GOOD AFTERNOON. I UH, WOULD LIKE
TO CALL TO ORDER THIS HEARING OF
THE ASSEMBLY COMMITTEE ON
UTILITIES AND ENERGY. WE'RE HERE
FOR AN INFORMATIONAL HEARING TO
DISCUSS STATE PLANNING AND
COORDINATING FOR THE ENERGY
SECTOR, PARTICULARLY AS WE WORK
TO DELIVER ON CALIFORNIA'S
CLIMATE GOALS AND BUILD OUR
CLEAN ENERGY FUTURE. BEFORE WE
BEGIN. I HAVE A COUPLE OF
HOUSEKEEPING ITEMS TO GO OVER
FOR SOME OF OUR PANELISTS WILL
BE PARTICIPATING REMOTELY TODAY.
UM PLEASE NOTE THAT THERE WILL
NÓ LONGER BE PHONE TESTIMONY AT
TODAY'S HEARING. PUBLIC COMMENT
WILL BE EITHER IN PERSON OR
SUBMITTED VIA EMAIL ON THE
COMMITTEE'S WEBSITE.
ADDITIONALLY I WILL MAINTAIN
DECORUM DURING THE HEARING, AS
IS CUSTOMARY IN ORDER TO HEAR AS
MUCH FROM THE PUBLIC WITHIN
WITHIN THE LIMITS OF OUR TIME.
WE WILL NOT PERMIT CONDUCT THAT
DISRUPTS OR OTHERWISE IMPEDES
THE ORDERLY CONDUCT OF
LEGISLATIVE PROCEEDINGS. ANY
INDIVIDUAL WHO IS DISRUPTIVE MAY
BE REMOVED FROM THE ROOM. UH I'D
LIKE TO TAKE THIS MOMENT TO
WELCOME ALL OF OUR RETURNING
MEMBERS OF THE COMMITTEE AND
ALSO TO WELCOME OUR NEWEST
MEMBERS. ASSEMBLY MEMBERS,
FREEDMEN ASSEMBLY MEMBER JOE
PATTERSON, DOCTOR WOOD AND
ASSEMBLY MEMBER ZUR. WELCOME
EVERYONE. UH, I'D ALSO LIKE TO
TAKE A MOMENT TO WELCOME OUR NEW
èC èC S¼ Tð SCIENCE. FELLOW
DOCTOR KATHLEEN CHEN TO THE
COMMITTEE. WELCOME, KATHLEEN. UM
. AND BEFORE WE JUMP INTO OUR
WITNESSES, I, I WILL NOTE THAT
THIS IS OUR FIRST HEARING OF
2024. IT'S MY FIRST HEARING AS
THE CHAIR OF THE COMMITTEE ON
UTILITIES AND ENERGY, AND I JUST
WANT TO TAKE A MINUTE TO SET
TODAY'S, UH, DISCUSSION IN
CONTEXT. SO UM, I THINK WE ALL
RECOGNIZE THAT THIS IS A PIVOTAL
MOMENT FOR CALIFORNIA. UH, WE
HAVE SOME VERY AMBITIOUS CLIMATE
GOALS BEFORE US, AND, UH.
THERE'S A MONUMENTAL CHALLENGE
ON OUR HANDS TO DELIVER ON THOSE
SCHOOLS AND TO BUILD
CALIFORNIA'S CLEAN ENERGY FUTURE
. WE NEED TO BE MINDFUL THAT AS
WE ARE WORKING TO BUILD THAT
FUTURE, WE NEED TO BALANCE
SUSTAINABILITY, AFFORDABILITY
AND RELIABILITY. AND UH, THAT
ALL STARTS WITH A PLAN. SO
THAT'S WHY PLANTING IS THE TOPIC
OF OUR FIRST HEARING OF 2024.
AND WHILE THE TOPIC MAY SEEM
DENSE BY VIRTUE OF THE NUMBER OF
PLANNING PROGRAMS AND
ADMINISTRATIVE ENTITIES
COORDINATING THEM BUT NOTHING
COULD BE MORE REAL THAN THE
CRITICAL INFRASTRUCTURE THAT WE
ARE TALKING ABOUT TODAY. THE WAY
THAT CALIFORNIA PLANS FOR THIS
INFRASTRUCTURE FOR THE
ELECTRICITY GRID THAT IS THE
BACKBONE OF OUR OF MANY OF OUR
BROADER CLIMATE POLICIES IS
ABSOLUTELY VITAL. AND WHILE
THERE IS CERTAINLY MORE THAN ONE
WAY TO DELIVER ON CALIFORNIA
SCHOOLS, MEETING THEM AS
AFFORDABLY AND RELIABLY AS
POSSIBLE, ABSOLUTELY REQUIRES
EFFICIENT AND EFFECTIVE
PLANNING. UH, SO WITH THAT, UM.
ARE THERE ANY OTHER? WOULD
ANYONE LIKE TO MAKE COMMENTS
BEFORE WE BEGIN? YES, PLEASE.
UH, THANK YOU, MADAM CHAIR, I.
I, UH AS THE VICE CHAIR, I ECHO
THE COMMENTS HERE. THIS IS
IMPORTANT, BUT I ALSO WANT TO,
UH UNDERSCORE THE ABSOLUTE
NECESSITY OF RELIABILITY AND
AFFORDABILITY. AND I AM I AM
CONCERNED. THAT THAT I'VE BEEN
HERE 11 YEARS. THIS IS MY 12TH.
I'VE BEEN VICE CHAIR OF THIS
COMMITTEE. AND FROM THE VERY
BEGINNING I HAVE BEEN CONCERNED
ABOUT TWO THINGS. OUR GRID IS
BECOMING INCREASINGLY UNRELIABLE
IN THE COST OF ELECTRICITY TO
OUR FOLKS. IS INCREASINGLY MORE
AND MORE EXPENSIVE. UM AND SO I
THINK THAT ASPIRATION IS ONE
THING. BUT REALITY IS ANOTHER.
AND I THINK WE HAVE TO REMEMBER.
THAT THE, UH. THE SCIENCE OF HOW
ELECTRONS ARE CREATED. UH AND
S¼. SENT TO PEOPLE. UH I THINK
WE'VE GOT TO BE CAREFUL THAT WE
DON'T WAR. UM, WITH WITH THE
WITH THE BASICS OF HOW ELECTRONS
ARE CREATED, HOW MUCH THEY COST
AND HOW THEY GET, UH TO PEOPLE.
UH, BECAUSE WITHOUT THAT WE WILL
CONTINUE THIS ARC. AND IF YOU
LOOK AT THE RELIABILITY ISSUES
WITH THIS GRID WHEN I FIRST
SHOWED UP, WE WERE NOT HAVING
THE UNRELIABLE ISSUES THAT WE
HAVE TODAY. AND IF YOU LOOK AT
THE RATES THAT WE ARE CHARGING
TO PEOPLE TODAY THEY ARE
SUBSTANTIALLY. UH I REPRESENT AN
AREA THAT IS THAT IS ALMOST
ENTIRELY PG AND E. AND WE HAVE
RELIABILITY ISSUES. WE HAVE
CONNECTION ISSUES. WE HAVE
ELECTRIFICATION ISSUES AND WE
HAVE COST ISSUES. SO AMBITION IS
ONE THING. BUT IF THAT AMBITION.
CREATES A SET OF CIRCUMSTANCES
IN WHICH IN WHICH PEOPLE'S
ELECTRICITY IS LESS RELIABLE AND
MORE EXPENSIVE. I DON'T THINK WE
HAVE ACHIEVED MUCH FOR THE
PUBLIC. AND SO, UM, I, I DON'T
THINK WE NEED UH, WE'VE WE'VE
GOT TO GET PAST THIS IDEA THAT
WE CAN YOU KNOW, UH, WAR WITH
PASS LAWS? UH UH, THAT. FRANKLY
I MEAN, YOU'VE GOT TO HAVE
ENOUGH SUPPLY. YOU'VE GOT TO
HAVE ENOUGH FOR THE DEMAND. IT'S
GOT TO BE READY AND AVAILABLE.
IT'S GOT TO BE AFFORDABLE. AND
WHEN YOU GO TO THE WALL, AND YOU
TURN ON THE PLUG. IT'S GOTTA BE
THERE. AND YET WE HAVE GONE
THROUGH IN 11 YEARS. I'VE BEEN
VICE CHAIR HERE. I MEAN, I, I
WAS ALWAYS TOLD THERE'S WE'VE
GOT. WE'VE GOT, UH UH OFF ROADS
RIGHT? BECAUSE WE'RE ALWAYS
SAYING WELL, IT'S IMPORTANT TO
HAVE RELIABILITY AND IT'S
IMPORTANT FOR US TO HAVE A COST.
AND WHEN WE HAVE THOSE ISSUES WE
WE'VE GOT WAY OFF ROADS ON ALL
OF THIS, UH MANDATED. UH SUPPLY.
WELL. WHERE ARE THOSE OFF ROADS
WHEN WE USE THEM? IF YOU TAKE A
LOOK AT THE GRID TODAY. AND ITS
COST. IT IS SUBSTANTIALLY
HIGHER. THAT 11 YEARS AGO. AND I
COME FROM AN AREA WHERE HUNDREDS
OF HOMES WERE GOING TO BE
FALLING OUT OF ESCROW. BECAUSE
CONNECTIONS COULDN'T BE MADE BY
PG AND E. UH, WE HAD A MAJOR
CAMPUS OF OUR COMMUNITY COLLEGE
IN WEST FRESNO, WHICH IS A GAME
CHANGER FOR THAT COMMUNITY, AND
IT WAS DELAYED OVER A YEAR
BECAUSE WE COULDN'T GET
ELECTRICITY TO THE PROJECT. WE
HAVE AN AIRPORT THAT IS ONE OF
CALIFORNIA'S BUSIEST. WE ARE
COMING BACK STRONGER THAN EVER.
2 MILLION PASSENGERS AFTER COVID
UM, WE'RE INTERNATIONAL. WE'VE
INTERNATIONALIZED IT. THAT
INTERNATIONAL TERMINAL IS
GROWING, AND OUR CONCERN IS, AS
WE CONSTRUCT IT. WILL PG AND E
BE ABLE TO CONNECT AND THE ISSUE
THERE. QUITE FRANKLY, IS HOW
DOGGONE LONG IT TAKES TO GET
TRANSMISSION LINES UP AND GOING.
AND SO LET'S LET'S BE REALISTIC
IN THIS HEARING. IF WE DON'T
HAVE TRANSMISSION, IT DOESN'T
MATTER. WHERE THE ELECTRICITY
COMES FROM OR WHERE, AND I'VE
I'VE TALKED ABOUT THIS IN THE
PAST. I UNFORTUNATELY UH UH, THE
THIS LEGISLATIVE BODY HAS
DECIDED THAT THERE ARE MORAL
ELECTRONS AND IMMORAL ELECTRONS.
AND WE'RE GONNA MAKE SURE THAT
THOSE IMMORAL ELECTRONS AREN'T
UH, IN THAT MIX. YOU KNOW
SOMETHING? IT'S THE IMMORTAL
ELECTRONS THAT KEEP THE LIGHTS
ON. AND WE HAVE THESE BROWNOUTS
AND BLACKOUTS. WE GO TO THE SPOT
MARKET. AND WE GET NATURAL GAS
AND WE GET OTHER FORMS OF
ELECTRICITY OTHER THAN WIND AND
SOLAR, ET CETERA. THIS IS THE
REALITY OF WHAT WE'RE FACING.
AND ALL OF THE ASPIRATION AND
HAPPY TALK ABOUT THIS. ISN'T
GOING TO SOLVE THE PROBLEM.
BECAUSE WE IF WE STEP INTO THIS
UNCERTAIN. AND WITHOUT A
COMPREHENSIVE AND RELIABLE PLAN.
WILL BE HERE IN YEARS TO COME
AND WONDER WHY THE GRID IS EVEN
MORE UNRELIABLE. AND WHY IT'S
EVEN MUCH MORE EXPENSIVE. AND SO
I. I AM HERE TO LISTEN AND BUT
I'M ALSO HERE TO CAUTION. THANK
YOU. VICE CHAIR, PATTERSON. UM
AND I CERTAINLY APPRECIATE YOUR
FOCUS ON COST AND AFFORDABILITY.
AS UM, THE MEMBERS OF THE
COMMITTEE. YOU KNOW, WE WILL BE
HAVING A HEARING ON MARCH FIFTH
TO DO A DEEP DIVE INTO COST AND
AFFORDABILITY. UH, AS WELL WHICH
IS CERTAINLY TOP OF MIND FOR ME
AND OTHER COMMITTEE MEMBERS. UH
OTHER MEMBERS. ALL RIGHT,
WONDERFUL. LET'S GO AHEAD AND
CALL UP OUR FIRST PANEL. UH,
WHICH INCLUDES THE THREE ENERGY
PLANNING ENTITIES WITH THE
GREATEST NUMBER OF
RESPONSIBILITIES IN THIS SECTOR
WILL BE HEARING FROM THE
CALIFORNIA ENERGY COMMISSION,
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION AND THE CALIFORNIA
INDEPENDENT SYSTEM. OPERATOR UM,
I ASK ALL OF OUR PANELISTS TO
PROVIDE THEIR OPENING STATEMENTS
, AND THEN WE WILL TURN TO
MEMBERS OF THE COMMITTEE FOR
QUESTIONS. WELCOME EVERYONE.
WE'RE GOING TO GO AHEAD AND
BEGIN WITH COMMISSIONER UH,
SHUNDA, UH, THE VICE CHAIR OF
THE CALIFORNIA YOU COMMISSION.
MR VICE CHAIR. YOU MAY BE
KIDDING. THANK YOU SO MUCH FOR
HAVING US TODAY. UH, AND
CONGRATULATIONS ON YOUR ROLE.
AND THANK YOU FOR HAVING US, UH,
FOR THE FIRST HEARING OF THE
COMMITTEE THIS YEAR, AND, UM
ALSO RESPECTS THE VICE CHAIR AND
THE MEMBERS OF THE COMMITTEE. SO
I'M FOR THE RECORD. I'M SEVA
GUNA, A VICE CHAIR OF THE ENERGY
COMMISSION. I WILL BE SETTING
THE STAGE. UH, OVERALL, UH, FOR
THE ENERGY PLANNING IN THE STATE
, BUT I AM JOINED BY MY
COLLEAGUES LU I Tð AND NEIL
MILLER, WHO WILL BE SPECIFICALLY
TALKING TO THE èC PU èC ROLE
AROUND THE INTEGRATED RESOURCE
PLANNING AND SOME OF THE RESULTS
THERE AND THE TRANSMISSION
PLANNING THAT KAISER DOES SO
WITH THAT I WOULD LIKE TO MOVE
TO THE NEXT SLIDE, PLEASE. JUST
AT A 30,000 FT LEVEL, JUST
STARTING OFF WITH A HIGH LEVEL.
UM PRESENTATION ON WHERE WE ARE
IN OUR CLEAN ENERGY JOURNEY. UM
IN 2013 WE HAD ABOUT 41% 0
CARBON IN 2020. WE WERE ALMOST
60% AND THAT CHANGES UP AND DOWN
BASED ON THE AMOUNT OF HYDRO WE
HAVE ON THE SYSTEM WE HAVE SEEN
AS HIGH AS 62% AND THEN IT KIND
OF GOES DOWN DEPENDING ON THE
HYDRO AND WE ARE ON OUR JOURNEY
TO 100% 0 CAR. RESOURCES
SUPPORTING THE ELECTRIC GRID BY
2045. NEXT SLIDE, PLEASE. JUST
TO START OFF WITH OUR ROLES AT A
VERY HIGH LEVEL. UM SO JUST
WANNA APPRECIATE. UH KAIZER AND
èC P èC JOINING US TODAY.
OTHER MEMBERS ON THE TEAM
INCLUDE Dð WR, UM AND CARB, WHO
ALSO HAVE IMPORTANT ROLES IN
SUPPORTING THE OVERALL PLANNING,
BUT JUST AT A VERY HIGH LEVEL.
UM, THE ENERGY COMMISSION IS THE
STATE PLANNING AND POLICY AGENCY
, WHICH PRIMARILY DOES A FEW
THINGS WE PROVIDE. WE PRODUCE
WHAT IS CALLED AN I AN
INTEGRATED ENERGY POLICY REPORT
EVERY YEAR EVERY TWO YEARS. WE
UPDATE OUR DEMAND FORECAST,
WHICH IS IN A HUGE PART OF THAT.
WE ALSO WORK WITH, UM P Ó U S¼
PUBLICLY ON UTILITIES ON THEIR
PORTFOLIO, RENEWABLE PORTFOLIO
STANDARDS AND THERE IPS AND ALSO
THEIR RELIABILITY. PLANNING CPUC
, UM, YOU KNOW, FOCUSES ON ÁP,
APPROXIMATELY 75% OF THE STATE,
WHICH IS THE INVESTOR OWNED.
THESE èC èC AND SOME OF THE
DIRECT CUSTOMERS AND REALLY
LOOKS AT YOU KNOW THE ENERGY
PLANNING AND PROCUREMENT AT AT
BOOTS ON THE GROUND LEVEL. UH,
FOR THAT 75% OF THE STATE. AND
KO, UH, YOU KNOW, WORKS. YOU
KNOW, WE ALL KIND OF HAVE
DIFFERENT FOOTPRINTS. UH,
OVERALL STATE èC P èC
FOOTPRINT AND THE KAISER
FOOTPRINT WHICH YOU KNOW, COVERS
ALL OF èC P èC, BUT ALSO HAS
SOME OF THE PO UNDER THEM, WHICH
IS ABOUT 80% OF THE OVERALL
CALIFORNIA STATE, AND THEN THEY
ARE PRIMARILY RESPONSIBLE FOR
THE TRANSMISSION PLANNING AND
INTERCONNECTION PROCESSES WHICH
NEIL IS GOING TO TOUCH ON TODAY.
AT A VERY HIGH LEVEL. IF YOU GO
TO THE NEXT SLIDE, UM JUST, YOU
KNOW, IN A SETTING THE TABLE ON
SOME BASE LEVEL. A WEIRD LOOKING
AT AN HUMONGOUS AMOUNT OF BUILD
OUT AND THIS IS FROM THE SB 100
RESULTS, THE 2021 REPORT. AND
THIS IS LOOKING AT A STATEWIDE
AND WHAT YOU'LL HEAR FROM LOAM
TODAY WILL BE SPECIFIC TO THE
èC P Ó èC JURISDICTIONAL
ENTITIES. SO FOR THE STATE AS A
WHOLE, WE NEEDED TO ADD
APPROXIMATELY 180 THREE 1000
MEGAWATTS IN TOTAL, UH, TO MEET
OUR ZERO CARBON GOALS AND WE ARE
APPROXIMATELY 35,000 ALREADY
THERE, BUT WE ARE TALKING ABOUT
ADDING ANOTHER 150,000 MEGAWATTS
OVER THE NEXT 22 YEARS. AS YOU
WILL SEE THERE ONE OF THE CORE
ISSUES THAT ONE OF THE CORE
RESULTS THAT CAME OUT OF THE
PLANNING IS THE IMPORTANCE OF
TECHNOLOGY DIVERSITY, BUT ALSO
THE GEOGRAPHIC DIVERSITY OF
WHERE THOSE RESOURCES ARE
LOCATED, BOTH TO ENSURE LOCAL
RELIABILITY BUT THE BEST
PERFORMANCE OF THOSE RESOURCES
AND IN IN THAT YOU WILL SEE THAT
THE LARGE AMOUNT OF FUTURE BUILD
STILL RELIES ON SOLAR AND WIND,
BUT THERE IS A LARGE AMOUNT OF
STORAGE BATTERY STORAGE. THAT
REALLY HAS TO BE ADDED TO
SUPPORT THE EVENING. IN LINE OF
ABOUT 50,000 MEGAWATTS. NEXT
SLIDE, PLEASE. WE HAVE A LITTLE
BIT OF A SO THE ANIMATION'S
GONE, I THINK HERE, UH, MAYBE
IT'S THE P Dð F. I'LL JUST KIND
OF WALK THROUGH, UH, LAYERS OF
THIS. I APOLOGIZE. I'M GONNA
START FROM THE TOP LAYER. SO AT
THE VERY HIGH LEVEL, YOU'RE
SEEING THE CLIMATE GOALS
PLANNING, SO THIS IS AN
INTEGRATED PLANNING THAT WE ALL
WORK TOGETHER ON SO IN THE 20 TO
25 YEAR TIME FRAME, WE DO THE S¼
P 100. AND IF THIS ANALYSIS MUCH
OF THE RESULTS ARE DIRECTIONAL
IN NATURE, YOU KNOW, IT GIVES
YOU THE MAGNITUDE OF MAGNITUDES
OF HOW MUCH WE NEED TO PLAN FOR.
WE DO A Dð AND A GOOD
RELIABILITY LEVEL PLANNING IN
THAT, AND IT'S WHAT IT'S BASED
ON WHAT WE CALL DEMAND SCENARIOS
. IT'S NOT DEMAND FORECAST. THE
DIFFERENCE BEING FORECAST IS
WHAT WE DEFINE AS SOMETHING
REASONABLE TO OCCUR IN THE NEAR
TERM DEMAND SCENARIOS ARE
DIFFERENT PATHWAYS THAT COULD
HAPPEN DEPENDING ON STATE
POLICIES. SO WE LOOK AT THE
DEMAND SCENARIOS AND PLAN FOR
THE OVERALL AMOUNT OF RESOURCE
BILL THAT WE HAVE TO DO AND
AGAIN. THE TOOLS THAT WE USE
HERE ARE NOT ROBUST, WITH THEIR
LARGELY GIVING YOU DIRECTION ON
WHERE WE ARE GOING AS A STATE.
AND WITH EACH OF THE PLANNING
REGIME, IT BECOMES MORE AND MORE
RIGOROUS. THE NEXT LEVEL IS THE
10 YEAR TIME FRAME WHERE WE
SUBSTITUTE THE DEMAND SCENARIOS
WITH MORE OF A DEMAND FORECAST,
WHICH WE THINK IS MOST
REASONABLE TO OCCUR IN THE NEXT
10 YEARS. GIVEN THAT WE HAVE
CLARITY ON THE POLICY POLICIES
THAT THE STATE IS PURSUING HERE,
WE REALLY WORK ON WHAT IS CALLED
THE LOSS OF LOAD EXPECTATION.
RELIABILITY ANALYSIS. IT IS A
DEEP DIVE. WE LOOK AT HOURLY
FORECAST, BUT WE ALSO LOOK AT
ANNUAL FORECAST TO GET MAIN
DETAILS ON WHAT AN HOURLY PEAK
COULD BE WHAT A MONTHLY PEAK
COULD BE. AND WHAT A SYSTEM HE
COULD BE ON AN ANNUAL BASIS, AND
THAT'S SOMETHING THAT WE DO IN
WHAT WE CALL THE 10 YEAR
PLANNING REGIME. AND THEN WE
KIND OF LIKE GO INTO THE NEXT
LEVEL, WHICH IS THE RESOURCE
ADEQUACY TIME FRAME. THIS IS
BASICALLY LOOKING AT THE NEXT
YEAR NEXT SUMMER. SO IF WE ARE
LOOKING TODAY AT FORECAST, JUST
GOT ADOPTED. èC èC IS FORECAST
THAT TRIGGERS A BUNCH OF
PROCESSES AND THE RESOURCE
ADEQUACY FOR NEXT SUMMER FOR THE
FOLLOWING SUMMER WILL BE SET.
UM, SOMETIME IN OCTOBER. SO WE
WE'RE LOOKING AT 2024. WE JUST
ADOPTED A FORECAST IN FEBRUARY
FOR 2026 RESOURCE 2025 RESOURCE
ADEQUACY WILL START PLANNING.
AND THEN THE NEXT LEVEL THAT YOU
LOOK AT IS WHAT IS CALLED THE
OPERATIONAL TIME FRAME. THIS IS
WHERE Kò Ó COMES IN. KAISER
REALLY IS LOOKING AT OPERATING
THE GRID IN REAL TIME AND WHEN
WE TALK ABOUT RELIABILITY ISSUES
COMING UP SUDDENLY, WHETHER IT'S
BECAUSE OF A SUPPLY SHORTFALL OR
IT'S BECAUSE OF A LINE GOING OUT
LIKE WHAT HAPPENED ON JULY 19TH
2021 WHEN THE BOOTLEG FIRE
HAPPENED, AND WE LOST 4000
MEGAWATTS OF TRANS TRANSMISSION
COMING INTO CALIFORNIA, THAT IS
SOMETHING THAT KAISER HAS TO
DEAL WITH, AND THAT'S WHERE WE
ARE THINKING ABOUT. HOW DO WE
PREPARE FOR THOSE EMERGENCIES?
STARTING 2020, SO I JUST WANTED
TO GIVE YOU A APPROACH ON HOW WE
PLAN AND JUST, YOU KNOW, TO
AMPLIFY THE ASSUMPTIONS BECOME
BETTER AND BETTER, BETTER AS WE
GET CLOSER, SO IT'S LIKE MORE
AND MORE RIGOROUS, SO THE
ANALYSIS IS MORE RIGOROUS. THE
INPUTS ARE BETTER AND WE HAVE A
BETTER IDEA GOING INTO THE
SUMMER RATHER THAN GOING INTO
FIVE YEARS FROM NOW. NEXT SLIDE,
PLEASE. APOLOGIZE AGAIN, IF THE
ANIMATION IS NOT HERE REALLY
APOLOGIZE. I'LL JUST KIND OF
HELP. I'LL JUST KIND OF FOCUS
THIS AT THE VERY HIGH LEVEL ON
THREE BUBBLES. FIRST, THE CARB
SCOPING PLAN. AND NEXT BELOW IT
IN GREEN IS THE CS INTEGRATED
ENERGY POLICY REPORT AND THE S¼
P 100. THAT'S THE FIRST CONTOUR
DID. SO WHAT THE CARB SCOPING
PLAN DOES IS, GIVES US AN
ECONOMY WIDE BLUEPRINT. THEY'RE
DOING THIS EVERY FIVE YEARS,
THEY SAY, STARTING FROM HERE IF
WE HAVE TO HIT CARBON NEUTRALITY
IN 2045, HERE'S YOUR BEST
PATHWAY FORWARD. AND I THINK
OVER THE LAST COUPLE OF SCOPING
PLANS, YOU KNOW, WE HAVE COME TO
A PRETTY GOOD CONSENSUS AS A
CALIFORNIA IN A COMMUNITY THAT
ELECTRIFICATION COMBINED WITH
CLEAN ELECTRIC GRID IS THE BEST
PATHWAY MOVING FORWARD MOST COST
EFFECTIVE IN REACHING THE CARBON
NEUTRALITY AND THE MOST
EXPEDIENT. SO WHEN WE THINK
ABOUT THAT CARB THEN WITHIN
THEIR CONTEXT DEVELOPS WHAT IS
CALLED, UM, GHG EMISSION LEVELS
FOR EACH OF THE SECTORS SO THE
ELECTRIC SECTOR GETS. THIS IS
THE LEVEL AT WHICH THE ELECTOR
SECTOR HAS TO BE IN ORDER TO
MEET THESE GOALS. SO THE NEXT
LEVEL THE DEMAND FORECAST THE
CARD SCOPING PLAN AND SP 100 ALL
OF THEM GOING TO THE IRP PROCESS
AT èC P èC. AND THEY'RE ALL
KIND OF PROVIDING DIFFERENT
CONSTRAINTS. SO THE DEMAND
FORECAST TELLS WHAT THE DEMAND
IS GOING TO LOOK LIKE. CARBS AT
THE GHG CONSTRAINTS ON THE
SYSTEM. S¼ P 100 GIVES THE
DIRECTIONAL APPROACH ON LAND USE
AND OTHER ISSUES. SO WE LOOK AT
ALL OF THEM AND èC PU THEN DOES
AN OPTIMIZATION OF THE PLAN,
WHICH LUAN WILL GO INTO TO
FIGURE OUT WHAT'S THE MOST COST
EFFECTIVE GIVEN THIS POLICY
CONSTRAINTS THAT WE HAVE AND
THAT RESULTS FROM PUC WILL GO
INTO THAT TRANSMISSION PLANNING
AT KO. SO THIS IS A VERY
INTERACTIVE, UH, WORK. WE HAVE
NUMBER OF FORUMS FOR CO
ORDINATION. I BOTH THAT ARE WELL
KNOWN AND WELL ESTABLISHED AND
THAT ARE REALLY IN THEIR INFANCY
. FOR EXAMPLE, ON THE DEMAND
FORECAST, WE CALL SOMETHING
CALLED THE JOINT AGENCY STEERING
COMMITTEE THAT HAS BEEN IN PLACE
FOR ALMOST 10 YEARS. NOW THAT
COORDINATES STAFF LEVEL
ENGAGEMENT AND PRINCIPAL LEVEL
ENGAGEMENT ON A WEEKLY BASIS, SO
THEY TALK ABOUT YOU KNOW HOW THE
TECHNICAL ANALYSIS AND THE
DEMAND FORECAST AFFECTS THE
POLICY IMPLICATIONS. NEXT SLIDE,
PLEASE. HERE'S WHAT YOU'RE
LOOKING AT, UM, IN TERMS OF THE
FORECAST, UM, THE NEXT YOU KNOW,
10 YEARS, SO GIVEN THAT OUR
GOALS ARE REALLY HINGED ON 2045.
THE èC E èC IS TRYING ITS BEST
TO, YOU KNOW, HAVE THE FORECAST
LONGER THAN 10 YEARS. SO IT'S
ALMOST TO 2040 NOW AND IN THE
NEXT COUPLE OF ITERATIONS WILL
HIT THE 2045 FORECAST. BUT I
ALSO WANT TO CAUTION THAT BEYOND
10 TO 12 YEARS, IT'S VERY
SPECULATIVE IN TERMS OF WHAT THE
ELECTRIFICATION LEVELS COULD BE.
SO IF YOU SEE THE HISTORICAL
LINE, YOU WILL SEE KIND OF A
FLATNESS TO IT. THAT DOESN'T
MEAN THAT THE ENERGY CONSUMPTION
IN CALIFORNIA HAS STAYED FLAT.
IT JUST MEANS THAT THE
CONSUMPTION HAS BEEN COMPENSATED
BY BEHIND THE METER SOLAR SO
WHAT YOU'RE SEEING THERE IS EVEN
THOUGH THE CONSUMPTION IS GOING
BEHIND THE METER SORT OF HAS
BEEN CUTTING DOWN THE PEAK. SO
YOU HAVE ABOUT THREE SPIKES IN
THERE? UH, ABOUT 2016. THERE WAS
A COASTAL HEAT WAVE THAT
HAPPENED THAT REALLY SPIKED
2016. IN 2020, AS WE ALL KNOW WE
HAD THE BLACKOUTS IN AUGUST.
14TH AND 15TH. THAT'S ANOTHER
BUMP THAT YOU SEE. AND IN 2022
ON SEPTEMBER 6TH. WE HAD ALMOST
53,000 MEGAWATTS ON THE SYSTEM
BECAUSE OF THE 10 DAY HEAT WAVE
ACROSS THE WEST, AND THAT REALLY
GIVES YOU ANOTHER SPIKE. SO THAT
THAT STRUGGLE THAT WE HAVE, AS
WE PLAN FOR THIS IS ONE PLANNING
WHAT IS IT REASONABLE LEVEL OF
PEAK TO ANTICIPATE AT THE SAME
TIME? HOW DO WE COVER THOSE
EXTREMES? AS THE VICE CHAIR
MENTIONED IN TERMS OF CREATING
THE NECESSARY TOOLS IN OUR IN
OUR POCKET TO MAKE MAKE SURE WE
GET THROUGH THOSE PEAK SYSTEM
PEAKS, SO LARGELY OUR GOAL IS IN
MEETING THE PEAK THAT WE'RE
PLANNING FOR. WE CAN MEET IT
WITH CLEAN ENERGY RESOURCES. AND
HOPEFULLY WE CAN MEET THE
ENTIRETY OF THAT WITH CLEAN
ENERGY RESOURCES, BUT IN THE
NEAR TERM, WE MIGHT NEED TO BE
SUPPORTED WITH SOME OF THE
FOSSIL AND OTHER GENERATION THAT
WE MIGHT NOT WANT TO IN THE LONG
TERM. SO WITH THAT, I'LL PASS IT
TO, UH, LUAN TO KIND OF GO
THROUGH THE IRP PROCESS. GREAT.
GOOD AFTERNOON. CHAIR
PETRIE-NORRIS AND VICE CHAIR
PATTERSON AND HONORABLE MEMBERS
OF THE COMMITTEE. MY NAME IS LU
TESFAY, AND I SERVE AS THE
DEPUTY EXECUTIVE DIRECTOR FOR
ENERGY AND CLIMATE POLICY AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. THANK YOU FOR THE
OPPORTUNITY TO APPEAR BEFORE YOU
TODAY. MY PRESENTATION THIS
AFTERNOON PROVIDES AN OVERVIEW
OF THE PUBLIC UTILITIES
COMMISSION'S ROLE IN ENERGY
RESOURCE PLANNING. SO ON THIS
SLIDE, WE'RE LOOKING AT
INTEGRATED RESOURCES PLANNING
AND LOOKING BACK AT SENATE BILL
THREE 50. IT DIRECTED THE PUBLIC
UTILITIES COMMISSION TO ENSURE
THAT CALIFORNIA'S ELECTRIC
SECTOR MEETS ITS GREENHOUSE GAS
REDUCTION GOALS WHILE
MAINTAINING RELIABILITY AT THE
LOWEST POSSIBLE COSTS. YOU KNOW
ALL THEMES THAT WERE ECHOED, UM
BY BY THE CHAIR AND VICE CHAIR
AS WE STARTED TODAY'S HEARING.
THE CPS INTEGRATED RESOURCE
PLANNING PROCESS TARGETS
ELECTRIC SECTOR DECARBONISATION
TO SUPPORT STATEWIDE GREENHOUSE
GAS REDUCTION EFFORTS WHILE
MAINTAINING SYSTEM RELIABILITY.
WE USE A STATE OF THE ART
ELECTRIC SYSTEM MODELING TOOL
AND A ROBUST STAKEHOLDER PROCESS
TO HELP GUIDE THE èC PU èC S¼
DECISION MAKING ON MEETING
GREENHOUSE GAS EMISSION
REDUCTIONS AND RELIABILITY GOALS
FOR THE ELECTRIC SECTOR FOR OUR
JURISDICTIONAL LOAD SERVING
ENTITIES. INTEGRATED RESOURCE
PLANNING IS A MULTI STEP
PROCESS. THE FIRST STEP OF THE
IRP CYCLE BUILDS ON THE FINDINGS
OF THE PREVIOUS CYCLE AND IS
DESIGNED TO PROVIDE ANALYSIS AND
GUIDANCE FOR THOSE WHO PROVIDE
POWER TO THE GRID. SO THESE ARE
OUR LOAD SERVING ENTITIES, WHICH
INCLUDE YOU KNOW, SOUTHERN
CALIFORNIA EDISON CLEAN POWER
ALLIANCE, THE èC èC A S¼ THE I
Ó U S¼ AND THE E S¼ P S¼. THEY
USE THIS INFORMATION TO PLAN FOR
MEETING THEIR GREENHOUSE GAS
REDUCTION, GOALS, RELIABILITY
AND COST OBJECTIVES. THE SECOND
STEP ON THIS SLIDE, CONSIDERS
THE LOAD SERVING ENTITIES
PREFERENCES AND ACTIONS THAT
EACH OF THEM PROPOSED TO THE PUC
FOR MEETING THESE GOALS AND
REQUIREMENTS, WHICH THE CPUC èC
LOOKS AT OVERALL. IN ORDER TO
DEVELOP A PREFERRED SYSTEM PLAN
PORTFOLIO FOR ALL OF THE LOAD
SERVING ENTITIES. SO ALL OF
THESE ENTITIES THAT I JUST
MENTIONED THEY COME FORWARD WITH
WHAT THEIR PLANS ARE, BUT THEN
WE LOOK AT THEM ALL TOGETHER IN
ORDER TO MAKE SURE THAT THE
ELECTRIC SECTOR UNDER OUR
JURISDICTION ARE MEETING THE
GREENHOUSE GAS REDUCTION
REQUIREMENTS AND RELIABILITY
OBJECTIVES. THE COMMISSION
DECISION ON THE LATEST P S¼ P
WAS ACTUALLY ADOPTED LAST WEEK
AND IS UNDER NUMBER THREE ON
THAT SLIDE. UH, THIS IRP PROCESS
LAYS THE ANALYTICAL FOUNDATION
FOR THE COMMISSION TO CONSIDER
PROCUREMENT ACTIONS TO ENSURE
THE STATE REMAINS ON THE PATH
TOWARDS A CARBON FREE
ELECTRICITY GRID BY 2045. THE
PREFERRED SYSTEM PLAN ALSO
GUIDES THE TRANSMISSION PLANNING
WORK CONDUCTED BY THE KO TO
ENSURE THERE IS SUFFICIENT
TRANSMISSION FOR THE NEW CLEAN
RESOURCES BEING ADDED TO THE
SYSTEM IN CALIFORNIA, AND THAT
THE TRANSMISSION SYSTEM IS
KEEPING PACE WITH THAT RESOURCE
DEVELOPMENT. NEXT SLIDE, PLEASE.
SO, AS I SAID LAST THURSDAY,
FEBRUARY 15TH, THE èC PU èC
ADOPTED THE MOST RECENT
PORTFOLIO OF EXPECTED RESOURCES,
WHICH ARE SHOWN ON THIS SLIDE
THAT WILL REDUCE THE STATEWIDE
YEARLY GREENHOUSE GAS EMISSIONS
FROM THE ELECTRIC SECTOR TO 25
MILLION METRIC TONS BY 2035. THE
PORTFOLIO REFLECTS THE RESOURCE
PREFERENCES OF THE èC P èC
JURISDICTIONAL LOAD SERVING
ENTITIES. AND INCLUDES AN
EXPECTATION THAT OVER 55
GIGAWATTS OF NEW CLEAN ENERGY
RESOURCES WILL BE BUILT TO SERVE
CALIFORNIA LOAD BY 2035,
INCLUDING 4.5 GIGAWATTS OF
OFFSHORE WIND. THIS IS A 25 Tð
PORTFOLIO, WHICH CORRESPONDS TO
THE LOW END OF THE 2030 TARGET
RANGE SET BY THE CALIFORNIA AIR
RESOURCES BOARD IN ITS SCOPING
PLAN. WHICH IT IT, UH, WHICH IT
ADOPTED AT THE END OF 2022.
THESE RESOURCE DEVELOPMENT PLANS
ARE GUIDED ARE GUIDING
SIGNIFICANT ADDITIONS OF CLEAN
ENERGY RESOURCES TO THE SYSTEM.
SINCE JANUARY OF 2020 17
GIGAWATTS OF NEW GENERATION AND
STORAGE RESOURCES HAVE COME
ONLINE ON THE KISO SYSTEM. THIS
INCLUDES A RECORD BREAKING 5.7
GIGAWATTS OF NEW CLEAN ENERGY
CAPACITY IN 2023. MORE THAN ANY
YEAR IN CALIFORNIA'S HISTORY.
THESE ADOPTED REQUIREMENTS FOR
NEW RESOURCE PROCUREMENT IN 2024
ARE EVEN HIGHER, WHICH WILL LEAD
TO ANOTHER RECORD BREAKING YEAR.
NEXT SLIDE, PLEASE. SO THE
PREFERRED SYSTEM PLAN PORTFOLIO
ADOPTED BY THE COMMISSION WILL
RESULT IN SIGNIFICANT GREENHOUSE
GAS REDUCTIONS, AND THAT'S WHAT
YOU'RE SEEING ON THIS SLIDE. IT
REDUCES EMISSIONS BY 25 M Tð IN
2035, COMPARED TO THE 2020
ELECTRIC SECTOR EMISSIONS IN
THIS KO AREA, TRANSLATING TO A
58% REDUCTION. IT REDUCES
EMISSIONS BY 85% AND ACHIEVES A
LEVEL OF 113% CLEAN ENERGY BASED
ON THE SENATE BILL 101 100% GOAL
BY FOR 2045. THE PSP PORTFOLIO
ACHIEVES CLEAN ENERGY PRODUCTION
WELL BEYOND THE SENATE BILL 100
INTERIM TARGETS USED FOR P S¼ P
MODELING. EVERYTHING IN THE IRP
IS KEY TO ACHIEVING THE SENATE
BILL 100 PLAN. THE CPS ENERGY
RESOURCE PORTFOLIO REPRESENTS A
70% REDUCTION IN NATURAL GAS
PLANT UTILIZATION. WITHIN THE KO
AREA BY 2035 AND FURTHER
REDUCTIONS OF APPROXIMATELY 90%
OVER THE FULL 15 YEAR PLANNING
HORIZON. SO WITH THAT ALTERNATE
OVER TO MY COLLEAGUE NEIL
MILLER. THANK YOU. YES I'M MY
NAME IS NEIL MILLER. I'M VICE
PRESIDENT OF INFRASTRUCTURE AND
OPERATIONS. PLANNING AT THE
CALIFORNIA IS S¼ Ó REALLY
PLEASED TO BE ABLE TO HAVE THE
OPPORTUNITY TO SPEAK TO YOU
TODAY ABOUT UH, WHAT WE'VE BEEN
UP TO SO A AS YOU'VE ALREADY
HEARD, THE ISO'S TRANSMISSION
PLANNING PROCESS IS ALREADY
HEAVILY CO ORDINATED WITH THE
ACTIVITIES THAT THE ENERGY
COMMISSION AND THE PUBLIC
UTILITIES COMMISSION. THAT CO
ORDINATION TOOK AN. TIGHTENING A
FEW KEY AREAS. FIRST ELECTED
TIGHTENING THE LINKAGES BETWEEN
THE TRANSMISSION PLANNING,
RESOURCE PLANNING GENERATION
INTERCONNECTION AND, UH, ACTUAL
PER. JUST WAIT.
AND ALSO REAFFIRMING ALL OF OUR
INTEREST IN MOVING FORWARD ON A
SINGLE FORECAST SET INSTEAD OF
EVERYONE DEVELOPING THEIR OWN
FORECASTS AND ISOLATION. AND
NEXT SLIDE, PLEASE. OR I CAN
MOVE TO THE NEXT SLIDE, PLEASE.
SO THE ISO'S TRANSMISSION
PLANNING EFFORT REALLY FOCUSES
ON TWO PRIMARY VEHICLES TO MOVE
FORWARD WITH OUR ACTIVITIES. THE
FIRST IS OUR ANNUAL 10 YEAR
TRANSMISSION PLAN, ALTHOUGH WE
ARE LOOKING OUT A BIT MORE THAN
10 YEARS NOW, UH, BUT THIS
FORMAL APPROVAL DOCUMENT IS THE
BASIS FOR ALL OF THE EXPANSION
DRIVEN TRANSMISSION PLANNING IN
OUR FOOTPRINT, OR, UH, OVER
ABOUT A 10 YEAR PERIOD. IT WAS
AVERAGING ABOUT $650 MILLION A
YEAR AND IDENTIFIED NEW
TRANSMISSION UPGRADES. THAT
STARTED TO RAMP UP WITH AN OVER
$3 BILLION PLAN IN THE 2122 TIME
FRAME AND 7.3 BILLION IN
TRANSMISSION IDENTIFIED NEEDED
IN OUR 2223 PLAN THAT WAS
COMPLETED IN MARCH OF LAST YEAR.
UH, THAT THAT REQUIREMENT WAS
RESPONDING TO THE ACCELERATING
LOAD GROWTH AND ESCALATING
RENEWABLE GENERATION DEMANDS. IN
OUR TRANSMISSION PLANNING
PROCESS. WE DO FOCUS ON FINDING
THE MOST EFFICIENT AND COST
EFFECTIVE LONG TERM SOLUTIONS TO
MEETING THE IDENTIFIED NEEDS.
BASED ON THE FORECAST INPUTS.
ALSO WE EXPLORE OPPORTUNITIES
SUCH AS GRID ENHANCING
TECHNOLOGIES AND NON WIRE
SOLUTIONS TO LOOK FOR THE
OVERALL LOWEST COST SOLUTION TO
MOVE FORWARD THAT ALSO MEETS
THOSE RELIABILITY NEEDS. THAT
TRANSMISSION PLAN ALSO KICKS OFF
THE COMPETITIVE SOLICITATION
PROCESS FOR A MAJOR TRANSMISSION
THAT ARE ELIGIBLE FOR A
COMPETITIVE PROCUREMENT INSTEAD
OF BEING ASSIGNED TO THE
INCUMBENT UTILITY. THE UH, 20
YEAR OUTLOOK DOCUMENT. THE
SECOND DOCUMENT, AS I WANTED TO
REFER TO IS A LONGER TERM
OUTLOOK THAT ASSESSES THE LONGER
TERM NEEDS AND HELP SETS A
BLUEPRINT IN WHICH THE NEARER
TERM PLANNING ACTIVITIES CAN BE
CONDUCTED OUR FIRST OUR 1ST 20
YEAR OUTLOOK WAS PREPARED IN
2022. WE ARE UPDATING THAT AND
WE'LL BE RELEASING AN UPDATED
VERSION LATER THIS SPRING THAT
WILL REACH OUT TO 2045. IT
ESTABLISHES THIS LONGER TERM
DIRECTION AND ALSO MORE
IMPORTANTLY, PROVIDES THE LONG
TERM CONTEXT FOR NEARER TERM
PLANNING DECISIONS. IF I COULD
MOVE TO THE NEXT PAGE, PLEASE.
OH, THANK YOU. SORRY ABOUT THAT.
AH, LET'S SEE ON OUR IN ADDITION
TO THE ANNUAL TRANSMISSION
PLANNING PROCESSES, WE ALSO MOVE
FORWARD WITH A FEW OTHER MAJOR
INITIATIVES AS AN EXTENSION TO
LAST YEAR'S PLAN AND CONDUCTED
AFTER WE CONTINUED WITH THE WORK
TO MOVE FORWARD WITH A JOINT
PROJECT WITH IDAHO POWER ON
PARTICIPATING IN WHAT'S CALLED
THE SWP NORTH TRANSMISSION LINE,
WHICH IS A PROJECT FROM NORTHERN
NEVADA INTO SOUTHERN IDAHO THAT
WOULD PROVIDE ACCESS TO OVER
1000 MEGAWATTS OF RENEWABLE
GENERATION. SOUTH THROUGH TO
MEET UP WITH THE CALIFORNIA
SYSTEM IN THE EL DORADO, HARRY
ALLEN AREA. AS WELL. WE'VE
DEVELOPED A SUBSCRIBER
TRANSMISSION OWNER MODEL, WHICH
WOULD ALLOW TRANSMISSION
DEVELOPERS DEVELOPING MERCHANT
PROJECTS TO BRING POWER TO THE
CALIFORNIA BORDER TO BE ABLE TO
JOIN OUR GRID, BUT AT THE SAME
TIME HAVE THE COST OF THAT
TRANSMISSION RECOVERED THROUGH
THE POWER PURCHASE AGREEMENTS
FOR THE GENERATION THAT IS
ACTUALLY SUBSCRIBING TO THE
TRANSMISSION LINE AND SEEKING
ACCESS TO THE CALIFORNIA MARKET.
AND ANOTHER EFFORT WE'VE BEEN
WORKING ON IS TO FINALIZE THIS
YEAR'S TRANSMISSION PLAN, WHICH
IS IDENTIFYING 19 TO 20
TRANSMISSION PROJECTS. WE'RE
STILL FINALIZING THIS RANGING
FROM 1.2 TO $2 BILLION, AND IN
ADDITION, A MAJOR POLICY FOCUS
IN THIS YEAR'S TRANSMISSION PLAN
IS TO START THE FIRST WAVE OF
STEPS LOOKING TO ACCESS NORTH
COAST OFFSHORE WIND. AND NEXT
SLIDE, PLEASE. IN TERMS OF
PROGRESS TO DATE, THERE IS
TRANSMISSION CAPACITY AVAILABLE
ON THE GRID AND MORE IS BEING
DEVELOPED EACH YEAR. JUST A FEW
DATA POINTS ON THAT OVER THE
LAST FOUR YEARS OVER 17,000
MEGAWATTS OF NEW CAPACITY HAS
BEEN ADDED TO THE GRID. YOU'VE
ALREADY HEARD THE MOST RECENT
NUMBERS FOR SUCCESS IN 2020
THREE. UH, WE'RE ALSO TRACKING
OVER 200 TRANSMISSION PROJECTS
THAT HAVE BEEN INITIATED AND
PAST TRANSMISSION PLANS OR
THROUGH GENERATOR
INTERCONNECTION AGREEMENTS AND
LOOKING AT THE CAPACITY. THOSE
PROJECTS WILL MAKE AVAILABLE TO
THE GRID AS THEY COME ONLINE.
BASED ON THOSE PROJECTS WE'VE
ALREADY AWARDED OVER 45,000
MEGAWATTS OF DELIVERABILITY
STATUS TO GENERATORS THAT ARE IN
OUR INTERCONNECTION QUEUE THAT
THEN NEED TO ACHIEVE A POWER
PURCHASE AGREEMENT WITH AN OFFER
AND MOVE FORWARD ON THEIR
INTERCONNECTION. AND THERE WILL
BE MORE ALLOCATIONS MADE LATER
THIS SUMMER AS WE MOVE ON THE
NEXT TRANCHE OF INTERCONNECTION
APPLICATIONS AND THE
TRANSMISSION PLAN THAT WAS
APPROVED IN MARCH. UH, NEXT
SLIDE, PLEASE. IN ADDITION TO
THE TRANSMISSION PLANNING
EFFORTS, WE'VE ALSO BEEN
UNDERTAKING THIS YEAR AND
STARTED LAST YEAR MAJOR REFORM
TO OUR GENERATOR INTERCONNECTION
PROCESS. THE TRANSFORMATIONAL
CHANGES WE'RE LOOKING FOR HOW WE
GO ABOUT STUDYING AND MOVING
GENERATORS THROUGH OUR
INTERCONNECTION PROCESS WAS
LARGELY DRIVEN BY THE OVERSUPPLY
OF NEW APPLICATIONS WE RECEIVED
OVER THE LAST NUMBER OF YEARS OR
THE NUMBER OF APPLICATIONS
SPIKED VERY DRAMATICALLY AND
RISK. UH, NOT BEING ABLE TO
PROVIDE MEANINGFUL RESULTS WITH
THAT VOLUME OF NEW APPLICATIONS.
THE PROCESS IS TIGHTLY COUPLED
TO THE TRANSMISSION PLANNING
PROCESS, FOCUSING OUR ENERGIES
ON THE AREAS WHERE TRANSMISSION
IS BEING DEVELOPED ON A ZONAL
BASIS TO ENCOURAGE GENERATORS
AND GENERATION DEVELOPERS TO
FOCUS IN THOSE AREAS. WE'RE ALSO
LOOKING AT DEVELOPING SCORING
CRITERIA AND A BACKSTOP AUCTION
MECHANISM SO THAT WE'RE STUDYING
REASONABLE VOLUMES. WE CAN
PROVIDE MEANINGFUL RESULTS AND
MOVE FORWARD ON THE PROJECTS
THAT HAVE THE HIGHEST LIKELIHOOD
OF SUCCEEDING AND MOVING
FORWARD. THOSE EFFORTS ARE ALSO
ON, UH, BEING CONDITIONED ON THE
BACKGROUND OF THE, UH, FC ORDER
2020 THREE THAT WAS RELEASED
LAST YEAR THAT R REALLY
REESTABLISHED A NEW BASELINE FOR
RESOURCE INTERCONNECTION ACROSS
ALL NATIONALLY REGULATED
ENTITIES. BUT ARE UPGRADES ARE
GOING BEYOND THAT TO ADDRESS OUR
PARTICULAR NEEDS. SO WITH THAT,
I WILL NOW PASS IT BACK OVER TO
VICE GUNA. THANK YOU, NEIL. JUST
TO CLOSE OFF. I JUST WANT TO
TOUCH. UH, RELIABILITY, WHICH IS
IMPORTANT TO YOU AND THE
MEMBERS. UH, SO JUST NEXT SLIDE,
PLEASE. AGAINST SAUDI FOR LACK
OF ANIMATION ON THIS ONE, BUT
JUST POINTING TO HOW HOW TO
INTERPRET THIS PICTURE. THE
BOTTOM DARK BLUE, UM, REPRESENTS
THE TOTAL AMOUNT OF CAPACITY WE
WOULD NEED IN ANY GIVEN YEAR TO
KEEP THE LIGHTS ON. SO GOING
INTO 2021 OF THE THINGS WE
REALIZED WAS WE HAVE NOT BEEN
PROCURING ENOUGH TO MEET THE
STRICT RELIABILITY STANDARDS.
BUT TODAY WE ARE HAPPY TO REPORT
THAT THE PROCUREMENT THAT IRP
HAS DONE SIGNIFICANTLY PASSES
THE RELIABILITY NEEDS THAT
PLANNING STANDARDS THAT WE HAVE
TO MEET TODAY. SO WHAT YOU SEE
AT THE BOTTOM IS THE AUTHORIZED
PROCUREMENT THE DARK BLUE BUT
TOP OF THE DARK BLUE, UH, IS
JUST SHADED AREA, WHICH IS
POTENTIALLY SOME OF THOSE
PROJECTS, EVEN THOUGH THEY WERE
PROCURED AND AUTHORIZED, HAVE
DELAYED ACTUALLY DEVELOPED. SO I
JUST WANNA MAKE SURE THAT YOU'RE
SEEING THAT ON THE TOP OF THAT
IS THE GREEN WHERE WE'RE TALKING
ABOUT CIRCUMSTANCES OF NEEDING
ADDITIONAL RESOURCES BECAUSE WE
ARE SO FAR PAST THE PLANNING
STANDARD. TODAY. FOR EXAMPLE,
SEPTEMBER 6 2022 SEPTEMBER 6TH
2022, THE PEAK WAS ALMOST 53,000
MEGAWATTS, WHICH WAS 8000
MEGAWATT DEPARTURE FROM OUR
STANDARD PLANNING. AND A YEAR
AFTER ON SEPTEMBER 6TH 2020
THREE, WE WOULD HAVE 33,000. UM
SO IT'S A MASSIVE SWING, UH, IN
TERMS OF THE MEGAWATTS THAT WE
NEED, SO JUST KIND OF POINTING
THAT, UH, WHEN WE PLAN WE ARE
PLANNING FOR WHAT IS THE
REASONABLE LEVELS OF PROCUREMENT
OPTIMIZING BETWEEN THE
GREENHOUSE GAS EMISSIONS BUT
ALSO OPTIMIZING FOR
AFFORDABILITY. SO YOU'RE LOOKING
AT THAT RESOURCE GAP IN GREEN
THAT IS EXTRAORDINARY EXTREME
HEAT BEYOND THE PLANNING
STANDARDS AND FINALLY
CATASTROPHIC FIRE. WHEN WE LOOK
AT CATASTROPHIC FIRE, UH, GOING
BACK TO, UH, JULY 19TH 2021 THE
BOOTLEG FIRE. WE LOST 4000
MEGAWATTS OF CAPACITY IN AN
INSTANT. AND WE, AS YOU ALL
KNOW, CALIFORNIA IS NEAR 30%
IMPORT STATE ON ENERGY BASIS. SO
WHEN WE TALK ABOUT LOSING 4000
MEGAWATTS COMING INTO
CALIFORNIA, WE SUDDENLY HAVE TO
MAKE THAT UP. SO THAT SHADED BOX
, THEN THE DOTTED LINE AROUND
THOSE THOSE THREE TOP BUCKETS IS
WHAT WE WHAT WE NEED
CONTINGENCIES FOR WE ARE
PLANNING. WE'RE PROCURING TO THE
EXTENT THAT THEIR DEVELOPMENTAL
DELAYS, EXTREME WEATHER AND FIRE
. HOW DO WE HAVE CONTINGENCIES
IN OUR POCKET? TO MAKE SURE WE
TACKLE SOME OF THAT? AND JUST
WANNA NOTE THAT, UM, OUR
GRATITUDE TO THE LEGISLATURE FOR
GIVING A NUMBER OF TOOLS TO THE
STATE AGENCIES TO BE ABLE TO GET
THROUGH THOSE CONTINGENCIES. WE
DON'T HAVE RESOURCES TO GET
THROUGH ALL OF THE WORST CASE.
YEARS BUT WE CAN SIGNIFICANTLY
PLAN FOR THEM TODAY. NEXT SLIDE,
PLEASE. JUST TO GIVE YOU A QUICK
FLAVOR, UM, THAT ARE BROADLY
THREE BUCKETS OF A CONTINGENCY
RESOURCES WE HAVE TODAY TO GET
THROUGH AN EXTREME EVENT. TOP OF
THAT IS THE STRATEGIC RESERVE.
THAT'S THAT'S BASICALLY THE TWO
OR FIVE AUTHORIZATION BY THE
LEGISLATURE TO GIVE US THOSE
ADDITIONAL TOOLS TO PROVIDE
INCENTIVES FOR DEMAND DROPPING,
BUT ALSO TO, UH, THE MONEY THAT
WAS USED TO PROCURE SOME OF THE
ONCE THROUGH COOLING UNITS THAT
WERE SUPPOSED TO RETIRE LAST
YEAR AND HAVE THEM IN THE
STRATEGIC RESERVE FOR THE NEXT
THREE YEARS. SECOND WE HAVE
RATEPAYER PROGRAMS THAT ARE PAID
THROUGH THE CPUC RATEPAYERS LIKE
THE ER P PROGRAM, WHICH IS
REALLY AGAIN PAYING INCENTIVES
TO DROP LOAD. AND FINALLY, THESE
ARE NON PROGRAMMATIC, UM,
VOLUNTARY LOAD REDUCTION
OPPORTUNITIES AND INCREASED
GENERATION. SO THIS IS WHERE WE
WORK WITH STATE WATER PROJECT TO
SEE IF THEY COULD REDUCE THE
DEMAND ON THE PUMPING LOAD,
WHICH COULD BE SIGNIFICANT FOR
THE STATE FOR A FEW HOURS. IT
COULD BE BALANCING AREAS MEANING
PM AND KAISER TRANSFERRING
ENERGY BETWEEN EACH OTHER TO
SUPPORT EACH OTHER. DURING THOSE
EXTREME EVENTS AND SUCH NEXT
SLIDE, PLEASE. SO, UM. AFTER
2020 YOU KNOW, WE HAVE ENHANCED
OUR CO ORDINATION AND
COMMUNICATION EVEN FURTHER.
THESE ARE THREE IMPORTANT
COORDINATIONS, UM, VENUES THAT
WE HAVE TODAY, INCREMENTAL TO A
LOT OF OTHER CO ORDINATION THAT
WE DO TODAY, WHICH IS THE 2022
MU THAT NEIL MENTIONED ABOUT
ALREADY WHICH REALLY FORMALIZES
THE COORDINATIONS BETWEEN
CHRYSLER èC, P, èC AND èC
RESOURCE PLANNING ACTIVITIES.
UH, WE HAVE WHAT IS CALLED A TED
TASK FORCE OR TRACKING ENERGY
DEVELOPMENT TASK FORCE, AND
THAT'S REALLY A COORDINATING
EFFORT TO ENSURE THE LIST OF
PROJECTS WE HAVE IN THE PIPELINE
FOR THE NEXT SUMMER ARE WORKED
AND TRACKED CAREFULLY TO MAKE
SURE ANY ANY ISSUES WITH THOSE
PROJECTS CAN BE DEALT WITH
WITHIN THE STATE AGENCIES. AND
FINALLY, THIS IS SOMETHING THAT
NEIL ALSO TOUCHED ON WHICH IS
THE TRANSMISSION DEVELOPMENT
FORUM THAT WE HAVE TO TRACK THE
TRANSMISSION PROJECTS. APART
FROM THAT, APART FROM THIS,
THERE ARE MANY OTHER, UM,
CURRENTLY A FORMAL COORDINATIONS
PATHWAYS, INCLUDING THE
COMMISSIONERS AT THE HIGHEST
LEVEL. NEXT SLIDE. SO IN SUMMARY
JUST WANTED TO LEAVE THIS WITH
ALL OF YOU, WHICH IS, YOU KNOW,
STARTING 2020. WE HAVE BEEN
WORKING REALLY HARD TO IMPROVE
OUR GREAT PLANNING PROCESSES,
PRIMARILY MAKING SURE THAT THE
CLIMATE CHANGE IMPACTS ARE
REALLY WELL UNDERSTOOD AND BAKED
INTO OUR FORECASTING AND OTHER
ISSUES LIKE FOR EXAMPLE, ON THE
RELIABILITY SIDE, WE NEED TO
UNDERSTAND WHAT THE Dð RATE OF A
THERMAL POWER PLANT COULD LOOK
LIKE ON A SUMMER DAY WHEN IT'S
HOT AND REALLY UNDERSTANDING
THOSE KIND OF STUFF. WE HAVE TO
REALLY WORK ON BOTH SCALING THE
SUPPLY SIDE SOLUTIONS BUT ALSO
THE DEMAND SIDE SOLUTIONS, AND
THE JOINT AGENCIES HAVE JOINTLY
ARTICULATED THAT IN OUR SET UP
PLAN. I'M JUST KIND OF THINKING
THROUGH WHAT WE COULD DO FOR
BOTH DEMAND SIDE AND SUPPLY SIDE
AND FINALLY IN THE NEAR TERM,
ESPECIALLY AS WE LOOK THROUGH
2030 MAYBE BEYOND WE NEED TO
THINK ABOUT HOW ARE WE GOING TO
GET THROUGH EXTREME EVENTS AS WE
PLAN FOR A CLEAN GRID BECAUSE,
AS WE ADDED SIGNIFICANT AMOUNT
OF RESOURCES, AS BOTH LOAM AND
NEIL MENTIONED OVER THE LAST
FOUR YEARS, BUT ALSO THE DECADE
WE'VE ALSO IN A RETIRED, ALMOST
10 GIGS OF RESOURCES OVER THE
LAST 10 YEARS, AND THAT'S
SOMETHING WE ARE BOTH BUILDING
TO FILL THE RETIREMENT BUT ALSO
TO SURE WE CAN MEET THE NEW
DEMAND BEING ADDED. SO WITH THAT
, THANK YOU AGAIN CHAIR VICE
CHAIR AND THE HONORABLE MEMBERS
FOR THE OPPORTUNITY TO BE HERE
AND WE ARE READY TO TAKE ANY
QUESTIONS YOU MAY HAVE. THANK
ALL OF YOU FOR JOINING US.
APPRECIATE IT, UM, GO AHEAD AND
OPEN IT UP FOR QUESTIONS FROM
COMMITTEE MEMBERS ASSEMBLY
MEMBER WOULD CHAIR AND THANK YOU
TO THE, UH, PRESENTERS HERE THIS
AFTERNOON. UM I. FOR ABOUT A
YEAR AND A HALF. BEEN ASKING
SOME QUESTIONS ABOUT WE'RE
IMPROVING EFFICIENCY. I
UNDERSTAND YOU GUYS. YOU THERE'S
AN M Ó U. YOU'RE ALL WORKING
TOGETHER. UM FROM WHAT I HEAR
TRANSMISSION FROM, UH, FROM THE
STAKEHOLDER SIDE COULD BE 7 TO
12 YEARS. TO COMPLETE. UH MAYBE
THAT'S WRONG. MAYBE IT'S 7 TO
10, BUT IT'S STILL THE SEVEN
NUMBER KEEPS COMING UP AND
PRETTY REGULAR BASIS. SO UM AND
SO I'VE BEEN ASKING FOR PRETTY
CONTINUOUSLY EVERY CHANCE I GET
IN A FORM LIKE THIS IS WHAT A AS
AS I'M PRAYING THIS FOR A COUPLE
OF QUESTIONS I HAVE HERE. SO UM,
WHAT ARE WE DOING TO IMPROVE THE
EFFICIENCY? SEVEN YEARS? SEEMS
LIKE AN AWFULLY LONG TIME. UH,
12 IS INTERMINABLE. SO UM, SO I
KNOW CURRENTLY èC PUC èC HAS A
GENERAL ORDER 131 Dð THAT'S
STILL OPEN. UM AND THAT'S
SUPPOSED TO BE ENSURING THAT
TRANSMISSION IS, UH, PERMITTING
IS MORE EFFICIENT. SO WHAT'S THE
STATUS OF THAT PROCEEDING AND
WHEN CAN WE EXPECT THAT TO
CLOSE? THANK YOU. ASSEMBLY
MEMBER WOULD SO, UM, WE OPENED A
RULEMAKING FOR GENERAL ORDER 131
Dð PURSUANT TO SENATE BILL 529.
THE FIRST DECISION IN THAT
PROCEEDING ACTUALLY WAS VOTED
OUT IN DECEMBER OF THE VERY END
OF LAST YEAR. OUR LAST VOTING
MEETING. UM AND SO THAT'S WHERE
WE WERE ABLE TO ACCOMPLISH THE
MAIN REQUIREMENTS OF SENATE BILL
529 AND BE ABLE TO START UM,
SHIFTING SOME OF OUR
TRANSMISSION PERMITTING FROM, UM
, A LONGER PROCESS, WHICH IS
CALLED A CERTIFICATE OF PUBLIC.
CONVENIENCE AND NECESSITY TO A
PERMIT TO CONSTRUCT PROCESS. SO
THAT HAS SOME OF THAT INITIAL
WORK HAS ALREADY BEEN IMPROVED.
UH BUT WE ALSO ARE ACTUALLY
WORKING ON ANOTHER STAFF
PROPOSAL. THAT'LL BE COMING OUT
IN QUÊ, ONE OF THIS YEAR TO
UNDERGO EVEN LARGER UPDATES TO
THE, UM GENERAL ORDER. 131 Dð.
WE HAD SOME PARTIES ACTUALLY
COME FORWARD WITH SOME IDEAS,
AND SO WE'RE GONNA BE LEVERAGING
SOME OF THOSE IDEAS, UM, AND
PUTTING OUT A RULING WITH A
STAFF PROPOSAL TO INCORPORATE
ALL OF THE DIFFERENT IDEAS THAT
PARTIES HAVE RECENTLY COME
FORWARD WITH. THANK YOU. I'VE
GOT A COUPLE OF FOLLOW UPS UP.
I'LL TRY TO BE BRIEF HERE. SO,
UM SO WILL THE èC PU èC
IMPLEMENT A 270 DAY TIMELINE FOR
THE COMMISSION TO REVIEW SOME OF
THE ENVIRONMENTAL IMPACT
DISPUTES THROUGH THESE
PROCEEDINGS AT THIS TIME, I
DON'T KNOW IF WE'LL ADOPT A 270
DAY TIMELINE. I KNOW THAT THAT
WAS SOMETHING THAT WAS ADOPTED
AS PART OF THE OPT IN PERMITTING
PROCESS THAT SPECIFIC TIMELINE,
BUT WE WILL BE PUTTING OUT A
STAFF PROPOSAL WITH A NUMBER OF
DIFFERENT OPPORTUNITIES THERE.
UM AND 270 DAYS IS A NUMBER THAT
HAS COME UP SO FAR AMONG THE
STAKEHOLDERS. IT'S COME UP A LOT
WITH US, TOO. SO, UM SO THIS IS
A LITTLE CONVOLUTED. SO BEAR
WITH ME AND THIS GOES BACK TO I
HEARD I. I JUST WATCHED EARLIER
TODAY. UM COMMENTS YOU MADE MR
MILLER AND JUNE OF THIS LAST
YEAR. SO. THE CPUC ADMINISTERS
THE RENEWABLE PORTFOLIO STANDARD
. UH, THAT OUTLINES THE MEN
ENERGY MIX AND I'M GONNA READ
THIS SO THAT I DON'T SCREW IT
UP. OK UM I'M A DENTIST, NOT AN
ELECTRICIAN HERE. SO UM, UM, BUT
WE'RE TRYING TO MEET THE
OBVIOUSLY MEET THE STATES CLEAN
ENERGY GOALS. SO IN èC P S¼ èC
PU èC WORKS WITH CAL ISO. TO
COME UP WITH, UM UH, THE AMOUNT
TO ESTIMATE THE AMOUNT OF THE
TRANSMISSION THROUGH THE TPP.
AND THEN MY UNDERSTANDING IS
THAT CAL ISO THEN HAS TO DEFEND
THAT IN FRONT OF THE PUC. NOW AM
I DID? I MISSTATE THAT MR
MILLER? OH, THE. JUST YOU JUST
THERE HAS BEEN CHANGE. THERE ARE
CHANGES NOW MOVING TOWARDS
WHAT'S CALLED A REBUTTABLE
PRESUMPTION THAT CAME THROUGH
LEGISLATION LAST YEAR. THAT
WOULD SHIFT THAT FOR CERTAIN
TYPES OF PROJECTS AND SUBJECT TO
CERTAIN CONDITIONS. HISTORICALLY
THE PERMITTING REQUIREMENTS WERE
SUCH THAT, UH, MUCH OF THE
LEGISLATION AROUND THE
PERMITTING PROCESS CALLED FOR
THE DEFENSE OF THE NEED FOR A
TRANSMISSION PROJECT IN THE èC
P èC PERMITTING PROCESS. SO
THAT WAS STILL IN PLACE WHEN AND
WHEN I STARTED MY ROLE THE ISO
HERE SO I WOULD FREQUENTLY BE
TESTIFYING ABOUT THE NEED FOR
THE TRANSMISSION PROJECTS. UH AT
IN THE èC P èC PERMITTING
PROCESS. RECOGNIZING THAT PART
OF THE RATIONALE WAS THE
RESOURCE PLANNING CONDUCTED BY
THE èC PU èC. SO WITH A
REBUTTABLE PRESUMPTION LANGUAGE,
SHIFTING THAT, TO THE EXTENT
THAT A TRANSMISSION PROJECT IS
BEING IDENTIFIED BY THE ISO IN
RESPONSE TO MEETING THE NEEDS
ESTABLISHED THROUGH THE èC,
PUC'S RESOURCE PLANNING THAT
THAT OBLIGATION IS SHIFTING. NOW
WE HAVEN'T HAD A MAJOR
APPLICATION COME THROUGH SINCE
THAT LEGISLATION TOOK EFFECT,
BUT THAT'S OUR EXPECTATION NOW
IS THAT THAT BURDEN WOULD BE
GETTING RELAXED TO THE EXTENT OF
PROJECT RELATED TO THE èC PU
S¼. PLANNING. NOW A PLAIN OLD
RELIABILITY REQUIREMENT THAT
REALLY DIDN'T DRIVE OFF OF THAT
PLANNING MIGHT BE. IT WOULD BE A
DIFFERENT ISSUE. BUT THE POLICY
DRIVEN TRANSMISSION MEETING THE
CLEAN ENERGY GOAL EFFORTS AND CO
ORDINATED WITH THE RESOURCE
PLANNING AT THE PU èC. MY
UNDERSTANDING IS THAT BURDENS
BEING REMOVED AND 1073 IT WAS A
B 1370 THREE. THAT JUST DID THAT
FOR US PRETTY WELL. UM, BUT SO
IT HASN'T REALLY HAPPENED YET
BECAUSE YOU DON'T HAVE ANY NEW
CASES FOR YOU. WHAT DO YOU
EXPECT THAT TO DO, BECAUSE WHAT
YOU WERE TELLING ME WAS
HAPPENING HERE WAS REALLY
DUPLICATIVE, AND WE KNOW THAT
DUPLICATION IS TIME AND MONEY.
AND SO WHAT? DO WE EXPECT THINGS
LIKE THIS TO SHAVE OFF OF THE
PROCESS? ROUGHLY YEAH, I CAN I
CAN SHARE. UM SO WHEN WE'RE
GOING THROUGH A èC, P, èC N
OR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY. WE
HAVE THE, UH S¼ QL A COMPONENT
OF THE PRECEDING AND THEN
THERE'S ALSO A COST AND NEED
COMPONENT. AND SO THAT NEED
COMPONENT IS GOING TO BE
SIGNIFICANTLY SHAVED DOWN BY
BEING ABLE TO LEVERAGE THIS
REBUTTABLE PRESUMPTION, BUT
DON'T YOU ALL DO YOUR OWN SEQUEL
ANALYSIS ON THESE PROJECTS AS
WELL? ONLY WE ONLY DO S¼. UH,
KAISER DOES NOT DO S¼ QL. SO
THAT'S NOT BEING DUPLICATED.
YEAH. LINDA FINAL QUESTION. AND
I THANK YOU, MADAM CHAIR FOR
YOUR INDULGENCE, SO I'VE BEEN
WE'VE BEEN HEARING. I'VE BEEN
HEARING FOR A COUPLE OF YEARS
NOW THAT WE WERE GOING TO GET TO
FIVE GIGAWATTS OF OFFSHORE WIND
BY 2030. THEN I HEARD JUST
SOMEBODY SAY 4.5 GIGAWATTS HERE
TODAY AND NOW I LOOK AT YOUR
CHART AND SAYS 2032, SO I'M A
LITTLE SURPRISED TO FIND THAT
OUT TODAY. UM, SO CAN SOMEBODY I
FIVE GIGAWATTS BY 2030 WAS THE
NUMBER I KEPT HEARING. SO WHAT
HAPPENED? THERE'S NÓ WAY WE
COULD EVER GET THERE BECAUSE WE
DON'T HAVE ANY EXISTING
TRANSMISSION INFRASTRUCTURE. BUT
HOW DID HOW DID IT HAPPEN? THAT
WE FIND OUT ABOUT THAT HERE
TODAY AND NOT NOT IN SOME OTHER
VENUE? AND THANK YOU. ASSEMBLY
MEMBER WOULD I JUST WANT TO
CONTEXTUALIZE THE FIVE AND 25,
YOU KNOW, GIGAWATT GOAL. SO IN
ARTICULATING THE GOAL, AND IN
AVOIDING THAT DECISION AT THE
èC èC, THERE WAS A CLEAR
INDICATION THAT THIS WAS A
PLANNING GOAL THAT WOULD HELP
SUPPORT R S¼ P 100 GOALS. BUT
SHE HAS NOT DONE A COST. UH, YOU
KNOW, ANALYSIS ON THAT, SO WE
ALWAYS KIND OF LOOKED AT THAT
NUMBER. AS YOU KNOW, A GOAL THAT
WOULD PROVIDE CLEAR DIRECTION
FOR THE INDUSTRY TO HELP IN A
COALESCE IN THE INFRASTRUCTURE
DEVELOPMENT. BUT WE LOOK TO CPUC
FOR ACTUAL PROCUREMENT AND
AUTHORIZATION. AND THAT'S
SOMETHING THAT èC èC KIND OF
MENTIONED IT IN ITS 525 REPORT
AS IT'S A PLANNING GOAL VERSUS A
PROCUREMENT TARGET. VICE CHAIR,
PATTERSON. A COUPLE OF THINGS
HERE. UH, MY SLIDE PRESENTATION
HERE. HAS HEADWINDS TO
DEPLOYMENT ARE LIKELY TO
INCREASE AND I DID NOT SEE YOU
ADDRESS THIS. UM I'VE LOOKED.
I'VE LOOKED IT OVER. UM. ALSO,
UM. PART OF THE INFORMATION ON
THE HEADWINDS HAS BEEN AVAILABLE
LAND USE. AND I JUST WANT TO.
ADD CENTRAL CALIFORNIA
PERSPECTIVE ON THIS BECAUSE
THERE'S A LOT OF CONJECTURE.
THAT FOLLOWED AG LAND. IS GOING
TO BE TURNED INTO UM. SOLAR. UM.
I THINK IT'S IMPORTANT FOR US TO
NOTE. THAT AGRICULTURE HAS BEEN
ADAPTING. TO THE PROBLEM THAT
THEY HAVE WITH, UH WITH WATER
SUPPLY. SO THE STATE HAS SAID IF
YOU PUMP IT OUT, YOU GOTTA PUT
IT BACK. BUT WE'RE NOT GETTING
THE GROUND WATER TO PUT IT BACK.
UNIVERSITY OF CALIFORNIA WATER
INSTITUTE AT BERKELEY. DID AN
ANALYSIS. UH, SOMETHING LIKE A
HALF A MILLION ACRES COULD VERY
WELL BE FALLOWED. BILLIONS OF
DOLLARS OF LOST CROP VALUE AS A
RESULT. WELL, THE INTERESTING
THING IS THAT THERE IS A LARGE
GROUP OF SOME OF THE MOST
PRODUCTIVE UH AND INFLUENTIAL,
UH, AGRICULTURALISTS IN CENTRAL
CALIFORNIA. THAT HAVE DECIDED
THAT THEY THINK THAT TURNING. A
LOT OF THAT FALLOWED GROUND INTO
AGAVE. AND CREATE A CALIFORNIA
AGAVE MARKET. I CO-AUTHORED A
BILL THAT THAT PASSED A COUPLE
OF YEARS. AGO. UM AND SO I THINK
THAT AND IN READING OVER SOME OF
THOSE HEADWINDS. UH,
PRESUMPTIONS. ARE FLUID
MARKETPLACES. PROVIDE OPTIONS.
UM I THINK THE GOOD NEWS ABOUT
ADAPTATION TO AGAVE IS THAT
WE'RE GOING TO BE CREATING A
CALIFORNIA UH, AGAVE MARKETPLACE
FOR THE SYRUPS AND ALL OF THAT,
AND THESE AGRICULTURALISTS ARE
RIGHT NOW TESTING LARGE NUMBERS
OF VARIETIES TO FIGURE OUT WHAT
BUT THE BEST IS NOW THAT'S
THAT'S GONNA BE A LONG TERM
PROJECT. BUT UH, A LOT OF MY
FRIENDS IN AGRICULTURE WOULD
MUCH RATHER TURN IT INTO A
CALIFORNIA AGAVE CROP, THEN
ANOTHER SOLAR FARM. THEY ARE
COMMITTED TO THE GROUND TO THE
TO THE WORKERS. UH AND ALL OF
THAT. NOW WE THE INTERESTING
THING IS, WE CAN'T I CALL IT
CALIFORNIA TEQUILA. BECAUSE
MEXICO HAS A, UH VERY FIRM GRASP
ON THAT. TERM. AND SO A LOT OF
OUR FOLKS ARE. KIND OF
BRAINSTORMING ABOUT WHAT TO WHAT
TO DO ABOUT IT, BUT IT'S COMING.
AND SO ONE SUGGESTION IS THAT WE
CALL OUR TEQUILA. TAL I THIS IS
SERIOUS. I HAVE TRAVELED
EXTENSIVELY, UH, OUTSIDE OF
GUADALAJARA TO THE SALSA PLANTS
IN THOSE AREAS, UH, BACK WHEN I
WAS MAYOR. AH! WE
INTERNATIONALIZE THE AIRPORT
WITH OUR MEXICAN FLIGHTS, AND I
GOT A TOUR OF THE SALSA
OPERATION. UH AND I NOTICED A
LOT OF LAND. WITH A LOT OF, UH
SPACE. WITH A CROP ON IT, UH,
THAT. WAS HARVESTED REGULARLY
AND CREATING A VALUABLE
COMMODITY. SO UM, I THINK IT'S
IMPORTANT TO KEEP OUR EYE ON
THAT. UM, BECAUSE OUR
AGRICULTURAL ARE REALLY
COMMITTED TO FINDING A WAY. NOT
TO FOLLOW THE GROUND, BUT TO
GROW IT IN A WAY THAT DOESN'T
USE THE KIND OF WATER THAT SOME
OF THE OTHER CROPS DO, BUT, UH
I, I I'M CURIOUS. WE WE'RE WE'RE
TRYING TO, UH TEST RUN TO CALI.
YOU THINK THAT WORKS. NÓ I. I
AND I THINK AN ASSEMBLY MEMBER
IF I UNDERSTOOD IF I UNDERSTAND,
I THINK THAT THE LARGER QUESTION
IS THAT, UH, THERE ARE HEADWINDS
THAT ARE GROWING STRONGER. YEAH,
SOME OF WHICH WE ARE WELL AWARE
OF, SOME OF WHICH BUT I WAS I
WAS HOPING I WAS HOPING WE WOULD
WE WOULD GET A THOROUGH
PRESENTATION. IT'S SITTING HERE
IN MY UH, THAT SLIDES I HAVE I
WAS ANTICIPATING. I LOOKED THEM
OVER AHEAD OF TIME. AND
AVAILABILITY OF LARGE SCALE
GROUND IS A PROBLEM. UM AND
THERE ARE COMPETITIVE FACTORS
OVER LONG TERM. THAT WILL HAVE
AN IMPACT ON WHERE YOU CAN BUILD
. THAT'S QUESTION NUMBER ONE. I
WOULD HAVE LIKED TO HAVE SEEN
THAT AND HEARD THAT
PRESENTATION. I'M ALSO YOU'VE
GOT A LOT OF PLANNING HERE.
YOU'VE GOT A LOT OF, UH, MATRIX.
YOU, YOU YOU YOU HAVE A LOT OF
NUMBERS. UH, HAVE YOU CALCULATED
THE EXPECTED PRICE TAG OF ALL OF
THIS ADDITIONAL ELECTRICITY ON
THE GRID. AND HAVE YOU TRIED TO
CALCULATE WHAT THAT IS GOING TO
DO TO RATES GOING FORWARD? TO
ME. YOU'RE BUILDING A LOT OF NEW
STUFF. IN A MARKETPLACE THAT IS
INCREASINGLY S¼, UH, SUBJECT TO
INFLATION. AND IT'S A MOVING
TARGET, OBVIOUSLY, OVER TIME.
BUT HAVE YOU HAVE. HAVE YOU HAVE
YOU LOOKED AT THE PRICE TAG OF
THE ACQUIRING. THE NECESSITY TO
TRANSMIT IT WHAT THAT'S GOING TO
COST. AND THEN WHAT IS THAT
GONNA LOOK LIKE ON A KILOWATT
HOUR ON MY CONSTITUENTS? BILLS.
I THANK YOU VICE CHAIR. I'LL
JUST START OFF WITH THE WITH THE
FIRST QUESTION, AND THEN WE'LL
DISCUSS THE SECOND ONE AS WELL.
SO THE FIRST ONE ON THE LAND USE
IMPLICATIONS. YOU'RE ABSOLUTELY
RIGHT. I THINK YOU KNOW IN THE
FIRST REPORT ON S¼ P 100, WHICH
WAS PUBLISHED IN 2021 1 OF THE
CORE KIND OF OUTPUTS OF THAT
REPORT WAS A ROUGH ESTIMATION OF
THE ACREAGE WE NEED. UM BETWEEN
2021 AND NOW THE NEW REPORT,
GIVEN THE CLIMATE CHANGE IMPACTS
AND THE HIGH ELECTRIFICATION
THAT WE'RE THINKING WE ARE
LOOKING AT ABOUT 1.5 MILLION
ACRES OF LAND THAT NEEDS TO BE
DEVELOPED IN CALIFORNIA, BOTH
LAND AND SEA SPACE TOGETHER AND
HOW MUCH MORE THAN THAT WILL
WILL COME THROUGH IN THIS
REPORT, BUT THAT'S THE NUMBER WE
HAVE, UH, PUT OUT IN THE
PREVIOUS REPORT AFTER 101.5
MILLION ACRES, IT'S EXTREMELY
IMPORTANT AS YOU MENTIONED HOW
ARE WE GONNA GET THIS LAND? SO
THERE IS A LAND LAND USE SCREENS
MODELING THAT IS DONE THROUGH
PUC. KAISER INCOORDINATION FORM
èC KIND OF ULTIMATELY DEVELOPED
THOSE SCREENS, BUT WE WORK WITH
A VARIETY OF STAKEHOLDER GROUPS
TO DEVELOP THOSE CURRENTLY AS
YOU MENTIONED, DEPENDING ON HOW
YOU FRAME THOSE SCREENS, YOU
KNOW THE AMOUNT OF LAND THAT
EXISTS CHANGES. SO LOOKING AT
SOME OF YOU KNOW THE CONCERNS
THAT YOU'VE RAISED. WE ARE
DEEPENING OUR ANALYSIS FOR THE
NEXT REPORT, AND WE EXPECT TO
PUT THEM OUT THIS SUMMER. THE
UPDATED LAND USE SCREENS
SPECIFICALLY FROM THE
STAKEHOLDERS. A LARGE SOLAR
DEVELOPERS HAVE POINTED TO
EXACTLY WHAT YOU JUST MENTIONED.
THE IDEA THAT LAND WILL BE
AVAILABLE IS AN ISSUE. THAT'S 12
HAVING A KIND OF AN AVERAGE
PRICE OF THAT LAND IS ALSO AN
ISSUE BECAUSE THAT COULD
ESCALATE. SO WHAT? WE HAVE BEEN
ASKED TO LOOK AT IN THE S¼ P 100
PROCESS IS DIFFERENT COSTS AND
DIFFERENT AVAILABILITY OF LAND,
SO WE WILL THEN HAVE TO LOOK AT
IF WE DON'T DEVELOP THAT MUCH ON
THE BULK GRADE. WHERE WILL THOSE
RESOURCES COME FROM? AND IT
COULD POTENTIALLY BE ON THE
DISTRIBUTION SIDE, SO WE ARE
LOOKING AT A VARIETY OF
SCENARIOS, AND WE WOULD LOVE TO
REPORT BACK. WHAT DO YOU MEAN BY
THE DISTRIBUTION SIDE? SO BEHIND
THE METER SOLAR OR BEHIND THE
METER STORAGE. HOW? HOW DOES THE
BEHIND THE METER VERSUS THE BULK
SIDE OPTIMIZED BASED ON THE COST
, AND THE GHG CONSTRAINTS THAT
WE HAVE AS A STATE? GIVEN THE
CHALLENGE OF, UH, LAND
ACQUISITION. IS THERE ANY
THOUGHT OR CONSIDERATION
WHATSOEVER OF USING EMINENT
DOMAIN? UH, THOSE CONVERSATIONS
HAVE, UM, YOU KNOW, PERCOLATED
OVER THE LAST YEAR. WE AS AS
AGENCIES HAVE NOT TAKEN ANY
SPECIFIC UM YOU KNOW? DIRECTION
ON THAT ONE. BUT WE ARE LOOKING
TO SOME OF THE INPUT THAT'S
COMING FROM STAKEHOLDERS AND
THAT'S CONSISTENT. SOME OF THE
STAKEHOLDERS HAVE BEEN POINTING
TO EITHER IMMINENT DOMAIN HAVE
HAVE TALKED ABOUT, YOU KNOW
LARGE FEDERAL LANDS AS AN
OPPORTUNITY TALKED ABOUT
POTENTIALLY USING THE LAND THAT
IS CURRENTLY HOSTING A
TRANSMISSION LINES AND OTHERS.
YOU KNOW, HOW DO WE OPTIMIZE
BETWEEN ALL THE LAND THAT WE
HAVE THE BROWNFIELD
OPPORTUNITIES? SO WE ARE LOOKING
AT THAT YOU ARE YOU ARE
CONSIDERING EMINENT DOMAIN NÓ.
WE'RE NOT WE HAVE GOTTEN
STAKEHOLDER INPUT, AND WE ARE
KIND OF CONSTRUCTING THOSE
SCENARIOS RIGHT NOW AND WE'LL
WE'LL BRING IT BACK. AND THE WAY
IT HAPPENS AT THE COMMISSION IS
STAFF GET ALL THE INPUT AND
STAFF WILL THEN EXPLAIN TO ME
WHAT STAKEHOLDERS ARE YOU
TALKING ABOUT? LANDOWNERS
PRESENTLY. ARE YOU TALKING ABOUT
AGRICULTURE? PEOPLE WHAT ARE YOU
TALKING? WHO ARE YOU TALKING TO?
STAKEHOLDERS YES. THE PRIMARY
LEAD SOME OF THE, UM
STAKEHOLDERS THAT WE'VE GOTTEN
THE I THINK THE MOST PRISON
STAKEHOLDERS IN OUR PROCESS IS
REALLY THE DEVELOPER COMMUNITY.
AND YOU KNOW THE MOST OF THE
INPUT THAT DEVELOPER COMMUNITY.
THE SO THE CLEAN ENERGY
DEVELOPER COMMUNITY, SO WE GET A
LOT OF DIFFERENT IDEAS IN OUR
DOCKETS ON THESE ISSUES, AND I
RECALL, UM YOU KNOW THAT HAS
BEEN RAISED IN THE PAST. OK?
ASSEMBLY MEMBER BAR CAHAN. THANK
YOU, UM. AND I'LL JUST SAY THAT
I APPRECIATE YOUR COMMENTS. AND
I THINK WE SHOULD BE TALKING
ABOUT AGRI VOLTAIC SOLAR, WHICH
DOESN'T REPLACE FARMS, BUT IT
WORKS WITH FARMS TO REDUCE WATER
CONSUMPTION AND PRODUCE ENERGY
WHILE GROWING CROPS. I THINK
IT'S A GREAT THING. THE
CALIFORNIA SHOULD BE SPENDING
MORE TIME THINKING ABOUT BUT
MOVING ON TO THE NEXT SUBJECT. I
WAS INTERESTED IN YOUR FOCUS,
POTENTIALLY ON DEMAND SIDE
PRODUCTION. I FEEL LIKE THE
POLICIES THAT CALIFORNIA HAS
BEEN MOVING HAS BEEN MOVING AWAY
FROM ECONOMICS THAT SUPPORT
DEMAND SIDE ROOFTOP SOLAR
BATTERY, ET CETERA, AND PART
BECAUSE WE DON'T LIKE THE WAY
THAT'S BEEN FUNDED, WHICH I
THINK IS A FAIR CRITICISM. BUT I
AM CONCERNED THAT WE ARE MOVING
AWAY FROM A POTENTIALLY
IMPORTANT SOURCE OF ENERGY. WHEN
TRANSMISSION IS SUCH A HUGE
ISSUE, AND YET HERE YOU ARE
SAYING THAT DEMAND SIDE MAY BE
SOMETHING WE REALLY HAVE TO
FOCUS ON. SO I JUST WANTED TO
REVISIT THAT BECAUSE IT WAS A
SURPRISING THING TO HEAR YOU
SAY. YEAH, THANK YOU. S¼ ME
MEMBER WANT TO JUST MAKE SURE I
UPLIFT THE COORDINATIONS THAT
HAPPENS BETWEEN èC èC èC PU
èC CARB IN DEVELOPING THE S¼ P
100 PLAN ALONG WITH THE PO. SO
WHAT THE S¼ P 100 IS TRYING TO
DO IS ONE EXPLORE A VARIETY OF
SCENARIOS UNDER DIFFERENT
CONSTRAINTS AND SENSITIVITIES TO
FIGURE OUT HOW HOW CAN WE MEET
AT S¼ P 100 GOALS IN EXPLORING
THAT SPECIFICALLY FROM THE PU
THAT HAVE LOCAL CONSTRAINTS.
TRANSMISSION WE HAVE HEARD IT
VERY CLEAR THAT FOR SOME OF THEM
, IT MIGHT BE ALMOST IMPOSSIBLE
TO BRING IN NEW TRANSMISSION TO
DEVELOP THEIR LOCAL RELIABILITY.
AND SO CURRENTLY WE KNOW SOME OF
THE PO U S¼ ARE PLANNING THEIR
S¼ P 100 GOALS THROUGH IPS THAT
LARGELY ARE BEHIND THE METER
RESOURCES WHILE WE DO THAT, IN
SOME AREAS THAT MIGHT NOT BE THE
SAME FOR OTHER AREAS. SO WHAT WE
ARE TRYING TO DO IN OUR S¼ P 100
ANALYSIS, AS WE DISCUSSED IN OUR
RECENT WORKSHOP IS LOOK AT, OK,
SO WE NEED THIS MANY RESOURCES
150,000 OR 200,000 MEGAWATTS OF
NEW RESOURCES, DEPENDING ON THE
UPDATED ANALYSIS. AND THOSE
RESOURCES REQUIRE X AMOUNT OF
LAND. AND LET'S ASSUME PART OF
THAT LAND COULD NOT BE
MANIFESTED. SO WHAT DO WE DO? SO
THE FIRST THING WE ALWAYS DO IS
LOOK AT THE LEAST COST OPTION.
AND ONCE THE LEASE COST OPTION
IS DONE, THEN WE STUDY THE
SENSITIVITIES ON. WHAT IF THERE
IS A LAND USE CONSTRAINT IN A
WHAT IF YOU KNOW THERE IS A
TRANSMISSION CONSTRAINT? HOW
DOES THAT LOOK? AND SO WE WOULD
EXPECT SOME OF THOSE SCENARIOS
THAT HAVE LAND USE CONSTRAINTS
TO PICK UP BEHIND THE METER
RESOURCES, BUT YOUR I THINK ONE
OF THE STRUGGLES WE HAVE IS, YOU
KNOW THE FACTUAL INFORMATION ON
THE WHOLESALE MARKET VERSUS THE
COST OF A COMMUNITY SOLAR
PROJECT VERSUS THE COST OF
BEHIND THE METER SOLAR PROJECT,
AND THOSE HAVE DIFFERENT COSTS.
AND YOU KNOW, DEPENDING ON HOW
WE STUDY THE CONSTRAINTS AND HOW
THE PUBLIC POLICY EVOLVES IN
CALIFORNIA, YOU KNOW, WE MIGHT
SEE DIFFERENT FUTURES AND I
THINK THE LEAST COST WILL ALWAYS
BE THE BULK SIDE. UM BUT WHEN WE
THINK ABOUT THE BULK SIDE TO
VICE SHARES POINT, THE LAND USE
CONSTRAINTS SHOW UP AND ANOTHER
SHOW UP, AND SO THE BEHIND THE
METER MIGHT BE PICKED UP. AND
THE OTHER SIDE, I THINK IN KIND
OF THINKING TO THE DEMAND SIDE
IS DEMAND FLEXIBILITY. THAT
WOULD HAVE A HUMONGOUS BENEFIT.
THE AGENCIES JOINTLY ADOPTED A
7000 MEGAWATT GOAL BY 2030. I
THINK IF WE ARE ABLE TO REDUCE
THE DEMAND AT THE TIME, WE NEED
THESE RAMPING RESOURCES AND AT
TIMES WHEN IT HAS GREAT STRESS,
I THINK WE COULD SIGNIFICANTLY
IMPACT THE BUILD OUT. SO THOSE
WILL BE STUDIED AS WELL. GOT IT?
I MEAN, I THINK IT'S IMPORTANT
THAT WHEN WE THINK ABOUT THE
COST, WE ALSO THINK ABOUT WHO'S
BEARING THE BRUNT OF THAT COST,
RIGHT, SO IT'S NOT PURE COST.
IT'S WHEN YOU HAVE PRIVATE
INVESTMENT. IN ADDITION TO
PUBLIC INVESTMENT, RIGHT,
THERE'S A BENEFIT TO THE
TAXPAYERS TO THE RATEPAYERS. UM
AND SO YOU KNOW, WHEN WE THINK
OF, I THINK SOME OF THESE
PROJECTS IT'S REALLY IMPORTANT
TO THINK ABOUT PRIVATE PUBLIC
PARTNERSHIPS AND HOW THAT TORAS
COSTS FROM THE PLACES THAT ALL
OF US WANTED TO PAY THEM FROM
SPECIFICALLY THE RATEPAYERS. UM
AND THEN I DO WANT TO TOUCH ON
WHILE I'M ON BECAUSE I THINK IT
IS WHAT ALL OF OUR CONSTITUENTS
ARE THINKING ABOUT RIGHT NOW IS
THE SOARING SOARING RATES THEY
FACE AND THIS IS NOT, UM,
SEPARATE FROM THAT CONVERSATION
AS THE VICE CHAIR MENTIONED,
BECAUSE WHEN WE PUT WHEN WE
BUILD THIS INFRASTRUCTURE COSTS
MONEY, IT'S GOING INTO OUR BILLS
RIGHT NOW. AND SO I THINK IT IS
REALLY CRITICAL THAT WE TALK
ABOUT HOW WE ARE GOING TO AFFORD
THIS TRANSMISSION THAT I DON'T
THINK AT THE END OF THE DAY. WE
CAN AFFORD PERIOD, ESPECIALLY IF
IT'S GONNA PUT MORE BURDEN ON TO
RATEPAYERS AND SO AS WE LOOK AT
THESE GOALS, WHICH ARE A LOT
ABOUT YOU KNOW, I REPRESENT THE
TRI VALLEY, WHICH HAS BEEN A HUB
FOR MANY WIND AND SOLAR
PROJECTS. THE CONSTRAINT
COMMUNITY WAS ALWAYS WORRIED ALL
OF OUR OPEN SPACE WOULD BECOME,
UM CLEAN ENERGY PROJECTS. THAT'S
NOT POSSIBLE BECAUSE THERE IS IN
TRANSMISSION IN ALL OF THOSE
SPACES. SO WE HAVE SEEN
FIRSTHAND THE CONSTRAINTS OF
BUILDING OUT PROJECTS BASED ON
WHERE THERE IS AVAILABILITY OF
INTERCONNECTION AND
TRANSMISSION, AND IT'S REAL
RIGHT. AND SO I THINK THAT WE
NEED TO BE REALISTIC ABOUT ALL
OF THESE GREAT PROJECTS, YOU
KNOW, AND THIS WAS TOUCHED ON BY
MY COLLEAGUE. HOW WE ARE GOING
TO BUILD THAT AND HOW WE'RE
GOING TO BEAR THE BRUNT OF THE
COST, AND I DON'T THINK I SEE A
PATH FORWARD THAT DOESN'T RESULT
IN EVEN HIGHER BILLS. AND SO I
GUESS I JUST I I'M AT A LOSS AS
IT RELATES TO THAT IF SOMEBODY
WANTS TO TOUCH ON THAT I CAN
START AND THEN, UM, I KNOW MY
COLLEAGUES WILL HAVE THINGS TO
ADD. SO YOU KNOW, TO YOUR POINT
ABOUT AFFORDABILITY THROUGH THE
INTEGRATED RESOURCES PLANNING
PROCESS. WE ARE LOOKING FOR
THOSE LEAST COST RESOURCES THAT
ARE NEEDED IN ORDER TO MEET
RELIABILITY, UH, REQUIREMENTS AS
WELL AS REDUCING OUR GREENHOUSE
GAS REDUCTION GOALS. UM THROUGH
THE M, Ó U AND OUR INTERAGENCY
CO ORDINATION. THAT WORK HAS
BEEN OCCURRING ALL THE WAY DOWN
TO THE BUS BAR LEVEL LE, UH,
MAPPING LEVEL SO LOOKING AT
WHERE IS THERE? WHERE ARE THE
SUBSTATIONS ON THE SYSTEM? WHERE
ARE THE LOCATIONS WHERE
RESOURCES ARE AVAILABLE? IN
ADDITION TO WHERE THE IS AND SO
WE ARE GETTING DOWN TO THAT
GRANULAR GRANULAR LEVEL TO
UNDERSTAND WHAT OPPORTUNITIES
THERE ARE ON THE GRID. AND HOW
DO WE MAKE THE MOST OF THOSE
OPPORTUNITIES? SO UM, WE ARE
GETTING DOWN TO THAT GRANULAR
LEVEL WITH THESE RESOURCES THAT
ARE THE LEAST COST ANYTHING ELSE
THAT YOU WANNA ADD? YEAH I THINK
JUST, I THINK THE HYPOTHESIS
THAT THAT WE ALL HAVE, AND I
THINK IT'S ROOTED IN MODELING.
IS IF WE ARE ABLE TO MAXIMIZE
THE UTILIZATION OF THE RESOURCES
WE HAVE, UM SO THE ALL THE
ELECTRONS THAT ARE BEING UM, YOU
KNOW, GENERATED IN CALIFORNIA
COULD MEET THE LOAD AT THE TIME,
WE WILL HAVE A RATE IN A
DOWNWARD PRESSURE ON THE RATES
RIGHT NOW. I THINK WE ARE IN
THIS IN THIS. PART OF BOTH
TRYING TO SHAPE THE DEMAND TO
THE BEST DEMAND SHAPE. IT COULD
HAVE SO LIKE THROUGH RATES AND
SUCH WE'RE THINKING THROUGH.
WHEN SHOULD THE E VÆ S¼ CHARGE
BROADLY? I MEAN, I KNOW SOME OF
THEM MIGHT CHARGE OTHER TIMES,
BUT BROADLY WHEN DO THEY CHARGE?
UM YOU KNOW, WHAT'S THE GOOD
RATE STRUCTURE FOR, UH, CHARGING
AND DISPATCHING BEHIND THE METER
STORAGE AND SO ON, SO I THINK WE
ARE ONE THINKING THROUGH THE
PROGRAMS TO SHAPE THE DEMAND.
WE'RE ALSO BUILDING RESOURCES
AND DIFFERENT RESOURCES ARE
COMING AT DIFFERENT PACES. SO
FOR EXAMPLE, SOLAR RIGHT NOW WE
HAVE PLENTY OF SOLAR IN THE
MIDDLE OF THE DAY THAT IS NOT
COMPLETELY BEING USED. IT'S
EITHER EXPORTED OR SOME OF IT IS
CURTAILED, SO THE IDEA IS OVER
TIME AS THE CLEAN ENERGY
RESOURCES BECOME CHEAPER, WHICH
IS SOMETHING WE'VE OBSERVED IN
BOTH STORAGE AND SOLAR, AND TO
THE EXTENT THAT WE IN THE FUTURE
, GET TO A PLACE WHERE WE
MAXIMIZING THE UTILIZATION OF
THOSE ELECTRONS. WOULD BE A
DOWNWARD PRESSURE AND THAT'S
WHAT WE ARE WORKING TOWARDS.
WELL, I THINK WE WOULD ALL
SUPPORT DOWNWARD PRESSURE ON
RATES ON THIS COMMITTEE. THAT'S
A BIPARTISAN AGREEMENT. I WOULD
ASSUME SO, UM, BUT I THINK IT IS
REALLY CRITICAL. THAT IS, YOU
KNOW, I MEAN, I HAVE ALWAYS BEEN
A HUGE FAN OF DISTRIBUTED
RESOURCES. I KNOW IT ISN'T THIS
THE ULTIMATE SOLUTION, BUT IT IS
PART I THINK WE HAVE TO HAVE ALL
THE ABOVE SOLUTION AND I THINK
TRANSMISSION IS A REAL
LIMITATION TO OUR SYSTEM. AND SO
I THINK IT HAS TO BE AN
IMPORTANT PIECE OF THIS AND WE
NEED TO CONTINUE TO THINK ABOUT
IT. BUT I WILL SAY IN CLOSING,
AND THEN I'LL TURN IT BACK TO
THE CHAIR THAT WHERE THE PU èC
HAS BEEN CHARGED WITH PICKING
THE LEAST COSTLY ALTERNATIVE. I
HAVE NOT SEEN THAT TO PAN OUT. I
THINK WE CAN ALL SEE THE
UNDERGROUND AS AN EXAMPLE OF
THAT, WHERE MORE UNDERGROUND WAS
AUTHORIZED AND SEEMS APPROPRIATE
WHEN THERE ARE CHEAPER
ALTERNATIVES TO WILDFIRE
MITIGATION, SO I WOULD JUST
CONTINUE TO THAT WE THINK ABOUT
THE COST BENEFITS AND ENSURE
THAT WE ARE DRIVING COSTS DOWN
BECAUSE I THINK WE'RE AT A
BREAKING POINT. YES AND THANK
YOU FOR THOSE COMMENTS. AND I,
UH I WOULD AGREE. AND, UM, AS I
MENTIONED TO OUR VICE CHAIR.
APPRECIATE THE EMPHASIS ON COST,
AND WE DO HAVE A HEARING
SCHEDULED MARCH 5TH TO DO NÓ TO
DO IT, I. I THINK THAT IS, YOU
KNOW, CERTAINLY THE NUMBER ONE
THE NUMBER ONE TOPIC ON OUR
CONSTITUENTS, MINDS AND THE
NUMBER ONE ISSUE IN OUR MINDS
AND SO WE'LL BE DOING A DEEP
DIVE INTO ALL OF THOSE
OPPORTUNITIES. UM, JUST A COUPLE
OF QUESTIONS BEFORE WE WELCOME
OUR NEXT NEXT PANEL, SO I THINK
FOR ME AND I'VE SHARED THIS
DIRECTLY WITH SOME OF YOU FOR
ME, WHAT'S REALLY MISSING IS, UM
WHAT I WOULD CALL IT CLEAN
ENERGY DEPLOYMENT PLAN. FOR
PARTICULARLY OUR SHORT TERM
GOALS AND OBJECTIVES. SO VÀ AS
YOU SAID, UM, LONG TERM PLANNING
AND SHORT TERM PLANNING OR ARE
SLIGHTLY DIFFERENT THINGS WHEN
YOU'RE TALKING ABOUT LONG TERM
PLANNING, IT'S VERY MUCH KIND OF
, YOU KNOW. IS THIS
THEORETICALLY POSSIBLE. COULD WE
BELIEVE THAT WE COULD DO YOU
KNOW X AMOUNT OF THIS X AMOUNT
OF THAT, BUT WHEN WE'RE TALKING
ABOUT THE NEXT 5 TO 10 YEAR
HORIZON, PARTICULARLY IN A WORLD
WHERE ITS ASSEMBLY MEMBER WOULD
POINT IT OUT, IT'S TAKEN US
SEVEN YEARS TO GET STUFF.
CONNECTED IF WE DON'T HAVE A
LIST OF PROJECTS RIGHT NOW. THAT
ARE ACTUALLY HAPPENING, THEN
THAT'S NOT GONNA BE PART OF
DELIVERING ON OUR 2030 GOALS.
SO, UM. THAT'S WHAT'S REALLY
MESSY FOR ME, AND I GUESS DOES
THAT EXIST? AND IF NOT, CAN WE
CAN WE MAKE THAT EXIST? SURE, I
CAN START. SO WE DO HAVE THAT
LIST OF PROJECTS. UM AND THEN,
IN ADDITION TO THAT, ON THE YEAR
AHEAD BASIS, THE TRANSMISSION OR
THE TED TASK FORCE, UM, TRACKING
ENERGY DEVELOPMENT TASK FORCE
HAS THOSE PROJECTS BROKEN UP BY
EACH QUARTER OF THE YEAR AND IS
TRACKING EACH OF THOSE PROJECTS
TO COME ONLINE SO BOTH FOR THAT
END OF YEAR GOAL, BUT AS WELL AS
THE SUMMER GOAL, UM YOU KNOW
SOME THINGS THAT WE'VE OBSERVED,
YOU KNOW, DUE TO STORMS, WHETHER
IT'S THAT OUR PROJECTS GET
DELAYED, BUT EVENTUALLY THEY DO
COME ONLINE. UM BY THE END OF
LAST YEAR AND THE LAST QUARTER
WE HAD 36 PROJECTS THAT CAME
ONLINE. AND I WANT TO CONTRAST
THAT WITH THE FIRST QUARTER
WHERE NONE OF THE PROJECTS CAME
ONLINE THAT WERE SUPPOSED TO,
BUT THEY EVENTUALLY DID, AND OUR
TEAMS ARE WORKING DIRECTLY WITH
THOSE DEVELOPERS TO MAKE SURE
THAT THEY COME ONLINE. BUT WE DO
HAVE A LIST OF THOSE PROJECTS OK
AND WHAT WHAT IS WHAT'S THE
HORIZON? WE'RE KIND OF PLANNING
IN THAT. GRANULAR AT THAT
GRANULAR LEVEL. SO FOR THE
PROJECTS THAT WE ARE LIKE HAND
HOLDING AND HELPING TO GET
ONLINE. IT'S A ONE YEAR HORIZON.
BUT WE DO HAVE A BROADER HORIZON
. THE WHOLE LIST OF PROJECTS
THAT ARE THERE. THE KISO IS ALSO
STUDYING PROJECTS BY CLUSTER.
NEIL CAN TALK ABOUT THAT WITH
MORE DETAIL. UM SO WE HAVE. WE
DO HAVE A LOT OF INFORMATION ON
THESE PROJECTS AND HAVE WE
IDENTIFIED WE'VE GOT. YOU KNOW
OUR GOALS UP TO 2035 THERE HAVE
WE IDENTIFIED THE PROJECTS AND
INITIATIVES THAT ARE ACTUALLY
GOING TO DELIVER ON THOSE THOSE
GOALS AND THOSE TARGETS THROUGH
2035, SO I CAN START SO THE LOAD
SERVING ENTITIES HAVE PROVIDED
PRO PROVIDED PROPOSED PLANS FOR
THE PROJECTS THAT THEY WOULD
LIKE TO BE ABLE TO BRING ONLINE
IN THE DECISION THAT WE ADOPTED
LAST WEEK. WE LOOKED AT ALL OF
THOSE PROPOSALS AND CAME UP WITH
THESE ARE THE PROJECTS THAT ARE
GOING TO ACTUALLY HAVE TO COME
ONLINE. SO WE DO ALLOW LOADS OF
ENTITIES TO HAVE SOME, YOU KNOW,
AUTONOMY OVER WHAT PROJECTS THEY
WOULD LIKE TO BE BRINGING WHAT
KINDS OF RESOURCES BUT THEN, IN
THE END TO MAKE SURE THAT WE'RE
WORKING TOWARDS OUR GOALS, WE
LOOK AT THE WHOLE SYSTEM AND
THEN MAKE A FINAL DECISION ON
THAT. YEAH, I THINK, UH, CHE.
THANK YOU AGAIN, I THINK FOR
DRILLING DOWN ON THAT SPECIFIC
QUESTION. I THINK WE HAVE IN
SOME LOCATIONS REALLY GOOD DATA
IN SOME LOCATIONS AND AREAS WE
MIGHT BENEFIT FROM HAVING BETTER
VISIBILITY. BUT I THINK ON THE
TOP LINE THAT YOU'RE TALKING
ABOUT WHICH IS YOU KNOW, FROM
FROM NOW TO 2045. DO WE HAVE AN
IMPLEMENTATION STRATEGY. AND SO
WE RIGHT AFTER THE FIRST S¼ P
100 REPORT, THE JOINT AGENCIES
PUT TOGETHER SOME HIGH LEVEL
BARRIERS, WHICH KIND OF NOW HAVE
BEEN WORKED ON THROUGH THE
LEGISLATURE AFTER 2021 IN THE
2025 REPORT, THE S¼ P 100 REPORT
, THERE ARE THREE SECTIONS THAT
BROADLY WILL BE COVERED. ONE IS
THAT PROGRESS AND IDENTIFICATION
OF, YOU KNOW, IN A BOTH BEST
PRACTICES AND BARRIERS. SECOND
SECTION WILL TALK ABOUT HIGH
LEVEL ALTERNATE STRATEGIES AND
SCENARIOS ON HOW WE CAN REACH R
S¼ P ONE GOALS AND THE THIRD ONE
WOULD BE AROUND IMPLEMENTATION
STRATEGIES AND I THINK, AS WE
THINK, THROUGH 2045 GIVEN THE
LONG TERM, THE DETAIL AT WHICH
WE ARE ABLE TO SHOW IN S¼ P 100
WILL THEN BE SUPPLEMENTED WITH
MORE DETAIL AS LUA MENTIONED IN
THE YEAR AHEAD, BUT WE ARE ALSO
LOOKING AT HOW DO WE UPLIFT ALL
THIS INFORMATION INTO A SINGLE
LOCATION AND WILL CONTINUE TO
WORK ON THAT AND HOPEFULLY, WE
CAN BRING THAT BACK TO YOU. OK
AND THEN WHEN RELATED QUESTION
WHO IS THE LEAD ENTITY? ON NOT
CALLED CLEAN ENERGY DEPLOYMENT.
YOU KNOW, I THINK THE ANSWER THE
REAL ANSWER WOULD BE ALL OF US
DO IT TOGETHER. UM AND I THINK I
WOULD JUST, UH, YOU KNOW, HUMBLY
SUBMIT THAT GIVEN HOW
COMPLICATED AND YOU KNOW THE
DIFFERENT ROLES THAT WE HAVE
THAT ARE OVERLAPPING. THE BEST
KIND OF STRATEGY THAT IS WORKING
FOR US RIGHT NOW IS MORE OF A
MATRIX ORGANIZATION. AND WE
PULLED TOGETHER IMPORTANT AREAS
OF CO ORDINATION AND THOSE
IMPORTANT AREAS OF CO-ORDINATION
HAVE A FORMAL STRUCTURE FOR US
TO TRACK THROUGH, SO I THINK YOU
KNOW AS A TEAM, FOR EXAMPLE,
UNDER LIABILITY HAS BEEN WORKING
AS A COURT COURT KIND OF LEAD ON
TRANSMISSION PLANNING. IT WILL
BE KO ON KIND OF MORE. THE TED
TASK FORCE AND IRP. IT WILL BE
CPUC. AND SO WE HAVE THESE LEAD
AGENCIES DESIGNATED WITHIN THOSE
MATRIX ROLES THAT WE HAVE. AND I
JUST I GUESS A COUPLE OF
COMMENTS. UM, I DON'T HAVE A
SOLUTION TO THAT. BUT THAT MAKES
ME NERVOUS. SO I IS, AS I'VE
SHARED WITH YOU. I'VE BEEN IN AN
ASSEMBLY MEMBER NOW FOR FIVE
YEARS, BUT I COME FROM THE
PRIVATE SECTOR AND IN THE
PRIVATE SECTOR IF YOU'RE TRYING
TO DO SOMETHING BIG AND HARD,
LIKE THERE'S SOMEBODY IN CHARGE,
RIGHT? YOU NEED SOMEBODY WHO
WAKES UP EVERY SINGLE MORNING
THINKING LIKE OH, MY GOD. HOW
ARE WE GONNA GET THROUGH THE
NEXT YEAR? THE NEXT MONTH THE
NEXT DAY, AND WHEN THINGS ARE
ARE MATRIXED, IT'S MORE
COMPLICATED. IT'S NÓ ONE'S
NUMBER ONE MISSION AND SO IT
FEELS A LITTLE BIT. UM AND EVEN
AS YOU KNOW, DIGGING INTO SOME
OF THE WAYS THAT YOUR AGENCIES
ARE COORDINATING AND WORKING
REALLY HARD TO COORDINATE. IT
FEELS A LITTLE BIT LIKE WE ARE,
UH, TAKING YOU KNOW CERTAIN
INSTITUTIONAL CONSTRAINTS AS A
GIVEN AND THEN TRYING TO DO A
VERY, VERY HARD AND NEW THING
FOR WHICH YOUR AGENCIES ACTUALLY
WERE NOT CREATED. RATHER THAN
PERHAPS TAKING A STEP BACK AND
THINKING THROUGH. ARE THERE
OPPORTUNITIES AND A NEED FOR US
TO KIND OF RESTRUCTURE
RESPONSIBILITIES TO ENSURE
CLEARER ACCOUNTABILITY. AND
PERHAPS, UM, MORE CERTAINTY OF
DELIVERY, SO THAT WOULD BE ONE I
THINK. YES UH, SUGGESTION OR
TAKE AWAY AND WE CAN DIVE MORE
INTO THAT MOVING FORWARD. AND I
KNOW ASSEMBLY MEMBERS WERE, UH,
HAS A QUESTION. AND THEN SOME.
SO THANK YOU AND I. I KNOW THAT
ASSEMBLY MEMBER W IS PROBABLY AS
SOME OF THIS SO TO THE EXTENT
THAT I'M REPEATING APOLOGIES. UM
I ACTUALLY LOOKING AT THIS SHEET
AND I SEE, UH, OFFSHORE WIND.
HAS BEEN MOVED A COUPLE OF YEARS
BACK, AND I UNDERSTAND YOU'VE
ANSWERED THAT ALREADY. I, I
GUESS IN TERMS OF THE PLANNING
FOR THAT, THOUGH, AND I THINK
THIS IS SORT OF APROPOS OF THE
CHAIRWOMAN'S QUESTIONS. HOW MUCH
HAVE YOU IN EVEN SETTING THOSE
TARGETS ESTIMATES. HOW MUCH HAVE
YOU GONE IN AND LOOKED AT SORT
OF ALL THE PIECES THAT HAVE TO
HAPPEN IN ORDER TO EVEN MAKE
THAT A REALITY IN 2032, MEANING?
HAVE YOU FACTORED IN THE FACT
THAT WE'VE GOT TO ACTUALLY TO
UPGRADE TO OUR PORT. WE GOT
ENTITLED THE PORT INFRASTRUCTURE
. WE'VE GOT TO HAVE TRANSMISSION
AT THAT POINT. UM AND SO I WAS
JUST WONDERING HOW MUCH OF THESE
ASSUMPTIONS HAVE HAVE A
DETAILED, UM. YOU KNOW, STRATEGY
BEHIND THEM OR HOW MUCH OF THIS
IS SORT OF THE BEST WE CAN DO AT
THIS POINT, I GUESS. YEAH. THANK
YOU, SENATOR. JUST KIND OF I
THINK THE 525 STRATEGIC PLAN HAS
BEEN ADOPTED BY THE S¼ E èC
EARLIER THIS YEAR, AND THAT DOES
LAY VERY CLEARLY. YOU KNOW THE
ASPECTS THAT YOU MENTIONED,
WHICH IS THE PORT DEVELOPMENT
THAT IS REQUIRED. THE GENERAL
DOLLAR AMOUNTS THAT WE THINK IS
REQUIRED. SO I THINK THAT WOULD
BE THE BASE CASE FOR OUR WORK,
AND IT'S SIMILARLY, UH, THROUGH
THE SHOT CENTER, BUT ALSO, AS
NEIL MENTIONED THROUGH KAISER,
WE'RE GONNA WE ARE STUDYING THE
TRANSMISSION ISSUES AS WELL. SO
I THINK OVERALL, THERE IS A
STRATEGY LAID OUT. UH, FROM HERE
TO YOU KNOW HOW WE CAN MAKE IT
MANIFEST? UH, INCLUDING, YOU
KNOW, I THINK THE CENTRAL
PROCUREMENT FUNCTION THAT THE
LEGISLATURE HAS AUTHORIZED TO
DWR. AND BY THE WAY, I MEAN, I
HAVE A LOT OF RESPECT FOR THE
èC AND THE OTHER AGENCIES HERE.
I KNOW THAT, UH, THAT YOU ALL
ARE VERY COMMITTED TO SORT OF
MEETING OUR CLEAN ENERGY AND OUR
AND WHAT WE NEED TO DO TO MEET
THE SCOPING PLAN REQUIREMENTS.
UM, BUT I SHARE THE, UH, THE
CHAIRWOMAN'S CONCERN ABOUT, UM
ABOUT SOMEONE DRIVING A STRATEGY
AND THE FACT THAT YOU'VE GOT
SORT OF MULTIPLE AGENCIES THAT
HAVE, UH, SHARED AND OVERLAPPING
RESPONSIBILITY AND ABOUT DRIVING
TO A CONCLUSION. I'M REALLY
NERVOUS ABOUT WHETHER OR NOT WE
CAN MEET THESE NUMBERS FOR
ALMOST ALL OF THIS, UM AND SO,
UM YEAH. JUST JUST WANT TO SAY
THAT THAT I SHARE THE CONCERN
THERE. I HAD ONE OTHER QUESTION
AND I DON'T WANT TO SORT OF AND
IT WAS THE OTHER SHEET. THAT HAD
THE, UM WHERE IS THAT? IT IS
THAT, UH, PROVIDE CLEAN ENERGY
BY 2045. AND YOU'VE ESTIMATED
100 AND 80. THREE UM, MEGAWATTS
OF, UM CLEAN ENERGY NEEDED BY
2045, AND THERE IS A SIGNIFICANT
BATTERY STORAGE COMPONENT OF
THAT. I'M WONDERING IF YOU CAN
TELL ME ONE. HOW MUCH
ELECTRICITY IS CURRENTLY ON THE
GRID. SO THIS IS CLEAN ENERGY TO
CLEAN ENERGY. RIGHT SO HOW MUCH
ENERGY DO WE HAVE? NOW THAT
WE'RE ACTUALLY HAVING TO MOVE TO
THE 180 THREE MEGAWATTS, AND HOW
MUCH WOULD WE NEED WITHOUT THE
HOW DOES THE BATTERY STORAGE FIT
INTO THAT? UM YOU KNOW, I KEEP
HEARING FROM VARIOUS FOLKS, UM,
THAT WE NEED MORE THAN YOU KNOW,
TWO TO THREE TIMES THE AMOUNT OF
ELECTRICITY WE'RE PRODUCING
TODAY. IS THAT? IS THAT AN
ACCURATE STATEMENT? IS THAT
ACCURATE WITH THE BATTERY
STORAGE AND SORT OF WHAT IS SORT
OF THE WHAT IS THE OVERALL
ELECTRICITY WE'RE PRODUCING. IT
INCLUDES A NON-RENEWABLE. HOW
DOES THAT COMPARE TO THE 180
THREE MEGAWATT FIGURE? YEAH
ABSOLUTELY. SO I THINK JUST ON
THE DEMAND ELECTRIC DEMAND TO
JUST STARTING THERE, UM, BETWEEN
2021 AND 2045. WE EXPECT IT TO
AT LEAST DOUBLE IN TERMS OF JUST
ENERGY CONSUMPTION IN TERMS OF
THE PEAK DEMAND THAT WE ARE
GOING TO MEET, IT'S PROBABLY
ALSO GOING TO BE BETWEEN TWO TO
THREE TIMES AND WE ARE UPDATING
THE ANALYSIS RIGHT NOW.
CURRENTLY OUR CLEAN ENERGY. THE
ZERO CARBON RESOURCES ARE ABOUT
60% OF THE GRID. FOR TODAY'S
RIGHT, SO THAT'S LIKE ABOUT A
QUARTER FOR WHAT WE NEED IN THE
FUTURE. SO ON OUR JOURNEY, UM,
THERE WE DO RECOGNIZE THE
IMPORTANCE OF STORAGE OF ABOUT
53,000. MEGAWATTS IS THE NUMBER
THAT WE HAD LAST TIME. AND JUST
ON A SUCCESS STORY. WE WENT FROM
200 MEGAWATTS IN 2019 TO NEAR
10,000 MEGAWATTS RIGHT NOW IN
TOTALITY, UM, SO WE HAVE ABOUT
80 ABOUT 8000 MEGAWATTS IN BULK
STORAGE ALREADY, SO WE EXPECT
THAT TO CONTINUE TO GROW, AND I
ALSO WANT TO JUST OFFER THAT BY
2030. WE COULD POTENTIALLY HAVE
ABOUT 60 GIGS OF STORAGE ON THE
WHEELS. AND HOW DO WE USE THAT
60 GIGS AND THE STORAGE TO
BETTER SHAPE? THE DEMAND IS
ANOTHER THING THAT WE ARE
WORKING ON. BUT I HOPE THAT
ANSWERS THE HIGH LEVEL QUESTION.
YOU ADD ONE MORE QUESTION, UM,
OF THIS COMPONENT, THE 180 THREE
MEGAWATTS. HOW MUCH OF THAT IS
ASSUMING THAT CLEAN HYDROGEN IS
PART OF THE MIX, EITHER FOR PEER
SUPPORT. OR FOR SOMETHING ELSE.
YES SO THIS PARTICULAR CHART SO
FIRST ON THE HYDROGEN PRODUCTION
SIDE. DOES NOT INCLUDE ANY
ENERGY FOR THE FOR THE HYDROGEN
PRODUCTION. HYDROGEN PRODUCTION
IN THE PREVIOUS STUDY, AS WELL
AS THE SCOPING PLAN HAS BEEN
ASSUMED TO COME FROM OFF GRID
RESOURCES. SO THAT'S SOMETHING
THAT WE ARE BAKING IN RIGHT NOW.
SO WE I THINK IT'S IN THE
BALLPARK IS ABOUT 5 TO 8000
MEGAWATTS OF NEED HAS BEEN
IDENTIFIED. WE HAVE NOT STUDIED
THAT IN ENTIRETY, BUT THIS THIS
KIND OF PARTICULAR WORK WILL DO.
UM IN REFLECTING THE S¼ P 100
PLANS. THE FIRST REPORT HAD WHAT
WE CALLED GENERIC RESOURCES OF
COMBUSTION, SO WE DID NOT KNOW
HYDROGEN COMBUSTION WOULD BE A
PATH AT THE TIME. UH, IN 2021,
SO IF WE LOOK AT A GENETIC ZERO
CARBON, A FIRM RESOURCE THAT WE
COULD HAVE ON THE SYSTEM THAT
REDUCES THE BUILD OUT BY 20 TO
30,000 MEGAWATTS. RIGHT THERE.
SO UH, BECAUSE OF THE SHAPE OF
IT, SO MOVING FORWARD FOR 2025
REPORT. WE ARE LOOKING AT BOTH,
INCLUDING THE DEMAND SIDE FOR
HYDROGEN PRODUCTION ON THE ON
THE POWER SIDE POWER SECTOR, THE
TRANSPORTATION SECTOR HAS ALWAYS
BEEN INCLUDED. AND THE SECOND
PART WE WILL BE LOOKING AT IS
GIVEN THAT SOME OF THE IPS ARE
ESPECIALLY THE POU ALREADY
INCLUDE THE HYDROGEN COMBUSTION
WILL BE MAKING THAT IN AND
THINKING THROUGH HOW TO OPTIMIZE
THE MODEL. THANK YOU VERY MUCH.
ALL RIGHT. THANK YOU, UH,
ASSEMBLY MEMBER, CONNOLLY AND
THEN ASSEMBLY MEMBER WOULD AND
THEN WE'LL GO AHEAD AND, UH,
MOVE ON TO OUR SECOND PANEL.
THANK YOU CHAIR. GOOD AFTERNOON.
GOOD TO SEE YOU. BUT YEAH. UH,
ALL THREE OF YOU, UM, COUPLE OF
TOPICS I WANNA START OUT BACK
WITH, UH, CUSTOMER SIDE. UM
ALTERNATIVES AND PARTICULARLY
ROOFTOP SOLAR, WHICH IS A HOT
TOPIC RIGHT NOW. UM UNDER THE S¼
B 100 JOINT AGENCY REPORT. UH,
SUMMARY, IT IDENTIFIES 12.5
GIGAWATTS OF PROJECTED NEW
CUSTOMER SIDE SOLAR RESOURCES BY
2030. UH AND 28.2 GIGAWATTS BY
2045 AS PART OF 100% CLEAN
ELECTRICITY MIX. HOW CAN WE BE
CONFIDENT? UH, THAT WE'RE ON
TRACK TO DEPLOY THAT 28.2
GIGAWATTS. AFTER THE DROP AND
ROOFTOP SOLAR APPLICATIONS AND
LAYOFFS IN THE SOLAR INDUSTRY
FOLLOWING THE N M THREE POINT
Ó DECISION. YEAH, THANK YOU.
I'LL JUST KIND OF SET IT AT A
VERY HIGH LEVEL AND WELCOME LU
TO ADD ANYTHING. SO IN S¼ 100,
THE 2021 REPORT. UM AND JUST
GONNA STRUCTURING THE
CONVERSATION ON HOW WE GO ABOUT
THE MODELING. WE UNDERSTAND THE
DEMAND CONSUMPTION FIRST. AND
ONCE WE UNDERSTAND THAT THE
SECOND STEP WE DO WHAT IS CALLED
A CAPACITY EXPANSION. AND WHAT
IT MEANS IS YOU HAVE THIS TOOL
WHERE WE SAY HERE ARE ALL THE
CANDIDATE RESOURCES THAT YOU
COULD PICK FROM ROOFTOP SOLAR
BEHIND THE METER SOLAR SORRY,
COMMUNITY, LESS SCALE, SOLAR
STORAGE AND ALL OF THEM AND THEN
WE GIVE IT, YOU KNOW, COST PER
METERS AND, UM AND OVERALL PRICE
REDUCTION AND STUFF. AND ONCE
YOU DO THAT DIFFERENT RESOURCES
GET PICKED UP TO MATCH THE LEAST
COST AND MEETING THE GHG
EMISSIONS. WHEN WE DID THAT, IN
2021 AS A CANDIDATE RESOURCE
BEHIND THE METER SOLAR WAS NOT
PICKED UP. IT DOES NOT GET
PICKED UP JUST ON THE BASE OF
THAT OPTIMIZATION OF COST. BUT
WHAT YOU SEE IN TERMS OF THE
30,000 MEGAWATT ROUGH PROJECTION
IS BASED ON THE DEMAND FORECAST.
WE HAVE. SO LET ME JUST EXPLAIN
THAT A LITTLE BIT WHEN WE
DEVELOP A DEMAND FORECAST WE
FIRST TAKE INTO ACCOUNT ALL THE
OVERALL CONSUMPTION. AND WHAT WE
EXPECT THE ENERGY CONSUMPTION
SHOULD BE AND THEN WE LOOK AT
HOW MUCH OF THAT WOULD BE MET
BY, UM AND EFFICIENCY. LOAD
MANAGEMENT. HOW MUCH IS BEHIND
THE METER SOLAR? AND THAT BEHIND
ME? THEIR SOLAR FORECAST COMES
FROM OUR BEST ESTIMATE BASED ON
THE RATE DESIGN THAT EXISTS THAT
DAY. SO BASED ON 2021 A FORECAST
WE HAD ABOUT 30,000 MEGAWATTS
SHOW UP BASED ON THAT. AND FOR
THE LATEST FORECAST, THOSE
NUMBERS HAVE NOT GONE DOWN YET.
SO UH, THE QUESTION IS TWO
PARTS, RIGHT? SO ONE IS WHAT IS
THE FORECAST? AND IF YOU
OPTIMIZE PURELY FOR COST BE
PICKED UP. SO THE SECOND ANSWER
IS NÓ. THE FIRST ANSWER IS BASED
ON THE FORECAST BASED ON THE
CUSTOMER PREFERENCES BASED ON
THE RATES THAT THE CUSTOMERS
MIGHT SEE. THE DEPLOYMENT
CURRENTLY STILL SHOWS 30,000 AND
WE WILL BE TRACKING THAT AND
UPDATING IT BASED ON YOU KNOW
WHAT WE OBSERVED IN THE MARKET.
MAKE CONTRIBUTE A BIT TO THAT
RESPONSE. I JUST WANTED TO ADD
THAT YOU KNOW SOME OF THE
CHANGES THAT WE HAVE MADE TO THE
INCENTIVES FOR ROOFTOP SOLAR
MORE. MOST IMPORTANTLY, THE
PAIRING WITH STORAGE IS REALLY
TO IS IN ALIGNMENT WITH, UM,
WHERE OUR CLEAN ENERGY RESOURCE
GOALS NEEDS TO BE. YOU KNOW, WE
DO SEE AT NET PEAK, A LARGE DROP
OFF OF SOLAR ON THE SYSTEM AND
BY ALIGNING OUR INCENTIVES TO
SUPPORT THE ADDITION OF STORAGE.
YOU'RE GONNA BE ABLE TO TAKE
THAT SOLAR EVEN FURTHER. UM WE
ALL KNOW THAT THESE ARE RAPE
PARENTS INCENTIVES THAT DO THESE
ARE INCENTIVES THAT ARE PAID FOR
BY RATEPAYERS, AND OUR STUDIES
HAVE SHOWN THAT THE CROSS
SUBSIDY FROM CUSTOMERS THAT
DON'T HAVE SOLAR TO CUSTOMERS
THAT DO TOTALS ABOUT $6 BILLION
ANNUALLY, SO WE REALLY WANNA
MAKE SURE THAT AS WE, UM,
CONTINUE INCENTIVES LIKE THIS,
THAT WE ARE MAKING SURE THAT
THEY TRACK WITH THE NEEDS OF THE
SYSTEM IN ORDER. HELP MOVE OUR
RESOURCE PLANNING GOALS FORWARD.
UM AND AS MEMBER COLIN JUST WANT
ONE THING, THE LATEST FORECAST
WHEN I JUST OBSERVE THAT UM, THE
SAME LEVEL OF SOLAR DEPLOYMENT
STILL EXISTS IN THE FORECAST,
BUT JUST ONE IS OBSERVED THAT
THE MODELING IT HAS SHIFTED FROM
SOLAR ALONE TO HYBRID SYSTEMS TO
BE COST EFFECTIVE IN THE
FORECAST. WE STILL OBSERVE THE
SAME LEVELS OF SOLAR BUT HAS
HYBRID SYSTEMS. GREAT UH, WE
APPRECIATE THE ONGOING
DISCUSSION ON THAT, UH, FINAL
TOPIC. UM, RESOURCE ADEQUACY. I
DON'T I APOLOGIZE IF IT WAS
COVERED ALREADY, BUT NOTICED IT
IN THE MATERIALS. UM AS THE VERY
WELL WRITTEN, UH, STAFF REPORT
NOTES ON PAGE SEVEN. THERE HAVE
BEEN NINE CHANGES IN THE
RESOURCE ADEQUACY REQUIREMENTS.
UH SINCE 2020. SO I GUESS MY
QUESTION IS, IS THERE A UNIFIED
PLAN? BEHIND ALL THE RECENT
CHANGES, UM TO ME, CALIFORNIA'S
CLEAN ENERGY GOALS. HOW ARE THEY
BEING ALIGNED? YEAH I CAN START
AND, UM, ALSO HAVE MY COLLEAGUES
, UM, CONTRIBUTE, SO THESE ARE
KEY CHANGES THAT WERE MADE IN
RESPONSE TO SOME OF THE INS THE
EXPERIENCES WE HAD WITH
RELIABILITY IN 2020. SO FOR
EXAMPLE, HISTORICALLY, WE WERE
USING A PLANNING PLANNING
RESERVE MARGIN OF 15% SINCE THE
INCEPTION OF THE RESOURCE
ADEQUACY PROGRAM BACK IN 2005.
THIS IS, YOU KNOW, FAIRLY AN
INDUSTRY STANDARD, UM THERE, BUT
WE WERE ABLE TO MOVE TOWARDS,
UM, A NEW PLANNING RE MARGIN, UM
MOVING 16% IN 2020 THREE TO 17%
FOR 2024 TO 2025 IN ORDER TO BE
MORE RESPONSIVE TO SOME OF THESE
CHALLENGES THAT WE'RE HAVING ON
THE SYSTEM AND ABLE TO MAKE SURE
THAT OUR LOAD SERVING ENTITIES
ARE PROCURING ENOUGH ELECTRICITY
. SO AS I SAID, WE HAVE, UM, AS
YOU POINT OUT, THERE HAVE BEEN A
NUMBER OF CHANGES AND THOSE HAVE
BEEN IN RESPONSE TO SOME OF
THESE RELIABILITY CHALLENGES
THAT WE'VE HAD. YEAH UM, IT'S AN
I THINK, UM, YOU KNOW, JUST KIND
OF OBSERVING THAT. THE PREVIOUS
PARADIGM OF PLANNING BEFORE THE
INTERMITTENT RESOURCES SHOWED
UP. WHEN THE RESOURCES WERE FIRM
AND SOMETHING WE COULD ALWAYS
CONTROL. WE'VE TRANSLATED WHAT
IS CALLED A ONE IN 10 LOSS OF
NOT EXPECTATION. MODELING WITH A
SIMPLE PM OR A PLANNING RESERVE
MARGIN, AND WE WERE ABLE TO DO
THAT BECAUSE THE RESOURCES WERE
PRETTY FIRM AND WE CAN CONTROL
BUT GIVEN THE RAPID PENETRATION
OF SOLAR AND WIND AND OTHER
RESOURCES, THAT PARADIGM HAS TO
EVOLVE AND HAS BEEN EVOLVING,
AND I THINK TO LU AM'S POINT,
ALL THE STEPS WE HAVE BEEN
TAKING OVER THE LAST 5 TO 6
YEARS. BUILDING TOWARDS MAKING
SURE THAT THE NEW PLANNING
STANDARD REALLY REFLECTS THE ONE
IN 10. LOSS OF EXPECTATION.
ASSEMBLY MEMBER WOULD THANK YOU.
I'LL BE BRIEF. UM, UH, JUST JUST
KIND OF A FOLLOW UP. CIRCLE.
I'VE BEEN ASKING FOR A YEAR AND
A HALF. THIS NEW PROCESS OF YOU
ALL WORKING TOGETHER. WHAT IS
THAT GOING TO LEAD TO AS FAR AS
EFFICIENCY? WHAT HOW MUCH ARE
YOU GOING TO SHRINK THE PROCESS?
I'VE NEVER RECEIVED AN ANSWER,
BUT ASKING FOR LIKE I SAID A
YEAR AND A HALF CAN AT SOME
POINT, NOT TODAY. CAN YOU COME
BACK TO US AND SAY THIS NEW
PROCESS IS GOING TO SAVE
STAKEHOLDERS THIS AMOUNT OF TIME
THAT'S GONNA SAVE THE ENTIRE
PROCESS. AND THE REASON I KEEP
COMING BACK TO THIS IS TIME IS
MONEY. AND THAT IS REFLECTED IN
THE RATES THAT CONSUMERS ARE
PAYING. AND RIGHT NOW, RIGHT?
CONSUMERS ARE SCREAMING AT US
ABOUT THE RATES AND THEY'RE
GOING TO GO UP. WE KNOW THAT SO
THE MORE EFFICIENT WE CAN BE AS
GOVERNMENT TO HELP THIS PROCESS
ALONG, THE BETTER IT'S GOING TO
BE FOR OUR RATEPAYERS. AND IT
JUST I DON'T KNOW. IT JUST
SEEMED THERE ARE WAYS WE CAN
MAKE THIS MORE EFFICIENT. WHICH
THEY'RE OBVIOUSLY ARE. I WILL GO
BACK TO THE CHAIR, I. I WOULD
AGREE THAT SOMEBODY OVERSEEING
THIS MIGHT MAKE A DIFFERENCE.
ONE PERSON WHO EVERYBODY REPORTS
TO THAT CAN SAY OK, WE'RE MOVING
IN THIS DIRECTION AND WE'RE
GONNA GO THAT WOULD POTENTIALLY
BE HELPFUL. THANK YOU. AND THANK
YOU. ASSEMBLY MEMBER WOULD AND,
UH, I GUESS BUILDING ON THAT. UM
IF WE CAN GIVE YOU ONE OTHER
PIECE OF FOLLOW UP, I THINK, IN
ADDITION TO, UH, CYCLING BACK
WITH THE COMMITTEE, UH,
REGARDING ASSEMBLY MEMBER WOODS
QUESTION IN TERMS OF HOW MUCH
MORE EFFICIENT HAVE RECENT
CHANGES MADE THE PROCESS I WOULD
REALLY APPRECIATE, UM, YOUR
RECOMMENDATIONS OF OTHER
OPPORTUNITIES FOR US TO IDENTIFY
OTHER PROCESS IMPROVEMENTS THAT
CAN ACCELERATE TIMELINES
FURTHER, SO IF WE CAN GIVE YOU
THOSE TWO HOMEWORK ASSIGNMENTS.
UH, AS PART OF OUR FOLLOW UP,
THAT WOULD BE GREAT. OK UM, WITH
THAT. THANK YOU, UH, TO, UH, ALL
THREE OF YOU FOR PARTICIPATING
IN OUR HEARING TODAY. LOOK
FORWARD TO CONTINUING THIS
CONVERSATION AS WE MOVE FORWARD,
AND WITH THAT WE'LL GO AHEAD AND
MOVE TO OUR SECOND PANEL. THANK
YOU. CHAIR. UM ALL RIGHT. OUR
SECOND PANEL INCLUDES A
STAKEHOLDER PERSPECTIVES ON
STATE ENERGY PLANNING AND
COORDINATING. UH, WE WILL, UH BE
HERE IN THE PERSPECTIVE OF
PUBLICLY OWNED UTILITIES,
ELECTRIC CORPORATIONS, OUTSIDE
EXPERTS AND CLEAN ENERGY
DEVELOPERS. UM AGAIN, WE'LL ASK
ALL OF OUR PANELISTS TO MAKE
OPENING STATEMENTS AND THEN AT
THE CONCLUSION, WE'LL OPEN IT UP
TO THE COMMITTEE FOR QUESTIONS.
UM, WELCOME. ALL RIGHT, AND OUR
SECOND PANEL WILL BEGIN WITH
RANDY HOWARD UH, THE GENERAL
MANAGER OF THE NORTHERN
CALIFORNIA POWER AGENCY. GOOD
AFTERNOON, MADAM CHAIR AND
COMMITTEE MEMBERS. UM WE'LL JUST
JUMP TO THE NEXT SLIDE. MY NAME
IS RANDY HOWARD I'M THE GENERAL
MANAGER AT NORTHERN CALIFORNIA
POWER AGENCY. UH, FOR THOSE THAT
DON'T KNOW US. THERE'S A LITTLE
SLIDE UP THERE THAT JUST KIND OF
SHOWS WHERE EARLY 16 MEMBER UH,
UTILITIES MUNICIPALITIES THAT
ARE THROUGHOUT NORTHERN
CALIFORNIA. WE SERVE ABOUT
700,000 CUSTOMERS. UH N èC P A
IS A GENERATOR AND ASSIST WITH
TRANSMISSION WE CURRENTLY
SCHEDULE ABOUT 70 GENERATION.
PROJECTS INTO THE CAL. I S¼ Ó,
UH, TO SUPPORT THE NEEDS OF THE
MEMBERS AS WELL. WE SUPPORT
THREE OF THE LARGER COMMUNITY
CHOICE AGGREGATORS AND A NUMBER
OF WATER DISTRICTS WITH THEIR,
UH, GENERATION. NEXT SIDE,
PLEASE. SO UH, LOOKING AT THE
AGENDA OF THE HEARING I. I
TITLED THIS ONE FINDING FOCUS
AND FINDING FOCUS FOR ME. UM
THOSE WERE THE PLANNERS AND THE
AGENCIES. I HAVE THE
RESPONSIBILITY OF A UTILITY AND
KEEPING THE LIGHTS ON IN THE
COMMUNITIES AND BUILDING THE
SYSTEMS THAT ARE NECESSARY. SO
WHAT IS CURRENTLY FROM MY
PERSPECTIVE, OUR GREATEST
LIABILITY AND RISK IT REALLY
COMES DOWN TO WILDFIRES AND
CLIMATE DISASTERS. UM THEY ARE
DEVASTATING OUR UTILITIES, THEY
ARE IMPACTING THE AFFORDABILITY
TO OUR CUSTOMERS, AND I'LL TOUCH
A LITTLE BIT MORE ON THAT, UH
AND SPEAK TO IT. AND SO THE
OTHER IS HOW DO WE AND WE COME
TOGETHER AS PU S¼? HOW DO WE
KEEP THE LIGHTS ON FOR OUR
CUSTOMERS IN THE SHORT TERM, AND
THAT'S REALLY IN THE NEXT COUPLE
OF YEARS. THE TRANSITIONAL
PERIOD I THINK IS THE CHAIR
SPOKE TO THAT. HOW ARE WE GONNA
GET TO THAT? THAT 2030 OR IS
THERE A TRUE PLAN IN PLACE AND
THEN THE LONGER TERM UP TO 2045
I? I WILL TOUCH A LITTLE BIT
MORE ON THIS, BUT REALLY IN THAT
SHORT TERM. UH WE HAVE GRIDLOCK
WITH THE TRANSMISSION
INTERCONNECTION WE ARE ISSUING
IN THE P Ó U COMMUNITY. RFP S¼
WERE NOT REALLY RECEIVING MANY
PROPOSALS OUT THERE. SO OUR
FOCUS RIGHT NOW IS WHAT CAN WE
BUILD WITHIN OUR OWN COMMUNITIES
THAT WE CONTROL? THE
INTERCONNECTION? UM SO ASSEMBLY
MEMBER WOULD YOU KNOW WE WORKED
ON, UH, WITHIN YOUR YOUR WATER
TREATMENT FACILITY, A FLOATING
SOLAR. IT'S AN AMAZING PROJECT.
IT NOW SERVES ABOUT 8% OF HIS
COMMUNITY'S POWER NEEDS. SO
WE'RE FOCUSED WITH OUR OUR
MUNICIPALITIES TO FIND. WHERE DO
WE HAVE AIRPORT PROPERTY? WHERE
DO WE HAVE LIBRARIES, POLICE
DEPARTMENTS. WE NOW HAVE ACCESS
THROUGH FEDERAL DIRECT PAY
PROGRAMS TO HAVE AN EQUIVALENT
TAX BENEFIT, AND WE CAN BUILD
OUR OWN. SO OUR BIGGEST ISSUE
RIGHT NOW IS BREAKING DOWN SOME
OF THOSE BARRIERS THAT PREVENTS
US FROM QUICKLY DEPLOYING THOSE
TYPES OF PROJECTS. BUT THAT'S
WHAT WE SEE IN THE NEAR TERM AND
NOT WAIT FOR THE TRANSMISSION
INTERCONNECTION QUEUE AT THE
CALAIS SO IN THE TRANSITION
PERIOD, THOUGH WE NEED TO BREAK
THROUGH SOME OF THAT
INTERCONNECTION PROCESS. WE NEED
TO ENSURE THAT WE HAVE THE
TRANSMISSION PROJECTS BEING
BUILT, UH, TO THE RIGHT
LOCATIONS, BUT OUR CONCERN IN
THAT TRANSITION PERIOD TIME
FRAME IS, YOU KNOW, WE JUST
AGREED TO EXTEND THE LIFE OF
DIABLO CANYON FOR ANOTHER FIVE
YEARS AND FIVE YEARS IS GONNA BE
UP IN THAT PERIOD OF TIME, AND
WE REALLY SHOULD BE TALKING
TODAY ABOUT THE ADDITIONAL FIVE
YEARS OF DIABLO CANYON. WE'RE
SEEING BIASES IN THE MARKET
TODAY WHEN WE'RE LOOKING AT
PRODUCTS TO BUY BEYOND THE FIVE
YEAR WINDOW, THEIR PRICING THEM
RECOGNIZING THE DIABLO CANON
PROBABLY WON'T BE AROUND. WE'RE
GONNA PAY MORE TODAY IN ORDER TO
BUY THOSE PRODUCTS. BUT IF WE
COULD COME TO AN AGREEMENT AND
RECOGNIZE THE NEED TO GIVE US
MORE RUNWAY, DIABLO CANYON NEEDS
TO BE EXTENDED. IN ADDITIONAL
FIVE YEARS BEYOND THE FIVE YEARS
WE'VE AGREED TO LONG TERM UM
AGAIN. WE HAVE A LOT OF IDEAS IN
THE P Ó U COMMUNITIES WERE
HOPING TO BUILD MANY OF OUR OWN
PROJECTS, BUT AS WELL, UH, WE
WILL PROCURE PROJECTS AS
NECESSARY. THE ASSUMPTIONS WE
MAKE YOU YOU HEARD THAT FROM THE
REGULATORS AND THE PLANNING
ENTITIES. THERE'S A LOT
DIFFERENT ISSUES THAT WE HAVE TO
CONSIDER IN DEVELOPING ALL OF
OUR OWN PLANTS. I'M NOT GOING TO
GO INTO DETAIL, BUT WE COULD
CERTAINLY TALK THROUGH EACH OF
THOSE THEY MAKE. UM THE PROCESS
VERY DIFFICULT FOR US. NEXT
SLIDE, PLEASE. UH THIS SLIDE
REALLY JUST SPEAKS TO THE
CALIFORNIA WB FIRE IMPACTS. UH
YOU KNOW, WE CONTINUE TO USE A
LOT OF OUR RESOURCES. THAT'S
FINANCIAL. THAT'S LABOR ON
EDUCATING OUR COMMUNITIES,
WILDFIRE MITIGATION EFFORTS TO
HARDEN OUR FACILITIES. UM TO DO
A NUMBER OF THINGS RELATED TO
PREVENTION THERE WERE WERE
ACTIVELY SPENDING MONEY ON
DETECTION AND THEN RESPONSE AND
RECOVERY. IT'S CONSUMING A LOT
OF RESOURCES. IT. WE'RE SEEING
THE BENEFITS OF THAT. BUT
CALIFORNIA STILL IS HAVING
WILDFIRES. THERE'S BEEN A NUMBER
OF NATIONAL WILDFIRES. IT REALLY
REINFORCES THE IMPORTANCE OF
THAT WORK AND THE EFFORT. BUT WE
ALL REALLY NEED TO LOOK HARD AT
THE COST IMPACTS BECAUSE THIS IS
DIRECTLY IMPACTING THE COST TO
OUR RATEPAYERS AND GOING FORWARD
. UM, THE LIABILITY RISK. IS.
PROBABLY ARE LEADING THREAT TO
OUR INDUSTRY AND ONE OF THE MOST
SIGNIFICANT IMPACTS TO THOSE
COSTS AND CALIFORNIA AND OTHER
STATES AROUND US, UM, CONTINUE
TO LOOK AT NEW WAYS OF DOING IT,
BUT WE'RE IT'S NOT JUST OUR
HOMEOWNERS THAT ARE UNABLE TO
INSURE THEIR HOMES, ELECTRIC
UTILITIES AND THE PO U S¼ ARE
UNABLE TO ENSURE OUR ELECTRIC
FACILITIES AND OUR TRANSMISSION
LINES. POU ARE NOT PART OF A B
1054. THAT'S THAT WILDFIRE
LIABILITY BACKSTOP FUND THAT'S
AVAILABLE TO THE INVESTOR OWNED.
WE HAVE NOTHING EQUIVALENT AT
THIS STAGE, AND WE'RE UNABLE TO
FIND INSURANCE OR AFFORDABLE
INSURANCE. AND THAT GETS TO AS
WE LOOK TO INVEST IN NEW
TRANSMISSION. WE CHALLENGED ONE
BECAUSE WE'RE UNABLE TO GET, UH
REASONABLE. LOANS TO BUILD NEW
ASSETS, BUT WE'RE ALSO UNABLE TO
ENSURE THOSE ASSETS, SO IT JUST
ADDS TO OUR LIABILITY RISK GOING
FORWARD. SO IF WE REALLY ARE
INTERESTED IN BUILDING A LOT
MORE TRANSMISSION WE NEED TO
HAVE, UM SOMETHING ADDRESSED
HERE REGARDING SOME OF THE
LIABILITY. NEXT SLIDE, PLEASE.
SO AS THE AGENCIES WERE ABLE TO
SHOW, UH, THE INTEGRATED
RESOURCE PLANNING EFFORTS. UM
THIS IS AN EXAMPLE OF N èC P.
A. WE HAVE AN INTERAGENCY. WE
TAKE ALL OF OUR MEMBERS.
TOGETHER WE PUT TOGETHER A
RESOURCE PLAN OF WHAT WOULD BE
ALL OF THEIR NEEDS BASED ON THE
GROWTH FORECASTS THAT WE HAVE.
WHAT ARE THE TYPES OF RESOURCES
WHETHER IT'S A WIND SOLAR, WHERE
IT SHOULD BE FROM GEOTHERMAL OR
IN OUR CASE, HYDROGEN AND WHEN
DO WE NEED IT? WHICH YEAR DO WE
NEED IT? AND HOW ARE WE GOING TO
GET THERE? SO WE'VE BEEN WORKING
THROUGH THIS PROCESS WITH ALL OF
OUR MEMBERS AND YOU CAN SEE
THERE. UM AGAIN BECAUSE OF THE
LACK OF INTERCONNECTION QUEUING
AVAILABLE. UM, WE'RE FOCUSED AT
THE MOMENT ON ONES THAT WE CAN
MANAGE OURSELVES WITHIN OUR OWN
SERVICE TERRITORIES. UH, BUT ALL
OF IT DOES REQUIRE A LOT OF NEW
TRANSMISSION AND THE OTHER THING
THAT WASN'T DISCUSSED.
DISTRIBUTION UPGRADES, SO.
WITHIN OUR MEMBER COMMUNITIES.
WE HAVE HUNDREDS OF MILLIONS OF
DOLLARS THAT HAVE TO BE SPENT ON
UPGRADING THE WIRES TO
INDIVIDUAL HOMES TO THE
BUSINESSES IN OUR COMMUNITIES,
UH, TO ACCOMMODATE ALL THE
GROWTH THAT WE'RE SEEING IN BOTH
THE LOAD FROM ELECTRIFYING
TRANSPORTATION BUT ELECTRIFYING
THE BUILDING ENVELOPES AS WELL.
SO THAT'S COMPETING AGAINST THE
SAME RESOURCES IN DOLLARS ON THE
EXTERNAL BUILD OF TRANSMISSION
AND RENEWABLES. NEXT SLIDE. I
JUST WANTED TO TAKE A MINUTE AND
TOUCH ON HYDROGEN BECAUSE IT
REALLY WASN'T DISCUSSED MUCH ON
THE PREVIOUS PANEL. SO N èC P
A OWNS AND OPERATES THE LODI
ENERGY CENTER ALONG THE
INTERSTATE OF, UM, FIVE CORRIDOR
, UH, WITHIN THE CITY OF LODI.
THERE'S A CURRENTLY AT THE UPPER
PART OF THAT PICTURE THERE SHOWS
THE EXISTING PLANT WITH THE
RECLAMATION PONDS. WASTEWATER
PONDS FOR THE CITY OF LODI WERE
PROPOSING TO SOLD OUT WERE PART
OF THE ARCHES PROCESS OF
HYDROGEN HUB. SO WE ARE
PROPOSING TO BUILD OUT THIS
FIELD OF ELECTROLYZERS, UH,
WHERE WE'LL TAKE OUR EXCESS
RENEWABLES WILL PRODUCE GREEN
HYDROGEN WILL STORE THAT, UH, ON
THE PROPERTY. NEXT SLIDE,
PLEASE. UH, WE'RE FORTUNATE AT
THAT PROJECT BECAUSE WE HAVE
EXCESS WATER FROM THE WASTE
WATER. UH, TO UTILIZE WE'RE NOT
USING POTABLE WATER. WE HAVE A
VERY ACTIVE IBW, UH, WORKFORCE,
AND WE CURRENTLY HAVE INSTALLED
THE TURBINE CAPABLE OF A 45%
BLEND WITH HYDROGEN. THE
PROJECTS TRANSMISSION CONNECTED
AND THIS IS WHERE WE NEED TO. AS
WE LOOK AT THE PLANNING CYCLE WE
NEED TO LOOK AT. WHERE DO WE
HAVE EXISTING POWER PLANTS,
EXISTING RESOURCES AND HOW DO WE
REPURPOSE THOSE FACILITIES?
BECAUSE THE TRANSMISSION IS
ALREADY THERE? WE'RE NEAR THE
LOAD CENTERS INSTEAD OF BUILDING
ALL NEW FACILITIES. HOW CAN WE
USE THAT? UH, TO HELP MEET OUR
FUTURE NEEDS, AND THIS PROJECT
IS GOING TO BE ONE OF THOSE
PROJECTS THAT'S GOING TO BE ABLE
TO DEMONSTRATE. HOW DO WE GET TO
ZERO EMISSION, BUT WE'RE GOING
TO TAKE IT FROM A LARGE POWER
PLANT AND BE ABLE TO USE THE
EXCESS CURTAILED RENEWABLES AND
PRODUCE THAT HYDROGEN. THIS
PICTURE ALSO SHOWS THAT ACROSS
THE FREEWAY FROM US, WE'RE
WORKING JOINTLY WITH PACIFIC GAS
AND ELECTRIC COMPANY. THEY'RE
GONNA BUILD AN R AND Dð FACILITY
TO LOOK AT HOW THEIR SYSTEM
COULD HANDLE. UM HYDROGEN INTO
THE FUTURE WILL PROVIDE THEM
HYDROGEN, THEY'LL BE BLENDING IT
. THEY'LL BE TESTING OUT VARIOUS
PIPES AND SIZES AND UM, WE THINK
THAT WILL ADD A LOT OF VALUE TO
AS WE KNOW WE'RE GONNA NEED TO
USE THE NATURAL GAS
INFRASTRUCTURE FOR SOME TIME TO
COME. HOW MUCH HYDROGEN CAN WE
INJECT WITHIN IT AND DO THAT
SAFELY NEXT SLIDE? JUST ANOTHER
PICTORIAL. A CLOSE UP. THE
PROJECT IS ALSO, UM. UH, GEARED
TO SUPPORT TRANSPORTATION
INDUSTRY. WE BELIEVE WE'LL BE
ABLE TO MAKE EXCESS HYDROGEN
GREEN HYDROGEN MAKE IT AVAILABLE
FOR A LARGE SCALE TRUCKING ALONG
THE I FIVE AND I 99 CORRIDORS TO
REDUCE SOME OF THE EMISSION
FOOTPRINT FROM THE HEAVY DUTY
TRUCKING AND THEN ONE OF OUR
MEMBERS IS THE PORT OF OAKLAND
AND THE AIRPORT OF OAKLAND AND
WILL BE PRODUCING HYDROGEN HERE
TO SUPPORT SOME OF THE PORT
ACTIVITIES DOWN IN OAKLAND. AND
LAST SLIDE, PLEASE. LAST SLIDE
THAT I JUST WANTED TO TOUCH ON.
IT'S ANOTHER EFFORT THAT WASN'T
SHARED MUCH, UH, PREVIOUSLY, BUT
I AM PART OF THE WEST WIDE
PATHWAYS INITIATIVE. I'M ON THE
COMMITTEE, THE LAUNCH COMMITTEE
FOR THAT, AND IT'S AN EFFORT TO
SEE IS THERE A WAY WE CAN GET TO
THIS REGIONAL TRANSMISSION
PLANNING AND SHARING? UH, THE
STATE OF CALIFORNIA HAS MADE A
NUMBER OF EFFORTS WITH OTHER
STATES AROUND US OVER THE LAST
NUMBER OF YEARS. I'VE BEEN PART
OF THOSE EFFORTS AND THEY'VE NOT
LET US FORWARD YET, UH, BUT THE
CALAIS SO DOES A WONDERFUL JOB
IN THE REAL TIME MARKET. THEY'RE
WORKING HARD ON THE DAY AHEAD
MARKET. BUT HOW DO WE GET THE
STATES WORKING TOGETHER AROUND
US? BECAUSE WE KNOW THAT'S GONNA
LOWER OUR COST. IT'S GONNA MAKE
OUR PROCESS QUITE A LOT MORE
EFFICIENT. SO WHAT YOU SEE
BEFORE YOU IS, UH, EIGHT OF OUR
EVALUATION CRITERIA THAT WE'RE
USING, AS WE LOOK AT THE OPTIONS
TO GET THERE. BUT I JUST WANT TO
LET THIS UM COMMITTEE NÓ. THE
EFFORT WE HAVE IS HOW DO WE KEEP
CALAIS Ó AS THE BALANCING
AUTHORITY FOR CALIFORNIA AND
ALLOW IT TO BE INDEPENDENT FOR
CALIFORNIA, BUT GIVE IT AN
OPPORTUNITY TO JOIN. ANOTHER
LARGER REGIONAL ORGANIZATION
THAT, UM THEY COULD BECOME PART
OF AND DO, UH, MORE ACTIVE
TRADING THROUGHOUT THE WEST.
THEY MIGHT EVEN BE THE ENTITY
THAT WOULD BE CONTRACTED TO DO
THAT WORK, BUT CALIFORNIA WOULD
RETAIN ITS CONTROL OVER THE
CALAIS. SO THAT'S KIND OF BEEN
THAT'S BEEN FUNDAMENTAL FOR THE
GROUP. BUT AS YOU CAN SEE, WE'RE
REALLY TRYING TO RECOGNIZE HERE
THAT WE NEED TO RESPECT THE
STATE AUTHORITY FOR ALL THE
STATES THAT MIGHT WANT TO
PARTICIPATE ALL THE UTIL THAT
MIGHT WANT TO PARTICIPATE, AND
I'VE BEEN VERY IMPRESSED WITH
THE LAUNCH COMMITTEE TEAM
MEMBERS AS WE CONTINUE TO WORK
THROUGH THIS AND HOPEFULLY WE'LL
BE COMING BACK TO THIS BODY IN
THE FUTURE WITH, UM POTENTIALLY
LEGISLATION THAT MIGHT BE NEEDED
OR MIGHT NOT BE NEEDED DEPENDING
ON THE OUTCOME OF OUR EFFORTS,
AND WITH THAT, I WILL CLOSE
THANK YOU, MR HOWARD. UH, NEXT,
WE'LL HEAR FROM SHINGI MENON,
WHO IS THE VICE PRESIDENT OF
ASSET MANAGEMENT AND WILDFIRE
SAFETY FOR SOUTHERN CALIFORNIA
EDISON WELCOME. THANK YOU. CHAIR
AND MEMBERS OF THE COMMITTEE. UM
AS YOU SAID, MY NAME IS SHINJI
MENON. I AM ACTUALLY HAVE OH, I
HAVE A SLIGHTLY EXPANDED ROLE
RIGHT NOW I'M THE VÆ P OF ASSET
STRATEGY AND PLANNING FOR
SOUTHERN CALIFORNIA EDISON. AND,
UM TO PUT IT BLUNTLY. WE THINK
IT'S TIME TO REIMAGINE THE
ELECTRIC SYSTEM PLANNING IN
CALIFORNIA. WE HAVE HAD A
PLANNING PROCESS IN THIS STATE
THAT HAS SERVED US WELL IN THE
PAST, BUT IT NEEDS TO BE
BOLSTERED TO MEET THE CHALLENGES
AHEAD. WE MUST TAKE A MORE
INTEGRATED VIEW. INTEGRATED
ACROSS DOMAINS, INCLUDING
GENERATION TRANSMISSION,
DISTRIBUTION AND LOCAL
RESOURCES. AND ALSO INTEGRATED
ACROSS OBJECTIVES, INCLUDING
AFFORDABILITY, RELIABILITY, LOAD
GROWTH AND CLIMATE ADAPTATION,
AS THESE ARE INTERRELATED. AT
THE TRANSMISSION LEVEL,
CALIFORNIA HAS BEGUN TO ENHANCE
ITS SYSTEM PLANNING AS THE PANEL
BEFORE WAS TALKING ABOUT THROUGH
INCREASED COLLABORATION AROUND
ZONAL PLANNING AMONG KAISER,
CPUC èC AND èC èC, STATE
AGENCIES AND SYSTEM OPERATORS
SHOULD BUILD ON THESE EFFORTS BY
INSTITUTING KAISER
INTERCONNECTION REFORMS THAT
PRIORITIZE GENERATOR
APPLICATIONS DEMONSTRATING
COMMERCIAL READINESS. NEIL
TOUCHED ON THIS GENERATION
INTERCONNECTION CHALLENGES HAVE
INCREASED AS MORE LARGE. GAEL,
SOLAR, WIND AND STORAGE
DEVELOPMENTS BY TO CONNECT TO
BULK ELECTRIC FACILITIES. THE
VOLUME OF INTERCONNECTION
APPLICATIONS HAS MORE THAN
TRIPLED IN RECENT YEARS HAVING A
COMMERCIAL VIABILITY SCREEN UP
FRONT REDUCES UNNECESSARY
EFFORTS FOR ALREADY CONSTRAINED
RESOURCES AND REDUCES TIME TO
INTERCONNECT VIABLE PROJECTS.
STATE AGENCIES SHOULD ALSO
EXPAND UPON INTERAGENCY ZONAL
PLANNING EFFORTS TO MATCH CLEAN
GENERATION DEVELOPMENT IN
GEOGRAPHIC AREAS WITH EXISTING
OR PLANNED TRANSMISSION CAPACITY
. THIS WILL SIMPLIFY
INTERCONNECTION AND TRANSMISSION
, UPGRADE STUDIES AND PROMOTE
TIMELY TRANSMISSION. BUILD OUT.
AS. MY FELLOW PANELISTS
MENTIONED CALIFORNIA SHOULD LOOK
BEYOND KO'S BORDERS AND PLAN
MORE CLOSELY WITH NEIGHBORING
STATES, THE CREATION OF A
REGIONAL TRANSMISSION
ORGANIZATION WOULD GIVE ALL
PARTICIPATING WESTERN REGIONS
ACCESS TO AN EXPANDED SET OF
CLEAN RESOURCES TO SERVE POWER
NEEDS DURING EXTREME WEATHER, OR
GRID CONSTRAINED EVENTS.
REGIONALIZATION WOULD ALSO
CREATE A LARGER, MORE EFFICIENT
MARKET THAT WOULD UNLOCK
ADDITIONAL AFFORDABLE SOURCES OF
ELECTRICITY. I WOULD ALSO LIKE
TO TALK A LITTLE BIT ABOUT THE
DISTRIBUTION LEVEL LOAD GROWTH
IS ACCELERATING FASTER THAN IT
HAS IN DECADES. THE RESIDENTIAL
AND COMMERCIAL DEVELOPMENT
ONGOING IN THE INLAND EMPIRE IN
SOUTHERN CALIFORNIA IS JUST ONE
EXAMPLE. THE SENATE BILL BILL
FOR 10 PROVIDES A PATHWAY FOR
SUB TO SUPPLEMENT èC èC S¼ I
FORECAST WITH KNOWN LOAD IN
UNDERTAKING DISTRIBUTION
UPGRADES BY THE TIME LOAD IS
KNOWN, IT IS OFTEN TOO LATE. FOR
EXAMPLE, HOUSING DEVELOPMENTS
HAVE TENTATIVE PLANS READY 18
MONTHS AHEAD OF WANTING TO
ENERGIZE THAT IS NOT SUFFICIENT
TIME FOR UTILITIES TO RUN LOAD
ANALYSIS, DEVELOP SOLUTIONS
DESIGN PERMIT AND BUILD
INFRASTRUCTURE. AND OFTEN
CERTAIN AREAS ARE SO CONGESTED.
THEY ARE TRIGGERING HIGH VOLTAGE
UPGRADES, WHICH WE ALL KNOW
TAKES HAS MUCH LONGER LEAD TIMES
. WE NEED TO BROADEN THE
DEFINITION OF WHAT CONSTITUTES
KNOWN LOAD AND BUILD PROACTIVELY
SO THAT THE INFRASTRUCTURE IS
READY BY THE TIME FINAL REQUESTS
COME FROM CUSTOMERS. WE ARE ALL
TRYING TO BALANCE BUILDING TOO
MUCH TOO EARLY AND TOO LITTLE
TOO LATE. BUT IF YOU AGREE ON
THE END 0.5 10 OR 20 YEARS OUT,
WE KNOW THE CAPACITY IS NOT
GOING TO GO TO WASTE. IN FACT,
IT WILL SPUR NECESSARY
ELECTRIFICATION AND ECONOMIC
GROWTH INSTEAD OF BEING A
POTENTIAL BARRIER. WE ALSO NEED
TO DEPLOY NEW TECHNOLOGIES AND
UTILIZE DISTRIBUTED ENERGY
RESOURCES IN DIFFERENT WAYS THAT
WILL INCREASE THE UTILIZATION OF
EXISTING INFRASTRUCTURE MANAGE
LOAD BY REDUCING AND SHIFTING
USAGE AND UPGRADE THE GRID IN
WAYS THAT HELPS US BUILD FASTER
AND CHEAPER. GRID ENHANCING
TECHNOLOGIES ARE JUST ONE
EXAMPLE. IN THE TRANSMISSION
DOMAIN. THERE ARE MANY MORE FOR
DISTRIBUTION FACILITIES. SOME OF
THESE TECHNOLOGIES ARE NOT
MATURE YET, AND INNOVATIVE
PARTNERSHIPS ARE NECESSARY.
ACCELERATE TECHNOLOGY
DEVELOPMENT AND DEPLOYMENT. SO
WHAT ARE WE DOING? I'LL SPEAK
FOR SOUTHERN CALIFORNIA EDISON
HERE. WE ARE DILIGENTLY REFINING
LOAD FORECASTS THAT ALIGN WITH
CARBS POLICIES AND THE STATE'S
GOALS AND WE REGULARLY
COLLABORATE WITH THE èC U èC
ON THIS. WE ARE ACTIVELY WORKING
WITH CUSTOMER GROUPS SUCH AS THE
BUILDING INDUSTRY ASSOCIATION,
FLEET OWNERS AND CHARGING
FACILITY DEVELOPERS TO COMPILE
BETTER LONG TERM FORECASTS ON
WHEN WHERE AND HOW MUCH LOAD IS
EXPECTED. WE ARE DEVELOPING A
ROAD MAP FOR RE ARCHITECTING THE
GRID WITH NEW CONFIGURATIONS AND
TECHNOLOGIES SO THAT WE CAN
DEPLOY INNOVATIVE INTEGRATED
SOLUTIONS THAT MITIGATE CAP
CAPACITY, RELIABILITY AND
RESILIENCE RISK AND THE
OBJECTIVE IS TO MOVE FASTER AND
REDUCE OVERALL COSTS. WE ARE
ALSO LOOKING AT CREATIVE BRIDGE
SOLUTIONS THAT CAN HELP US TIDE
OVER THE IMMEDIATE NEEDS, EVEN
IF PARTIALLY TILL THE LONG TERM
SOLUTIONS CAN BE PUT IN PLACE.
IN ADDRESSING OUR COMMON
ADVERSARY. NAMELY THE CLIMATE
CRISIS. TIME IS OF THE ESSENCE,
AS IS AFFORDABILITY. WE
COLLECTIVELY HAVE A LOT OF WORK
TO DO. AND IF YOU STAY ON THE
CURRENT PATH, EVEN IF WE HAD
INFINITE LABOR, RESOURCES AND
MONEY, WHICH WE DO NOT, WE WILL
NOT BE ABLE TO DEPLOY ALL THE
NECESSARY UPDATES IN TIME. I
WILL RETURN TO THE THEME I
STARTED WITH A HOLISTIC SYSTEM
WIDE VIEW OF PLANNING ACROSS
DOMAINS AND OBJECTIVES IS NEEDED
TO OPTIMIZE INVESTMENTS AND
IMPROVE EFFICIENCY. I WANT TO
END ON AFFORDABILITY. SOLUTIONS
FOR ACHIEVING A NET ZERO ECONOMY
IN CALIFORNIA WILL BE DURABLE
ONLY IF THEY ARE AFFORDABLE AND
NÓ CALIFORNIAN IS LEFT BEHIND IN
REALIZING THE BENEFITS OF
DECARBONISATION AND
ELECTRIFICATION. IT IS CRITICAL
THAT WE ARE CLEAR EYED ON WHAT
IS NEEDED TRANSFORMATIONAL
INVESTMENTS IN ELECTRICAL
INFRASTRUCTURE UPGRADES ARE
NECESSARY TO MEET THE STATE'S
CLEAN ENERGY GOALS THAT ARE THE
LAW OF THE LAND NOW. HOWEVER
WITH PROACTIVE, INTEGRATED
PLANNING, WE CAN REDUCE THE
COSTS OF NECESSARY BUILD OUT. WE
CAN ALSO ENSURE THAT THESE
INVESTMENTS CREATE SIGNIFICANT
ECONOMIC DEVELOPMENT IN OUR
COMMUNITIES. IN ADDITION TO
REDUCING AIR POLLUTION AND
ADDRESSING CLIMATE RISKS. WHILE
ADDITIONAL ELECTRICITY USAGE
WILL INCREASE ELECTRIC BILLS
SAVINGS FROM REDUCED OR
ELIMINATED. FOSSIL FUEL EXPENSES
WILL MORE THAN OFFSET THAT
INCREASE FOR HOUSEHOLDS THAT
ADOPT ELECTRIFIED TECHNOLOGIES
RELATIVE TO WHAT AN S¼ HOUSEHOLD
PAYS TODAY. COMBINED ENERGY
EXPENSES DECREASES BY ABOUT 40%
BY 2045. AND AN AVERAGE
HOUSEHOLD IS EXPECTED TO SEE
MORE THAN 10% SAVINGS BY EARLY
2030. SO I'LL END WITH WITH
HOLISTIC AND CAREFUL PLANNING.
WE CAN DESIGN AN ELECTRIC SYSTEM
THAT MEETS THE LEGISLATIVE GOALS
OF CARBON NEUTRALITY AND WITH
CAREFUL PLANNING, WE CAN ALSO DO
IT AFFORDABLY AND I LOOK FORWARD
TO YOUR QUESTIONS. THANK YOU.
THANK YOU SO MUCH, MS. BEAN, UH
AND NEXT, WE ARE TURNING, UH TO
OUR SCREEN AND WE WE'LL HEAR
FROM MICHAEL COLVIN, WHO'S THE
DIRECTOR OF THE CALIFORNIA
ENERGY PROGRAM FOR THE
ENVIRONMENTAL DEFENSE FUND AND
ONE OF THE AUTHORS OF THE JOINT
2022 REPORT BY E Dð F AND THE
CLEAN AIR TASK FORCE CALLED
GROWING THE GRID A PLAN TO
ACCELERATE CALIFORNIA'S CLEAN
ENERGY TRANSITION. WELCOME. UH,
THANK YOU SO MUCH FOR HAVING ME
AND FIRST OFF. JUST WANTED TO
THANK YOU FOR ALLOWING ME TO
PARTICIPATE REMOTELY. THIS WAS
A, UH, AN UNAVOIDABLE PLAY WITH
MUCH BE IN THE ROOM SO VERY GLAD
TO BE ABLE TO DO THIS REMOTELY.
THANK YOU FOR YOU AND YOUR TEAM
FOR LETTING THAT HAPPEN. UM I
HAVE A FEW SLIDES THAT I WANTED
TO SHARE. AND I ALSO WANTED TO,
UH UM, ADDRESS SOME OF THE
COMMENTS THAT WERE MADE ON THE
FIRST PANEL IN ON SOME OF THE
OTHERS AS WELL. SO IF YOU'LL
INDULGE ME, I WILL SHARE SOME
SLIDES. AND THEN AT THE END OF
MY PRESENTATION, JUST DO ONE OR
TWO EDITORIAL COMMENTS AS WELL.
UM, SO WITH THAT I'M GOING TO DO
MY BEST TO SHARE MY SCREEN
REMOTELY. HOPEFULLY, YOU ALL ARE
SEEING THIS. YES, WE ARE
SUCCESS. RIGHT. FANTASTIC. THANK
YOU SO MUCH. AS VICE CHAIR GUN
TO, UH, ALLUDED TO SO I'M NOT
GOING TO GO OVER THESE NUMBERS
IN TOO MUCH DETAIL, BUT OUR
CLEAN ENERGY AGENDA DOES REQUIRE
UNPRECEDENTED ACTION. WELL I
THINK THE FIRST PANEL SPOKE
REALLY WELL ABOUT THE GOALS. THE
REPORT, UH, THAT THE CHAIR
MENTIONED THAT WE DID IN
PARTNERSHIP WITH CLEAN AIR TASK
FORCE WAS REALLY ABOUT
IMPLEMENTATION. AND. WHEN WE
TALK ABOUT THE NEED TO TRY AND
GROW THE GRID AND THREE TO FOUR
TIMES IN THE NEXT 20 YEARS. WE
ARE TALKING ABOUT A CERTAIN
AMOUNT THAT HAS TO BE BUILT
EVERY SINGLE YEAR. AND THE ADAGE
THAT I THINK THE CHAIR WAS
REFERRING TO IS YOU CAN'T MANAGE
WHAT YOU DON'T MEASURE AND WE'RE
NOT MEASURING IN A VERY
SYSTEMATIC WAY RIGHT NOW. AND SO
WHEN WE SAY THAT TRANSMISSION
CAPACITY NEEDS TO TRIPLE, I
THINK ONE OF THE THINGS TO TAKE
HOME FROM ALL OF THIS IS WE CAN
DO THIS AFFORDABLY AND WE CAN DO
THIS RELIABLY, AND WE CAN DO IT
FAST. BUT IN ORDER TO DO
SOMETHING FAST AND AFFORDABLE
AND RELIABLY, WE NEED TO
COORDINATE AND WE NEED TO
COORDINATE BETTER THAN WHAT
WE'RE DOING RIGHT NOW. AND SO
THERE ARE SOME HEADWINDS THAT
ARE OUT THERE THAT WE NEED TO BE
AWARE OF, AS WE'RE TRYING TO
FIGURE OUT HOW TO DO THIS
MANAGEMENT BETTER. AS WITH ANY,
UH, TYPE OF DEPLOYMENT, YOU TRY
AND DO DO THINGS. AND SO RIGHT
NOW, WE ARE AT THIS POINT. UH WE
HAVE DONE SOME REAL SUCCESSES
AND WE'VE HAD THE ACCESS TO GOOD
PROJECT SITES. WE'VE BEEN ABLE
TO TAKE ADVANTAGE OF FALLING
HARDWARE COSTS. WE HAVE HAD SOME
EASY ACCESS TO TRANSMISSION IN
SOME PUBLIC SUPPORT. BUT OVER
TIME THAT'S GOING TO CHANGE
WHERE THERE'S GOING TO BE
INCREASING IN COMPETING DEMANDS
FOR LAND. AGAVE NOTWITHSTANDING,
THERE'S GONNA BE LOTS OF
DIFFERENT NEEDS FOR OUT THERE.
WE HAVE TO FIGURE OUT WHAT IS
APPROPRIATE FOR TRANSMISSION.
WHAT IS APPROPRIATE FOR LAND
DEVELOPMENT? WHAT'S APPROPRIATE
FOR LOTS OF OTHER THINGS THAT
ARE OUT THERE? UM. AND WE ARE
GOING TO HAVE LESS ACCESS TO
TRANSMISSION. WE'RE GONNA HAVE
LESS ACCESS TO LANDOWNERS WHO
SAY YES, I'M WILLING TO DO THIS.
UM AND WE'RE ALREADY SEEING
INCREASING LOCAL ORDINANCES OUT
THERE SAYING, WELL, I DON'T WANT
SOLAR OR I DON'T WANT WIND OR I
DON'T WANT THIS. I HAVE A
PREFERRED SOLUTION AS WELL.
THINGS ARE JUST GONNA BECOME
MORE COMPLICATED. IN ADDITION,
THIS TEST FROM THE P èC STARTED
TALKING ABOUT THE TRANSMISSION
DEVELOPMENT TIMELINE AND THE TED
TEST FORCE THAT'S OUT THERE, AND
SHE'S SORT OF ALLUDED TO.
THERE'S A LOT OF HAND HOLDING
THAT'S REQUIRED. BUT EVEN WITH
THE HAND HOLDING TRANSMISSION
DEVELOPMENT JUST TAKES LONGER
THAN WE ANTICIPATE, AND THIS IS
A SLIDE THAT WE PUT TOGETHER TO
SEE THE ONLINE DATES OF WHEN WE
THINK SOMETHING IS GOING TO COME
ONLINE AND WHEN IT ACTUALLY
COMES ONLINE. TAKES LONGER THAN
YOU THINK. IN THOSE TIMELINES
TEND TO SLIP AND SO YOU REALLY
DO NEED, UH, NOT A PLAN FOR A
PLANE SAKE, BUT A DEPLOYMENT
PLAN TO BE ABLE TO POINT TO SAY
IF YOU TAKE THREE MORE MONTHS,
WHAT ARE THE SECONDARY EFFECTS
THAT ARE GOING TO HAPPEN? AND
THIS IS A CHART THAT REALLY KIND
OF KEEPS ME UP AT NIGHT BECAUSE
I WANNA THINK THROUGH. HOW DO WE
MAKE CERTAIN THAT THE TRAINS ARE
RUNNING ON TIME? THE LAST THING
IN TERMS OF PROBLEMS THAT I WANT
TO TALK ABOUT SOLUTIONS, BUT THE
LAST THING IN TERMS OF PROBLEMS,
UH, STANDING ON THE SHOULDER OF
SOME OF THE WORK THAT THE NATURE
CONSERVANCY HAS DONE AS WELL.
NOT ALL SUITABLE LAND IS
ACTUALLY GOING TO BE ABLE TO BE
DEVELOPED. THERE'S GONNA BE LOTS
OF COMPETING INTERESTS THAT ARE
OUT THERE. SO WE HAVE SOME LAND
THAT HAS BEEN IDENTIFIED FOR
CERTAIN REASONS. AND THEN WHEN
YOU ACTUALLY KIND OF GOT INTO IT
AND REALIZE, OK, CAN WE ACTUALLY
DO THIS? AND IT GETS A LOT
HARDER. ONE OF THE THINGS THAT
I'D LIKE TO COMMEND FROM THE
ISO'S 20 YEAR OUTLOOK IS THAT
IT'S REALLY TRYING TO SAY NÓ.
THIS IS WHAT WE THINK IT'S GOING
TO TAKE NOW. HOW DO WE INTEGRATE
THE LAND USE THAT'S GONNA BE
REQUIRED AND REALLY START DOING?
UH UM, YOU KNOW, NOT PICKING
WINNERS IN TERMS OF ACTUAL
INDIVIDUAL PROJECTS, BUT SAYING
YOU'RE GOING TO NEED SOMETHING
IN THIS AREA FOR THIS RESOURCE.
NOW LET'S GO AHEAD AND DEVELOP
AND IT'S REALLY TRYING TO
ADDRESS THIS POTENTIALLY SOON. B
VERSUS WE DEVELOP PO CONUNDRUM.
VICE CHAIR. GUNES SORT OF LED TO
THIS. UM AND I THINK, UH, HE HAD
HIS TRYING TO GO THROUGH IT. THE
CHAIR SORT OF IDENTIFIED THIS
NEED ALREADY OF WHO IS THE LEAD
WHO'S RESPONSIBLE, AND IT'S A
LITTLE BIT LIKE THE SPIDERMAN
MEME OF EVERYBODY'S POINTING TO
EACH OTHER. UM THERE'S A LOT OF
GREAT WORK HAPPENING OUT THERE.
I REALLY LIKE ALL OF THE EFFORTS
THAT ARE HAPPENING. I HAVE SO
MUCH RESPECT FOR EACH OF THE
INDIVIDUAL ORGANIZATIONS. BUT
THERE IS NÓ ONE TEAM RIGHT NOW
THAT IS SAYING YES, WE ARE ON
TIME OR NÓ. WE ALL NEED TO TAKE
THREE MORE MONTHS. BUT THIS
REALLY LEGITIMATE REASON AND IT
SORT OF DONE BY COMMITTEE. UH,
THERE'S NÓ ONE ENTITY THAT IS
OUT THERE. SO I BRIEFLY WANTED
TO GO THROUGH A FEW
RECOMMENDATIONS TO TRY AND
ADDRESS HOW WE CAN GO THROUGH
AND MAKE SOME OF THIS BETTER.
THE FIRST IS DEVELOP A
DEPLOYMENT PLAN AND THAT SAYS,
HERE'S THIS QUANTITY THE TIME
THE LOCATIONS THAT ARE OUT THERE
. WE'RE STARTING TO LEAN TOWARDS
THIS IN SOME OF OUR OUR OUR
PLANNING, BUT I THINK MORE CAN
BE DONE. THE SECOND IS THE CHAIR
SORT OF RECOGNIZE IN SOME OF HER
QUESTIONS DURING PANEL. ONE IS
THERE IS NÓ ONE LEAD AGENCY THAT
IS OUT THERE THAT MIGHT BE
APPROPRIATE TO HAVE HAPPEN. ONE
OF THE THINGS THAT WE DID WHEN
WE INTERVIEWED SEVERAL DOZEN
DIFFERENT DEVELOPERS WITH WHAT
THEY SAID THEY NEEDED TO KNOW
WHERE THEY WERE IN THE QUEUE.
THEY NEEDED TO KNOW WHERE THEY
WERE. IS THEIR PROJECT PART OF
THIS FACTORY OR NOT THE TASK
FORCES THAT ARE OUT THERE WAS
ALLUDED TO BY THE PUC, I THINK
ARE HELPFUL, BUT THEY ARE NOT
PARTICULARLY PUBLIC. UM IT'S
REALLY HARD TO BE ABLE TO SEE
HERE'S WHAT IT'S GONNA TAKE TO
ACTUALLY TRACK PROGRESS. AND
LAST, BUT CERTAINLY NOT ON THIS
SLIDE THAT I WANTED TO HIGHLIGHT
WAS THE NEED TO BE ABLE TO
ENGAGE WITH THE PUBLIC EARLY AND
OFTEN IS EXTREMELY IMPORTANT. SO
THAT WAY YOU DON'T GET THROUGH
THE END OF A PLANNING PROCESS
BEFORE YOU GET TO A LOCAL
COMMUNITY, AND THEY SAY, OH,
WE'RE NOT INTERESTED IN THIS.
WE'RE REALLY INTERESTED IN
SOMETHING ELSE INSTEAD AND
HAVING TO KIND OF GO BACK TO THE
BEGINNING. TRYING TO AVOID THAT
TABULA RASA IS REALLY CRITICAL.
UM THAT WAS THE END OF MY
PREPARED SLIDES. I DID IF YOU'LL
INDULGE ME WANTED TO TAKE JUST
ONE MOMENT. UH, TO UH, ADDRESS
JUST A COUPLE OF THINGS THAT
HAVE BEEN MENTIONED ALREADY. AT
FIRST IS. AS MR HOWARD
REFERENCED, UM. THE UH THERE IS
A REGIONAL EFFORT THAT IS
HAPPENING OUT THERE TO TRY AND
FIGURE OUT HOW CAN WE HELP?
BETTER CONNECT CALIFORNIA AND
THE REST OF THE WESTERN STATES?
THAT PROCESS IS ONGOING. UM
THERE IS A LAUNCH COMMITTEE
THAT'S OUT THERE. I'M ON THAT
LUNCH COMMITTEE AS WELL. SO IF
THERE ARE ANY QUESTIONS THAT THE
PANEL HAS TODAY, I'M HAPPY TO
TRY AND ADDRESS THAT, UM BUT IN
ORDER TO HELP CONTAIN THE
GENERATION AND TRANSMISSION
COSTS. A REGIONAL GRID IS ONE
VERY VIABLE OPTION. IT'S NOT THE
ONLY OPTION, BUT IT IS SOMETHING
THAT EVERY STUDY OUT THERE THAT
SAYS THIS IS A REALLY IMPORTANT
WAY TO HELP CONTAIN COST
OVERALL. AND THERE WAS ALSO A
QUESTION THAT WAS JUST ASKED ON
RESOURCE ADEQUACY, AND THE
PEOPLE SEE JUST ADOPTED A NEW
STANDARD FOR A ONE IN 10
EXPECTED LOSS OF LOAD, BUT THAT
IS FOR INTEGRATED RESOURCE
PLANNING AND THE WAY THAT WE
COUNT, THAT DOES NOT NECESSARILY
TRANSLATE TO HOW WE COUNT. UH
SAME THINGS IN RESOURCE ADEQUACY
. I ALSO NOTE THAT THE SAME G HÌ
G GOALS THAT WE HAVE REALLY
TRIED TO INTEGRATE INTO THE IRP
DON'T EXIST IN OUR CONTACTS. AND
SO I THINK THERE'S A LOT OF
SCENES IN BETWEEN THOSE TWO
TOPICS. UM, A LOT OF PARTIES
SUBMITTED COMMENTS, UH, AND ASK
FOR THERE TO BE A JOINT WORKSHOP
LAST YEAR. WE'RE STILL WAITING
FOR A NEW STAFF PROPOSAL. UM,
AND THAT'S SOMETHING THAT I
THINK THAT COULD HELP. UH, LAST,
UH, COMMENT, UH, WAS ASKED ON
TRANSMISSION PERMITTING, AND, UM
, QUITE FRANKLY, I THINK WE HAVE
BEEN MAKING SOME PROGRESS.
THERE'S MORE TO GO. UH 22
DIFFERENT PARTIES SUBMITTED A
JOINT SETTLEMENT. UH, AGREEMENT
AT THE END OF LAST YEAR. IT HAS
MISSED FIVE SORT OF SAID OH,
WELL, WE'RE WORKING ON A STAFF
PROPOSAL. SHE DIDN'T MENTION
THAT THERE WAS A SETTLEMENT
AGREEMENT, SORT OF PENDING TO
TRY TO HELP KICK START SOME OF
THESE THINGS. UH, THE èC
ADVOCATES OFFICE ALSO JUST
SUBMITTED ANOTHER PROPOSAL LAST
WEEK THAT WAS REALLY FOCUSING ON
JUST DISCO PROJECTS. I THINK
THERE'S A LOT MORE THAT CAN BE
DONE TO HELP STREAMLINE
PERMITTING. THERE'S SOME IDEAS
THAT ARE SITTING BEFORE THE PUC,
AND I'M HOPING THAT THERE'S
GONNA BE SOME PROMPT ACTION
THERE. UM WITH THAT I LOOK
FORWARD TO THE QUESTIONS, UH,
THAT THE MEMBERS MAY HAVE AT THE
END OF THE PANEL AND THANK YOU
SO MUCH FOR LETTING ME ADDRESS
YOU ALL TODAY REMOTELY. THANK
YOU, MR COLVIN. REALLY GLAD TO
HAVE YOU JOIN US, AND I KNOW
THERE'S QUESTIONS, BUT WE WILL
HEAR FROM OUR LAST, UH, PANELIST
BEFORE WE JUMP TO THOSE. SO UH,
OUR, UH, LAST, BUT CERTAINLY NOT
LEAST. PANELIST IS SCOTT UH,
FARRIS, WHO IS JOINING US, UH,
FROM E. Dð P RENEWABLES. THANKS
PEACH NORRIS AND OTHER
DISTINGUISHED MEMBERS OF THE
COMMITTEE. THANK YOU VERY MUCH
FOR THE OPPORTUNITY TO TESTIFY
TODAY AND THANK YOU FOR HANGING
IN THERE TO THE BITTER END. WE I
APPRECIATE IT. MY NAME IS SCOTT
FRIS, AND I AM THE DIRECTOR OF
STATE GOVERNMENT. RELATIONS FOR
RENEWABLES, ONE OF THE WORLD'S
LARGEST RENEWABLE POWER
DEVELOPERS WE DEVELOP ON AND
OFFSHORE WIND, DISTRIBUTIVE
GENERATION UTILITY SCALE STORE,
BATTERY STORAGE AND HYDROGEN
RELATED PROJECTS, UH, IN
CONJUNCTION WITH OUR JOINT
VENTURE PARTNER, N G THROUGH
THAT JOINED VENTURE CALLED OCEAN
WINDS. WE ARE ONE OF THE
LEASEHOLDERS DEVELOPING OFFSHORE
WIND OFF MORRO BAY. IN ADDITION
TO OUR MULTIPLE CALIFORNIA
PROJECTS ARE ALREADY IN
OPERATION OR UNDER CONSTRUCTION.
E Dð PR HAS PLANS TO DEVELOP AN
ADDITIONAL FIVE GIGAWATTS OF
LARGE SCALE SOLAR AND STORAGE
HERE IN THE GOLDEN STATE OVER
THE NEXT 2 TO 7 YEARS. SO WE
HAVE A VERY AMBITIOUS
ASPIRATIONS BECAUSE WE BELIEVE
CALIFORNIA IS A GREAT PLACE TO
DO BUSINESS. I WANT TO MAKE THE
POINT THAT THE INDEPENDENT POWER
PRODUCERS ARE A CRITICAL I WAS
GONNA SAY EXCLUSIVELY TA. BUT
RANDY REMINDED ME THAT WE'RE
ONLY PRIMARILY RESPONSIBLE FOR
DEVELOPING A PLANNING,
PERMITTING AND CONSTRUCTING THE
NEW CLEAN ENERGY PROJECTS GOING
TO GET CALIFORNIA TO ITS CLEAN
ENERGY TARGETS. UH SECOND, I
WANT TO SAY, I THINK THIS
HEARING IS A WONDERFUL SIGN THAT
POLICYMAKERS NOW GRASP AND I
THINK SOME HAVE ALWAYS BUT IT'S
REALLY COMING INTO FOCUS THE
ENORMITY OF THE SCALE OF
DEVELOPMENT THAT YOU HAVE
ENDORSED BY PASSING S¼ B 100
BACK IN 2018. WHEN WE HEAR THAT
ON A PARTICULARLY TEMPERATE DAY
IN APRIL, THE STATE'S POWER
NEEDS WERE MET ALMOST
EXCLUSIVELY WITH CARBON FREE
GENERATION. IT CAN MISLEAD US
INTO BELIEVING THAT OUR GOAL IS
CLOSE AT HAND. BUT IT IS NOT
ACHIEVING THAT GOAL WILL REQUIRE
BRINGING ON AS YOU ALREADY
HEARD. 100 AND 50 GIGAWATTS OF
NEW POWER ONLINE BY 2045,
ACCORDING TO THE STATE'S S¼ B
100 ANALYSIS, AND THAT IS
ASTONISHING AMOUNT OF
DEVELOPMENT EQUIVALENT TO
BUILDING ROUGHLY 70 NEW DIABLO
CANYON NUCLEAR PLANTS IN TERMS
OF ENERGY OUTPUT. NOW ONE
PURPOSE OF THIS HEARING IS TO
ENSURE OUR POLICIES ARE ALIGNED
WITH THAT BUILD OUT AND THAT IT
WILL ENTAIL A LOT OF ROLL UP
YOUR SLEEVES, JUST PLAYING HARD
GRUNT WORK. IT IS SAID PERSONNEL
IS POLICY, AND WE ARE FORTUNATE
THAT THE LEADERSHIP AND STAFFS
OF THE PUC AND KO, IN ADDITION
TO CARB SEEM TO UNDERSTAND THE
CHALLENGES BEFORE US AND HAVE
DEMONSTRATED A HIGH LEVEL OF
COLLEGIALITY AMONG THEMSELVES,
WHICH I THINK IS FAR MORE
IMPORTANT THAN RESTRUCTURING
FLOW CHARTS OR REPORTING LINES.
WE ARE ESPECIALLY PLEASED BY THE
CREATION OF THE MULTI AGENCY
ENERGY DEVELOPMENT TASK FORCE E
Dð PR IS SCHEDULED TO MEET WITH
THE TASK FORCE ON MARCH 5TH TO
OUTLINE OUR AMBITIOUS
DEVELOPMENT PORTFOLIO AND TO
IDENTIFY THE CHALLENGES THAT
COULD IMPEDE THE DEVELOPMENT OF
THAT PORTFOLIO. OFTEN THE
DEVELOPMENT PROCESS IS STYMIED
WHEN VARIOUS PUBLIC ENTITIES ARE
NOT IN SYNC AND TO HAVE A PLACE
TO GO. THAT CAN HELP UNTANGLE
THESE SITUATIONS SHOULD BE
IMMENSELY HELPFUL. NOW. THIS IS
NOT TO SAY THERE ARE STILL NÓ
GAPS TO FILL BETWEEN THE
AGENCIES AS MY FIRST SLIDE
ADDRESSES, AND I THINK YOU'VE
ALREADY SEEN THIS SLIDE. THE èC
, E èC AND PU èC, FOR EXAMPLE,
ARE NOT IN SYNC IN PLANNING FOR
DIVERSE, DIVERSE RESOURCES LIKE
OFFSHORE WIND. IN RESPONSE TO
LEGISLATIVE DIRECTION FROM A B
525, THE èC èC ADOPTED A
PLANNING TARGET OF UP TO 25
GIGAWATTS OF OFFSHORE WIND BY
2045. BUT THE PU S¼ MOST
INTEGRATED INTEGRA MOST RECENT
INTEGRATED RESOURCE PLANNING
DECISION, WHICH IS WHERE THE
RUBBER MEETS THE ROAD IN
PROVIDING DIRECTION TO THE
STATE'S LOAD SERVING ENTITIES,
AND CASO IS PLANNING FOR ONLY
4.5 GIGAWATTS HAS IT ALREADY
BEEN NOTED. THESE KIND OF MIXED
SIGNALS BY THE STATE STYMIE THE
LONG TERM INVESTMENTS REQUIRED
TO LAUNCH AN INDUSTRY LIKE
FLOATING OFFSHORE WIND, AND THEY
RAISE QUESTIONS ABOUT THE VALUE
OF STATE THE STATE'S VARIOUS
PLANNING EFFORTS IF THEY DON'T
EQUATE AND TRANSLATE INTO A
POSITIVE POLICY OUTCOMES. FROM E
Dð P R'S PERSPECTIVE, THE TWO
CHALLENGES THAT WILL DETERMINE
WHETHER èC, CALIFORNIA REACHES
ITS GOALS TO US OR TRANSMISSION
AND CITING AND PERMITTING AS THE
SECOND SLIDE NOTES, WHILE THE
STATE HAS IMPROVED ITS LONG TERM
TRANSMISSION PLANNING, AS
REFLECTED IN THE SNAPSHOT FROM
THE KO'S 1ST 20 YEAR OUTLOOK ON
THE LEFT THE LENGTH OF TIME TO
PLAN PERMIT AND CONSTRUCT A
TRANSMISSION PROJECT HAS GROWN
UNCONSCIONABLY LONG. I BELIEVE
THAT WAS A WORD. AN ASSEMBLY
MEMBER WOULD ALREADY USED NEARLY
A DOZEN YEARS ON AVERAGE, FOR
PROJECTS REQUIRING A CERTIFICATE
OF PUBLIC NECESSITY AND
CONVENIENCE AND MORE THAN A
DECADE FOR PROJECTS THAT ONLY
REQUIRE A PERMIT TO CONSTRUCT.
WORSE FOR MANY PROJECTS. THE
COMPLETION DATE IS INDEFINITE
AND EVEN FLUID. NOW THERE ARE
MANY TRANSMISSION RELATED ISSUES
FACING CALIFORNIA FROM
INTERCONNECTION Q REFORM TO
WHETHER CALIFORNIA SHOULD BE
PART OF REGIONAL TRANSMISSION
OPERATOR WHICH HAS ALSO BEEN
DISCUSSED AND WHICH WE WOULD
ENDORSE, BUT I WANT TO FOCUS AND
BRING LIGHT ON ONE OF THE ISSUE
OF TRANSMISSION PROVIDERS,
PRIMARILY OUR I Ó U S¼
COMPETING NET CRITICAL NETWORK
UPGRADES IN A TIMELY MANNER. NOW
I AM SPEAKING HERE OF
COMPARATIVELY SMALL PROJECTS,
NOT INTERSTATE TRANSMISSION
LINES, BUT THINGS LIKE EXPANDING
A SUBSTATION OR ADDING WIRES TO
EXISTING TRANSMISSION RIGHTS OF
WAY NOW I WANT TO EMPHASIZE THAT
I'M NOT HERE TO CAST BLAME. OUR
INDUSTRY APPRECIATES THE MANY
CHALLENGES IN STRESSING FACING
THE I Ó U S¼, AND WE UNDERSTAND
THEY HAVE MANY COMPETING AND
CRITICAL PRIORITIES, MOST
NOTABLY WILD WILD WILDFIRE RISK
MITIGATION. SO WE WENT TO WORK
WITH OUR FRIENDS IN THE I Ó U
S¼ TO FIND A SOLUTION TO THE
BACKLOG OF PROJECTS, SOME OF
WHICH RECEIVED KISO AND PUC
APPROVAL A DECADE AGO, WHICH
WHICH HAS STILL NOT BEEN
COMPLETED. A RECENT EXAMPLE. WE
HAVE A FI A 200 MEGAWATT SOLAR
PLUS 100 MEGAWATT STORAGE
PROJECT IN THE CENTRAL VALLEY
THAT WE HAD HOPED TO HAVE
OPERATIONAL IN 2026 OR 2027,
BECAUSE THAT IS WHEN WE WERE
TOLD A LOCAL SUBSTATION UPGRADE
NECESSARY TO THE PROJECT WOULD
BE COMPLETED. THE UTILITY
CONTACTED US IN DECEMBER TO SAY
THE SUBSTATION UPGRADE WOULD NOW
NOT BE COMPLETED UNTIL 2029 OR
PERHAPS 2030. NOW REGULARLY WHEN
WE THESE DELAYS OCCUR, WE ARE
NOT GIVEN A REASON WHY, NOR DO
WE HAVE ANY AVENUE TO APPEAL.
BUT IN THIS INSTANCE, THE
TRANSMISSION PROVIDER DID NOTE
THAT THE FINANCIAL AND PERSONNEL
CONSTRAINTS WERE A FACTOR. AS
WAS THE FACT THAT A CIRCUIT
BREAKER NECESSARY FOR THE
UPGRADE HAD BEEN ORDERED, BUT
WOULD NOT BE DELIVERED FOR 50
MONTHS. FOUR YEARS, TWO MONTHS.
THIS EXAMPLE MAY SPUR A VARIETY
OF IDEAS IN YOUR HEAD ALREADY,
SUCH AS WHETHER THE UTILITIES
NEED ACCESS TO ALTERNATIVE
FINANCING WHERE THE THIRD PARTY
SHOULD BE ALLOWED TO DO THESE
UPGRADES AND WHETHER THE STATE
CAN LEVERAGE ITS BUYING POWER TO
MITIGATE SUPPLY CHAIN CHALLENGES
LIKE THE ONE I MENTIONED. BUT
THE FIRST STEP I WOULD URGE THIS
COMMITTEE TO TAKE IS TO HOLD
ADDITIONAL INFORMATION AND
OVERSIGHT HEARINGS ON THIS VERY
TOPIC SO THAT THERE IS A BETTER
SENSE OF THE ROOT CAUSES AND
SCOPE OF THIS PROBLEM BECAUSE
THIS IS AN ISSUE THAT DEMANDS
MORE TRANSPARENCY AND
ACCOUNTABILITY. REGARDING SIDING
AND PERMITTING. WE ARE FORTUNATE
THAT MOST CALIFORNIANS SEE THE
BENEFITS OF ALLOWING RENEWABLE
ENERGY PROJECTS TO BE DECIDED IN
THEIR COMMUNITIES. BUT I CAN SAY
THIS WITH CERTITUDE. THERE ARE
NÓ MORE EASY PLACES. I PUT THAT
IN QUOTATION MARKS TO DEVELOP.
GIVEN THE SCOPE OF DEVELOPMENT
REQUIRED RENEWABLE POWER
DEVELOPMENT WILL INCREASINGLY
BUMP UP AGAINST OTHER LAND USE
PRIORITIES. THIS BRINGS ME TO MY
THIRD AND FINAL SLIDE, WHICH
UNDERSCORES THE DILEMMA. NOW THE
PROPOSED CASH NATIONAL MARINE
SANCTUARY AND CHUCK WALLER
NATIONAL MONUMENT ARE BOTH
WORTHY IDEAS, AND PROPONENTS OF
BOTH HAVE SAID THEY WISH TO
ACCOMMODATE RENEWABLE POWER
DEVELOPMENT. HOWEVER THE
ENTHUSIASM TO ADVANCE THESE
IDEAS LED STATE AND OTHER
OFFICIALS TO ENDORSE EARLY
CONCEPTIONS OF EACH SO THAT WE
ARE NOW SCRAMBLING IN THE CASE
OF CASH TO SECURE A RULE CHANGE
THAT WOULD ALLOW A QUARTER FOR
THE CABLES THAT ARE NECESSARY TO
BRING THE POWER GENERATED BY
FOLLOWING OFFSHORE TURBINES TO
SHORE. AND IN THE CASE OF CHUCK
WALLACE, STATE OFFICIALS
EMBRACED THE PROPOSAL WITHOUT
FIRST CONSULTING THE CLEAN
ENERGY INDUSTRY TO SEE IF THE
PROPOSED BOUNDARIES WOULD
ACCOMMODATE PLANNED SOLAR
DEVELOPMENT AND ASSOCIATED
TRANSMISSION. SUCH CONFLICTS IN
LAND USE PRIORITIES ARE WHY I AM
REGULARLY ASKED WHETHER WE CAN
ACHIEVE CALIFORNIA'S 100% GOALS
WITH JUST ROOFTOP SOLAR,
INCLUDING COVERING EVERY PARKING
LOT IN THE STATE WITH SOLAR
PANELS, TOO. THE ANSWER, SADLY,
IS NÓ. THE DISTRIBUTIVE
GENERATION, WHICH EQ PR DOES AND
SO WHICH WE ADVOCATE WILL PLAY A
CRITICAL ROLE. IN ACHIEVING THE
CLEAN ENERGY GOALS BUT CAN
PROBABLY ULTIMATELY ACCOUNT FOR
ONLY ABOUT ONE THIRD OF THE
SOLUTION. I CAN GO INTO DETAILS
ABOUT THAT LATER, IF YOU'D LIKE.
THE REST WILL COME FROM REP.
POWERED WIND FARMS ALREADY IN
CALIFORNIA, OFFSHORE WIND
UTILITY SCALE STORAGE AND SOLAR
THAT WE'RE TRYING TO DO NOW, AND
RENEWABLE POWER TRADED FOR
CALIFORNIA CAN BE BOTH AN ENERGY
EXPORTER, AS WELL AS IMPORTER
WITH OTHER WESTERN STATES, BLUE
AND RED ALIKE, WHO HAVE ALSO
AGGRESSIVELY EMBRACED CLEAN
ENERGY DEVELOPMENT. WE WANT TO
DEVELOP PROJECTS WHERE WE ARE
WANTED. THE GROUNDWATER CRISIS
HAS LED FARMERS TO TAKE TENS OF
THOUSANDS OF ACRES OUT OF
PRODUCTION IN CALIFORNIA, WHICH
THE VICE CHAIR NOTED BEFORE HE
LEFT. THESE FARMERS WOULD
PROBABLY LOVE A DROUGHT
RESISTANT CROP LIKE SOLAR PANELS
. OUR INDUSTRY COULD USE HELP
IDENTIFYING THESE LANDS. WHILE
CHANGES IN THE WILLIAMSON ACT,
FOR EXAMPLE, COULD MAKE SUCH A
SWITCH IN LAND USE MORE
DESIRABLE. THE IN THE INDUSTRY
ALSO NEED TO DO MORE TO INCREASE
THE APPEAL OF OUR PROJECTS WITH
COMMUNITY INVESTMENT AND MORE
IMAGINATIVE HABITAT RESTORATION,
INCLUDING ATAQUES, WHICH WAS
MENTIONED EARLIER AND AG
FRIENDLY WILDLIFE DEVELOPMENT
LIKE POLLINATORS. SINCE
TRANSMISSION IS KEY. WE MUST
ALSO PLAN TO GET TRANSMISSION TO
WHERE THE PUBLIC WANTS
DEVELOPMENT, WHICH COULD ALSO
REDUCE CONGESTION AT CURRENT
ACCESS POINTS. THIS ALL BRINGS
ME TO MY FINAL POINT COUNTY
PLANNING OFFICERS. ARE ALREADY
SEEING AN UNPRECEDENTED NUMBER
OF PERMIT APPLICATIONS FROM
SOLAR DEVELOPERS AS WELL AS
HOUSING DEVELOPERS AND
INFRASTRUCTURE OF ALL TYPES.
THOSE THAT ARE ALREADY
OVERWHELMED BY THIS NEW DELUGE
WILL SOON BE TIMELINE. CERTAINTY
IS A TOP PRIORITY FOR ANY
BUSINESS, INCLUDING US. WE
CANNOT AFFORD EXTENDED PROJECT
DELAYS AS A COMPANY IN THE FIGHT
AGAINST CLIMATE CHANGE CANNOT
AFFORD DELAY EITHER. A B TWO. Ó
FIVE, RECOGNIZED THE PROBLEM BY
OFFERING A STATE PERMITTING
OPTION THROUGH THE èC èC. BUT
WE CANDIDLY WE WOULD PREFER TO
PERMIT TO THE COUNTIES BECAUSE
THAT HELPS PROVIDE THE SOCIAL
SOCIAL LICENSE NECESSARY TO
SUCCESSFULLY OPERATE IN ANY
COMMUNITY. I ENCOURAGE THIS
COMMITTEE ALSO TO DEVOTE SOME
ADDITIONAL ATTENTION TO HOW THE
STATE AND DEVELOPERS LIKE
OURSELVES CAN ENSURE COUNTIES
HAVE THE RESOURCES TO ENSURE AN
EFFICIENT PERMITTING PROCESS
THAT WILL ELIMINATE DELAYS AS
MUCH AS POSSIBLE. AND WITH THAT,
I JUST WANT TO THANK YOU FOR THE
OPPORTUNITY TO SPEAK TODAY AND
THANK YOU AGAIN FOR STAYING TO
THE BITTER END AND I LOOK
FORWARD TO YOUR QUESTIONS. WELL
THANK YOU, MR FERRIS. AND TO ALL
OF OUR PANELISTS, UM, YOU HAVE
GIVEN US A TON TO THINK OF,
THINK ABOUT AND DIGEST. I'LL
FIRST OPEN IT UP TO QUESTIONS
FROM COMMITTEE MEMBERS.
DEFINITELY. THANK YOU. I
APOLOGIZE THAT I HAD TO STEP UP,
UH, STEP OUT AND MISS PART OF
THE PRESENTATION. BUT, UM, I'M
CURIOUS YOUR PERSPECTIVE. UM.
OBVIOUSLY YOU KNOW, THERE'S A
HUGE AMOUNT OF TIME WITH THE
CHART YOU SHOWED THERE WAS IN
THIS ISN'T A SURPRISE, UH, ABOUT
HOW LONG IT TAKES TO ACTUALLY
PERMIT AND THEN BUILD OUT. UM UH
I'VE HEARD AND I AND I'D LIKE TO
AND YOU MAY NOT BE ABLE TO
ANSWER THIS AND YOU MAY NOT BE
THE RIGHT PEOPLE TO ANSWER THIS,
BUT BUT ADDING CAPACITY TO
EXISTING TRANSMISSION. HOW LONG
DOES THAT TAKE? AND WHAT IS THAT
PROCESS LOOK LIKE? I'VE HEARD
THAT IT'S JUST AS ONEROUS AS AS
NEW TRANSMISSION. AND TAKES JUST
AS MUCH TIME. UH BECAUSE OF ALL
THE PERMITTING, YOU'VE GOT TO GO
THROUGH AND SEQUEL ANALYSIS ON
TOP OF WHEN YOU'RE ALREADY USING
EXISTING INFRASTRUCTURE. SO DO
YOU HAVE A CAN ANYBODY ANSWER
THAT? OR IS IT OR MAYBE I'M
BARKING AT THE WRONG PEOPLE.
CERTAINLY I. I CAN I CAN TAKE A
STAB AT IT, UM, FROM FROM MY
EXPERIENCE, UM, IT IT TAKES A
LITTLE LESS TIME, BUT NOT A LOT
LESS TIME. AND IT DEPENDS ON
WHERE THE RIGHTS OF WAY GO
THROUGH AND SOME OF THE ISSUES
BUT IT'S NOT AS SIMPLE AS JUST
PUTTING A BIGGER SIZE CONDUCTOR.
IN MANY CASES, YOU MIGHT HAVE TO
REDESIGN THE TOWERS, UH AND A
LOT OF THE INFRASTRUCTURE
ASSOCIATED WITH IT. YOU MIGHT
NEED A SEQUEL. WELL YOU'RE GONNA
NEED A SEQUEL. BUT YOU MIGHT
NEED A NIPAH AS WELL. IF YOU'RE
GOING THROUGH FEDERAL LANDS. UM
WE'RE FINDING JUST THE
CHALLENGES OF WILDFIRE HARDENING
ON OUR PRO OUR RIGHTS OF WAY
THROUGH FEDERAL LANDS RIGHT NOW
CAN TAKE YEARS. YOU KNOW, WE
WANNA GO IN AND SAY WE'RE GOING
TO PUT IN, UH, METAL POLES
INSTEAD OF WOOD POLES TO MAKE IT
MORE RESILIENT. WE'RE GOING TO
PUT COVERED CONDUCTOR. UM IT'S
NOT AS SIMPLE AS YOU WOULD THINK
IT WOULD BE TO DO EVEN THOSE
TYPES OF MEASURES BECAUSE YOU
COULD GO IN AND BE DISTURBING A
PARTICULAR AREA AND, UH, THEY'RE
GONNA HAVE GO THROUGH ALL THE
SIM SIMILAR STUDIES AS IF YOU'RE
BUILDING NEW I'LL JUST ADD, UM.
THAT THERE ARE TECHNOLOGIES OUT
THERE OF ADVANCED CONDUCTORS AND
SO EDISON IN THE LAST DECADE OR
SO HAVE DEPLOYED ABOUT 500 MILES
OF THAT, UH SO THEY'RE THEY'RE
CALLED HIGH TEMPERATURE, LOW SAG
CONDUCTORS. THEY ARE NOT HEAVIER
THAN THE CURRENT CONDUCTOR. SO
YOU CAN ACTUALLY RE CONDUCTOR
WITHOUT HAVING TO, UM,
REENGINEER THE STRUCTURES THAT
ARE HOLDING THEM UP AND THE
CAPACITY IS MUCH HIGHER. THEY
DON'T SAG AS MUCH SO YOU CAN
STAY WITH THE, UM HEIGHTS. SO
THOSE ARE THINGS THAT ARE BEING
WORKED ON AS WE SPEAK TO SPEED
UP DEPLOYMENT WITHOUT YOU KNOW,
HAVING TO GO THROUGH THE ENTIRE
PERMITTING PROCESS AGAIN. AND I
JUST WANTED TO ADD. I MEAN, THIS
COULD GET SO CONFUSING BECAUSE
THERE'S SO MANY LAYERS TO THE
TRANSMISSION ISSUE. UM SO ALL
EVERYTHING MY COLLEAGUE SAID IS
TRUE. UM, BUT ALSO IN MY POINT I
WAS RAISING THERE ARE SOME
PROJECTS THAT ARE ACTUALLY
ALREADY BEEN APPROVED AND HAVE
BEEN LARGELY PERMITTED THAT ARE
STILL NOT GETTING BUILT BECAUSE
OF THE UTILITIES HAVE OTHER
ISSUES THAT ARE STRAINING THEIR
RESOURCES. THEY ARE HEAVILY
STRESSED, AND SO AGAIN, WE DON'T
WANT TO LOSE SIGHT OF THAT ISSUE
AS WELL. SO UM, I APOLOGIES FOR,
UH, STEPPING ON. I THINK THERE
IS UM, FROM A LOGICAL
PERSPECTIVE HERE. NEW LINES THAT
ARE AN EXPANSION AN EXTENSION.
AN UPGRADE OR MODIFICATION DO
NOT NEED THE SAME LEVEL OF S¼ QL
REVIEW AND PERMITTING REVIEW
THAT A BRAND NEW LINE DOES, AND
THE LEGISLATURE ACTUALLY GAVE
GUIDANCE TO THAT EFFECT LAST
YEAR, AND WE'RE TRYING TO
IMPLEMENT THAT NOW. I ALSO WANT
TO JUST NOTE TO NOTE THAT NEW
TECHNOLOGIES ON THE DISTRIBUTION
SIDE AND ON SOME STUFF ON
TRANSMISSION GRID ENHANCING
TECHNOLOGIES ACTUALLY CAN BE
IMPLEMENTED. RELATIVELY QUICKLY
AND ACTUALLY DON'T NEED THE
LEVEL OF S¼ QL AND PERMITTING
REVIEW THAT SOME FOLKS HAVE
WOULD NORMALLY THINK. AND SO
THERE'S A LOT OF WAYS OF DOING
STUFF IN TERMS OF THOSE
ENHANCEMENTS. THAT COULD REALLY
HELP. UM, I THINK THE YEAH, WE
JUST NEED TO APPROACH IT ON A
SITUATION BY SITUATION BASIS.
THE ONE OBSERVATION THAT I WOULD
MAKE IS WE NEED TO DO TWO THINGS
AT THIS SAME TIME REALLY EXPAND
OUR EXISTING SYSTEM. THE FULLEST
EXTENT THAT WE CAN AND AT THE
SAME TIME DO NEW DEVELOPMENT AND
ONE IS NOT THE SAME PROCESS AS
THE OTHER. AND SO AS LONG AS WE
ACKNOWLEDGE WHAT WORLD WE'RE IN,
WE SHOULD BE ABLE TO DO BOTH.
THANK YOU. ASSEMBLY MEMBER
CONNOLLY. THANKS QUESTION FOR,
UH, SOCAL EDISON. MS MENNEN, UM,
AS YOU'RE HEARING THROUGHOUT
THIS HEARING, UH, ONE OF THE BIG
ISSUES WERE FRANKLY HEARING
ABOUT EVERY DAY. NOW IS THE HIGH
RATES THAT ARE CONSTITUENTS ARE
FACING FROM OUR, UH, THE
UTILITIES. AND ONE OF THE STATED
REASONS IS, UH, WILDFIRE
MITIGATION. SO I GUESS MY
QUESTION IS, UM DO CERTAIN
METHODS FOR WILDFIRE MITIGATION
INVOLVE A FINANCIAL RATE OF
RETURN FOR THE UTILITY, WHILE
OTHER METHODS DON'T FOR EXAMPLE,
UNDERGROUND. UH, WHICH APPEARS
TO BE VERY COSTLY. UM IF SO, HOW
DOES THIS INFLUENCE DECISION
MAKING WHEN DESIGNING A WILDFIRE
MITIGATION STRATEGY? SO I'LL SEE
A COUPLE OF THINGS. ONE IS WE
OPERATE UNDER, YOU KNOW WHAT IS
AUTHORIZED RATE OF RETURN BY THE
WHAT THE PUC AUTHORIZES FOR US,
AND I AM NOT AN EXPERT. I AM THE
FINANCIAL RATE OF RETURN ASPECTS
. HOWEVER I CAN SPEAK MORE ON
THE ENGINEERING SIDE AND, UH,
FOR EDISON. THE. UH, THE COST
ASPECT IS VERY IMPORTANT. THAT'S
ONE OF THE BIG REASONS WHY FOR
WILDFIRE MITIGATION ARE APPROACH
, WHICH MAKES SENSE FOR OUR
SERVICE AREA HAS BEEN MORE OF
DEPLOYING COVERED CONDUCTOR
INSTEAD OF UNDERGROUND
UNDERGROUND IS NECESSARY IN SOME
SEVERE RISK AREAS. BUT THOUGH
COVERED CONDUCTOR DOES NOT
REDUCE RISK AT THE SAME LEVEL AS
UNDERGROUND DOES. IT'S
SIGNIFICANTLY CHEAPER AND CAN BE
DEPLOYED FASTER, AND WE PUT IN
OTHER MITIGATIONS IN PLACE TO
SUPPLEMENT THE COVERED CONDUCTOR
SO THAT WE GET THE SAME LEVEL OF
RISK REDUCTION SO I CAN SPEAK
FROM THAT LEVEL OF WHAT WE ARE
DOING FOR, YOU KNOW TO DIRECTLY
ADDRESS AFFORDABILITY. YEAH, AND
PERHAPS LET ME ASK IT MORE
DIRECTLY BECAUSE I THINK YOU'RE
YOU'RE RESPONDING IS ANYTHING
BEING DONE TO ENSURE THAT BEST
FIT? COST-EFFECTIVE APPROACHES
ARE BEING USED RATHER THAN
METHODS TO MAXIMIZE SHAREHOLDER
RETURN FOR THE UTILITIES. WELL
AGAIN I CAN SPEAK FROM, YOU KNOW
MY PERSPECTIVE AND THE WORK THAT
MY DEPARTMENT DOES. WE ARE NOT
LOOKING AT SHAREHOLDER RETURN.
THAT'S NOT PART OF THE EQUATION.
WE ARE LOOKING AT. HOW MUCH RISK
CAN WE BUY DOWN AT WHAT COST AND
WHAT'S THAT EFFICIENT FRONTIER?
SO THAT THAT'S THAT'S WHAT WE
LOOK AT, YOU KNOW, AND THAT'S
WHAT OUR LEADERSHIP LOOKS AT IS.
HOW DO WE REDUCE THE RISK TO OUR
COMMUNITIES AT THE LEAST
POSSIBLE COST? THANKS. OK SO I
WANT TO MR HOWARD PICK UP ON
SOMETHING THAT YOU SAID, UM
WHICH CONCERNS ME. I THINK YOU
SAID THAT THERE IS SUCH GRIDLOCK
. UH RIGHT NOW, WITH THE
INTERCONNECTION QUEUE.
ESSENTIALLY YOU'RE FIGURING OUT
WAYS TO NOT HAVE TO EVEN ENGAGE
WITH THAT. UM OUR PREVIOUS
PANELIST, MR MILLER SPOKE ABOUT
SOME OF THE REFORMS THAT HAVE
BEEN UNDERTAKEN. OBVIOUSLY,
THAT'S NOT ADEQUATE, SO AND I
KNOW. UM, MS MENNEN. YOU HAD
MADE A SUGGESTION ABOUT A
VIABILITY SCREEN. WHAT ARE SOME
OTHER? I GUESS RECOMMENDATIONS
THAT ARE TOP OF MIND FOR YOU OR
OR MR COLEMAN FOR YOU, UM, TO
HELP BREAK THAT GRIDLOCK. I'LL
JUMP IN FIRST, THE CALAIS SO IS
WALKING THROUGH A NUMBER OF
PROCESSES TO TRY TO BREAK THAT
GRIDLOCK INTO ADDRESS IT GOING
FORWARD. WE'RE VERY ACTIVE IN
THOSE PROCEEDINGS. WHAT I WAS
REALLY SAYING IS IN THIS INTERIM
PERIOD WHILE WE'RE UNABLE TO
MOVE FORWARD WHILE THEY'RE
WORKING THROUGH THAT WITH THE
STAKEHOLDER GROUPS, UM WE'RE
JUST MOVING TO A FOCUS OF WHAT
WHAT CAN WE CONTROL? WHERE CAN
WE DO? UH, NEW PROJECTS,
EXPANSIONS AND INTERCONNECT
WITHIN OUR COMMUNITIES WITHOUT
IN CALAIS, SO INTERCONNECTION
APPROVAL OR AUTHORITY. AND SO
THAT'S JUST THE FOCUS OF THE P
Ó U COMMUNITY AT THIS POINT
TRYING TO TAKE ADVANTAGE OF
FEDERAL TAX INCENTIVES WHILE
THEY'RE AVAILABLE, UH, WITH THE
CONCERN THAT WE MIGHT
POTENTIALLY LOSE THOSE IN A FEW
YEARS, SO WANT TO OPTIMIZE THAT
VALUE? UH BUT WE DO BELIEVE THE
REFORMS THAT ARE OCCURRING WILL
GET US TO A BETTER PLACE. IT'S
JUST A PROCESS TO WALK THROUGH.
UNDERSTOOD. AND YOU WOULD
SUGGEST I VIABILITY SCREEN
ANYTHING ANY OTHER?
RECOMMENDATIONS UH, SUGGESTIONS?
I. I THINK I'LL GO BACK TO THOSE
21 IS YOU KNOW IF BASICALLY IF A
PROJECT IS THEY GET IN THE QUEUE
, AND THEN THEY'RE NOT
COMMERCIALLY VIABLE. IT WAS THE
END THAT THAT'S WHAT WE'RE
TALKING ABOUT. AND THE OTHER
PART IS, I THINK WHERE, UH, YOU
WERE TALKING ABOUT MR HOWARD IS
JUST IF THE DEVELOPMENT IF WE
CAN PLAN IN SUCH A WAY TOGETHER
SO THAT THE GENERATION
DEVELOPMENT IS COMING, WHERE WE
ALREADY HAVE TRANSMISSION
CAPACITY OR WHERE TRANSMISSION
CAPACITY CAN BE BUILT FASTER
THAN JUST SPEEDS UP, AND WE HAVE
DONE THIS IN THE PAST. UH, YOU
KNOW, EDISON HAD A LARGE PROJECT
SEVERAL YEARS AGO, UH, BUILDING
THE LINES FOR THEY HAD TO BE
ONCE YOU BUILD THE LINES. UM IT
IT JUST BOOST THE GROWTH OF
GENERATORS, AND THE CONNECTION
IS SO MUCH ASK HER, AND WE'RE
JUST ASKING THAT TAKING THOSE
EXAMPLES FROM THE PAST AND
REPLICATING THEM OR SPEEDING
THEM UP IS WHERE WE REALLY NEED
TO GO AS FAR AS THE GENERATION
INTERCONNECTIONS ARE CONCERNED.
UNDERSTOOD THANK YOU. UM ALL
RIGHT. AND 11 OTHER QUESTION. SO
AGAIN, MR HOWARD, YOU, UH, IN
YOUR OPENING COMMENTS SAID THAT
WE SHOULD BE TALKING ABOUT
ANOTHER DIABLO CANYON EXTENSION
NOW, UM, YOU ALSO MADE THE POINT
THAT ONE OF THE REASONS THAT WE
NEED TO TALK ABOUT IT NOW,
RATHER THAN IN FIVE YEARS TIME
IS THAT YOU'RE NOW BUYING ENERGY
AT A PREMIUM. BECAUSE. THE
MARKET IS COUNTING ON THE FACT
THAT THAT ENERGY IS NOT GOING TO
BE AVAILABLE AND THE PRICES ARE
GONNA GO UP. UM I GUESS CAN YOU
SAY A LITTLE BIT MORE ABOUT
THAT? AND I WOULD BE INTERESTED
IN REACTIONS FROM OTHER
PANELISTS ON THAT PARTICULAR 0.1
OF ONE OF THE PICKER
REQUIREMENTS THAT WE HAVE IN
ORDER TO QUALIFY, UH, WITHIN OUR
RENEWABLES. WE HAVE TO BUY
PRODUCTS THAT ARE 10 YEARS OR
LONGER. IN MANY CASES, UM, AND
THAT'S THAT'S A PIECE OF
LEGISLATION. THAT'S UH, WE'RE
OBLIGATED TO PUT INTO OUR PLAN.
AND SO WHEN YOU LOOK AT RIGHT
NOW BUYING SOME 10 YEAR PRODUCTS
, UH, WE HAVE FIVE YEARS WHERE
DIABLO IS ON IT FIVE YEARS WHERE
DIABLO POTENTIALLY IS SHUT DOWN,
AND WE'RE WE'RE SEEING THE
CURVES THE FUTURE. THE FUTURE IS
ON THOSE CURVES REFLECTIVE OF
THE UNCERTAINTY AS TO WHETHER
THAT WILL BE A RESOURCE
AVAILABLE TO THE STATE AT THAT
TIME, AND ARE WE DOING ENOUGH TO
REPLACE THAT AND WILL THERE BE
SUFFICIENT SUPPLIES? SO WE'RE
GOING TO PAY A PREMIUM TODAY IN
THAT? FIRST FIVE YEARS WITH THE
RECOGNITION THAT THIS UNKNOWN IN
THE LAST FIVE SO HAVING HAVING
THIS CERTAINTY FOR OUR MARKET
RIGHT NOW WOULD IMPACT. I
BELIEVE THE RATES THAT OUR RATE
PAYERS ARE PAYING TODAY WITH
THAT RECOGNITION. AND ANYONE
ELSE LIKE TO COMMENT. ALL RIGHT.
SEE YOU IN HEARING NONE. UM, AS
I SAID, I, I WANNA THANK UH ALL
OF YOU AND MR HOLDEN. THANK YOU
SO MUCH FOR JOINING US, UM, IN
FOR REVIEWING THESE
RECOMMENDATIONS. THANK YOU FOR
ALL OF YOU FOR JOINING US. AND
FOR YOUR RECOMMENDATIONS, I SORT
OF WISH WE'D DONE THIS PANEL.
YEAH, IN PARALLEL WITH OUR
AGENCIES SO THAT WE COULD HEAR
THEIR REAL TIME REACTIONS TO
SOME OF THESE RECOMMENDATIONS,
BUT, UM, AS FOLLOWED. WHAT WE'LL
BE DOING IS, UH, FOLLOWING UP
WITH OUR, UH, AGENCIES AND, UM,
UNDERSTANDING THEIR REACTIONS TO
THESE RECOMMENDATIONS, AND
WHETHER OR NOT THERE ARE CHANGES
THAT THAT WE NEED TO AND CAN
MAKE SO APPRECIATE YOU FOR
SURFACING. THESE AND MR WOOD.
I'M SORRY PROBLEM. I, I GUESS
GOING BACK TO YOU KNOW, A YEAR
AND A HALF AGO, AND WE WHEN WE
RE UM UH, WE HAD DISCUSSIONS
ABOUT DIABLO CANYON. EXTENDING
THE LIFE OF DIABLO CANYON. UM
THE PREMISE WAS THAT WE'RE GOING
TO HAVE THIS HUGE CHALLENGE WITH
GETTING OUR GREEN ENERGY ONLINE
QUICKLY ENOUGH BECAUSE OF ALL
THE THINGS WE'VE BEEN TALKING
ABOUT HERE TODAY. UM. KIND OF A
LOADED QUESTION. WHAT CONFIDENCE
DO YOU HAVE, THAT WE'RE ON THE
RIGHT TRACK? HOW MUCH? IN FIVE
YEARS. ARE WE GONNA BE? MAKING
THE KIND OF PROGRESS IS GOING TO
ALLOW US. WE MUST NOT
NECESSARILY BE IF YOU'RE ALREADY
TALKING ABOUT THE IDEA THAT WE
SHOULD HAVE. WE SHOULD HAVE
EXTENDED. WE SHOULD HAVE
EXTENDED DIABLO, MAYBE 10 YEARS.
SO REALISTICALLY WHERE? WHERE DO
YOU SEE US NOW? ACTUALLY IN
THREE, YOU KNOW, THROUGH A YEAR
AND A HALF SHORTER THAN WE'VE
HAD THAT DISCUSSION, SO I I'LL
GIVE YOU MY PERSPECTIVE. MY
PERSPECTIVE IS, UM IF EVERYTHING
WAS STATIC. I THINK WE'RE DOING
ENORMOUS STRIDES IN ACHIEVING
ADDITIONAL RENEWABLE GROWTH IN
STORAGE AND ALL THESE EFFORTS,
BUT IT'S NOT STATIC. WE'RE WE'RE
CHASING AFTER A GROWING LOAD,
AND IT'S GROWING VERY FAST FOR
US. SO WE'RE SEEING IN SOME OF
OUR TERRITORIES 8% PER YEAR
GROWTH, SO WE HAVE TO MEET THAT
GROWTH. IN ADDITION TO
TRANSITIONING OUR EXISTING FLEET
OF RESOURCES TO A RENEWABLE
RESOURCE. SO WE'RE DOING
MULTIPLE THINGS AT THE SAME TIME
. THAT'S WHY IF WE DID NOT NEED
TO WORRY RIGHT NOW ABOUT THE
REPLACEMENT OF DIABLO IN THIS
NEXT FIVE YEAR PERIOD TO FOCUS
ON OUR GROWTH EFFORTS, I THINK
WE TEMPER SOME OF THE COST
AFFORDABILITY ISSUES THAT WE'RE
SEEING. HITTING US RIGHT NOW.
THAT'S FROM MY PERSPECTIVE. I. I
WOULD JUST ADD. I MEAN, WE HEARD
EARLIER FROM THE, UH SISO. UH,
ALMOST EIGHT GIGAWATTS WAS
BROUGHT ONLINE LAST YEAR, SEVEN
OR EIGHT. WHATEVER IT WAS, WHICH
IS UNPRECEDENTED. I MEAN,
TYPICALLY, CALIFORNIA IS ONLY
HISTORICALLY DONE ONE OR TWO
GIGAWATTS OF CLEAN POWER PER
YEAR. THE SUPPLY CHAIN ISSUE IN
THE WAKE OF THE PANDEMIC AND
INTERNATIONAL RELATIONS. AND ALL
THAT THING SET THE INDUSTRY BACK
A BIT, BUT I AS I MENTIONED E Dð
PR IS JUST ONE OF A DOZEN TO 20
DEVELOPERS AND WE HAVE FIVE
GIGAWATTS OF CLEAN POWER. WE'D
LOVE TO HAVE ONLINE BY 2030. IN
ADDITION TO WHAT THE GIGA WATER
SO WE CONSTRUCTING RIGHT NOW, SO
THE PROJECTS ARE OUT THERE.
THERE ARE THESE IMPEDIMENTS
TRANSMISSION PERMITTING, UH,
PROCUREMENT, WHICH I THINK IS
GOING PRETTY WELL. BUT WE STILL
NEED PEOPLE TO BUY THE POWER SO
RIGHT NOW. AT THIS MOMENT, YOU
WOULD SAY THE LINE DOESN'T GET
US QUITE TO THE GOAL BY 2030.
BUT I THINK THERE'S SOME REASON
FOR OPTIMISM IF WE CAN ADDRESS
SOME OF THESE QUESTIONS PRETTY
QUICKLY. UH, BUT I DO THINK
THERE NEEDS TO BE A REAL SENSE
OF URGENCY OR WE ARE SORT OF
MAYBE LOOKING AT SOME THINGS WE
JUST ASSUME NOT DO THANK YOU,
AND I'M GOING TO JUST PICK UP ON
THAT KIND OF MY CLOSING COMMENT,
SO, UM, I WOULD ABSOLUTELY AGREE
THAT THERE NEEDS TO BE, UH, A
REAL SENSE OF URGENCY. AND I
THINK AS I AS AS I OPENED WITH
THIS IS A PIVOTAL MOMENT. LIKE
WE NEED TO MAKE DECISIONS. WE
NEED TO ADDRESS THESE CHALLENGES
NOW OR WE'RE JUST NOT GONNA GET
THERE. UM AND SO I APPRECIATE
ALL OF YOU, UH, BEING PART OF
TODAY'S HEARING, AND, MORE
IMPORTANTLY, I THINK BEING PART
OF OUR ONGOING EFFORT TO ADDRESS
THESE CHALLENGES AND ENSURE THAT
WE ACTUALLY DO DELIVER A CLEAN
ENERGY FUTURE WITH CæA FOR
CALIFORNIA, THAT IS, AS I SAID,
SUSTAINABLE, RELIABLE AND
AFFORDABLE, UM, WILL DEFINITELY
BE AS I SAID, PICKING UP ON A
NUMBER OF THESE THEMES IN
SUBSEQUENT HEARINGS. UM WE HAVE
OUR SO IT'S NOT MARCH 5TH MARCH
6TH IS OUR HEARING ON
AFFORDABILITY AND THEN WE'LL
ALSO BE HAVING A HEARING TO DIG
INTO OPPORTUNITIES AROUND
PERMITTING REFORM AGAIN. THANK
YOU FOR JOINING US, AND BEFORE
WE WRAP UP, WE NOW, UH, WILL GO
AHEAD AND OPEN IT UP FOR PUBLIC
COMMENT. UH LET'S SEE, UM, SO
THANK YOU TO EVERYONE WHO STUCK
AROUND. UH AND, UH, MADE IT AS
SOMEONE SAID TO THE BITTER END,
UM, LINE UP AT THE DIRECTION OF
THE ASSEMBLY SERGEANTS AND STATE
YOUR NAME. ORGANIZATION. UH GOOD
AFTERNOON. NOT QUITE THE EVENING
, MADAM CHAIR ALEX JACKSON WITH
THE AMERICAN CLEAN POWER
ASSOCIATION, WHERE A TRADE GROUP
REPRESENTING UTILITY SCALE
DEVELOPERS. UH, I WANNA COMMEND
THIS HEARING AND THE FOCUS ON
REALLY MOVING FROM OUR IMPORTANT
PLANNING EFFORTS, WHICH WE HAVE
MADE A LOT OF PROGRESS TO A
FOCUS ON DEPLOYMENT. I THINK YOU
HIT IT. EXACTLY RIGHT, MADAM
CHAIR. I JUST WANT TO +13 AREAS
WHERE WE STILL SEE A BIT OF A
GAP BETWEEN WHAT WE'RE PLANNING
FOR LONG TERM AND WHAT WE'RE
ACTUALLY ACHIEVING. SO
TRANSMISSION IS CRITICAL. IT IS
THE NUMBER ONE ROADBLOCK TO
UTILITY. DEVELOPMENT ACROSS
TECHNOLOGIES. WE NEED TO BOTH
STREAMLINE NEW APPROVALS, AND I
ENCOURAGE THIS COMMITTEE TO KEEP
AN EYE ON THE 131 Dð PROCEEDING
IS PHASE TWO KICKS UP AND
ADDRESS THE BACKLOG TO ALREADY
APPROVED NETWORK UPGRADES. YOU
KNOW, WE NEED A BETTER SENSE OF
WHY THESE PRODUCTS ARE GETTING
DELAYED MORE ACCOUNTABILITY.
IT'S A BETTER TOOLS FOR THE
UTILITIES TO EXECUTE ON THEM
SECOND ON RESOURCE PLANNING AND
PLANNING FOR THE DIVERSE
PORTFOLIO THE STATE NEEDS TO
MEET RELIABILITY. I THINK WE SAW
THAT THERE'S STILL A DISCONNECT
BETWEEN SOME OF THE POLICY
SIGNAL COMING FROM THE
LEGISLATURE AND THE CEC AND HOW
THAT'S ACTUALLY TRANSLATING INTO
THE IRP WHERE DECISIONS REALLY
MATTER, AND I THINK WE'RE
CONCERNED. THERE'S A SENSE THAT
CALIFORNIA IS KIND OF A PASSIVE
PASSIVE OBSERVER FOR HOW
OFFSHORE WIND IS GONNA DEVELOP
ON THE PACIFIC COAST. IT'S
REALLY THE DECISIONS CALIFORNIA
MAKES THAT CAN INFLUENCE THOSE
TIMELINES AND THEN JUST LAST ON
LAND USE CONSIDERATIONS. YOU
KNOW, OUR 30 BY 30 GOALS ARE NOT
INCOMPATIBLE WITH S¼ P 100, BUT
THEY DO NEED TO BE CONSIDERED
HOLISTICALLY. IT'S VERY
DIFFICULT WHEN THEY'RE DONE.
SILOS. THANK YOU. WELL, THANK
YOU. THANK YOU. CHAIR MEMBERS.
APPRECIATE IT. I'M DEREK CHERNOW
WITH THE COALITION FOR COMMUNITY
SOLAR ACCESS. AND I JUST WANTED
TO MENTION THAT YOU KNOW, MID
AND LONG TERM UTILITY SCALE
PLANNING IS ABSOLUTELY CRITICAL.
HOWEVER IT IS ALSO IMPORTANT TO
HIGHLIGHT HOW COMMUNITIES SOLAR
CO LOCATED WITH ENERGY STORAGE,
PLAYS A PIVOTAL ROLE IN
COMPLEMENTING THESE LARGE SCALE
PROJECTS TO ENHANCE MIDTERM
RELIABILITY. BY STORING EXCESS
ENERGY DURING PEAK, UH,
PRODUCTION PERIODS. THESE
SYSTEMS ENSURE A STABLE AND
RELIABLE SUPPLY OF ELECTRICITY.
FURTHERMORE CO LOCATED STORAGE
AND COMMUNITY SOLAR PROJECTS
ENABLES A MORE EFFICIENT USE OF
OUR ENERGY INFRASTRUCTURE,
BRINGING CLEAN ENERGY PRODUCTION
CLOSE TO WHERE IT IS CONSUMED,
MINIMIZING LOSSES IN ENHANCING
THE OVERALL EFFICIENCY TO OUR
ELECTRICITY SYSTEM. AS A RECENT
AND REAL STUDY FOUND CALIFORNIA
HAS A TECHNICAL POTENTIAL FOR
OVER 60 GIGAWATTS OF COMMUNITY
SOLAR. WHICH SUPPORTS HOUSEHOLD
SAVINGS ON UTILITY BILLS EXPANDS
LOW INCOME ACCESS, INCREASE MORE
EQUITABLE WORKFORCE DEVELOPMENT.
BY FOSTERING LOCAL ENERGY
RELIABILITY AND PROVIDING
COMMUNITIES WITH DIRECT ACCESS
TO THE BENEFITS OF RENEWABLE
ENERGY. COMMUNITY SOLAR WILL
ENCOURAGE BROADER PUBLIC SUPPORT
FOR CLEAN ENERGY TRANSITION.
IT'S A STRATEGY THAT NOT ONLY
COMPLEMENTS UTILITY SCALE
PROJECTS BUT ALSO ALIGNS WITH
OUR GOALS FOR ENERGY
AFFORDABILITY, ESPECIALLY FOR
RENTERS IN LOW INCOME
HOUSEHOLDS. WE ARE HOPEFUL THE
èC PU èC WILL ADOPT A PROPOSAL
BEFORE THEM, SUPPORTED BY A WIDE
RANGE OF STAKEHOLDERS TO
ESTABLISH A VIABLE AND SCALABLE
PROGRAM. THANK YOU. AND THANK
YOU. ALL RIGHT. UM SO WITH THAT
WE HAVE REACHED THE END OF
TODAY'S AGENDA. AS I SAID, UH,
WE WILL BE RECONVENING. WE'RE
ACTUALLY WE'RE RECONVENING
TOMORROW, UH, ON FOR A HEARING
ON ELECTRIC VEHICLE
INFRASTRUCTURE AND PARTNERSHIP
WITH THE SELECT COMMITTEE ON
ELECTRIC VEHICLES AND THEN, UH,
ON MARCH 6TH, UH, WE WILL BE
DIGGING INTO, UH, COST AND
AFFORDABILITY. SO UM, THANK YOU
AGAIN TO ALL OF OUR PANELISTS
FOR YOUR PARTICIPATION. TO
COMMITTEE MEMBERS WITH THAT WE
ARE ADJOURNED. IT ALMOST CLOSED.