEAH SO THAT'S WHERE WE DO NOT
WORK DIRECTLY IN THAT SPACE, SO
I WOULD LOVE FOR, UM VICE
PRESIDENT MILLER TO KIND OF
ANSWER THAT QUESTION. SURE YES,
THANK YOU TO LET ME JUMP IN AND
PROVIDE. I'D LIKE TO PROVIDE
MAYBE A BIT OF A SNAPSHOT OF
WHERE WE'RE AT AND THAT WE
DEFINITELY SEE THE NEED FOR
MAJOR PROCESS CHANGE THAT WE'RE
WORKING ON, ACTUALLY THIS YEAR,
SO JUST IN TERMS OF WHERE WE'RE
AT, UH WE DO HEAR THE CONCERN
ABOUT NEW RESOURCES COMING
ONLINE. YOUR TRANSMISSION BEING
ADDED, AND YOU RESOURCES GETTING
CONNECTED. JUST TO REMIND PEOPLE
WE HAVE BEEN OVER THE LAST TWO
YEARS WE'VE BEEN AVERAGING ABOUT
4000 MEGAWATTS OF NEW INSTALLED
CAPACITY BEING ADDED TO THE GRID
EACH YEAR, AND THIS YEAR, WE
THINK WILL PROBABLY BE BREAKING
THE 8000 MEGAWATTS OF NEW
INSTALLED CAPACITY. NOW. THAT'S
THAT'S. I'D SAY GOOD PROGRESS,
BUT THE CHALLENGE IS TO SUSTAIN
THAT. WITH THE CONCERN ABOUT THE
AVAILABILITY OF ADDITIONAL
TRANSMISSION THAT'S NEEDED TO
BRING MORE RESOURCES ON A
SUSTAINED BASIS. YEAR OVER YEAR
. WE DID TRY TO PILOT ABOUT A
YEAR AND A HALF AGO AND TOOK THE
YOUNG PRECEDENTED STEP OF
ACTUALLY PUBLISHING THE LIST OF
ALL THE PROJECTS IN OUR
INTERCONNECTION QUÊ THAT COULD
GET CONNECTED EITHER WITH NO NEW
TRANSMISSION UPGRADES NECESSARY
THEY JUST NEEDED TO GET
CONNECTED. OR THAT RELIED ON
TRANSMISSION THAT WAS ALREADY
APPROVED AND MOVING FORWARD IN
THROUGH THE CONSTRUCTION
PROCESS, AND THAT TOTAL THAT THE
TIME ABOUT 20,000 MEGAWATTS OF
NEW CAPACITY, SO THAT SHOWS THAT
THERE'S A GOOD START ON MOVING
ON THESE PROJECTS. BUT AS WE
MOVE FROM AN AVERAGE OF NEEDING
TO ADD SEVERAL 1000 A YEAR TO
7000 MEGAWATTS OF NEW INSTALLED
CAPACITY. YEAR OVER YEAR. THOSE
PROCESSES WERE NOT GOING TO BE
SUSTAINABLE. THAT'S WHERE WE SAW
THAT WE DO NEED TO DO MUCH MORE
TO TIGHTEN THE LINKAGE BETWEEN
THE RESOURCE PLANNING
TRANSMISSION PLANNING THE
INTERCONNECTION PROCESS AND
ACTUAL RESOURCE PROCUREMENT,
BECAUSE ONE OF OUR CHALLENGES IS
KEEPING SO MANY PROJECTS ALIVE.
SO THAT THEY CAN BE CHOOSED FROM
IN THE PROCUREMENT STAGE. AND
JUST TO HIT SOME NUMBERS ON THAT
WE CURRENTLY HAVE 180,000
MEGAWATTS OF CAPACITY IN OUR
INTERCONNECTION QUÊ THAT IS
LOBBYING FOR A P P A SO THAT
THEY COULD MOVE FORWARD. ALSO
THIS APRIL, WE RAN ANOTHER OPEN
WINDOW FOR NEW APPLICATIONS AND
RECEIVED 541 APPLICATIONS
TOTALING 354,000 MEGAWATTS OF
CAPACITY THAT IS COMPETING TO BE
THE LUCKY ONES WHO GET A POWER
PURCHASE AGREEMENT AND MOVE
FORWARD. SO WE NEED TO TIGHTEN
OUR PROCESSES TO WINNOW DOWN
THAT EXCESSIVE LEVEL OF
COMPETITION SORT OUT. WHO'S
GOING TO ACTUALLY BE SUCCESSFUL
AND GET THE TRANSMISSION AND
INTERCONNECTIONS MOVING FOR
THOSE PARTICULAR PROJECTS?
BECAUSE OTHERWISE HAVING THIS
EXCESSIVE VOLUME, CLAMORING TO
GET CONNECTED, UM, AS YOU MIGHT
HAVE GUESSED, THEY'RE ALL SAYING
THERE IS NO TRANSMISSION FOR US
, BUT MANY OF THEM ARE COMING IN
AT THE END OF A VERY LONG LINE.
SO THIS IS WHERE WE DO NEED TO
TIGHTEN THE LINKAGE ACROSS THE
SPECTRUM. THE RESOURCE PLANNING
SIDE AND THE TRANSMISSION
COORDINATION I FEEL IS MOVING
FAIRLY WELL AT IDENTIFYING THE
KEY AREAS WHERE THE TRANSMISSION
SYSTEM IS BEING REINFORCED TO
ALLOW GENERATION TO CONNECT. AND
THAT'S SOMETHING THAT WE'VE BEEN
WORKING VERY WELL WITH THE
PUBLIC UTILITIES COMMISSION AND
THE ENERGY COMMISSION ON AND IN
THIS YEAR'S TRANSMISSION PLAN.
WE REALLY TOOK EXTRA EFFORTS TO
CALL OUT THOSE ZONES WHERE THE
TRANSMISSION SYSTEM IS BEING
REINFORCED, BECAUSE THOSE ARE
AREAS THAT AS A MATTER OF STATE
POLICY. THOSE ARE THE AREAS
WHERE THE RESOURCES SHOULD BE
GETTING DEVELOPED. THOSE ARE THE
GOOD AREAS. THEY'VE GOT THE
RIGHT ATTRIBUTES THE LAND USE
AND THAT WE'RE FOCUSING THE
TRANSMISSION. BUT AT THE SAME
TIME WE DO NEED TO GET OUR ARMS
AROUND THIS HYPER LEVEL OF
COMPETITION FOR BEING THE ONES
THAT ACTUALLY GET CONNECTED
BECAUSE ADDING 354,000 MEGAWATTS
ON TOP OF 100 AND 80,000, THAT'S
ALREADY IN PROCESS. THAT'S JUST
NOT A GOOD USE OF IN PLANNING
AND ENGINEERING RESOURCES, AND
TO BE BLUNT. IT'S A DISTRACTION.
SO THIS IS SOMETHING WE'RE
WORKING ON INSIDE, UH, LOOKING
AT OUR PROCESSES RIGHT NOW HOW
WE CAN TIGHTEN THE LINKAGES IN
COLLABORATION WITH THE ENERGY
COMMISSION AND THE PUBLIC
UTILITIES COMMISSION TO PUT
SHARPER FOCUS BOTH WITH THE
RESOURCE DEVELOPMENT COMMUNITY
AS WELL AS WITH THE PEOPLE
ACTUALLY SIGNING POWER PURCHASE
AGREEMENTS. TO BE BUYING THE
RESOURCES OUT OF THOSE AREAS TO
BE SIGNING THOSE CONTRACTS
EARLIER SO THAT WE CAN FOCUS ON
THE PROJECTS THAT ARE MOVING
FORWARD AND ACTUALLY GET THE
TRANSMISSION BUILT THAT THEY
SPECIFICALLY NEED. I THINK WE'RE
MAKING VERY GOOD PROGRESS ON
IDENTIFYING AND MOVING FORWARD
ON THE BIG, LONGER LEAD TIME
PROJECTS. BUT THE LOCAL AREA
PROJECTS THAT DEPEND ON WHICH
SPECIFIC PROJECTS ARE GOING TO
GET A CONTRACT THAT DOES TAKE
THAT'S WHERE WE ALSO NEED TO
REALLY SHARPEN UP. NOW YOU ALSO
MENTIONED OFFSHORE WIND AND I
REALLY WANTED TO MAKE A POINT OF
THAT CIRCLING BACK TO THAT,
BECAUSE IN IN THE TRANSMISSION
PLAN THAT WE'RE BRINGING TO OUR
BOARD OF GOVERNORS FOR APPROVAL
IN TWO DAYS, WE DID FOCUS
PRIMARILY ON THE TRANSMISSION
REQUIRED. UH FOR A LOT OF THE
SOUTHERN CALIFORNIA REQUIREMENTS
, INCLUDING SOME IMPORTS FROM
OUT OF STATE. AS WELL AS THE
RESOURCE DEVELOPMENT AREAS IN
SOUTHERN CALIFORNIA. WE ALSO
STUDIED SENSITIVITY CASES FOR
WHAT IT WOULD LOOK LIKE TO
ADDRESS THE NORTH COAST
REQUIREMENTS. AND THE PUBLIC
UTILITIES COMMISSION HAS ALREADY
PROVIDED US RENEWABLE GENERATION
PORTFOLIOS TO BE THE BASIS OF
NEXT YEAR'S TRANSMISSION PLAN
THAT WILL DRIVE US A YEAR FROM
NOW. WE WILL BE ASKING OUR BOARD
OF GOVERNORS TO APPROVE THE
FIRST WAVE OF MAJOR TRANSMISSION
REACHING TO THE NORTH COAST TO
ADDRESS OFFSHORE WIND
REQUIREMENTS. SO WE STUDIED
DIFFERENT ALTERNATIVES WE HAVE
THE YEAR WE HAVE THE INFORMATION
WE NEED AND NEXT YEAR BY THIS
TIME WE WILL BE MOVING FORWARD
WITH RECOMMENDATIONS ON THE
FIRST WAVE OF TRANSMISSION TO
ADDRESS THOSE NORTH COAST
OFFSHORE WIND REQUIREMENTS. NOW
WHEN WE LOOK AT THAT WE DO HAVE
TO CONSIDER THE DIFFERENT
ALTERNATIVES AND PERMITTING NONE
OF THESE ALTERNATIVES WILL BE
EASY. UH WE DO RECOGNIZE THAT
PERMITTING CHALLENGES WILL BE
SEVERE, AND WE WILL BE LOOKING
FOR WHATEVER HELP WE CAN GET IN
HELPING MANAGE THOSE PERMITTING
REQUIREMENTS TO GET THAT
TRANSMISSION PERMITTED AND
APPROVED AND ONLINE AS QUICKLY
AS POSSIBLE. THANK YOU. I HAVE
JUST TWO OTHER THINGS. AND THEN
I'LL BE DONE. I PROMISE YOU,
THANK YOU. THANK YOU. UM MR
GUNDY, YOU SAID IN YOUR EIGHT
YOUR HANDOUT YOU HAVE 2023 I E P
R THEME ACCELERATING CLEAN
ENERGY CONNECTION. IS THAT A
REPORT? IS THAT JUST YOUR THEME
FOR THE YEAR? I MEAN, HELP ME
UNDERSTAND WHAT THAT IS? YES SO
THE INTEGRATED ENERGY POLICY
REPORT IS A REPORT THAT THE
ENERGY COMMISSION BY STATUTE IS
REQUIRED TO PRODUCE EVERY YEAR.
TWO AS A PART OF THE HYPER, UM,
A NUMBER OF THE BILLS THAT WE
HAVE RIGHT NOW PROVIDES SPECIFIC
REQUEST TO BE INCLUDED IN THE
HYPER, WHICH INCLUDES
FORECASTING IN THE SOME OF THE
HYDROGEN ISSUES OR NATURAL GAS,
BUT ALSO EVERY YEAR COLLECTIVELY
GETTING STAKEHOLDER INPUT AS
WELL AS INPUT AND CONSULTATION
FROM PUC. CARBON CAISO, WE
DEVELOPED KEY TEAM. TO
INVESTIGATE, AND THIS YEAR WE
ALL AGREED THAT INTERCONNECTION
ISSUES IS THE MOST IMPORTANT
THING TO DIVE INTO. AND THEN MY
FINAL QUESTION, AND IT'S
PROBABLY NOT ANSWERABLE, BUT
THAT'S OKAY. I'M GOING TO ASK IT
ANYWAY. BASED ON EVERYTHING I'M
HEARING HERE. THESE ARE REALLY
LONG TERM CHALLENGES FOR US SO
FAST FORWARDING FOUR YEARS FROM
NOW. IF WE HAVEN'T GOTTEN MADE
ENOUGH PROGRESS. ARE WE GONNA
MAKE ENOUGH PROGRESS FOR US TO
BE ABLE TO RETIRE DIABLO OR WE
POTENTIALLY GOING TO BE KIND OF
MOVING ALONG. AND STILL
STRUGGLING TO GET OUR GREEN
ENERGY TRANSMITTED AND
INTERCONNECTED. AS. WE THOUGHT
WE WERE GOING TO. WE HOPE WE ARE
GOING TO SO HARD. MAYBE YOU
DON'T HAVE THE ANSWER FOR THAT.
BUT I'M HEARING A LONG TIME. I'M
HEARING A LOT OF PROCESSES.
LONGER TERM, AND THAT'S NOT
CONSISTENT WITH WHAT WE I
THOUGHT WE WERE DOING WITH THE
EXTENSION OF DIABLO. SO HARD
QUESTION. MAYBE YOU DON'T HAVE
AN ANSWER, BUT IT'S JUST AND
THAT'S JUST MY INSTINCT, SO MY
INSTINCTS CAN BE WRONG
SOMETIMES, BUT NOT WRONG ALL THE
TIME. SO. I'M HAPPY TO JUST TAKE
A STAB AT AT LEAST MAKING A
COMMENT ON THAT AND SAY THAT, UM
, IT'S A CHALLENGE, BUT WE ARE
PLANNING THE SYSTEM TO BE
RELIABLE. COST EFFECTIVE WITHOUT
DIABLO. SO IN OUR PANTS PLANNING
PROCESSES WERE TAKING TO INTO
ACCOUNT. WHAT CAN WE DO WITHOUT
THAT RESOURCE? UM, SO THAT THEN
WE CAN BE IN A POSITION TO LET
IT GO. UM BUT, OF COURSE, AND
YOU KNOW, I DON'T MEAN THIS AS
AN EXCUSE. I MEAN IT AS A AS A
PLACING IMPORTANCE ON THIS ISSUE
AND LOOKING FORWARD TO THE
PARTNERSHIP WITH THE LEGISLATURE
AND SORTING THROUGH THE ISSUES
AS THEY COME UP IS THAT WE'RE
LOOKING. WE'RE WORKING ON
TRANSITIONING OUR ENTIRE
ELECTRICAL SYSTEM AT THE SAME
TIME THAT THE IMPACTS OF CLIMATE
CHANGE ARE HITTING US. AND SO
IT'S YOU KNOW, I REALLY
APPRECIATE THE ATTENTION THAT
YOU'RE PLACING ON THESE ISSUES
AND YOU SHOULD KNOW THAT WE'RE
ALSO TAKING THEM VERY SERIOUSLY
. THANK YOU AND I AND I'LL JUST
I'LL JUST END WITH THIS, I
THINK, UM, YOU KNOW, WE DO WANT
TO BE PARTNERS AND SO WHEN WE
WHEN I THINK OF PARTNERSHIPS, I
THINK OF PEOPLE BRINGING US
IDEAS OR CHALLENGES THAT WE NEED
TO THAT WE COULD COLLECTIVELY
SOLVED TOGETHER AND THAT, UM YOU
KNOW, IT'S A TWO WAY STREET. WE
PUT THINGS OUT THERE BECAUSE
WE'RE TRYING TO SOLVE PROBLEMS,
BUT WE I WOULD WELCOME YOUR
AGENCY'S BRINGING US POTENTIAL
SOLUTIONS THAT WE AS A
LEGISLATURE CAN DEBATE AND MOVE
FORWARD THROUGH THE PROCESS AND
FUND HOPEFULLY THROUGH THE
BUDGET TO EXPEDITE SOME OF THESE
THINGS. SO THANK YOU VERY MUCH.
THANK YOU VERY MUCH, MR CHAIR
AND THE MEMBERS OF THE COMMITTEE
THAT I DON'T SIT ON. NO. I JUST
WANTED TO HIGHLIGHT THAT IN THE
8 46 BILL THAT YOU KNOW THAT
LEGISLATIVE REQUESTED US TO LOOK
AT ALTERNATIVES OF TWO DIABLO,
AND THAT REPORT IS GOING TO COME
IN SEPTEMBER. JUST WANTED TO
HIGHLIGHT THAT THAT'S
EARTHWORKS. THANK YOU. THANKS
DOCTOR. WOULDN'T YOU'RE ALWAYS
WELCOME TO SIT IN WITH US ON
THESE MATTERS. NEVER LEWIS RACE.
YES THANK YOU, DOCTOR WOULD I
THINK IT IS IMPORTANT AND I
APPRECIATED THAT THE QUESTIONS
WERE VERY METHODICAL. THEY WERE
VERY DETAILED, AND THEY SHOWED
THE PROBLEM THAT WE HAVE, AND
THAT'S HOW LONG THIS IS ALL
GOING TO TAKE. WE DO WANT TO
RELIABILITY, BUT THERE IS
SOMETHING TO BE SAID ABOUT
GETTING THERE SOONER RATHER THAN
LATER BECAUSE THERE WERE
REPRESENTATIONS WHEN WE KEPT
DIABLO CANYON OPEN. UM AND BASED
ON THOSE REPRESENTATIONS, MANY
OF US VOTED BECAUSE IT WAS GOING
TO BE A SHORT FIX. UM, JUST TO
TIDE US OVER. UM BUT I'M HEARING
THE SAME THING AS THE QUESTIONS
ARE ASKED AND VERY DETAILED. I
APPRECIATE THAT ABOUT HOW LONG
THIS IS REALLY GOING TO TAKE AND
PROBLEMS THAT SOME OF US MAY NOT
HAVE TO DEAL WITH. BUT THE NEXT
COHORT OF LEGISLATORS WILL HAVE
TO DEAL WITH IT, AND IT'S WE'RE
STARTING ALL OVER AGAIN. WITHOUT
THE INSTITUTIONAL KNOWLEDGE, BUT
UM, I DID HAVE A QUESTION FOR
PRESIDENT REYNOLDS. UM I'M
HOPING THAT YOU CAN SPEAK A BIT
ABOUT THE CPU SEES RESOURCE
ADEQUACY METHODOLOGY. UM I'M
CONCERNED THAT IT MAY TIP THE
SCALE IN FAVOR OF FOSSIL FUEL
RESOURCES OVER CLEAN ENERGY, AND
I'M HOPING I'M THAT'S NOT
ACCURATE, BUT IT KIND OF SEEMS
LIKE IT IS, UM AND IF IT IS
ACCURATE, WHAT POTENTIAL
IMPROVEMENTS CAN BE PUT INTO
PLACE TO ENSURE OUR RESOURCES
FOR RELIABILITY MIX ARE CLEAN.
UH HUH. SURE I'M I'M HAPPY TO
ANSWER. UM I SO OUR INTENT AT
THE PUC IS TO USE THE RESOURCE
ADEQUACY PROCESS TO FACILITATE
CLEAN ENERGY. SO REALLY, IT'S
NOT MEANT TO ENCOURAGE FOSSIL
FUELS. JUST WHAT WE'RE TRYING TO
DO IS GET AWAY FROM FOSSIL FUELS
, AND WE HAVE THE MOST STRINGENT
GREENHOUSE GAS REDUCTION GOALS
IN OUR INTEGRATED RESOURCE PLAN
PROCESS. UM WHICH IS WHERE THE R
A. THE RESOURCE ADEQUACY PROGRAM
TEES OFF OF THAT WE'VE EVER HAD
, SO WE'RE MOVING TO REDUCE
GREENHOUSE GAS EMISSIONS
THROUGHOUT THE SYSTEM. UM THE
RESOURCE ADEQUACY REQUIREMENTS
ARE BEING REVISED. WE HAVE
PROPOSALS TO UPDATE THE
REQUIREMENTS. WE'RE WE'RE
LOOKING AT A SLICE OF DAY MODEL
WHERE THE LOAD SERVING ENTITIES
NEED TO THINK ABOUT LOAD AND
THINK ABOUT ADEQUATE RESOURCES
FOR EVERY HOUR OF THE DAY. UM
GIVEN THE FLUCTUATION OF DEMAND
AND INTERMITTENT SEA OF
GENERATION RESOURCES WE'VE TAKE
. WE'RE TAKING CLIMATE CHANGE
INTO ACCOUNT IN OUR METRICS AS
WELL BY CHANGING THE VALUES OF
RESOURCE ADEQUACY, UM, PRODUCTS
SO THAT THEY REFLECT THE ACTUAL
VALUE TO THE SYSTEM. UM, DURING
THAT HOUR OR SO WE'RE TAKING
WE'RE MAKING UPDATES TO MORE
ACCURATELY REFLECT THE RESOURCE
ADEQUACY TOOLS THAT THE LOAD
SERVING ENTITIES BRING INTO THE
MIX TO MAKE SURE THAT THEY'RE
ACTUALLY WORKING. UM YOU MAY BE
REFERRING TO A BRIDGE RESOURCE
DECISION THAT WE MADE RECENTLY
MADE THAT ALLOWS LOAD SERVING
ENTITIES IF THEY NEED TO HAVE A
RELIABILITY BRIDGE TO TAKE THEM
TO A CLEAN ENERGY PRODUCT, UM,
THAT THEY ARE ALLOWED FOR A
SHORT PERIOD OF TIME TO CONTRACT
FOR. I BELIEVE IT'S FOR EXPORTS
. UM THAT MAY BE FOSSIL FUEL
EXPORTS SO THEY CAN USE AN ASARI
AND IMPORT EXCUSE ME SO THEY CAN
USE AN IMPORT INTO CALIFORNIA
WHILE A CLEAN ENERGY PROJECT IS
COMING ONLINE, AND THAT'S
BECAUSE WE REALIZE THAT
RELIABILITY IS ABSOLUTELY
CRITICAL FOR A CLEAN ENERGY
FUTURE. I'M JUST HOPING THAT
ABSOLUTELY WE NEED THE RIGHT
RELIABILITY, BUT WE HAVE TIME TO
PLAN TO MAKE SURE THAT AS WE'RE
LOOKING AT THIS RELIABILITY MIX
THAT WE DON'T ALLOW THE FOSSIL
FUEL THE DIRTY FOSSIL FUEL TO
COME IN, UM, THAT THAT BE
LIMITED AS MUCH AS POSSIBLE SO
THAT WE REALLY ARE GOING GREEN
RECOGNIZED. WE'RE LOOKING AT
LOTS OF PLANNING. BUT IF WE
DON'T MAKE A IF WE AREN'T
INTENTIONAL ABOUT IT. I'M
CONCERNED THAT IT WILL NOT BE AS
GREEN AS IT SHOULD BE. THANK
YOU. AND IF I MAY HERE. FOR MR
GUNDA. UM I WANTED TO QUOTE THE
BACKGROUND PAPER IN REFERENCE TO
THE RECENT PROCUREMENT ORDERS
THE LEGISLATURE'S MANDATED AND I
QUOTE THIS PROCUREMENT ORDERS
ALSO SUGGEST THAT THE HISTORIC
PLANNING EFFORTS OF THE ENERGY
AGENCIES MAY BE INADEQUATE TO
MEET OUR CURRENT NEEDS AND MUST
ALSO URGENTLY EVOLVED. TO ENSURE
RELIABILITY AT LEAST AT LEAST
COSTS WHILE TRANSITIONING THE
ELECTRICITY SECTOR TO MEET OUR
CLEAN ENERGY GOALS. HOW ARE BOTH
COMMISSIONS ADAPTING TO MEET
THESE EVOLVING NEEDS, AND THEN
AND AS A FOLLOW UP? I KNOW WE
HAVE. WE'VE DONE HISTORIC AND
MAJOR PROCUREMENT RECENTLY. BUT
IF OUR PLANNING PROCESS THROUGH
THE INTEGRATED RESOURCE PLANS
AND THE INTEGRATED ENERGY POLICY
REPORTS ARE NOT PLANNING FOR OUR
CURRENT NEEDS DOES THEIR NEEDS.
DOES THERE NEED TO BE ADDITIONAL
CHANGES TO HOW WE FORECAST
ENERGY DEMAND? ABSOLUTELY
ASSEMBLYMEMBER'S SO JUST KIND OF
ONE ANSWER THAT QUESTION BY
ELEVATING JUST TO A HIGHER
LEVEL, SO AS YOU NOTED THE
ENERGY COMMISSION, UM, DEVELOPS
THE FORECAST, WHICH THEN FLOWS
INTO THE I R P. THE INTEGRATED
RESOURCE PLANNING FOR THEM TO
CONSIDER WATER RESOURCES TO BE
PROCURED. HISTORICALLY WE HAD A
FEW CHALLENGES WHICH WERE
RAPIDLY FIXING. SO FIRST IS, ARE
WE ACTUALLY HAVING ENOUGH
CLIMATE CHANGE IMPACTS? UH,
BAKED INTO THE ENERGY FORECAST.
OVER THE LAST 2 TO 3 YEARS, 2 TO
3 YEARS SINCE 2020. WE HAVE DONE
A LOT OF WORK TO INCORPORATE
CLIMATE CHANGE, AND WE'RE GOING
TO CONTINUE TO DO SO MORE AND
MORE GEOGRAPHIC DESEGREGATION
AND TEMPORAL DESEGREGATION, SO I
THINK THAT'S THAT WE ARE DOING A
GOOD JOB ON TWO. WE HAD AN ISSUE
WHERE YOU KNOW THE FORECAST, YOU
KNOW THAT'S PROVIDED TO THE CPUC
MIGHT BE STILL, BY THE TIME THEY
STARTED PROCEEDING AND THE
PROCEEDING IN TWO YEARS, SO AS A
PREEMPTIVE SOLUTION, THE CPUC
REQUESTED THAT SISI BEGINS TO
BAKING MODE OF A SCENARIO BASED
FORECAST. ESPECIALLY ON
ELECTRIFICATION GOALS. SO AS OF
LAST YEAR, WE TRANSITIONED THE
HIGHER ELECTRIFICATION, WHICH WE
USED TO CALL IT A SENSITIVITY
INTO MORE OF A PLANNING
SCENARIO, SO BOTH ON THE
ELECTRIFICATION SIDE AS WELL AS
THE CLIMATE CHANGE SIDE, WE'VE
MADE SIGNIFICANT PROGRESS IN THE
IN THE LAST COUPLE OF YEARS TO
JUST GIVE YOU THE MAGNITUDE IF
WE LOOK AT THE FORECAST FOR 2023
34 YEARS AGO IN A 14 VINTAGES
AGO. IT WAS A COUPLE OF 1000
MEGAWATTS BELOW AND NOW WE KNOW
WE FEEL LIKE WE CAUGHT UP WITH
WITH SOME OF THAT, AND GIVEN
THAT WE ARE CUSHIONING MORE AND
MORE BOTH ON THE CLIMATE AND, UM
, THE ELECTRIFICATION SIDE, WE
BELIEVE AT LEAST WE'RE STANDING
WITH THE BETTER PLANNING
SITUATION. SO THEN THAT GOES
INTO THE PROCESS. FOR THEM TO
KIND OF EVALUATE TWO ELEMENTS.
ONE IS YOU HAVE THE FORECAST,
BUT HOW IS THE DISTRIBUTION OF
FORECAST GONNA LOOK LIKE GIVEN
THIS EXTREME WEATHER EVENTS AND
SO THAT'S WHERE WE ARE MAKING
THE NEXT PROGRESSES, YOU KNOW,
LET'S TAKE, UM LET'S TAKE THE
OVERALL FORECAST. BUT WE NOW
UNDERSTAND THAT THE TAIL EVENTS
ARE BECOMING LONGER AND LONGER.
SO HOW FAR DOWN THE TAIL EVENT
DO WE WANT TO BE ABLE TO COVER
THROUGH STANDARD PLANNING
PROCESSES, AND THAT'S SOMETHING
THAT CPUC IS WORKING REALLY HARD
ON BOTH BAKING THAT INTO THE
ANALYSIS, BUT ALSO EVALUATING
THESE SOURCES LIKE SOLAR WIND
MORE APPROPRIATELY IN THE IRP
PROCESS, SO WITH THAT WE FEEL
LIKE WE'RE ON A GOOD FOOTING.
BUT AS YOU NOTED, WE HAVE TO
CONTINUE TO MAKE THE STUFF.
THANK YOU. THANK YOU, MR CHAIR.
THANK YOU QUESTIONS, PLEASE. HE
HAS THE ANSWERS, SO I WAS GOING
TO LET HIM GO FIRST. UM THANK
YOU, MR CHAIR FOR CONVENING US,
AS ALWAYS, AND THANK YOU ALL FOR
BEING HERE TO SHARE YOUR
EXPERTISE WITH US. UM I THINK
IT'S YOU KNOW, JUST CONTINUING
ON WHAT THE MAJORITY LEADER WAS
TALKING ABOUT. UM RELIABILITY IS
SO CRITICALLY IMPORTANT. UM AS
YOU ALL, I'M SURE WHERE MY
DISTRICT ONE OF THE HARDEST HITS
BY THE PS PS IS A FEW YEARS AGO,
AND WE SAW WHAT IT WAS LIKE TO
LIVE WITHOUT. ELECTRIFICATION
FOR MORE THAN A WEEK IN SOME
AREAS AND PEOPLE DIED, RIGHT. I
MEAN, SENIORS, UM, HAD FALLS
THAT WERE UNANTICIPATED BECAUSE
OF THE LACK ELECTRICITY, NOT TO
MENTION THE FOLKS WHO NEED
ELECTRICAL DEVICES TO SURVIVE.
SO RELIABILITY IS CRITICALLY
IMPORTANT. AND I THINK THAT THAT
BEING OUR FOREMOST UM THING THAT
WE'RE PAYING ATTENTION TO MAKE
SENSE, BUT I THINK THAT THEY
WOULD MAJORITY LEADER WAS
TOUCHING ON ABOUT OUR GREEN
ENERGY FUTURE IS REALLY, REALLY
IMPORTANT, AND WE NEED TO MAKE
SURE THAT WE'RE NOT MOVING
TOWARDS DECARBONIZATION AND
ELECTRIFICATION AND THEN JUST
ELECTRIFYING THOSE DEVICES WITH
DIRTY ENERGY, BECAUSE THAT
DOESN'T GET US TO WHERE OUR
CLIMATE GOALS WANT US TO GET TO
AND YOU KNOW, I REPRESENT THE
TRI VALLEY WHERE WE DO A FAIR
AMOUNT OF WIND AND SOLAR, UM
LARGE SCALE SOLAR AND I SEE HOW
HARD IT IS TO GET THOSE PROJECTS
BUILT TO GET THEM ONLINE.
EVERYONE THINKS THE WHOLE VALLEY
IS GOING TO TURN INTO CLEAN
ENERGY. IT'S NOT POSSIBLE
BECAUSE YOU CAN'T CONNECT INTO
THE GRID AND ALL PARTS OF THE
VALUE HAVE TO IT IN VERY
SPECIFIC PLACES. AND SO WE HAVE
THESE LAUDABLE GOALS AND WE NEED
TO MAKE SURE WE'RE MOVING
TOWARDS THEM WHILE ALSO
BALANCING THAT WITH OUR
ENVIRONMENTAL GOALS. UM AND SO I
REALLY WANTED TO TOUCH ON A
LITTLE BIT OF WHAT THE BRIEFING
PAPERS TALKED ABOUT. REGARDING
AND I KNOW WE HAD A WHOLE
HEARING OR WHOLE HEARING A
HEARING WHERE WE DISCUSSED THE
PROPOSAL FOR DWR TO BE DOING
CENTRAL PROCUREMENT, WHICH I
KNOW IS SOMETHING THAT IS REALLY
A FOCUS OF OUR RELIABILITY, BUT
I WAS STRUCK BY HOW MUCH OF THAT
ENERGY IF NOT ALL, BECAUSE WE
DON'T REALLY CLARIFY WHAT WE'RE
IMPORTING. BUT MY UNDERSTANDING
IS A LOT OF OUR IMPORTANT ENERGY
IS NOT CLEAN ENERGY. IF WE EVEN
KNOW WHAT WE'RE IMPORTING, AND
THEN THE REST WAS ALL DIESEL AND
NATURAL GAS GENERATOR IS PEAKER
PLANTS, ETCETERA. UM SO THAT WAS
STRIKING TO ME. I MEAN, IT WAS
LAID OUT HERE THAT THE DWR
CENTRAL PROCUREMENT PROCESS TO
DATE, WHICH AGAIN IS ONLY A
SHORT PERIOD OF TIME WASN'T
MOVING US ANYWHERE NEAR OUR
CLEAN ENERGY GOALS. UM AND I
DON'T YOU KNOW, AND WE'RE BEING
ASKED TO MAKE THAT A MORE
PERMANENT SOLUTION, AND I THINK
THAT WE HAD A REALLY ROBUST
CONVERSATION AND COMMITTEE ABOUT
THAT. AND TALKING ABOUT HOW
THERE IS A ROLE FOR THAT, BUT
MAYBE IT IS LONG TERM. UM
RESOURCES THAT NEED THAT KIND OF
PROCUREMENT. BUT GET US TO OUR
CLEAN ENERGY GOALS. THE OFFSHORE
WIND THAT WE HEARD MY COLLEAGUE
TALKING ABOUT AND ETCETERA
RATHER THAN IMPORTING DIRTY
ENERGY. UM SO I JUST WANTED TO
TOUCH ON THAT. UM, AND THEN WE,
YOU KNOW. WE TALK A LOT ABOUT,
UM DEMAND SIDE, RIGHT DEMAND
REDUCTION. WE TALK ABOUT THESE
DISTRIBUTED BACKUP ASSETS. YOU
KNOW, I HAD A BILL A FEW YEARS
AGO FOCUSED ON THOSE BEHIND THE
GRID RESOURCES BECAUSE WE KNEW
IN 2020. WHEN THE LIGHTS WERE
GOING OUT THAT WE ACTUALLY HAD
ENOUGH ENERGY ON THE GRID IN
THOSE DISTRIBUTED RESOURCES TO
KEEP THE LIGHTS ON, BUT WE'RE
NOT ACCESSING THEM. AND SO I'M
REALLY WANTED TO TOUCH ON THAT
PIECE OF IT, BECAUSE I DO THINK
THAT DISTRIBUTE RESOURCES. AND
THOSE ASSETS AND ENSURING THAT
WE ARE OFFLOADING THOSE ASSETS
IN TIMES OF NEED IS REALLY
CRITICAL, AND I KNOW IT'S BEEN
SOMETHING THAT'S BEEN SLOW IN
THE MAKING AT THE PUC, BUT IT'S
REALLY IMPORTANT SO I DON'T KNOW
IF PRESIDENT REYNOLDS YOU WANT
TO TOUCH ON THAT DISTRIBUTED
ENERGY BACKUP RESOURCE PROJECT
THAT IS, I THINK ONGOING AT THE
PUC SURE, AND I'LL ALSO TURN TO
MY COLLEAGUE VICE CHAIR GLINDA
BECAUSE I THINK THE BACKUP
RESOURCES THAT YOU'RE TALKING
ABOUT IS SOMETHING THAT HE CAN
ADDRESS. UM AND, UM, WE HAVE
BEEN WORKING ON DISTRIBUTED
ENERGY RESOURCES IN PROCEEDINGS
AT THE PC IN ORDER TO, UM
INCENTIVIZE AND VALUE THEM.
THERE'S A LOT OF INTEREST IN BY
CERTAIN PROVIDERS AND GETTING
RESOURCE ADEQUACY VALUE. AND SO
WE'RE TRYING TO FIGURE OUT WAYS
TO DO THAT, UM, WE HAVE SOME
PILOTS FOR VIRTUAL POWER PLANTS.
UM THAT WE'RE PURSUING, AND
TRYING TO MAKE SURE THAT THEY
WORK THE WAY THAT THEY'RE
SUPPOSED TO WORK WITH THE GRID
SO THAT THEY PROVIDE THE VALUE
THAT WE'RE LOOKING FOR. UM SO
THAT WORK IS ONGOING. AND WE'RE
ALSO, UH, I'M DOING
COLLABORATIVE WORK WITH THE CC
AND LOOKING FOR WAYS TO REALLY
MAXIMIZE ALL OF THOSE DEMAND.
RESPONSE. UM UH, OPTIONS AND
THEN I'LL JUST NOTE. UM AND YOU
KNOW YOU'RE ABSOLUTELY RIGHT
THAT WE NEED TO AVOID DIRTY
RESOURCES THAT COME IN FROM OUT
OF STATE. UM AS WELL AS RELYING
ON THE FOSSIL FUEL RESOURCES
FROM RELIABILITY. WE NEED TO
MOVE FORWARD WITH CLEAN ENERGY.
BUT A LOT OF THE IMPORTS THAT WE
GET OUR HYDRO FROM THE
NORTHWEST. AND SO JUST KEEP THAT
IN MIND AS YOU THINK ABOUT
IMPORTS THAT IT'S SOME OF IT IS
HYDRO. YOU KNOW? THANK YOU,
PRESIDENT WELLS. THANKS THANK
YOU. SOMEBODY MEMBER JUST A
COUPLE OF POINTS THAT YOU RAISED
WILL START OFF WITH THE DEMAND
FLEXIBILITY AND IMPROVING THE
DEMAND SIDE RESOURCES. UM THE 8
46 BILL THAT PASSED LAST YEAR
REQUIRES THE CC TO DEVELOP GOAL
ALLOWED FLEXIBILITY GOAL
REGULARLY, AND THEN WE'RE GOING
TO START DOING SO BY JUNE 1ST
THIS YEAR. SO WE'RE DOING THAT
IN COLLABORATION WITH CPUC. VERY
CLOSE COORDINATION. SO THE FIRST
I THINK, UH, THING TO FIGURE OUT
THERE AS PRESIDENT DONALD JUST
MENTIONED. IS MUCH OF THIS
DEMAND SIDE RESOURCES. WE DON'T
HAVE CLARITY ON THE PERFORMANCE.
SO WHAT PROBLEM HAPPENS IS IF WE
RELY ON THEM TO SHOW UP AT A AT
A SPECIFIC LEVEL. SOMETIMES THEY
GO PAST IT, AND SOMETIMES THEY
UNDERPERFORM GIVEN THE DAY AND
THE TEMPERATURE CONDITIONS. SO
WHAT WE'RE BEGINNING TO THINK
THROUGH IS IF WE WERE TO SAY,
DOUBLE THE DOUBLE THE DEMAND
SIDE RESOURCES THAT WE HAVE
TODAY THROUGH IMPROVING A RATE
DESIGN. TIME OF USE GREAT
DESIGN. OR THROUGH INCENTIVES
FOR EMERGENCIES OR OUR PRODUCTS
, SO THE HOPE WOULD BE TO MOVE A
LITTLE BIT MORE TOWARDS AND
PERFORMANCE BASED INCENTIVE
MECHANISM AND ALSO FIGURE OUT A
PATHWAY FOR EMERGENCY PRODUCTS,
ESPECIALLY ON THE DEMAND SIDE
THAT MIGHT NOT SUSTAIN A LONG
PERIOD OF TIME. SO LET ME LET ME
EXPLAIN THAT A LITTLE BIT MORE.
WHEN YOU LOOK AT RESOURCE
ADEQUACY DEMAND SIDE PRODUCTS
TODAY, THEY HAVE TO TYPICALLY
PERFORM ABOUT FIVE HOURS
CONTINUOUSLY. AND WHAT HAPPENS
IS THEY PERFORMED WELL FOR A
COUPLE OF HOURS, AND THEN THEY
DROP SO WHAT WE'RE TRYING TO
COLLECTIVELY FIGURE OUT IS THE
PARADIGM WHERE WE ACTUALLY, YOU
KNOW, TAKE WHATEVER THEY GIVE US
TWO HOURS, THREE HOURS AND
REALLY MATCH THEM WITH THE
EMERGENCY. SO I JUST WANTED TO
FLAG THAT WE ARE WORKING HARD ON
THAT TO OPERATIONALIZE THAT AND
YOU SHOULD GET A REPORT A MIDDLE
OF JUNE FROM US ON THAT ISSUE.
SECOND, YOU'RE ABSOLUTELY RIGHT
. IT'S A REALLY SOBERING REALITY
LAST YEAR, WHEN WE HAD TO RELY
ON A LOT OF DIESEL BACKUP
GENERATORS TO KEEP THE LIGHTS ON
AND WHAT WE'RE TRYING TO DO
THROUGH THE DISTRIBUTED RESOURCE
IN A DISTRIBUTED ENERGY ASSETS
PROGRAM IS TO REALLY CLEAN THE
BACKUP GENERATION AND ALSO
PROVIDE CONTROLS TO
OPERATIONALIZE MOTIVE. VIRTUAL
POWER PLANTS. SO THOSE ARE THE
THINGS WE'RE TRYING TO DO. AND I
THINK I MEAN THE VIRTUAL POWER
PLANT, I THINK IS REALLY
EXCITING BECAUSE THOSE RESOURCES
ARE ON OUR GRID TODAY, AND THE
TECHNOLOGY IS SUCH THAT WE CAN.
I MEAN, WE CAN MAKE IT MORE
PREDICTABLE, RIGHT? I MEAN, WE
CAN HOLD BACK CERTAIN ENERGY AND
THOSE RESOURCES, ESPECIALLY
CERTAIN TIME OF YEAR, AND WHEN
YOU LOOK AT I MEAN, WE TALK A
LOT ABOUT RATE AND THE COST OF
ELECTRICITY IN THIS COMMITTEE
BECAUSE IT'S REALLY SOMETHING
CALIFORNIANS. IT'S HURTING
CALIFORNIANS EVERYDAY
CALIFORNIANS HOW MUCH THEY'RE
HAVING TO PAY. AND FOR THOSE
PEAK TIMES IN THE WHOLE WEST IS
GETTING REALLY, REALLY HOT, AND
WE'RE COMPETING FOR ENERGY AND
THOSE COSTS ARE SO HIGH TRIBES
OPERATES ALL YEAR, RIGHT TO MAKE
UP FOR THOSE PEAK COSTS, AND IF
WE CAN DRIVE THOSE DOWN BY USING
DISTRIBUTED ASSETS, THEY'RE
ALREADY ON OUR GRID. I THINK
IT'S SOMETHING WE SHOULD
ABSOLUTELY DO AND BE DOING MORE
OF BECAUSE THEY'RE THERE, AND
MORE AND MORE PEOPLE ARE
INVESTING IN THOSE BACKUP
BATTERIES. AND I THINK UM,
ALLOWING THAT TO BE EXPORTED.
THE GRADED INCENTIVIZED IS A
CRITICAL RESOURCE. THE OTHER
THING I WANTED TO ASK ABOUT WAS,
UM FOR THE DEMAND SIDE, RIGHT.
SO DEMAND REDUCTION, RIGHT? SOME
OF THAT IS THE TEXT MESSAGE THAT
SAVED US. ALL RIGHT, SO THE
INDIVIDUALS WHO TURNED THEIR
LIGHTS OFF OR UNPLUG THEIR CARS
OR WHATEVER THE CASE MAY BE, UM
, BUT A LOT OF THAT, YOU KNOW IS
THE LARGER STAKEHOLDERS THAT YOU
ARE CALLING ON TO REDUCE
CAPACITY AT THE TIME OF AN
EMERGENCY. WHETHER IT'S LARGE
CONSUMERS, ETCETERA, AND I
WANTED TO UNDERSTAND A LITTLE
BIT MORE ABOUT HOW THAT
COMMUNICATION IS WORKING AND
WHAT THE PLAN IS IN THOSE
MOMENTS OF EMERGENCY TO
COMMUNICATE EFFECTIVELY WITH
FOLKS. WE NEED TO DRIVE DOWN
ENERGY CONSUMPTION FROM AND MAKE
SURE THAT THAT'S SEAMLESS AND
NOT SOMETHING THAT WE'RE JUST
DOING IN A DISORGANIZED FASHION.
UM, SURE, I'LL START IN. AND SO
THIS IS SOMETHING THAT WE HAVE
BEEN WORKING ON A LOT IN TERMS
OF, YOU KNOW, ARE WE SO WE HAVE
DEVELOPED EMERGENCY PROGRAMS SO
THAT ANYBODY CAN SIGN UP TO BE
COMPENSATED FOR REDUCING LOAD IN
AN EMERGENCY, AND WE'RE TRYING
TO DO AS MUCH FORWARD PLANNING
ON THAT AS POSSIBLE. UM AT THE
CPUC. WE HAVE A PROGRAM CALLED
EMERGENCY LOAD REDUCTION PROGRAM
. WE AUTOMATICALLY ENROLLED ALL
OF OUR CARE CUSTOMERS. SO THAT
IF THEY DROP LOAD DURING AN
EMERGENCY, EVEN IF THEY DON'T
KNOW THEY'RE DOING IT, THEY'LL
BE PAID AND, UM AND IT IS TO
INCENTIVIZE EVERYBODY. SO SIGN
UP. UM IF YOU DROP LOAD DURING A
FLEX ALERT, YOU GET PAID
COMPENSATED FOR IT. WE ALSO HAVE
INDUSTRIAL CUSTOMERS, COMMERCIAL
CUSTOMERS WHO CAN SIGN UP
THROUGH THE UTILITIES. THE CEO
HAS A COMPANION PROGRAM. FOR THE
PUBLIC UTILITIES, AND WE'RE
WORKING COLLABORATIVELY WITH THE
C C TO MAKE SURE THAT AS MANY
PEOPLE GET SIGNED UP AS POSSIBLE
, SO ALL OF THAT LOAD REDUCTION
POTENTIAL IS PRE WIRED TO BE
COMPENSATED. SO WE HAVE THE
INCENTIVES IN PLACE. UM AND, UM
AND THAT'S THE CASE. SO IF YOU
HAVE A BATTERY HOME BATTERY, THE
IDEA WOULD BE MAKE SURE THAT
EVEN WHEN IF YOUR SOLAR PANELS
NO LONGER PRODUCING, YOU'VE GOT
YOUR PET YOUR BATTERY PULLING
THE LOAD FROM YOUR HOUSE AND
YOU'RE GETTING COMPENSATED.
BECAUSE YOU DROPPED YOUR LOAD.
UM SO WE'RE WE'RE LOOKING AT
PERFORMANCE THERE AND, UM,
EVALUATING THE RESULTS OF THE
PERFORMANCE AND THEN LOOKING FOR
WAYS TO IMPROVE THAT GOING
FORWARD. WE'VE ALSO THROUGH
BUDGET AUTHORIZATION RAMPED UP
OUR FLEX ALERT MESSAGING AND
WE'RE DOING SOME PAID MEDIA WE
HAVE, YOU KNOW, KIND OF GETTING
THE WORD. HOPEFULLY YOUR
NEIGHBORS NOW KNOW ABOUT FLEX
ALERT, BUT REALLY TRYING TO MAKE
SURE THAT EVERYONE UNDERSTANDS
THAT CERTAIN TIMES OF THE YEAR.
THIS IS WHEN WE ALL COME
TOGETHER AND REDUCE YOUR ENERGY
USE IS A LITTLE BIT BUT ALWAYS
LOOKING FOR WAYS TO IMPROVE.
YEAH, I JUST WANT TO. I MEAN,
SO, I UNDERSTAND ALL THAT. I
GUESS WHAT I'M WONDERING IS AND
I'M TRYING TO RECOLLECT EXACTLY
THE CIRCUMSTANCES, BUT A FEW
YEARS AGO AND WE HAD ONE OF THE
ONLY BLACKOUTS AND WE HAD ONE OF
THESE HEARINGS THAT CAME TO
LIGHT FOR US THAT ONE OF THE I O
U S. AND I DON'T REMEMBER.
EXACTLY SO I'M NOT GOING TO NAME
NAMES HAD DIALED UP INSTEAD OF
DIALED DOWN RIGHT THAT THERE WAS
A MISCOMMUNICATION IN THE ENERGY
SECTOR THAT LED TO THE ROLLING
BLACKOUTS RIGHT? IT WAS A BIG
MISTAKE, RIGHT? AND SO I GUESS
WHAT I'M TRYING TO COME BACK TO
IS OKAY. HOW ARE WE
COMMUNICATING IN THOSE MOMENTS
TO OUR WHETHER IT'S OUR GIANT
ENERGY USERS, WHETHER IT'S YOU
KNOW, THE I USED THE DESIGNING
UP DIALING DOWN THE LCS WHOEVER
TO KNOW EXACTLY WHAT WE SHOULD
BE DOING AT THAT MOMENT, SO IT'S
SEAMLESS. THERE IS A LOT OF REAL
TIME COMMUNICATION AND THE CAISO
ORGANIZES A LOT OF IT SO I COULD
TURN TO YOU. YES THANK YOU FOR
THAT, AS I MENTIONED IN MY
EARLIER SLIDE DECK, ONE OF THE
THINGS WE'RE REALLY NEEDING TO
ALSO PUT ADDITIONAL FOCUS ON IS
GETTING THE SEQUENCE OF EVENTS
OF, HOWEVER RESPONDING WHEN THE
SYSTEM IS TIGHT DOWN AS
CHRISTMAS POSSIBLE, WE CALL THEM
PLAYBOOKS ON EXACTLY THE
SEQUENCE OF EVENTS WHO'S
COMMUNICATING WITH WHO AND
MAKING SURE THAT THOSE
COMMUNICATION CHANNELS ARE
ESTABLISHED AND TESTED BEFORE
WE'RE ACTUALLY IN THE STRESS
CONDITIONS. IT WASN'T THAT MANY
YEARS AGO OR A FAIR BIT OF THIS
WAS STILL JUST BEING DONE A
LITTLE, TOO AD HOC BASED ON
PREVIOUS WORKING RELATIONSHIPS,
BUT THERE'S BEEN A LOT OF WORK
OVER THE LAST TWO OR THREE YEARS
TO MAKE SURE THAT THOSE
COMMUNICATION PATHS ARE
DOCUMENTED AND TESTED THAT
PEOPLE KNOW WHO SHOULD BE
CALLING THEM AND WHAT THEY
SHOULD BE SAYING. SO THAT WE'RE
CRYSTAL CLEAR ON THE MESSAGING.
SO THAT HAS BEEN A VERY
IMPORTANT ISSUE FOR US TO MAKE
SURE THAT WE DON'T HAVE THOSE
KINDS OF COMMUNICATION SNAFUS
AND THAT THE MESSAGING IS CLEAR,
PRECISE AND GETS THE DESIRED
OUTCOME. THANK YOU, MR. JUST TO
ADD TO, UH, KNEELS POINTS THAT I
THINK A COUPLE OF OTHER
ELEMENTS. I THINK IF I HEARD
YOU, RIGHT, HOW ARE WE ALSO
DOING IT ON THE LOAD REDUCTION
SIDE, AS WHEN THE LOAD REDUCTION
SIDE. WE NOW HAVE ESSENTIALLY A
GROUP AND ADMINISTRATIVE GROUP
THROUGH KAISER READ ALL THE I O
U. S AND KEY. PROVIDERS COME
TOGETHER TO AGAIN HAVE A
PLAYBOOK. AND THE OTHER ELEMENT
THAT YOU MENTIONED. YOU KNOW, WE
HAD A BUNCH OF AD HOC RESOURCES
IN 2020, WHERE WE REACHED OUT TO
AND WERE ABLE TO GET A BUNCH OF
DEMAND DEDUCTION. SINCE THEN, TO
PRESIDENT REYNOLDS POINT. WE'RE
REALLY TRYING TO OPERATIONALIZE
THEM AND MOVE THEM INTO EXISTING
PROGRAMS. SO WHAT THE EXISTING
PROGRAMS WILL GIVE US HIS
VISIBILITY OF THE TYPE OF
RESOURCE AND THEN WE CAN HAVE A
DISPATCH ORDER TO BE ABLE TO
DISPATCH THE CLEANEST FIRST, SO
I THINK OVERALL, WE SINCE 2020,
WE HAVE BEEN ABLE TO BETTER
COLLATE THE RESOURCES THAT
EXIST. AND MOVE THEM INTO MORE
OPERATIONALIZED ORGANIZED,
STANDARDIZE PROCESS. THEY LIKE
ORGANIZED AND OPERATIONALIZED.
SO THANK YOU ALL. THANK YOU VERY
MUCH. I APOLOGIZE. MR CHAIR AND
THE PRESENTERS FOR MISSING MUCH
OF THE MEETING. UM AND SO I ASK
FOR YOUR FORGIVENESS IF I MY
TOUCH UPON SOMETHING THAT WAS
DISCUSSED, UM FIRST OF ALL, I
APPRECIATE THAT. THE FOCUS OF
THE HEARING IS ON GRID
RELIABILITY AND TO BE PREPARED
FOR THIS UPCOMING SUMMER. UM BUT
AS I WAS WATCHING ON MY TV
SCREEN AS I WAS TAKING ANOTHER
MEETING, I RECOGNIZED MR WOOD.
TALKING ABOUT AN ISSUE THAT THAT
, UH, CONCERN THAT WE'VE BEEN
SHARING THAT I THINK IS VERY
MUCH RELATED TO THE GRID
RELIABILITY, WHICH IS THE
TRANSMISSION GRID IN THE INNER
CONNECTION ISSUES. UM AND IT'S.
IT'S AN ISSUE THAT I'M VERY MUCH
CONCERNED ABOUT BECAUSE I'VE
BEEN HEARING UH, YOU KNOW, BOTH
FROM UH, OUR UTILITIES AS WELL
AS FROM R C C A. IS THAT, UH,
THAT YOU KNOW WHERE. WHERE, UH,
WE'RE DOING PRETTY GOOD IN TERMS
OF, YOU KNOW, BUILDING CLEAN
ENERGY GENERATION CAPACITY, OUR
BIGGEST CHALLENGE TO MEET OUR
CLIMATE GOALS IS OUR OUR GRID.
UM. AND SO, YOU KNOW, I MEAN,
I'VE I'VE DROPPED A COUPLE OF
BILLS THIS YEAR TO TRY TO
PROMOTE THAT. I THINK IT ALL GOT
SWALLOWED UP IN THIS DISCUSSION
ON THE REGIONAL GRID. AND SO YOU
KNOW, I APPRECIATE THAT. THAT
THAT, UH YOU KNOW, IT'S VERY
MUCH A BIG PICTURE. UM UH, YOU
KNOW PRIORITY THAT THAT WE NEED
TO CONTINUE TO FLUSH OUT. BUT AS
I AS AS AS YOU KNOW, I'VE BEEN
CHEWING ON THESE ISSUES. I SAW
THIS RECENT NEW YORK TIMES
EDITORIAL. UH JUST FROM ABOUT
TWO WEEKS AGO, MAY 4TH UH,
TITLED WE DESPERATELY NEED A NEW
POWER GRID. HERE'S HOW TO MAKE
IT HAPPEN. I DON'T KNOW IF ANY
OF YOU SAW THE, UH, THE
SENATORIAL IN THE IN THE NEW
YORK TIMES, BUT YOU KNOW, IT'S
FOCUSING ON THE NATIONAL NEED.
UM BUT THE ISSUES SEEM TO BE
VERY SIMILAR TO WHAT WE'VE BEEN
TALKING ABOUT HERE HERE IN
CALIFORNIA. UM I WON'T READ THE
WHOLE ARE BAD, BUT YOU KNOW IT
TALKS ABOUT HOW THE UNITED
STATES NEEDS TO DOUBLE THE PACE
OF POWER LINE CONSTRUCTION. I'VE
HEARD THAT CALIFORNIA IN ORDER
TO MEET OUR SB 100 GOALS. WE
NEED TO TRIPLE OUR OUR GREAT
EXPANSION. UM, UM. YOU KNOW THE
ARTICLE THE EDITORIAL GOES ON TO
SAY THE BUILDING IS THE EASY
PART. WHAT MAKES THE TARGET
VIRTUALLY IMPOSSIBLE TO HIT IS
THE BYZANTINE APPROVAL PROCESS
THAT TYPICALLY INCLUDES SEPARATE
REVIEWS BY EVERY MUNICIPALITY
AND STATE THROUGH WHAT'S YOUR
CAROLINE WILL PASS? OF COURSE.
THIS IS WRITTEN FROM A NATIONAL
PERSPECTIVE, BUT YOU KNOW, I'M
WHAT I'M HEARING IS THE
BYZANTINE APPROVAL PROCESS OF
YOU KNOW OF THE STATE AS WELL AS
OUR CITIES, COMBINED WITH THE
ABILITY FOR YOU KNOW ANY, UH,
CALIFORNIA CITIZEN TO, UH, FILE
OR THREATENED TO FILE A SEQUEL
LAWSUIT? UM AND SO I, YOU KNOW,
I WANTED TO, UH, NOT ONLY, UM,
YOU KNOW, EMPHASIZED THE URGENCY
OF THE GRID. I SEE ONE OF THE
SLIDES THAT COMMISSIONER GUNDA
UH, PRESENTED APPEARS THAT
YOU'RE 2023 IEPER THEME IS
ACCELERATING CLEAN ENERGY
INTERCONNECTION. AND SO I'M I'M
SORRY I MISSED THAT DISCUSSION.
UM BUT I MEAN, I GUESS NUMBER
ONE. I MEAN, ARE WE ON TRACK IN
TERMS OF OUR OUR GRID? UM
EXPANSION, AS WELL AS OUR
INTERCONNECTION NEEDS TO MEET
RSP 100 GOALS AT THIS TIME. I
THINK WE ALL HAVE SOMETHING TO
SAY. SO WE'RE WONDERING, SO
MAYBE ALL OF US WILL TAKE A SHOT
AT IT. UM AND, UM WE ARE IN THE
PROCESS NOW OF DOING AN UPDATE
TO THE SP 100 REPORT. WE HAVE
BEEN BRINGING PROJECTS ONLINE,
ACCORDING TO PLANNING TO GET TO
THAT GOAL. UM, BUT WE HAVE A LOT
OF WORK TO DO. UM THE
TRANSMISSION PLANNING PROCESS
HAS RAMPED UP IN THE PAST FEW
CYCLES. SO THE C P. U C IS
SENDING LARGER AMOUNTS OF NEW
GENERATION TO THE SKY, SO TO
STUDY FOR TRANSMISSION PROJECTS
THAN EVER BEFORE, INCLUDES, SO
THAT'S BOTH IN A BASE CASE AND A
SENSITIVITY CASE LOOKING TO IT
FORWARD TO THE FUTURE WITH
OFFSHORE WIND IN MIND WITH OTHER
PROJECTS THAT WE NEED TO GET TO
OUR CLEAN ENERGY GOALS. UM WE'VE
TYPICALLY DONE 10 YEAR PLANNING
, AND NEIL CAN TELL YOU ABOUT
THE 20 YEAR CYCLE THAT WE'RE
DOING NOW, WITH EXACTLY THIS IN
MIND THAT WE NEED TO THINK AHEAD
FOR THESE LONG LEAD TIME
RESOURCES PROJECTS, RECOGNIZING
THAT IT DOES TAKE TIME TO GET
TRANSMISSION APPROVED WHETHER
THAT'S AN UPGRADE TO AN EXISTING
LINE OR A NEW LINE. UM SO LET ME
STOP THERE AND GO TO KNEEL.
THANK YOU FOR THAT. AND YES, UH
, WHAT WE DID A YEAR AND A HALF
AGO WAS LAUNCHED THIS OUTLOOK
PROCESS OF BUILDING OFF OF INPUT
FROM THE STATE AGENCIES
DEVELOPED LONG TERM BLUEPRINT
FOR WHAT WE SAW THE TRANSMISSION
SYSTEM WOULD NEED TO LOOK LIKE
20 YEARS FROM NOW TO PROVIDE
CONTEXT FOR THE TRANSMISSION
PROJECTS THAT WE'RE LOOKING FOR
APPROVALS FOR AND PUSHING
THROUGH THE PIPELINE TODAY. TO
SHOW TO DEMONSTRATE THAT THOSE
TRANSMISSION PROJECTS AREN'T A
ONE AND DONE THAT THEY'RE PART
OF A LONGER TERM STRATEGY AND
THAT THAT DOES ESTABLISH A
TRAJECTORY TO ACTUALLY MEETING
GOALS BY 2040 2045. SO THAT
FIRST VERSION OF THE 20 YEAR
OUTLOOK CAME OUT IN MAY OF 2022
AND WE ARE LOOKING AT DEVELOPING
THIS YEAR, A SECOND VERSION OF
THAT OUTLOOK TO UPDATE THE
INPUTS AND ALSO REFLECTS SOME OF
THE PROJECTS THAT WE'VE MOVED TO
APPROVE SINCE THEN. UH AND WE
WILL BE PUTTING THAT OUT IN 2024
ABOUT MAY OF 2024. NOW WHEN IT
COMES TO THE TRANSMISSION
PROJECTS THEMSELVES. THIS
TRANSMISSION PLAN ITSELF IS THE
LARGEST THAT THE THAT WILL BE
BRINGING TO OUR BOARD IN TWO
DAYS FOR APPROVAL IS THE LARGEST
TRANSMISSION PLAN WE'VE EVER
ADVANCED. WE'RE LOOKING AT 7.3
BILLION AND TRANSMISSION THAT
COVERING AND IT'S NOT ONLY
ADDRESSING THE. THE BASE CASE
SCENARIOS YOU HEARD ABOUT BUT
ALSO HAVE AS WELL POSITIONED TO
GET ON TRACK FOR THE LONGER TERM
PROJECTION THAT IS THE
ESTABLISHED TRAJECTORY TO GET TO
OUR 2045 GOALS, SO THERE WILL BE
ADDITIONAL TRANSMISSION COMING
IN NEXT YEAR AS WELL. AND IT
WILL ALSO BE SHIFTING THE FOCUS
TO PICK UP SOME OF THE FIRST
LAYER OF NEEDS FOR OFFSHORE WIND
DEVELOPMENT. SO THAT
TRANSMISSION THE PLANNING IS
HAPPENING. PROJECTS ARE BEING
INITIATED. THE PERMITTING
PROCESS ITSELF IS DAUNTING. WE
DO RECOGNIZE THAT THE STATE
AGENCIES ARE OBLIGED TO FOLLOW
THE LETTER OF THE LAW REGARDING
THE PERMITTING PROCESSES. THEY
THEY'RE MANAGING, AND THAT DOES
AT TIMES TAKE US INTO TIME
FRAMES THAT WE WISH WE'D QUITE
FRANKLY DIDN'T HAVE TO DEAL
WITH. WE'RE ALSO LOOKING AT THE
POSSIBILITY OF HAVING TO APPROVE
PROJECTS NOT ONLY WITHIN THE 10
YEARS BUT ALSO LOOKING OUT
BEYOND THE 10 YEAR WINDOW
BECAUSE OF THE COMPLEXITIES OF
THE PERMITTING PROCESSES. SO IF
THERE ARE STEPS THAT CAN BE
TAKEN TO STREAMLINE THOSE
PROCESSES AND SHORTEN THOSE
TIMELINES, THAT'S OBVIOUSLY
SOMETHING WERE HIGHLY, YOU KNOW,
VERY INTERESTED IN SEEING
HAPPEN. BECAUSE WE DO NEED TO
MOVE ON YOU TRANSMISSION TO MEET
THOSE TARGETS, AND LIKE I SAID,
WE ARE MOVING ON THE NEW
TRANSMISSION PROJECTS BUT
GETTING THEM PERMITTED AND
APPROVED AND ACTUALLY BUILT.
THERE'S A LOT OF WORK AHEAD ON
THOSE PROJECTS. SO ALONG THOSE
LINES GOING BACK TO THIS
EDITORIAL HERE IS IT SAYS THAT
THE MOST IMPORTANT CHANGE
NECESSARY TO OVERHAUL THE
PERMITTING PROCESS IS TO PUT A
SINGLE AGENCY IN CHARGE OF MAJOR
TRANSMISSION PROJECTS. IS THIS
PLAN THAT YOU'RE PREPARING TO
RELEASE? DOES IT CONTEMPLATE
ANYTHING LIKE A, A CENTRAL STATE
AGENCY IN CHARGE OF MAJOR
TRANSMISSION PROJECTS? WELL, WE
HOLD THE ROLL THROUGH THE STATE
LEGISLATION TO CONDUCT THE END
FEDERAL TARIFF TO CONDUCT THE
ACTUAL TRANSMISSION PLANNING IN
TERMS OF GETTING IT PERMITTED.
THERE ARE MULTIPLE
RESPONSIBILITIES WITHIN THE
STATE THAT HAVE TO BE ADDRESSED.
AND WE ARE NOT IN THE ROLE TO
TAKE ON THE ENVIRONMENTAL
PERMITTING CHALLENGE OURSELVES.
SO I MEAN, IT DOES THE STATE OF
CALIFORNIA SHOULD THE STATE OF
CALIFORNIA HAVE A SINGLE STATE
AGENCY IN CHARGE OF TRANSMISSION
PERMITTING. AND I MEAN, I
IMAGINE IT. IT WOULD BE A VERY
COMPLICATED TOPIC, BUT I MEAN,
WHAT I'M HEARING IS THAT THAT'S
NOT PART OF THE CURRENT PLAN
THAT THAT THAT IS BEING NOT
AWARE OF ANY DISCUSSION ON THAT
PATH. RIGHT NOW. I THINK THE
DIFFERENT LAYERS OF CONCERNS
THAT ARE ADDRESSED. CALIFORNIA
DOES HAVE IT'S BENEFIT HAS AMONG
THE STRICTEST ENVIRONMENTAL
REQUIREMENTS THAT IMPACT A
NUMBER OF DIFFERENT DOMAINS OF
WHAT IT TAKES TO GET A
TRANSMISSION LINE PERMITTED, HOW
THAT WOULD COME TOGETHER. I'M
AFRAID I'M NOT IN A POSITION TO
COMMENT ON OKAY THAT THE PUC
DOES DO APPROVAL, UM, OF
TRANSMISSION PROJECTS, SO WE
HAVE A PROCESS THAT DOES SEQUA
REVIEW AND EVALUATES
ALTERNATIVES EVALUATES COSTS
BECAUSE, OF COURSE COST IS VERY
IMPORTANT HERE, AND THAT'S PART
OF THE REASON WE DO ALL THIS
ADVANCE PLANNING TO PUT TOGETHER
THE LEAST COST PORTFOLIO TO MEET
OUR TARGETS. AND UM, SO THAT
PROCESS LIES AT THE PUC. WE DO
WE HAVE APPROVED PROJECTS IN THE
PAST. WE UM YOU KNOW, FOLLOW THE
LEAD TIME THAT WE TAKE INTO
ACCOUNT WITH THAT WITH OUR
PLANNING TO GET THE PROJECTS
ONLINE, ACCORDING TO THE TARGET
GOALS. UM AND, UH, I SO THAT
THAT YOU KNOW, IN IN CALIFORNIA
, THAT'S THAT'S HOW WE CARRY OUT
THE PROCESS, WHICH OBVIOUSLY HAS
AN IMPORTANT COST IMPACT ON IT.
AND IF I CAN JUST QUICKLY FOLLOW
UP ON THAT, PRESIDENT REYNOLDS
UH I THINK, UH, CURRENTLY THE
PUC TAKES LIKE WHAT? 9 10 YEARS
TO APPROVE. TRANSMISSION GRID.
UH, AH EXPANSIONS. IF THAT'S AN
AVERAGE THAT YOU'VE SEEN, I
WON'T QUESTION THAT. I THINK IT
HAS BEEN LESS, BUT IT'S PROBABLY
BEEN MORE TO IN THE PAST. I WILL
ALSO SAY THAT PURSUANT TO
LEGISLATION WE HAVE A NEW RULE
MAKING, UM THAT WE'RE JUST
OPENING TO EVALUATE THE RULES
REGARDING THE LEVEL OF REVIEW
FOR TRANSMISSION PROCESSES. AND
SO WILL BE EVALUATING WHETHER A
FULL PERMITTING PROCESS IS
APPROPRIATE FOR CERTAIN TYPES OF
UPGRADES. SO UM, SO THE
LEGISLATURE HAS DIRECTED AND
WE'RE CARRYING OUT A
STREAMLINING PROCESS WERE ALSO
USING THAT TO EVALUATE STORAGE
PROJECTS AND OTHER PROJECTS THAT
THE I O. U. S ARE PROPOSING IN
ORDER TO MAKE SURE THAT WE'RE
STRAINING STREAMLINING. AS MUCH
AS POSSIBLE. THANK YOU REMEMBER
THE ONLY THING I WOULD ADD TO
WHAT WHAT MY COLLEAGUES. HOLIDAY
MENTIONED IS A HUGE PART OF THE
PERMITTING DELAYS OBVIOUSLY
COMES TO THE LAND USE
IMPLICATIONS. WE HAVE
COLLECTIVELY STARTED THE PROCESS
OF UPDATING THE LAND USE SCREENS
IN A MUCH MORE COMPREHENSIVE AND
COLLABORATIVE FASHION, TO MAKE
SURE THAT WE CONSIDER THOSE
EARLIER IN THE PROCESS TO REDUCE
THE DOWNSTREAM IMPACTS ON TIME,
SO I JUST WANTED TO ELEVATE THAT
THAT'S ANOTHER ELEMENT THAT
WE'RE WORKING ON. UM MR MILLARD
TALKED ABOUT ANY ANY EFFORTS TO
SPEED UP THE TIMELINES. I
BELIEVE THIS COMMITTEE PASSED A
, UH, A BILL SIMILAR APPROACH TO
WHAT WE'VE TAKEN WITH STADIUMS.
I THINK OF HAVING A 270 DAY. UH,
TIME LIMIT FOR COURTS TO HANDLE,
UM. AH SEQUA, UH, LITIGATION IN
IN IN IN COURTS, I MEAN IT.
WOULD THAT BE ONE EXAMPLE OF
SOMETHING THAT THAT THAT WOULD
HAVE A SIGNIFICANT IMPACT IN
TERMS OF SPEEDING UP THE PROCESS
OF TRANSMISSION? PROJECT
PERMITTING. I THINK LITIGATION
IS ALWAYS A FACTOR FOR PROJECT
APPROVAL. SO YES. WHERE, UM. I
ALSO SIT ON THE NATURAL
RESOURCES COMMITTEE. I KNOW
WE'RE TALKING ABOUT. YOU KNOW,
CATEGORICAL SEQUEL EXEMPTIONS
FOR YOU KNOW FOR HOUSING, GIVEN
THE RECOGNITION THAT HOUSING IS
A CRISIS, AND GIVEN THAT WE HAVE
A CLIMATE CRISIS. I MEAN, IS
THERE ANY CONSIDERATION ABOUT
SEQUEL EXEMPTIONS FOR
TRANSMISSION? GREAT EXPANSIONS.
IT'S AT CC. WE UM, YOU KNOW, IN
COLLABORATION WITH PUC AND
KAISER HAVE WORK THAT'S AROUND
TRANSMISSION CORRIDOR PLANNING
AND SUCH ONE OF THE THINGS THAT
HAS BEEN RAISED WITH THE ENERGY
COMMISSION IS TO RECONSIDER
POTENTIALLY PROGRAMMATIC E I. R
S THAT ALLOW FOR MORE
PROGRAMMATIC APPROVAL OF
TRANSMISSION, BUT THAT'S SOME IN
A VERY EARLY STAGE OF DISCUSSION
THAT WILL BE BRINGING INTO A
PUBLIC SPHERE OR CONVERSATION
THAT MEENA PROGRAMMATICALLY
RATHER THAN PROJECT BY PROJECT.
UM MORE OF A NO REGIONAL. UH
HUH. UM. OKAY. I JUST WANTED TO
ADD MR CHAIR. UH, THIS
PARTICULAR EDITORIAL CONCLUDES
BY SAYING THE BALKANIZATION OF
THE ELECTRIC GRID KEEPS COSTS
UNNECESSARILY HIGH MAKES IT
HARDER FOR UTILITIES TO BE
SURGES IN DEMAND. SO I THOUGHT
YOU MIGHT APPRECIATE THAT
COMMENT. THANK YOU. THANK YOU
VERY MUCH. GOOD LINE OF
QUESTIONS. WE'LL MOVE ON TO THE
COLLEAGUE TRAVEL. HI THANK YOU.
SO MUCH FOR YOUR PRESENTATION. I
WANT TO JUST CHIME IN ON MY
COLLEAGUE'S CONCERNS AROUND
INTERCONNECTION. IT'S SOMETHING
THAT I'VE BEEN HEARING A LOT IN
THE MEETINGS I'VE BEEN TAKING IN
MY OFFICE, UM FROM ANYWHERE FROM
, YOU KNOW, SOLAR, UM, BATTERY
ENERGY. UM LET'S TRY TO GET
CONNECTED UP TO THE GRID TO
HOUSING DEVELOPMENTS THAT
HAVEN'T BEEN ABLE TO GET
CONNECTED. AND SO IT'S NOT ONLY
IMPACTING OUR ABILITY TO HAVE
THE ENERGY THAT WE NEED, BUT
IT'S ALSO IMPACTING OUR HOUSING
. UM NEEDS ITS HAS SO MANY
RIPPLE EFFECTS THAT WE'RE SEEING
. UM AND SO I WONDER IF YOU HAVE
INSIGHTS ALSO INTO WHAT ELSE IS
A PART OF THIS. I HEAR WHAT
YOU'RE SAYING AROUND THE
PLANNING, AND, YOU KNOW, GLAD
THAT THERE ARE SOME IDEAS
MARINATING ABOUT HOW WE CAN
IMPACT THAT AND MAYBE IMPROVE
UPON THAT. UM YOU KNOW, I'VE
HEARD OTHER I'VE BEEN TRYING.
I'VE BEEN TRYING TO HAVE
CONVERSATIONS ABOUT LIKE, WHAT
IS THE PROBLEM? WHAT IS ACTUALLY
THE PROBLEM THAT IS GOING ON
RIGHT NOW? UM IS IT A YOU KNOW?
IS IT A WORKFORCE ISSUE, IS IT
I'VE HEARD THAT, UM YOU KNOW,
MORE OF LIKE THE ENGINEER LEVEL
THAT THERE'S A LOT OF RETIRING
ENGINEERS AND NEED TO BE ABLE TO
FILL THOSE GAPS AND THOSE HOLES
AROUND BEING ABLE TO GO OUT TO
SITES AND, UM AND REALLY YOU
KNOW LINEUP HOW THAT WORK IS
GOING TO HAPPEN. BUT I'M JUST
TRYING TO FIGURE OUT LIKE WHAT
ELSE IS GOING ON THAT WE NEED TO
ADDRESS DO WE NEED TO HAVE
MONTHLY MEETINGS WHERE YOU KNOW
THE, UM YOU KNOW? DIFFERENT
ENERGY PROVIDERS. COME ON IN AND
TELL US HOW MANY THEY'VE, YOU
KNOW, BEEN REQUESTED TO CONNECT
UP AND WHERE THEY ARE IN THE
PROCESS TO MOVE THINGS ALONG.
LIKE WHAT? WHAT NEEDS TO HAPPEN
TO HELP GENERATE THE KIND OF
URGENCY AND IMPORTANCE ON THIS
ISSUE THAT DOESN'T SEEM TO BE
THERE IN IN SOME WAYS, RIGHT NOW
THAT, UM YOU KNOW THAT WE ALL
KNOW I THINK HERE THERE'S REALLY
REALLY URGENT FOR US TO BE ABLE
TO MAKE OUR GOALS. SURE ITS IT'S
NEIL HERE WITH THE ICE, SO I'LL
TAKE THE FIRST SHOT AT THAT. SO
FIRST OFF, I WANT TO BE VERY
CLEAR. THE URGENCY IS WHAT WE'RE
DEALING WITH DAY IN DAY OUT.
THAT'S THIS IS ONE OF THE MOST
IMPORTANT ISSUES THAT WE'RE
DEALING WITH. AS MANAGING HOW TO
GET THE LARGEST NUMBER OF
PROJECTS. THROUGH FROM CONCEPT
INTO ACTUALLY GETTING BUILT AS
QUICKLY AS POSSIBLE. AS I
MENTIONED EARLIER. THE ONE OF
THE CHALLENGES WE HAVE IS A
TREMENDOUS AMOUNT OF COMPETITION
FOR THE AMOUNT OF ACTUAL
DEVELOPMENT THAT'S ACTUALLY
GOING TO MOVE FORWARD. SO WE SEE
THAT WE REALLY HAVE TO DO ON ONE
HAND, WE HAVE TO KEEP MOVING
THROUGH THE PROJECTS THAT HAVE
APPLIED. WE HAVE TO KEEP WORKING
ON FOCUSING ON GETTING THEM
THROUGH THE PROCESS AND BUILT WE
ALSO HAVE TO ADDRESS THIS
INCOMING OVERHEATED COMPETITION
FOR THE PROJECTS THAT WANT
CONTRACTS DON'T HAVE THEM YET.
THEY WANT POWER PURCHASE
AGREEMENTS. THEY WANT TO SELL
THEIR OUTPUT AND THEN THEY WANT
TO GET CONNECTED. AND THEY'RE
APPLYING FOR INTERCONNECTION SO
THAT THEY CAN BRING THAT
INTERCONNECTION PROPOSAL TO THE
COMPANIES THAT ARE ACTUALLY
BUYING POWER. AND SAYING, SEE, I
I'VE MADE IT TO THIS PART OF THE
PROCESS. I'M REAL. I'M READY TO
MOVE FORWARD, BUT WE HAVE TO
COME UP WITH A BETTER WAY OF
MANAGING JUST LETTING ANYONE
APPLY ANYWHERE THEY WANT TO
APPLY AND MANAGING THAT HUGE
VOLUME OF LIKE I SAID,
OVERHEATED COMPETITION. EVEN IF
WE HAD THE ENGINEERING RESOURCES
, IT WOULDN'T BE A GOOD USE OF
STATE RESOURCES TO BE DEVELOPING
INTERCONNECTION PROPOSALS. FOR
EVERYONE WHO'S ASKING IN CASE
THEY MIGHT GET A POWER PURCHASE
AGREEMENT. THERE'S JUST TOO MUCH
COMPETITION OUT THERE FOR THEM
TO GET MEANINGFUL RESULTS IN THE
FIRST PLACE, AND IT WOULD JUST
OVERWHELM THE SYSTEM SO WE
REALLY NEED TO TIGHTEN UP. HOW
WE'RE DOING THOSE STUDIES WHO'S
GETTING THROUGH AND ACTUALLY
DOES GET AN INTERCONNECTION
PROPOSAL DEVELOPED AND MOVES
FORWARD INTO THE PROCUREMENT AND
INTO CONSTRUCTION. SO CLEARING
OUT THAT WHAT'S BECOMING A BIT
OF A ROADBLOCK AT THE BEGINNING
IS REALLY IMPORTANT. THAT'S
SOMETHING WE'RE WANTING TO
EXPLORE THIS YEAR, WORKING WITH
THE STATE AGENCIES AND WITH OUR
STAKEHOLDERS. BECAUSE THEY'RE
ALSO SEEING THAT SAME PROBLEM.
THEY KNOW THAT IT'S NOT
MEANINGFUL TO GET
INTERCONNECTION RESULTS STUDYING
, ADDING LITERALLY SEVEN TIMES
THE SYSTEMS PEAK LOAD. IN ONE
INTERCONNECTION CYCLE. HOW WOULD
YOU CONNECT UP 350,000 MEGAWATTS
OF RESOURCES, SO THAT'S WHAT
WE'RE LOOKING AT IS WHAT WE CAN
DO TO STREAMLINE UP FRONT SO
THAT WE CAN FOCUS OUR PLANNING
AND ENGINEERING RESOURCES ON A
MORE REASONABLE NUMBER OF
PROJECTS THAT WILL ACTUALLY GET
THROUGH AND GET BUILT SO THAT
THAT'S WHERE PEOPLE CAN PUT
THEIR TIME AND ENERGY. NOW
SAYING THAT EASY GETTING IT DONE
IS GOING TO BE MORE DIFFICULT.
AH THE PROCESS DESIGN WORK.
THERE IS SOMETHING WE ALSO HAVE
TO GET OUR FEDERAL REGULATOR ON
BOARD WITH, BUT WE HAVE A LOT OF
CONFIDENCE THAT THERE IS. THE
NEED FOR CHANGE IS CLEAR AS
WE'VE MOVED FROM PROCESSES THAT
DID WORK IF YOU ARE ADDING 1000
MEGAWATTS A YEAR BUT SIMPLY
CANNOT PICK UP THE PACE TO
ACCOMMODATE ADDING 7 TO 8000
MEGAWATTS OF NEW INSTALLED
CAPACITY. YEAR OVER YEAR, SO
THAT'S ONE OF OUR BIG FOCUS IS
WHAT WE CAN DO TO TIGHTEN THAT
THAT UP. AND DIRECT THOSE
RESOURCES WHERE THEY'RE REALLY
NEEDED NOW GETTING PAST THAT THE
AMOUNT OF ACTUAL DESIGN AND
CONSTRUCTION WORK IS ALSO A REAL
CHALLENGE. SO UH, ONCE WE GET
PAST THAT WE KNOW THAT JUST
MANAGING THE VOLUME OF
DEVELOPMENT THAT'S REQUIRED WILL
STILL BE SIGNIFICANT. IT WILL
STILL STRAIN THE ENTIRE CHAIN,
INCLUDING THE PERMITTING PROCESS
TO MANAGE GETTING THAT THROUGH,
SO WE NEED TO BE LOOKING NOT
ONLY AT THE ONES THE ONE ISSUE
BUT THE ENTIRE CHAIN OF EVENTS.
WHAT DOES IT TAKE TO ACTUALLY
GET THESE PROJECTS ONLINE? BUT
AS I SAID EARLIER, WE HAVE BEEN
SUCCESSFUL AT GETTING A LARGE
NUMBER OF PROJECTS THROUGH WE
ARE EXPECTING THIS YEAR THAT
WILL BE REACHING WE SHOULD BE
BREAKING THE 8000 MARK OR
INSTALLED CAPACITY IN A SINGLE
YEAR, WHICH IS A VERY GOOD
START. BUT NOW WE HAVE TO BE ON
TRACK TO SUSTAIN THAT YEAR OVER
YEAR. I DON'T KNOW IF THERE ARE
OTHER OTHER COMMENTS. I THINK
PART OF WHAT YOU'RE HEARING FROM
NEIL IS THAT IT'S IMPORTANT TO
FOCUS ON THE RIGHT PROJECTS. THE
PROJECTS ARE THE RIGHT STAGE OF
IN THE PROCESS. AND SO THAT'S
ONE THING WE'VE BEEN TRYING TO
DO FROM ALL SIDES. SO FROM CHI,
SO, UM, FROM THE PUC IS, UM
FOCUSED ON ENCOURAGING OR THE
UTILITIES TO LOOK AT. KNOW WHAT
PROJECTS ARE READY WHEN THEY'RE
THEY'RE GOING TO BE COMING UP
AND FOCUS ON THOSE PROJECTS. UM
AND AT THE SAME TIME TRYING TO
GET TO A MANAGEABLE PLACE FOR
THE FUTURE, AS YOU KNOW, AS WE
GO FORWARD. THANK YOU.
ASSEMBLYMEMBER'S UM SO JUST AS
TO REITERATE SOME OF THE POINTS
WE MADE EARLIER, UM SO THE VIPER
THE INTEGRATED ENERGY POLICY
REPORT THIS YEAR, IS FOCUSING ON
THE INTERCONNECTION ISSUE, AND
WE ALL COLLECTIVELY WORKING ON
THAT REPORT, AND WE WILL BE ABLE
TO PROVIDE YOU KNOW SOME OF THE
BASIC QUESTIONS THAT YOU'RE
ASKING. WHICH IS AND HOW DOES
THE FLOW CHART LOOK LIKE? WHAT
ARE THE MAIN ISSUES HERE AND HOW
DO WE SOLVE THEM? SO THAT'S
GOING TO BE COMING OUT LATER
THIS YEAR AND ALSO JUST WANTED
TO REITERATE. SO I THINK YOU
KNOW YOU YOU MENTIONED THE
RESOURCES AND HE SORT OF HAS
DEFINITELY BEEN SOMETHING THAT
WAS RAISED IN THE WORKSHOPS. BUT
THERE ARE OTHER ISSUES AS WELL,
ESPECIALLY IN TERMS OF
VISIBILITY BETWEEN IT WITHIN THE
UTILITY AND HOW THEY ARE DOING
DIFFERENT PARTS OF THE
INTERCONNECTION PROCESS. SO WE
ARE WORKING ON IMPROVING
TRANSPARENCY, WHICH SHOULD
POTENTIALLY YIELD A LOT OF
EFFICIENCY ON THE DISTRIBUTION
SIDE. AND JUST, UM, THANK YOU. I
APPRECIATE THAT. AND I AM
EXCITED ABOUT THIS REPORT. UM SO
BACK TO YOUR POINT AROUND THE
KIND OF PIPE STREAMLINING THE
PIPELINE FEEL LIKE ON THAT PART
OF THE PROBLEM IS THAT BECAUSE
OF THE DELAYS, EVERYBODY'S LIKE
AS SOON AS THEY GOT SOMETHING.
YOU KNOW THAT LOOKS LIKE IT
COULD HAPPEN. THEY WANT TO SIGN
UP BECAUSE IT'S A FOUR YEAR
DELAY BEFORE THEY CAN GET
CONNECTED TO THE GRID OR
WHATEVER IT IS RIGHT. BUT IT'S
THAT KIND OF THE DELAY SITUATION
IS ACTUALLY CREATING THIS
SCRAMBLE AND OVERLOADING THE
PIPELINE IN A WAY BECAUSE PEOPLE
ARE, YOU KNOW, CONCERNED THAT
THEY'RE NOT GOING TO BE ABLE TO
GET CONNECTED UP WHEN THEY NEED
TO BE, SO THEY WANT TO GET IN
LINE AS QUICKLY AS POSSIBLE. UM
SO WHO IS THAT CASE? I'M SORRY.
I'M THE NEW KID ON THE BLOCK,
AND I'M LEARNING A LOT RIGHT
NOW, ABOUT ALL OF THIS PROCESS,
BUT, UM, ARE YOU IN CHARGE OF
THE PILOT WHO'S IN CHARGE OF THE
PIPELINE? WHO CAN DO WHO CAN DO
THE STREAMLINING? HOW DOES THAT
HAPPEN RESPONSIBLE AT THE ICE
OFFER RUNNING THE GENERATION
INTERCONNECTION PROCESS FOR
CATCHING ALL THE NEW REQUESTS
FOR CONNECTIONS TO THE
TRANSMISSION GRID. AND WORKING
WITH THE TRANSMISSION OWNERS TO
DEVELOP THE REQUIRED
INTERCONNECTION PROPOSALS FOR
THEM, ALSO IDENTIFYING THE
NETWORK UPGRADES THAT WOULD BE
NEEDED TO ALLOW THEM TO COME ON
AND TO ACTUALLY SERVE LOADS. SO
GETTING THEM CONNECTED IS ONE
THING GETTING THE OTHER NETWORK
UPGRADES NECESSARY TO GET THEIR
POWER TO LOAD IS ANOTHER, AND
THAT'S THAT'S THE PROCESS THAT
WE LEAD. BUT THEN THE
TRANSMISSION PROJECTS THAT ARE
IDENTIFIED STILL NEED TO BE
PERMITTED AND BUILT AND WE DO
HAVE A LOT OF TRANSMISSION IN
VARIOUS STAGES OF DEVELOPMENT
THAT'S BEEN APPROVED OVER THE
PAST NUMBER OF YEARS. AND THERE
HAVE BEEN TIMES WHERE SOME OF
THAT TRANSMISSION HAS BEEN
DELAYED. OR FOR A NUMBER OF
REASONS WHETHER IT WAS SUPPLY
RELATED ISSUES FROM THE
UTILITIES OR STAFFING OR THERE
WERE TIMES WHERE OTHER
PRIORITIES SOME OF THE WILDFIRE
MITIGATION REQUIREMENTS
DEFINITELY PULLED STAFFING. FROM
OTHER FROM OTHER PRIORITY AREAS,
SO AND WE, YOU KNOW, THAT'S THE
OTHER THING I'VE HEARD. SO
THAT'S SOMETHING THAT'S BEEN A
CONCERN. WE'VE BEEN WORKING WITH
THE TRANSMISSION OWNERS TO WORK
TO TRY TO MITIGATE THE
TRANSMISSION DELAYS THAT ARE
IMPACTING THE LARGEST NUMBER OF
PROJECTS AT ANY TIME. ONE OF THE
OTHER STEPS WE TOOK IN
CONJUNCTION WITH THE PUBLIC
UTILITIES COMMISSION. WAS TO
PROVIDE THE TRANSPARENCY AROUND
WHAT'S HAPPENING WITH THESE
TRANSMISSION PROJECTS, AND WE
NOW HAVE A PROCESS CALLED THE
TRANSMISSION DEVELOPMENT FORUM.
THAT'S RUN QUARTERLY, WHERE ALL
OF THE MAJOR TRANSMISSION
UTILITIES COME IN, AND ONCE A
QUARTER GO THROUGH THE PROJECTS
THAT WERE THAT AFFECT
GENERATION. WE DON'T GO THROUGH
THE INTERCONNECTIONS THEMSELVES
. BUT ALL OF THE NETWORK
UPGRADES THAT ARE REQUIRED BY
GENERATORS. THE TRANSMISSION
OWNERS GO THROUGH THE STATUS OF
THOSE PROJECTS AND REPORT ON IF
THEY HAVE EXPERIENCED ANY DELAYS
AND WHAT'S CAUSED THE DELAYS, SO
THAT'S PROVIDING THE CLEAR
TRANSPARENCY TO EVERYONE ABOUT
WHICH PROJECTS HAVE BEEN
IMPACTED. AND THEN WHAT CAN WE
DO TO TRY TO MITIGATE THE IMPACT
OF THAT DELAY? A PROJECT HAS
BEEN DELAYED AND WE THINK THAT
TRANSPARENCY HAS BEEN VERY
HELPFUL. AND ALLOWED US TO FOCUS
ON ALL SAY THE REAL PROBLEMS AS
OPPOSED TO, YOU KNOW, SOMETIMES
WE HEAR STORIES ABOUT PROJECTS
BEING IMPACTED, BUT THIS
PROVIDES THE CLEAR TRANSPARENCY
, WHICH PROJECTS HAVE BEEN
DELAYED BY HOW MUCH WHAT'S THE
IMPACT AND WHAT CAN WE DO TO GET
THOSE PROJECTS BACK ON TRACK?
AND I AND I APPRECIATE WHEN I
WAS TALKING EARLIER ABOUT THE
URGENCY I APPRECIATE YOU ALL
UNDERSTAND THE URGENCY. UM IT
WAS YOU KNOW, WHEN YOU WHEN
YOU'RE HEARING ABOUT FOUR YEAR
DELAYS TO GET CONNECTED UP, THEN
IT FEELS LIKE SOMEONE'S NOT
UNDERSTANDING URGENCY. BUT, UM.
SO WHEN SO, IN THIS PROCESS THAT
YOU OUR IN OUR LEADERSHIP ROLE
ON AT WHAT POINT LIKE WHEN DO I
GO? IF I HAVE, YOU KNOW, SOLAR
AND BATTERY ENERGY, I WANT TO
GET CONNECTED UP TO THE GRID. I
GO TO YOU. AND AT ONE POINT DO I
TALK TO P GENIE OR LIKE HOW DOES
THAT ALL WORK IF SOMEONE'S
LOOKING TO APPLY TO CONNECT TO
THE TRANSMISSION SYSTEM,
UTILITIES ARE RESPONSIBLE FOR
LEADING ANY DISTRIBUTION
CONNECTIONS. BUT IF ONE IS
LOOKING TO CONNECT TO THE
TRANSMISSION, THE HIGH VOLTAGE
TRANSMISSION SYSTEM THEY APPLY
THROUGH OUR INTERCONNECTION
PROCESS. WE NORMALLY RUN A WIND
AND OPEN SEASON ONCE A YEAR. FOR
NEW APPLICATIONS, AND WE STUDY
THEM ALL AND MOVE THEM ALL
SEQUENTIALLY THROUGH A TWO YEAR
STUDY PROCESS. AT THE END OF THE
FIRST YEAR, YOU GET YOUR
PRELIMINARY RESULTS THAT
ESTABLISH COST RESPONSIBILITY.
YOU PUT UP SOME ADDITIONAL MONEY
, SOME ADDITIONAL POSTING FUNDS
AND THEN MOVE FORWARD INTO
DETAILED PROPOSALS THAT WOULD
THEN GET A CONTRACT IN PLACE. IF
YOU WERE ABLE TO GET A POWER
PURCHASE AGREEMENT AND CAN
ACTUALLY MOVE FORWARD. AND
THAT'S THE CHALLENGES THAT WE
HAVE A LOT OF PROJECTS SUPPLYING
THAT AREN'T GETTING CONTRACTS
AND THAT ARE THEN WAITING FOR
THE OPPORTUNITY TO GET A
CONTRACT WITH THE LOAD SERVING
ENTITY FOR THEIR OUTPUT AND
AREN'T REALLY READY TO MOVE
FORWARD. WE ALSO HAVE A CASE
WHERE THERE'S JUST SO MUCH
COMPETITION THAT THAT CAN BECOME
ALMOST A DENIAL OF SERVICE
ATTACK WHEN YOU HAVE THAT MANY
PROJECTS APPLYING AT THE SAME
TIME, SO THAT'S A REAL ISSUE
WE'RE HAVING TO MANAGE. UH AND
THAT'S WHY WE'RE TRYING TO DO
IT. WE CAN TIGHTEN THE LINKAGE
BETWEEN OUR INTERCONNECTION
PROCESS AND THE ACTUAL
PROCUREMENT. SO THAT WE CAN
FOCUS MORE OF THE ENGINEERING
TALENT ON THE PROJECTS THAT ARE
ACTUALLY GETTING CONTRACTS AND
MOVING FORWARD. YEAH I MEAN, I
COME OUT OF WORKING A LOT IN
HEALTHCARE ISSUES, AND IT SOUNDS
A LITTLE BIT LIKE THERE NEEDS TO
BE A TRIAGE PROCESS WITH SOME OF
THESE FOLKS WITH LIKE, WHERE ARE
YOU REALLY READY? YES AND THEN
YOU CAN PRIORITIZE THE ONES WHO
ACTUALLY ARE READY TO GO. AND
THEY CAN MOVE MORE QUICKLY. UM
I'M GLAD YOU'RE LOOKING AT THAT.
THANK YOU FOR ANSWERING MY
QUESTION. VERY GOOD ANALOGY.
THANK YOU. QUESTIONS ANY OTHER
QUESTIONS TO MY RIGHT DOCTOR,
PLEASE. THANKS. I THOUGHT IT WAS
GONNA BE THE LAST QUESTION
EARLIER, BUT I JUST WANT TO I
CAN'T HELP MYSELF AFTER
LISTENING TO THE SOME OF THE
DISCUSSIONS HERE, UM HOW OFTEN
DO YOU ALL GET TOGETHER AND
BRAINSTORM ON? HOW WE SOLVE SOME
OF THESE PROBLEMS. SO. YOU KNOW,
LET'S LET'S TAKE LET'S TAKE, UH
, LET'S TAKE LITHIUM VALLEY, FOR
EXAMPLE. HE'S GOING TO HAVE SOME
MAJOR PROJECTS DOWN THERE THAT
ARE GOING TO BE GEOTHERMAL AND
PRODUCTION OF LITHIUM AND, YOU
KNOW, MAYBE THAT'S NOT A GOOD
EXAMPLE. BECAUSE THEY'RE NOT
POWER PROJECTS SO, BUT BUT MAYBE
IT IS IT IS SO, UM AND I'VE GOT
POTENTIALLY OFFSHORE WIND. SO
ARE YOU ALL GETTING TOGETHER AND
TALKING ABOUT WHAT THE
CHALLENGES ARE GOING TO BE? HOW
WE'RE GOING TO HOW WE'RE GONNA
OUR FOCUS. OUR HOW WE'RE GONNA
LOOK AT THE TRANSMISSION. HOW
WE'RE GOING TO LOOK AT THE
PROCUREMENT. HOW WE'RE GOING TO
LOOK AT AND WHO'S IN CHARGE.
WHO'S GOING TO BE IN CHARGE OF
THAT WHOLE MASSIVE, MASSIVE
ENTITY MOVING FORWARD BECAUSE
BECAUSE BECAUSE I WILL SAY, YOU
KNOW, AS YOU START MOVING IN
THESE PROJECTS I'VE TALKED TO
THE TALK TO THE COMPANIES WHO
HAVE BEEN IN MY OFFICE, SO
THEY'RE KIND OF I DON'T WANT TO
KNOW WHO'S WHO'S THE GO TO
PERSON ON THESE THINGS, AND THEY
DON'T KNOW. THEY ABSOLUTELY
DON'T KNOW. IS THERE SOMEBODY
WHO CAN MAKE IN A POSITION OF
AUTHORITY TO MAKE DECISIONS THAT
CAN BE HELPFUL TO MOVING,
REMOVING SOME OF THESE THINGS
FORWARD AND NOT JUST THIS ISSUE,
BUT OTHER ISSUES. AND THE REASON
I SAY IT WAS LIKE IT'S
SIMPLISTIC, RIGHT? UM WE HAD ONE
STOP SHOP FOR OUR IN OUR IN OUR
CITY FOR BUILDING PROJECTS.
POLICE CAME TOGETHER. FIRE THE
ELECTRIC UTILITY. YES, WE HAD
OUR OWN ELECTRIC UTILITY IN THE
TOWN, WATER AND SEWER. PLANNING
DEPARTMENT ALL COME TOGETHER.
PROJECT PROPONENTS. COME IN.
THEY SIT DOWN. THEY WORK IT OUT.
AND THEY LEAVE. WITH ONE BITE
OUT OF THE APPLE. AND SO. AS WE
TALK ABOUT ALL THE THINGS THAT
ARE HAPPENING HERE, IT JUST
FEELS LIKE THE CHALLENGES THAT
THE COMPONENTS. THE COMPANIES GO
FROM ONE SILO TO ANOTHER. AND I
DON'T KNOW HOW INTERCONNECTED IT
IS BECAUSE IT DOESN'T FEEL VERY
INTERCONNECTED TO ME. SURE SO,
UM, WE DO COORDINATE A LOT. I
MEAN, BOTH AT KIND OF OUR LEVEL
. THE FOUR OF US KNOW EACH OTHER
VERY WELL, BUT ALSO OUR STAFFS.
SO UM, WE ALL HAVE STAFF,
INTERAGENCY WORKING GROUPS, UM,
WITH DESIGNATED MEMBERS WHO WORK
CLOSELY TOGETHER THROUGH THE
VARIOUS WORK STREAMS. UM AND SO
LITHIUM VALLEY, FOR INSTANCE,
THERE WAS A LITHIUM VALLEY
COMMISSION. I SAT ON THE
COMMISSION. IT WAS STOPPED BY
THE SISI. UM, WE CAME UP WITH A
REPORT WE ALSO WORKED WITH, UM,
THE GOVERNOR'S OFFICE ON
TRANSMISSION ISSUES DOWN IN
LITHIUM VALLEY BECAUSE OF THE
NEED FOR GEOTHERMAL PROJECTS TO
SUPPORT LITHIUM EXTRACTION.
THERE'S NOW I BANK IS INVOLVED
WITH A LOAN PROGRAM AND SO WE
WORK TOGETHER TO PUT ALL THE
PIECES TOGETHER ON THAT, FOR
INSTANCE, FOR DISTRIBUTION
SYSTEM ISSUES OF THE TYPE THAT
WE'VE BEEN TALKING ABOUT. WE
HAVE ONGOING COORDINATION
THROUGH THE INTEGRATED THROUGH
THE IEPER PROCESS, BUT WE ALSO
HAVE AS I MENTIONED THE REAL
TIME STRIKE FORCE THROUGH THE
PUC, SO I WOULD SAY IF SOMEONE
COMES TO YOU AND SAYS, I WANT TO
GET INTERCONNECTED, THAT WOULD
BE C E C, UM IT FOR C P U C FOR,
UM UH FOR GENERATORS. WE ALSO
HAVE THE TRANSMISSION FORUM THAT
NEIL TALKED ABOUT. SO WE HAVE A
NUMBER OF INTER AGENCY
COLLABORATIVE WORKING GROUPS.
THERE'S ONE FOR SB 100 AS WELL.
YEAH. WHAT IS THAT? HOW IS THAT
TRANSLATING TO INCREASED
EFFICIENCY? INCREASING UH,
ABILITY TO GET THESE THINGS
GOING? BECAUSE I DON'T. SINCE
I'M NOT THERE. I DON'T KNOW, BUT
I LIKE I SAID, WE'RE STILL AT
THIS POINT WHERE WE FEEL LIKE
WE'RE REALLY STRUGGLING AND KIND
OF JUST CRAWLING ALONG HERE.
STRUGGLING WITH SOME OF THE
EIGHT I MEAN, WE'RE A YEAR
REMOVED ALMOST FROM SOME OF THE
COMMENTS WE MADE A YEAR AGO
SITTING HERE. UH AND SO WE'RE
STILL LOOKING AT REPORTS AND YOU
KNOW, AND SO HOW SO FOR I
MENTIONED THE TED TASK FORCE AS
WELL. THAT'S ANOTHER INTERAGENCY
GROUP. UM WE'RE WE HAVE
INCREASED OUR BATTERY STORAGE
GENERATION CAPACITY BY OVER
2200% IN THE PAST THREE YEARS
AND PART OF THAT IS THE
GENERATORS COMING IN THE LOAD
SERVING INDICES CONTRACTING BUT
ALSO THE STATE AGENCIES BEING
THERE TO FACILITATE. WE DID THIS
THROUGH COVID. WE DID THIS AT A
TIME WHEN OUR PORTS WERE
OVERLOADED. UM SO WE ARE SEEING
REPORT SEEING RESULTS AND
PROJECTS COME ONLINE. IT'S NOT
TO SAY WE DON'T HAVE CHALLENGES
AND WE WORK AT IT EVERY DAY, BUT
SO ABSOLUTELY UNDERSTAND WHAT
WE'RE ALWAYS TRYING TO DO
BETTER. YEAH REMEMBER, WE'RE
JUST, YOU KNOW TO KIND OF
ELEVATE YOUR QUESTION. SO FOR
EXAMPLE, ON THE RELIABILITY, FOR
EXAMPLE, WE MEET WEEKLY ON
MONDAY. SO WE HAVE A STANDING
MEETING EVERY WEEK WHERE WE ALL
COLLECTIVELY GO THROUGH THE
UPDATES FOR THE SUMMER LONG,
LONG, LONG TIME ISSUES AND YOU
KNOW, FOR EXAMPLE ON THE DEMAND
SIDE ISSUES THE STAFF MEET BI
WEEKLY, AND THEN WE ELEVATE TO
THE PRINCIPAL'S LEVEL TO LIKE A
MONTHLY MEETING, SO WE HAVE
VARIOUS VENUES THAT ARE
CHARTERED OUT WITH THE BETWEEN
THE ENERGY AGENCIES. BUT I THINK
TO YOUR POINT YOU KNOW IF YOU'RE
LOOKING FOR AN ELEVATED
TRANSPARENCY OF THE ECOSYSTEM OF
WORK THAT'S BEING DONE AND HOW
AND WHO IS ON POINT. YOU KNOW,
WE CAN, YOU KNOW, ABSOLUTELY
SHARE. YOU KNOW THE DIFFERENT
FORUMS THAT THAT THAT CAN HANDLE
THESE THINGS AND THE POINTS OF
CONTACT ON EACH ONE OF THEM. I
THINK ABSOLUTELY, UM, YOU KNOW,
HAPPY TO PROVIDE THAT TO TWO
POINTS OF CONSIDERATION IS AS
PRESIDENT DONALD JUST MENTIONED
WHEN WE GOT HIT IN 2020 IN THE
MIDDLE OF COVID. THE COVID
IMPACTS WHERE THE DEAL RIGHT THE
COVID IMPACTS WERE REAL. FOR THE
AGENCY STAFF. IT WAS A REAL FOR
CONSTRUCTION SUPPLY CHAIN AND I
THINK WE ARE COMING OUT OF THAT.
AND YOU WILL SEE MORE AND MORE.
YOU KNOW HOW HOW WE ARE ABLE TO
IMPROVE THE EFFICIENCIES AND
COMMUNICATION IS ABSOLUTELY
VITAL. THE SECOND ELEMENT JUST
FOR YOUR CONSIDERATION IS AS YOU
KNOW, WE HAVE THE BAG LEAKING
PROCESS AND NO. TWO
COMMISSIONERS, WHO ARE WORKING
ON A SPECIFIC ISSUE CAN SIT IN A
ROOM TO DISCUSS THE BROADER
IMPACT AND A LOT OF WORK IS
CROSS CUTTING WORK THAT ONE
COMMISSIONER MIGHT BE DOING AND
TRANSPORTATION CUTS WITH
RELIABILITY, BUT WE CAN SIT
TOGETHER IN A ROOM BECAUSE OF
THE BAG LICHEN LIMITATIONS SO
THAT DOES YOU NO DELAY A LOT ON
THE STAFF. TO HELP CREATE THE
FORUMS OF CROSS POLLINATION, AND
I THINK THEY ARE IN PLACE AND
YOU KNOW STARTED THAT IT'S NOT
AS ELEVATED TO YOU TO YOUR LEVEL
ON HOW WE ARE DOING BEHIND THE
SCENES AND WE'LL HAVE WILL MAKE
SURE WE CONVEY THAT TO YOU IN
MORE PUBLICLY BECAUSE I THAT I
ASKED THAT QUESTION WITH ALL AND
SAID I DIDN'T KNOW. I DON'T
KNOW. UM, I KNOW THAT THERE I'VE
HEARD THAT THERE IS SOME
COLLABORATION, SO I'M HAPPY TO
HEAR THAT. SO FINAL SAID THIS
BEFORE, UM, FINAL QUESTION FOR
NOW, ANYWAY, UM WHAT DO I TELL
MY CONSTITUENTS? WHAT DO I TELL
MY CONSTITUENTS THAT ARE
STRUGGLING TO AND TO CONNECT
PROJECTS TO WAIT FOR POWER. UM
WHAT DO I WHAT DO I TELL THEM?
BECAUSE IT'S A PROBLEM SO. WHAT?
WHAT? WHAT WOULD YOU DO IF YOU
WERE IN MY SHOES? WHAT DO I TELL
MY CONSTITUENTS? SO I THINK
FIRST STEP IS AGAIN SEND THEM TO
THE PUC, AND WE DO HAVE A
MECHANISM TO TRIAGE. THOSE
REQUESTS, UM, AND ARE WORKING
PROJECT BY PROJECT TO SEE IF
THERE ARE ALTERNATIVES IF THERE
ARE TEMPORARY SOLUTIONS IF
THERE'S SOMETHING THAT THE
UTILITY COULD BE DOING
DIFFERENTLY. TO FIND SOLUTIONS
TO VARIOUS PROJECTS. UM AND AS
WELL AS ASSIST WITH, YOU KNOW,
HAVE HAVE YOU LOOKED AT YOUR
LOAD SHAPE AND THE RIGHT WAY OR
THE UPGRADES NECESSARY, SO
WORKING THROUGH THE ISSUES ON A
CASE BY CASE PROCESS, I THINK
BASIS I THINK IT'S ALSO THOUGH,
UM AH, THAT THAT THERE ARE
PROCESSES IN THE IN THE WORKS TO
GET AHEAD OF THIS TO MOVE
FORWARD IN THE FUTURE. SO THAT
WE WON'T BE IN A TRIAGE
SITUATION SO THAT THAT THAT WILL
HAVE BETTER PLANNING PROCESS
BETTER, INTERCONNECTED, BETTER
COMMUNICATION BETWEEN LOCAL
GOVERNMENTS AND UTILITIES WITH
RESPECT TO WHAT'S COMING, AND,
UM AND SO THOSE THOSE THOSE
CONNECTIONS AND PROCESSES ARE
GROWING. UM AND WE HOPE TO SEE
THEM PLAY OUT IN THE FUTURE. BUT
IN THE MEANTIME, IT'S YOU KNOW,
WE NEED TO. WE WERE LOOKING AT
PROJECTS THAT THAT COME IN, ARE
FACING DELAYS AND ARE READY AND
LOOK FOR SOLUTIONS TO THOSE. I
APPRECIATE THAT. THANK YOU. MR
T. THANK YOU, MR. UH APPRECIATE
PRESIDENT REYNOLDS, UH, TALKING
ABOUT BATTERY STORAGE, AND I
THINK IT'S BEEN AMAZING PROGRESS
. PROGRESS I WAS JUST GONNA ASK
DEPUTY DIRECTOR KHÓ. WHETHER
BATTERY STORAGE IS PART OF THAT
STRATEGIC RESERVE OR HAS ANY
PLAN IN THAT STRATEGIC RESERVE.
THANK YOU FOR THE QUESTION. WE
HAVE RELEASED TWO SEPARATE OUR
FEES BECAUSE, AS YOU NOTED,
PERFORMED IN PRIOR CONVERSATIONS
RIGHT NOW, THE PORTFOLIO IS VERY
MUCH NATURAL GAS HEAVY. AND SO
ONE OF THE EFFORTS THAT WE'VE
TAKEN IS TO RELEASE TWO
DIFFERENT REQUESTS FOR
INFORMATION. THE FIRST ONE
ACTUALLY IS FOCUSED ON STORAGE,
BUT WE WANT TO ALSO HAVE A
BROADER VIEW OF STORAGE. WE ARE
COGNIZANT THAT FOR THE WATER
CODE, WE DON'T WANT TO COMPETE
WITH LOAD SERVING ENTITIES WHO
ARE OUT THERE TRYING TO PROCURE
FOR THEIR RESOURCE ADEQUACY
REQUIREMENTS. AND AS WE
UNDERSTAND IT, AND CONVERSATIONS
IS THAT LITHIUM ION IS STILL THE
PREFERRED RESOURCE TECHNOLOGY OF
CHOICE. SO IN RELEASING OUR
REQUEST FOR INFORMATION WE ARE
LOOKING, WHICH COULD INCLUDE
LITHIUM ION. BUT WE ARE, UM,
DEFINING STORAGE FAIRLY BROADLY
TO SEE WHAT OTHER RESOURCES ARE
AVAILABLE OUT THERE THAT MAY
HOPEFULLY NOT BE, UM IN
COMPETITION WITH WHAT LOAD
SERVING ENTITIES AND PUBLICLY
OWNED UTILITIES ARE TRYING TO
PROCURE FOR THEIR OWN NEEDS. SO
THAT'S THE FIRST ONE FOR
STORAGE. THE SECOND ONE FOCUSES
LARGELY ON THINK WHAT WE CALLED
NON FOSSIL FUEL. UM USAGE. UM SO
WE'RE LOOKING AT DIFFERENT
TECHNOLOGIES WERE HOPING TO GET
A ROBUST RESPONSE FOR US TO
EVALUATE AND THEN MOVE FORWARD
ONTO AN ACTUAL REQUEST FOR
PROPOSAL. SO WE ARE STILL AT THE
INFORMATION STAGE AND WE'RE
EXPECTING RESPONSES TO COME BACK
TO US AFTER A SHORT Q AND A
PERIOD FOR THAT, SO THAT'S ALL
TO LOOK AT THE FUTURE OF THE
RESERVE TO HOPEFULLY TRANSITION
BEYOND NATURAL GAS. AND AS WE'RE
CLEANING THE PORTFOLIO, WE DO
WANT TO REACH THOSE OTHER
TARGETS OF HAVING, UM EITHER NON
EMITTING RESOURCES, RENEWABLE
RESOURCES AS WELL IN THE
PORTFOLIO. MAYBE THIS IS KIND OF
A SILLY QUESTIONS. SO FORGIVE ME
IF IT KIND OF COMES OFF SOUNDING
ODD. BUT IT'S TO ME IT'S LITTLE
PUZZLING THAT YOU WOULD ISSUE AN
R F I. YOU HAVE TO EXPERTS
SITTING TO YOUR RIGHT AND THEIR
AGENCIES TO GIVE YOU FAIRLY UP
TO DATE INFORMATION ON WHAT'S
OUT THERE? I GUESS. WHAT DO YOU
HOPE TO GET FROM AN R F I. AND
DOES THAT? DOES THAT MEAN THAT
YOU WON'T BE? PURCHASING STORAGE
GOING INTO THIS SUMMER. I THINK
FOR THIS SUMMER, THE THERE ISN'T
SUFFICIENT TIME TO BE ABLE TO DO
THOSE PURCHASES FOR SUMMER 2023
. BUT IN TERMS OF INTERAGENCY
COORDINATION, WE DO COLLABORATE
VERY CLOSELY WITH OUR COLLEAGUES
AT BOTH THE PUC AND THE C C.
SOME OF THE ISSUES THAT WE'VE
FOUND SOMEWHAT CHALLENGING IS
THAT WE ARE LOOKING FOR
RESOURCES. UH, POTENTIALLY, THAT
WOULD, UM MAY ONLY RUN DURING
EXTREME EVENT, SO WE WANT TO
BALANCE. UM SOME OF THOSE
RESOURCES REQUIREMENTS BUT ALSO
JUST A GENERAL DESIRE TO
PARTICIPATE MORE IN THE MARKET,
FOR EXAMPLE, UM SO WE'VE HAD
VARIOUS CONVERSATIONS, BUT THE
OTHER THING WE ALSO WANT TO DO
IS TO MAKE SURE THAT WE ARE
COORDINATED. SO WE'VE TAKEN
INDIVIDUAL CONVERSATIONS. WE'VE
ALSO COORDINATED WITH P. C. C C
STAFF. BUT WE WERE HOPING THAT
WITH THE R F I, IT WOULD BE A
MUCH MORE ORGANIZED AND UNIFORM
PROCESS TO GET AS MUCH
INFORMATION AS POSSIBLE TO AS
BROAD AN AUDIENCE AS POSSIBLE.
UM SO WE HAVE THE SAME
DISCUSSION A YEAR AGO IN BUDGET
COMMITTEE. UM SO YOU'RE YOU'RE
TELLING ME THAT AT THE TIME THAT
EVERYBODY WAS RAMPING UP ON
STORAGE. WE CHOSE NOT TO.
BECAUSE LAST YEAR WHEN WE WERE
IN BUDGET COMMITTEE, WE HAD THE
SAME DISCUSSION THAT HEY,
EVERYTHING YOU'RE BUYING IS
NATURAL GAS. THE RESPONSE WAS
FAIRLY INADEQUATE. MADE IT SOUND
LIKE RESPONDING FROM THE STATE
OF TEXAS, NOT FROM THE STATE OF
CALIFORNIA. SO WHAT HAPPENED IN
THIS LAST YEAR. TO GO CLEANER
WITH YOUR STRATEGIC RESERVE.
SOUNDS LIKE THERE WASN'T
ANYTHING THAT HAPPENED. FOR THE
RESERVE WHEN. THE OFFICE WAS
STARTED IN SUMMER 2022. I THINK
WE WERE IN VERY MUCH EMERGENCY
MODE. WE HAD TO ESTABLISH THE
OFFICE. WE HAD TO POPULATE AS
MUCH AS POSSIBLE FOR A RESERVE
FOR NEED. THAT, ACTUALLY, UM,
OCCURRED AS EARLY AS THE
SEPTEMBER HEATWAVE LAST SUMMER.
SO I THINK IN THAT TIME FRAME
THAT WE WERE GIVEN IN ORDER TO
EXECUTE FOR SUMMER, HAVING
STARTED IN JULY, 2022 AND THEN
HAVING ASSETS BY SEPTEMBER, 20
TO UNDERSTAND WHAT HAPPENED IN
22. YEAH BUT SINCE WE TALKED IN
2022, WHICH WAS A YEAR AGO UNTIL
ABOUT NOW. WHAT'S BEEN DONE.
CORRECT. IT SOUNDS LIKE. STORAGE
IS NO LONGER A NOVELTY. SEEMS
LIKE THERE'S A LOT OF PEOPLE ARE
BUYING STORAGE. A LOT OF
ENTITIES WERE BUYING STORAGE.
WHY WEREN'T WE SO COMING OUT OF
THE EMERGENCY PROCESS, WE
FOCUSED FIRST ON RESOURCES THAT
WE COULD EASILY PROCURE THAT
DIDN'T COMPETE WITH THE LOW
TURNING ENTITIES. UM AS WE WERE
MOVING THROUGH, PROBABLY THE
WINTER TIME FRAME INTO SPRING.
WE ARE STILL CHECKING IN WITH
LOAD SERVING ENTITIES TO
UNDERSTAND WHERE THE MARKET IS
THERE, AND WE ARE STILL HEARING
SOME PRESSURES AROUND DESIRE TO
PROCURE THOSE RESOURCES. SO
AGAIN, WE DON'T WANT TO COMPETE
DIRECTLY WITH THEM, AS THEY ARE
STRUGGLING TO PROCURE FOR
RESOURCE ADEQUACY, AS DIRECT
DIRECTOR BAKER HAD MENTIONED
BEFORE IN OPENING STATEMENTS.
OKAY, BUT WHEN I HEAR THAT, THEN
I'M HEARING OKAY, THE ONLY
RESOURCES AND AGAIN CORRECT
PLEASE CORRECT ME IF I'M WRONG,
BECAUSE I HOPE I AM THE
RESOURCES THAT THE ENTITIES
DON'T WANT OUR OLDER TECHNOLOGY
AND DIRTIER TECHNOLOGY. SO IS
THAT WHAT WE NEED TO PURCHASE?
BECAUSE TO ME, THAT'S WHAT
PEOPLE DON'T WANT, RIGHT? THAT'S
WHAT'S AVAILABLE. I THINK FROM
THE EMERGENCY PERIOD WHEN THE
FUND WAS FIRST STARTED, WE WERE
, UNFORTUNATELY, UM, IMAGINE.
KEEP ASKING. THIS IS STARTING IN
THE FALL. SO WE GOT THROUGH THE
FALL. WE GOT THROUGH THE
EMERGENCY. YOU. YOU GOT OUR
FEEDBACK. SO WHAT'S HAPPENED
SINCE BEFORE. CORRECT SINCE THE
FALL. WE'VE HAD ADDITIONAL
CONTRACTING TO CLOSE OUT SOME OF
THE REQUIREMENTS THAT WE HAD
FROM OVER THE SUMMER, BUT ALSO
LOOKING FORWARD. UM INTO THE
SPRING. WE ARE FOCUSED ON TRYING
TO GET THREE ADDITIONAL ASSETS
ONLINE FOR THIS SUMMER 2023 AND
WHAT ARE THEY? YES SO THOSE ARE
THE THREE UNITS THAT I SPOKE OF.
IN MY OPENING COMMENTS. THOSE
ARE THE, UM ULTRA LOW EMISSIONS
, NATURAL GAS FIRED RESOURCES
AND AGAIN, THOSE OF A SIMILAR
MODEL ARE CERTIFIED UNDER THE
CALIFORNIA AIR RESOURCES BOARD.
UH, DISTRIBUTED GENERATION
PROGRAM, AND SO THOSE DO HAVE
EARLY LOW EMISSIONS EVEN THOUGH
THEY ARE NATURAL GAS FIRED, SO
THOSE ARE COMMITTED TO COME
ONLINE FOR THIS SUMMER. AND
MOVING FORWARD SIMULTANEOUSLY
WITH A FOCUS ON THE SUMMER. WE
ALSO HAD RELEASED THE OUR FEES
TO UNDERSTAND WHAT OTHER
TECHNOLOGIES ARE OUT THERE AS
WE'RE STILL SEEING PRESSURE ON
THE STORAGE SIDE, IT'S A HOPE
THAT BY NEXT SUMMER THAT WILL
HAVE UM WE'LL BE ABLE TO
PURCHASE CLEAN. WE ARE HOPEFUL
FOR WE ARE HOPEFUL FOR THAT. SO
WE ARE HOPING TO SEE BOTH ROBUST
RESPONSE ON THE R FIVE S, UM AND
WE'LL MOVE AS EXPEDITIOUSLY AS
WE CAN ADD THOSE RESOURCES TO
THE RESERVE AS IF APPROPRIATE.
IS THERE A REASON WHY THEY
COULDN'T BE CLEAN TECHNOLOGY.
CLEAN ENERGY. IS THERE ANY
REASON TO THINK THAT THERE
WOULDN'T BE? THEY WOULDN'T BE
CLEAN ENERGY. HMM NOT AT THIS
POINT. WE ARE. THAT'S WHY WE
RELEASED THE R F. I S WE ARE
HOPING WE DO GET A ROBUST
RESPONSE FOR BOTH THE STORAGE
SIDE AS WELL AS RESOURCES THAT
ARE NOT USING FOSSIL FUELS.
THANK YOU. JUST JUST GOING BACK.
UM APPRECIATE THE HIGHLIGHT OF,
UM. DEMAND RESPONSE. AND I KNOW
I HAD A CHANCE TO TALK TO
COMMISSIONER GUNDA ABOUT THIS
ALSO JUST WANT TO GET A SENSE OF
HOW WE CAN UM REALLY,
POTENTIALLY GROW THE ADOPTION OF
DEMAND RESPONSE. I KNOW THE
TECHNOLOGY IS STILL VERY MUCH IN
ITS INFANCY AND STILL GROWING.
IT SEEMS LIKE, UM THIS IS
TECHNOLOGY THAT WE COULD DEPLOY
. DEPLOY QUICKLY AND STILL, UH
BE ABLE TO DO IT CHEAPLY. WE
DON'T HAVE TO WORRY ABOUT
INTERCONNECTION OR WE HAVE TO
WORRY ABOUT TRANSMISSION. YEAH
THANK YOU. REMEMBER TING? UM
IT'S JUST KIND OF HIGH LEVEL.
OVERVIEW SO WE ARE HOPING TO
SUBMIT THE LORD FLEXIBILITY GOAL
FOR THE STATE REQUIRED BY 8 46
WERE SUPPOSED TO COMPLETED BY
JUNE 1ST MIDDLE OF JUNE.
HOPEFULLY IT'LL COME COME TO THE
LEGISLATURE. SO AS YOU POINTED
OUT, THERE IS A SIGNIFICANT
OPPORTUNITY ON THE DEMAND SIDE
THAT WE COULD OPERATIONALIZE. SO
WE ARE LOOKING AT IT IN BROADLY,
THREE BUCKETS, SO ONE IS REALLY
IMPROVING THE DEMAND RESPONSE ON
THE LORD MODIFYING SIDE AND
UNDER FORECASTING SIDE THROUGH
AUTOMATION AND GREAT DESIGN, SO
THAT'S A COLLABORATION WITH
BEING CPUC AND CC ON REALLY KIND
OF LOOKING AT THE CAL FUSE MODEL
THAT THAT CPS HAS COME UP WITH
ANOTHER TIME OF YEARS. RATES.
AND MERGING THAT WITH MIDAS,
WHICH IS OUR ONLINE DATABASE TO
REALLY HELP AUTOMATE THE DESIGN
AND THE DATA TOGETHER, SO THAT'S
ONE ELEMENT WE ARE WORKING ON,
AND I THINK THAT IT'S MOSTLY
INCENTIVES FOR AUTOMATION WOULD
BE REALLY HELPFUL. AND THEN WE
HAVE THE RESOURCE ADEQUACY
BUCKET, WHICH IS WHAT WE HAVE
TODAY. ONE OF THE PROBLEMS WE
HAVE ON THE RESOURCE ADEQUACY IS
SOME OF THE RESOURCES PERFORM
OVERPERFORMED SOME DAYS AND
UNDERPERFORM SOME DAYS, GIVEN
THE WEATHER AND SUCH, SO WHAT
WE'RE HOPING TO DO IS BIFURCATED
THOSE ALREADY SOURCES THAT EXIST
TODAY THAT MIGHT NOT BE ABLE TO
FULLY PERFORM INTO MORE OF AN
EMERGENCY LAW REDUCTION PROGRAM
. AND TO THAT END, WE ARE
THINKING THROUGH OUT OF THE
OPERATIONALIZED THAT THE MONEY
THAT THE LEGISLATURE PROVIDED US
IN TERMS OF THE DSG S AND DIVA
MONEY WE ARE GOING TO IMPLEMENT
THERE WAS MONIES FOR PILOTING
SOME OF THESE. SOME OF THESE
PROGRAMS WITH IN COLLABORATION
WITH BèC, AND OUR HOPE IS TO AT
LEAST DOUBLE THOSE DEMAND
FLEXIBILITY RESOURCES BY THE END
OF THE DECADE. IS THERE ANYTHING
WE CAN DO TO, UM I KNOW ONE OF
THE CHALLENGES WITH DEMAND
RESPONSE IS IT'S UM AH! YOU KNOW
YOU HAVE YOU HAVE INDIVIDUALS
THAT ARE IN CHARGE OF THEIR OWN.
TECHNOLOGY SO IS THERE A WAY TO
CREATE SOMETHING THAT'S MORE
SYSTEMIC SO THAT WE COULD
ACTUALLY RELY ON? YOU KNOW,
50,000 PEOPLE DOING THIS OR
20,000 PEOPLE DOING THIS? WHEN?
WHEN? WHEN WHEN WE NEED THAT
ASSISTANCE? YEAH ABSOLUTELY. AND
I THINK YOU ABSOLUTELY KIND OF
NAILED THE POINT ON THAT IS, YOU
KNOW HOW DO WE ENSURE THE
PERFORMANCE? SO TO THAT END, I
THINK THERE'S A COUPLE OF
ELEMENTS THAT BèC CC AND CAISO
AGREE ON WHICH IS AROUND,
STANDARDIZING HOW WE EVALUATE
THE DEMAND RESPONSE AND THEN
LORD FLEXIBILITY. AND HOW DO YOU
OPERATIONALIZED TO THE END THAT
WE PAY BASED ON PERFORMANCE? SO
WE ARE WORKING ON THAT AND WILL
IN A IN JUNE REPORT. YOU WILL
DEFINITELY SEE SOME OF THE
RECOMMENDATIONS LATER. THANK
YOU. THANK YOU. MR TING LOOKED
AT MY RIGHT. ANY OTHER
QUESTIONS? YES, SIR. THANK YOU.
IF I MAY. I JUST WANTED TO, UH,
TRY TO WRAP UP. I WON'T SAY LAST
QUESTION LIKE MR WOOD, BECAUSE I
KNOW EVERY GOOD LAWYER KNOWS NOT
TO EVER SAY THAT, UM PRESIDENT
REYNOLDS. I JUST WANT TO CLARIFY
AND IN TERMS OF GOING BACK FROM
GOING BACK TO THE ISSUE OF
TRANSMISSION GRID PERMITTING, UM
AM I CORRECT IN MY UNDERSTANDING
IS THAT THE PUC IS THE LEAD
AGENCY FOR THE OVERSEEING THE
PERMITTING PROCESS FOR, UH, ANY
TRANSMISSION GRID. UM PROJECTS
IN TERMS OF EXPANDING THE, UM
TRANSMISSION LINES FOR IN
CALIFORNIA. YES, OKAY. AND, UM.
DOES THAT PROCESS INCLUDE
WORKING WITH CITIES TO, UH,
PERMITS AND IN OTHER WORDS, IF
TRANSMISSION LINES ARE CROSSING
THE BORDERS OF MULTIPLE CITIES,
THEN, UH, PART OF THAT
PERMITTING PROCESSES WORKING
WITH EACH AND EVERY ONE OF THOSE
CITIES. YES OKAY. AND SO IS IT
FAIR TO SAY THAT, UH UM THERE IS
A SIGNIFICANT AMOUNT OF TIME
SPENT BY THE PUC TO CONSULT WITH
AND GET THE APPROVAL OF EVERY
CITY AND IN WHICH, UH, THAT
TRANSMISSION PROJECT CROSSES
BORDERS. UM I YES. I MEAN, I
ASSUME WE GO THROUGH THE FULL
SEQUEL PROCESS AND, UM, SO THERE
WOULD BE INVOLVEMENT OF
RESPONSIBLE AGENCIES ALONG WITH
US AS THE LEAD AGENCIES, SO I
ASSUME THAT THAT THAT TAKES
PLACE FOR THE SIGNIFICANT LINES
. OKAY SO, UH, YOU KNOW, WHILE I
APPRECIATE WHAT. ALL OF YOU HAVE
BEEN TALKING ABOUT IN TERMS OF
YOU KNOW THE YOU KNOW THE MONDAY
MORNING MEETINGS TO ADDRESS
RELIABILITY OR THE OR THE TED
TASK FORCE MEETINGS OR THE HYPER
MEETINGS? I MEAN, IT SEEMS LIKE
A LOT OF HIGH LEVEL MEETINGS TO
MAKE SURE THAT THE SILOS WERE
NOT THE SILOS. THE AGENCIES ARE
TALKING TO EACH OTHER, UM IN
TERMS OF GOING BACK TO WHAT MR
WOOD WAS TALKING ABOUT THAT THAT
ONE STOP PERMITTING SHOP AT THE
CITY LEVEL. YOU KNOW THE ANALOGY
OF THAT WE DO NOT FELT WE DON'T
HAVE THAT AT THE STATE LEVEL TO
THE EXTENT THAT THE PUC HAS TO
CONSULT WITH EACH AND EVERY ONE
OF THESE. UH CITIES IS THAT IS
THAT FAIR TO SAY. WELL. I THINK
THERE ARE NOT CURRENTLY THERE
AREN'T MULTIPLE. WE HAVE ONE
TRANSMISSION PROJECT. NOW THAT'S
COMING UP AND ACTIVE PROCEEDING
, AND I SHOULDN'T SAY THERE ARE
PROBABLY MORE IN THE WORKS, BUT
ONE THAT'S COMING CLOSE TO
DECISION. I THINK YOU KNOW, NEIL
CAN TALK ABOUT THE LOCATION OF
SOME OF THE PROJECTS THAT HE'S
LOOKING AT. THE KAISER IS
LOOKING AT NOW. SOME OF THEM ARE
OUT OF STATE. UM SO I THINK
THERE ARE THREE THAT ARE OUT OF
STATE. UM AND SO WHILE WE
CERTAINLY YOU KNOW, WORK WITH
THE LOCAL GOVERNMENTS. IT'S
THERE'S NOT AS MUCH ACTIVITY AS
THERE ARE IN SOME OF THESE OTHER
AREAS. UM AND SO WE WOULD, YOU
KNOW, WORK CLOSELY WITH LOCAL
GOVERNMENTS AND YOU KNOW, AND
CERTAINLY, YOU KNOW, DO A LOT OF
WORK THROUGH STAFF DO A LOT OF
WORK WITH COUNTIES AND CITIES
AND THE UTILITIES ALSO WORK VERY
CLOSELY WITH COUNTIES AND CITIES
AND WE'RE ALWAYS TRYING TO
ENCOURAGE THAT LOCAL CONNECTION
, UM AS WELL AS FROM THE STATE
LEVEL, MAKING SURE THAT WE'RE
REACHING OUT EVEN INTO
COMMUNITIES. AND, YOU KNOW,
MAYBE NOT JUST LOCAL GOVERNMENTS
, BUT COMMUNITIES WHO ARE
IMPACTED BY ANYTHING THAT WE'RE
DOING AS WELL AS TRIBAL
GOVERNMENTS. SO THERE IS A LOT
OF COLLABORATION. I THINK YOU'RE
RIGHT. WE JUST MENTIONED THE
STATE PARTICIPATION HERE BUT
THROUGH ALL OF OUR AGENCIES THAT
WE ALSO HAVE CONNECTIONS WITH
COMMUNITIES AND LOCAL
GOVERNMENTS. COMMISSIONER GUNDA
YOU. YOU TALKED ABOUT A PROGRAM
E I. R. IT IS. YES UM
ASSEMBLYMEMBER'S. IT HAS BEEN,
UM, DISCUSSED IN THE PAST AS A
POTENTIAL FOR STREAMLINING
PERMITTING. WHERE DO YOU LOOK AT
A CORRIDOR? UM THAT THAT COULD
BROADLY BE CONSIDERED UNDER
ENVIRONMENTAL REVIEW, AND THEN
SPECIFIC PROJECTS COULD BE CITED
IN THAT, UM, IN THE LAST SEVERAL
YEARS, WE YOU KNOW, AND AS AS
PRESIDENT DONALD MENTIONED MUCH
OF OUR LORD WAS VERY STABLE. NOW
THAT WE'RE THINKING ABOUT THIS
HUGE GENERATION, UM WITHIN THE
STATUTE THAT SISI HAS TO DO,
WHICH IS THE CORRIDOR ASSESSMENT
AT THE STAFF ARE HOPING TO PUT
THAT OUT IN THE PUBLIC SPHERE TO
CONSIDER IF THE PARTIES AND THE
STAKEHOLDERS BROADLY ENCOURAGE
THAT VIEW, SO WHERE WOULD BE
POSSIBLE? YOU KNOW? YEAH. I
MEAN, WOULD IT BE FEASIBLE IF.
IF LIKE, SAY IF THERE WAS A
TRANSMISSION PROJECT THAT THAT
CROSSED MULTIPLE CITY, YOU KNOW,
MUNICIPAL BORDERS THAT YOU CAN
HAVE A PROGRAMMATIC E I R THAT
WOULD REPLACE EACH AND EVERY ONE
OF THOSE CITIES HAVING TO DO ITS
OWN SEQUA REVIEW. YEAH I THINK
MUST HAVE MUCH OF THE SEQUEL. I
JUST WANT TO ELEVATE THIS, WHICH
IS HE'S DONE IN CONSULTATION
WITH THE CITIES SO THAT THERE
ARE KEY STAKEHOLDER IN THE
PROCESS, AND WE TAKE THAT INPUT
AS SO RIGHT NOW, UM, BUT I THINK
IT'S IN RARE INSTANCES WHERE THE
CITY ACTUALLY HAVE TO PROVIDE A
SEPARATE PERMIT. IT'S MORE OF A
CONSULTATIVE ROLE. BUT YOUR
POINT YES, IT WILL CREATE
EFFICIENCIES. ALL RIGHT. THANK
YOU. THANK YOU VERY MUCH. LIKE
TO THANK ALL THE PANELISTS OR
YOUR TIME TODAY AND RESPONSES TO
ALL THE QUESTIONS THAT WERE
ASKED. I APPRECIATE EVERY SINGLE
MEMBER WHO PUT FORWARD QUESTIONS
TODAY. CLEARLY THERE IS A
TREMENDOUS AMOUNT OF INTEREST IN
THIS CONVERSATION. YOU KNOW, WE
PROBABLY COULD SPEND ANOTHER
HOUR WHERE WE ALSO TALK ABOUT.
WHO'S GONNA PAY FOR ALL THIS AND
HOW WE ENSURE THAT IT ISN'T THE
RATEPAYERS AND ONLY THE REPAIRS.
WHEN WE ARE TALKING ABOUT THE
NEED FOR STRONGER, RELIABLE
SYSTEM BECAUSE YOU KNOW, IN THIS
COMMITTEE WE'VE CONSISTENTLY
TALKED ABOUT RELIABILITY,
COUPLED WITH AFFORDABILITY AND
ONE OF THE MAJOR CONVERSATIONS
THAT I THINK ALSO MERITS ANOTHER
HOUR OR TWO OF A CONVERSATION.
PERHAPS NOT TODAY, BUT CERTAINLY
UM, WE'RE WORKING WITH OUR
COMMITTEE TEAM TO SHAPE WHAT A
POTENTIAL HEARING COULD LOOK
LIKE AROUND THAT ISSUE AS WELL.
SO I JUST WANTED TO SAY THANK
YOU AGAIN, HAPPY TO TAKE ANY
CLOSING, YOU KNOW, COMMENTS FROM
EACH ONE OF THE PANELISTS,
INCLUDING MR BAKER, WHOSE, UM
ALIGN AND SO WE'LL START WITH
THE FOLKS WHO ARE HERE AND THEN
WRAP UP WITH MR BAKER. THANK YOU
, CHAIR GARCIA AND THE AND THE
MEMBERS REALLY APPRECIATE THIS
OPPORTUNITY TO COME IN FRONT OF
YOU AND PROVIDE AN UPDATE. WE
KNOW THAT THERE IS A LOT OF
MOVING PIECES HERE AND
APPRECIATE THE OPPORTUNITY TO
CONTINUALLY UPDATE YOU THROUGH
THE QUARTERLY REPORTS. UM JUST
AS YOU KNOW IT WAS. IT WAS
HINTED IN THE CONVERSATIONS
TODAY. I THINK MUCH OF OUR
TRANSITION IN THE ENERGY SECTOR.
WELL YOU KNOW, WHILE WE KNOW
WHERE POINT B IS AND WHERE WE
ARE TODAY, I THINK IT IT COMES
TO SOME TRADE OFFS IN THE
INTERIM, AND WE APPRECIATE YOU
GIVING US THE OPPORTUNITY TO LAY
OUT THOSE TRADEOFFS. WHETHER IT
MIGHT BE AFFORDABILITY OR
RELIABILITY OR EQUITY. SO THANK
YOU SO MUCH AND LOOK FORWARD TO
CONTINUING TO PROVIDE YOU
UPDATES. THANKS. THANK YOU, MR
CHAIR, AND MEMBERS OF THE
COMMITTEE REALLY APPRECIATED THE
OPPORTUNITY TO BE HERE TODAY AND
THANK YOU. ALSO FOR RAISING THE
ISSUE OF RAPE PAIR AFFORDABILITY
. WE KNOW THAT RATES ARE GOING
UP IN CALIFORNIA, AND WE
REALIZED HOW IMPORTANT IT IS TO
THINK ABOUT COST EFFECTIVE
SOLUTIONS TO ALL OF THE PROBLEMS
WE'VE BEEN TALKING ABOUT, AND TO
MAKE SURE THAT OUR PROCESSES ARE
GEARED TO FINDING THOSE COST
EFFECTIVE SOLUTIONS AND MAKING
SURE THAT WE'RE CONTROLLING
COSTS AS MUCH AS POSSIBLE. SO
THANK YOU VERY MUCH. THANK YOU.
CHAIRMAN ASSEMBLYMEMBER'S FOR
HAVING ME HERE TODAY. I KNOW
IT'S A DIFFICULT POSITION THAT
DWR IS IN IN FOSTERING THIS
TRANSITION TO OUR CLEAN ENERGY
FUTURE. UM AND AS
ASSEMBLYMEMBER'S TING NOTED, YOU
KNOW THE PORTFOLIO IS RATHER
NATURAL GAS HEAVY, BUT I THINK
IN THERE WE DO WANT TO ENSURE
THAT WE ARE THERE FOR THE STATE
FOR EXTREME EVENTS FOR
RELIABILITY. BUT ALSO IMPROVE
THAT PORTFOLIO MOVING FORWARD.
SO IT REALLY APPRECIATE THE
QUESTIONS AND YOUR TIME HERE
TODAY. THANK YOU. YES, AND I
JUST ALSO WANTED TO, UH THAT'S
ON MY THANKS AS WELL FOR THE
OPPORTUNITY TO PARTICIPATE TODAY
. I HOPE THE WERE ABLE TO HELP
PROVIDE SOME CLARITY ON SOME OF
THE ISSUES WE'RE DEALING WITH.
AND JUST WHEN YOU KNOW, JUST
WANTED TO REINFORCE AS WELL THAT
FOR US GETTING THE MAXIMUM
VOLUME OF RESOURCES CONNECTED AS
QUICKLY AS POSSIBLE AS BASICALLY
JOB ONE AND GETTING THE
TRANSMISSION IN PLACE TO SUPPORT
IT, SO THANK YOU. MISS BAKER.
THANK YOU, MR CHAIR. THANK YOU
FOR HAVING ME HERE AND I LOOK
FORWARD TO FURTHER DISCUSSIONS
ON AFFORDABILITY. I THINK
THERE'S A LOT OF PLACES WE CAN
GO THAT BOTH ADVANCE OUR
DECARBONIZATION AGENDA AND BRING
MORE AFFORDABILITY FOR
RATEPAYERS. I DO WANT TO CLOSE
ON ONE NOTE, THOUGH. UM THE YOU
KNOW IF IT WASN'T THE CASE THAT
WE WERE, UM, YOU KNOW,
ESSENTIALLY BEING MUGGED BY THE
CLIMATE. UM THIS WOULD HAVE BEEN
A VERY, VERY CELEBRATORY. UM UH
, SESSION BECAUSE WHAT THIS AND
WE ARE A PARTY IN PUC
PROCEEDINGS WERE NOT PART OF THE
, UH, COORDINATION THAT HAPPENS
BETWEEN THE AGENCIES. UM BUT THE
AMOUNT OF RESOURCES THAT WE WERE
THAT OUR STATE WAS ABLE TO BRING
ONLINE. I THINK IT'S TRULY
HEROIC. AND UM, WE SHOULD BE
LOOKING TO THE LESSONS LEARNED.
YOU KNOW? HOW DID WE GET AS
THOUSANDS OF MEGAWATTS OF
BATTERY POWER? UM YOU KNOW,
HOWEVER YOU TRYING TO QUARANTINE
ESSENTIALLY, UH FOSSIL RESOURCES
AND ESSENTIALLY KEEP THEM OUT OF
THE MARKET SO THAT THEY RUN LESS
. UM AND HOW CAN WE APPLY THAT
KIND OF THINKING TO THE OTHER
PROBLEMS THAT WE HAVE IDENTIFIED
WITH WHETHER IT'S TRANSMISSIONS
OR HOOKUPS AND, OF COURSE,
AFFORDABILITY. SO UM, YOU KNOW
AGAIN AS AN OUTSIDER, I THINK WE
REALLY MADE SOME REALLY
IMPORTANT STEPS TOWARDS
RELIABILITY. UM AND YOU KNOW, I
AS A RATEPAYER AND A CITIZEN, I
YOU KNOW, I CONGRATULATE THE, UH
, YOU KNOW THE PLANNING AND
REGULATORY AGENCIES THAT WERE
ABLE TO ACCOMPLISH THAT. AND UH,
HOPEFULLY UH, YOU KNOW, WE WON'T
GET WE WON'T BE IN SITUATIONS
WHERE WE WERE IN THE LAST COUPLE
OF YEARS. THANK YOU AGAIN, UH,
MR CHAIR. THANK YOU. MR BAKER.
LOOKED TO MY RIGHT LEFT. NO MORE
QUESTIONS UP HERE. WE'LL MOVE ON
TO NOW. WHAT IS THE PUBLIC
COMMENTS SECTION OF THE AGENDA,
PLEASE STATE YOUR NAME AND THE
ORGANIZATION THAT YOU'RE WITH.
WE WOULD APPRECIATE. UH YOU KEEP
YOUR COMMENTS, UH, RIGHT TO THE
POINT. SO PLEASE THE PUBLIC
COMMENT, UH, SECTION OF THE
AGENDA IS NOW OPEN. THOSE
WISHING TO ADDRESS THE COMMITTEE
HAS COME FORWARD. SEE NO ONE. WE
WILL THEN CONCLUDE WITH THIS
HEARING. THANK YOU AGAIN. I'LL
FOR PARTICIPATING. THIS MEETING
IS ADJOURNED.