SENATE-TV ON ENERGY, UTILITIES
AND COMMUNICATIONS SUBCOMMITTEE
AND CLEAN ENERGY FUTURE WILL
COME TO ORDER A GOOD MORNING AS
WE CONTINUE TO TAKE SOME
PRECAUTIONS TO MANAGE ONGOING
COVID 19 RISKS. THE SENATE
CONTINUES TO WELCOME THE PUBLIC
AND HAS PROVIDED ACCESS TO BOTH
IN PERSON AND TELECONFERENCE
PARTICIPATION FOR PUBLIC
COMMENT. FOR INDIVIDUALS WISHING
TO PROVIDE PUBLIC COMMENT VIEW
THE TELECONFERENCE SERVICE
PARTICIPANT TOLL FREE NUMBER AND
ACCESS CODE IS POSTED ON OUR
COMMITTEE WEBSITE. IT WILL BE
DISPLAYED ON THE SCREEN AND I
WILL ANNOUNCE IT NOW. TODAY'S
PARTICIPANT NUMBER IS 1844291.
AND THE ACCESS CODE IS 1411140.
MAINTAIN DECORUM DURING THE
HEARING AS HIS CUSTOMER IN ANY
INDIVIDUAL WHO IS DISRUPTIVE
BABY REMOVED FROM THE REMOTE
MEETING SERVICE OR HAVE THEIR
CONNECTIONS MUTED. ALL THE
REPRESENTATIVES TODAY WILL BE
PARTICIPATING REMOTELY FOR
REMOTE PARTICIPANTS. PLEASE MUTE
YOUR PHONES OR COMPUTERS. THIS
WILL GREATLY AIDED ELIMINATING
ANY ACOUSTIC FEEDBACK. ASK THAT
EVERY TIME YOU WISH WE RECOGNIZE
THAT USED THE RAISE YOUR HAND
FEATURE IN THE PROGRAM. EACH
TIME YOU RECOGNIZE TO SPEAK A
POP UP WINDOW APPEAR ASKING IF
YOU'D LIKE TO, UH, MUTE. PLEASE
SELECT A MUTE BEFORE HE BEGINS
SPEAKING OR PERSONNEL WILL PUT
YOU BACK ON YOU WHEN YOU'RE DONE
ONCE RECOGNIZED TO SPEAK, PLEASE
MAKE SURE YOU CAN BE SEEN ON THE
SCREEN STATE YOUR NAME, AND THEN
YOU'RE READY TO ADDRESS THE
COMMITTEE. FOR TODAY'S HEARING.
WE WILL BE HEARING ALL OF OUR
PANELS OF WITNESSES ON THE
AGENDA PRIOR TAKING ANY PUBLIC
COMMENT. ONCE WE'VE HEARD OVER
WITNESSES, WE WILL HAVE A PUBLIC
COMMENT PERIOD FOR THOSE WHO
WISH TO COMMENT ON TOPICS ON
TODAY'S AGENDA. BUT TODAY'S
HEARING AIMS TO UNDERSTAND WHAT
CALIFORNIA NEEDS TO HAVE A CLEAN
, RENEWABLE GRID THAT IS ALSO
RELIABLE FOR ITS RESIDENTS. THIS
SUMMER. MULTIPLE ENTITIES HAVE
PREDICTED THE CALIFORNIA'S GREAT
COULD BE VULNERABLE TO ENERGY
SHORTFALLS IN THE CASE OF
EXTREME HEAT WAVES. WE'LL HEAR
MORE FROM THE REPRESENTATIVES ON
THIS ISSUE SOON. BUT FIRST CLOSE
TO UNDERSTAND WHY WE'RE IN THIS
SITUATION. DESPITE WHAT YOU HEAR
ON FOX NEWS. THE CAUSE OF
POTENTIAL SHORTFALLS IS NOT
RELIANCE ON RENEWABLE ENERGY.
MEETING OUR GOALS 100% CLEAN
ELECTRICITY BY 2045 IS STILL THE
KEY COMPONENT IN FIGHTING
CLIMATE CHANGE AND IN, UH,
PREVENTING THESE WEATHER
CONDITIONS IN THE FIRST PLACE.
TODAY'S HEARING WILL LAY OUT WHY
CALIFORNIA IS FINDING OURSELVES
IN THIS SITUATION. THE DECLINE
OF HYDROPOWER, EXTREME HEAT
AFFECTING NEIGHBORING STATES AND
REGIONAL IMPORTS AND THE DELAYS
ON NEW INSTALLATION FROM THE
PANDEMIC. THIS ISSUE WILL NOT
BECOME EASIER TO SOLVE IN THE
FUTURE. IN FACT, CLIMATE CHANGE
IS ANTICIPATED TO MAKE THESE
SUMMER CONDITIONS MORE INTENSE.
AND FREQUENT MEANING MORE HEAT
WAVES. LESS HYDROPOWER.
INCREASES IN WILDFIRES
THREATENING TRANSMISSION LINES
YEAR AFTER YEAR. THAT'S WHY WE
NEED TO BE ACTING NOW TO SUPPORT
CURRENT AGENCY AND ENTITY
PLANNING AND RESOURCE DEPLOYMENT
TO ENSURE CALIFORNIA'S CREATED
ISN'T THREATENED FROM EXTREME
CLIMATE CONDITIONS EVERY SUMMER.
WE HAVE THE ABILITY TO IMPROVE
IMPROVE THE GRID RELIABILITY
WITH A VARIETY OF TOOLS THAT
WILL BE DISCUSSED TODAY. AND
THIS IS WHAT WE'RE CALLING KIND
OF POLICY TOOLKIT OF SORT IS
MEANT TO ADD URGENCY ATTENTION
AND HOPEFULLY ENCOURAGE EFFORTS
TO ENGAGE AND PRACTICALLY
SUPPORT TECHNOLOGY AND POLICY
SOLUTIONS TO IMPROVING
RELIABILITY. THE POTENTIAL FOR
BLACKOUTS IS A TROUBLING
PROSPECT. WE NEED TO FIGURE THIS
OUT NOW BECAUSE CALIFORNIANS ARE
DEEPLY RELIANT ON A CONSISTENT
UNINTERRUPTED STREAM OF
ELECTRICITY TO HOSPITALS,
SCHOOLS, EMERGENCY SERVICES ALL
NEED UNDER INTERRUPTED POWER. SO
WHAT WE'LL DO NOW IS HEAR FROM
OUR FIRST PRESENTER THAT TO
UNDERSTAND BETTER. THE RISKS AND
WHY WE'RE IN THIS SITUATION. OUR
FIRST PRESENTER. WE'RE FORTUNATE
TO HAVE THE CHIEF OPERATING
OFFICER OF THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR,
MARK ROTH LETTER WILL BE
TESTIFYING REMOTELY WELCOME, MR
ROTH LETTER. GOOD MORNING,
SENATOR BECKER. CAN YOU HEAR ME?
OKAY. YES. GREAT. THANK YOU. AND
THANK YOU FOR CONVENING THIS, UH
, HEARING ON A VERY IMPORTANT
SUBJECT. I WILL BREATHE. BE
BRIEF AND DESCRIBING, UM, FROM
MY PERSPECTIVE, WHAT'S HAPPENING
IN THE GRID AND THE CHALLENGES
FACING THE GRID AT THIS POINT?
UM I'LL START OFF BY SAYING THAT
I HAVE BEEN WITH THE CALIFORNIA
SO FOR 25 YEARS, THE LAST
PROBABLY 12 YEARS I'VE BEEN
INVOLVED IN INTEGRATING AND
HELPING TRANSFORM THE GRID TO A
CLEAN, UH AND RELIABLE AND
AFFORDABLE ENERGY GRID. BUT I
WILL SAY THAT IN THE LAST FEW
YEARS WE'VE SEEN THIS
TRANSFORMATION, THE PACE OF
TRANSFORMATION INCREASE AND AS A
RESULT OF THAT PAYS THE
TRANSFORMATION. WE'VE SEEN A
VARIETY OF THINGS THAT HAVE HAVE
OCCURRED. ONE IS, UH, THE LOAD
SHAPES HAVE CHANGED WHEN DEMAND
PEAKS AND WHEN SUPPLY IS
AVAILABLE HAS CHANGED AND
TYPICALLY IN PREVIOUS YEARS. UH
IT'S BEEN YOU ALWAYS TALK ABOUT
THE PEAK KIND OF FORTIFY PM AND
THAT WAS BEEN THE MOST
CHALLENGING PERIOD THAT HAS
SHIFTED AND THAT'S AS A RESULT
OF THE, UM REALLY THE PROGRESS
WE'VE MADE IN THE PEN. UM
BRINGING ADDITIONAL SOLAR
RESOURCES TO BEAR. BUT THE
CHALLENGES THAT THE SOLAR
PRODUCTION DOES NOT CONTINUE
AFTER AROUND 6 TO 8 P.M. AND AS
A RESULT OF THAT THE DEMAND FOR
ENERGY STILL CONTINUES TO EXIST
IN THAT LATER EVENING HOURS, SO
WHILE WE CAN SAY THAT WE'VE
ACTUALLY MET SOME OF THE
MAJORITY OF THE LOAD GROWTH WITH
BRINGING ON SOLAR RESOURCES THAT
LOADS STILL EXISTS AND ACTUALLY
COMES BACK ONTO THE SYSTEM. TO
BE NEEDING TO BE SERVED LATER IN
THE EVENING, AND THAT'S WHAT WE
CALL THE NET PEAK PERIOD AND
THAT'S BEEN THE MOST CHALLENGING
PERIOD OF LATE. AND INDEED, IN
THE AUGUST 2020 EVENTS, THAT IS
WHEN THAT WE HAD THE MOST
CHALLENGING ISSUES SOLAR COMING
DOWN WHEN VERY LOW BECAUSE OF
THE HOT TEMPERATURES. AND THAT
BECAME THE MOST CHALLENGING
ISSUES. I WILL SAY THAT IT'S
THIS TRANSFORMATION, UH, WAS
EXPECTED AND IN FACT, UH AH
RESOURCE PLANNING AND RESOURCES
. UH BEING ADDED TO THE SYSTEM
WERE AUTHORIZED TO START TO LEAN
INTO THIS TRANSFORMATION, BUT I
WILL SAY THAT BECAUSE OF CLIMATE
CHANGE EFFECTS AND OTHER EFFECTS
. THE PACE AND THE DYNAMIC
CHANGES HAVE BEEN MORE INTENSE
THAN WHAT THE NEW RESOURCES
COULD KEEP UP WITH. YOU KNOW
WHAT ARE THOSE ADDITIONAL
CHANGES THAT HAVE OCCURRED THAT
HAVE BEEN MORE INTENSE. ONE IS
WHAT WE'VE EXPERIENCED IS WEST
WIDE EXTREME WEATHER EVENTS AND
DURING WEST WIDE, EXTREME
WEATHER EVENTS ARE NORMAL
ABILITY TO ACCESS ENERGY FROM
OUTSIDE SURPLUS ENERGY FROM
OUTSIDE REALLY DECREASES, AND
WE'VE SEEN THE SITUATION WHERE,
UH, WHERE IT'S BEEN HOT ACROSS
THE WEST, THE AVAILABILITY OF
SUPPLY TO COME INTO CALIFORNIA
HAS SIGNIFICANTLY DECREASED IN
THOSE PERIODS. SECOND IS THE
SIGNIFICANT CHANGE WITH MOUNT
MOUNT OF UM, THE RESULTS OF
DROUGHT CONDITIONS, PERSISTENT
DROUGHT CONDITIONS, AND THAT'S
THE THAT'S DECREASE OUR ABILITY
TO USE THE HYDRO SYSTEM AND
AVAILABILITY OF ENERGY AND THE
HYDRO SYSTEM. UM THIRDLY, WE'VE
CONTINUED TO SEE, UH, AFFECTS AS
A RESULT OF WILDFIRE RISK AND
THE WILDFIRE RISK IS REALLY, UH
, OBVIOUSLY HAS SIGNIFICANT
IMPACTS ON AH PUBLIC BUT ALSO
HAS IMPACTS ON THE TRANSMISSION
SYSTEM. AND TO THE EXTENT THAT
THE AVAILABILITY OF TRANSMISSION
SYSTEM IS IMPACTED AND BEING
ABLE TO IMPORT SUPPLIES OF
ENERGY THAT BECOMES A NEW
COMPONENT OF CLIMATE CHANGE.
RISK UM THIS IS SOMETHING THAT
WE EXPERIENCED 2021 WITH THE
WHITE BOOTLEG FIRE IN SOUTHERN
OREGON, WHERE WE WERE CUT OFF
FROM ABOUT 3 TO 4000 MEGAWATTS
OF TRANSFER CAPABILITY. AT THE
MOST CRITICAL TIME DURING A HOT
SUMMER PEAK CONDITION. UM, SO
THAT'S A NEW ELEMENT OF RISK
THAT WE'RE FACING AND THEN
LASTLY, WE ARE EXPERIENCING
CHALLENGES WITH COVID AND OTHER
, UH, EFFECTS OF SUPPLY CHAIN
WHICH NOT ONLY AFFECTS THE
REALLY AFFECTS THE NEW RESOURCES
COMING ON THE SYSTEM AND THE
AVAILABILITY AND THE ABILITY TO
INTEGRATE AND BRING THOSE NEW
RESOURCES ON A TIMELY MANNER. SO
AS I STATED BEFORE, THERE IS A
SIGNIFICANT AMOUNT OF RESOURCE
DEVELOPMENT THAT HAS BEEN
AUTHORIZED, UM UM, BY THE CPUC
ABOUT, UM, BETWEEN THE FIRST
RANCH ABOUT 3300 AND ANOTHER
11,500 MEGAWATTS OF ADDITIONAL
CAPACITY BY 2026 ROUGHLY. AS A
RESULT, WE WHAT WE'VE LOOKED AT
, UH AND WE LOOKED AT IT IN THE
LAST FOR THIS SUMMER AND GOING
FORWARD. WE'VE LOOKED AT NOW
WHAT THE CAPACITY EXPECTED
CAPACITY WILL BE ON THE SYSTEM.
AND WHAT THE WHAT WITH THE
CHANGES OF CONDITIONS WITH THE
HIGHER LOAD CONDITIONS AS WELL
AS THE DROUGHT CONDITIONS AND
CONTINUED RETIREMENT OF
RESOURCES. WHAT WE'VE OBSERVED
IS THAT WE ARE NOT MEETING OR
WHAT WE CALL OUR ONE AND TWO 10
RELIABILITY OR EXPECTED. MAKE
BACKUP ARE ONE IN 10 YEAR EVENT
CRITERIA, WHICH IS BASICALLY
SAYS ONE EVENT IN 10 YEARS, YOU
WOULD WANT TO HAVE WITH LESS
THAN ONE EVENT IN 10 YEARS WHERE
YOU HAVE INSUFFICIENT SUPPLY. UM
THIS IS THE SYSTEMS ARE NOT
DESIGNED THAT YOU CAN GUARANTEE
THAT THERE WILL NEVER BE A
SHORTFALL FOR ALL CONDITIONS
COVERING ALL STATISTICAL, UH,
OUTLIERS, BUT WHEN WE TRY TO
TARGET IS A RELIABLE LEVEL RIGHT
LIABILITY LEVEL, THIS ONE IN 10
YEAR EVENT AND WHAT WE'VE
OBSERVED DOING STATISTICAL
ANALYSIS IS THAT WE HAVE NOT
ACHIEVED THAT ONE IN 10 YEAR
LEVEL CRITERIA, AND IN FACT,
WE'RE ABOUT 1700 MEGAWATTS
SHORT. OF ACHIEVING THAT
CRITERIA THIS YEAR. NOW WE ARE
CONTINUING TO BRING ON RESOURCES
TO HOPEFULLY CLOSE THAT GAP, UH
, IN FUTURE YEARS, BUT THEN WE
GET ANOTHER DYNAMIC THAT'S COMES
INTO PLAY AROUND 2024 2025. THAT
IS, WE WILL HAVE A ADDITIONAL
RETIREMENT OF ADDITIONAL
RESOURCES, INCLUDING THE APPLE
CANYON AND THE ONES THEY'RE COOL
RESOURCES. AND THAT WOULD PUT US
IF LOOKING OUT IN THE FUTURE TO
2025, BASED ON THE EXPECTED
TRAJECTORY OF PROCUREMENT THAT
HAS BEEN AUTHORIZED, WE WILL
ACTUALLY STILL HAVE A GAP OF
ABOUT 1800 MEGAWATTS OF CAPACITY
TO MEET THAT ONE IN 10 YEAR
CRITERIA. THIS DOESN'T ACCOUNT
FOR MORE EXTREME LEVEL EVENTS.
AND SO THAT'S WHY, UM, WE WERE
LOOKING FOR ADDITIONAL, UM,
RESERVES AND CAPABILITY TO COVER
MORE EXTREME WEATHER EVENTS,
FIRE RISK EVENTS, AND THE NEW
ELEMENT IS, UH, CAN WE BUILD ALL
THOSE RESOURCES AND GET THEM
ONLINE IN TIME IN THE NEXT FEW
YEARS AND WITH THE SUPPLY CHAIN
RISK AS I MENTIONED EARLIER,
THERE IS SIGNIFICANT RISK THAT
THERE COULD BE DELAYS, PUTTING
THAT EVEN 1800 MEGAWATT
SHORTFALL. AT RISK, SO THE
QUESTION AT HAND IS WELL, WHERE
CAN WE BE DOING AND I THINK THE
ANSWER IS ONE IS WE NEED TO
CONTINUE TO BUILD, BUT WE NEED
TO BUILD AND HOW BASED ON
DIVERSE SET OF RESOURCES THAT
HAVE FIRM DISPATCH HERBAL
CAPABILITY AND WE SHOULD NEED TO
THE DIVERSITY PIECE OF THIS
COMES BACK FROM IF YOU JUST RELY
ON A SINGLE SET OF RESOURCES,
WHETHER IT BE SOLAR OR SOLAR
PLUS BATTERY. IS A SINGLE
TECHNOLOGY BATTERY STORAGE. YOU
MAY BE IN A SITUATION WHERE YOU
WERE OVER RELYING ON, UM, AGAIN
SUPPLY CHAINS THAT MAY BE AT
RISK. SO AT THIS POINT, YOU NEED
TO BROADEN AND DIVERSIFY THE MIX
OF RESOURCES AND MAKE SURE THAT
THOSE CLEAN RESOURCES HAVE A
ABILITY TO BE DISPATCHED WHEN
NEEDED FOUR SYSTEM CONDITIONS.
SO I THINK IN THE END, IT'S MY,
UH THE LAST THING I LIKE TO SAY
IS THAT AS WE DO THIS PRISON AS
WE CONTINUE TO TRANSITION, AND
WE ARE EXPECTING THE RETIREMENTS
, WE NEED TO MAKE SURE THAT THE
NEW RESOURCES ARE BOTH INSTALLED
AND AVAILABLE AND OPERATING AND
SUSPECTED. UM BEFORE WE LET
ADDITIONAL RESOURCES GO THAT ARE
CRITICAL TO RELIABILITY. UM AND
SO THAT BRINGS UP THE
CONSIDERATION OF HOW DO WE MAKE
THIS TRANSITION WORK? AND WHAT
OTHER THINGS DO WE NEED TO
CONSIDER AS WE CONTINUE THIS
TRANSFORMATION. UM, THERE ARE
SOME ABILITIES TO, UH, LOOK AT
THE DIFFERENT TYPES OF
TECHNOLOGIES, INCLUDING DEMAND
RESPONSE. UH OTHER TECHNOLOGIES
OF STORAGE, UH, AND A BROADER
SET OF RENEWABLE RESOURCES,
INCLUDING GEOTHERMAL AND OTHER
CLEAN RESOURCES TO BROADEN THAT
MIX OF AND SPREAD OUT THE
DIVERSITY AND SPREAD OUT THAT
RISK. UM WITH THAT I WILL STOP
HERE AND I'LL SEE IF THERE'S ANY
QUESTIONS REGARDING MY COMMENTS
TODAY. THANK YOU VERY MUCH. AND
AS TO RECAP QUICKLY, WE TALKED
ABOUT THE WEST WIDE EXTREME
WEATHER EVENTS, DROUGHT
CONDITIONS, WILDFIRE RISKS AND
COVID OTHER EFFECTS ON SUPPLY
CHAIN AS REASONS THAT, UM HAVE
HAVE HINDERED OUR ABILITY. UM
NOW TO HAVE RELIABILITY. THERE'S
REALLY THE CAUSES OF THE RISK OF
BLACKOUTS IN THAT WE HAVE TO TRY
TO PREPARE FOR THIS KIND OF WENT
IN 10 YEARS EVENT AND NOT
ACHIEVED THAT YET BECAUSE OF
THIS OTHER REASONS ABOUT 1700
MEGAWATTS SHORT, UM AND TALKED A
LITTLE BIT ABOUT SOME OF WHAT WE
WHAT WE CAN DO. UM I HAVE A
COUPLE OF THOUGHTS NEVER WANTED
TO FIRST TURN OVER TO MY
COLLEAGUES TO ASK ANY QUESTIONS
. AND IF YOU WANT TO KNOW,
SINISTER, AND HE ALSO HAD SOME
KIND OF OPENING REMARKS YOU WANT
TO MAKE AS WELL. OKAY YEAH.
THANK YOU, MR CHAIR. MAYBE I'LL
JUST WORK WITH MY SENTIMENTS AT
THE OUTSET. WE'RE GOING TO BE
INTO QUESTION FOR MR MR ROTH
LEADER AS WELL. I'M REALLY GLAD
YOU'RE HOLDING THIS HEARING, AND
I JUST WANT TO DIG INTO DETAILS
TODAY. I MEAN, THAT'S WHY THIS
SUBCOMMITTEE IS HERE. AND UM, IN
THAT SENSE, WE HAVE REALLY GOOD
PEOPLE TO JUST SHOW WHAT KIND OF
MEGAWATTS THEY CAN BRING ONLINE
FAST, AND THAT'S THE SITUATION
WE'RE IN, AND WE JUST WANT TO
MAKE SURE THAT THE MARKETPLACE
WE'RE WORKING IN CALIFORNIA AND
THE INTENT WE HAVE. IS TO
ACTUALLY GIVE ALL THESE
TECHNOLOGIES AND ALL THESE
COMPANIES AND ABILITY TO
COMPETE. AT A VERY EXCITING TIME
, AND THIS IS GOING TO BE THE
NEXT FEW YEARS WILL BE AN
INFLECTION POINT IN THE GRID IN
NOT JUST CALIFORNIA, BUT THE
WHOLE COUNTRY. UM, THE FINANCING
IS THERE. MM THE DEMAND
CERTAINLY IS THERE FOR US TO
PERFORM AT THE POLITICAL LEVEL.
THE PEOPLE ARE COUNTING ON FOR
US TO DELIVER AND NOT GO BACK TO
THE WAYS OF THE PAST AND NOT
FALL INTO THE GERMAN. UH DYNAMIC
WHERE YOU HAVE A GAS DEPENDENT
SYSTEM AND FIND YOURSELF
LEVERAGED INTO SOME SOME VERY
SCARY POLITICS AND MORE THAN
POLITICS. WE'RE LOOKING AT A WAR
RIGHT NOW GLOBALLY BECAUSE
PEOPLE DIDN'T PLAN AHEAD ON HOW
THEY'RE GOING TO MANAGE THEIR
GRID. LUCKILY WE DON'T HAVE
RUSSIA AS OUR NEXT DOOR NEIGHBOR
HERE IN CALIFORNIA. BUT THAT
SAME VULNERABILITY. FOR FAILURE
TO PLAN AHEAD AND FOR A BLIND
RELIANCE ON TECHNOLOGIES OF THE
PAST AND FOR FOSSIL GENERATION
AND ANOTHER. OUTDATED TECH.
THAT, BY THE WAY, LIVES IN ALL
THE ENVIRONMENTAL JUSTICE
COMMUNITIES IN CALIFORNIA. JUST
HAVE TO LEAN BACK ON THAT SOLVE.
THIS PROBLEM SEEMS VERY IN
CALIFORNIA, AND I THINK WE CAN
HOW WE APPROACH THIS. THESE GAPS
BOTH IN THE NEAR TERM BETWEEN
NOW AND 2025, IN THE MEDIUM
TERM, SAY BETWEEN NOW AND 2030.
I THINK WE CAN SHOW THE WORLD
HOW IT ACTUALLY GETS DONE, AND I
THINK THE WORLD CAN LEARN A LOT.
AND I THINK MOST IMPORTANTLY,
THE RATEPAYERS AND THE PEOPLE OF
CALIFORNIA CAN SAVE SOME MONEY
AND JUST KEEP THEIR LIGHTS ON.
MY QUESTION FOR MR ROTH LEADER
IS ABOUT THE ABILITY FOR TWO
SECTORS THAT, UM OR ALTERNATIVES
TO TURNING ON GAS, OTC OR PEKAR
SYSTEMS OR FOSSIL ENERGY. UM, OR
NUCLEAR POWER AS A STOPGAP FOR
WHAT? WE'RE LOOKING FOR THE GAP
WE'RE LOOKING AT ON THOSE HOT
SEPTEMBER EVENINGS OUT IN 2025.
MY UNDERSTANDING IS THAT THERE
pRESPONSE AT THE P. YOU SEE THAT
THERE'S A PROCEEDING THAT HASN'T
BEEN COMPLETED FOR A NUMBER OF
YEARS, AND THAT THE WAY EVEN THE
LEGISLATURE CURRENTLY HAS
DRAFTED OUR FRAMEWORK. UM THAT
IF YOU ARE MERELY IN A TERRITORY
THAT IS ELIGIBLE FOR AN IOU
DEMAND RESPONSE PROGRAM JUST
ELIGIBLE THAT YOU'RE NOT
ENROLLED IN ONE, BUT THAT YOU'RE
ELIGIBLE FOR THAT PROGRAM.
YOU'RE THAT ALL THE THIRD
PARTIES ARE ESSENTIALLY BOXED
OUT OF THAT MARKET. UM, SO IF
THE PUC DECIDED TO TAKE ACTION
ON DEMAND RESPONSE IN TERMS OF
HOW THEY LOOK AT CAPACITY VALUE
OF THAT OF THAT RESOURCE AS WELL
AS THIS ELIGIBILITY QUESTION AND
SOME OF THE OTHER CAPS IN
CURRENT LAW HAS ISSO SORT OF
PROJECTED OUT. WHAT KIND OF HOW
MANY MEGAWATTS YOU THINK COULD
COME OUT OF THESE NEWER DEMAND
RESPONSE PROGRAMS. UM HOW MUCH
COULD COME ONLINE? AND I WOULD
JUST THE CAVEAT, I WOULD SAY IS
THE LAST TIME WE ASKED INDUSTRY
FOR THEIR HELP AND THEIR DEMAND
RESPONSE AND THAT WAS AT A
GUBERNATORIAL LEVEL. UM LONG
BEHOLD, WE FOUND A GIGAWATT IN A
DAY. UM WE HAVE NOTCODIFIED
THAT KIND OF PROGRAM YET, OR WE
HAVE NOT PUT THAT INTO PLACE OR
FORMALIZED IT. BUT HOW MUCH MORE
DEMAND RESPONSE. DO YOU THINK WE
COULD GET ONLINE IF SOME OF
THOSE PENDING REFORMS WERE
ADOPTED? YEAH I DON'T KNOW
EXACTLY HOW MUCH WOULD BE
POTENTIAL. I'LL KNOW I CAN SAY
THAT. IN AUGUST OF 2020 AND
AGAIN IN 2021. WHEN WE REALLY
ASKED FOR THE PUBLIC TO RESPOND
AND REDUCE OUR DEMAND, WE DID
SEE APPROXIMATELY 2 TO 3000
MEGAWATTS OF ADDITIONAL
CONSERVATION AND RELIEF NOW,
WHAT WAS HOW THAT RELIEF WAS
COMING ABOUT WHETHER THERE WAS
POTENTIALLY SOME BACKUP
GENERATORS OR STORAGE THAT WAS
STARTING UP? IT'S NOT QUITE
CLEAR, BUT, UM, I KNOW THAT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION HAS ADOPTED AND IT
TRIED TO GET SOME ADDITIONAL
EMERGENCY LOAD RELIEF. PROGRAMS
IN PLACE. UM I THINK THAT HAS
BEEN ADDING AT LEAST ABOUT 800
MEGAWATTS TO THE EXISTING DEMAND
RESPONSE CAPABILITY, BUT I WILL
SAY THAT THE DEMAND RESPONSE
CAPABILITIES PROBABLY IN ONE OF
THE AREAS UNTAPPED POTENTIAL IN
THE SYSTEM, BUT THAT DEMAND
RESPONSE CAPABILITY NEEDS TO BE
SOMETHING THAT WE EITHER HAVE A
MEASURABLE RESPONSE OF WHAT? HOW
MUCH IT'S ACTUALLY EXPECTED TO
REDUCE THE LOADS THAT WE CAN
TAKE. UM WE CAN UNDERSTAND THAT
FROM A LOAD MODIFICATION
PERSPECTIVE. AND OR WE HAVE
THOSE PROGRAMS AVAILABLE FOR
DISPATCH BY THE MARKET WHEN
NEEDED. LOOKING FORWARD, I WILL
SAY, AND THIS IS SOMETHING THAT
IS AN OPERATIVE REAL OPPORTUNITY
AS YOU ELECTRIFY THE SYSTEM. AH
AND YOU, D CARBONIZED
ELECTRIFIED. LET'S SAY MOBILITY
WITH CARS OR HEATING OR COOLING
. THERE IS NEW OPPORTUNITIES TO
ACTUALLY HAVE THOSE WHAT IS
GOING TO BE NEW DEMAND
INCREASING IN THE FUTURE. THOSE
IS REAL, THOUGH THAT IS REAL
OPPORTUNITY TO ACTUALLY IF YOU
CAN MANAGE THAT NEW DEMAND. AND
BE ABLE TO CONTROL IT AND REDUCE
IT WHEN YOU HAVE THESE EXTREME
TYPES OF EVENTS, THAT IS A NEW
OPPORTUNITY AS WE TRANSFORM
OTHER SECTORS AND ELECTRIFY THE
OTHER SECTORS AWAY FROM OTHER
FUELS, SO I APPRECIATE THAT
FEEDBACK, AND I GUESS I WOULD BE
CURIOUS IN LIGHT OF THE
GOVERNOR'S GOALS ON I THINK IT'S
CLIMATE HEALTHY AND CLIMATE
FRIENDLY HOMES. EVEN JUST, YOU
KNOW, PUTTING STACK IN THE D
CARB GOALS IF THEY ARE ACHIEVED
BY WHAT THE GOVERNOR HIMSELF IS
PROJECTED ALONG WITH THE
ADMINISTRATION'S GOALS, HOW MUCH
DEMAND RESPONSE CAPACITY WITH
ALL THOSE SORT OF THIS NEW
SMARTNESS OF OUR HOMES,
ESSENTIALLY THE TWO WAY STREET
THAT BECOMES ENERGY NOW? HOW
MUCH CAN WE PROJECT AND BY WHEN
AND STARTING TO MARKET SHIFT SO
QUICKLY, RIGHT? THE IRA JUST
PASSED. NOW IT'S GOING TO BE
THIS RENAISSANCE IN BUILDING
DECARBONIZATION AND ZEV FLEET
THAT WE DIDN'T ANTICIPATE. HOW
CAN YOU UPDATE YOUR PLANNING
QUICKLY ENOUGH TO PLAY CATCH UP
TO ALL THIS EXCITING? THESE
DEVELOPMENTS. YEAH I AGREE WITH
YOU. ONLY YOU NEED TO UPDATE THE
PLANNING AND YOU? I THINK YOU
ALSO HAVE TO MAKE SURE THAT
THERE ARE PROPER INCENTIVES AND
PRICE SIGNALS SO THAT THE THOSE
NEW LOADS AND THOSE SMART
DEVICES ARE RESPONDING TO A SET
OF PRICE SIGNALS THAT ARE
ACTUALLY RESPONSIVE TO ACTUAL
SYSTEM CONDITIONS. IF YOU HAVE
AN INCONSISTENT PRICING, THOUGH,
WITH A VERY SMART DEVICE, YOU
MAY BE LOSING THE EFFECTIVENESS
OF THOSE, UH, THOSE NEW
OPPORTUNITIES. AGREED MY LAST
LINE QUESTIONING OF MR CHAIR OF
YOU INDULGE ME, UM ON IN ANOTHER
RESOURCE SECTOR, SO IN THE SORT
OF RENEWABLES AND STORAGE SPACE,
UM OR THE SORT OF, YOU KNOW,
CLEAN DISPATCH HERBALZERO
CARBON ENERGY ARENA. UM MY
UNDERSTANDING IS THAT THERE'S A
FAIR AMOUNT OF CAPACITY OUT
THERE. UM. AVAILABLE TO COME
ONLINE AND FEED OUR GRID. BUT
FOR UM, INTERCONNECTION
CHALLENGES. UM, AND SO WHETHER
IT'S THE ACTUAL TRANSMISSION
UPGRADES THEMSELVES OR JUST THE
CONTRACTING MODELS AROUND THIS
KIND OF POWER. UM HOW MUCH IS IN
IN? Q IF YOU WILL, OR SORT OF
JUST WAITING TO BE SWITCHED ON
OUT THERE THAT BECAUSE OF EITHER
OUR MARKET RULES UNDER THE RPS,
OR BECAUSE OF ACTUAL PHYSICAL
CONSTRAINTS, HOW MUCH IS OUT
THERE RIGHT NOW THAT THAT WE
COULD SWITCH ON IN THE SAY NEXT
TWO YEARS? SO I THINK THERE'S
TWO COMPONENTS TO WHAT'S
AVAILABLE IN THE NEXT TWO YEARS
. UH ONE IS THIS IS WHAT I
MENTIONED ABOUT SUPPLY CHAIN AND
, UM THERE IS THERE IS IN THE
NEAR TERM, THERE'S WELL OVER
PROBABLY 3 TO 5 GIGAWATTS OF
TRANSMISSION CAPABILITY THAT
REALLY YOU CAN GET
INTERCONNECTIONS ON. IF YOU DO
IT IN THE RIGHT PLACES, RIGHT
LOCATIONS, UH, AND THEY'RE
ALREADY IN THE REQUEST QUEUE IN
THE RIGHT LOCATIONS. IF YOU
DEVELOP THOSE RESOURCES, IF YOU
CAN FIND FIND THE SUPPLY CHAIN,
THERE'S REALLY NOT AN
INTERCONNECTION ISSUE IN THE
LONGER TERM. YES WE NEED WE WILL
NEED TO HAVE ADDITIONAL
TRANSMISSION DEVELOPED. AND WE
WILL HAVE TO STREAMLINE THE
PERMITTING AND TRANS AND
INTERCONNECTION PROCESSES.
THERE'S NOT A SHORTAGE OF
PROJECTS AND IN THE LONGER TERM
, UH, DEMAND THERE'S OVER 250 50
40 GIGAWATTS OF, UH, RESOURCES
THAT HAVE APPLIED FOR
INTERCONNECTION. SORRY DID YOU
SAY 240 GIGAWATTS? YES YES. OKAY
SO THERE, THERE'S PLENTY OF
RESOURCES WANTING TO
INTERCONNECT TO THE SYSTEM MORE
THAN WHAT WE WOULD NEED FOR THE
TRANSFORMATION. THE QUESTION
THAT IS REALLY THE CHALLENGING
IS MAKING SURE THAT THOSE
RESOURCES THAT ARE WANTING TO
GET INTERCONNECT OR WANTING TO
COME IN TO GET DEVELOPED ONE YOU
CAN FIND INTERCONNECTION, THE
RIGHT PLACE RIGHT LOCATION. OR
YOU DEVELOP SOME ADDITIONAL
TRANSMISSION TO SUPPORT THOSE TO
YOU NEED CONTRACTING AND POWER
PURCHASE AGREEMENTS BECAUSE
WITHOUT POWER PURCHASE
AGREEMENTS, THESE PROJECTS WILL
NOT MOVE FORWARD. AND THEY WERE
JUST CLOGGING UP THE QUEUE
WAITING FOR POWER PERSON
AGREEMENTS. YOU'VE GOT TO CLEAR
THAT OUT BY ACTUALLY GETTING
PROCUREMENT TO ACTUALLY GET.
THESE RESOURCES ACTUALLY
PROCURED AND DEVELOPED. AND THEN
THIRDLY, YOU NEED TO SOLVE THE
SUPPLY CHAIN ISSUES AND ALIGN
THE SUPPLY CHAIN ISSUES OVERCOME
THOSE TO MAKE SURE THOSE
RESOURCES THAT CAN BE DEVELOPED
HAVE THE SUPPLY CHAIN ARE IN THE
RIGHT LOCATION ARE THE ONES
GETTING CONTRACT ID AND ARE
MOVING FORWARD. AND THAT IS THE
CHALLENGE. HOW DO YOU COORDINATE
ALL THOSE DYNAMIC PIECES TO COME
TOGETHER TO GET TO AN EFFICIENT
DEVELOPMENT AND INTERCONNECTION
OUTCOME? IT'S NOT JUST
INTERCONNECTION. IT'S ALL THREE
OF THOSE THINGS AND MY
UNDERSTANDING FROM THE PC
PRESIDENT'S TESTIMONY LAST WEEK
BEFORE ENERGY COMMITTEE THAT
THAT THAT'S PARTLY WHAT THE ROLE
OF COMING TO MESS UP THE NAME.
TED NO. IS IT? YES THAT TED TED
TASK FORCE IS EXACTLY TRYING TO
DO THAT COORDINATION TRYING TO
DO THAT MATCHMAKING AND ENSURE
THAT THOSE RESOURCES THAT ARE IN
THE BEST POSITION ARE THE ONES
THAT ARE GETTING HOPEFULLY
GETTING CONTRACT ID. AND IF
THERE ARE SUPPLY CHAIN ISSUES,
THEY START TO UNDERSTAND WHAT
THE SUPPLY CHAIN ISSUES ARE AND
TRY TO OVERCOME THOSE, UH TO
AGAIN DO AS I JUST SAID, TRY TO
COORDINATE AND MAKE SURE THAT
THOSE RESOURCES THAT HAVE A
SUPPLY CHAIN HAVE THE
INTERCONNECTION CAPABILITY. OR
THE ONES THAT ARE MOVING FORWARD
AND KEEP MOVING FORWARD AND JUST
CONTRACTED. THAT'S PROBABLY THE
LAST YEAR. THOSE ARE THE ONES
THAT ARE GETTING CONTRACTING. IT
MAKES NO SENSE TO CONTRACT WITH
THE RESOURCE, EVEN THOUGH IT MAY
BE CHEAPER IF IT DOESN'T HAVE
THE SUPPLY CHAIN AND
INTERCONNECTION CAPABILITY, BUT
WHAT WE'RE TALKING ABOUT HERE IS
NEW PROJECTS TO COME ONLINE AND
COORDINATION. BUT I GUESS MY
EARLIER QUESTION AND I WANT TO
MAKE SURE I AM I UNDERSTANDING
THIS THAT I THOUGHT THERE WAS
CAPACITY THAT DOESN'T NEED ANY
SUPPLY CHAIN WORK THAT BECAUSE
OF JUST HOW IT'S TREATED UNDER
THE RPS BECAUSE IT'S OUT OF
STATE, FOR EXAMPLE, OR IN A
DIFFERENT MARKET PLACE THAT THAT
KIND OF INTERCONNECTION. UM.
ISN'T HAPPENING AND THAT IS
AVAILABLE AND THAT THE MARKET IS
GONNA OFFER IT TO US. BUT WE'RE
NOT TAKING. THAT THAT THERE ARE
PROJECTS OUT THERE. BOTH I WOULD
SAY IN STATE AND OUT OF STATE,
YOU NEED TO HAVE CONTRACTS WITH
THOSE RESOURCES AND YOU NEED TO
HAVE YOU NEED TO HAVE AN
AUTHORITY TO GO AND CONTRACT
WITH THOSE RESOURCES. I THINK
THE AUTHORITY TO PROCURE IS NOW
IN PLACE. NOW THE CONTRACTING
HAS TO GO EFFICIENTLY GET THOSE
RESOURCES CONTRACT ID. AND AGAIN
THEY MAY BE MORE EXPENSIVE. BUT
IF THEY'RE AVAILABLE RIGHT NOW,
YOU MAY NEED TO TAKE AND
CONSIDER THOSE RESOURCES THAT
ARE AVAILABLE, EVEN THOUGH THEY
MAY NOT BE THE LOWEST COST
RESOURCES OFFERED. AND SO THAT
SO, FOR EXAMPLE, IN OUR I THINK
WE'VE GOT A LOT OF EDISON FOLKS
HERE. I KNOW NORTHERNERS ARE
SUBCOMMITTEE CHAIR, BUT EDISON
AND THE SOUTHERN CALIFORNIA
AREA. 11.5 GIGAWATTS, I THINK IS
WITH THE PUC ORDERED IN THEIR
PROCUREMENT. SO THAT'S THAT'S
WHAT YOU'RE SAYING IS AUTHORIZED
. THE LAST PROCUREMENT IS 11,500
. YEAH 11.5 GIGAWATTS OF
AUTHORIZED PROCUREMENT 9.5.
WATTS TO 2025. THEN THE LAST TWO
GIGAWATTS ARE BETWEEN 2026. I
THINK, 2028. SO THERE IS THERE
IS SUFFICIENT. THERE'S
AUTHORIZED PROCUREMENT. THOSE
EASY BE CONTRACTED. BUT THERE IS
RISK IN THAT 11,500. NOW WE'RE
SEEING ACTUAL RISK OF SUPPLY
CHAIN ISSUES, CAUSING DELAYS TO
POTENTIAL DEVELOPMENT OF THAT
11.5 GIGAWATTS. OKAY AND SO WHAT
DO YOU PROJECT AND WHEN YOU DO
YOUR PLANNING? HOW MUCH DO YOU
THINK THAT ACTUALLY COMES
ONLINE? BY 25. HOW MUCH OF THAT
9.5 DO YOU THINK WE ACTUALLY GET
ACCORDING TO OUR MODEL, I DON'T
MEAN YOU BUT WHAT IS WHAT IS THE
I SO PLANNING ON THAT THAT THIS
THIS IS A QUESTION THAT'S STILL
KIND OF OUT THERE. I TALKED
ABOUT THE 18 1800 MEGAWATT GAP.
THAT ASSUMES, UM, THAT THAT
PROCUREMENT COMES IN ON TIME, TO
THE EXTENT THAT THERE IS A 30 40
OR 50% DELAY RATE, AND THAT THAT
WILL INCREASE THAT POTENTIAL GAP
FROM 1800 TO WHATEVER THAT THAT
THAT DELAY IS SO IT COULD BE
KIND OF ADDITIONAL THOUSANDS OF
MEGAWATTS OF GAP IF THERE IS
SIGNIFICANT DELAYS IN THAT. IN
THE PROCUREMENT AND DEVELOPMENT.
UNDERSTOOD. WELL STAKES ARE HIGH
. WE APPRECIATE YOUR DILIGENCE
ON THIS. THANKS FOR LETTING ME
DRILL DOWN HERE FOR A SECOND.
ABSOLUTELY YEAH. THE GOAL AS
SENATOR AND SAID, IS TO GET INTO
THE DETAILS IN THE SUBCOMMITTEE
, DRAMATIC COLLEAGUES ANY
QUESTIONS? YEAH I HAD A COUPLE
OF QUICK QUESTIONS. THANK YOU
FOR YOUR TESTIMONY, AND I
APOLOGIZE FOR STOPPING IN LATE.
UM, I THINK EARLIER THIS MONTH
WE HAD A PRESENTATION FROM PC IN
THE ADMINISTRATION, AND I THINK
THEY PRESENTED US THAT THE WHEN
USING A ONE IN 10 YEAR EVENT
MODEL THAT WE'RE LOOKING AT A
GAP IN 2025 OF ABOUT 2000
MEGAWATTS, AND I GUESS I JUST
WANTED TO, UM, GET A LITTLE MORE
SPECIFIC ON THAT. UM WHAT IS THE
LIKELIHOOD OF THAT IF WE'RE
LOOKING AT ONE IN 10 YEAR EVENT
UM AND, UM, YOU KNOW, IS THAT
SOMETHING THAT WERE LIKELY TO
FACE HIS 2000? MEGAWATTS IS IT
IS IT SOMETHING THAT IS LESS
THAN LIKE THEM? JUST TRYING TO
GET A SENSE OF LIKE WHAT YOU SEE
IS THE PROBABILITY OF US FACING
THAT TYPE OF SHORTFALL. SO AS I
JUST MENTIONED CENTER SUR
QUESTION THAT 1800 MILLION OR
2000 MEGAWATTS GAP IS THE GAP AT
THIS POINT THAT WOULD BE
EXPECTED IF THERE WAS KIND OF A
PERFECT PROCUREMENT. AH OUTCOME
. IN OTHER WORDS, ALL THE
PROCUREMENT AUTHORIZED WAS
DEVELOPED ON TIME. AND YOU'D
SAY, WELL, WHY IS THAT AND THE
THINGS THAT CHANGED OVER THIS
TIME SINCE THAT PROCUREMENT HAS
OCCURRED IS THERE'S BEEN
ADDITIONAL LOAD GROWTH FORECAST
FORECAST IT SO YEAH, IN THAT
TIME PERIOD, SO THE LOAD HAS
INCREASED. THE LOAD FORECAST FOR
THAT TIME PERIOD HAS INCREASED,
SO THAT'S WHY THAT THAT THERE'S
THAT ADDITIONAL GAP. THAT'S
PREDICTED SO. MY THE ANSWER.
QUESTION IS THAT GAP UNLESS WE
DO OTHER THINGS AT THIS POINT IS
, THERE IS A HIGH PROBABILITY
YOU GOT NOW I WANT TO BE CLEAR.
THEY WANTED. A GAP IN ONE IN 10
DOES NOT MEAN THAT WE WILL HAVE
CERTAINTY AROUND LOW CHET EVENTS
. WHAT IT SAYS, IS THAT THE
PROBABILITY OF LOW CHET EVENTS
IS A HIGHER PROBABILITY THAN
WHAT YOU WOULD TYPICALLY WANT TO
PLAN FOR. IT DOESN'T MEAN THAT
THOSE LOCHHEAD EVENTS ARE
INEVITABLE, BUT THAT GAP AS
LARGER GAP FROM THE ONE IN 10.
CRITERIA INDICATES THAT YOU HAVE
A HIGHER PROBABILITY THAN YOU
WOULD WANT TO UNDER THOSE
CONDITIONS AND MAYBE JUST
SPECIFY UNDERSTANDING THAT WE
ARE PROJECTING OUT THAT WE WILL
HAVE, UM YOU KNOW, AGGRESSIVE
GROWTH IN PROCUREMENT AND NEW
PROJECTS COMING ONLINE. LET'S
BAKE THAT I WOULDN'T REALLY
TRYING TO UNDERSTAND IS THE ONE
IN 10. WHAT'S THE LIKELIHOOD?
THAT WE HAVE A ONE IN 10 YEAR
EVENT JUST FROM LIKE A
EXACTLY THAT THAT IS THE
PROBABILITY 10% IT'S A 10%
PROBABILITY THAT YOU WOULD HAVE
A EVENT LIKE THAT. AND THAT IS
TRYING TO SAY THAT BECAUSE YOU
HAVE THAT 10% CHANCE YOU'D WANT
TO MINIMIZE THAT POTENTIAL OF
LOAD SHED DURING THAT 10% OF
THEM. AND I THINK THIS GETS TO A
LITTLE BIT OF WHAT THE SENATOR
STERN WAS ASKING, BUT BOTH IN
THE NEAR TERM AND LONG TERM, I
MEAN, I GUESS WHEN I THINK ABOUT
THIS PROBLEM, AND I HAVE NOT
STUDIED IN THE DEPTH THAT YOU
ALL HAVE, BUT YOU WANT TO BUILD
IN REDUNDANCY, RIGHT? UM AND SO
YOU KNOW, WHERE DO WE SEE THE
BOTTLENECKS RIGHT NOW? AS FAR AS
BRINGING NEW PROJECTS ONLINE AND
NEW STORAGE IS IT IS IT IN THE
CAPITALS AND IN THE REGULATORY
APPROVALS, IS IT JUST IN THE
PLANNING AND IMPLEMENTATION? AND
IS THERE ANYTHING WE IN THE
LEGISLATURE CAN DO TO HELP SPEED
THAT UP? YEAH, AS FAR AS
SYMBOLS. IT'S WELL OKAY, SO
RENEWABLES AND STORAGE AGAIN. I
IN COMBINATION YOU NEED TO HAVE
COMBINATION NOW PROBABLY SOLAR
DEVELOPMENT AND STORAGE TO MEET
THAT LATER, NET PEAK PERIOD. AS
I SAID PREVIOUSLY, I THINK THAT
THE CHALLENGES ARE A THREE
PRONGED CHALLENGE. CAN YOU FIND
THE SUPPLY CHAIN? THOSE WHO HAVE
THE CAPABILITY OF DEVELOPING THE
RAW MATERIALS INTO THE BATTERIES
OR THE PANELS. CAN YOU FIND THAT
SUPPLY CHAIN THAT'S BEEN
CHALLENGED OF LATE TO CAN YOU
FIND REAR? WHERE TO LOCATE THOSE
SO THAT THEY THAT YOU CAN
MINIMIZE THE NEED FOR NEW
TRANSMISSION AND THE NEAR TERM
OR DEVELOPED NEW TRANSMISSION TO
SUPPORT THE LONGER TERM
DEVELOPMENT OF WHAT'S GOING TO
BE NEEDED IN EXCESS OF 40 TO 60
YEARS, LOTS OF ADDITIONAL
DEVELOPMENT AND WHERE DO YOU PUT
THAT? AND YOU HAVE ENOUGH, UM,
LEAD TIME TO DEVELOP THE
TRANSMISSION TO SUPPORT THAT NEW
DEVELOPMENT, INCLUDING
OVERCOMING AND STREAMLINING THE
PERMITTING CAPABILITY.
PERMITTING REQUIREMENTS FOR NEW
TRANSMISSION AND THEN THIRD IS
REALLY BRINGING ALL THAT
TOGETHER. DO YOU HAVE THE RIGHT
LOOK, DO YOU HAVE THE PROJECT IN
THE RIGHT LOCATION WITH THE
SUPPLY CHAIN? AND CAN YOU GET
THAT? UM, THAT PROJECT CONTRACT
ID WITH THE LOAD SURVEY INTO THE
OFF TAKER SO THAT FINANCIALLY
THAT PROJECT CAN MOVE FORWARD.
YOU NEED THOSE THREE THINGS TO
COME TOGETHER INTERCONNECTION
LOCATION SUPPLY CHAIN, AND THEN
THE OBVIOUSLY THE OFF TAKER
CONTRACTING WITH THAT RESOURCE.
THAT'S THE MIX OF THINGS THAT
HAVE TO COME TOGETHER ALL IN A
TIMELY MANNER TO KEEP THESE
THINGS MOVING ALONG. THANK YOU.
THANK YOU VERY MUCH. AND
FORTUNATELY, WE DO HAVE SOME
BILLS IN THE LEGISLATURE THIS
YEAR ON SOME OF THOSE PIECES,
PARTICULARLY AROUND TRANSMISSION
, AND, UM, APPRECIATE THE INFO
WE'VE GOTTEN FROM YOUR OFFICE ON
THOSE AS WELL JUST TO WRAP UP
ANY THING THAT YOU'VE NOT
MENTIONED THAT THAT FROM YOUR
PERSPECTIVE NEEDS FROM THE
LEGISLATURES TO PREVENT OR
REDUCE THESE RISKS IN THE LONG
RUN. OH I'LL JUST SAY THAT THE
DIVERSITY IN TERMS OF
DEVELOPMENT IS AN IMPORTANT BUT
DIVERSITY, REGIONAL AND
GEOGRAPHICAL DIVERSITY AS WELL
AS TECHNOLOGICAL. THE DIVERSITY
IS GOING TO BE IMPORTANT AND
THIS IS GOING TO MEAN THAT WE
WANT TO MAKE SURE THAT WE HAVE
THE ABILITY TO, UM, LEVERAGE THE
REGIONAL CAPABILITY. OF THE
SYSTEM. SO EVEN THOUGH I SAID
THAT THERE MAY BE TIGHTNESS OF
CONDITIONS ACROSS THE REGION,
OTHER PARTS OF THE REGION ARE
DEVELOPING NEW RESOURCES AS WELL
AS WELL. AND THE ABILITY TO
BRING IN, UH, LET'S SAY WIND
FROM OTHER PARTS OF THE REGION
WHEN WIND PRODUCTION IS HIGH,
BUT WHEN PRODUCTION OR SOLAR
PRODUCTION IS LOW IN CALIFORNIA,
BECOMES A REAL ADVANTAGE IF YOU
CAN LEVERAGE THAT REGIONAL
DIVERSITY IN THE SYSTEM, SO, UM
, APPRECIATE THE EFFORTS TO
CONTINUE TO LOOK AT REGIONAL
OPPORTUNITIES. UM AS WELL. JUST
SAY THAT THE ENERGY IMBALANCE
MARKET, THE WESTERN ENERGY
IMBALANCE MARKETS PRODUCED
SIGNIFICANT BENEFITS OVER $2
BILLION WORTH OF BENEFITS FOR AH
FOR THE REGION, INCLUDING ABOUT
40 50% OF THAT TO CALIFORNIA. UM
AND THIS IS JUST CONTINUING THE
ABILITY TO BOTH DEVELOP, UH,
RESOURCES WHERE THE YOU CAN AND
GET THEM DEVELOPED BUT ALSO
LEVERAGE THE REGIONAL CAPABILITY
OF THE SYSTEM IS GOING TO BE KEY
TO THE SUCCESS. WELL, THANK YOU
VERY MUCH. CERTAINLY WE HAVE
MUCH BUILDING TO DO HERE IN
CALIFORNIA, AND SO GOOD TO HEAR
THAT PERSPECTIVE AS WELL ABOUT
THAT TECHNOLOGY AND REGIONAL
DIVERSITY. THANK YOU VERY MUCH.
THANKS FOR THAT VALUABLE CONTEXT
ON THE CONDITIONS OF THIS
SUMMER'S RELIABILITY. THAT'S
REALLY ONE OF THE MAIN THINGS WE
WANTED TO GET TO UNDERSTAND THE
ROOTS OF IT AND START TO GET TO
SOLUTIONS. SO NOW WE'RE GOING TO
TURN TO ADVOCATES WHO HAVE LONG
BEEN CONSIDERING WHY
TRANSITIONING THE GRID. RELIABLE
QUEEN AND EQUITABLE MANNER IS
IMPORTANT. FIRST WE'LL HEAR FROM
MICHAEL COLVIN, WHO LEADS TO
CALIFORNIA ENERGY PROGRAM FROM
ENVIRONMENTAL DEFENSE FUND.
SECOND WE'LL HEAR FROM ALEXIS
SUDIRMAN, WHO'S THE PROGRAM
MANAGER OF THE ENERGY EQUITY
PROGRAM AT THE CALIFORNIA
VIOLENT JUSTICE ALLIANCE. FIRST.
WELCOME, MR COLVIN. GOOD MORNING
. SENATOR WANTED TO CONFIRM THAT
YOU CAN HEAR ME, OKAY? YES WE
CAN GO AHEAD STICK. GIVE ME ONE
MOMENT TO SHARE MY SCREEN. AND
HOPEFULLY, YOU'RE SEEING THIS.
ALL RIGHT. WELL, THANK YOU ALL
SO MUCH FOR HAVING ME TODAY AS
THE SENATOR MENTIONED. MY NAME
IS MICHAEL COLTON. I'M AN
ENVIRONMENT OF THE TENSE STAND,
AND I WAS ASKED TODAY AS THIS
PART OF THE HEARING TO TALK
ABOUT, BUT THE CAUSES AND, UM
SOME OF THE CONSEQUENCES OF
OVERLY RELYING ON FOSSIL FOR
RELIABILITY. AND SO I WILL BE
TALKING ABOUT THAT AND THEN ALSO
TALKING BRIEFLY ABOUT SOME OF
THAT NEAR TERM SOLUTIONS. UM. AS
MR ROTH LEADER JUST INDICATED,
AND RELIABILITY REALLY IS A
CONCERN OF WE DON'T HAVE POWER
ENOUGH POWER AVAILABLE THAT THIS
IS SOMETHING THAT CAN ALMOST
ALWAYS BE SOLVED WITH PROPER
PLANNING AND FORECASTING. THE
PROBLEM THAT THE STATE SCIENTIST
SOUTHLAND RIGHT NOW IS THAT
BECAUSE OF BOTH CLIMATE CHANGE,
SOME EXTREME WEATHER EVENTS, THE
PANDEMIC AND SOME OF THE OTHER
ITEMS THAT THE SENATOR
IDENTIFIED DURING HIS OPENING
COMMENTS. WHAT WOULD HAVE BEEN A
NORMAL PLAN AND SORT OF NORMAL
CIRCUMSTANCES. UM IN THE
INVESTMENT CHOICES THAT WE MADE
ARE NOT PANNING OUT EXACTLY AS
WE THOUGHT. WE'RE NOT LIVING IN
NORMAL TIMES. I THINK THE MOST
IMPORTANT THING FROM A HIGH
LEVE PERSPECTIVE IS THAT THINK
ABOUT IT'S NOT JUST ABOUT THE
TOTAL AMOUNT OF POWER THAT THE
STATE HAS AVAILABLE. WE HAVE
ENOUGH. IT'S JUST THAT WE DON'T
HAVE ENOUGH BEING MADE AT THE
TIMES OF DAILY NEED THEM, AND
WE'RE NOT GETTING THE POWER
WHERE WE NEEDTHEM. SO THE
CONSTRAINTS ARE BOTH THE
GENERATION RESOURCE PROFILES ARE
NOT MATCHING THE DEMAND AND WE
JUST DON'T HAVE ENOUGH PHYSICAL
WIRE MOVE THAT POWER TO WHERE WE
NEEDED TO BE WHEN WE NEEDED TO
BE THERE. UM AND SO AS WE'RE
THINKING THROUGH WELL IS FOSSIL
A GOOD SOLUTION FOR US OR NOT,
WE HAVE TO BE THINKING ABOUT. IS
THIS THE RIGHT TIME OF DAY? AND
IS THIS GOING TO BE ACTUALLY BE
ABLE TO GET THE POWER WHERE WE
NEED IT BECAUSE OF THE
TRANSMISSION CAPACITY AVAILABLE?
UM. I STOLE THIS CARTOON A
LITTLE BIT, BUT WE'VE ALL HEARD
ABOUT THE DUCK CURVE. AND I SAW
THIS FROM, UM FROM A NEWS
ARTICLE FROM A COUPLE OF YEARS
AGO, BUT HMM. I KNOW THIS
BECAUSE THE DUCK CURVE IS
GETTING TO BE A LITTLE BIT MORE
EXTREME IN ITS SHIFTING A LITTLE
BIT MORE ITSELF. WE'VE BEEN
TALKING ABOUT THE DUCK CURVE FOR
MANY YEARS OVER A DECADE, THE
DEATHS ARE ON THE NET LOAD ARE
GETTING TO BE MORE EXTREME, BUT
THEY ARE SHIFTING AS WELL. AND
IN PART OF THIS IS DUE TO
CLIMATE CHANGE THAT MR. ROTH
LEADER JUST SPOKE ABOUT THIS A
LITTLE BIT, BUT I WANT TO
EMPHASIZE THIS A LITTLE BIT MORE
SPECIFICALLY. THE AND THEN
CALIFORNIA LOAD ON IT IS
SHIFTING. WE USED TO HAVE SORT
OF OUR PEAK AROUND 4 TO 5 IN THE
AFTERNOON THAT SHOULDER, UM AND
THAT'S SHIFTING BACKWARDS AND WE
ARE NOW SEEING A DELAY SHIFT
BACK BY A COUPLE OF HOURS AND SO
WE'RE NOT HAVING THAT MATCH. AS
AS THE SOUND KIND OF GOING DOWN
AND SOME OF THE WIND AND SOME OF
THE OTHER STUFF FOR NOT COMING
UP QUITE AT THE RIGHT TIME. AND
SO WE'RE GETTING SHORT BECAUSE
OF THE FACT THAT OUR SHIFT IN
OUR PEAK IS HAPPENING BY A
COUPLE OF HOURS. UM, WE'RE
SEEING THIS TO HAPPEN A LITTLE
BIT MORE AND MORE AND YOU KNOW
THAT IS IN PART DUE TO THE
EXTREME WEATHER EVENTS. THERE IS
ALSO SOMETHING HAPPENING HERE
BECAUSE OF COVID THAT WE'RE NOT
ALL IN OFFICE BUILDINGS AS MUCH
USING A LOT OF OUR AIR
CONDITIONING KIND OF OUR CENTRAL
COOLING AS MUCH FOR ALL HOME A
LOT MORE, AND IT JUST IS A
DIFFERENT LOAD PROFILE THAN WHAT
KIND OF WAS A NORMAL THING THAT
WAS DRIVING THE PEACE. AND SO WE
HAVE TO SORT OF BE AWARE OF THE
FACT THAT PART OF THIS WAS JUST
NOT A PREDICTABLE PLAN DOUBLE
THING. UM. SO I DID WANT TO
SPEND A MOMENT TALKING ABOUT WHY
ARE WE RELYING ON FOSSIL? UM
WELL COMBINED CYCLE GAS TURBINE
OR A C C G T. DOES HAVE AN
ATTRIBUTE IT CAN RUN WHEN WE
NEEDED TO RUN FOR AS EVER LONG
WE CAN RUN. HOWEVER THAT'S NOT
ALWAYS THE CASE. WE NEED THE GAS
THAT POWERS THAT CCG TO COMBINED
CYCLE. GAS TURBINE NEEDS GAS. UM
WE NEED THE GAS TO BE ABLE TO
GET THERE. AND THAT'S GETTING
HARDER. AND WITH THE AMOUNT OF
SOLAR AND THE AMOUNT OF OTHER
ATTRIBUTES THAT WE'RE BRINGING
ONLINE. ARE GAS FIRED POWER
PLANTS, THEIR LOAD PROFILES
THEMSELVES ARE A LITTLE BIT MORE
UNPREDICTABLE IN THE GAS SYSTEM
ITSELF WAS NEVER DESIGNED TO
MOVE THIS MUCH GAS AROUND THIS
QUICKLY AND THIS MUCH
UNPREDICTABILITY AND IT TAKES
NINE HOURS TO MOVE GAS FROM THE
CALIFORNIA BODER TO DOWNTOWN
LOS ANGELES. AND IF WE DON'T
EXACTLY KNOW WHEN WE'RE GOING TO
NEED THAT GAS TO MOVE THAT
QUICKLY, UM, IF WE DON'T HAVE
GOOD FORECASTING ON THE DAY
AHEAD SIDE OF THINGS EVEN IF WE
WERE SAYING WE NEED THAT COUNCIL
RESEARCH TO BE THERE, WE COULD
BE ENDING UP IN A SITUATION
WHERE IF WE'RE NOT CHARGING THE
GAS GENERATORS CORRECTLY. WE'RE
NOT GOING TO ACTUALLY HAVE THE
GAS AVAILABLE WHEN WE NEED IT,
AND SO BETTER FORECASTING IS
GOING TO BE REQUIRED THERE. IN
ADDITION, AND SENATOR STERN WAS
STARTING TO ASK THIS AND SOME OF
HIS OPENING QUESTIONS WE DO HAVE
LOAD POCKETS IN THE STATE,
ESPECIALLY DOWN IN SOUTHERN
CALIFORNIA, AND THEN WE JUST
MIGHT NOT HAVE ENOUGH CAPACITY
IN THE WIRE ITSELF TO MOVE THAT
ELECTRICITY FROM THE GENERATORS
TO WHERE WE NEED IT IN SOME OF
THE LOWEST LOW PODCASTS, SO WHEN
WE TALK ABOUT WELL IS THE ONLY
WAY TO BE RELYING ON, UH, TO
CREATE RELIABILITY IS THE ONLY
WAY TO RELY ON THAT IS FOSSIL
GENERATION. THE ANSWER IS NOT
NECESSARILY BECAUSE WE BOTH HAVE
A GAS PROBLEM IN A WIRE PROBLEM
THAT DO NEED TO GET SOLVED. NOW
WE'RE ABLE TO DO IT RIGHT NOW,
BUT IT'S NOT A GREAT LONG TERM
SOLUTION. UM I'M AN
ENVIRONMENTAL ADVOCATE. SO OF
COURSE I'M GOING TO TALK ABOUT
THE LONG TERM TIME AND
IMPLICATIONS OF OVERLY RELYING
ON FOSSIL. BUT THERE ARE NEAR
TERM IMPLICATIONS AS WELL. BOTH
LOCAL AIR QUALITY CONCERNS AND
YOU SEE ON THIS MAP HERE ON THE
LEFT HAND SIDE ARE ONCE THROUGH
COOL POWER PLANTS. THERE IS
OVERALL JUST OVERALL LAND USE
AND COASTAL IMPLICATIONS FROM
SOME OF THESE POWER PLANTS AS
WELL, ESPECIALLY IN THE LA BASIN
. THESE ARE FRONTLINE
COMMUNITIES. UM AND WE REALLY
NEED TO RECOGNIZE THAT THERE IS
A DISPROPORTIONAL IMPACT ON
DISADVANTAGED COMMUNITIES FROM
OVER RELYING ON SOME OF THESE
PLANTS. UM NOT ONLY THAT, BUT
WHEN YOU HAVE A POWER PLANT THAT
IS NOT RUNNING ALL THAT MUCH.
THE ENERGY COSTS OF THEM TO BE
ABLE TO PAY ALL THE WORKERS AND
TO PAY FOR ALL THE GAS THAT THEY
NEED TO DO AND DO EVERYTHING
ELSE. YOU'RE SPREADING THOSE
COSTS OUT OVER A FEW HOURS,
WHICH MEANS THAT THE POWER
ITSELF IS MORE EXPENSIVE. THAT
WE ARE SEEING AN UPTICK IN
PRICING IN BOTH THE, UM CAPACITY
PAYMENT AND IN THE ENERGY
PAYMENTS, AND SO SOME OF THESE
FOSSIL RESOURCES ARE LOOKING
PRETTY EXPENSIVE. UM AND AS
SENATOR MIN WAS SORT OF JUST
ASKING A FEW MOMENTS AGO, THERE
ARE DIRECT AFFORDABILITY
IMPLICATIONS. UM THAT NEED TO BE
THOUGHT THROUGH HERE BEFORE WE
START RELYING ON THIS TOO MUCH.
UM I DID WANT TO, AND I KNOW
THIS IS MORE OF THE TOPIC OF THE
NEXT THE NEXT PANEL THAT I DID
WANT TO TAKE A MOMENT TO
HIGHLIGHT. THERE ARE SOME NON
FOSSIL STRATEGIES THAT ARE
AVAILABLE FOR THIS STAGE THAT
THINGS THAT WE CAN BE DOING IN
THE NEXT COUPLE OF YEARS AND
THEN ALSO IN THE LONGER TERM AS
WELL. UM IN NO PARTICULAR ORDER
. I DID WANT TO HIGHLIGHT THEIR
OUR CUSTOMER OWNED INVESTMENTS
THAT CAN BE DISTRIBUTED ENERGY
RESOURCES. YOU DON'T NEED TO BE
RELYING ON WIRES. IF YOU HAVE
SOMETHING THAT IS HAPPENING IN
GENERATING RIGHT ON SITE IN
THEIR THINGS THAT CAN BE DONE TO
INCENT CLEAN INVESTMENTS, BUT WE
HAVE TO COMPENSATE CUSTOMERS FOR
THAT ACCORDINGLY. I RECOGNIZE
THAT THERE IS A BUILT IN FRONT
OF THE LEGISLATURE RIGHT NOW
THAT IS THINKING ABOUT HOW DO WE
DO MORE INCENTIVES FOR THESE
CLEAN DISTRIBUTED ENERGY
RESOURCES THAT PROVIDE
ADDITIONAL RESILIENCY, AND THAT
IS ASSEMBLYMEMBER'S FRIEDMAN'S
BILL C. 667 AND THERE ARE OTHER
CHOICES THAT ARE AVAILABLE OUT
THERE IN TERMS OF INCENTIVES TO
HELP CUSTOMERS GET THAT OUT
THERE. UM I NOTE THAT CUSTOMERS
THEMSELVES. I COULD EXPORT SOME
OF THEIR EXTRA POWER BACK ONTO
THE GRID. IN ADDITION TO
REMOVING THE DEMANDS FROM THE
GREAT ITSELF, BUT WE'RE NOT
COMPENSATING CUSTOMERS.
APPROPRIATELY FOR THAT THERE IS
SOME MORE WORK TO BE DONE THERE.
THIS NEXT BULLET POINT HERE, AND
I APOLOGIZE FOR SOME OF THE
ACRONYMS. UM THEY, AS MR ROTH
LEADER INDICATED, WE DO NEED TO
BE THINKING MORE ABOUT HOW WE
CAN RELY ON OUR WESTERN MARKET
GOING FROM JUSTIN NEAR TERM 15
MINUTES OR HOUR AHEAD DAY TRADE
TO A BETTER DAY AHEAD TRADE AND
THAT'S GOING FROM THE ENERGY
IMBALANCE MARKET TO THE DAY
AHEAD MARKET. AND WE ARE SEEING
THAT LATEST SECOND WE CAN, UH,
MONEY IS THERE TO BE MADE AND
THERE IS A LOT MORE FORECASTING
. UM IF WE START GETTING THE
RULE CHANGES THERE, RIGHT. WE
ARE GOING TO BE ABLE TO START
SEEING A LOT OF HER LEAF BOTH ON
BEING ABLE TO DISPLACE POWER AND
ALSO TO REDUCE SOME OF THE
CURTAILMENT THAT WE'RE SEEING.
AND I AM CERTAIN MR MORRIS IS
GOING TO TALK MORE ABOUT THIS
NEXT BULLET POINTS, SO I DON'T
WANT TO STEAL HIS THUNDER TOO
MUCH, BUT WE ARE SEEING PRETTY
MUCH EXPONENTIAL GROWTH IN SHORT
DURATION, STORAGE ASSETS AND IN
THE STATE AND THEY'RE ABLE TO
COME ONLINE VERY QUICKLY, AND SO
WE SHOULD CONTINUE TO PUSH ON
THAT WHEN IT'S AVAILABLE,
RECOGNIZING THAT THERE ARE SOME
SUPPLY CHAIN CHALLENGES. AND
LAST, BUT NOT LEAST IN THE NEAR
TERM. WE ARE SEEING MORE
RELIANCE ON FLEX ALERTS AND
OTHER THINGS THAT BASICALLY
ASKED CUSTOMERS TO SAVE SOME
POWER. UM IT'S GREAT THAT WE ASK
CUSTOMERS TO DO THAT THE
GOODNESS OF THEIR HEART, BUT THE
MORE THAT WE CAN SET A PRICE
SIGNAL THE CUSTOMERS TO SAVE
THEM TO CONSERVE THE BETTER AND
I'M CERTAIN THIS TWO DEGREES IS
GOING TO TALK ABOUT THE NEED TO
HOW WE CAN AGGREGATE AND
COMPENSATE CUSTOMERS CORRECTLY
FOR THOSE TYPES OF ACTIONS. AND
THEN LAST, BUT NOT LEAST, I DID
WANT TO BE THINKING ABOUT AS
WE'RE FOCUSING ON SOME OF THESE
SHORT TERM SOLUTIONS RECOGNIZE
THAT LONG TERM PLANNING SHOULD
BE TO SAY WE DON'T NEED FOSSIL
FOR OUR LONG TERM STRATEGIES
THAT IS GOING TO MEAN A BIGGER
RELIANCE ON THE WESTERN WHITE
GRID FOR TRADING PURPOSES FOR
GETTING POWER IN AND OUT. AND
THAT IS GOING TO NEED MORE IN
STATE TRANSMISSION AS WELL. IN
ADDITION TO THE SHORT DURATION
STORAGE, WE'RE GOING TO NEED
SOME LONGER TERM STORAGE, AND
THAT CAN MEAN BOTH MULTI DAY AND
OR, YOU KNOW, EIGHT HOUR PLUS,
WE'RE GOING TO NEED A VARIETY OF
A PORTFOLIO THERE, AND THAT'S
BECAUSE WE ARE GOING TO
ENCOUNTER SOMETIMES IN THIS
STATE, ESPECIALLY IN THE WINTER
AND SPRING PERIODS WHERE WILL
HAVE MULTIPLE DARK CLOUDY DAYS.
UM AND WE'RE GOING TO DEPLETE
OUR SHORT DURATION BATTERIES AND
WE'RE GOING TO NEED SOMETHING
ELSE TO HELP FIRMANDO SHAPE OUR
RESOURCES OUT, BRIEFED THIS
COMMITTEE BEFORE ALREADY ON THE
NEED FOR EVERYTHING FROM POWER.
I DON'T WANT TO REPEAT THAT TOO
MUCH, BUT I WILL RECOGNIZE THAT
CALIFORNIA DOES HAVE THE ABILITY
TO CONTAIN OVERALL SYSTEM COSTS.
AND FULLY DE CARBONIZED. IT'S
ELECTRIC SYSTEM IF WE MAKE
APPROPRIATE INVESTMENTS INTO
CLEAN FIRM POWER RESOURCES, AND
SENATOR BECKER HAS BEEN A REAL
LEADER ON THIS TOPIC, AND I
ENCOURAGE US TO BE MAKING SOME
PROGRESS ON THIS NOW. SO THAT
WAY IT'S AVAILABLE FOR US IN THE
LONG TERM. AND WITH THAT, THANK
YOU SO MUCH FOR YOUR TIME AND
ATTENTION AND I LOOK FORWARD TO
ANY QUESTIONS YOU MAY HAVE.
THANK YOU, MR COLVIN. WE'RE
GOING TO MOVE ON TO ALEXIS
SUDIRMAN, MENTIONED AS A PROGRAM
MANAGER ENERGY EQUITY PROGRAM AT
THE CALIFORNIA ENVIRONMENTAL
JUSTICE ALLIANCE. WELCOME, MR
GUTTERMAN. THANK YOU SO MUCH FOR
HAVING ME. CAN YOU HEAR ME?
OKAY. YES, WE CAN. OKAY
WONDERFUL. LET ME JUST SHARE MY
SCREEN ONE MOMENT.
ALL RIGHT. THANK YOU SO MUCH.
SENATOR BECKER AND THE
SUBCOMMITTEE FOR HAVING THIS
REALLY IMPORTANT HEARING. I
THINK OF COURSE, THIS IS A
REALLY TIMELY TIME FOR THIS
DISCUSSION AS WE ARE IN THE
MIDST OF YET ANOTHER VERY HOT
SUMMER IN CALIFORNIA. MY NAME IS
ALEXIS. I'M THE ENERGY EQUITY
MANAGER AT THE CALIFORNIA
ENVIRONMENTAL JUSTICE ALLIANCE
OR STAY. HA OUR ALLIANCE IS
REPRESENTING WORKING CLASS
COMMUNITIES OF COLOR ACROSS
CALIFORNIA THAT ARE MOST
IMPACTED BY POLLUTION, POVERTY
AND CLIMATE CHANGE. UM THERE'S
ALREADY SO MUCH REALLY IMPORTANT
AND VALUABLE INFORMATION SHARED
BY THE PREVIOUS SPEAKER, SO
REALLY PUSHING THE OPPORTUNITY
TO DIG INTO THE DETAILS, AND
TODAY I'LL BE SPEAKING ABOUT WHY
IT'S MORAL IMPERATIVE FOR US TO
REALLY GET THIS RIGHT AND
TRANSITION OFF OF GAS IN A WAY
THAT'S RELIABLE, NOT ONLY FOR
THE SAKE OF OUR CLIMATE, BUT OF
COURSE, AS PREVIOUS SPEAKERS
MENTIONED FOR THE SAKE OF OUR
FRONTLINE COMMUNITIES WHO HAVE
BEEN BEARING THE BRUNT OF FOSSIL
FUEL INFRASTRUCTURE FOR, YOU
KNOW, FIRST AND FOR DECADES
CENTURIES NOW, GIVEN THE FACT
THAT WE'VE HAD USE LEGACIES OF
HISTORICAL ENVIRONMENTAL RACISM
. YOU KNOW REDLINING, CITING
ISSUES AND A LONG LIST OF THINGS
THAT I'M SURE ALL OF US ARE VERY
FAMILIAR WITH AND SO YOU KNOW,
TODAY, I JUST WANTED TO START
OFF BY KIND OF EMPHASIZING THE
POINT THAT MANY MANY FOLKS HAVE
ALREADY SHARED GAS AND
CALIFORNIA IS REALLY A HUGE
EQUITY ISSUE. WE HAVE ABOUT HALF
OF OUR GAS FIRED POWER PLANTS
THAT ARE LOCATED IN
ENVIRONMENTAL JUSTICE
COMMUNITIES WHO ARE ALREADY THE
ONES WHO HAVE THE HIGHEST ENERGY
BURDEN, YOU KNOW, LEAST
RESOURCES TO PROTECT THEMSELVES
FROM CLIMATE THREATS AND HAVE
REALLY BEEN BEARING THE BRUNT OF
THE POLLUTION IN CALIFORNIA. AND
SO, FOR THIS REASON, WE REALLY
WANT TO MAKE SURE THAT, UM, WE
ARE PRIORITIZING. WHAT? WHEN
WE'RE THINKING ABOUT RETIRING
GAS WERE REALLY PRIORITIZING
CLEAN ENERGY INVESTMENTS FIRST
AND FOREMOST IN THESE
COMMUNITIES SO THAT WE CAN
RETIRE GAS AND GAS PLANTS IN
THESE COMMUNITIES ENSURE THAT
THERE IS A LOCAL RELIABILITY
THAT IS MET AND POLLUTION THAT
IS DECREASED. UM, LET ME GO TO
THE NEXT SLIDE. SO UM, YOU KNOW
, I THINK WE ALL KNOW THAT GAS
PLANTS ARE HEAVILY POLLUTING.
THEY EMIT METHANE, NITROUS OXIDE
, CARBON DIOXIDE, AND THESE
POLLUTANTS ARE JUST WORSENING
OUR OUR CLIMATE CRISIS AND IT'S
LEADING TO REALLY SERIOUS HEALTH
IMPACTS IN OUR COMMUNITIES. SO
MANY OF OUR MEMBERS HAVE TURNED
OUT TO EVENTS SHARING PERSONAL
STORIES OF THEIR FAMILY MEMBERS
HAVING ASTHMA ALMOST, YOU KNOW
EVERYONE NEAR THEIR AREA, HAVING
AT LEAST ONE SOME SORT OF IMPACT
BECAUSE THESE THESE PLANTS HAVE
BEEN SIGHTED RIGHT IN THERE.
NEIGHBORHOODS AND NOT ONLY ARE
THESE CHEMICALS EXTREMELY
DANGEROUS TO OUR PUBLIC HEALTH,
BUT THERE'S ALSO BEEN A LOT OF
OTHER DANGERS THAT WE'VE SEEN
FROM OUR GAS PLANTS. THERE'S
BEEN ABOUT 35 EXPLOSIONS AND 32
IGNITIONS THAT TRANSMISSION
PIPELINES REPORTED BY CAP GAS
CAMPING COMPANIES FROM 2010 TO
2016. I THINK WE ALL CAN
REMEMBER THE 2015 AT LEAST SO
CANYON GAS STORAGE FACILITY
BLOWOUT THAT RELEASED 109,000
METRIC TONS OF METHANE INTO THE
ATMOSPHERE OVER FOUR MONTHS.
METHANE IS ALSO YOU KNOW,
EXTREMELY DANGEROUS. UM UH,
BECAUSE IT'S 30 TIMES STRONGER
THAN CARBON AT TRAPPING,
TRAPPING HEAT OVER 100 YEAR
PERIOD, SO NOT ONLY IS YOU KNOW
THE VERY CLEAR NOTION OF
POLLUTION THAT'S COMING FROM
GAS. BUT THERE'S ALSO ALL THESE
OTHER THREATS. THAT REALLY
IMPACT, ESPECIALLY THOSE
COMMUNITIES AT THE FRONT LINES.
UM IN ADDITION, UH OH, YEAH, AND
I WANTED TO MENTION THAT JUST
THIS PAST SUNDAY NIGHT, THE
ALAMITOS ENERGY CENTER, WHICH IS
CALIFORNIA'S SECOND LARGE, GAS
FIRED POWER PLANT WAS ALSO
BLOWING THICK SMOKE INTO THE AIR
OF LONG BEACH FOR OVER AN HOUR.
SO THESE ARE THESE ARE THINGS
THAT ARE VERY LIVE THERE
CONTINUING TO HURT PEOPLE AND
RESIDENTS NEARBY AND JUST
CONTINUE TO SCARE THEM BECAUSE
THERE'S A LOT OF THERE'S JUST A
LOT OF FEAR AND UNCERTAINTY
ABOUT THE GAS SYSTEM OVERALL,
GIVEN ITS, UM, GIVEN SO MUCH OF
ITS DANGERS THAT IT HAS ALREADY
CAUSED R IMMUNITIES. UM AGAIN,
YOU KNOW, WE WE'VE PARTNERED
WITH SO MANY SO MANY GREAT
EXPERTS. WE'VE YOU KNOW, THERE'S
A LOT OF GREAT STUDIES THESE
QUOTES ARE FROM UNION OF
CONCERNED SCIENTISTS JUST
SHOWING THAT YOU KNOW THE USE OF
NATURAL GAS COMES WITH ALL THESE
CLIMATE, HEALTH, ECONOMIC AND
ENVIRONMENTAL RISKS, WHICH I'M
YOU KNOW, I'M CONFIDENT THAT
WE'RE ALL TRYING TO GET AWAY
FROM AND SO, UM, IN ADDITION TO
THAT, I DID ALSO WANT TO POINT
OUT AND APOLOGIES. I WENT A
LITTLE TOO FAST. BUT I DID ALSO
WANT TO POINT OUT THAT IN
ADDITION TO THE GAS PLANTS, WE
ARE REALLY CONCERNED ABOUT THE
STATES OVER RELIANCE ON DIESEL
BACKUP GENERATORS. UM WE REALLY
SHOULD BE DOING EVERYTHING
POSSIBLE TO GET OFF OF THESE
DIESEL BACKUP GENERATORS BECAUSE
THEY'RE TOXIC AND CARCINOGENIC
AND ARE DISPROPORTIONATELY ALSO
IMPACTING DISADVANTAGED
COMMUNITIES. THE CALIFORNIA AIR
RESOURCE FORWARD ESTIMATED THAT
DIESEL BUGS DURING PUBLIC
SERVICE POWER SHUTOFFS IN
OCTOBER 2019 ALONE PRODUCED THE
DIESEL PM EQUIVALENT ALMOST
29,000 HEAVY DUTY DIESEL TRUCKS
DRIVING AIR MISSIONS IN CLOSE
PROXIMITY TO WHERE PEOPLE LIVE
AND BREATHE AGAIN. THIS IS JUST
RE EMPHASIZING THE POINT THAT WE
KNOW CLIMATE CHANGE IS HERE. WE
KNOW THIS EXTREME HEAT IS GOING
TO CONTINUE TO ESCALATE AND WE
NEED TO FIND OTHER SOLUTIONS SO
THAT WE'RE NOT JUST PERPETUATING
MORE AND MORE POLLUTION AND
HARM. UM AND THEN LET ME GO TO
THE NEXT PIECE AS, UH, AS MR
COLVIN TOUCHED ON EARLIER AND MR
ROTH LEADER AS WELL. THERE ARE
MANY SOLUTIONS THAT WE COULD, OF
COURSE, BE REALLY PURSUING.
ACKNOWLEDGING THE COMPLEXITIES
OF THE TRANSMISSION AND THE
SIGHTING AND INTERCONNECTION,
REALLY HOPING WE CAN TAKE THAT
TAKE THAT SERIOUSLY AND FIND A
SOLUTION FORWARD BECAUSE THERE
ARE A LOT OF REALLY MODERN
TECHNOLOGIES THAT ARE AVAILABLE
TODAY AND ONLY GETTING ONLY
GETTING CHEAPER AND ONLY GETTING
MORE AVAILABLE AS I'M SURE OTHER
SPEAKERS WILL BE ABLE TO TOUCH
ON AND GREATER DETAIL. SOME OF
THE ONES WE'VE BEEN REALLY,
REALLY EXCITED ABOUT AND REALLY
LOOKING TOWARDS HAVE BEEN CLEAN,
DISTRIBUTED ENERGY RESOURCES,
ESPECIALLY REALLY EXCITED ABOUT
THE NOTION OF AND THE POTENTIAL
OF COMMUNITY SOLAR AND STORAGE
IN CALIFORNIA, WHICH IN OUR
PERSPECTIVE HAS BEEN LARGELY
OVERLOOKED AND HAD IS A HUGE
OPPORTUNITY TO NOT ONLY INCREASE
OUR GRIDDLE RELIABILITY AND
INCREASE ENERGY SUPPLY, BUT ALSO
BRING MUCH NEEDED BILL CREDITS
AND GUARANTEE MUCH NEEDED BUILD
CREDITS AND RELIEF FOR CUSTOMERS
THAT SUBSCRIBE TO THESE
PROGRAMS. MANY OF THEM COULD BE
LOW INCOME COMMUNITIES AND
RENTERS WHO OTHERWISE DON'T HAVE
A LOT OF OPTIONS FOR INSTALLING
SOLAR ON THEIR ROOF. THEY'RE
GETTING ANY SORT OF ACCESS TO
DISTRIBUTED ENERGY AS OTHERS MAY
HAVE MORE MORE CAPABILITIES OF
DOING SO. WE'RE ALSO REALLY
INTERESTED IN IN, YOU KNOW, JUST
DEMAND RESPONSE AS OTHERS HAVE
BEEN TALKING ABOUT. UM, WE
REALLY THINK THAT THAT THE
EMERGENCY LOAD REDUCTION PROGRAM
BY THE PUC HAS HUGE POTENTIAL,
BUT WE ARE DISAPPOINTED THAT, UH
, THAT THE PIECE THAT, UM
ALTHOUGH THIS PROGRAM HAS BEEN
APPROVED EVEN RECENT UTILITY
LITERATURE RELATED TO THE FLEX
ALERTS FAILS TO MENTION IT, SO
WE THINK THIS PROGRAM HAS HUGE
POTENTIAL, BUT THERE HASN'T
THERE STILL HASN'T BEEN ENOUGH
EFFORTS TO REALLY PROMOTE IT.
AND TO ENSURE THAT YOU KNOW,
CUSTOMERS ARE GETTING PAID TO
REDUCE THEIR LOAD. ESPECIALLY
THOSE AT THE FRONT LINES WHO
DON'T HAVE A LOT OF RESOURCES IS
A GREAT OPPORTUNITY TO HAVE AN
EQUITABLE SOLUTION AND, UM AND
AGAIN AND MEET AND MEET THOSE
GRID RELIABILITY NEEDS. IN
ADDITION TO THAT, YOU KNOW,
WE'VE WE'VE BEEN SUPPORTIVE OF
CLEAN COMMUNITY MICROGRIDS
ENERGY EFFICIENCY, AND THE LAST
BULLET POINT ON HERE IS JUST
ENSURING THAT WHEN WE THINK
ABOUT WHERE TO REALLY WHERE TO
PRIORITIZE CLEAN ENERGY
INVESTMENTS FROM STATE HAS
PROVED THAT HAS PERSPECTIVE. OF
COURSE WE WOULD REALLY FOR
MAKING SURE IT'S TARGETED IN THE
AREAS THAT WE WANT TO THAT THAT
ARE THE MOST OVERBURDENED. SO
THINKING ABOUT, FOR EXAMPLE,
CALIBERS SCREEN COMMUNITIES,
DISADVANTAGED COMMUNITIES AND
THOSE THAT ARE THE MOST CLIMATE
VULNERABLE SO THAT WE CAN BE
RETIRING GAS FIRST IN THOSE
PLACES AND REALLY HAVING THIS
TRANSITION TO CLEAN ENERGY,
INCLUDE THOSE AT THE FRONT LINES
AND PRIORITIZE THEM. AND WITH
THAT, I YOU KNOW, I WILL END
WITH BASICALLY JUST RE
EMPHASIZING THE POINT THAT
CLIMATE CHANGE, OF COURSE, IS A
HUGE THREAT. BUT IT'S ALSO AN
OPPORTUNITY TO RETHINK OUR OWN
OUR OWN SOCIAL SYSTEMS AND HOW
WE'RE HOW OUR COLLECTIVELY
LIVING TOGETHER AND WHO'S
GETTING TO, YOU KNOW, NOW BE
PRIORITIZED IN IN DECISION
MAKING. SO FOR US, IT'S
SOMETHING THAT IS DAUNTING, BUT
IT'S ALSO, UM YOU KNOW, IN A WAY
AND ORGANIZING OPPORTUNITY TO
PUSH FOR A STRONGER AND MORE
COHESIVE SOCIETY, AND IF WE CAN
RETIRE GAS THAT WOULD BE A HUGE
WIN FOR EQUITY IN CALIFORNIA.
THANK YOU. THANK YOU VERY MUCH
TO BOTH OF YOU, UM FIRST TURN
OVER TO MY COLLEAGUES, SENATOR
STERN ANY QUESTIONS OR SURE, I
MEAN. I GUESS MY QUESTION TO
BOTH OF YOU, UM, IS MAYBE A
TAKING A REGIONAL PERSPECTIVE ON
THINGS SPECIFICALLY IN SOUTHERN
CALIFORNIA, WHERE THE FUTURE OF
A NUMBER OF IDLING OR. UM SOON
TO POTENTIALLY BE REBUILT. GAS
PLANTS ARE ON THE DOCKET,
WHETHER AT THE OU LEVEL, THERE'S
TALK OF BUILDING A NEW GUEST
GENERATION FACILITY IN THE THINK
IT'S EITHER. GLENDALE BURBANK
AREA, KEEPING ORMAND AND SOME OF
THE OTC IN HARRINGTON AND
REDONDO ONLINE. AND TO MISS
SEDIMENTS POINT PUMPING UP ELIZA
AND OUR GUEST STORAGE SYSTEM
BEYOND EVEN WHAT SAFE
CONSIDERING THE SEISMICITY, BUT
REALLY IN LIGHT OF THE NINE OUR
BORDER TRIP THAT GAS HAS TO TAKE
TO GET TO DOWNTOWN L. A FROM
MEXICO, WHERE UM THE MEANS BY
WHICH IS EXTRACTED OR RECEIVED
THROUGH EITHER AN LNG TERMINAL
FROM FROM AS FAR AS RUSSIA.
BECAUSE THERE IS RUSSIAN GAS IN
OUR SYSTEM, AND WE SHOULD MAKE
NO MISTAKE ABOUT IT JUST BECAUSE
IT CAME OVER A PIPELINE FROM
MEXICO DOES NOT MAKE IT ANYTHING
DIFFERENT, BUT FROM REDUCING
RELIANCE ON THAT KIND OF GAS
IMPORT TO, UM TO IMPORTS FROM
THE EAST, PRIMARILY FROM
FRACKING, EITHER FROM TEXAS OR
AS FAR AS YOU KNOW, AS FAR EAST
AS PENNSYLVANIA'S FRACKING
FIELDS. IF WE'RE ACTUALLY GOING
TO CONSUME ENERGY THAT WE'RE
PROUD OF THEM. CAN WE. MOVE FAST
ENOUGH FROM A PERMITTING
PERSPECTIVE FROM A FROM A PUBLIC
PARTICIPATION PERSPECTIVE TO HIT
THE GAPS THAT MR ROTH LEADER
TALKED ABOUT THE 2025 PERIOD.
AND HOW ARE YOUR ORGANIZATION'S
THINKING ABOUT, UM, ESPECIALLY
FROM THE JUSTICE? COMMUNITIES
PERSPECTIVE? WE STRIKING THAT
BALANCE BETWEEN SPEED AND
PROCESS. BECAUSE YEAH, THERE'S
GOING TO BE NEED FOR SPEED AND
CITING AND MOVING PROCESSES
QUICKLY, UM AND RIGHT NOW, THE
PUC IN SOME WAYS IS THE
BOTTLENECK JUST FROM A YOU KNOW,
MOVING FROM AUTHORITY TO PROCURE
TO CONTRACTING FOR THAT
PROCUREMENT. UM BUT FROM A
STAKEHOLDER PERSPECTIVE AND FROM
A COMMUNITY PERSPECTIVE, DO YOU
HAVE YOU THOUGHT ABOUT? UM YEAH.
WHAT WHAT GOING FASTER? LOOKS
LIKE. I SUPPOSE YOU WANT TO TAKE
A QUICK SHOT AT THAT. THANKS.
YEAH HAPPY TO AND I'M HAPPY TO
JUMP IN. UM I THINK ON THIS ONE.
THIS IS SOMETHING THAT AGAIN IS
ALSO VERY LIVE DISCUSSION. I
KNOW THAT THERE HAVE BEEN MANY
TALKS AND A LOT OF DIFFERENT
SPACES IN THE ENERGY TRAILER
BILL AROUND TRANSMISSION,
STREAMLINING OR NEW
CERTIFICATION PROCESS. I THINK
THIS IS SOMETHING THAT IN TERMS
OF OUR ALLIANCE, WE'RE STILL IN
DEEP DISCUSSIONS ON SO WE DON'T
HAVE A STRONG POSITION ON ON ANY
CERTAIN PIECE OF IT AT THIS
POINT, BUT IN THE IN A GENERAL
SENSE, WE DO AGREE THAT THERE
NEEDS TO BE THAT BALANCE BETWEEN
QUEEN SPEED AND ENSURING THERE
IS SUFFICIENT ENVIRONMENTAL
REVIEW AND I THINK THERE IS
DEFINITELY A PATH FORWARD THERE.
WHAT I'VE BEEN HEARING FROM MANY
, MANY STAKEHOLDERS AND FOLKS IS
THAT THERE ARE A LOT OF
REDUNDANCIES AND CERTAIN
PROCESSES AND THAT IF WE CAN
HAVE A WAY FOR ENVIRONMENTAL
JUSTICE COMMUNITIES IN
PARTICULAR AND ENVIRONMENTAL
JUSTICE, I THINK IT'S TO BE THE
ONES REALLY LEADING THAT
DISCUSSION AND HAVING, UM,
HAVING THE OPPORTUNITY TO BE AT
THE TABLE FOR UNDERSTANDING THE
REDUNDANCIES THAT COULD MAYBE BE
SHIFTED OR CHANGED WHILE STILL
ENSURING THERE IS SUFFICIENT
ENVIRONMENTAL REVIEW AND THAT WE
ARE BEING VERY CONSIDERATE AND
THOUGHTFUL. I THINK THAT WOULD
REALLY BE THE BALANCE. WE WANT
TO STRIKE. WE DEFINITELY DON'T
WANT TO DELAY FOR THE SAKE OF
DELAY. I MEAN, IF THERE'S
ANOTHER MECHANISM THAT WORKS
BETTER, FOR EXAMPLE, HAVING A
STATE AGENCY, UM LIKE THE EC, OR
LOOK, LOOK OVER SOMETHING AS
KIND OF, UM, THE MAIN POINT TO
BE CERTIFYING DIFFERENT
COMPONENTS OF TRANSMISSION AND
OTHER PIECES, THEN WE WOULD LIKE
TO CONSIDER THAT AGAIN. I THINK
FOR US, IT'S JUST MAKING SURE
THAT THERE ISN'T SOMETHING IN
WHICH THEY'RE COMPLETELY
BYPASSED THE SEQUEL OR ARE ARE
TAKES AWAY FOR, YOU KNOW, A
CHANCE TO HAVE A FULL
ENVIRONMENTAL REVIEW, BUT I
THINK THERE'S DEFINITELY PATH
FORWARD. UM. IF I MAY. I THINK
THERE IS. I THINK THERE ARE TWO
REALLY QUICK RESPONSES TO THAT
QUESTION, SENATOR. THE FIRST ONE
IS THERE ARE THREE BEYOND THE
CONTRACTING THERE ON THE PC IS
YOU SORT OF ACKNOWLEDGED, AND I
THINK THE PCS ACTUALLY DONE A
PRETTY ADMIRABLE JOB TRYING TO
SEND OUT THE MARKET SIGNALS TO
SAY START PROCURING. HERE'S THE
TIMELINE HERE IS WHAT'S NEEDED.
I THINK THERE THREE CONSTRAINTS
THAT WE HAVE TO HIT. THE FIRST
ONE IS TRANSMISSION, WHICH I
SPOKE ABOUT THE SECOND ONE IS
THE AMOUNT OF LAND THAT IS GOING
TO BE AVAILABLE FOR POWER
GENERATION. AND DO WE HAVE THAT
LAND AVAILABLE IN EACH COUNTY?
UM AND EACH COUNTY IS GOING TO
WANT TO SAY AH. YOU HERE'S WHAT
WE WANT. WE ARE SEEING MORE
LOCAL CONCERNS AND CONSTRAINTS
THAT ARE AVAILABLE AND THEN THE
THIRD IS THE PERMITTING PROCESS
ITSELF, AND I THINK ALL THREE
ARE GOING TO HAVE TO WORK IN
CONCERT TO MAKE CERTAIN THAT
WE'RE BUILDING. AH AND PROCURING
THE RIGHT RESOURCES GIVEN
TRANSMISSION PERMITTING, AND
LANDES CONSTRAINTS AND SO AS WE
ARE THINKING THROUGH, WE'LL
WATCH VERSES SHOULD BE MAKING
THAT WOULD BE SORT OF THE
GUIDANCE THAT WE GIVE TO THIS
COMMITTEE IS TO MAKE CERTAIN
THAT WE ARE THINKING THROUGH AND
PUTTING SOMEBODY YOU KNOW, IN
CHARGE TO SAY. ALL RIGHT NOW,
ARE WE BALANCING OUR PORTFOLIO
CORRECTLY? GIVEN THIS NEW
INFORMATION THAT WE WEREN'T
REALLY EVER HAVING TO THINK
ABOUT THIS FLOOR? SO THIS TED,
THIS TENT TEAM, THEN THAT MR
ROTH LEADER MENTIONED IN THAT
PRESIDENT REYNOLDS MENTIONED IS
THAT DO YOU THINK THAT'S THE
RIGHT PLACE TO BE DOING? THAT IS
THERE IS THERE A WAY TO RUN THAT
PROCESS? UM DID WE LEARN
ANYTHING FROM ERA OR OTHER OTHER
PAST EFFORTS THAT THE YOU KNOW
WE SHOULD BE NUDGING TOWARDS
BECAUSE IT'S A QUASI. IT IS
SOMEWHAT OF AN INFORMAL PROCESS
THAT YOU'RE TALKING ABOUT, RIGHT
. THAT LEADERSHIP IS THE
GOVERNOR, RIGHT? IT'S
ESSENTIALLY THE GOVERNOR.
BUILDING A TEAM THAT CAN DO
EXTRAORDINARY THINGS ACROSS
JURISDICTIONAL LINES, AND
THEY'VE DONE IT, BUT YEAH. YEAH
I THINK, UM. I THINK THAT IS
PART OF THE SOLUTION. I DON'T
THINK IT IS THE ENTIRE SOLUTION
. I DON'T THINK WE CAN JUST WASH
OUR HANDS AND SAY WE ARE DONE
AND THE REASON WHY I SAY THAT IS
THAT IS ONLY GOING TO BE
HANDLING TRANSMISSION. IT'S NOT
GOING TO BE LOOKING AT LAND USE
IN THAT PERMITTING AND THE THIS
PROCESS THAT PROCESS THAT IS OUT
THERE. IT'S NOT SOMETHING THAT
ALL STAKEHOLDERS CAN ENGAGE IN.
YOU KNOW, I HAVE ENVIRONMENTAL
DEFENSE FUND AND NOT ALLOWED TO
BE IN AND ON THAT PROCESS. YOU
KNOW, THAT'S FINE. I DON'T KNOW
PERHAPS ANY OF OTHER WORK TO DO.
BUT AH YOU KNOW THERE IS. THAT
IS PART OF A LARGER HOLE IN
TERMS OF YOU KNOW, IS IT THE
GOVERNOR'S OFFICE THEMSELVES? I
THINK THEY CAN PROVIDE SOME
LEADERSHIP. I ALSO THINK THEY
CAN DESIGNATE THE LEADERSHIP AND
SAY HERE'S WHO IS IN CHARGE AND
IN TERMS OF HAVING THAT WIDER
LENS. HAVING THAT PERSPECTIVE
AND REPORT BACK UP AND HAVE OUR
ACCOUNTABILITY WHEN IT SEEMS
LIKE THE ENERGY COMMISSION
STARTING TO PLAY THAT ROLE, NO,
I MEAN, IN TERMS OF HOW THE MEAN
WHAT MR LETTERMAN BROUGHT UP IN
TERMS OF PARALLEL CERTIFICATIONS
AND SORT OF SORT OF SEEING THE
PLAN THROUGH HAVING THE
INCENTIVES ALSO TO BE A STOPGAP
, LIKE SORT OF NON RATE BASED
FUNDING THERE. I MEAN, THE
LEGISLATURE RELEASES ENDOWED
THEM WITH THE BUDGETING POWER.
AND NOW UNDER 205. IT SEEMS LIKE
A LOT OF THE SORT OF
CENTRALIZATION AROUND PERMITTING
AND SOME OF THE SORT OF
OVERLAPPING LAND USE ISSUES. IS
THAT FAIR TO SAY. I THINK THERE
IS MORE THAT CAN BE DONE. AND IF
THIS SUBCOMMITTEE IS LOOKING FOR
A RECOMMENDATION, I THINK THIS
IS A GREAT PLACE TO CLEARLY
DESIGNATE. HERE ARE OUR MAIN
CONCERNS IN SOMEBODY'S GOING TO
REPORT BACK TO US ON A REGULAR
BASIS ON HOW YOU'RE ADDRESSING
THEM. AND THEN YOU CAN DESIGNATE
THAT GREAT OR BETTER YET. I MEAN
, MY MOTHER IS NOT LEGISLATIVE
AUTHORITY DOESN'T EXIST OF FOLKS
ARE DOING IT BECAUSE THEY'RE
TRYING THEIR BEST RESOURCES AND
THEY NEED THE AUTHORITY TO MAKE
THAT REALLY HAPPENED IN THE
LEGISLATIVE REPORT BACK TO THE
LEGISLATURE, BUT PERHAPS ALSO
THE PEOPLE OF CALIFORNIA I MEAN
, AND WE ARE THAT BODY, BUT IN
THE REPORTING BACK TO MAKE IT
DASHBOARD TYPE REPORTING DID NOT
NECESSARILY OVERLY FORMALIZED.
YOU KNOW, WHITE PAPERS BACK IN A
YEAR AND A HALF, BUT TO HAVE
THAT TICKER UP EVERY DAY, SO
WE'RE ALL SORT OF IN THAT RACE
TO FILL THE GAP TOGETHER AND
SOME WAY TO LOOK AT, YOU KNOW
PROJECTS IN Q. YOU KNOW, TO SORT
OF MAP THESE THINGS OUT AND GIVE
SPACE TO THE LOCAL GOVERNMENT
FOLKS TO KNOW THAT THEY'RE SORT
OF. THEY'RE ON A BIGGER TEAM
HERE, TOO, THAT IT'S NOT JUST
WHAT RIVERSIDE COUNTY IS GOING
THROUGH ON ANY GIVEN DAY.
CONDITIONAL USE PERMIT, BUT
THEY'RE PART OF A OF A VERY
IMPORTANT RACE THAT WE NEED TO
WIN. SO I MEAN, I THINK YES,
IDENTIFYING SOME OF THOSE KEY
METRICS FOR US, BUT FROM MY
PERSPECTIVE, BE IMMENSELY
HELPFUL, AND THERE MAY BE LAYERS
OF INFORMATION RIGHT? THERE IS A
CERTAIN LAYER THAT THE PUBLIC IS
GOING TO WANT TO SEE. BUT THEN
WE'LL WANT TO DRILL DOWN A
LITTLE LAYER DEEPER BUT MOSTLY
JUST GET OPERATIONAL, ESPECIALLY
IN LIGHT OF THE FACT THAT NOW WE
SEE THE, UM MS MARTA SANTOS IS
LEAVING THE ADMINISTRATION SOON
, WHO HAS BEEN THE DEFACTO
COORDINATOR? I THINK THERE'S A
BIG QUESTION OUT THERE OF WHO
CAN SORT OF PLAY THAT THAT
CENTRAL QUARTERBACKING ROLE IN
HER STEAD AFTER WE FINISH THIS
LEGISLATIVE SESSION IN THE SAME
WAY THAT MICHAEL PICKER PLAYED
IN THE EARLY BROWN
ADMINISTRATION. AND SO I THINK
THE GOVERNOR SCOTT, GO GET THE
BEST AND BRIGHTEST AND KEEP
PUTTING IT TOGETHER, BUT YEAH,
WELL, WE GLADLY TAKE YOUR
RECOMMENDATIONS THERE. OKAY WE
SHOULD PROBABLY MOVE ON HERE.
MR. FINAL WRAP UP. UM BUT THANK
YOU. TO THE PANELS FROM THIS
SECTION APOLOGIZED DURING A
LITTLE BIT BEHIND SCHEDULE, BUT
I APPRECIATE THAT. THE NEXT
PORTION INCLUDES A HOST OF
SPEAKERS WHO WERE ALL INTRODUCE
A DIFFERENT APPROACH ON HOW TO
STRENGTHEN RELIABILITY. SOME
BRING TECHNOLOGY IDEAS, WHILE
OTHERS WILL PROPOSE POLICY FIXES
. EACH OF THE SPEAKERS IS MEANT
TO ADD TO A TOOLKIT OF IDEAS FOR
FUTURE RELIABILITY POLICIES THAT
CAN BE IMPLEMENTED BECAUSE OF
SCHEDULING. I'M GOING TO ASK
CARLGUARDINO TO GO FIRST, IT IS
EXECUTIVE VICE PRESIDENT OF
BLOOM ENERGY IF YOU'RE AVAILABLE
, MR CORTINA, WHY DON'T YOU GO
AHEAD? UM AND WITH THE FIRST
TESTIMONY AND WITH APOLOGIES TO
CISCO DEBRIS IS FOR THE CHANGE.
I HAVE ANOTHER APPOINTMENT THAT
I HAVE TO LEAVE FOR THAT HAS
BEEN LONG PLANNED. SO THANK YOU,
CISCO. I WAS LOOKING FORWARD TO
HEARING YOU. THE SUBCOMMITTEE
CHAIR BECKER AND SENATOR STERN
IN THIS GROUP OF DISTINGUISHED
SPEAKERS ON A TOPIC. THE HMM. SO
IMPORTANT TO OUR COMMUNITIES TO
CALIFORNIA, OUR COUNTRY AND OUR
PLANET. I WANT TO THANK YOU ALL
. IN FACT, THE ROLE OF THIS
COMMITTEE IS ENTIRELY IN
ALIGNMENT WITH THE MISSION
STATEMENT OF BLOOM ENERGY TO
MAKE CLEAN, RELIABLE ENERGY
AFFORDABLE TO EVERYONE IN THE
WORLD AND IN THE STATE AND ON A
PLANET, ROCKED BY THE CAUSES AND
CONSEQUENCES OF CLIMATE CHANGE,
INCLUDING DROUGHT, WILDFIRES,
DSPS EVENTS AND ROLLING
BLACKOUTS, THE MISSION STATEMENT
OF BLOOM AND THE MISSION OF THIS
SUB COMMITTEE ARE NOT ONLY
IMPORTANT THEY'RE ESSENTIAL
AGAIN. MY NAME'S CARLGUARDINO
I'M HONORED TO BE JOINING YOU
TODAY. I DON'T WANT TO BE
PRESUMPTUOUS THAT EVERYONE KNOWS
ABOUT THIS CALIFORNIA FOUNDED
AND HEADQUARTERED COMPANY CALLED
BLOOM ENERGY. SO LET ME BRIEFLY
PROVIDE AN OVERVIEW AND I'M
GOING TO SKIP SLIDES SO THAT I
CAN KEEP ON TIME FOR ALL OF YOU
BUT HUMBLE BEGINNINGS BLOOM
ENERGY WAS CREATED IN 2000 AFTER
OUR FOUNDER AND CEO, DR KR
SHREDDER ENDED HIS WORK AS THE
DEAN OF ENGINEERING AT THE
UNIVERSITY OF ARIZONA WHILE
SIMULTANEOUSLY WORKING WITH NASA
ON THE MANNED MARS. MISSION.
WHEN HIS ROLE IN THAT MISSION
WAS SIMILAR TO MATT DAMON'S ROLE
IN MY FAVORITE MOVIE, THE
MARTIAN. HOW DO YOU TAKE THE
TOXIC ATMOSPHERE OF MARS AND
CREATE OXYGEN FOR BOTH LIFE
SUPPORT AND PROPULSION IN AROUND
AND EVENTUALLY BACK OFF OF MARS?
WELL DR SCHRADER CRACKED THAT
CODE, AND THEN THEY DIFFERED
THAT MANNED MARS MISSION AND HE
DID WIN ALL GREAT INNOVATORS DO
HE PACKED UP? HIS CAR TRAVELED
TO SILICON VALLEY SET UP SHOP ON
THE PROPERTY OF NASA AMES IN
MOUNTAIN VIEW AND STARTED A
CLEAN ENERGY, INNOVATIVE COMPANY
. BUT TODAY, FAST FORWARD 22
YEARS LATER, THAT COMPANY HAS
NEARLY 2000 CAREERS IN
CALIFORNIA, 46 PHDS MORE THAN
360. U. S PATENTS. AND BY THE
END OF THE YEAR, NEARLY 1500
ADVANCED MANUFACTURING CAREERS
IN THE UNITED STATES THAT DON'T
EVEN REQUIRE A HIGH SCHOOL
DIPLOMA. IN FACT, WE HAVE
DOUBLED DOWN IN OUR CALIFORNIA
COMMITMENT RECENTLY OPENING AND
ADVANCED MANUFACTURING FACILITY
AND FREMONT THE SIZE OF THREE
FOOTBALL FIELDS AND ARE ACTIVELY
SEEKING NEARLY 400 ADDITIONAL
EMPLOYEES BLOOMS. CORE
TECHNOLOGY IS A FUEL CELL, WHICH
HAS MANY ATTRIBUTES OF
IMPORTANCE TO THIS COMMITTEE.
MISTER MISTER GORDY, A. WE'RE
NOT SEEING IF WE'RE SEEING
SLIDES. WE'RE NOT SEEING THE
SLIDE. RIGHT I DECIDED TO SKIP
THIS SLIDE. OKAY GOOD. NO NO, NO
PROBLEM. THAT EXCELLENT. BE GOOD
STEWARDS WITH YOUR TIME. ALWAYS
BETTER WITHOUT THATGOOD AS YOU
KNOW, SURE. THANK YOU. YOU'RE
GOING TO HAVE TO DEAL WITH ME AS
MY OWN SLIDE WITH THAT. OUR CORE
TECHNOLOGY IS A FUEL CELL, WHICH
IS MANY ATTRIBUTES OF IMPORTANCE
TO THIS COMMITTEE AND TO
CALIFORNIA FIRST, BY DEFINITION
, FUEL CELLS DO NOT COMBUST,
WHICH MEANS WE VIRTUALLY
ELIMINATE LOCALIZED AIR
POLLUTION WITHIN 99.8. 8%
REDUCTION OF NOX AND SOX AND
VIRTUALLY NO PARTICULAR MATTER.
THE IMPORTANCE OF THIS REALITY
IS UNDERSCORED IN THE APRIL 2020
HARVARD STUDY THAT GRAPPLED WITH
THE GRIM FACT THAT ONE OF EVERY
FIVE DEATHS ON THE PLANET IS
DIRECTLY ATTRIBUTED TO KOREA
QUALITY IN THE UNITED STATES.
DIRTY AIR HAS THE GREATEST
IMPACT IN OUR MOST UNDERSERVED
NEIGHBORHOODS, WHICH ARE
OVERWHELMINGLY COMMUNITIES OF
COLOR, AND I WANT TO THANK
ALEXIS WITH SAHA FOR
UNDERSCORING THIS POINT BECAUSE
OF OUR STATES OVER RELIANCE ON
DIRTY DIESEL GENERATORS AS
STRANDED ASSET THE LAST FOUR
DECADES. PLEASE READ THE RECENT
STUDY BY M CUBED WITH THE BAY
AREA AIR QUALITY MANAGEMENT
DISTRICT AND THE SOUTH COAST AIR
DISTRICT, AND THE PROLIFERATION
OF DIRTY DIESEL IS ACTUALLY IN
AND AROUND UNDERSERVED
COMMUNITIES IN JUST THE PAST
THREE YEARS, ANOTHER CORE
ATTRIBUTE IN THE STATE SUFFERING
THROUGH ITS WORST DROUGHT IN THE
PAST 1200 YEARS, IT'S THAT OTHER
THAN IN STARTUP PHASE BLOOM.
ENERGY SERVERS DON'T USE WATER.
ONE MEGAWATT OF BLOOM ENERGY AND
CALIFORNIA ELIMINATES THE
EQUIVALENT OF 2700 OLYMPIC SIZED
SWIMMING POOLS, EACH CONTAINING
660,000 GALLONS OF WATER EACH
AND EVERY YEAR AND WITH MORE
THAN 240 MEGAWATTS DEPLOYED IN
CALIFORNIA ALONE IN A COUNTRY IN
WHICH ONE OF EVERY 10 GALLONS OF
FRESH WATER IS USED FOR THE
PRODUCTION OR COOLING OF ENERGY
, WE MAKE A MATERIAL DIFFERENCE
IN WATER USE. AND I WANT TO
THANK MICHAEL COLVIN AND HIS
EXCELLENT PRESENTATION FOR ADF
ABOUT LAND USE EFFICIENCY AND IN
EVERY COUNTY BLOOMS, SOLUTIONS
OR SPACE EFFICIENT, IN FACT, A
MEGAWATT OF POWER. DOESN'T HAVE
TO TRAVEL LONG DISTANCES OVER A
TRANS. MISSION LINE IN A LOSE
HALF OF THAT POWER BUT IS SET UP
RIGHT NEXT TO THE FACILITY WERE
EMPOWERING IN 5 TO 7 PARKING
SPACES IN THE PARKING LOT OF
THAT FACILITY. QUICKLY ON OUR
TECHNOLOGICAL AND DANCE MINTS
THAT ARE SO IMPORTANT TO OUR
COLLECTIVE GOALS WITH OUR
DEPLOYMENT OF RENEWABLE BIOGAS
FOR WATER TREATMENT PLANTS,
LANDFILLS AND AGRICULTURAL
FACILITIES. GREEN HYDROGEN, AS
WE HAVE ACTIVELY DEPLOYED FOR
MORE THAN A YEAR IN SOUTH KOREA
, CARBON CAPTURE FOR DIFFICULT
TO DE CARBONIZED INDUSTRIES LIKE
CEMENT AND STEEL AND MARINE
TRANSPORT FOR CRUISE LINES AND
CARGO SHIPS TO IMPROVE. PROVE
AIR QUALITY AND REDUCE
GREENHOUSE GAS EMISSIONS AT SEA
AS WELL AS IN AND AROUND OUR
PORTS OF SIGNIFICANT IMPORTANCE
IN THE STATE THAT IS HOME TO 40%
OF ALL GOODS BROUGHT INTO THE
UNITED STATES AND ITS
ENVIRONMENTAL JUSTICE IMPACTS IN
OUR POOR COMMUNITIES AND THE
TRUCKING ROUTES LEADING INTO AND
OUT OF THOSE COURTS. CLEAN
RELIABLE ENERGY IS THE MISSION
OF THIS COMMITTEE. IT'S THE
MISSION AND PASSION OF BLOOM
ENERGY ARE MODULAR DESIGN OUR
HISTORY OF STANDING UP WHEN ARE
INCREASINGLY OVERTAXED AND
UNRELIABLE. GRID GOES DOWN IN
OUR PATHS TO DECARBONIZATION
FORM A FIRM FOUNDATION TO SERVE
OUR STATE'S 40 MILLION RESIDENTS
IN THE FIFTH LARGEST ECONOMY IN
THE WORLD AND OUR ABILITY TO
UNIQUELY SERVE CRITICAL
FACILITY. THESE LIKE HOSPITAL.
OOPS. GROCERY STORES, DATA
CENTERS, JAILS AND RETAIL
OUTLETS, SERVICES ON WHICH WE
ALL DEPEND EVERY DAY, BUT
ESPECIALLY DURING A CLIMATE
CRISIS. I LOOK FORWARD TO
HEARING THE OTHER PANELISTS AND
SHARING FURTHER IN THE Q AND A
PORTION. AND THANK YOU, SENATOR
BECKERT, SENATOR STERN FOR
PULLING US TOGETHER TODAY. GOOD
THANK YOU FOR JOINING. THANK YOU
. ALSO FOR HIGHLIGHTING THE ROLE
OF THESE DIESEL GENERATORS AND
THE IMPACT THAT THEY'RE HAVING
ON AIR QUALITY AND OUR COMPUTING
IN OUR COMMUNITIES AND AGAIN AS
WE MENTIONED THIS SECTION AS A
TOOLKIT, UM A LOT OF THAT PART
OF THAT IS HOW DO WE REPLACE THE
DIESEL GENERATORS THAT AS YOU
SAY, WILL BE STRANDED ASSETS.
NEXT UP, WE WILL AND I'M IN A
STEP AWAY, BUT I RAN TRACK IN
SCHOOL AND I RAN UNDER THE RELAY
TEAM, SO I'M GOING TO HAND THE
BATON TO MY COLLEAGUE BRADY VAN
ENGLAND IN PLACE. THERE ARE
QUESTIONS IN THE Q AND A OKAY.
THANK YOU VERY MUCH. THANK YOU
VERY MUCH. NEXT WE'LL HEAR FROM
CISCO DEGREES WHO SEE OF THEM
CONNECT A DEMAND RESPONSE
AGGREGATOR. WELCOME, MR DE
VRIES. GOOD MORNING. THANK YOU,
SENATOR FOR BOTH CALLING THE
MEETING AND FOR BOTH YOU,
SENATOR STERN AND THE REST OF
THE COMMITTEE FOR YOUR
LEADERSHIP ON THIS POWER
CORRUPTS POWERPOINT CORRUPTS.
ABSOLUTELY SO I PLAN TO BE
ABSOLUTELY CORRUPTED HERE WITH
THAT AND BRING UP MY SCREEN.
HOPEFULLY YOU'RE SEEING IT NOW.
YES, WE CAN SEE IT GREAT. AH! MY
NAME IS CISCO. DEVRIES I AM THE
CEO OF HOME CONNECT, AND IT'S A
REAL PLEASURE TO BE HERE. MY I
AM THE COMPANY ITSELF IS EIGHT
YEARS OLD. WE ARE BASED IN
CALIFORNIA, ACTUALLY IN OAKLAND
, CALIFORNIA, AND WE ARE VERY
PROUD OF THE FACT THAT WE HAVE
PIONEERED A NEW, VERY CONSUMER
CENTRIC APPROACH TO DEMAND
RESPONSE AND RESIDENTIAL DEMAND
FLEXIBILITY. THEY CAN BOTH HELP
CUSTOMERS SAVE MONEY ON THEIR
ELECTRICITY BILL, EARN SOME
MONEY FROM ENERGY MARKETS AND IN
SOME LOWERING THEIR ENERGY USE
AS WELL AS HELP SUPPORT THE GRID
THROUGH THIS TRANSITION TO CLEAN
ENERGY. AH WE, UH HAVE ABOUT
200,000 CUSTOMERS INCALIFORNIA
THAT MAKES US THE LARGEST
RESIDENTIAL DEMAND RESPONSE
PROGRAM IN THE STATE AND IN
THOSE CUSTOMERS, HOMES. WE HAVE
DIRECT CONTROL OVER 250,000
APPLIANCES AND DEVICES. THIS IS
EVERYTHING FROM TV CHARGERS TOO
HOT WATER HEATERS TO, OF COURSE,
LOTS OF SMART PLUGS, THERMOSTATS
AND ALIKE. UM WHEN, UH, THE GRID
IS NEEDED NEEDS HELP WHEN THERE
ARE EITHER FLEX ALERTS OR TO
AVOID FLEX ALERTS OR WHEN THE
PRICE OF ELECTRICITY BECOMES
VERY HIGH IN THE WHOLESALE
MARKETS HOME CONNECT IS
DISPATCHED, JUST LIKE ANY POWER
PLANT WOULD BE DISPATCHED, BUT
INSTEAD OF SUPPLYING POWER
BURNING FOSSIL FUELS TO GENERATE
POWER. WE REDUCED THE DEMAND FOR
ELECTRICITY AND WE DO SO VERY
QUICKLY, AND WE DO SO USING BOTH
OUR CUSTOMERS AND THEIR DEVICES
IN CONCERT. NOW WE CAN NOW
PROVIDE IN BOTH UNDER CONTRACT
TO LOAD SERVING ENTITIES IN THE
STATE HUNDREDS OF MEGAWATTS AND
WE ALSO BID NOW 10,000 TIMES A
DAY TO THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR.
LETTING THEM KNOW EXACTLY HOW
MANY MEGAWATTS WE HAVE. WHERE
THAT WHAT PRICE? WE NEED TO GET
PAID TO BE DISPATCHED AND WE ARE
DISPATCHED HUNDREDS OF TIMES PER
YEAR. EVERY TIME WE ARE
DISPATCHED. WE HELP REDUCE THE
ENERGY USED IN SOMEBODY IN HOMES
AND THEN WE PAY OUR CUSTOMERS
FOR THE REDUCTIONS THAT THEY
HAVE PRODUCED. OVERALL WE HAVE
NOW PRODUCED REDUCED OVER 17
MILLION PAID OUR CUSTOMERS OVER
$17 MILLION. IN MOSTLY IN CASH
REWARDS AND OTHER PRIZES. WANTED
TO NOTE ESPECIALLY GIVEN THE
IMPORTANCE HERE AS WE DEAL WITH
THE ISSUES OF EQUITY AND
ENVIRONMENTAL JUSTICE THAT ABOUT
40% OF OUR CUSTOMERS ARE
UNLOADED MODERN INCOME
COMMUNITIES AND OVER 50,000 LIVE
IN MULTI FAMILY BUILDINGS,
MAKING UNCONNECTED ONE OF THE
FEW WAYS THAT MANY CUSTOMERS CAN
PARTICIPATE DIRECTLY IN THE
BENEFITS OF THE CLEAN ENERGY
TRANSITION TODAY AND CERTAINLY
THEN SUPPORTING THEM FINANCIALLY
AS WELL. I WANTED TO START BY
MAKING JUST ONE EXAMPLE OF
UNCONNECTED IN ACTION AND TO
GIVE AN EXAMPLE OF WHAT DEMAND
RESPONSE AND PARTICULARLY WHAT
RESIDENTIAL CUSTOMERS WHEN
PROPERLY PROVIDED WITH
INCENTIVES AND DEVICES AND
CONTROLS AND INFORMATION CAN DO
TO SUPPORT OUR GRID. UH IN FRONT
OF YOU. YOU CAN SEE, UH,
SEPTEMBER 6TH 2020. THIS WAS
ABOUT THREE WEEKS AFTER THE
STATE EXPERIENCED ROLLING
BLACKOUTS BECAUSE OF A SUPPLY
SHORTAGE OF ABOUT A GIGGLE. ONE.
ON SEPTEMBER 6TH THINGS WERE
LOOKING PRETTY BAD AND PUC CAISO
AND THE CDC REACHED OUT TO HIM
CONNECT TO SEE WHAT ELSE
EVERYTHING WE COULD DO TO HELP
ALONG WITH MANY OTHER CITIES
ACROSS THE STATE, PREVENT
BLACKOUTS FROM RECURRING ON THAT
DAY. I WANTED TO SHOW YOU THEM
BRIEFLY HERE ON THE RIGHT SIDE
OF THE SCREEN. WHAT UNCONNECTED
AS AND HOW DIFFERENT AND MORE
IMPORTANT IT IS, IN SOME WAYS
THAN A FLEX ALERT. CAN DO. WHAT
YOU'RE SEEING HERE IS THE OUR
USERS ACROSS THE STATE OF
CALIFORNIA, THEIR AVERAGE ENERGY
USED IN THEIR HOMES STARTING AT
MIDNIGHT ON SEPTEMBER 6TH AND
GOING UNTIL THE END OF THE DAY
MIDNIGHT. AT THE AS WE GOT TO
SEPTEMBER 7TH. YOU CAN SEE THAT
THE STATE DECLARED IT FLEX ALERT
AND THREE PM AND OUR CUSTOMERS
BEGAN TO CONSERVE POWER, AS DID
MANY CUSTOMERS ACROSS THE STATE
OF CALIFORNIA. HOWEVER WITH 4 50
PM WE BEGIN OUR DISPATCH OF
THOSE CUSTOMERS. AND WHAT YOU
CAN SEE HERE IS ABOUT 100,000,
CALIFORNIA RESIDENTS REDUCING
ABOUT 30% OF THEIR ELECTRICITY
USE AND MAINTAINING IT FOR TWO
STRAIGHTHOURS NEAR PERFECTLY
UNTIL THE GRID EMERGENCY HAD
STARTED TO ABATE. AND WE, UH,
THE GRID THAT DISPATCH ENDED. WE
DID THIS IN COORDINATION WITH
CAISO AND THE C E C AND
COMMUNICATED DIRECTLY THE
IMPORTANCE TO OUR USERS. OVER
THE COURSE OF THIS FEW DAY
PERIOD IN AUGUST, SEPTEMBER, WE
PAID OUR CUSTOMERS OVER A
MILLION DOLLARS FOR THEIR
SUPPORT DURING THESE EMERGENCIES
, AND WE'RE VERY PROU OF THE
FACT THAT WE ARE ONE OF THE KEY
REASONS THE STATE WAS ABLE TO
AVOID BLACKOUTS ON THAT
DIFFICULT DAY, SO THAT IS HOW
UNCONNECTED HIM AND HAS
SUPPORTED AH, THE GRID DURING
EMERGENCIES. AND WE ARE, OF
COURSE, NOT THE ONLY ONE. THERE
ARE RESIDENTIAL DEMAND RESPONSE
AND OTHER PROGRAMS THAT HAVE
DONE INCREDIBLE WORK. HOWEVER
DEMAND RESPONSE IS NOT IN AN
EMERGENCY IS ACTUALLY JUST ONE
PART OF THE THREE GOALS THAT WE
HAVE IN CALIFORNIA, OF COURSE,
IN AN EMERGENCY WHEN A FLEX
ALERT IS CALLED WE WANT TO BE
ABLE TO RESPOND AND HELP KEEP
THE LIGHTS ON FOR CALIFORNIANS,
AND THAT'S WHAT YOU SAW IN
SEPTEMBER. 6TH UH, THAT IS A
CRITICAL FEATURE IN THE EVENT
THAT THREE OR FIVE TIMES A YEAR
WE HAVE SUCH AN EMERGENCY. BUT
IN SOME WAYS, EVEN MORE
IMPORTANT IS THAT WE AVOID FLEX
ALERTS ALTOGETHER. AND THAT'S
OUR SECOND GOAL HERE. HOW DO WE
PREVENT EMERGENCIES AND IN DOING
SO? HOW DO WE PREVENT AND KEEP
PEAKER POWER PLANTS THE DIRTIEST
, MOST EXPENSIVE POWER PLANTS,
OFTEN AS YOU HEARD LOCATED IN IN
, UH LOW INCOME AND OTHER
DISADVANTAGED COMMUNITIES HAVE
TO KEEP THOSE FROM TURNING ON.
HOW DO WE KEEP THOSE TURNED OFF?
AND THAT'S REALLY THE CORE OF
WHAT I'M CONNECTED DOWN OVER THE
LAST NUMBER OF YEARS. IS THAT
EVERY DAY FROM SEVEN AM TO 10 PM
WE ARE IN CONSTANT COORDINATION
WITH CAISO. AND WHENEVER THERE
IS AN ISSUE WHERE THERE WHETHER
IT'S LOCAL OR SYSTEM WIDE, WE
CAN DISPATCH WITHIN MINUTES TO
REDUCE MEGAWATTS OF DEMAND,
WHETHER THAT BE LOCALLY IN
FRESNO OR ACROSS THE STATE IN
ITS ENTIRETY, AND THIS CAN IS
PLANNED AND USED AND USES FULL
AND THAT FOR CAN BE DISPATCHED
INSTEAD OF ONE OF THESE SPEAKERS
TURNING OFF AND IN FACT, THAT'S
EXACTLY HOW IT WORKS. WE ARE
DISPATCHED, USUALLY IN PLACE OF
A FOSSIL PLAN. WE THEN, OF
COURSE, FOR BOTH OF THOSE PAY
OUR CUSTOMERS, BUT I WANTED TO
POINT THE THIRD ONE AND THIS HAS
COME UP SEVERAL TIMES IN THE
COMMITTEE AND IS VERY CRITICAL.
I THINK THE FUTURE HERE WE NEED
TO SHIFT DEMAND OUT OF PEOPLE
NEED TO DEAL WITH THE DUCK
CURVE. AND NOT ONLY DO WE KNOW
THAT THE DO WE NEED TO DEAL WITH
THE DUCKER BECAUSE WE THAT IS
HOW WE'RE GOING TO KEEP THE GRID
STABLE AS WE TRANSITION TO
RENEWABLES. AND THROUGH EXTREME
WEATHER, BUT IT IS ALSO THE
NUMBER ONE WAY WE CAN HELP
CUSTOMERS REDUCE THEIR ENERGY
BILLS, WHICH ARE SKYROCKETING.
OUR AVERAGE CUSTOMER WE HAVE 10%
OF FRESNO COUNTY RESIDENTIAL
CUSTOMERS ARE MEMBERS OF THEM
CONNECT ON AVERAGE THEY AR
SEEING OVER $600 INCREASE IN
THEIR SUMMER ELECTRICITY BILL
THIS YEAR. THAT'S ON AVERAGE IN
FRESNO COUNTY ACROSS 10% WE CAN
HELP FIX THAT DRAMATICALLY BY
SHIFTING DEMAND OUT OF PIQUE AND
MOVING INTO LESS EXPENSIVE TIMES
OF THE DAY, AND WE NEED TO DO
ALL OF THESE THINGS TOGETHER,
AND UNFORTUNATELY, THE STATE'S
APPROACH HAS BEEN ENTIRELY TOO
SILOED. IT IS ABSOLUTELY BEEN
CONFUSING TO CUSTOMERS. THERE IS
A HODGEPODGE OF DIFFERENT
PROGRAMS, DEPENDING ON WHICH
UTILITY IN WHICH PART OF WHICH
UTILITY WHICH PROGRAM YOU EVEN
HEARD FROM. UM IT IS
INCONSISTENT THE RULES, DOLLARS
AND PARTICIPATION CHANGE, UH,
ANNUALLY IF NOT MORE FREQUENTLY
, UM, AND IT OUGHT TO IT OFTEN
DISADVANTAGES COMPANIES LIKE,
UM, CONNECT FROM PARTICIPATION
RELATIVE TO TRADITIONAL UTILITY
PROGRAMS. LASTLY AND IMPORTANTLY
IT FINANCIALLY. DISINCENTIVIZE
IS FOLKS LIKE US FROM HELPING
OUR CUSTOMERS MOVE THEIR LOAD
OUT OF PEAK. WE'RE VERY GOOD AT
IT. WE CONTINUE TO DO IT, BUT WE
ARE ACTUALLY FINANCIALLY
PENALIZED FOR REDUCING PEAK LOAD
AMONGST OUR CUSTOMERS, SO WE
THINK IT'S TIME FOR A DIFFERENT
APPROACH. AND WE WOULD LIKE TO
SUGGEST THAT BETWEEN NOW AND
SUMMER OF 2023, WE HAVE A
CALIFORNIA RESIDENTIAL ONE
GIGAWATT CHALLENGE. ULTIMATELY
WE BELIEVE THIS CAN BE 10
GIGAWATTS. OF RESIDENTIAL LOAD
CONTROL. THERE CAN BE SERVED THE
GRID DAY IN AND DAY OUT IN
EMERGENCIES AND EVEN TO AVOID
EMERGENCIES, AS WELL AS TO HELP
CUSTOMERS REDUCE THEIR PEAK
ENERGY USED BY 15% AND REDUCE
THEIR BILLS BY $20 OR MORE PER
MONTH IN ORDER TO DO THIS, WHAT
WE NEED FROM THE STATE
LEGISLATURE AND FROM THE STATE.
IS COORDINATION WE NEED NOT THIS
KAFKA ESQUE, CONFUSED SITUATION
WHERE DIFFERENT PROGRAMS ARE RUN
OUT OF DIFFERENT AGENCIES IN
DIFFERENT PARTS OF AGENCIES AND
DIFFERENT UTILITIES IN DIFFERENT
PARTS OF UTILITIES, AND BUT ONE
THAT ALLOWS ALL THESE PROGRAMS,
UTILITY THIRD PARTY AND OTHERS
TO COORDINATE TO HAVE A
SUCCESSFUL CAPACITY INTO THE
GRID. THE SECOND PIECE THAT WE
NEED IS A CONSISTENT LONG TERM
APPROACH. SO THIS IS WHAT THE
STATE HAS DONE WELL WITH THINGS
LIKE THE RENEWABLE PORTFOLIO
STANDARD, IT'S REALLY CREATED
THE UTILITY SCALE SOLAR BUSINESS
IN CALIFORNIA AND CREATED THE
INCREDIBLE SUCCESS WE'VE HAD. OR
THE CALIFORNIA SOLAR INITIATIVE
, WHICH JUMP STARTED THE
RESIDENTIAL SOLAR INDUSTRY IN
THE UNITED STATES AND CALIFORNIA
OR AS WE'RE NOW DOING FOR
RESIDENTIAL STORAGE WE NEED TO
DO THE SAME THING FOR DEMAND
RESPONSE. BRING CONSISTENT
POLICY, REGULATORY STABILITY AND
COORDINATION ACROSS THE ENTIRE
STATE SO THAT EVERYBODY CAN
BENEFIT. AND SO THAT'S STARTING
NEXT YEAR. WE HAVE AN EXTRA
GIGAWATT AVAILABLE TO US AND
THAT ONE GIGAWATT IT'S CRITICAL
BECAUSE ONE GIGAWATT IS ACTUALLY
THE AMOUNT THAT WE WERE SHORT IN
AUGUST. 14TH OF 2020 WHEN THE
LIGHTS WENT OUT, SO A GIGOLO CAN
MAKE A HUGE DIFFERENCE. CONNECT
IS ALREADY UP TO A COUPLE 100
MEGAWATTS OF THAT WE CAN
OBVIOUSLY WORK TOGETHER TO DO A
LOT MORE THAN TO GET WATER OVER
TIME. BUT THIS IS A JUST A QUICK
SNAPSHOT AND HOW MUCH MORE WE
CAN DO IN A SHORT PERIOD OF
TIME. I APPRECIATE YOUR TIME AND
ATTENTION AND YOUR LEADERSHIP ON
THIS AND I LOOK FORWARD TO ANY
FURTHER DISCUSSION. THANK YOU
VERY MUCH. SENATOR STERN. MHM.
BUT YOU WANT TO KEEP GOING AND
YOU WANT TO BE WHAT WE? WHY
DON'T WE KEEP GOING? I GUESS I
WAS JUST I WAS GOING TO ASK YOU
WHAT IMMEDIATE ACTIONS. YOU
THINK CALIFORNIA COULD BE?
CAKING TO INCREASE THEIR DEMAND
RESPONSE USER BASE THEN YOU CAME
UP WITH THIS PROPOSAL. I ASSUME
THAT IS THE THING YOU WOULD
MENTION OR ANYTHING ELSE YOU
WOULD MENTION IN TERMS OF
BECAUSE I'VE BEEN QUITE EXCITED
ABOUT THIS PORTION. I KNOW
OTHERS HAVE AS WELL BECAUSE WHEN
I LOOK AT WHAT WE CAN DO IN THE
SHORT TERM DEMAND RESPONSE IS
ONE OF THOSE LEVERS. SO ANYTHING
ELSE YOU THINK THAT THE STATE
SHOULD BE DOING IN THE SHORT
RUN? OH ABSOLUTELY, I THINK.
LAST YEAR THE PUBLIC UTILITIES
COMMISSION MADE A BILLION DOLLAR
INVESTMENT IN DEMAND RESPONSE,
THE LARGEST ANYONE SEEN, BUT IT
WAS ALMOST ENTIRELY FOCUSED ON
UTILITY PROGRAMS. WE WERE
EXCLUDED FOR MUCH OF IT, FOR
EXAMPLE, AND IT WAS COORDINATED,
ALMOST ENTIRELY FOCUSED ON
EMERGENCY RESPONSE. BEHAVIORAL
RESPONSE. AND WHAT WE THINK
THAT'S AN INCREDIBLE THING AN
INVESTMENT AND WERE SUPPORTIVE
OF THE EMERGENCY LOAD REDUCTION
PROGRAM. BUT AS AN EXAMPLE THAT
IS JUST ANOTHER BAND AID ON TOP
OF THIS BIG PROBLEM THAT IS DONE
IN ONE PIECE FOR ONE PART OF THE
STATE, AND WHAT WE'D LIKE TO SEE%
IS BEING ABLE TO TAKE THE
EMERGENCY LOW DIRECTION PROGRAM
. COMBINE IT AND LOOK AT IT
COURT IN A COORDINATED WAY WITH
THE NEW CALIFORNIA ENERGY
COMMISSION PROGRAM THE STATE
APPROVED IN THE BUDGET CYCLE. SO
THAT WE CAN CREATE SOMETHING FOR
THE STATE. OVERALL THAT WOULD
ALLOW US ANY PERSON ANY
RESIDENTIAL CUSTOMERS ANYWHERE
IN THE STATE TO BE ABLE TO
PARTICIPATE IN AT LEAST ONE
PROGRAM THAT WILL HELP THEM
REDUCE ENERGY AND EMERGENCIES,
SAVE ON THEIR ENERGY BILL AND
BECOME PART OF THIS CLEAN ENERGY
SOLUTION. IT'S A REALLY POWERFUL
OPPORTUNITY BECAUSE THE MONEY
HAS ALREADY BEEN ALLOCATED. IT'S
ALREADY AVAILABLE AND THE NEED
IS SO GREAT. WE'RE JUST NOT
COORDINATING IT WELL OR OPENING
IT UP TO THE KINDS OF ENGAGEMENT
THAT'S NECESSARY. TWO OF OUR TWO
POINT TO ONE PLACE WHERE THE
MONEY IS AVAILABLE, WE CAN DO
IT. IT IS THOSE TWO PROGRAMS AND
HOW WE CAN START TO PUT THOSE
TOGETHER. EXCELLENT. THANK YOU.
ONE QUICK FOLLOW UP. YEAH JUST A
QUICK FOLLOW UP ON THAT. UM SO
WHAT I HEAR YOU SAYING IS, IF
YOU'RE JUST SIMPLY RIGHT NOW WE
SORT OF ARBITRARILY BAR TOSE
WHO ARE ELIGIBLE FOR AN IOU.
PROGRAM FROM PARTICIPATING WITH
THIRD PARTY DEMAND RESPONSE IS
MY UNDERSTANDING, EVEN IF
THEY'RE NOT ENROLLED IN ONE OF
YOUR PROGRAMS UNDER EITHER I
THINK, UNDER THE TWO OH FIVE
LEGISLATION, OR PERHAPS UNDER
PUC ORDER IS THAT IS THAT
GENERALLY SENSE THAT JUST MERELY
BY BEING ELIGIBLE FOR UTILITY
PROGRAM. PEOPLE ARE BEING DENIED
THIS OPPORTUNITY TO HAVE TO BE
PART OF THAT. YOU KNOW THAT
MILLION DOLLAR ONE HOUR SAVE THE
GRID MOMENT OR OR ALL THE OTHER
NON EMERGENCY MOMENTS. THAT'S
RIGHT. IN FACT, THE CURRENT
POLICY AND PLACE FOR THE PUC AND
THROUGH THE BILL THE BUDGET
PROCESS THAT JUST IS CONCLUDING
I WOULD DO EXACTLY THAT. WHICH
SAYS THAT IF YOU ARE, IF YOU
WERE IN AND I, YOU TERRITORY YOU
ARE THEREFORE ELIGIBLE FOR THE
EMERGENCY LOAD REDUCTION PROGRAM
AND THEREFORE YOU CANNOT MAKE
USE OF THIS NEW REALLY
INTERESTING, HOLISTIC APPROACH
THAT THE CDC IS TRYING TO PUT
TOGETHER THAT INVOLVES THIRD
PARTIES, SO IT IS ABSOLUTELY
EXCLUDING EVERYBODY. EXCEPT. FOR
THOSE THAT ARE IN UTILITY
PROGRAMS FOR PARTICIPATING IN
THIS NEWLY CREATED VERY
IMPORTANT STRATEGIC PROGRAM, AND
I THINK THAT'S OBVIOUSLY ONE OF
THE KEY THINGS WE HAVE TO FIX.
WE NEED TO CREATE AN OPEN DOOR
FOR LOTS OF FOLKS TO COMPETE FOR
UTILITIES TO PROVIDE PROGRAMS
FOR FOLKS LIKE UNCONNECTED BUT
HAVING THIS SORT OF WALL WHERE
WE'RE GOING TO SPEND HUNDREDS OF
MILLIONS OF DOLLARS AND PROHIBIT
OTHER SUCCESSFUL PROGRAMS FROM
PARTICIPATING BY BY LAW. AND BY
REGULATION IS CERTAINLY A
PROBLEM, AND I THINK IT'S GOING
TO DRAMATICALLY HURT OUR ABILITY
TO PUT MONEY IN THE POCKETS OF
FOLKS BUT ALSO TO KEEP THE
LIGHTS ON NEXT SUMMER, AND WE'VE
BEEN PRETTY CERTAINLY ACTIVE
ABOUT TALKING ABOUT THAT. AND SO
IF YOU IF WE IF WE MET THAT
GIGAWATT CHALLENGE THAT WE'RE
PUTTING OUT THERE TO THE PEOPLE
OF CALIFORNIA IF WE MET THAT HOW
MUCH MONEY COULD THE PEOPLE OF
CALIFORNIA POTENTIALLY SEE IN
THEIR POCKETS? UH THAT NUMBER
ONE THAT WOULD PUT JUST IN AN
ANNUAL BASIS BETWEEN 10 AND $20
MILLION DIRECTLY IN PEOPLE'S
POCKETS THAT WE WOULD BE PAID.
THEY WOULD BE PAID FOR
PARTICIPATION IN THE GRID. IF
THEY NORMAL BASIS. THAT'S A HUGE
AMOUNT OF MONEY, BUT THAT'S
DWARFED BY HOW MUCH WOULD HE
SAVED BY THE FACT THAT THEY'RE
SHIFTING THEIR LOAD OUT OF
PIQUE? THEIR ENERGY BILL
REDUCTIONS, THE AVERAGE NEW
UNCONNECTED CUSTOMERS THAT
CONNECTS THE DEVICE REDUCES
THEIR ENERGY USE BY 10% SO WE'RE
GOING TO TRY AND PUSH THAT 15%
BUT THAT ENERGY BILL REDUCTION
OVER THE OVER THE STATE IS OVER
$100 MILLION, SO THIS IS NOT
ONLY A WAY TO KEEP THE LIGHTS ON
IS THE WAY TO PUT MONEY IN THE
POCKETS OF THE PEOPLE THAT NEED
IT THE MOST, AND WE'RE OBVIOUSLY
BEING CONSTRAINED FROM DOING
THAT TODAY, AND I THINK WE
CERTAINLY SHOULD BE THE ONLY
ONES DOING IT. WE JUST WANT TO
MAKE SURE EVERYBODY CAN
PARTICIPATE IN PROGRAMS LIKE
THIS. THANKS THANK YOU. I
APPRECIATE THAT. YOU KNOW, AS
OUR SPEAKER FROM CAI SHOU
MENTIONED RESPONSE IS ONE OF THE
LEVELS I APPRECIATE YOU SHEDDING
A LIGHT ON THAT, UM, AGAIN.
APOLOGIES THAT WE ARE MOVING
BEHIND SCHEDULE. ESCORT
PRESENTERS TRY TO KEEP THEIR
REMARKS SOMEWHAT BRIEF. I AM
COMMITTED TO STAYING HERE FOR
PUBLIC COMMENTS. AND I ALSO DO
YOU WANT TO INCLUDE I KNOW SOME
FOLKS IN THE ROOM AND OUR
FRIENDS FROM LABOR WHO WE WENT
THERE PERSPECTIVE AS WELL. AS WE
TALK ABOUT A CLEAN GRID. WE'RE
GOING TO MAKE SURE THAT GOOD,
WELL PAYING JOBS ARE PART OF
THAT. SO WE HAVE WOULD LIKE TO
GET TO THAT AS WELL. UM SO NOW
ASK SAMUEL FROM THE BRATTLE
GROUP TO GO AHEAD AND PRESENT.
THANK YOU. GO AHEAD. CANNOT HERE
YET. WORKING ON IT. YES THERE WE
GO. NOW YEAH. LITTLE DELAY WITH
THE BUTTON THERE. GOOD MORNING.
NICE TO, UM SEE YOU. THANK YOU
FOR HAVING ME HERE. UM MY NAME
IS SAMUEL. I'M A PRINCIPAL FROM
THE BRATTLE GROUP AND I LEAD OUR
ELECTRICITY PRACTICE. THIS
ANALYSIS WE DID OF THE RESOURCE
ADEQUACY IMPACTS OF RETAINING
DIABLO CANYON WE DID ON BEHALF
OF POLICY IMPACT ON BEHALF OF
CARBON FREE CALIFORNIA. AND OUR
JOB WAS TO START FROM THE SAME
NUMBERS THAT CATALYZE OH, AND
THE C C AND THE CPUC OR USING
AND JUST LOOK AT, UM LOOK AT
SOME SCENARIOS WHERE THE ABLOW
CANYON COULD BE HELPFUL. CAN YOU
SEE MY SLIDES? OH I AM NOT YET
SHARING HERE. LET ME DO THAT.
OKAY YES, YES, WE SEE NOW, OKAY?
THANKS FOR YOUR PATIENCE. OK SO
WE HEARD FROM, UH, MR RATH,
LEADER AT THE BEGINNING ABOUT
HOW MUCH CAPACITY WOULD BE
NEEDED, UM, FOR MEETING
RELIABILITY STANDARDS AND THAT
AND THAT WE WOULD WE WOULD NEED
A LOT OF NEW RESOURCES TO MEET
THAT AND THAT THERE WERE RISKS
AROUND WHETHER ALL OF THOSE
COULD BE DEPLOYED IN TIME, AND
THAT'S WHAT I'LL TALK ABOUT. SO
THERE THERE. UM, OVER THE NEXT
UH, FOUR YEARS WE WOULD NEED
MORE THAN 20 GIGAWATTS OF NEW
CAPACITY. THAT'S IN NAMEPLATE
TERMS, AND IT'S LARGELY SOLAR
STORAGE. UM SOME GEOTHERMAL AND
PUMPED STORAGE. UM SOME NEW WIND
, AND THAT IS AN ENORMOUS AMOUNT
OF CAPACITY TO ADD ON TOP OF THE
BASE AMOUNT OF CAPACITY THAT WE
HAVE THAT'S SHOWN IN GRAY IN
THIS CHART, SO IT'S A HUGE
EXPANSION IN A FEW YEARS. THAT
WOULD, UM WE'RE RECOGNIZING AS
SOME OF THE SAME CONCERNS THAT
MR MARK THAT MR ROTH LEADER SAID
THAT, UM, THERE WILL BE CITING
CHALLENGES. WE DIDN'T MENTION
THAT ONE. BUT INTERCONNECTION
CHALLENGES. UM AND SUPPLY CHAIN
CHALLENGES TO DOING THIS. THIS
WOULD BE ADDING RESOURCES AT
UNPRECEDENTED RATES. IN A
CHALLENGING TIME. AND SO WE'VE
DONE IS A NOW AS A LOOK AT THE
IMPACT OF POTENTIAL DEPLOYMENT
DELAYS ON THE ABILITY TO MEET
THE HIGHER RESERVE MARGIN AGAIN
. THE REASON WE NEED SO MUCH
SUPPLY IS PARTLY TO REPLACE
RETIREMENTS. IT'S PARTLY BECAUSE
OF SOME LOAD GROWTH AND IT'S IN
LARGE PART BECAUSE RECOGNIZING
INCREASED RISKS AROUND THE
CLIMATE EXTREMES THROUGHOUT WEST
WIDE SHORTAGES. AND SO THERE'S A
HUGE AMOUNT OF ANALYSIS THAT
CAROLINE SO AND C E. C AND THE
CPUC AT DONE AROUND THIS, AND
THEIR VIEW IS THAT THIS IS
WHAT'S NEEDED. UM NOW. LET'S
LOOK AT LET'S LOOK FORWARD TO
2025. WHAT WOULD HAPPEN IF SOME
OF THAT CAPACITY WORD DID NOT.
UH, DID WERE NOT, UH, DID NOT
MATERIALIZE. SO UM, THIS ONE OF
THE BIGGEST PIECES IT DEPENDS ON
IS OVER 10 GIGAWATTS OF STORAGE.
AND NOW, INCLUDING UP TO SIX
GIGAWATTS PER YEAR IN 2023. THAT
IS MORE THAN THREE TIMES AS MUCH
AS HAS EVER BEEN ADDED IN THE
PAST, THE HIGHEST RATE AT WHICH
IT WAS ADDED WAS ALMOST TWO
GIGAWATTS IN 2021, EVEN THAT
MIGHT BE OPTIMISTIC WITH TIGHT
SUPPLY CHAINS. SO WHAT WOULD
HAPPEN IF NO MORE THAN 1.8
GIGAWATTS MATERIALIZED FOR YEAR.
UM THERE WOULD BE BY THE END,
NOT JUST THE SHORTFALL THAT MR
MCGRATH LEADER MENTIONED, BUT
EVEN A LITTLE MORE THAN THAT,
BECAUSE OF THIS, UM DELAY AND
STORAGE. WE COULD HAVE A
SHORTFALL OF ABOUT 4.5
GIGAWATTS. AND THAT WOULD COULD
RISK UM, SHORTAGES WITH SOME
ROLLING BLACKOUTS AND EXTREME
WEATHER. UM AT A WITH THE
PROBABILITY THAT'S WORSE THAN
THAT ONE IN 10 STANDARD. ONE
EVENT IN 10 YEARS AND I COULD
ALSO BE WORSE IF WE'RE LYING ON
SO MUCH STORAGE. UM THAT IS FOUR
HOURS STORAGE OF SOME OF THE
EVENTS SHORTAGE OF ANTS FOR
LONGER THAN THAT CAN ALSO BE
WORSE IF THE T V DEPLOYMENT
WHERE LIMITED AND NOT ALWAYS
THERE TO CHARGE THE STORAGE SO
WHAT ABOUT WITH RETAINING DIABLO
CANYON? UM COULD REDUCE THAT 4.5
KICK OF WHAT GAFFE BY ABOUT A
LITTLE OVER TO GIVE A LOT SO
PRETTY PRETTY SUBSTANTIAL CHUNK
BECAUSE IT'S A BIG, BIG PLANT
AND I'M TALKING ABOUT FOR
MEETING THE PEAK IN SEPTEMBER.
UM AS WE KNOW DIABLO WOULD
RETIRE PARTLY AND LATE, 2024 MID
2025. SO THAT'S IN 2025. DIABLO
WOULD HELP AVOID THE RISK OF IT.
THIS IS JUST ONE SCENARIO WHERE
WE DON'T DEPLOY ENOUGH RESOURCES
. 2026 FURTHER DEPENDS ON BEING
ABLE TO, UM DEPLOYED GEOTHERMAL
OR PUMPED STORAGE. THOSE ARE
VERY COMPLICATED, LARGE. SORRY,
VERY COMPLICATED ASSETS. TO
DEVELOP AND THIS IS EXTREMELY
OPTIMISTIC BECAUSE THERE ARE A
LOT OF PERMITTING CHALLENGES AND
, UM AROUND THE PUMP STORAGE,
AND IT'S A COMPLICATED PLAN THAT
WOULD TAKE MANY YEARS TO BUILD.
SAME THING WITH GEOTHERMAL
PROJECTS. THERE AREN'T EVEN ANY
IN THE QUEUE OR MAJOR PROJECTS
UNDER DEVELOPMENT AND WILL TAKE
SEVERAL YEARS TO DEVELOP SO THAT
I THINK IS VERY OPTIMISTIC. AND
AGAIN, IF YOU COMBINED THAT
POSSIBILITY WITH LIMITING, UM IF
STORAGE WEREN'T BUILT ANYMORE
THAN AT ITS MAXIMUM HISTORICAL
RATE, WE CAN SEE SHORTFALLS
STILL, IN 2026 OF ALMOST FORGET
WHAT RETAINING DIABLO COULD CUT
PATCHWORK FALL IN HALF. UM OR
YOU KNOW IF IT'S JUST ONE OF
THESE SCENARIOS, EITHER STORAGE
OR THE UM, THESE, UM NEW
GEOTHERMAL PUMPS SURGEON, YOU
KNOW FOR THEIR IF YOU CLOSE THE
GAP ENTIRELY. SO I, UM YOU KNOW,
I LIKE THAT THIS THIS THIS PANEL
IS TALKING ABOUT A WHOLE RANGE
OF SOLUTIONS, AND DIABLO IS NOT
THE ONLY ONE. WE'VE WE'VE HEARD
ABOUT, UM, DEMAND RESPONSE. WE
WILL HEAR MORE ABOUT STORAGE. UM
AND, UM AND THERE'S THE
STRATEGIC ELECTRIC RELIABILITY
RESERVE, OF COURSE THAT MIGHT
PARTLY PRESERVED GAS FIRED
PLANTS, HALF OF WHICH WE HEARD
FROM THE SENTIMENT ARE IN, UH,
YOU KNOW, VULNERABLE COMMUNITIES
AND WOULD BE ADMITTING, UM, SO
THERE ARE OTHER, UM POSSIBLE
SOLUTIONS. DIABLO THOUGH, HAS
SOME ADVANTAGES THAT SO WE JUST
DID THIS WHOLE STUDY YOU MAY
HAVE SEEN THAT WERE RELEASED IN
IN JUNE THAT DID THE EXTENSIVE
ANALYSIS OF THE WORLD WITH THE
BLOW VERSUS REBEL WITHOUT AND
WHAT WE FOUND IS THAT IT REDUCES
IT ACTUALLY DISPLACES A LOT OF
GAS FIRED GENERATION IN THE
EARLY YEARS AND THEREBY REDUCES
CUMULATIVE C 02 EMISSIONS. BY
OVER 40 MILLION METRIC TONS
THROUGH 2032. THAT'S COMPARABLE
TO ENTIRE ELECTORATE SECTOR YEAR
OF EMISSIONS TODAY. UM AND THAT
IT WOULD. IT WOULD ACTUALLY SAVE
A LOT OF MONEY. UM BECAUSE OF
ITS, UH LOW VARIABLE COST, SO
EVEN ASSUMING THAT IT WOULD COST
$2 BILLION TO DEAL WITH WATER
INTAKE, UM, ISSUES AND TO GET
RELICENSED THAT THE NPV OF
SAVINGS OVER ITS LIFE WOULD BE
WOULD BE OVER FOUR BILLION UNDER
SOME CONSERVATIVE ASSUMPTIONS
THAT WE MADE SO IT WHEN I LOOK
AT THIS, IT SEEMS THAT WE'RE AN
ENVIRONMENT WHERE WE MAY FIND
OURSELVES IN A PLACE. WHERE
EVERY, UM MEGAWATT COUNTS. UM
YOU KNOW, TAKING A LARGE
EXISTING RESOURCE. UM, THAT IS
NON EMITTING IS UM, YOU KNOW
SEEMS SEEMS LIKE A YOU KNOW,
VERY ATTRACTIVE THING TO LOOK
INTO, AS AS A WAY TO ADDRESS
THAT AND LONG LONG TERM MEETING
, UM GROWING ENERGY, ESPECIALLY
BLACK MEDICATION, GROWING ENERGY
NEEDS AND DOING IT WITH LOWER
AND LOWER EMISSIONS, RELYING
MORE AND MORE ON WIND AND SOLAR
COME ACTUALLY INCREASINGLY
IMPORTANT TO HAVE A 3 65 BY
SEVEN. RESOURCE THAT CAN PRODUCE
FOR LONG PERIODS EVEN WHEN YOU
HAVE PERIODS OF LOW WIND THAT
SON THAT ARE FOR LONGER PERIODS
AND SHORT TERM DURATION AND
STORAGE CAN CONSULT SO IT UM IT
. UM IT SORT OF HAS A LOT GOING
FOR IT FOR HELPING TO MEET
CALIFORNIA'S FOR LIABILITY,
CLEAN ENERGY GOALS AND TO REMAIN
RELIABLE. THEY'RE THEY'RE
ACTUALLY A LOT OF SCENARIOS. WE
LOOKED AT WHERE THAT BECOMES
CHALLENGING ABSENTEE RESOURCE
LIKE THAT. THANK YOU VERY MUCH
FOR THAT PERSPECTIVE AND THAT
INFORMATION IN THE INTEREST OF
TIME WE'RE GOING TO MOVE ON TO
OUR NEXT PRESENTER HALIMA KIERAN
FROM THE UNIVERSITY OF
CALIFORNIA. BERKELEY IS SELLING
WITH US, SALLY GO AHEAD. HI
THANKS FOR HAVING ME HERE. LET
ME SHARE MY SCREEN. OKAY. I
ASSUME EVERYONE CAN SEE THAT.
ALL RIGHT. WELL, THANK YOU,
SENATOR BECKER, UH, AND SENATORS
OF THE COMMITTEE. UH I REALLY
APPRECIATE YOU HAVING US HERE
TODAY TO SPEAK ABOUT OUR PROJECT
OR A LITTLE DIFFERENT THAN THE
PREVIOUS PRESENTERS IN THAT WE
ARE USING THE TECHNOLOGY TO
TRANSFORM OUR CAMPUS AWAY FROM
NATURAL GAS AND ONTO CLEAN
ENERGY. I AM DELIGHTED TO SHARE
THAT WE RECEIVED 249 MILLION IN
THE MOST RECENT STATE BUDGET. UM
83 MILLION PER YEAR OVER THE
NEXT THREE YEARS, AND I WANTED
TO THANK SENATORS WHO HELPED
ADVOCATE FOR THIS, SOME OF WHOM
ARE ON THIS COMMITTEE. SO THANK
YOU VERY MUCH. WE ARE VERY PROUD
OF THE STATEMENT OF SUPPORT FROM
THE STATE AND ARE LOOKING
FORWARD TO BEING PARTNERS WITH
THE STATE DURING THIS MULTI YEAR
PROCESS. UH AND THIS FUNDING
FROM THE STATE WILL ALLOW US TO
BEGIN CONSTRUCTION. WE ARE
WORKING WITH THE ENGINEERS RIGHT
NOW TO PLAN FOR THE INITAL
PHASE OF CONSTRUCTION SO WE CAN
START LAYING PIPE IN THE GROUND.
OKAY I'M GONNA START BY
PROVIDING A LITTLE BIT OF
BACKGROUND FOR OUR PROJECT. UM
IT'S IMPORTANT TO REALIZE THAT
/C BERKELEY IS ESSENTIALLY IT'S
OWN MUNICIPALITY. WE MANAGE OUR
OWN UTILITIES AND INFRASTRUCTURE
. WE CURRENTLY HAVE A GAS FIRED
COGENERATION PLANT, WHICH
SUPPLIES THE MAJORITY OF OUR
POWER WERE ALSO CONNECTED TO PG
AND E. FOR THE GAP IN OUR
PRODUCTION OF POWER, AND FOR
WHEN OUR COGEN PLANT IS
DISCONNECTED. WE AS I SAID,
WE'RE GOING TO TRANSFORM OUR
CAMPUS. OUR PLAN IS TO RETIRE
OUR COGENERATION PLANT AND
REPLACE IT WITH A FULLY
ELECTRIFIED HEAT PUMP SYSTEM AND
PROVIDING HEATING AND COOLING TO
THE ENTIRE CAMPUS, USING HOT
WATER INSTEAD OF STEAM. SO, UM
OH, SORRY. WENT TO FAST. WHY NOW
? SO THERE'S SEVERAL REASONS FOR
WHY WE FEEL A REAL SENSE OF
URGENCY ABOUT THIS. UH KEY THING
IS THAT WE HAVE BEEN WORKING
TOWARDS THIS FOR A VERY LONG
TIME. THE BERKELEY CAMPUS TAKES
ITS CARBON NEUTRALITY GOALS VERY
SERIOUSLY. WE HAVEN'T MET ALL OF
OURS TO DATE, AND WE ARE
DETERMINED TO MEET OUR 2028 BOWL
AS WELL. UM ANOTHER KEY REASON
IS OUR SYSTEMS ARE FAILING. WE
HAVE AN OLD PLANT. WE HAVE OLD
BOILER BACKUP, AND WE HAVE STEAM
LINES THAT WENT IN WHEN THE
CAMPUS WAS BUILT IN THE 18
HUNDREDS, SO WE WERE FACING A
SIGNIFICANT INVESTMENT IN OUR
INFRASTRUCTURE TO PROTECT THE
CANVAS, AND WE WANT TO MAKE SURE
THAT WE ARE MAKING A FUTURE
FACING INVESTMENT RATHER THAN
SPENDING MONEY ON OBSOLETE
TECHNOLOGY. ANOTHER KEY REASON
THAT WE ARE DETERMINED TO MAKE
THIS TRANSFORMATION NOW IS
RESILIENCY, AS HAS BEEN STATED
PREVIOUSLY B THE OTHER
PRESENTERS WITH WILDFIRE AND
CLIMATE CHANGE AND OTHER
PRESSURES, RESILIENCY IS
CRITICAL. NOW WE EXPERIENCED THE
LOSS OF POWER DURING THE PS PS
IS A FEW YEARS AGO, AND IT WAS
DEVASTATING TO OUR CAMPUS TO OUR
STUDENTS AND IN PARTICULAR TO
OUR RESEARCHERS. WE HAD
RESEARCHERS DESPERATELY
SEARCHING FOR WAYS TO PRESERVE
CELL LINES AND EXPERIMENTS ON
WHICH THEY HAD SPENT YEARS OF
THEIR LIVES, AND WE WANT TO MAKE
SURE THAT THIS DOES NOT HAPPEN
AGAIN. WE HAVE A NUMBER OF
CRITICAL GOALS WITH THIS PROJECT
WILL ADVANCE THE PRIMARY ONE IS
PROVIDE AND FULLY ELECTRIFIED,
UM, EFFICIENT TO RELIABLE SYSTEM
ON WHICH THE CAMPUSES TEACHING
AND RESEARCH CAN DEPEND FOR
DECADES. UM BUT IN ADDITION, WE
SEE THIS AS A REAL OPPORTUNITY
FOR US TO BE A LEADER IN THIS
TYPE OF TRANSFORMATIVE
CONVERSION. WE WANT TO SHOW THAT
A MUNICIPALITY OR UNIVERSITY CAN
CREATE A RESILIENT MICRO GRID,
WHICH SERVES ITS CONSTITUENTS
WELL AND IS A BENEFIT TO THE
LARGER COMMUNITY AND TO THE
STATE AS A WHOLE. THIS IS A HUGE
PROJECT. WE WILL BE TEARING UP
EVERY INCH OF OUR CAMPUS AND IT
WILL TAKE YEARS TO COMPLETE AND
WE NEED ENGAGEMENT WITH MANY
PARTNERS TO MAKE THIS A SUCCESS
. THESE IMPORTANT PART PARTNERS
INCLUDE THE TRADE WORKERS WHO
WILL WORK ON THE INSTALLATION OF
THE COMPONENTS OF THIS PROJECT.
IT WILL INCLUDE C, BERKELEY'S
EXISTING TRADE STAFF WHO WILL BE
TRAINED IN NEW TECHNOLOGY SO
THAT THEY CAN BE PART OF THE
GREEN REVOLUTION. IT WILL
INCLUDE MANY INDUSTRY PARTNERS.
WE EXPECT TO WORK CLOSELY WITH
SMALL AND MEDIUM SIZED
BUSINESSES IN CALIFORNIA TO
PROCURE EQUIPMENT TO ADVISE ON
IMPLEMENTATION AND TO AID WITH
THE INSTALLATION. THIS WILL BE A
VERY VALUABLE ENGAGEMENT
OPPORTUNITY FOR US WITHIN THE
INDUSTRY REPRESENTATIVES ON THIS
FRONTIER. THANK YOU. PROBABLY
WRAP UP, APOLOGIZE WITH HIS ONE
OF FEW OTHER POINTS. YOU WANNA
LAST POINT? YOU WANT TO MAKE
SURE THAT WE'RE LOOKING AT ALL
OF THE TECHNOLOGIES THAT PEOPLE
HAVE MENTIONED HERE? WE'RE
LOOKING AT SOLAR ON TO FEED OUR
GRID DIRECTLY AND SO THAT WE CAN
FEED THE GRID BACK AGAIN. WE'RE
LOOKING AT GEOTHERMAL. WE
DRILLED A WELL ON THE CAMPUS TO
TEST OUR SOIL CAPACITY AND WE'RE
LOOKING AT ADVANCED CONTROLS
BECAUSE WE KNOW WE NEED TO, UM
TO MANAGE OUR BUILDINGS MORE
CLOSELY TO FIT OUR MICRO GRID
MODEL. AND LASTLY, WE'RE
DELIGHTED WITH THE 249. MILLION
PROJECT, SO WE ARE LOOKING AT
OTHER FUNDING OPPORTUNITIES SUCH
AS PUBLIC PRIVATE PARTNERSHIPS.
WE HOPE THAT THERE IS SOME
FEDERAL FUNDING OUT THERE NOW
WITH THE PASSING OF THE RECENT
BILL. UM PICTURE STATE FUNDING
AND WE HOPE PHILANTHROPY FOR
THIS VERY EXCITING PROJECT. SO
THANK YOU VERY MUCH. GREAT.
THANK YOU FOR DEMONSTRATION BUT
USING NEW TECHNOLOGIES, AND NOW
WE HAVE TWO MORE PRESENTERS BOTH
VERY IMPORTANT, BUT, YOU KNOW,
ASKED ME TO KEEP MY REMARKS
BRIEF. WE'LL GET TO SOME Q AND A
AS WELL. BRIAN VEERING FROM
AMERICAN CLEAN POWER ASSOCIATION
. BRIAN IF YOU ARE ALREADY
PLEASE GO AHEAD. PRIMARY SENIOR
SCREEN. I'M NOT SURE I SEE. CAN
YOU HEAR ME? YES I CAN HEAR YOU.
YEAH, THERE YOU HAVE. THANK YOU.
MY NAME IS BRIAN BEARING AND
WITH THE LAW FIRM ELLISON
SCHNEIDER. HARRISON DONLAN. WE
ARE A COUNCIL TO THE AMERICAN
CLEAN POWERS OF CALIFORNIA. I
ALSO SPEND A LOT OF MY TIME
WORKING FOR VARIOUS INDEPENDENT
GENERATORS HAVE TRYING TO
RESOLVE VARIOUS ELEMENT HURDLES
NATIONS THE WAY CASSITY LOAD.
AMERICAN CLEAN POWER REPRESENTS
THE INTERESTS OF UTILITY SCALE
REGIONAL AND OFFSHORE WIND,
SOLAR AND STORAGE AND MERCHANT
TRANSMISSION DEVELOPERS. WE HAVE
TO TAPER CLEAR AND PREDICTABLE
MARKET CALIFORNIA. WHAT I WANT
TO START OUT WITH, UM, IS
BASICALLY RECOMMENDATION THAT WE
OBVIOUSLY AS A CLEAN POWER
ASSOCIATION SUPPORT THE
INTEGRATION OF CLEAN ENERGY ON
THE GRID. WE ALSO STRONGLY
SUPPORT THE LIABILITY AND
BELIEVE THAT STATE CANNOT
MAINTAIN RELIABILITY CANNOT HOPE
TO ACHIEVE THE CLEAN ENERGY
GOALS REPUBLICS. ENERGY COALS TO
DEVELOP THE HATE AT THE PACE AND
SCALE OF GENERATION THAT'S
NEEDED TO MEET THE QUEEN ENERGY
COLES REALLY NEED PROACTIVE,
PREDICTABLE PROCUREMENT SIGNALS
AND SOME DISCUSSION TODAY OF THE
PROCUREMENT SIGNALS TODAY 3300
MEGAWATT ORDER THAT WE ARE
WORKING TOWARDS ITS POSSIBLE
11,500 MEGAWATT PROCUREMENT
ORDER. THAT WE ARE WORKING
TOWARDS. AND WHILE WE STRONGLY
SUPPORTED THOSE ORDERS, WE DID
NOT SEE THEM COMING. AND IT'S
ONE OF THE REASONS WHY WE ARE
SEEING DELAYS IN CAPACITY IS ONE
OF THE REASONS WHY THE
TRANSMISSION INTERCONNECTION
CUES ARE BACKED UP, AND I THINK
ONE OF THE MAIN POINTS I REALLY
WANT TO LEAVE YOU WITH TODAY IS
THAT TO ADDRESS THESE DELAYS TO
REALLY GET AWAY FROM LAST MINUTE
FOR CHAIRMAN, WE REALLY NEED
LONGER TERM PROACTIVE.
PROCUREMENT SIGNALS GOING
FURTHER OUT IN FIVE YEARS,
LOOKING OUT 10 YEARS. ALIGNING
pTRANSMISSION SIGNALS TO THERE IS
A SERIOUS WAY AND HOW THE
GOVERNMENT DATA FLOWS FROM THE
CPUC INTO THE CASE, SUCH
TRANSMISSION PLANNING PROCESS
AND WE ARE HOPING TO RECTIFY
THAT BY GETTING BETTER
INFORMATION OUT ABOUT
TRANSMISSION. WE'VE BEEN WORKING
ON A NUMBER OF BILLS THIS YEAR
THAT WOULD DO THAT. BUT WE ALSO
NEED LONGER TERM TRANSMISSION
PLANNING AND TRANSMISSION
PLANNING THAT MAY ENCOURAGE THE
DEVELOPMENT OF NEW TRANSMISSION
. IT'S NOT JUST FOR THE PROJECTS
THAT ARE ALREADY UNDER CONTRACT
THAT THE RESOURCE AREAS THAT WE
KNOW WILL BE NEEDED IN THE
FUTURE. THE TREE OF MANY OF YOU
HAVE SEEN THIS SLIDE BEFORE THIS
WAS FROM THE SP 100 STUDY. THIS
REALLY JUST SHOWS THAT THE
AMOUNT OF NEW CAPACITY AND
UTILITY SCALE CAPACITY THAT'S
NEEDED IN CALIFORNIA AND IT'S
HUGE AND TO REALLY ACHIEVE THESE
OBJECTIVES. WE NEED TO GET
WORKING. NOW WE HAVE BEEN
WORKING TOWARDS THESE
OBJECTIVES, BUT PACE AND SCALE
HAS NEVER BEEN SEEN BEFORE. IN
CALIFORNIA, WE'RE GOING TO NEED
TO BUILD OUT CAPACITY IN A WAY
THAT WE HAVEN'T BEFORE. WE'RE
GOING TO NEED TO ENCOURAGE
FINANCING IN A WAY THAT WE
HAVEN'T BEFORE THEY GET THAT
AGAIN. WE NEED CLEAR AND
PREDICTABLE RULES COMING FROM
RESOURCE ADEQUACY PROGRAM AND
THE I R P PROGRAM. NO ONE OF THE
BIGGEST DELAYS THAT I'VE BEEN
WORKING THROUGH AND THAT OUR
ORGANIZATION HAS BEEN ADVOCATING
ON IS THE ISSUE OF TRANSMISSION.
TRANSMISSION IS IMPORTANT ON A
NUMBER OF DIFFERENT LEVELS
OBVIOUSLY PROVIDES THE
INTERCONNECTION OF A RESOURCE TO
THE GRID. BUT IT ALSO PROVIDES
WHAT'S CALLED DELIVER ABILITY.
TRANSMISSION DELIVER ABILITY IS
THE ABILITY OF THE TRANSMISSION
SYSTEM BASICALLY DELIVER
ELECTRONS FROM A POWER PLANT,
TOO. SO EVEN IF YOU CAN GET THE
PROJECT INTER CONNECTED TO THE
GRID, THAT DOESN'T MEAN THAT
YOU'RE NECESSARILY GOING TO BE
ABLE TO DELIVER THAT ENERGY TO
WORLD. THE ISSUE THAT WE'VE
REALLY SEEN IS THAT THERE'S BEEN
DELAYS IN BOTH EXECUTING ON
TRANSMISSION. UM AND THAT'S FOR
A VARIETY OF DIFFERENT REASONS,
BUT WHAT WE REALLY NEED TO SEE
HIS MORE PROACTIVE TRANSMISSION
PLANNING. LOOKING OUT FARTHER
THAN 10 YEARS. WE REALLY NEED TO
BE LOOKING AT 20 YEARS. AND SO
HAS STARTED WORKING TOWARDS 20
YEAR TRANSMISSION PLAN. WE
HAVEN'T SEEN THAT YET ACTUALLY
FLOW INTO THE TRANSMISSION
PLANNING PROCESS, BUT WOULD LIKE
TO SEE THAT FUTURE UM THE OTHER
ISSUE THAT WE'RE REALLY SAYING
IS THAT THERE'S A SIGNIFICANT
DELAY BETWEEN THE I R P AND THE
TRANSMISSION PLANNING PROCESS
THAT KIND OF OUTLINED AN EXAMPLE
IN THE THIRD BULLET. THEY'RE
BASICALLY THE WAY THIS WORKS IS
WHEN, WHEN LOAD SERVING ENTITIES
SUBMIT THEIR PORTFOLIO DATA AND
HOW THEY'RE GOING TO BUILD OUT
THEIR PROCUREMENT PLANT PS THAT
TAKES THAT COMBINED STAM AND
THEN TRANSLATES THAT TO THE CHI
ZONE INPUTS AND ASSUMPTIONS FOR
THE NEXT TPP CYCLE. THAT OFTEN
TAKES THOSE THREE YEARS FROM THE
TIME WHEN WE ACTUALLY GET THE
LLCS PLANT AND TWO WHEN THE
DINOSAURS ACTUALLY STARTING TO
PLAN FOR TRANSMISSION, AND WE
NEED TO FIGURE OUT HOW TO
SHORTEN THAT TIME FRAME AND
AGAIN BY AND FOR A LONGER TERM
HORIZON. I KNOW WE'RE SHORT ON
TIME IS THE LAST POINT I'M GONNA
LEAVEYOU WITH IS THE IMPORTANCE
OF REGIONAL COORDINATION MR ROTH
LEADER TOUCHED ON THIS EARLIER
TODAY. AND CALIFORNIA HAS
LIMITED POTENTIAL IN TERMS OF
WHAT CAN ACTUALLY DEVELOPED
WITHIN ITS BORDERS, BUT BEYOND
ITS BORDERS, BOTH OFFSHORE AND
THEN OTHER STATES SUCH AS NEW
MEXICO, WYOMING, IDAHO, THERE'S
SIGNIFICANT RESOURCE DEVELOPMENT
POTENTIAL. MANY OTHER STATES ARE
ALREADY MOVING FORWARD WITH
COMBINING THEIR RELIABILITY
OBJECTIVES WITH THEIR CLEAN
ENERGY GOALS. CALIFORNIA NEEDS
TO BE A PART OF THAT SOLUTION.
CALIFORNIA NEEDS TO FIGURE OUT
HOW TO TAP INTO THESE RESOURCES
THAT ARE OUT OF STATE AND PLACES
IN HIGH CAPACITY FACTOR. AREAS
LIKE MEXICO AND YOU CAN SEE ON
THE YOU KNOW, JUST TO THE LEFT
OF THE WORD UNITED STATES THERE
, UM, BASICALLY THE HOW STRONG
THE WIND RESOURCES ARE IN THAT
REGION. YOU CAN SEE IT ALSO OFF
THE COAST OF CALIFORNIA. HAPPEN
TO THESE RESOURCES WE REALLY
NEED PROACTIVE PROCUREMENT
SIGNALS WILL BE GLAD TO SEE
LONGER TERM PROCUREMENT THAT OF
THE THAT FLOWS DIRECTLY FROM THE
ACTUAL PLANNING THAT ISN'T
DEVELOPED AND AN AD HOC BASIS
BUT POST DIRECTLY FROM THE
PLANNING INTO THE TRANSMISSION
PLANNING PROCESS AND PROVIDES
CLEAR, PREDICTABLE SIGNALS TO
LOAD SERVING ENTITIES WITH THAT
I WILL SEE THE REST OF MY TIME.
THANK YOU. THANK YOU VERY MUCH
FOR THAT TESTIMONY WHEN I MOVE
ON TO OUR FINAL PRESENTER ALEX
MARK MORRIS, EXECUTIVE DIRECTOR
OF CALIFORNIA STORAGE ALLIANCE,
LAST PRESENTER, BUT CERTAINLY
NOT THE LEAST IMPORTANT TOPIC AS
WE'VE STORAGE HAS BEEN A THEME
THROUGHOUT THIS HEARING, SO
THANK YOU. GO AHEAD. SENATOR.
THANK YOU. ALEX MORRIS, THE
EXECUTIVE DIRECTOR WITH THE
CALIFORNIA ENERGY STORAGE
ALLIANCE, AND I JUST WANTED TO
SAY THANK YOU. I THINK THIS IS
IMPORTANT. FANTASTIC FOR YOU
GUYS TO BE GATHERING INFORMATION
AND COORDINATING THIS HEARING,
SENATOR STERN AND THE OTHER
SENATORS. HELLO I APPRECIATE THE
CHANCE TO BE HERE AND I'LL JUST
JUMP STRAIGHT INTO IT BECAUSE IN
THE GRAND SCHEME OF THINGS LIKE
CALIFORNIA IS EXPERIENCING IS
WHAT EVERYBODY ELSE IS GOING TO
EXPERIENCE, WHICH IS THAT AS YOU
CLEAN UP YOUR ELECTRIC SYSTEM,
WE START TO ADD LOW HANGING
FRUIT LIKE RENEWABLES, AND YOU
DO YOUR BEST. BUT SOONER OR
LATER, YOU STUMBLE INTO
SIGNIFICANT CHALLENGES WHERE
YOUR PROCESSES ARE OFTEN
OVERWHELMED. AND WE'RE BRINGING
THE INDUSTRY'S FORWARD INTO THE
STATE TO START TO PROVIDE
SOLUTIONS, AND WE'RE BASICALLY
HOLDING UP THE OLD SYSTEM AND
THE NEW SYSTEM AT THE SAME TIME
, AND THIS IS WHERE ALL THE
CHALLENGES COME TOGETHER. AND I
THINK, LIKE SO MANY OF US WERE
SEEING THAT CHANGE IS COMING
FASTER THAN MANY OF OUR MODELS
PREDICTED. AND SO EVERYBODY IS
RAMPING UP. I THINK FOR ENERGY
STORAGE. WE KNOW THAT AS YOU
PUSHED PAST 30% RENEWABLE
STANDARD, YOU TEND TO START TO
NEED TO BRING IN THE STORAGE IN
ORDER TO ACCOMMODATE EVER HIGHER
LEVELS OF RENEWABLES. AND SO YOU
REALLY NEED TO BRING IN THE
RIGHT PORTFOLIO OF STORAGE TO
MAKE THAT HAPPEN. CALIFORNIA AS
YOU MAY KNOW, AS A TRUE LEADER
HERE AND IS ONE OF THE LARGEST
STORAGE MARKETS IN THE ENTIRE
WORLD, AND BEHALF OF THE ST
LOUIS IN STORAGE ASSOCIATION,
YOU KNOW, IT'S A PLEASURE TO
WORK HERE. WE THINK CALIFORNIA
IS DOING A GREAT JOB, AND I
THINK LEGISLATIVELY NEAR TERM WE
WERE RIGHT TO FOCUS ON BOTH.
CRITICAL EXECUTION AREAS FOR THE
NEXT TWO YEARS AND THEN ALSO
KEEP AN EYE ON THE FUTURE AND
CONTINUE TO BUILD OUR SOLUTION.
PIPELINE AND TOOLKIT TO MAKE
SURE CALIFORNIA HAS WHAT IT
NEEDS IN TIME. YOU'VE GOTTEN A
LOT OF GREAT IDEAS FROM THE
GROUP TODAY, I WOULD SAY PERHAPS
MOST IMMEDIATELY ON BEHALF OF
SESSA AND 100, PLUS MEMBERS
FOCUSING ON SOME OF THE
BUDGETARY ITEMS IN THE NEXT
MONTH WILL BE CRITICAL FOR NEAR
TERM HEALTH AND I'LL GIVE YOU
TWO EXAMPLES. ONE IS UM, THE
LEGISLATURE AUTHORIZED BUDGET
THAT INCLUDED 140 MILLION FOR
LONG DURATION STORAGE
COMMERCIALIZATION, AND THERE'S
AN ADDITIONAL 240 MILLION
AVAILABLE TO SAY ALL OF THAT
FUNDING IS CRITICALLY NEEDED TO
GO THROUGH TO THE CEO FOR A
PROGRAM AND I'LL EXPLAIN WHY AND
ALSO, I THINK THE LEGISLATURE IS
IN A POSITION TO AUTHORIZED
FUNDING TO HELP WITH REFORMS FOR
THAT ENERGY METERING AND HOW
THAT RELATES TO THIS SELF
GENERATION INCENTIVE PROGRAM IN
ADDITIONS OF STORAGE. THE
CUSTOMER PREMISE. YOU KNOW, I
REFER TO THAT AS ESCAPE, AND I
THINK THE SHIP PREAUTHORIZATIONS
AND EXTENSIONS ARE REAL EVIDENCE
IS REALLY CRITICAL TO HELPING.
TAKE ADVANTAGE OF ALL THE SMART
SOLAR SYSTEMS. WE ALREADY HAVE
GROUND STATE BY AUGMENTING THOSE
WITH STORAGE AND THEN ADDING
MORE STORAGE AND GOING ALL THE
WAY BACK TO MARK AND MR ROGERS
COMMENTS. WE KNOW THAT THE REAL
NEAR PAN POINT FOR THE STATE IN
23 24. PROBABLY 25 IS REALLY 5
TO 9 P.M. AND ALL OF THE DATA
WE'RE GETTING ON STORAGE IS THAT
WE CAN HELP WITH THAT EVERY DAY
WHILE OBSERVING RENEWABLES, AND
I THINK BEYOND THAT WE WANT TO
BE BUILDING A PORTFOLIO THAT
WORKS. AND THAT MEANS WE NEED
THIS LONG DURATION, STORAGE AND
KIND OF IN ALL OF THE ABOVE
STRATEGY, SO I WANT TO TIP MY
HAT TO YOU GUYS. I THINK IT'S
REALLY IMPORTANT WHAT YOU'RE
DOING. ON BEHALF OF THE INDUSTRY
SIDE WE ARE COMMITTED TO
CALIFORNIA IS ONE OF OUR MOST
IMPORTANT MARKETS, AND I LOOK
FORWARD TO ANSWERING ANY
QUESTIONS YOU HAVE. SO THANK YOU
FOR YOUR TIME TODAY. THANK YOU
VERY MUCH FOR THAT IMPORTANT
TESTIMONY AND LOOK FORWARD TO
ENGAGING, POSSIBLY TODAY, BUT
CERTAINLY IN THE FUTURE ON HOW
DO WE CONTINUE TO INCREASE OR
STORAGE CAPACITY AGAIN
INTRODUCED TIME OF PRIME MOVED
TO PUBLIC COMMENT, AND WE WILL
START OUT WITH PUBLIC COMMENT
HERE IN RIVERSIDE AGAIN. I'M
TRYING TO THINK OF OUR
PRESENTERS. HERE TODAY. WE'RE
GOING TO MOVE TO PUBLIC COMMENTS
INITIALLY WITH WITNESSES HERE IN
ROOM 1200 GO AHEAD. GOOD GOOD
AFTERNOON, MIKE ROBSON HERE ON
BEHALF OF THE CALIFORNIA
MUNICIPAL UTILITIES ASSOCIATION
. THIS IS THE TRADE ASSOCIATION
REPRESENTING THE PUBLICLY OWNED
UTILITIES, PROVIDING ABOUT 25%
OF THE STATE'S ENERGY NEEDS. SEE
ME WAY. I THINK YOU BOTH BOTH
SENATORS KNOW ISSUED A REPORT
EARLIER THIS YEAR TITLED
POWERING CALIFORNIA'S FUTURE,
WITH CLEAN, AFFORDABLE AND
RELIABLE ENERGY AND HAD FOUR
PRINCIPLES THAT THEY HIGHLIGHTED
IN THAT REPORT, AND MUCH OF IT
WAS KIND OF REPEATED BY SOME
STATED EARLIER BY SOME OF YOUR
PREVIOUS PANELISTS, BUT
BASICALLY, YOU KNOW, CMU A GOING
FORWARD FOR, UH, CLEAN AND
AFFORDABLE AND RELIABLE ENERGY.
THEY KEY PRINCIPLE IS IT WAS
REGULATORY PREDICTABILITY
PREDICT PREDICTABILITY, WHICH I
DO KNOW. SOME OF THE PANELISTS
HAVE COMMENTED ON IN THAT, AND
THAT'S REALLY THAT'S REALLY
CRITICAL FOR PLANNING AND FOR
PROCUREMENT PURPOSES TO JUST
KNOW WHAT THE RULES ARE GOING TO
BE. NOT JUST TODAY, BUT DOWN
DOWN THE ROAD AND INTO THE
FUTURE AND ALSO LEX ABILITY.
THEIR PAPER TALKED A LOT ABOUT
FLEXIBILITY AND THE ABILITY TO
TRY NEW TECHNOLOGIES. AND SEE
WHAT THE NEEDS ARE AND HOW THEY
CAN BE MET AND GIVING THEM THAT
ABILITY AND SO REALLY APPRECIATE
THE HEARING TODAY AND APPRECIATE
THE ABILITY TO SPEAK ON THE
PUBLIC COMMENT AND LOOK FORWARD
TO WORKING WITH BOTH SENATORS
AND OTHER MEMBERS OF THE
COMMITTEE ON THIS SUBJECT IN THE
NEXT LEGISLATIVE SESSION. THANKS
THANK YOU FOR YOUR COMMENTS. I
DO HAVE A NUMBER OF MUNICIPAL
UTILITIES IN MY DISTRICT. I
APPRECIATE THOSE COMMENTS. UM
WE'LL HEAR FROM MR STERN
APPRECIATE YOU. BEING WITH US
AND HOPEFULLY HERE AGAIN.
ABSOLUTELY THANK YOU, SENATOR.
THANK YOU, SENATORS. ABSOLUTELY
THE RIGHT QUESTION. I'M
UNDERSTOOD. I'M WITH I B W LOCAL
12 45 AND ALSO WITH QUÊ
COALITION OF CALIFORNIA UTILITY
EMPLOYEES ARE MEMBERS WORKED FOR
THOSE MUNICIPAL UTILITIES, AS
WELL AS THE INVESTOR OWNED
UTILITIES HERE IN CALIFORNIA WE
HAVE ABOUT 40,000 MEMBERS DOING
THAT WORK. SO FIRST AND FOREMOST
, WE HAVE SEEN THE NEED LOTS OF
TALK ABOUT TRANSMISSION. WE
HEARTILY AGREE. WE HAVE EXPANDED
OUR TRAINING PROGRAMS TO SUPPLY
THOSE WORKERS. WE HAVE A NEW
TRAINING CENTER OUTSIDE.
ACTUALLY HERE IN WOODLAND. WE
HAVE EXPANDED OUR EXISTING
TRAINING CENTER IN RIVERSIDE,
AND WE HAVE GONE FROM ROUGHLY
300 PEOPLE. EXCUSE ME, 300
PEOPLE IN THOSE TRAINING
PROGRAMS TO OVER 1000 BY THE END
OF THE YEAR WHEN WE EXPECT AS
PERMIT PERMITTING AND OTHER
ISSUES ARE RESOLVED ON THE
TRANSMISSION SIDE WILL BE
PRODUCING OVER 1000. APPRENTICES
ANNUALLY BY 2024, WHICH IS A BIG
STEP IN PROVIDING THE WORKERS
NEEDED TO DO THIS WORK. SO
THAT'S FIRST AND FOREMOST, YOU
KNOW, WE'VE HEARD A LOT OF
POSITIVE THINGS ABOUT
TRANSMISSION DEVELOPMENT AND THE
NEED FOR MORE TRANSMISSION. WE
COMPLETELY AGREE. IT'S NOT JUST
FOR WORK. IT IS TO GIVE
EVERYBODY IN THE STATE ACCESS TO
THIS CLEAN ENERGY, WHICH WE
CAN'T DO TODAY WON'T REPEAT ALL
THE OTHER COMMENTS. THE OTHER
THING THAT WILL UNDERSCORE AND
THIS WAS ALSO TALKED ABOUT BY
MANY OF THE SPEAKERS. IS THAT
NEED FOR WHAT WE CALL BASE LOAD
. CLEAN ENERGY. GEOTHERMAL WAS
NOT MENTIONED. THERE HAVE BEEN
CONCERNS ABOUT COST. HOWEVER
ESPECIALLY WITH THE DEVELOPMENT
WORK IN LITHIUM VALLEY AND THE
CAPACITY THAT'S THEIR VIEW.
GEOTHERMAL WISE AS WELL AS
EXTRACTION OF LITHIUM. WE THINK
THAT THOSE TWO, UM, NECESSARY
TECHNOLOGIES AND WORK WILL
PRODUCE LOWER COST AND MORE
AFFORDABLE, CLEAN ENERGY. LONG
DURATION STORAGE WAS JUST
MENTIONED. IT REALLY IS KEY. WE
SUPPORT IT IN EVERY VARIATION
AND OF COURSE, THE I B W MORE
GENERALLY LOOKS TOO. WORK AS
WELL AS OTHER BUILDING TRADES.
UNIONS WORKS TO HELP TO BUILD
THESE KINDS OF PROJECTS,
GEOTHERMAL AND LONG DURATIONS
TOWARDS AS WELL, UM SO ONE THING
I DO WANT TO MENTION THAT WASN'T
SPECIFICALLY MENTIONED THAT WE
ALSO HEARTILY SUPPORT. IT'S A
IT'S THEIR 15. IT'S THE GOAL OF
A 15% SPINNING RESERVE. THIS IS
SOMETHING THAT HAS BEEN THE
STANDARD IN CALIFORNIA AND
REMAINS THE STANDARD, BUT WE'RE
HAVING DIFFICULTY REACHING IT.
THE CPUC HAS IDENTIFIED THIS. WE
SUPPORT THIS. AGAIN 100% IT'S
ENSURING THAT THERE'S ENOUGH
POWER ON THE GRID AND ALSO
DELIVERABLE TO ALL ALL ALL
RESIDENTS AND BUSINESSES.
HOWEVER WE GET THERE, YOU KNOW,
AND ALL THE DIFFERENT IDEAS AND
CONCEPTS AND TECHNOLOGIES THAT
WERE DISCUSSED. IT'SSTILL
WE'VE. UNFORTUNATELY WE'VE
UNDERMINED OR AT LEAST
BALKANIZED. SOME OF THE
PROCUREMENT IN THE STATE. IT'S
HARDER NOW TO MEET THAT THAT
SPINNING RESERVE. THE CPUC DOES
HAVE A FEW TOOLS, AND I THINK
THEY WERE MENTIONED PREVIOUSLY.
THE CENTRAL PROCUREMENT. UM
THERE'S THEY ALSO HAVE THE
ABILITY TO FIND LOAD SERVING
ENTITIES WHO AREN'T CONTRIBUTING
THE WHAT'S KNOWN AS RESOURCE
ADEQUACY THE PRODUCT, NOT THE
CONCEPT. BUT FINDS OBVIOUSLY
DON'T PRODUCE ELECTRICITY, AND
THIS IS AN AREA ESPECIALLY FOR
OUR MEMBERS WHO ARE SERVING
CUSTOMERS AND WHOSE CUSTOMERS
ARE UPSET WHEN THERE IS A
ROLLING BLACKOUT. WE REALLY NEED
AND NEED TO ENSURE THAT THERE IS
ADEQUATE RESOURCE ADEQUACY, AND
IT'S DELIVERABLE TO EVERYBODY.
AT ALL TIMES. AND THESE ARE
PRINCIPLES AND IDEAS THAT WE
STRONGLY SUPPORT. THANK YOU FOR
THE OPPORTUNITY, AND WE LOOK
FORWARD TO ENGAGING IN THE
FUTURE. GREAT. THANK YOU VERY
MUCH. YOU HAD A LOT OF OUR
THEMES. BOUNDARIES IN STORAGE
BASE LOAD POWER. WE WERE PROUD
TO PUT LITHIUM VALLEY IN THE
STATE BUDGET. THERE IS ONE
GIGAWATT OF GEOTHERMAL. I
UNDERSTAND THAT IT'S
ANTICIPATED. SO DO YOU LOOK
FORWARD TO UM, EXPLORING THAT
MORE AS WELL. AND I KNEW THAT
GETTING MORE TRANSMISSION, BE
MUSIC TO YOUR EARS AND LOOK
FORWARD TO VISITING THE TRAINING
CENTER. IT'S GREAT TO HEAR ABOUT
THAT RAMP UP. THERE WE WILL SEE
NO OTHER SPEAKERS IN THE ROOM
WILL MOVE TO THE PHONE LINES. WE
HAVE TO BE OUT OF THIS ROOM,
UNFORTUNATELY AT NOON, BUT WE
MOVED TO THE PHONE LINES AND ASK
PEOPLE TO KEEP THEIR REMARKS TO
ONE MINUTE AND TURN IT OVER TO
THE OPERATOR. THANK YOU. LADIES
AND GENTLEMEN, IF YOU WISH TO
SPEAK, PLEASE PRESS 10 ON YOUR
PHONE. SOMEONE WHO GIVE YOU A
LINE NUMBER AND WE WILL CALL ON
YOU AS IT'S YOUR TURN. AND WE
WILL START WITH MINE NUMBER. 12,
PLEASE GO AHEAD. NUMBER 12. YES,
THANK YOU. HELLO MY NAME IS RYAN
PICKERING. AND I'M A 34 YEAR OLD
CLEAN ENERGY PROFESSIONAL
CALIFORNIA. AFTER WORKING IN
CALIFORNIA SOLAR DEPLOYMENT FOR
THE LAST 12 YEARS, I HAVE
WITNESSED FIRSTHAND THE GROWING
PAINS OF THE ENERGY TRANSITION.
TOGETHER WITH OUR ALLIES IN
EUROPE, WE HAVE LEARNED SOME
HARD TRUTHS ABOUT RENEWABLE
ENERGY LIKE WIND, WATER, SOLAR
AND STORAGE. THANKFULLY NEW DATA
IS REVIEWING THAT BASE LOAD
THERMAL JANITORIAL EATERS LIKE
NUCLEAR AND GEOTHERMAL ARE
ESSENTIAL FOR GRID, RELIABILITY
AND AFFORDABILITY. AT THIS TIME
, CALIFORNIA CANNOT AFFORD TO
LOSE. 24 7 INCLUDED ENERGY OF
DIABLO CANYON POWER PLANT. TO DO
SO WOULD BE TO RISK IN THE VERY
STABILITY ABOUT REPUBLIC. IN MAY
OF THIS YEAR OF REPRESENTATIVES
FROM CAISO TOLD A REPORTER THE L
A TIMES THE FOLLOWING QUOTE THE
PAST TWO SUMMERS HAVE
DEMONSTRATED THAT ADDITIONAL
RESOURCES ARE NEEDED TO ACCOUNT
FOR EXTREME CONDITIONS AND
SUPPLY PLAYS, WHICH ARE NOT
ADEQUATELY CAPTURED. TRADITIONAL
PLAN METRICS AND QUOTE MAY 2ND
JOY 2022. THE CANYON IS THE
LARGEST POWER PLANT IN THE STATE
AND CAN COVER THE GAP. THAT KIND
OF WAS WARNING US ABOUT. DESPITE
PLANS TO CLOSE PLANTS IN 2024
2025. EXPERTS HAVE TESTIFIED
THAT THE PLANT CAN OPERATE AT IS
ADDITIONAL 40 YEARS. THE
ENVIRONMENTAL STATES HAVE NEVER
BEEN HIGHER CALIFORNIA'S LAW
CALIFORNIA LAW STATES, WE CANNOT
INCREASE EMISSIONS THAT THIS WAS
CERTAINLY OCCURS. WE CLOSED THE
PABLO AND REPLACE IT WITH
NATURAL GAS POWER PLANT
PRODUCTION. SOCIAL IMPACTS OF
DIABLO CANYON POWER PLANT IS A
MESS. ISN'T THAT THE PLANT IS
FULLY PAID FOR IT IS MOST MOST
AFFORDABLE, CLEAN ENERGY
AVAILABLE IN CALIFORNIA TODAY IS
ESSENTIAL TO THE VIABILITY OF
OUR STATE. THANK YOU. WE DO HAVE
TO MOVE ON AND KEEP IT UP. KEEP
THESE LIMITED BUT THANK YOU FOR
YOUR MATTER. I SHOULD ASK HOW
MANY FOLKS WERE IN THE QUEUE.
YES AT THIS TIME. THERE ARE 17
17 TRY TO, UM PLEASE ASK FOLKS
TO KEEP THEIR COMMENTS BRIEF,
ESPECIALLY IF SOMEONE'S ALREADY
MENTIONED WHAT HE WANTED TO SAY
IF YOU COULD DO IT. DITTO AND
WE'LL MOVE ON NEXT NEXT COMMENT,
PLEASE. THANK YOU. NEXT. WE HAVE
LINE NUMBER 32, PLEASE GO AHEAD.
CLAY. I'M A PROFESSOR OF PHYSICS
AT CAL POLY AND A RESIDENT OF
SAN LUIS OBISPO. I'M A NUCLEAR
PHYSICIST BY TRAINING, AND I
STUDY NUCLEAR COLLISIONS THAT
BOTH HIGH AND LOW ENERGY SO THAT
WE CAN BETTER UNDERSTAND HOW THE
UNIVERSE WORKS. MAKE NUCLEAR
REACTOR FUEL MORE EFFICIENT. AS
A SCIENTIST, I BASE MY DECISIONS
ON TRACK DATA AND EVIDENCE. AND
IN THE FACE OF THE OVERWHELMING
EVIDENCE OF CLIMATE CHANGE AND
THE URGENT NEED FOR US TO
ACHIEVE 002 EMISSIONS AS QUICKLY
AS POSSIBLE. I THINK WE NEED TO
PRIORITIZE THE PRESERVATION OF
DIABLO CANYON NUCLEAR POWER
PLANT BY CLEARING ALL PATHWAYS
TO RELICENSING AND EXTENSION OF
THIS CRITICAL ASSET IN OUR PATH
TO DEEP DECARBONIZATION. WE MUST
DO EVERYTHING WE CAN TO KEEP IT
OPEN AND OPERATING INTO THE
FUTURE AND INVEST IN ALL CLEAN
ENERGY GENERATION, INCLUDING NEW
NUCLEAR POWER PLANTS. I THINK WE
HAVE TO LEAD THE WORLD BY
EXAMPLE, THERE'S A DEMONSTRATED
PATH OF DECARBONIZATION, AND WE
NEED TO AVOID THE EMPTY PROMISES
OF 100% RENEWABLES ADVOCATES WHO
IGNORE THAT PARALLEL BUILD OUT
OF FOSSIL FUEL PLANTS THAT ARE
NECESSARY TO PROP UP THE
INTERMITTENT SEA OF WIND AND
SOLAR. I THINK THE LOW CARBON
ELECTRICITY SYSTEMS IMPLEMENTED
IN SWEDEN, ONTARIO, CANADA AND
FRANCE SHOULD LIKE THE WAY
FORWARD AND NOT THE FAILED
ENERGY. VENDA OF GERMANY. THANK
YOU. SO I WAS GOING TO PHYSICIST
CALLING WOULD YOU HAVE TO MOVE
ON? I APOLOGIZE. MODERATOR WILL
MOVE THE NEXT ONE. THANK YOU.
NEXT. WE HAVE LINE NUMBER 33,
PLEASE GO AHEAD. HI MY NAME IS
STEVEN WILLIAMS ON A RETIRED
SOFTWARE SOFTWARE ENGINEERING,
LONGTIME RESIDENT OF SANTA CRUZ
, CALIFORNIA. I JUST WANT TO
MENTION MY SUPPORT ALSO FOR
DIABLO CANYON, AND THAT THE
INTERGOVERNMENTAL PANEL ON
CLIMATE CHANGE THE INTERNET
NATIONAL ENERGY AGENCY ALSO SAY
WE NEED NUCLEAR ENERGY IN THE
MIX. WE SUCCESSFUL. AS HAVE THE
LAST FOUR PRESIDENTS OF THE
UNITED STATES AND THE CURRENT
ADMINISTRATION. UH SO LET'S KEEP
DIABLO CANYON OPERATING. IT'S
THE SINGLE LARGEST ENERGYSOURCE
OF CLEAN ENERGY IN CALIFORNIA.
THERE'S NO GOOD REASON TO SHUT
IT DOWN. AND I HOPE, CALIFORNIA
ALL STARTS ALSO STARTS PLANNING
ON DEPLOYMENT OF ADVANCED SMALL
REACTORS AS OTHER STATES ARE
ALREADY WORKING ON OKAY. THANK
YOU. THAT WAS A NEW POINT.
APPRECIATE YOU MENTIONED THAT
AGAIN. WE'LL JUST NAME AND
ORGANIZATION IF YOU IF YOU'RE RE
FIRMING, SOMETHING THAT WAS
ALREADY SAID, WE'RE TRYING TO
KEEP COMMENTS TO 15 OR 30
SECONDS. HOPEFULLY YOU ENJOYED
OUR DIABLO TESTIMONY. NEXT
SPEAKER, PLEASE. THANK YOU.
NEXT. WE HAVE LINE NUMBER 28,
PLEASE GO AHEAD. OH, HELLO. THIS
IS ERIC MEYER. CRAFT GENERATION
ATOMIC WHERE GRASSROOTS, PRO
NUCLEAR ENVIRONMENTAL NONPROFIT
. YES I WILL ECHO THE SENTIMENTS
OF THE PREVIOUS COLLARS AND ALSO
ADD ON TO THE FACT THAT WE'VE
BEEN ENGAGING WITH SEVERAL
AGRICULTURAL ASSOCIATIONS ABOUT
THE PROSPECT OF USING DIABLO
CANYON FOR DESALINATION OF
SEAWATER TO HELP CREATE SOME OF
THE WATER CHALLENGES, AND
THERE'S A LOT OF SUPPORT THERE
AND THE 2021 LEAD STUDY LAST
YEAR FROM UM, IT AND STANFORD
SHOWS THE POTENTIAL OF THAT. SO
PLEASE THINK ABOUT WATER AS WELL
AS WHEN WE'RE THINKING ABOUT
ENERGY. THANK YOU SO MUCH. THANK
YOU. NEXT SPEAKER, PLEASE. NEXT
WEEK OF LINE 35, PLEASE GO
AHEAD. I'M JIM HOFFMAN, A POLICY
LEADER. GENERATION COMIC THAT
AREN'T ERIC MENTIONED. I'M ALSO
HERE TO ADVOCATE FOR CONTINUED
OPERATION WITH DIABLO CANYON.
DEVIL CANYON WILL BE ESSENTIAL
FOR MAINTAINING GRID RELIABILITY
WHILE MEETING CALIFORNIA'S
CLIMATE COMMITMENTS. STEADY,
RELIABLE POWER. ESPECIALLY
DURING STAY THAT LATE EVENING
WHEN YOU KNOW, DEMANDED SIZED,
BUT SOLAR HAS QUIT. WILL GREATLY
REDUCE THE COST OF MEETING OUR
CLIMATE GOALS WHILE MAINTAINING
RELIABILITY BY GREATLY REDUCING
THE NECESSARY AMOUNT OF STORAGE.
WE'RE HEARING THAT THERE'S AN
1800 MEGAWATTS SHORTAGE BY 2025
THE SIMPLE ACT OF KEEPING GAVEL
OPEN WITH JUST ELIMINATE THAT
SHORTFALL. IF WE WANT TO MAKE
PROGRESS ON CLIMATE, WE CAN'T
AFFORD TO REPLACE ONE NON
EMITTING SOURCE WITH ANOTHER. TO
MAKE PROGRESS. RENEWABLES NEED
TO REPLACE FOSSIL FUELS INSTEAD
OF FOSSIL FUELS ARE STILL 50% OF
THANK YOU. THANK YOU VERY MUCH.
SORRY. WE HAVE TO KEEP MOVING.
NEXT SPEAKER, PLEASE WRITTEN
TESTIMONY. NEXT WE HAVE LINE
NUMBER 38, PLEASE GO AHEAD. ALSO
I WANT TO REMIND PEOPLE THAT AND
IF WE DO CUT YOU OFF, I
APOLOGIZE. YOU CAN SUBMIT
WRITTEN TESTIMONY AS WELL. I DID
WANT TO REMIND FOLKS WITH THAT
OPTION NEXT SPEAKER. 38 YOUR
LINE IS OPEN. THANK YOU. HELLO
MY NAME IS ALI G TRIO WITH THE
MICRO GRID RESOURCES COALITION.
THANKS FOR THE HEARING TODAY. I
JUST WANT TO UNDERSCORE
SOMETHING WITH THE PRESENTER
SAID TODAY ABOUT PRICE SIGNALS
BEING NEEDED AND CLEAR TARIFFS
FOR PROJECTS LIKE MICROGRIDS,
WHICH CAN PROVIDE DISPATCH FULL
CAPACITY AND HELP ALLEVIATE OUR
RELIABILITY CHALLENGING MEET THE
NEXT FEW WEEKS. PERIOD CAN
REALLY HELP ADDRESS A LOT OF
THESE ISSUES THAT WE HAVE THE
PRICE SIGNALS AND CLEAR TARIFFS
AND MARKET SIGNALS TO HELP US
MONETIZE THE RESOURCES. AND IF
SOMEONE SAID EARLIER ABOUT
STREAMLINING THE PROGRAMS ARE
SUCH A HOT PAS, YOU CAN HAVE ONE
CLEAR TARIFF AND PRICE SIGNAL
FOR GRID SERVICES, FIRM CAPACITY
AND RESILIENCE FOR COMMUNITIES.
THAT IS THE WAY THAT WE CAN MEET
ALL OF OUR RESILIENCE AND
RELIABILITY GOALS WITH MICRO
GRIDS. UM, I'LL SUBMIT WRITTEN
COMMENTS TO HELP SHORTEN TIME.
THANK YOU. THANK YOU VERY MUCH.
NEXT SPEAKER, PLEASE. THANK YOU.
NEXT WAY OF LINE. 43, PLEASE GO
AHEAD. HI KAREN MEMBERS. THIS IS
IGOR TRACK OF WHAT THE
CALIFORNIA SOLIDER AND STORAGE
ASSOCIATION, WHICH REPRESENTS
OVER 720 MEMBERS, MOST OF THEM
SMALL BUSINESSES AND 65,000
WORKERS IN DISTRIBUTED SOLAR AND
STORAGE. NEED MORE FATHER NOT LEFT. WE
NEED MORE THAN BATTERIES, NOT
LESS UNTIL REALIZE OUR SHARED
CLEAN ENERGY FUTURE. WE NEED TO
WE NEED TO DO MORE WITH THE
FATHER AND BATTERIES WE ALSO
NEED TO STRENGTHEN POLICIES
TO ALLOW FOR ABOUT A WEEK
AND PARTIAL POWER PLANTS
TO SUPPORT GOOD RELIABILITY
THE TWO PARTS OF THE DISTRICT
AT FOLLY BEACH AND OPTED AND
WE FROM HERE HAVE BEEN WORKING
AND MIDDLE CLASS NEIGHBORHOODS
SO THE PAST DECADE OUR MEMBERS
HAVE BUILT PALATABLE THE HIGHEST
AMOUNT OF FILLER CAPACITY FOR
MULTI FAMILY HOUSING IN THE
COMMUNITIES MOST AND PARTLY
IMPACTED BY POLLUTION COUNTY
SUCH AS FENTANYL LIQUEFIED
AND SEND PORTANTINO AS WELL AS
L. A. COUNTY AT THE UKRAINE
NATO THIS IS EXISTENTIALLY
IMPORTANT TO ME AND MY FAMILY
THANK YOU SO MUCH FOR EVERYTHING
YOU ARE DOING COULD SPEED UP
THE TRANSITION TO DEMOCRATIZE
WITH YOUR BILL HUNDRED
PERCENT CLEAN ENERGY SOURCE
THANK YOU FOR NEXT YEAR OKAY OF
LINE THIRTY SIX PLEASE GO AHEAD
GOOD AFTERNOON CARE MEMBERS
A PRIVILEGE ON BEHALF OF
RUSSIAN PROPANE GAS AND SAFETY
CERTIFICATION AND WPGA V.
G. THREE PJ FREE THAT THE
LEGISLATURE TAKING SERIOUSLY
THE CHALLENGE PROVIDING RELIABLE
ENERGY TO CALIFORNIA CONSUMERS
AS THE STATE MOVES TOWARDS A
CARBON NEUTRAL FUTURE ROUGHLY
THAT THE COMMITTEE RECOGNIZES
DISPATCHABLE GENERATION USING
LOW CARBON ZERO CARBON FEELS
ABOUT IMMEDIATE SOLUTION TO THE
NEEDS OF RESIDENTIAL COMMERCIAL
AGRICULTURAL AND INDUSTRIAL
CONSUMERS WANT TO POINT OUT THAT
PROPANE GAS ALREADY PROVIDED
VASTLY DECREASE GHG FOOTPRINT
IN DETAIL AND NATURAL FIELD
IN ADDITION TO BEING HIGHLY
PORTABLE OUR DEPARTMENT THEY ARE
DISCONNECTED FROM NATURAL GAS
PIPELINES ARE AN AREA TYPICALLY
AFFECTED A PUBLIC SAFETY POWER
SHUT OFF AIM TO RELIABLY PROVIDE
HE EMPOWER IN ADDITION THE
PROPANE INDUSTRY IS INVESTING
HEAVILY INTO RENEWABLE PROPANE
GAS THAT'LL PROVIDE DRASTICALLY
REDUCE CARBON INTENSIVE FUELS
FOR THE FUTURE DR HERMAN HIGHLY
SUSTAINABLE A PERSON SUCH AS
AGRICULTURAL AND MUNICIPAL
WASTE RENEWABLE PROPANE CAN
PROVIDE CALIFORNIANS EVEN
CLEAR FIELD WITH AN EXTREMELY
FAR CAUGHT CARPENTER PRINT
INDUSTRY THOUSANDS OF WELL PAID
EMPLOYEES ACROSS CALIFORNIA
ARE WORKING CLOSELY TO DEVELOP
BLACK CARBON INTENSITY THE NEW
BILL PROPANE DEVELOPING NEW
TECHNOLOGIES AND FEEDSTOCK TO
FURTHER AND SHE CALIFORNIA'S
CHRONICLES THANK YOU THANK
YOU THAT'S THE PLYMOUTH OF IT
RESTS IN WRITING APPRECIATED
THANK YOU NEXT WEEK -- THANK
YOU THANK YOU MAY HAVE LINE
NUMBER FIFTY ONE PLEASE GO AHEAD
HELLO HELLO
PLEASE GO AHEAD HI
THIS IS LESLIE PURCELL CALLING
-- I'M JUST CALLING TO SUPPORT
NOT EXTENDING DIABLO CANYON I
DON'T THINK THAT WE ACTUALLY
NEEDED AND WE DO NEED MORE
SOLAR LOCAL GENERATION AND
MORE BATTERY STORAGE --
WE HAVE SO MANY OPPORTUNITIES
FOR SOLAR WITH MUNICIPAL
PARKING LOTS AND ROOFS AND
COMMERCIAL AND INDUSTRIAL RIGHT
AS WELL THAT I THINK WE NEED
TO REALLY PUSH THAT AND TO
HAVE THE BATTERY STORAGE IN THE
BACK UP FROM THAT LEGALLY
IT HAS RECENTLY INSTITUTED IT
-- MUNICIPAL SOLAR PROJECTS
AND THEIR POWER IN YOUR CITY
HALL WITH THEIR OWN LOCAL
GENERATION WE NEED TO HAVE
MORE OF THAT THANK YOU VERY
MUCH THANK YOU THANK YOU
NINE FORTY FIVE PLEASE GO AHEAD
MEMBERS OF THE COMMITTEE GOOD
MORNING THANK YOU FOR THE
OPPORTUNITY I'M SCOTT LIVED
IN ENERGY POLICY MANAGER WITH
ENCHANTED ROCK AND ELECTRICITY
RESILIENCE YET SERVICE COMPANY
OPERATING NATIONALLY IN
CALIFORNIA AT CITY HALL EDF
ILLUSTRATED EARLIER TODAY DIESEL
BACK UP GENERATION AND INCREASED
THIRTY FOUR PERCENT OVER THE
PAST THREE YEARS IN ACCOUNTS FOR
TWELVE POINT TWO GIGAWATTS OF
CAPACITY IN THE SOUTH COAST AND
BAY AREA AIR QUALITY DISTRICTS
ALONE ONE IN FOUR BACK OF DIESEL
GENERATION FRIDAY DECIDED WITHIN
THE EIGHTY EIGHTY TO ONE HUNDRED
PERCENTILE CALAVERAS SCREEN
COMMUNITIES THOSE COMMUNITIES
THAT CAN LEAST AFFORD FOR A
PUBLIC HEALTH PERSPECTIVE TO
HAVE THESE FACILITIES ARE IN
THEIR NEXT THE COMMITTEE'S
FOCUS TODAY ON CLEAN POWER
GRID RELIABILITY IS IMPORTANT
CALIFORNIANS ARE POLICIES IN
THE NEAR TERM TO ENSURE GRID
RELIABILITY AND RESILIENCY
YOUR FOCUS ON AND SUPPORT
THE PROLIFERATION OF CUSTOMER
FOCUS ELECTRICAL SOLUTIONS CAN
SIMULTANEOUSLY DISPATCH THE
PRODUCT GRADE AS NEEDS ARISE
THESE POLICIES THAT ARE USUALLY
SUPPORT THANK YOU THANK YOU
FOR YOUR COMMENTS ARE IMPORTANT
WHAT WILL TAKE UP ONE MORE
COMMENT APOLOGIES WE NEED TO
WRAP UP WE NEED TO HAVE A KEEP
THE ROOM WOULD THIS BE THE LAST
COMMENT THE OTHER SIDE STORY
THANK YOU FOR WAITING PLEASE
SUBMIT YOUR COMMENTS IN WRITING
TOMORROW WE'LL TAKE ONE MORE
THAN ONE YEAH ONE MORE I THANK
YOU NEXT FIFTH LINE NUMBER
FOURTEEN PLEASE GO AHEAD
I NUMBER FOURTEEN
YOUR LINE IS OPEN HI
CAN YOU HEAR ME YEAH YES
WONDERFUL THE CLEAR BROOM
I'M A PROFESSOR OF PUBLIC
HEALTH -- IN ANSWER TO
SENATOR STERN QUESTIONS
IS A P. YOU SEE ESTIMATES THAT
THERE IS TWENTY FOUR HUNDRED
MEGAWATTS OF DEMAND FLEXIBILITY
THEY CAN BE AVAILABLE WHICH
WILL MORE PER YEAR WHICH WILL
MORE THAN FILL THE EIGHTEEN
HUNDRED STAFF FURTHERMORE
PUTTING BATTERIES AND DEMAND
FLEXIBILITY ON THE DISTRIBUTION
GRID KEPT AWAY FROM THE SHOP
DUE TO FAILED TRANSMISSION LINES
I BESEECH YOU TO RECOGNIZE
FIRST BALL DIAVEL CANYON WAS
USELESS IN THE TWENTY TWENTY
OUTAGES BECAUSE CHI SO HAD TO
HOLD LARGE RESERVES THE GUARD
AGAINST THE POSSIBILITY THAT
DIABLO WOULD FAIL INVESTING
IN BATTERIES AND DEMAND
FLEXIBILITY PROVIDES FLEXIBLE
RAPIDLY RESPONSIVE MODULAR POWER
INSTEAD OF ONE LARGE INFLEXIBLE
NUCLEAR PLANTS WHICH CANNOT MEET
NUCLEAR REGULATORY COMMISSION
SYNONYME -- AVOIDANCE
ALTERS THE BEST OVERSIGHT
OF THE PEER PRESSURE COME
UP PLEASE WRAP UP THE FINAL
COMMITTEES RAPPER SURE
AVOID THE TRANSMISSION ACCESS
CHARGE WHICH PENALIZES LOCAL
GENERATION ON COMMUNITY SOLAR
SO THANKS FOR ALL YOU'RE DOING
THANK YOU THANK YOU OUT
INDIVIDUALS WHO CALLED IN
PARTICIPATING PUBLIC TESTIMONY
TODAY IF YOU'RE NOT ABLE
TESTIFIED THE THE TELECONFERENCE
SERVICE PLEASE SUBMIT YOUR
COMMENTS OR SUGGESTIONS IN
WRITING TO THE SENATE COMMITTEE
ON ENERGY UTILITIES AND
COMMUNICATIONS SUBCOMMITTEE A
CLEAN ENERGY FUTURE OR VISIT
OUR WEBSITE YOUR COMMENTS AND
SUGGESTIONS ARE IMPORTANT TO US
WE GOT MANY GOOD ONES WE WANT TO
INCLUDE YOUR POINT OF VIEW
-- INDIVIDUAL HERE AND YOUR
TESTIMONY IN THE FITIAL
HEARING RECORDS WHICH WILL BE
IF YOU WRITE AND THANK YOU WE
APPRECIATE YOUR PARTICIPATION
I THANK YOU FOR YOUR PATIENCE
AND COOPERATION TO EVERYONE WITH
INCLUDE THE AGENDA THE SENATE
COMMITTEE ON ENERGY UTILITIES
AND COMMUNICATIONS COMMITTEE
OKAY ENERGY FUTURE IS ADJOURNED