WE'VE CHOSEN SUBJECT TO THE
HEARING THE CHANGING.
ELECTRICITY LANDSCAPE THE NEED
FOR NEW REGULATORY APPROACH --
BECAUSE OF EVERYTHING THAT IS
HAPPENING --
RECENTLY WITH --
IN THE ENERGY.
INDUSTRY.
AND OF COURSE AND AND THE
ENVIRONMENT AS WELL --
THIS IS OUR THIRD HERE IN.
IN IN THREE WEEKS AND TODAY --
WE WANNA TAKE IT UP.
AN OPPORTUNITY GET MORE
INFORMATION AND AND IN THIS AREA.
THIS IS A A FOLLOW UP TO A
SIMILAR HEARING WE HAD.
ABOUT A YEAR AND A HALF AGO.
ON AUGUST OF TWENTY SEVENTEEN
THE HEAT THE HEARING FOCUSED ON
THE GROWTH OF CUT COMMUNITY
CHOICE AGGREGATORS.
AS AN ALTERNATIVE TO THE UTILITY
SURVEY IN.
THE ENERGY LOW. TO PROVIDE A
SENSE OF THE PACE OF CHANGE AT
THE TIME OF THAT HEARING --
THERE WERE EIGHT CCA'S LAUNCHED
OR PREPARING TO LAUNCH TO SERVE
THE ENERGY LOAD ACROSS OUR STATE
OR FOR ABOUT --
ONE MILLION CUSTOMERS.
A ROMAN IN THE DIRECT ACCESS
PROGRAM REMAINED.
CAPT AND THE STATE WAS IN THE
MIDST OF IMPLEMENTING SB --
THREE FIFTY RENEWABLE PORTFOLIO
STANDARD GOALS.
A YEAR AND A HALF LATER NINETEEN
CCA'S LAUNCHED SURVEY IN ABOUT
TEN MILLION CUSTOMERS.
AND DOZENS MORE ARE PREPARING TO
LAUNCH.
THE CAPTAIN SHOULD THE CAP ON
DIRECT ASK ACCESS WAS LIFTED.
EVEN A EVEN IF MODESTLY.
BUT THE LEGISLATION.
ADOPTED LAST YEAR PRETTY MUCH --
CHANGE THAT.
SB ONE HUNDRED HAS BEEN ADOPTED
IT AS A IT HAS XCELERATED --
AND OF THE RENEWABLE PORTFOLIO
STANDARD AND AND ZERO CARBON
RESOURCES GOAL BY BY --
TWENTY FORTY FIVE AND THIS IS
ALSO PLATE HAVING A ROLE IN IN.
IN AN INCREASE THE CCA'S ONE
HAND AND INCREASE OUR SANDERS
ANOTHER HOW DOES THAT.
HOW DOES THAT WORK TOGETHER
MAYBE TODAY WE CAN ANSWER SOME
OF THOSE QUESTIONS FROM?
EXPERTS IN THE FIELD.
THE GOAL OF OUR HEARING TODAY IS
IS REALLY TO PROVIDE THE
COMMITTEE MEMBERS A SENSE OF THE
CHALLENGES AND AND OPPORTUNITIES
POSTED BY THE CHANGES IN THE
ELECTRICITY LANDSCAPE.
WE ALSO HAVE THE BENEFIT OF
HEARING FROM SOME OF THE
STAKEHOLDERS ARE PROPOSING
PARTICULAR CHANGES. TO THE
REGULATORY APPROACH TODAY --
I ALSO WOULD LIKE TO PROVIDE A
CAUTION TO EVERYONE.
WE WE HAVE A HARD STOP BEFORE
ELEVEN THIS MORNING WE HAVE A
VERY IMPORTANT --
HEARING IN THE SENATE AT ELEVEN
SO WE WE'RE GONNA WE'RE GONNA
TRY -- TO
GIVE UP PEOPLE'S COMMENTS AS
TESTIMONY BEFORE ELEVEN BUT
WHATEVER HAPPENS WERE STOPPING
AT ELEVEN TODAY.
UNFORTUNATELY --
BUT WE'RE WORKING WITH THE
CONSTRAINTS OF TODAY'S CALENDAR.
AND WE HAVE A A VERY AND VICIOUS
SET OF OF MEETINGS TODAY THAT
WE'RE GONNA HOPE TO ATTEND ALL
AT THE TEND TO YOU KNOW --
AGAIN -- DUE
TO THE LIMITED TIME WE HAVE A
LITERAL NUMBER OF STAKEHOLDERS
WHO RECOGNIZE THAT THERE ARE
MANY MORE PERSPECTIVES --
MANY MORE PEOPLE WOULD LIKE TO
PROVIDE HAVE A VERY LIMITED
WINDOW OF OPPORTUNITY HERE THAT
WE INTENDED. TO SEIZE --
I HOPE --
THAT WE WE FOCUS.
ON THE PERSPECTIVE OF LOAD
SERVING ENTITIES A UTILITIES
CCA'S AND YES PLEASE AND OF
COURSE TURN.
IS HERE AS WELL --
WE WILL BE HEARING TODAY FROM --
PRESIDENT THE KID THE PC ONCE
AGAIN MICHAEL PICKER THANK YOU
FOR BEING HERE.
AND ALSO --
THE DEPUTY DIRECTOR OF
CALIFORNIA PC --
EDWARD WENT FRIEND OFFICE HERE'S
WELL THANK YOU FOR YOUR FOR YOUR
PARTICIPATION LATER WE WILL HEAR
FROM STAKEHOLDER --
STAKEHOLDERS --
IN PROVIDING THE THEIR
PERSPECTIVES.
FONG **** THE SENIOR VICE
PRESIDENT ENERGY POLICY
PROCUREMENT FOR PACIFIC GAS AND
ELECTRIC.
MATTHEW FRIEDMAN STAFF ATTORNEY
WITH THE UTILITY REFORM NETWORK.
DON WEIS PRESIDENT OF THE BOARD
DIRECTORS HE'LL CLEAN ENERGY
CALIFORNIA CHOICE.
ASSOCIATION KENDALL HOME VICE
PRESIDENT AND YOUR SUPPLY CENTER
GAS AND ELECTRIC RUN PERRY.
PRESIDENT AND CEO OF COMMERCIAL
ENERGY AND CALL IN QUESTION A
VICE PRESIDENT OF ENERGY
PROCUREMENT MANAGEMENT --
THIS PRESIDENT.
THANKS FOR BEING HERE.
THANK YOU MISTER CHAIR --
THREE YEARS AGO WHEN I CAME TO
SPEAK BEFORE LOW LEGISLATIVE
BODIES LIKE THIS THE COP TOPIC
OF CONVERSATION WAS WHAT WE
CALLED THE DEATH SPIRAL OF THE
ELECTRIC UTILITY DUE TO NET
ENERGY METER --
SOLAR ROOF TOP.
AT THIS POINT THAT MARKET IS
FLATTENING AND IT'S DEFINITELY
NOT A CONSIDERED TO BE A RISK TO
THE TO THE INCUMBENT --
ELECTRIC UTILITIES.
BUT AT THE SAME TIME CALIFORNIA
ELECTRICITY USERS CAN GET THEIR
POWER FROM SOURCES OTHER THAN
THOSE TRADITIONAL --
I USE.
INVESTOR IN UTILITIES THEY CAN
THEY THERE'S TWO DIFFERENT
PATTERNS BY WHICH PEOPLE CAN
PROCURE ONE IS BY A RANGE OF
TECHNOLOGIES THAT THE STATE
HELPS TO FINANCE SO THAT PEOPLE
HAVE A CHIU RANGE CHOICES AS TO
HOW THEY GET THEIR ELECTRICITY
FREQUENTLY ON THEIR OWN PROPERTY
BEHIND THE METER.
AND THEN THEIR BUSINESS MODELS
FOR PROVIDERS WHO CAN ALSO
COMPETE FOR SELLING ELECTRICITY.
TO THOSE CUSTOMERS TERMS OF
TECHNOLOGIES ENERGY EFFICIENCY
IS ALWAYS BEEN THE MOST
IMPORTANT PROBABLY FOR QUICKLY
FOLLOWED BY A COMBINED HEAT AND
POWER WHICH IS A AN INDUSTRIAL
EFFICIENCY PROCESS TO CAPTURE HE
TURNED INTO STEAM TO MAKE
COLLECTOR CITY THIS USED ON
CIDER SOLD BACK TO THE
ELECTRICITY UNDER.
CONTRACT.
ROOFTOP SOLAR YOU MENTIONED THAT
THAT WAS HELPED BY A PARTICULAR
FINANCING BUSINESS MODEL CALLED
NET ENERGY METERING.
I REQUIRES --
CUSTOMERS TO HAVE BOTH A GOOD
ROOF AND A GOOD FIGHT GO SCORE I
THINK IT'S GETTING HARDER AND
HARDER AND HARDER TO FIND PEOPLE
WHO HAVE BOTH THE YOU ROOF
THAT'S READY TO STAND UP TO
TWENTY YEARS OF SOLAR PANELS.
WITHOUT BEING REPLACED BECAUSE I
MEAN YOU HAVE FICUS SCORES.
BUT THERE'S ALSO BATTERY STORAGE
CELLAR PLUS BATTERY AND FIRST A
LOT OF SMALL INDUSTRIAL AND AND
COMPUTER COMPANIES NATURAL GAS
FUEL CELLS WHICH TO USE FOR A
LIABILITY.
THE BUSINESS MODELS INCLUDE
DIRECT ACCESS WHICH GOES BACK TO
THE DE REGULATION 220-002-0001.
THE NEW COMPETITIVE COMMUNITY
AGGREGATORS COR AND NOW
CORPORATE PROCUREMENT WE SING
Là MANY LARGE COMPANIES WHO
WILL BUY A GIGAWATT OF WIND IN
ANOTHER STATE AND THEN PAID A
WE'LL THEIR ELECTRICITY TO THEM
OVER THE GRAD SO THERE'S A RANGE
OF DIFFERENT PATTERNS ERODING.
THIS CENTRAL PROCUREMENT DO WE
USE TO SEE UP 2405% OF CUSTOMER
DEMAND LOAD.
IS DEPARTING FROM IT IS PROBABLY
BY THE END OF THIS YEAR.
AS OF SEPTEMBER TWO THOUSAND
EIGHTEEN THERE WERE THIRTY SEVEN
LOAD SERVING ENTITIES ALL THOSE
DIFFERENT PROVIDERS OF
ELECTRICITY UNDER PSG
JURISDICTION SERVING CUSTOMERS.
COLLUDING THE THREE BIG I USED
TO SMALLER WHEN. NINETEEN CLEAN
COMPETITIVE COMMUNITY
AGGREGATORS AND FOURTEEN
ELECTRICITY SERVICE PROVIDERS
THOSE DIRECT ACCESS PROVIDERS TO
GO BACK 220-002-0001 ENERGY
CRISIS.
WHAT WE'RE SEEING IS NOT A DE
REGULATION THAT WAS PLANNED?
BY THE LEGISLATURE AND HAD
CONSISTENCY BUT IT'S A DE
REGULATION FROM THE GROUND UP AS
A RESULT OF MANY CHANGES AND AND
DECISIONS AND LEGISLATIVE
DIRECTIONS OF THE LAST TWENTY
YEARS.
MY FEAR IS THAT UNLESS WE PUT
SOME --
PROTECTIONS IN PLACE.
OR COME UP WITH THE CONSISTENT
MODEL THEN WE COULD DRIFT BACK
INTO SOME OF THE SAME KINDS OF
OF PROBLEMS THAT WE SAW.
THOUSAND ONE WITH THAT DE
REGULATION THAT WAS EASY FOR THE
LEGISLATURE REVERSE THIS WILL BE
MUCH MORE DIFFICULT BECAUSE
INVESTMENT MADE BY CUSTOMERS AND
A WHOLE RANGE OF OF OTHER
PATTERNS THAT ARE DEVELOPED.
WHAT WE ARE SEEING IS FRAGMENTED
DECISION MAKING WERE MANY
INDIVIDUAL DECISIONS TONY UP TO
ADD UP TO THE NEEDS OF THE WHOLE --
WE'RE SEEING --
POORLY COORDINATED PROCUREMENT.
THAT DOESN'T --
MAKE SURE THE SPECIFIC RESOURCES
ARE IN PLACE TO PROVIDE
RELIABILITY THE GRAD.
AND THERE'S NO PLAN FOR THE
POSSIBILITY OF FAILURE OF ANY
THESE NEW PLAYERS.
IN THE MARKET PLACE AS A RESULT
OF TURBULENCE AND IN THE LARGER
ELECTRICITY MARKETS AND OTHER
KINDS OF ON TOWARD EVENTS.
SO I A QUICKLY OUTLINED SOME OF
WHAT WE SAW IS WE STUDIED OTHER
STATES.
AS WE STARTED TO SEE THIS
PATTERN EMERGING NOT JUST IN ONE
CASE BUT ALL THESE DIFFERENT
BUSINESS MODELS TECHNOLOGIES
TOGETHER.
WE STARTED A STUDY WHICH WE CALL
CALIFORNIA CUSTOMER CHOICE WE
TRY TO BE AGNOSTIC AS TO THE
TECHNOLOGY OR THE BUSINESS MODEL.
BUT WE ARE SEEING SOME PATTERNS
THE THAT WE THINK DESERVE
ATTENTION --
AS PART OF THEIR PROJECT AGAIN
WE LOOKED AT FOR OTHER
JURISDICTIONS TO EVALUATE THEIR
DESIGN AND IMPLEMENTATION OF OR
OF A COMPREHENSIVE REGULATORY
FRAMEWORK THAT HAVE ENABLED THEM
TO HAVE A HIGH PENETRATION OF
CUSTOMER CHOICE.
IN ELECTRICITY SERVICE AND
THAT'S JUST ELECTRICITY SERVICE
IT DOES NOT --
AND GENERALLY INVOLVE THE IN THE
A THEY DID NATURAL MONOPOLY OF
WIRES AND POLES.
YOU DO NOT HAVE CUSTOMERS YET
OUT THERE WANTING TO OWN THEIR
OLD WOODEN POLE.
OR SEGMENT OF WIRE THAN CHARGING
THEIR NEIGHBORS TO USE.
THAT'S STILL A MONOPOLY.
NONE OF THESE ARE EXACTLY
IDENTICAL TO CALIFORNIA WE HAVE
MUCH MORE PATTERNS.
AND PROTECTIONS IN TERMS OF
MAKING SURE THAT ELECTRICITY IS
AFFORDABLE TO ALL CUSTOMERS.
WE ARE REALLY FOR OFF MUCH
FURTHER DOWN THE PATHWAY OF D.
CARBONIZATION OF THE ELECTRIC
INDUSTRY THAN OTHER STATES.
AND WE HAVE BE BECAUSE OF
LEGISLATIVE DIRECTION VERY FIRM
AND FAST RULES ABOUT RELIABILITY
CORD TO CALL RESOURCE ADEQUACY.
SO IN NEW YORK.
CUSTOMERS CAN ENTER INTO.
AGREEMENTS WITH WITH ENERGY S.
GOES.
THEN THEY GET THEIR ENERGY FROM
THOSE COMPANIES SERVICE THERE
WERE SEVENTY OF THEM AS OF TWO
THOUSAND SIXTEEN BUT UNLIKE
CALIFORNIA.
THERE'S A SINGLE STATE AGENCY
THAT DOES ALL THE PROCUREMENT
NICER TO KNOW NEW YORK STATE --
ENERGY RESOURCES AND DEVELOPMENT
AGENCY.
AND THEY DO THEY DO PARTICULARLY
THE CLEAN ENERGY PROCUREMENT.
THE UTILITIES ONLY RUN THE WIRES
AND POLES AS A MATTER OF FACT
THEY SEPARATE THE BULK
TRANSMISSION FROM THE LOW
VOLTAGE DISTRIBUTION SYSTEM.
MORE RECENTLY THEY'VE TRIED TO
STIMULATE INVESTMENT IN
TECHNOLOGIES THAT WOULD COMPETE
WITH SOME OF THOSE DISTRIBUTION
SERVICES.
SIMILAR TO WHAT WE'RE DOING
HEARING CALIFORNIA --
HOWEVER THEY'RE THEY'RE STILL
TRAILING I THINK SOME OF THE
SUCCESSES WE'VE SEEN.
SO THE CUSTOMER SERVICE THEIR
WORKS VERY WELL FOR LARGE
INDUSTRIAL AND COMMERCIAL
CUSTOMERS THE RESIDENTIAL AND
SMALL CUSTOMERS.
IN KONA --
INCLUDING LOW INCOME CUSTOMERS
ARE ARE OVERPAYING ACCORDING TO
WHAT WE FOUND.
ILLINOIS' ILLINOIS' HAS A
SLIGHTLY DIFFERENT MODEL THEY
HAVE.
A VERY LARGE INCUMBENT.
INVESTOR OWNED UTILITIES BUT
THEY'VE ALLOWED COMMUNITIES TO
CREATE WHAT THEY CALL A
MUNICIPAL ENERGY AGGREGATORS
SOMEWHAT SIMILAR TO OUR OUR
CLEAN A COMPETITIVE COMMUNITY
AGGREGATORS.
EXCEPT YOU HAVE TO STAY WITH
THAT HERE.
LOCAL GOVERNMENT ESTABLISHES THE
THE MUNICIPAL --
ENERGY AGGREGATOR AND YOU ARE
STUCK WITH IT FOR A YEAR --
THERE'S A RATE THE YOU HAVE TO
BE THAT'S ACTUALLY --
BASED ON THE THE THE LECTURE
CITY RATES SET BY ALL THE OTHER
YOU.
REGULATED UTILITIES.
AND THAT WAY THE RETAIL
PROVIDERS KNOW WHO THEY HAVE TO
TO TO BE --
FIXED --
ROUGHLY ONE THIRD TO HALF A
CUSTOMERS WERE SERVED BY A
MUNICIPAL ENERGY AGGREGATORS.
BUT THEY FOUND IT WAS HARD TO
ACTUALLY BEAT THE PRICE OF THE
INCUMBENT.
INVESTOR OWNED UTILITIES SO
PEOPLE ARE NOW STARTING TO FOLD
UP THOSE MUNICIPAL ENERGY
AGGREGATORS AND GO BACK TO THE
TO THE TO THE DOMINANT UTILITIES.
THAT STATE ALSO HAS A SEPARATE
CENTRAL PROCUREMENT AGENCY THE
ILLINOIS' POWER AGENCY WHICH
COURTNEY'S PLANNING AND
PROCUREMENT FOR THE STATE'S
ELECTRICITY MARKET.
SO OF THOSE CENTRALIZED
PROCUREMENT --
PLANNING PROVIDES CUSTOMERS
ASSURANCE FOR RELIABILITY EVEN
WITH RETAIL CHOICE.
BUT IT ALSO SETS THE PRICE.
AND THAT'S WHAT EVERYBODY HAS TO
BE.
THEY'RE NOT FOCUSED ON DE
CARBONIZATION.
TEXAS TEXAS IS THE PLACE WHERE
THEY JUST RIP THE BANDAID OFF
COMPETITION RETAIL COMPETITION
IS THE KEY TO MARKET --
STRUCTURE.
THEIR RETAIL ENERGY PROVIDERS.
AND THEY ALSO HAVE COMMUNITY
CHOICE AGGREGATORS IS JUST
STARTING UP THERE.
IF YOU DON'T CHOOSE ONE OF THOSE
RETAIL ENERGY PROVIDERS YOU'RE
NOT IN ONE OF THE THE NEWLY
FORMING CCA'S.
THEM AND THE STATE.
PUBLIC UTILITIES COMMISSION OF
TEXAS ASSIGN YOU. TO A RETAIL
ENERGY PROVIDER --
THERE THEY DON'T ACTUALLY.
DIRECTLY CONTRACT WITH
GENERATORS ARE PARTICIPATING
WHOLE SO MARKETS THEY HAVE WHOLE
GROUPS OF CUSTOMERS IN THE END
THEY NEGOTIATE A A RATE.
WITH THE RETAIL PROVIDERS THAT'S
HOW THEY'RE CCA'S WORKED THE
RETAIL ENERGY PROVIDERS ON THE
HAND.
ARE JUST STRAIGHT OUT
COMPETITIVE BASED ONLY ON PRICE
THEY DON'T HAVE ANY.
ANY ANY REAL GOALS TOWARDS
RENEWABLES TO SPEAK OF THEY'RE
VERY CHEAP RATES.
BUT THEY DON'T HAVE ANY PUBLIC
GOODS CHARGE LIKE OUR LIKE --
CONSUMER ACCESS --
TO TO CHEAP ELECTRICITY OR AT
THE ENERGY SAVINGS ASSISTANCE
PROGRAMS.
OR A MEDICAL BASS LINE.
THERE YOU'RE JUST DEPENDENT ON
THE MARKET.
THEY DON'T HAVE A ENERGY
EFFICIENCY --
SUBSIDIZED OR AIDED BY THE
UTILITIES --
SO THEY HAVE HIGH USAGE WHAT
WHAT THEY DO WHEN THEY HIT THE
SPOT MARKETS WIN.
THE RETAIL PROVIDERS DON'T HAVE
ENOUGH ELECTRICITY CURRENTLY
UNDER CONTRACT.
IS THOSE PRICES GO SKY HIGH.
SO AS A RESULT.
MOST CUSTOMERS ARE KIND OF BONTA
UNBUNDLED AND DISAGGREGATED
AMONGST ALL THESE OLD ENERGY
PROVIDERS BUT THEY GET THEIR
THEIR WIRES AND POLES SERVICES
FROM FROM THESE TRANSMISSION AND
DISTRIBUTION COMPANIES.
SO IF A COMPANY OF ONE OF THOSE
RETAIL PROVIDERS FAILS SOMETIMES
HAPPEN THE IS GET REASSIGNED TO
ANOTHER --
RETAIL ENERGY PROVIDER --
THIS IS SOMEWHAT SIMILAR TO
GREAT BRITAIN WHERE CUSTOMERS
REALLY DID NOT GO OUT AND LOOK
VERY MUCH.
AT WHAT THE DIFFERENT PRICES FOR
SO BECAUSE OF THIS BOTH NEW YORK.
WHICH HAD THE SAME PROBLEM IN
TEXAS ARE CREATING WEBSITES TO
COMPARE PRICES TO MAKE IT EASIER.
FOR PEOPLE TO LOOK AROUND SEE
WHO CAN GIVEN THE CHEAPEST
PRICES.
AGAIN RELIABILITY IS MAINTAINED
BY WHEN THE PRICES GO HIGH AND
AND LET THE MARKET DECIDE --
GREAT BRITAIN IS PROBABLY THE
MOST COMPLICATED --
CUSTOMERS CAN CHOOSE THEIR
ELECTORATE SO I COULD SERVICE
PROVIDER BUT PROBABLY 80% OF ALL
CUSTOMERS IN ENGLAND GO WITH THE
TOP SIX PROVIDERS WHO ARE THE
OLD DOMINANT ELECTRICITY
COMPANIES.
OUR CUSTOMERS. TO USE.
PRICE COMPARISON WEBSITES --
DAME THE STATE WOULD LAST I
HEARD THEY ARE STARTING TO SEE
COMMUNITY AGGREGATOR STARTING TO
FORM A LITTLE BIT MORE FOCUSED
ON DE CARBONIZATION.
THERE'S NO PREDETERMINED
PROVIDER OF LAST RESORT QUIRK IN
CASE OF FAILURE BECAUSE THERE'S
SO THERE'S SEE AND AND IN THEIR
MINDS A WIDE RANGE OF CHOICES.
BUT IN THE EVENT THAT THERE IS A
NEED TO AND THE THE NATIONAL
REGULATOR STEPS IN OFF JIM WHICH
IS -- WHICH
IS GOT A COMPLICATED NAME
ANYMORE REPEAT --
AN ACE DAY THEY BECOME THE
SUPPLIER FLAT PASSED RESORT.
SO -- AGAIN
CUSTOMERS DID NOT EXERCISE THEIR
RIGHT TO CHOOSE BASED ON PRICE
OR ANY OTHER PATTERN THAT WE
COULD SEE IT'S JUST THAT PEOPLE
TENDED TO STAY WITH WHAT THEY
HAVE.
OUR CHALLENGES ARE REALLY
DIFFERENT --
WE'RE REALLY FOCUSED ON GREEN
POWER NOT JUST RE NOBLES BUT
ALSO GHG REDUCTION RELIABILITY
AND COST.
WHEREAS MOST OF THE STATE'S F
ONLY FOCUS TO ON TO THOSE AXES.
BUT WE DID SEE SOME COMMON
THEMES.
CUSTOMER ENGAGEMENT AND PRICE
TRANSPARENCY ARE REALLY CRITICAL --
REGIONALIZED GRID.
BEING ABLE TO PROCURE OUTSIDE OF
THE NARROWLY POLITICALLY
JURISDICTION ONLY DEFINED MARKET
CAN BE VERY IMPORTANT.
CENTRALIZED STATE PROCUREMENT
BECOMES VERY IMPORTANT TO
REACHING GOALS AND TO ACTUALLY
ENSURING RELIABILITY THAT THE
INDIVIDUAL CHOICES SOMETIMES
DON'T GO TOGETHER WELL TO MAKE
UP THE WHOLE.
A SUCCESSFUL OUR ENERGY MARKETS
HAVE A PROVIDER OF LAST RESORT
IN CASE THERE'S A FAILURE.
SO CALIFORNIA DOESN'T HAVE THIS
THE INVESTOR OWNED UTILITIES
HAVE HAVE PLAYED THEIR ROLE BY
DEFAULT.
INCLUDING BECAUSE THEY HAVE AN
OBLIGATION TO SERVE UNDER THE
LAW.
AND SERVE A CUSTOMER SHOWS UP
THEY HAVE TO SERVE THEM.
BUT WE SAW DURING THE LAST
ENERGY CRISIS WHEN THERE IS A
FAILURE OF A ELECTRICITY SERVICE
SERVICE PROVIDER TWO HUNDRED
FIFTY THOUSAND CUSTOMERS GOT
DUMPED ON TO ONE UTILITY.
THE CUT THE THE PUBLIC TRICITY
SERVICE PROVIDER FAILED BECAUSE
THEY WERE BUYING THEIR
ELECTRICITY AND THE WHOLESALE
MARKET THERE WAS.
HARD TO WEEKS HOT WEATHER
EVERYBODY IN THE WEST WAS USING
ALL THE GENERATION THEY GET
ACCESS TO THIS COMPANY WAS LATE
TO THE GAME.
WAS PAYING VERY HIGH PRICES RAN
OUT OF CASH.
COULDN'T PAY FOR MORE
ELECTRICITY.
THEIR CUSTOMERS THAN GOT DUMPED
ONTO THE PREVIOUS --
UTILITY AND THEY STARTED TO
HEMORRHAGE CASH.
AND SO THAT'S NOT A GOOD PATTERN
YOU WANT TO HAVE SOME PLAN YOU
WENT AHEAD CHEN INSURANCE PLAN
THAT'S THE PROVIDER OF LAST
RESORT.
SO WHAT WERE ALSO SEEN AS WE THE
STRONG POSSIBILITY WE COULD FALL
BEHIND IN OUR IN REACHING OUR
GREEN GOALS THE SO THE STATE'S
RENEWABLE PORTFOLIO STANDARD
REQUIRES THAT ALL I WHO USE.
A COMPETITIVE COMMUNITY
AGGREGATORS AND ELECTRICITY
SERVICE PROVIDERS MEET CERTAIN
TARGETS.
SB THREE FIFTY REQUIRES THAT ALL
LOAD SERVING ENTITIES WHICH
INCLUDES ALL THOSE HAVE ONLY
SIXTY FIVE OF THEIR PERCENT OF
THEIR RENEWABLE PORTFOLIO
STANDARD ELIGIBLE KERMIT FROM
CONTRACTS.
THAT ARE TEN YEARS OR LONGER BY.
TWENTY TWENTY ONE SHARP REPORT
TO THE LEGISLATURE IN OCTOBER
TWO THOUSAND EIGHTEEN ON THE
RENEWABLE FOR FOR THE STANDARD
SAID.
DE IDENTIFIED SOME CLEAR
CHALLENGES ADDITIVE COMMUNITY
AGGREGATORS THE CCAC AND
ELECTRICITY SERVICE PROVIDERS
AND IN MEETING THEIR OUR PS
REQUIREMENTS.
SO CAL CCA INDICATES THAT THAT
TWO GIGAWATTS OF RENEWABLE
PROJECTS ARE UNDER DEVELOPMENT.
OR ARE THE BILL TO SERVE FONG.
THEIR CUSTOMERS OF THE CCA'S BY.
TWENTY TWENTY THAT'S TWO
GIGAWATTS THAT'S ABOUT THE FIFTY
SIX PROJECTS ROMA TOTALING --
TWENTY ONE HUNDRED MEGAWATTS.
NOT ALL OF PROJECT YOUR BILL IN
MY EXPERIENCE OF HAVING BUILT A
LOT OF LARGE RENEWABLE ENERGY
PROJECTS IS THAT NOT ALL
PROJECTS THE CARD GET CONTRACTS
YOU THINK YOU CAN DO TO IMPROVE
THE OVERALL SUCCESS PATTERN FOR
PROJECTS BUT THERE'S NO
GUARANTEES IN IN THE MARKET.
EVEN IF THE THOSE PROJECTS ARE
ALL BUILT THE CCASTILL HAVE A
SHORTFALL FOR MEETING THEIR REAP
ARE THERE AND THEY'RE IN A GREAT
RESOURCE PORTFOLIO GOALS.
FOR ENERGY.
PROBABLY THEY'LL HAVE TO TRIPLE
THEIR CURRENT PROCUREMENT PLANS
BY TWENTY TWENTY TWO AND IT SIX
TIMES AS MUCH BY.
TWENTY THIRTY THE MEETING IN
SIZE OF THE EXISTING PROJECTS
THAT THE LIST.
IS ABOUT ONE POINT SIDE GET FIVE
GIGAWATTS TO MEET THAT TWENTY
THIRTY GOAL THAT'S ROUGHLY FIVE
THOUSAND SEVEN HUNDRED PROJECTS
[inaudible]
SO.
THAT SEEMS TO ME TO BE A LITTLE
PROBLEMATIC I'M NOT JUST I'M
USING THAT BECAUSE WE HAD BETTER
INFORMATION BUT THE ELECTRICITY
SERVE FOR SERVICE PROVIDERS ALSO
PROBABLY ARE GOING TO HAVE
SIMILAR KINDS OF PROBLEMS. ONE
OF THE DIFFERENCES THOUGH FOR
THE FOR THE COMPETITIVE
COMMUNITY AGGREGATORS IS THAT
HAVE A HARD TIME.
GETTING FINANCING BECAUSE ALL
THEY HAVE THIS CUSTOMERS THEY
DON'T HAVE ASSETS THEY DON'T
HAVE PROPERTY THAT THE PEOPLE
CAN LEAN ON IN CASE THERE'S A
FAILURE TO PAY.
SO FOR A SIMPLE SOLUTION WOULD
BE FOR THE LOCAL GOVERNMENTS
THAT CREATE THE CCA'S TO PUT
THEIR BALANCE SHEETS ON THE LINE
THAT WOULD ACTUALLY CREATES
UNCERTAINTY AND FINANCING.
HOWEVER MOST LOCAL GOVERNMENTS
ARE ARE A LITTLE LEERY OF
GETTING INTO THE VOLATILE AND
SOMETIMES HARSH ELECTRIC MARKETS.
SO WE'RE ALREADY SEEING SOME
SHIPS WITH THE RELIABILITY IN
THE FOR MORE WILL BE CALL
RESOURCE ADEQUACY OF WAIVERS
AFTER THE THE FAILURE
220-002-0001 THE LEGISLATURE --
REQUIRED ALL LOAD SERVING
ENTITIES TO PROCURE ALL THE
ELECTRICITY THEY WOULD NEED FOR
STE FORESEEABLE PEAK
CIRCUMSTANCES.
AND TO BE ABLE TO DEMONSTRATE
THAT TO US THE THE LARGER
PICTURE IS THE IT UNTIL LAST
YEAR WE MAYBE HAD TWO REQUESTS
FOR WAIVERS FROM COMPLIANCE.
OVER THE ENTIRE PROGRAM.
THE YEAR BEFORE LAST WE HAVE
ELEVEN FROM ELECTRICITY SERVICE
PROVIDERS AND AND CCA'S SOME OF
THE CCA'S ARE SERVED BY THIS
ELECTRICITY SERVICE PROVIDERS
FOR SHORT TERM CONTRACTS AND
WITH THOSE WAIVERS FOR
COMPLIANCE HAVE ANY ANYTHING TO
DO WITH.
PRESERVING RACHEL WAS A MAJOR
ISSUE THE MAJOR ISSUE IS THAT
MANY OF THESE SMALLER ENTITIES
ARE FOCUSED IN PARTICULAR AREAS
WHERE THE GRID TOPOLOGY DOESN'T
ALLOW ALL THE ELECTRICITY THAT
THEY NEED TO FLOW IN FROM
OUTSIDE ON THOSE PEAK DAYS
SO YOU HAVE TO HAVESOME
GENERATION WITHIN THOSE LOAD
POCKETS.
GIVEN THAT WITHIN THOSE LOAD
PARKS YOU MAY HAVE TO SEE CA
SOME MEDIA X. ELECTRICITY
SERVICE PROVIDER CUSTOMERS AND
SOME I OWE YOU CUSTOMERS.
THERE'S COMPETITION TO GET
ACCESS TO THAT BACK UP
GENERATION WHICH IS DWINDLING
BECAUSE THEY ARE ONLY GETTING
CONTRACTS OR MAYBE TWO HUNDRED
HOURS A YEAR.
AND IT GETS HARD FOR PEOPLE TO
BE ABLE TO TO FIT WITHIN THE
HARSH AND SOMETIMES VOLATILE
SITUATIONS.
OF THE ELECTRICITY MARKET
PARTICULARLY IN THOSE
CONSTRAINTS SPACES.
BUT IT REPRESENTS IN MY MIND AT
LEAST A RISK TO THE THE THE
LEGISLATIVE FRAMEWORK THAT THE
LEGISLATURE SET TO GUARANTEE
RELIABILITY.
AND WE NEED TO SECURE THAT WE'VE
LOOKED IN OUR RESOURCE ADEQUACY
PROCEEDING TO MAYBE CREATE WHAT
WE WHAT WE HAVE DONE IS IS SAID
NO MORE ONE YEAR CONTRACT BRING
US THREE YEAR CONTRACT.
SO THAT MAY ACTUALLY ENTICE SOME
PROVIDERS INTO SIGNING WITH SOME
OF THE SMALLER ENTITIES.
BECAUSE THERE'S A BETTER FUTURE
FOR THEIR FOR THEIR THEIR
GENERATION.
WITHIN THOSE LOADS CONSTRAINED
AREAS.
BUT WE ALSO WORRY THAT MAYBE
WHAT WE NEED IS SOME KIND OF
CENTRAL PROCUREMENT AT THE STATE
LEVEL THAT CAN CURE ALL OF THESE
PROBLEMS AND NOT LEAVE SOME
CUSTOMER AT RISK OF RELIABILITY
THAT THAT'S THAT'S OUR FEAR.
SO WE ARE CONTINUING TO LOOK AT
WHAT THAT WITHIN THE RESOURCE
ADEQUACY PROCEEDING [inaudible]
SO.
AGAIN YOU KNOW WE ARE CAUGHT
BETWEEN.
THESE MORE.
CLEAR MODELS WHERE ALL CUSTOMERS
HAVE RETAIL PROVIDERS FOR
ELECTRICITY THEN THERE'S
TRANSMISSION AND DISTRIBUTION.
ON THE SIDE SOMETIMES THOSE
TRANSMISSION AND DISTRIBUTION
OPERATORS CAN COMPETE.
WITHIN THESE OTHER MARKETS TO
PROVIDE TECHNOLOGY OR TO PROVIDE
ELECTRICITY ON A CHOICE BASIS
CUSTOMERS CAN PICK AND CHOOSE.
WE'RE NOT AT THE FAR END THAT WE
STARTED OUT HOWEVER EITHER WHICH
IS A VERTICALLY INTEGRATED
UTILITY WHERE THE UTILITIES ON
THE ELECTRICITY THEY OWN THE
WIRES THEY OWN EVERYTHING ELSE.
AND DO YOU ALL DON'T HAVE ANY
CHOICE AT ALL.
WE'RE IN BETWEEN.
AND THAT THAT PROBABLY REQUIRES
SOME PROTECTIONS AND SO.
WE TRIED TO IDENTIFY WHAT WE
THOUGHT WERE GAPS IN OUR SECOND
REPORT FROM OUR CHOICE PROJECT
IT'S HERE BEFORE BE FOR YOU
TODAY WE RELEASED IT AND OCTOBER.
ALREADY WE'RE SEEING SOME.
BILLS THAT MATCH SOME OF THE THE
SOLUTIONS THAT WE SEE THAT WE
IDENTIFIED HERE.
SO FOR EXAMPLE FOR THE THE THE
YOU DO UTILITY DIVERSITY
CONTRACTING IS MORE MORE
CUSTOMERS DEPART FROM THE
ELECTRICITY COMPANY UTILITIES
FROM FOR THEIR THEIR OUR
ELECTRICITY.%
THE MONEY THAT SPENT ELSEWHERE
DOESN'T GO INTO THAT DIVERSITY
CONTRACTING PROCESS WHICH IS NOW
A TEN POINT FIVE BILLION DOLLARS
THAT'S A HUGE INVESTMENT IN TO
FRAGILE COMMUNITIES AROUND THE
STATE NOT JUST FOR JOBS.
BUT ALSO TO BUILD THE BUSINESS
INFRASTRUCTURE HELPS TO MAKE
THOSE THRIVING COMMUNITIES
AMERICA MANY LEVELS.
SENATOR BRADFORD IS ACTUALLY --
PUT FORWARD SOME LANGUAGE ON
THAT.
ONE WE'RE STARTING TO SEE --
STE RESORT BILL FROM SENATOR
HERTZBERG THE AND I'M.
I WILL LEAVE IT TO HIM TO
CONTINUE TO CLARIFY HIS THINKING
ON THAT HIS STAFF HAS BEEN
MEETING WITH STAKEHOLDERS TO
ACTUALLY CREATE THAT INSURANCE
HEDGE.
AGAINST FAILURES OF ANY THESE
DIVERSE COMPANIES.
HE ALSO HAS PROPOSED EARLIER
EXPANDING THE DIRECT ACCESS FOR
ALL COMMERCIAL INDUSTRIAL
CUSTOMERS HIS INITIAL BILL
ACTUALLY WOULD HAVE LIFTED THE
CAP LAST YEAR.
WE WORKED WITH THEM AND HE WE
HAVE A MORE FACED PROCESS THAT
WERE WORKING UNDER TO ACTUALLY
EXPAND IT TO A LARGER NUMBER
THIS YEAR.
BUT HE WANTS A PLAN TO EXPAND
DIRECT ACCESS COMPLETELY BY
TWENTY TWENTY SO WE WILL PROVIDE
THAT TO HIM --
I THINK THERE ARE OTHER ISSUES
THAT WE NEED TO ADDRESS THAT OR
CONTENT TO CONFIRM THAT ARE
CONTAINED HERE I DO WE'RE STILL
TRYING TO REMAIN SOMEWHAT
AGNOSTIC.
PUT TO ENSURE THAT CUSTOMERS
HEART OVER PAYING ON BEHALF OF
CUSTOMERS WHO DEPARTED.
SO YOU DON'T HAVE THAT ON FARE
SUBSIDY.
THAT WE TRY TO KEEP ELECTRICITY
RATES AFFORDABLE FOR EVERYBODY
THAT WE KEEP IT RELIABLE AND
THAT THERE ARE WAYS THAT WE
CONTINUE TO MEET OUR CLEAN
ENERGY GOALS AT THE SAME TIME.
THAT WE FOLLOW OUT THE
LEGISLATURE'S DIRECTION FOR MANY
DIFFERENT TECHNOLOGIES MANY
DIFFERENT BUSINESS MODELS.
BUT I WILL I WILL JUST SAY THAT
GENERALLY THE PLACES THAT WE
HAVE LOOKED AT THAT HAVE BEEN
MOST SUCCESSFUL HAVE A CLEAR
MODEL AND THEY TEND TO DOCTOR
LEAN TOWARDS.
A COMPLETE FREEDOM OF CHOICE AS
OPPOSED TO THE KINDS OF MIX THAT
WE HAVE HERE IN CALIFORNIA.
SO I THANK YOU I'D BE HAPPY TO
TAKE QUESTIONS EDU HAVING THAT.
SORRY THAT'S A LOT TO COVER.
THANK YOU MISTER CHAIRMAN AND
THANK YOU FOR BEING HERE AGAIN --
THIS WEEK --
FREE SHEET IF IF I'M AGAIN I'M
HAVE TO BUY NEW BUSINESSES
PLEASE DON'T MAKE ME.
WE'VE I WILL THAT'S FOR SURE.
YOU KNOW THE COMMITTEE
BACKGROUND PAPER AND YOU
MENTIONED IT TALKED A LITTLE BIT
ABOUT CCA'S AND IT HIGHLIGHTED
AND AS WE ALL KNOW THERE'S
THERE'S NO RATE APPROVAL PROCESS
WITHIN OVER APPROVAL AUTHORITY
WITHIN THE CPC --
WELL THERE IS FOR I USE --
DO YOU YOU KNOW GIVEN THE SHE
SHOULD COME UNDER THE OF
REGULATORY AUTHORITY THE CPUC.
WELL SO THERE'S A WIDESPREAD
BELIEF AMONG CCA ARM OPERATORS
THAT THEY HOME WILL ALWAYS BE
CHEAPER BECAUSE THEY DON'T HAVE
TO PAY PROPERTY TAX AND THEY
DON'T HAVE TO PAY SHAREHOLDERS.
THAT'S NOT ALWAYS TRUE SIMPLY
BECAUSE WHAT THEY ARE DOING IS
TO IS PRIMARILY PROVIDING.
ELECTRICITY SERVICE THOSE OTHER
COSTS STILL GO TO RATE PAYERS BY
THE BILL IF YOU LOOK AT YOUR
ELECTRIC BILL.
USUALLY IT'S STILL UNDER THE
NAME OF YOUR UTILITY BECAUSE
THEY PROVIDE BILLING SERVICE TO
ALL THE CCA'S.
THERE'S AN ELECTRICITY CHARGE IN
SOMETIMES IT WILL NAME THE CCA
IF THEY CARE TO BE NAMED AND
THEN THE REST OF THE BILL IS
TRANSMISSION DISTRIBUTION NON BY
PASSABLE CHARGES AND THE PUBLIC
GOODS CHARGES.
SO IT'S NOT CLEAR TO ME THAT
THERE'S ENOUGH LEFT.
ON THOSE THIN MARGINS OF
RESELLING ELECTRICITY.
FROM THIRD PARTY CONTRACT THAT
THERE'S WHO CAN REALLY BE THAT
KIND OF COMPETITION THAT PEOPLE
TALK ABOUT.
MY FEARS I ACTUALLY HAVE MORE TO
DO WITH HOW DO YOU MAKE.
WHAT'S LEFT OF THOSE OLD
UTILITIES WHO STILL HAVE TO RUN
THE POLES AND WIRES STILL HAVE
TO PROVIDE THE SERVICES UNDER
THE PUBLIC GOODS CHARGE STILL
HAVE TO FIND THE SMALL GENERATOR
INCENTIVE PROGRAM FOR BATTERY
STORAGE.
STILL HAVE TO TO FUND ON ENERGY
METERING HOW WILL THEY ACTUALLY
BE STABLE ENOUGH TO PROVIDE
THOSE KEY SERVICES THAT THE
LEGISLATURE HAS HAS TASKED THEM
WITH.
AND THE ANSWER THERE AND THERE'S
A VERY GOOD PAPER FROM FROM
MACKENZIE IS TO MOVE TOWARDS A
MORE FLAT CHARGE BECAUSE MOST OF
WHAT TEY'RE DOING IS NOT
VOLUMETRIC.
PEOPLE DON'T USE MORE OR LESS OF
THEY MAY ACTUALLY USE MORE
ELECTRICITY DURING PEAK
CONGESTION HOURS.
SO THE THERE BUT THEY'RE
DIFFERENT RATE STRUCTURES THAT
CAN MEET THAT.
THE OTHER THING THAT I FEAR FOR
SOME OF THE THE LAST --
WELL GROUNDED CCA LEADERSHIP IS
THAT THEY WON'T.
USE THE STATE'S.
EMERGING TIME OF USE PROGRAM
WHICH SINCE PRICE SIGNALS FOR
PEOPLE TO AVOID USING DURING
THOSE PEAK HOURS AND SO THE BEST
EXAMPLE WE HAVE HERE IN
CALIFORNIA SACRAMENTO MUNICIPAL
UTILITY DISTRICT.
WHERE THEY GOT 8% REDUCTION ON A
MINIMUM OF THEIR ELECTRICITY USE
THROUGH A PEAK CHARGE DURING THE
TWO HUNDRED HOURS OF THE YEAR?
WHEN ACTUALLY TRICITY IS IN
SHORT SUPPLY SAU KHI THEY TELL
PEOPLE CHARGING MORE?
SO THAT WE CAN BUILD THOSE POWER
PLANTS JUST TO PROVIDE YOU POWER
DURING THOSE TWO HUNDRED HOURS
OR YOU CAN GET SMART USE
TECHNOLOGY WILL HELP YOU WITH
ENERGY TOOLS. TO AVOID USING
ELECTRICITY HOURS THAT'S WHERE I
THINK THAT WE WILL PROBABLY HAVE
THE MOST PROBLEMS.
BUT WHAT I DO THINK IS IMPORTANT
ON EVERY LEVEL WHETHER IT'S
ELECTRICITY SERVICE PROVIDERS
WHETHER IT'S IT'S CCA'S
WEATHER'S INCOME.
IS WE NEED BETTER TOOLS THAT
SHOW PEOPLE THE RATES THEY CAN
CHOOSE FROM.
BECAUSE AS IT IS THEY JUST HAVE
TO FORMATION VIED PEOPLE AS THEY
DO IN TEXAS AND NEW YORK SO
PEOPLE CAN SEE AND COMPARE.
IN IN THIS FOLLOW UP ON ON THE
REGULATORY ASPECT OF IT DO YOU
THINK YOU COULD DO.
I DON'T HAVE BETTER NECESSARY
JOB IF YOU THINK YOU SHOULD HAVE
THAT AUTHORITY.
TO THOROUGHLY FOR DISCLOSURE I
THINK THAT THAT'S ABSOLUTELY
NECESSARY SOMEBODY HAS TO DO
THAT IT COULD BE YES IT COULD BE
THE CALIFORNIA ENERGY COMMISSION.
BUT EVERYBODY HAS TO PUT THEIR
CARDS ON THE TABLE.
AND I'M IN DIFFERENT AS TO WHO
THAT REALLY DOES THAT PROVIDES
IT BUT IT'S GOT TO BE THERE.
I DO WORRY MORE ON THIS ISSUE OF
MEETING OUR OUR OUR CLEAN ENERGY
GOALS AND HOW WE ACTUALLY DO
THAT.
WE KNOW THAT EVEN IF EVERYBODY
NEEDS THEIR ASPIRATIONAL ON
RENEWABLE PORTFOLIO STANDARD
GOALS.
THAT THAT ADDS UP TO LESS THAN
ON THE CLEAN AND RELIABLE GRID
THERE WE WANT SIMPLY BECAUSE
INDIVIDUAL CHOICES DON'T ALWAYS
MATCH UP.
AND TOO MANY PEOPLE MAKING
DIFFERENT CHOICES SOMETIMES WILL
FORCE.
MORE NEED --
FOR FOR A NATURAL GAS SPEAKERS
TO BACK IT UP HOW DO YOU
ACTUALLY HARMONIZE THAT AND YET
THE OPTIMAL.
OUT OF ALL THESE DIFFERENT
CHOICES AND THAT MAKE REQUIRE A
CENTRAL PROCUREMENT --
MECHANISM SIMILAR TO NEW YORK TO
INITIALLY --
MUCH THANK YOU ONCE AGAIN I WANT
TO ALSO THANK OF PRESIDENT
PICKER FOR YOUR PRESENTATION BUT
AS I LISTEN TO A TODAY AND HAS
LAST WEEK AND FOR THE LAST
COUPLE YEARS AS WE TALKED ABOUT
I'M ALWAYS LIFE WHAT CONCERNS.
AND I THINK YOUR OVERALL
PRESENTATION IS ONE OF CONCERN
AS WELL AS TO THE FUTURE WHERE
WE ARE IN CALIFORNIA AS IT
RELATES TO ENERGY [inaudible]
WOULD YOU.
DETERMINAR --
CLASSIFY OR DESCRIBE OUR OURPS
PROGRAM IS BEING SUCCESSFUL.
I WOULD HAVE TO SAY THIS THAT
FOR WHAT I BELIEVE THE REAL
PURPOSE WAS WHICH WAS TO
STIMULATE INVESTMENT IN NEW
TECHNOLOGIES AND DEVELOPERS
THERE WEREN'T PRESENT IN
CALIFORNIA'S ENERGY MARKET PLACE
YES.
WE NOW HAVE FROM THE ELECTRIC
UTILITIES PROVIDING PROBABLY
CLOSE TO FORTY THIRD BETWEEN
THIRTY FIVE AND 40% OF ALL THEIR
ELECTRICITY FROM REAL PROJECTS
THAT ARE IN THE GROUND.
WE KNOW THAT THEY HAVE CONTRACTS
FOR PROJECTS BUILT BY DEVELOPERS
WHO HAVE EXPERIENCED BUILDING IN
CALIFORNIA HAVE MOST OF THEIR
ENTITLEMENTS IN PLACE AND ARE
JUST WAITING FOR DEMAND TO REACH
THE POINT THAT THEY CAN THEY CAN
START TO COMPLETE CONSTRUCTION
AND CONNECT TO THE GRID.
THOSE UTILITIES WILL PROBABLY BE
SOMEPLACE UPWARDS OF 4250% --
SOMETIME TALK AROUND TWENTY
TWENTY TWO AND CAN EASILY GET
260% BY TWENTY THIRTY SO THAT IT
BRING NOBLES HAVE BECOME EASY.
THE CHALLENGES RELIABILITY AND
D. CARBONIZATION AND SO THOSE I
THINK ARE ARE --
AND COST WHAT WE DO KNOW IS THAT
THERE WAS A HEAVY PRICE PAID TO
GET THERE.
THE EARLY CONTRACTS WERE VERY
EXPENSIVE.
IN PART BECAUSE YOU'RE DEALING
WITH FOLKS WHO HAD NOT REALLY
HAD A LOT OF EXPERIENCE BUILDING
THESE KINDS OF PROJECTS IN
CALIFORNIA.
THEY YOU HAD BANKS THERE WERE
CLEARLY NERVOUS ABOUT LENDING
INTO CALIFORNIA ONE HAND TO
THESE NEW TECHNOLOGIES.
IT WAS ONLY BECAUSE OF THE
PRESIDENT --
PRESIDENT.
OBAMA'S.
STIMULUS DOLLARS STARTED TO
RELENT BUT THAT WAS AIDED BY THE
FACT THAT THEY STARTED TO SEE
SUCCESS.
THAT IN I HATE TO SAY THIS BUT A
LOT OF OF INNOVATION AND
BRINGING LABOR COSTS DOWN ON THE
PART OF OF THOSE DEVELOPERS
PRIMARILY BY NEW TECHNOLOGIES TO
REDUCE THE AMOUNT OF PEOPLE THAT
IT TOOK TO CONSTRUCT A WIND OR
SOLAR PROJECT.
HAS ALSO BROUGHT THE PRICE DOWN
THESE DAYS [inaudible]
SO FROM.
THE THE AT THE AT THAT POINT I
THINK WITH SUCCESS BUT IT WAS IT
WASN'T REALLY AIMED AT PRICE OR
RELIABILITY THAT WAS HERS BEING
DEALT WITH SEPARATELY.
IT WAS FOCUSED ON JUST BRINGING
THESE NEW TECHNOLOGY INTO COMMON
USE AND AN UNDERSTANDING THAT
AND I'M.
IT'S HARD FOR ME TO GRAPPLE WITH
OKAY YOU'VE SEEN UTILITIES MAKE
A MAJOR.
YOU DON'T TRANSITION TOWARDS
RENEWABLE ENERGY ENTERING THE
LEAGUE'S LONG TERM LONG TERM
CONTRACT AND NOW.
IN THE SAME TIME THE CUSTOMERS
ARE BEING ALLOWED TO MIGRATE
AWAY WHAT SENSE DOES THAT MAKE
THAT WE HAVE ASKED HIM TO MAKE
THIS INVESTMENT.
AND NOW THEY'RE THEY'RE UP 260%
IN SOME ASPECTS FOR THEY HAVE NO
CUSTOMERS A SERVER.
AND THERE'S NO GREATER AMOUNT OF
RE NOBLES AVAILABLE TO SEE C. H.
R. E. S. BEES AND THEY ARE TO
THE UTILITIES THEY'RE ALL
STICKING THEIR STRONG TO THE
SAME POLL.
A RENEWABLE ENERGY SO ARE WE
ACHIEVING OUR GOAL OF MORE
CLEANER ENERGY WHEN IT'S ONLY SO
SO MUCH AVAILABLE IN UTILITIES
ARE PICKED ARE PACKED WITH YOUR
ARE PROCURING AND CONTINUE TO
PROCURE.
POWER I NEVER SEEK TO QUESTION
THE IT WILL HAPPEN AND AND
THAT'S MY CONCERN AND I AND I
AND I SPEAK FROM A INDIVIDUAL
WHO.
WORK FOR UTILITY FOR NUMBER
YEARS AND I'M NOT HERE CARRYING
A WATER BECAUSE I KNOW WITH THE
DO WELL AND WHAT THEY DO LOUSY.
BUT AT THE SAME TIME I'M ALL FOR
CUSTOMER CHOICE BUT THE SCENARIO
YOU GAVE IS NOT CUSTOMER CHOICES
CUSTOMER FORCE.
I MEAN AND YOU SAID ILLINOIS'
MANY OTHER CUSTOMERS ARE GOING
BACK TO THE INCUMBENT UTILITY
WHAT WHAT'S THE REASON FOR IT'S
NOT SO MUCH THE CUSTOMERS IT'S
ACTUALLY AN ASSOCIATION OF THE
THOSE --
MUNICIPAL ENERGY AGGREGATORS GOT
TOGETHER BECAUSE THEIR HOPE WAS
THEY WERE GOING TO BEAT THE
PRICE OF OF THE THE UTILITIES
AND THEY COULDN'T I THINK THEY
DECIDE WOMAN THIS IS NOT WHATWE
SHOULD BE DOING ON BEHALF OF OUR
COMMUNITIES.
OKAY SO MY LASTING SINCE THEY
HAVE NO BALANCE SHEET --
THEY HAVE NO ASSETS.
I MEAN AGAIN.
I'VE SEEN THE SCENARIO THIRTY
YEARS AGO MANY CITIES AND AND
CALIFORNIA FIRST TIME HOMEBUYERS
PROGRAM BECAUSE THEY ALL THOUGHT
THEY CAN GET INTO THE MORTGAGE
BUSINESS AND HELP PEOPLE BUY
HOMES.
TODAY YOU'RE PROBABLY BE HARD
PRESSED TO FIND ANY CITY WERE
FIRST TIME HOMEBUYERS PROGRAM
HOUSE THIS ANY DIFFERENT BECAUSE
AGAIN.
MOST CITIES HAVE ENOUGH DOT A
HARD ENOUGH TIME RUNNING THEIR
PARKS AND REC DEPARTMENT LET
ALONE ELECTRICAL GRID ITSELF.
AND YOU SAID THAT THEY WILL BE
THE DEFAULT OF FALTER.
WHAT WOULD I SHOULD SAY TO POP
BACK TO THE CITY IF YOUR CCA
FAILS WHAT CITY ONCE ON THE
BALLOT YOU?
WHEN THEY CAN'T EVEN ARE YOU
DON'T PAY THEIR PENSION
OBLIGATION?
FOR SO ELECTRICITY MARKETS A
SAID CAN BE VERY VOLATILE VERY
HARSH AND I THINK THAT --
THAT COUNTY ADMINISTRATOR CITY --
MANAGERS ARE VERY WARY OF
PUTTING HEIR CREDIT --
ON THE LINE IN THESE RYAN KINDS
OF OF ENERGY MARKETS.
SO THAT LEAVES THE THE THE THE
LARGEST CREDIT ASSET. FOR THESE
CLEAN COMMUNITY AGGREGATORS OF
THEIR CUSTOMERS THE ELECTRICITY
SEPARATE FOR SERVICE PROVIDERS.
HAVE A DIFFERENT ADVANTAGE
THEY'RE USUALLY OUT OF STATE
UTILITIES.
WHO ARE DABBLING INCH RETAIL
CHOICE HEARING CALIFORNIA?
THEY HAVE BALLOT SHEETS THEY
HAVE THE HOME FOR THE HOME
UTILITY AND ITS ASSETS TO THE
BACK OF I HEARD I HEARD A
QUESTION IN THERE THAT WASN'T.
CLEAR TO ME IN YOUR ANSWER AND
AND MY MY QUESTION ONLY REQUIRES
A VERY SIMPLE YES OR NO.
BUT IT'S A KIND OF PIGGY BACKING
ON SOME OF THE DISCUSSION HERE
BECAUSE YOU MENTIONED THAT THAT.
I HAVEN'T ASKED A QUESTION ABOUT.
AND I'M JUST GOING TO BE HARD TO
GET.
TO BUT YOU HAD MENTIONED THAT WE
NEED SOME.
SOMEONE IN THE STATE TO IN A
PROCUREMENT BALANCING AT SOME
LEVEL.
AND THAT IS OCCASION BYE BYE.
THE WSDOM OF THE LEGISLATURE IN
TERMS OF HOW WE HAVE.
CHOSEN -- TO
YOU KNOW ALLOW FOR THE EMERGENCE
OF OF CCA'S IN THIS IN THIS CASE.
DO YOU BELIEVE THAT THE CCA
SHOULD BE UNDER YOUR REGULATORY
CONTROL.
I'M I I THINK THE DATE TO SOME
EXTENT THEY ARE BECAUSE WE SAT
THE STATE'S GOALS FOR ENERGY AND
WE'RE WORKING OUT HOW THAT WORKS
UNDER THE NEW INTEGRATED
RESOURCE PLAN WHICH BALANCES
BOTH.
RENEWABLE PORTFOLIO STANDARD BUT
ALSO THE CARBON READ ACT --
THE J. SHE REDUCTION GOALS OF SB.
THREE FIFTY SO WE SET THE GOALS
THE QUESTION IS IS DOES IT IS
THE CPUC THE RIGHT AGENCY TO
ACTUALLY DO PROCUREMENT AS A
BACKSTOP IN OTHER STATES IT'S A
SEPARATE AGENCY FROM THE
REGULATOR SO ALL I'LL SAY THAT I
THINK THAT THERE'S A ROLE FOR
THAT BACKSTOPS PROTECTION.
BUT I DON'T KNOW THAT HAS TO
THAT'S IT JOBS HI SO.
HI SO PROBABLY WOULD HAVE SOME
DIFFICULTY DOING THAT AT THE
RETAIL LEVEL --
DAY SET TRANSMISSION STANDARD SO
IT'S A LITTLE BIT OF A CONFLICT
FOR THEM ALTHOUGH I THINK THAT
THEY ACTUALLY --
GET STUCK DOING THAT FOR AND
NERSC RULES OR THROUGH THERE ARE
THE RUN MUST RUN --
CONTRACTS BUT AGAIN YOU COULD
CHOOSE ANY OF THOSE I'M SURE YOU
GET A SATISFACTORY ANSWER OTHER
STATES HAVE CHOSEN A SEPARATE
ENTITY.
THAT FOCUSES ON THAT.
PUTS SOME PUTS THE THE THE THE
PROGRAMS TOGETHER AND THEN
EVERYBODY HAS TO GO THERE FOR
EITHER THEIR ALL THEIR ENERGY OR
FOR SOME RESIDUAL THAT THEY
CAN'T PROCURE.
CENTER WIENER A LESSON FROM
CENTER.
IF I CAN BUILD ON THAT JUST EVER
SO SLIGHTLY TALKING ABOUT THE
RELIABILITY --
THE CHI SO ON THE RELIABILITY
ISSUE THERE'S ALREADY SOME
MECHANISMS IN PLACE IF ENOUGH
RESOURCES ARE BOUGHT IN A LOCAL
AREA FOR THE KAISER TO STEP IN
AND BUY SOME RESOURCES.
ON IT'S NOT THE MOST EFFICIENT
MECHANISM THAT'S WHY THERE'S A
LOT TO CONVERSATIONS ON
DIFFERENT MECHANISM.
A BROADER ISSUE WHERE THE ICE SO
WE REALLY CAN'T STEP IN AND HELP
THOUGH AND WE ARE SEEING THIS AN
INTEGRATED RESOURCE PLANNING.
IS WHAT HAPPENS WHEN YOU'RE
LOOKING LONG TERM.
AND THE RESOURCES THAT PEOPLE
ARE LOOKING TO BUY LONG TERM
DON'T ADD UP TO OUR CLINICAL.
THE I. SO WOULD HAVE THE ABILITY
POTENTIALLY TO STEP IN AND SAY
THESE RESOURCES DON'T RULE OUT --
ADD UP TO OUR RELIABILITY GOALS.
IT'S NOT AT ALL CLEAR THAT UNDER
BECAUSE IS FOR JURISDICTIONAL
THAT HAVE THE ABILITY TO SAY YOU
HAVE ENOUGH SOLAR YOU HAVE
ENOUGH GEO THERMAL YOU HAVE
ENOUGH --
PUMP HYDRO THOSE RESOURCES THAT
ARE OUT THERE.
DOESN'T SEEM TO BE SOMETHING
THAT WOULD BE WELL FIT TO THE HI
SO AND WE'RE ALREADY SEEN THAT
RIGHT NOW IN THE ISRAELI
RESOURCE PLANNING.
THAT WHEN THE INDIVIDUAL
ENTITIES SAY THIS IS WHAT OUR
LONG TERM PLANS ARE THEY ARE
ADDING UP TO THE STATEWIDE GOALS
AND THAT'S WHAT AT THE POINT
WHERE WE WE ARE QUITE SURE WHAT
TO DO ABOUT THAT YET.
THANK YOU MISTER CHAIRMAN A FEW
PEOPLE ASKED WHETHER THE CPC
CEBU CITY SHOULD HAVE A GREATER
ROLE.
IN REGULATING --
CCA'S AYE --
I WOULD AND FRANKLY WITH ALL
RESPECT IS TO FIGURE YOUR
COMMENTS HERE TODAY --
ARE --
FURTHER BOLSTER MY BELIEF --
I DON'T WANT TO SEE THE CPC
HAVING A GREATER ROLE I THINK
THE CPUC WOULD --
PRETTY QUICKLY MOVED TO KILL OFF
CCA'S INTO SPRING SUPER BLUNT --
AND HI.
I AM I HAVE A SENSE OF YOUR OF
FRUSTRATIONS WITH THE AGENCY --
BECAUSE I I BELIEVE THAT THE
AGENCY IS ATTEMPTING TO THE
DOUBLE DOWN ON THIS PAPER
CENTRALIZE MONOPOLY MODEL THAT
HAS NOT WORKED WELL. FOR
CALIFORNIA.
THE HOSTILITY TOWARD CCA'S THE
HOSTILITY TOWARDS --
D. -- WHICH
WE'RE SEEING AGAIN AND AND AND
SAYS THE REALLY PROBLEMATIC --
PROPOSED RULES TO IMPLEMENT --
DR LEGISLATION THAT WE PASSED
LAST YEAR THAT WOULD HAVE MADE
THAT LEGISLATION COMPLETELY
INEFFECTIVE AND TOTALLY OVERTURN
THE WILL OF THE LEGISLATURE --
AND SPECIFICALLY --
YOU MU MENTIONED TODAY OF THE
TERMS OF CCA'S POTENTIALLY NOT --
MEETING THERE --
RESOURCE ADEQUACY REQUIREMENTS
NOT SEE THIS VIDEO BUT I'VE BEEN
INFORMED THAT AN ASSEMBLY
HEARING.
EARLIER THIS YEAR HE MADE A
STATEMENT THERE WERE ELEVEN
RESOURCE ADEQUACY RAPE WAIVERS
GRANTED AND TWENTY EIGHTEEN AND
THAT A MAJORITY WERE GRANTED TO
CCA'S -- THE
CCA'S WENT INTO A PUBLIC RECORDS
REQUEST OF THE CPUC.
AND IT APPEARS THAT OF THE
ELEVEN WEEK.
OR A. WAIVERS GRANTED LAST YEAR.
ZERO WERE FOR CCA'S SO COULD YOU
JUST CLARIFY FOR ME HOW MANY.
OF THE ELEVEN ARE A WAIVER IS
GRANTED IN TWENTY EIGHTEEN WORK
FOR CCA'S.
SO USUALLY I SAY CCA OR
ELECTRICITY SERVICE PROVIDER SUN
I DIDN'T SAY THAT AND THAT'S
WHAT I'M MY APOLOGIES IS HOW HOW
OTHERS.
OF ELEVEN RESOURCE ADEQUACY
WAIVERS GRANTED IN TWENTY
EIGHTEEN HOW MANY WERE FOR CCA'S.
I'M I BELIEVE OUT OF THE NUMBER
ELEVEN YOU'RE TALKING ABOUT
EITHER ONE OR ZERO WERE FOR CCA
THE REST WERE FOR E. S. PEAS --
BUT LET'S HAVE.
THE TALKING ABOUT THE ARE A
WAIVERS ON FLOATING AROUND
CONFUSES THE ISSUES I THINK BOTH
WAYS TO BE QUITE HONEST.
I AM SO IS PRESENT PICKER WAS
ALLUDING TO A LITTLE WHILE AGO
ON I THINK IT WAS CENTER HERE
HUESO ASKED A QUESTION ABOUT
THAT.
YOU ARE A WAIVERS WE'RE TALKING
ABOUT HERE FOR LOCAL RESOURCE --
AND THERE'S A MECHANISM IN THERE
IF A LOAD SERVING ENTITY
INCLUDING THE S. P. S. CCA OR
AND I OWE YOU CAN'T.
GET THE RESOURCES THEY NEED
LOCALLY --
THEY CAN ASK FOR WAY FOR THE
WAIVER PROCESS EXISTS TO
MITIGATE AGAINST MARKET POWER SO
IF THEY'RE GOING OUT AND TRYING
TO BUY.
A RESOURCE IN THE GENERATORS
WITHHOLDING --
THE INTO T. IS NOT.
WE'VE GRANTED THE LAST YEAR I
THINK TEN OF THE ELEVEN WAIVERS --
IN ONE WE THOUGHT DIDN'T OPERATE
PROPERLY THERE --
WE'RE SEEING A SIMILAR TREND --
THIS YEAR --
THIS HAS TO DO THE GROWTH IN THE
WAIVERS WE DON'T THINK HAS TO DO
BECAUSE THE C. C. A. R. E. S. P.
YEAR THE I. ARE YOU IS A BAD
ACTOR.
WE THINK IT'S COMING BECAUSE OF
A CONFLUENCE OF TWO SIX ONE
THERE'S ACTUALLY LESS LOCAL
RESOURCES AVAILABLE NOW THAN
THERE WERE. FIVE YEARS AGO
BECAUSE THE ONCE THROUGH COOLEY
POWER PLANTS ARE CLOSING DOWN
AND THAT IS THEN MAKING FOR A
TIGHTER MARKET ON LOCAL
RELIABILITY --
I'VE IT'S ARGUABLE WHETHER
THAT'S A GOOD THING OR NOT WE'RE
GETTING TO THAT JUST ENOUGH
RESOURCES AND NOT OVER PROCURING
IF YOU'RE MEMBER COUPLE YEARS
AGO THE LA TIMES IS PRETTY
CRITICAL OF WE HAD TOO MUCH
RESOURCE.
NOW WERE THERE ON AND THEN THE
OTHER ISSUE IS IF YOU HAVE MRE
AND MORE ENTITIES TRYING TO FIVE
FROM THE SAME SET OF PLANTS.
THOSE PLANS HAVE AN ABILITY NOW
TO POTENTIALLY.
PLAY THE MARKET A LITTLE BIT SO
WE THINK THAT COMBINATION OF
HAVING A LOT OF ENTITIES TRYING
TO PROCURE THE THIS IS DOING THE
PROBLEM.
THAT DOESN'T MEAN ANY ONE OF
THOSE PEOPLE ASKING FOR THE
WAIVER IS A BAD ACTOR.
IT'S THE FACT THAT WE'RE GETTING
A LOT OF WAIVERS IS THE SIGN
THAT THERE'S A PROBLEM IN THE
MARKET.
RIGHT.
I UNDERSTAND BUT THE THE
COMMENTS WERE HEARING ARE THIS
CONSISTENT DRUM BEAT --
THERE'S A RESOURCE ADEQUACY
PROBLEM WITH THIS YOU SEE AIDS
IS A RESOURCE ADEQUACY PROBLEM
WITH THE CCA'S.
AND I I JUST THINK.
YOU KNOW.
I THINK THE FACTS DON'T SUPPORT
THAT -- AND
AND THIS IS WHY I WOULD NOT
SUPPORT EXPANDING CP'S THIRTY
OVER OF THAT I AGAIN I WILL I'LL
APOLOGIZE FOR THE WAY THAT I
CHARACTERIZE THE PROBLEM BUT I
WILL NOT SAY THAT THERE'S NOT A
PROBLEM [inaudible]
SO RUBIO [inaudible]
THANK YOU. ONE IDEA SURE MISTER
BRAD FIRST FRUSTRATION I DO
AGREE WITH YOU --
AND SOME PEOPLE HERE JUST
ANSWERED SOME OF MY QUESTIONS
BUT I HAVE A OF A CURIOSITY
DISCUSSED VIA.
PRICE COMPARISON WEBSITETHINGS
TO TEXAS AND I BELIEVE IN YOUR
CAR YOU WENT THAT ROUTE CAN
INJURE AND IN ENGLAND.
YOU SURE YOU'RE INSIDE ASKED TO
WHAT WERE SOME OF THE CHALLENGES
THEY WERE FACING AS THEY WERE
MOVING TOWARDS THIS OUT PRICE
COMPARISON WEBSITE THERE ARE
MANY OUR PARTY IS TO WHO ARE.
NOMINALLY UNDER THE OVERSIGHT OF
THE CPUC WHO DON'T HAVE TO
REPORT TO US WHAT THEIR PRICES
ARE.
AND SO THAT'S WHY I SAY THAT WE
NEED TO HAVE THE WEBSITE I'M IN
DIFFERENT AS TO WHETHER IT'S US
OR ANOTHER AGENCY.
BUT I THINK THAT THERE HAS TO BE
SOME WAY ACTUALLY SEE THE PRICES.
PROBABLY ALSO THE AS THE CDC IS
DOING ACTUALLY BEING ABLE TO
COMPARE.
THE ACTUAL PERFORMANCE IN TERMS
OF DE CARBONITE SINGING GREENING
IS WELL IT'S BEYOND JUST OUR PS
BECAUSE YOU GET A ONE YEAR
CONTRACT FOR OUR PS SCHOOL AND
TO BE ABLE TO PORTRAY THAT.
BUT YOU NEED TO HAVE SOME WAY
FOR PEOPLE TO REALLY SEE WHAT'S
GOING ON UNDERNEATH.
THANK YOU FOR THAT THANK YOU.
SENATOR HERTZBERG [inaudible]
ON I APOLOGIZE TO MR MEMBERS I
WAS THERE EARLIER FOR THE
PRESENTATION I JUST WANTED TO UP.
NOT SO MUCH AS QUESTIONS WHICH
IS JUST YOUR THOUGHTS WITH THE
COMMITTEE AS WE ENGAGE IN THE
SUBJECT MATTER HERE THE BROADER
THINK.
HERE IN IT'S KIND OF SOME
CONCERNS THAT I HAVE.
BECAUSE YOU KNOW I HAVE TO
MEASURES THIS AND I AND I DON'T
REALLY HAVE CONCLUSIONS ON THEN
WE STARTED TO CONVENE
STAKEHOLDERS ONCE CENTER COMPARE
PROCUREMENT ONE ON PROVIDERS OF
LAST RESORT.
LAST YEAR WE HAD A RESOURCE
ADEQUACY MEASURE WITH THOSE
THREE PILLARS OF THE
ARCHITECTURE REALLY ARE GOING TO
HAVE TO INFORM AS WE GO FORWARD.
AS THE INVESTOR OWNED UTILITIES
MAY CHOOSE TO BE PPED WIRES AND
POLES COMPANIES.
YOU STILL HAVE TO CREATE A
SOCIETY WE PREVENT AGAINST
BROWNOUTS AND BLACKOUTS THERE'S
STILL HAS TO BE IF THE PERFECT
STORM HAPPENS.
THERE HAS TO BE A BACK UP PLAN
WE LOAD ON THROUGH THE P. C. AND
FOR MANY MANY YEARS ALL SORTS OF
SOCIALIZATION COSTS FOR SENIORS
FOR ALL SORTS OF STUFF.
AND WE HAVE FOR THE LAST FIFTEEN
YEARS NOT MAYBE ARTFULLY OR NOT
ARTFULLY GRAPPLED WITH AS YOU
CORRECTLY NOTE IN YOUR ANALYSIS
YEAR YOUR YOUR SUMMARY HERE.
COST ALLOCATION METHODOLOGIES WE
JUST HAD A TALKED ABOUT THE
CCA'S MAY BE --
TAKING ON SOME OF THE LIABILITY
FOR THE FIRES YOU CAN'T JUST
TAKE ON THE ELECTRON SERVE YOUR
ELECTRONS AND AND AND BE IN THE
DELIVERY SYSTEM I'M NOT
SUGGESTING.
THE DEAL BUT BUT AS WE SIT DOWN
WITH THIS INTERESTING FOR
INFLECTION POINT MEMBERS IT IS I
SEE IT WHERE WE'VE DONE ALL THIS
BIG PICTURE STUFF ON PERCENTAGES
OF OUR P. S.'S AND BLAH BLAH
BLAH BLAH BLAH.
WE ARE FUNDAMENTALLY CHANGE THE
WORLD TECHNOLOGICALLY BY VIRTUE
WHAT TECHNOLOGIES OUT THERE THE
COST UPPER K. W. OUR ON ARIOUS
ALTERNATIVES WE'VE GOT A NUMBER
OF NEW THINGS IN THE PIPELINE.
BUT WE'RE REALLY AT THAT
INFLECTION POINT WHERE AS WE
FIGURE OUT WHAT THAT NEW WORLD
ORDER IS.
THAT'S WHY I HAVE THIS COST RICK
THE THE THE PROVIDER OF LAST
RESORT THATSENT TO PROCUREMENT
NOT TO ADVOCATED BUT TO TRY TO
AT LEAST TWO ARE COMMITTEE.
MEMBERS MISTER CHAIRMAN TO BEGIN
TO START THINKING ABOUT THAT THE
MUCH MORE SERIOUS WAYS WERE KIND
OF PASS THE OTHER ISSUES AND
INTO THE REAL RESTRUCTURING OF
WHAT THIS IS GONNA LOOK LIKE AND
DO WE ALLOWED AT WAIVERS AND HOW
THAT RESOURCE ALLOCATION PROCESS
WORKS WE DID THAT IN. TWO
THOUSAND ONE SO I JUST VERY
SENSITIVE TO IT I THINK WE HAD
AN EXTRAORDINARY CHALLENGE
BEFORE US AND YOU KNOW WE CREATE
CCA'S THAT I THINK WERE IN A
ROOM STEPS. TO BE ABLE TO
PROVIDE A MARKET MECHANISM TO
PROVIDE RENEWABLES AND THE LIKE
TO IT BUT THERE'S SOME
INTERESTING CHALLENGES THERE ARE
CONTINUE TO SURVIVE BUT I THINK
IS WHAT WE'RE ALL IN FOR A
SIGNIFICANT CHANGE TO BE ABLE TO
MAKE SURE WE HAVE A LIABILITY.
FOR OF PEOPLE OF CALIFORNIA
THANK YOU YOU SOMEWHAT SOME RICE
A PURPOSE OF THIS HEARING.
AND I JUST WANNA.
THAT BRING US BACK OF WE'VE GOT
WE BASICALLY WENT THROUGH A ONE
HOUR FOR THE FIRST PRESERVATION
NO YOU SHOULD APOLOGIZED THANK
YOU FOR BEING HERE THANK YOU FOR
GIVING US AT OUR WE HAVE --
QUITE A LONG LIST BUT WE HAVE.
AN ELEVEN PM --
HARD STOP.
AND WE WANT TO GET EVERYBODY
BECAUSE COMMENTS IN [inaudible]
OF WE'RE GOING TO BEG BEGIN WITH
FAN FONG LINE FOR FONG ONE SORRY --
AND THEN FOLLOWED BY --
MATTHEW FRIEDMAN.
GOOD MORNING.
THANK YOU CHAIR HOTEL IN THE
COMMITTEE FOR INVITING ME HERE
TODAY THIS IS AN IMPORTANT AND
TIMELY TOPIC.
THAT START WITH TODAY'S ENERGY
LANDSCAPE AND CELEBRATE OUR
SUCCESSES A LITTLE.
CALIFORNIA'S ACCOMPLISH MAJOR
STEPS ON RENEWABLE ENERGY AND
GREENHOUSE GAS REDUCTION.
OVER THE PAST FIFTEEN YEARS THE
STATE HAS PURSUED AGGRESSIVE GHG
REDUCTIONS.
FROM ELECTRICITY SECTOR TO LEAD
A BROADER STEAK --
A SUSTAINABLE LOW CARBON ECONOMY.
AS A KEY PARTNER IN THIS
TRANSITION.
P. GENIUS ENTRY INTO HUNDREDS OF
CONTRACTS TO BUY RENEWABLE
ENERGY.
P. JEANNIE HAS ALSO ENTERED INTO
ENERGY STORAGE CONTRACT. TO SPUR
JUST NASCENT TECHNOLOGY FOR LOW
CARBON FUTURE.
IN TOTAL BGS COMMITTED THIRTY
EIGHT BILLION DOLLARS BY SIGNING
OVER THREE HUNDRED RENEWABLE AND
ENERGY STORAGE CONTRACTS.
AND AS A RESULT OUR PORTFOLIO IS
OVER 80% G. SHE FREE WE HAVE FAR
SURPASSES 33% REQUIREMENT BY THE
YEAR.
TWENTY TWENTY HEALTHY INVESTOR
OWNED UTILITIES SUCH AS P. GINNY
HAVE BEEN KEY TO FINANCING
DISTASTE TRANSITION.
SUSTAINABLE LOW LOW CARBON
ECONOMY.
HOWEVER TO LECTURE CITY SECTOR.
AS IN EARLY TO VOIGTS BEEN
CHANGING RAPIDLY.
IN RECENT YEARS HAS BEEN A
SIGNIFICANT DECREASE IN DEMAND
FOR P. GENIES.
SUPPLY SERVICE.
THE THREE PRIMARY REASONS FOR
THIS SIGNIFICANT DECREASE.
THE FIRST IS THE RAPID EXPANSION
FOR RETAIL CHOICE AVAILABLE FOR
CALIFORNIA.
THAT INCLUDES DIRECT ACCESS AND
COMMUNITY CHOICE AGGREGATION.
THE SECOND IS THE INCREASES IN
DISTRIBUTED GENERATION.
PRIMARILY IN THE FORM OF ROOFTOP
SOLAR.
AND THE THIRD IS THE ONGOING
SUCCESS OF CALIFORNIA'S ENERGY
EFFICIENCY PROGRAMS.
LET'S TAKE A DEEPER LOOK AT YOU
SHOVEL.
COMMUNITY CHOICE AGGREGATION HAS
BECOME MORE PREVALENT
ALTERNATIVE TO FIJI SUPPLY
SERVICES.
PGA A SEIZE CCA'S EXPAND IN JUST
A FEW YEARS ABOUT 40% OF OUR
CUSTOMERS.
AND MOST OF THESE ARE
RESIDENTIAL CUSTOMERS.
WE ADDED DIRECT ACCESS PROVIDERS
SELLING ELECTRICITY SUPPLY TO
OUR INDUSTRIAL AND COMMERCIAL
CUSTOMERS.
THAT BRINGS US TO BOB 55% NEXT
YEAR.
THIS IS A HUGE CHANGE P. JEANNIE
WHEN ALL SERVE TO MINORITY OF
OUR CUSTOMERS.
AND AS TO COMPARE TO TO HIDE A
DEREGULATION.
P. JEANNIE STOSUR. 75280% SO NOW
WE'RE DOWN TO FORTY FIVE THE
SECOND DISTRIBUTED GENERATION.
MPG SERVICE TERRITORY HAS ALSO
INCREASED CONSIDERABLY OVER THE
LAST DECADE.
THIS IS MOSTLY THE INSTALLATION
OF ROOFTOP SOLAR TO RESIDENTIAL
AND COMMERCIAL CUSTOMERS.
AND STUDENTS DUE TO THE LOWER
PANEL BECAUSE INVESTMENT TAX
CREDITS.
AS WELL AS A CALIFORNIA'S NET
ENERGY MEETING.
GLASS IS ENERGY EFFICIENCY AND
AS OF TWO THOUSAND SEVENTEEN
EACH YEAR WE SAVE 122% OF OUR
CUSTOMERS USAGE.
THERE HAS BEEN CALL SHIFTED AS
WE TALKED ABOUT EARLIER UNDER
THIS CHANGING STRUCTURE.
CALIFORNIA SO I USE INCLUDING P.
JEANNIE WE ALWAYS SUPPORTED
CUSTOMERS RIGHT TO CHOOSE THEIR
ELECTRICITY SUPPLIERS.
PROVIDED THE EXERCISES CHOICE
DOES NOT COST CAUTIOUS TO THE
REMAINING CUSTOMERS.
IN TWENTY EIGHTEEN THE CPC
ISSUED A VERY NEW IMPORTANT
DECISION.
P. JEANNIE AND THE OTHER
UTILITIES COMMANDER CPUC ON A
SUBSTANTIAL EFFORT TO MAKE THIS
TIMELY NECESSARY CHANGE THE
MECHANISM IS CALLED POWER CHARGE.
INDIFFERENCE ADJUSTMENT.
UPDATED IS ADJUSTMENT HAVE MADE
OF FAIR. TO ALLOCATE COSTS ON
BEHALF OF ALL CUSTOMERS AND
REMEDY TO COST SHIFT.
LARA FROM DEPARTING LOW TO
BUNDLE LOVED.
ADDITIONALLY P. GENIES ALSO
LOOKING FORWARD TO WORKING WITH
THE CPC LATER THIS YEAR UNDER
SIMILAR REVIEW.
OF THE D. G. MECHANISM TO
CORRECTIVE.
KASHA FROM ROOFTOP SOLAR.
AND I'VE BEEN IN THAT THE COSTS
OF UPGRADED ONE BILLION DOLLARS.
A YEAR IT'S NOT AN ISSUE.
LET'S TURN TO TODAY'S HIGH
MARKET PRICES AT THE POTENTIAL
FOR RELIABILITY CONCERNS.
AGAINST THE BACKDROP OF
INCREASED CUSTOMER CHOICE WERE
ALSO SU STORY SEEING OF NORMAL
HIGH.
PRICES IN THE EYES SO MARKET ON
JULY TWENTY FOURTH OF LAST
SUMMER.
THE HIGH SO EXPERIENCE AND YOU
PRICES HITTING THE FIRST SET CAP
OF ONE THOUSAND DOLLARS PER
MEGAWATT HOUR.
THE FREQUENCY OF SUCH HIGH
PRICES INCREASED SIGNIFICANTLY
DURING THE THIRD QUARTER OF LAST
YEAR.
JUST LAST MONTH WE ALSO HAVE
MANY HIGH PRICES DO LOCK IN
LARGE PART TO NATURAL GAS
WORKING CONDITIONS.
CALIFORNIA HAS NOT SEEN PRICES
AS HIGH SINCE THE TWO THOUSAND
AND TWO THOUSAND ONE ENERGY
CRISIS.
THESE HIGH PRICES ARE LIKELY TO
CONTINUE DURING.
TWO THOUSAND NINETEEN THERE ARE
MANY OF US WHO BELIEVE THESE
HIGH PRICES WOULD BE TO LEAD
LEADING INDICATOR FOR
RELIABILITY CHALLENGES TO COME.
IS A VERY EVIDENT THAT OUR
INVENT OUR ENVIRONMENTAL
POLICIES.
AND THAT THIS AGGREGATION OF THE
RETAIL MARKET IS LEADING US INTO
UNCHARTED WATERS.
SOLUTIONS ARE NEEDED TO ENSURE
RELIABILITY AND AFFORDABLE
ELECTRICITY.
WHAT ABOUT A CENTRAL BUYER?
A CENTRAL BY STRUCTURE HAS
EMERGED AS A SOLUTION THAT CAN
PROVIDE COST EFFICIENCY.
MARKET CERTAINTY RELIABILITY
ADMINISTRATIVE EFFICIENCY AND
CUSTOMER PROTECTION DOES SOUND
PRETTY GOOD DOESN'T.
THE STARTED THIS DISCUSSION
EMERGED IN TWENTY JUNE TWENTY
EIGHTEEN THE CPUC.
POSTED A CENTRAL BY STRUCTURE IT
IS APPROPRIATE TO IMPLEMENT
WHAT'S CALLED A MULTI YEAR
RESOURCE ADEQUACY REQUIREMENTS.
P. JEANNIE BELIEVES THAT --
LEGISLATIVELY.
ESTABLISH DESIGNATED SPECIAL
EIGHTY IS THE IDEAL CENTRAL
BUYER.
THIS DESIGNATED ENTITY WOULD BE
FINANCIALLY STABLE NEUTRAL.
SUBJECT TO THE COMMISSION'S
OVERSIGHT PROMOTING THE STATE'S
GOAL OF EFFICIENCY CERTAINTY
RELIABILITY AND CONSUMER
PROTECTION.
IN ADDITION WE BELIEVE A CENTRAL
BY STRUCTURE COULD BE EXPANDED
BEYOND THE LOCAL ARE A IN TO
CLEAN ENERGY POLICY PROCUREMENT
MANDATES.
BACKSTOP PROCUREMENT OUR PS
DEFICIENCY OR EVEN FOR FLEXIBLE
AND SYSTEM OUR RACE.
THE CENTRAL BY ALSO WE NEED TO
BE ADEQUATELY COMPENSATED FOR
THE TOO SOON THIS ROLE.
TURNING TO P. GENIES THOUGHTS ON
CENTRAL PROCUREMENT.
P. GENIES OPEN.
THE DISCUSSION SURROUNDING
CENTER PROCUREMENT.
BEYOND THAT SOLELY TO RESOURCE
ADEQUACY BUT THEIR COMPLEX ISSUE
SO WE NEED SOME TIME TO RESOLVE.
WERE OPEN TO DISCUSSING BECOME A
WIRES ONLY COMPANY THAT PROVIDES
ONLY TRANSMISSION AND
DISTRIBUTION SERVICES.
THE KITTY KEY ISSUES THAT NEED
TO BE RESOLVED BEFORE WE HEAD
DOWN THIS PATH.
NUMBER ONE IS THAT WE HAVE A
VERY SUBSTANTIAL GENERATION
PORTFOLIO WE STILL HAVE DIABLO
CANYON.
THE BIGGEST INVESTOR OWNED YOUR
A UTILITY HYDRO RESOURCES IN THE
COUNTRY.
AS WELL AS THREE OR FOUR HUNDRED
GAP OCT ABOUT EARLIER THERE HAS
TO BE A CLEAR PROVIDER OF LAST
RESORT.
SO THAT THIS IS BACKSTOPS FOR
ALL CUSTOMERS.
NO ONE GETS LEFT BEHIND WOULD
PROVIDE OF LAST RESORT. THIRTY
IT'S A SEPARATE BUILDING AND A
RATE DESIGN STRUCTURE THAT
CLEARLY SEPARATES AGREE CHARGES
VENDOR AND JUST SUPPLY CHARGES.
I'LL BE HAPPY TO ADDRESS YOUR
QUESTIONS OKAY THANK YOU AND AND
YOU MENTIONED THAT THE
SEGREGATION OF THE MARKET.
YES IN YOUR OPINION.
IS IT THE SERVER CATION.
LEE TO RELIABILITY CONCERNS FOR
YOU GOING INTO THE FUTURE LIKE.
IN THE INTERIM I MEAN.
THIS YEAR ARE WE LOOKING AT
RELIABILITY CONCERNS ASSOCIATED
WITH THAT.
THIS YEAR I BELIEVE WE'RE
LOOKING AT HIGH PRICES.
AND POSSIBLE RELIABILITY
CONCERNS BUT HE'S COMING IN
FUTURE YEARS DO YOU THINK IT'S
BECAUSE OF THE SEGREGATION.
I BELIEVE YES I DO AND
HISTORICALLY DO UTILITIES HAVE
SERVED EIGHTY PLUS PERCENTAGE OF
OUR LOAD.
AND WE STEP FORWARD TO MAKE SURE
SOME OF THE LOCAL RELIABLE
UNISON ALWAYS THERE.
AND WE NO LONGER HAVE THAT
RESPONSIBILITY THANK YOU VERY
MUCH THERE ARE NO AND THE ANY
OTHER QUESTIONS SENATOR HILL I
JUST CAN'T HELP MYSELF I HAVE TO
TO MAKE A COMMON ISSUE AYE AYE
AYE YOUR COMMENT THAT P. GINNY
SUPPORTS CUSTOMER CHOICE IN IT
AND THAT YOU HAVE.
HISTORICALLY YOUR COMPANY.
HISTORICALLY FOR EVERY EFFORT
FOR YOUR CUSTOMERS OF YOUR
CUSTOMERS TO CHOOSE IT ANOTHER
SOURCE OF ELECTRIC POWER WITH
THE RICH PROPOSITION A SIXTEEN
IN TWO THOUSAND AND TEN AND THE
FORTY MILLION DOLLARS OVER FORTY
MILLION I I JUST DID.
IT AMAZES ME TO HEAR THAT THAT
YOU'RE TELLING ME AND TELLING
THIS COMMITTEE THAT YOU SUPPORT
THOSE EFFORTS OF OF OF CUSTOMERS.
TO DO THAT AND THAT IS SO FAR
FROM THE TRUTH.
SO WHAT IT DOES IS IT QUESTIONS
MY THE CREDIBILITY OF EVERYTHING
ELSE YOU SAID TODAY [inaudible]
OKAY.
DID YOU WANNA RESPOND.
I WOULD I WOULD SAY IS THAT WE
HAVE TO GRADERS PENETRATION CCAC
CALIFORNIA.
AND WE HAVE TO TRY TO FACILITATE --
THIS EVENT AND HAPPENING.
OKAY THANK YOU.
OF MATTHEW FRIEDMAN.
THANK YOU MISTER CHAIRMAN AND
MEMBERS OF THE COMMITTEE.
MATT FRIEDMAN ON BEHALF OF THE
UTILITY REFORM NETWORK I
APPRECIATE THE OPPORTUNITY TO
SHARE A FEW THOUGHTS ABOUT THE
STATE OF THE MARKET AND SOME
PRINCIPLES AND NEXT STEPS THAT
SHOULD BE CONSIDERED THIS YEAR.
CUSTOMER CHOICE AND EVOLUTION OF
THE CURRENT MARKET.
CREATES ALL SORTS OF NEW
OPPORTUNITIES WHILE ALSO POSING
THREATS TO THE TO THE SUCCESSFUL
ACHIEVEMENT.
OF DEFINED STATE POLICY
OBJECTIVES CONSUMER PROTECTIONS.
AND STABLE MARKETS.
REGULATION CERTAINLY HAS ITS
FLAWS AND THE CALIFORNIA P. YOU
SEE IS A HIGHLY IMPERFECT ENTITY
AS WE ALL NOW.
BUT EXPERIENCE SINCE THE
DEREGULATION DEBACLE IN TWO
THOUSAND TWO THOUSAND ONE PROVES
THE STATE CAN ACCOMPLISH
SUBSTANTIAL RESULTS THROUGH
SMART REGULATION.
DIRECT OVERSIGHT OF THE
PURCHASING BY LOW SERVING
ENTITIES AND THE EXERCISE A
BROAD ENFORCEMENT AUTHORITY.
SO THE STATE SHOULD BE CAREFUL
TO REPLACE BROAD OVERSIGHT AND
ENFORCEMENT.
WITH PROMISES THAT LOCAL CONTROL
OR COMPETITION OR CUSTOMER
PREFERENCES PROVIDE A COMPLETE
SUBSTITUTE FOR THAT FUNCTION.
ON THE ENERGY CRISIS OF TWO
THOUSAND ONE TWO THOUSAND WAS
DRIVEN IN PART BY A LACK OF
COORDINATED PLANNING.
AND A NEAR COMPLETE RELIANCE ON
MARCH HOUSE TO SOLVE PROBLEMS WE
CAN'T MAKE THAT SAME MISTAKE
AGAIN.
ON TODAY WE FACE A CLASSIC
COLLECTIVE ACTION PROBLEM WHERE
EVERY INDIVIDUAL BUYER IN THE
MARKET.
WANTS TO PROCURE RESOURCES BASED
ON THEIR OWN PREFERENCES.
EVEN IF THE LARGER SYSTEM NEEDS
ARE LEFT UNADDRESSED.
THE LEGISLATURE THE GOVERNOR
STATE REGULATORS NEED TO BE
PREPARED TO MAKE SOME HARD
CHOICES IN THE DAYS AHEAD.
NOT ASSUME THAT ALL COMPETITIVE
ACTORS ARE GOING TO BE SATISFIED
BY THE POLICY CHANGES THAT ARE
NEEDED.
BUT LIKE TOPPER COUPLE
PRINCIPLES TO GUIDE ACTION FIRST
OF ALL WE NEED TO MAKE SURE THAT
CUSTOMERS ARE INDIFFERENT TO THE
CHOICES MADE BY OTHER CUSTOMERS.
IN OTHER WORDS --
THE DECISIONS MADE BY ONE SUBSET
OF CUSTOMERS CAN'T FRUSTRATE THE
COLLECTIVE ACHIEVEMENT OF OUR
SHARED POLICY GOALS.
OUR CUSTOMER CHOICE ISN'T
VALUABLE IF IT MAKES IT HARDER
TO ACHIEVE THE DESIRED OUTCOMES.
AND SECONDLY WE NEED TO MAKE
SURE THAT CUT THE CHOICES MADE
BY ONE SET OF CUSTOMERS DON'T
SHIFT RESPONSIBILITY FOR LEGACY
COST TO OTHER CUSTOMERS.
WE NEED TO RECOGNIZE THAT A LOT
OF THESE BATTLES OVER COST
ALLOCATION OVER TERRACE FOR
DISTRIBUTED RESOURCES OVER EXIT
FEES.
THESE ARE EFFECTIVELY CUSTOMER
VERSUS CUSTOMER CHOICES IT'S
WHICH SET OF CUSTOMERS PAY --
AND IN MANY CASES AS MUCH AS I
WOULD TO PAY AS MUCH AS POSSIBLE
THAT'S ARGUING ABOUT IN FRONT OF
THE COMMISSION WERE ARGUING
ABOUT WHICH SET OF CUSTOMERS
PACE WE NEED TO MAKE SURE WERE
FAIR [inaudible]
I CAN.
WE NEED TO ESTABLISH
COMPREHENSIVE RESOURCE PLANNING
REQUIREMENTS AND VIABLE
MECHANISMS TO ACHIEVE ARE
DEFINED OBJECTIVES WHAT'S THE
PROBLEM.
THE PROBLEM IS THE COMPETITIVE
ELECTRICITY MARKETS ARE
TYPICALLY CHARACTERIZED BY SHORT
TERM COMMITMENTS AND SHORT TERM
CUSTOMERS.
DIRECT ACCESS PROVIDERS HAVE
RELIED VERY HEAVILY ON SHORT
TERM PROCUREMENT STRATEGIES TO
SERVE THEIR CUSTOMERS.
AND NEW COMMUNITY CHOICE
AGGREGATORS ALSO RELY PRIMARILY
ON SHORT TERM PROCUREMENT
STRATEGIES.
MORE MATURE CCA'S HAVE BEEN ABLE
TO MIGRATED TO MORE LONG TERM
COMMITMENTS AND THAT'S A
SIGNIFICANT DEVELOPMENT.
BUT THE INVESTOR OWNED UTILITIES
IN THE PUBLICLY OWNED UTILITIES
THEY'VE BEEN THE GOLD STANDARD
HISTORICALLY FOR DRIVING YOU
RESOURCE DEVELOPMENT --
AND THAT'S BECAUSE NEW RESOURCE
DEVELOPMENT REQUIRES LONG TERM
COMMITMENTS AND STABLE CREDIT
WORTHY COUNTERPARTIES.
BUT GOING FORWARD WHEN WE LOOK
AT THE MARKET ALMOST ALL OF THE
NEW RESOURCES NEEDED TO MEET OUR
STATES GOALS.
ARE GOING TO HAVE TO BE DRIVEN
BY THE COMPETITIVE PORTION OF
THE MARKET SERVE BY COMMUNITY
CHOICE AGGREGATORS AND DIRECT
ACCESS PROVIDERS.
SO WE NEED TO THINK ABOUT HOW TO
MODIFY OUR POLICIES OR COME UP
WITH NEW MECHANISMS TO ENSURE
THAT WE GET THERE.
ON THE OUR PS PROGRAM IS THE
MOST SUCCESSFUL ELEMENT OF THE
STATE'S CIMATE POLICY --
BUT IT'S NOT ENOUGH IT'S NOT
DESIGNED TO BE A SILVER BULLET
WE ALSO HAVE AN INTEGRATED
RESOURCE PLANNING PROCESS.
THAT PROCESS IS --
IN AN INTERESTING AN INTERESTING
CROSS XIN ISSUED YESTERDAY BY
THE PC POINTS TO SERIOUS
DEFICIENCIES IN THE COMMISSION'S
OWN PROCESS.
AND THE FACT THAT THE PLANS
COMING IN SO FAR SIMPLY AREN'T
ADDING UP --
AND RAISING QUESTIONS ABOUT HOW
THAT POLICY IS GOING TO HAVE TO
OF ALL.
ME AND UNDER THE OUR PS PROGRAM
AS WAS MENTIONED A FEW MINUTES
AGO THERE'S A REQUIREMENT 465%
OF ALL PROCUREMENT.
USED FOR COMPLIANCE TO COME FROM
LONG TERM CONTRACTS IN TWENTY
TWENTY ONE WELL IT'S TWENTY
NINETEEN WE'VE GOT TO GET THERE
QUICKLY AND IT'S NOT CLEAR THAT
EVERYBODY'S GONNA MAKE IT.
SO WHAT DO WE NEED TO DO TO
ADDRESS THIS COLLECTIVE ACTION
PROBLEM OF THE ISSUES WERE
FACING IN THE MARKET.
AND THIS IS WHEREWE SEE THE
NEED FOR A CENTRALISED BACKSTOP
MECHANISM FOR PROCUREMENT --
I THINK THE WORD BACKSTOPS
IMPORTANT HERE.
BECAUSE IT INDICATES THAT THERE
IS A DESIRE TO LET LOW SERVING
ENTITIES DO THEIR SHARE --
ASSEMBLE THEIR PORTFOLIOS AND
HAVE EVERY OPPORTUNITY TO MEET
THE STATE'S NEEDS BUT WHEN NEEDS
ARE ON MATT.
THERE NEEDS TO BE AN ENTITY TO
STEP IN WELL TODAY WE HAVE TO
BACKSTOP MECHANISMS THAT ARE IN
USE ONE THE INVESTOR OWNED
UTILITIES.
UTILITIES HAVE BEEN THE LEVER
THAT THIS LEGISLATURE AND THE
COMMISSION HAS PULLED REPEATEDLY
TO SAY GO DO THIS THING MAKE IT
HAPPEN WE NEED MORE RESOURCE
ADEQUACY --
WE NEED MORE OF THIS AND MORE OF
THAT THAT NUMBER IS IS
INCREASINGLY BROKEN.
ON THE INVESTOR OWNED UTILITIES
THEMSELVES ARE FORMING THAT
FUNCTION WE HAVE AN INVESTOR
OWNED UTILITY IN BANKRUPTCY
OTHERS FACING CREDIT CHALLENGES.
AN OVERALL CONVERSATION ABOUT
MAKING THE UTILITIES SKINNIER IN
THIS RESPECT TURNING THEM INTO
MORE WIRES COMPANIES.
ON THE OTHER BACKSTOPS MECHANISM
IS THE CALIFORNIA ISO THEY DO
BACKSTOP RETIREMENT FOR
RELIABILITY.
THROUGH SINGLE YOUR CONTRACTS
AND MAY BE THROUGH MULTI YEAR
CONTRACTS WHAT WHAT'S THE
PROBLEM WITH RELYING MORE ON THE
CALIFORNIA I SO --
THEIR DECISIONS AREN'T SUBJECT
TO REVIEW AND APPROVAL BY ANY
STATE AGENCY.
OR BY THIS LEGISLATURE.
THE REGULATED BY THE FEDERAL
ENERGY REGULATORY COMMISSION.
SO GREATER RELIANCE ON THE ISO
TO PERFORM THE CENTRAL ROLE.
EFFECTIVELY MEANS TURNING OVER
MORE RESPONSIBILITY TO FORK AND
ESPECIALLY WITH THE FOR THAT WE
HAVE TODAY IN THE APPOINTEES --
WHO ARE CONTROLLING THE PROCESS
THERE I DON'T THINK CALIFORNIA
WANTS TO SEE MORE HAVE ALREADY
TO THAT AGENCY AT THIS TIME?
ESPECIALLY SINCE BURKE HAS
EXPRESSED A STRONG PREFERENCE.
FOR CENTRALIZED FORWARD CAPACITY
MARKETS THAT HAD BEEN WIDELY
CRITICIZED IN THE EAST FOR
RAISING CUSTOMER COSTS AND
FRUSTRATING STATE RESOURCE
PLANNING GOALS.
SO THE NEXT STEP SHOULD BE THE
CONSIDERATION OF A SEPARATE
ENTITY. TO PERFORM THIS
DEDICATED PROCUREMENT ON A
BACKSTOPS BASIS IT COULD EITHER
BE MANDATORY PROCUREMENT THAT
THE LEGISLATURE SAYS MUST
HAPPENING CAN'T BE EASILY
ALLOCATED.
IT COULD BE COORDINATED
PROCUREMENT OF RESOURCE ADEQUACY.
I COULD BE CURING ON MATTER
RESIDUAL NEED THAT'S IDENTIFIED
IN THE INTEGRATED RESOURCE
PLANNING PROCESS AND COULD ALSO
BE A VOLUNTARY OPT AN ENTITY.
FOR LOW SERVING ENTITIES THAT
NEED HELP MEETING FOR EXAMPLE
THEIR LONG TERM CONTRACT
OBLIGATIONS UNDER THE OUR PS.
THE BIG QUESTION IS THIS A STATE
AGENCY OR IS IT AN INDEPENDENT
NONPROFIT I THINK THAT'S A
QUESTION THAT THE LEGISLATURE IS
GOING TO HAVE TO GRAPPLE WITH --
IF A PROPOSAL LIKE THIS MOVES
FORWARD AT THE END OF THIS IS TO
HAVE A ROBUST MECHANISM.
WELL WE ALSO PRESERVE THE
AUTONOMY OF COMMUNITY CHOICE
AGGREGATORS AND ELECTRIC SERVICE
PROVIDERS TO MAKE THEIR OWN
RESOURCE PLANNING CHOICES.
I THINK THIS OFFERS AN APPROACH
THAT CAN RECONCILE A LOT OF OUR
COMPETING OBJECTIVES --
AND THE MOST IMPORTANT THING IS
WE NEED TO DEVELOP THIS
MECHANISM BEFORE THE NEXT CRISIS
HITS.
ON THE MISTAKE OF THE ENERGY
CRISIS WAS THAT WE TRY TO
RESTRUCTURE THE ENTIRE SYSTEM IN
REAL TIME WHILE MARKETS WERE
MELTING DOWN WE CAN'T AFFORD TO
WAIT THAT LONG.
WE SHOULD BE A LITTLE BIT AHEAD
OF THE CURVE THIS TIME THANK YOU.
THANK YOU NOW WILL GO --
TO DâN WHITES OF WITH THE THE
CLEAN ENERGY CALIFORNIA CLEARLY
CHOICES SO SITUATION AND KENDALL
HOW LONG.
OF WOULD SEND US ELECTRIC.
IF WE CAN.
MAKE ROOM HERE IN THE DíAS
THINK.
THE MORNING CHAIR AND MEMBERS
THANK YOU FOR THE OPPORTUNITY TO
SPEAK WITH THE COMMITTEE TODAY.
MY NAME IS DONNA EYES AND I'M
THE PRESIDENT OF KELSEY CA AND
ALSO THE CEO OF AND C. E. THE
FIRST COMMUNITY CHOICE PROGRAM
FORMED IN CALIFORNIA BACK IN TWO
THOUSAND AND EIGHT AT TODAY
THEIR NINETEEN CALIFORNIA CCA'S
IN OPERATIONS SERVING AN ANNUAL
LOAD.
OF THIRTY THREE THOUSAND
GIGAWATT HOURS PER YEAR.
THAT'S ABOUT EQUAL TO THE LOAD
SERVED BY P. JEANNIE WHICH IS
NOW.
380-00 AND IT'S A QUARTER OF THE
LOAD OF ALL THREE INVESTOR OWNED
UTILITIES OR AREAS.
SO CLEARLY WE ARE IN THE MIDST
OF A TREMENDOUS PARADIGM SHIFT.
WHEN THE LEGISLATURE ESTABLISHED
CCA BY -- IS
A VISION TO LOCALIZE AND
DEMOCRATIZE THE ENERGY SECTOR.
TODAY THE ENERGY LANDSCAPE HAS
REINVENTED ITSELF BUT THE
REGULATORY LANDSCAPE HASN'T
QUITE CAUGHT UP.
THE CPUC WAS SET UP TO PROTECT
THE PUBLIC AGAINST THE INHERENT
PROFIT DRIVE OF I'LL.
AND TO TRY AND KEEP GIANT
UTILITIES FROM FAILING.
THAT REGULATORY MODEL RELIES ON
CENTRAL DECISION MAKING TOP DOWN
DIRECTION AND EXERTING CONTROL
OVER LARGE POWER PROVIDERS.
THE MODEL IS NECESSARY WHEN
DEALING WITH LARGE FOR PROFIT
UTILITIES BUT IT FALLS APART
WHEN IT'S APPLIED TO SMALL AND
MID SIZED PUBLIC POWER PROVIDERS.
BECAUSE THIS NEW MODEL.
IS SET UP WITH THE DIRECT WITH
THE PUBLIC HAVING DIRECT INPUT
INTO THE ELECTRIC PROVIDERS
DECISIONS AND THE PUBLIC
CONTROLS THE LOCAL GOVERNING
BOARDS MADE UP OF MAYORS CITY
COUNCIL MEMBERS AND COUNTY
SUPERVISORS.
ELECTRIC SUPPLIERS ARE
INHERENTLY MORE TRANSPARENT AND
ACCOUNTABLE AS WE ARE GOVERNED
BY THE BROWN ACT AND THE PUBLIC
RECORDS ACT.
OUR CUSTOMERS AND LOCAL
GOVERNING BOARDS HAVE ALREADY
BUILT ENERGY AGENCIES THAT ARE
INTIMATELY ORIENTED TOWARDS
REASONABLE COSTS FINANCIAL
STABILITY AND EXCEEDING STATE
STANDARDS FOR RENEWABLES AND GHG
REDUCTION.
WE ACTUALLY HAVE MORE RENEWABLES
AND GHG FREE POWER IN OUR
PORTFOLIO THAN THE I'LL USE
TODAY WITH LONG TERM CONTRACTS.
WHEN THE CPC REGULATORY CULTURE
IS APPLIED TO PUBLIC AGENCIES
THE TOP DOWN MODEL DRIVES UP
COSTS FLOWS DOWN PROGRESS AND
PREVENTS CREATIVE TRANSPARENT
LOCAL SOLUTIONS?
IS NOT INHERENTLY BAD SYSTEM BUT
IT WON'T WORK IN THE CURRENT
CONTEXT.
AND WEN WE ADD IN P. GENIES
MULTIPLE SAFETY FINANCIAL AND
CREDIT FAILURES.
AS WELL AS THE CLOSE REGULATOR
RELATIONSHIP MANY HAVE NOTICED
BETWEEN P. JEANNIE AND THE CPSC.
I AGREE THAT IT'S TIME TO
REVISIT THE REGULATORY FOCUS.
WHAT'S EXCITING IS THAT WE'RE
SEEING THE NEW OUT OF THE OLD.
ENERGY DEMOCRACY THAT WAS
ENVISIONED BY THE LEGISLATURE IN
TWO THOUSAND AND TWO IS TAKING
ROOT ACROSS CALIFORNIA AND ITS
ACCELERATING PROGRESS TOWARDS
CALIFORNIA'S RENEWABLE AND GHG
FREE GOALS WHILE USING A
TRANSPARENT.
PUBLIC BOTTOM UP FREE MARK.
THERE'S A LOT WE CAN DO TO
ADJUST TO THE NEW PARADIGM FOR
TODAY I HAVE JUST THREE
RECOMMENDATIONS THE FIRST IS
THAT THE CPC SHOULD NARROW THEIR
FOCUS. TO SAFETY AND I OWE YOU
COST MANAGEMENT TO PROTECT RATE
PAYERS.
THIS MEANS IS THAT THEY WILL
ENSURE OR THEY SHOULD ENSURE
THAT THE I'LL USE ARE SELLING
OFF ENERGY AND RELIABILITY
RESOURCES THEY NO LONGER NEED.
AND PROTECT THE PUBLIC AGAINST
I. O. U. MARKET POWER.
THAT MEANS MINIMIZING --
THE LOS SUNK COSTS AND
MAXIMIZING THE VALUE OF THEIR
POWER FOR RATE PAYERS.
THE IDEA YOU SHOULDN'T BE
SELLING OFF VALUABLE LONG TERM
POWER CONTRACTS INTO THE SPOT
MARKET.
THEY SHOULDN'T BE ENGAGING IN AD
HOC LOW COST SALES WITHOUT A
BROADER PLAN AN EXAMPLE OF THAT
WOULD BE THE DEER PARK HYDRA
FACILITY BEING SOLD OFTEN
PLASTER COUNTY WITH THE SALE
PRICE OF ONE DOLLAR.
AND NO APPARENT PUBLIC
SOLICITATION.
THE CPUC SHOULD ALSO BE ENSURING
DATA TRANSPARENCY FOR TIME OF
USE RATE DESIGN TAKING ADVANTAGE
OF THE SMART METERS THAT OUR
RATE PAYERS ALL PAID.
FOR AND TO ALLOW FOR LOW
SHIFTING PROGRAMS AND ALSO TO
ENSURE THAT WILD FIRE BASED DE
ENERGIZING OF POWER LINES.
HAPPENS IN A PROACTIVE WAY.
MY SECOND RECOMMENDATION IS THAT
THE CALIFORNIA ENERGY OF THE
COMMISSION THE CDC TO TAKE OVER
PUBLIC CCA ENERGY PLANNING
ACTIVITIES REPORTING AND
OVERSIGHT.
THIS FUNCTION SHOULD BE
TRANSITIONAWAY FROM THE CPSC TO
ALLOW THEM TO FOCUS ON SAFETY
AND I OWE YOU COST MANAGEMENT.
FOR THE FORESEEABLE FUTURE I'LL
USE WILL HAVE VIRTUALLY NO ROLE
IN BUILDING ENERGY OR
RELIABILITY REACHED RESOURCES.
THE EASY COORDINATION OF
INTEGRATED CA IS AND PUBLIC
UTILITIES IS MUCH MORE IMPORTANT.
THAN WITH THE CPUC BECAUSE
THAT'S WHO'S DOING THE
PROCUREMENT.
ON THIS POINT ON ALL ALSO NOTE
THAT THE CPC HAS HAD DIFFICULTY
PROVIDING ACCURATE INTEGRATED
RESOURCE PLANNING TEMPLATES TO
CCS BECAUSE THEIR MODELS ARE SET
UP FOR LARGE I USE.
AS A RESULT THE I. R. P.
TEMPLATES LAST YEAR WERE BEING
ALTERED IN THE MONTH MONTHS
WEEKS AND EVEN DAYS LEADING UP
TO THE FILING DEADLINE.
CCA'S AND PUBLIC UTILITIES
ALREADY REPORT TO THE CDC UNDER
THE RENEWABLE PORTFOLIO STANDARD
FOR OUR RELIABILITY OBLIGATIONS
AND MANY OTHER COMPLIANCE
OBLIGATIONS THAT WE HAVE.
PUBLIC AGENCY PLANNING SHOULD BE
ALL IN ONE PLACE FREEING UP THE
CPUC TO FOCUS ON SAFETY AND I
OWE YOU OVERSIGHT.
MY THIRD RECOMMENDATION RELATES
TO RELIABILITY PLANNING AND
SPECIFICALLY IN NEED FOR CLEAR
REQUIREMENTS WE'VE HEARD A LOT
ABOUT RELIABILITY WE AGREE THAT
WE ALL NEED TO KEEP THE LIGHTS
ON THE CHALLENGE WITH
RELIABILITY IN THE LAST TWO
YEARS.
IS PARTLY DUE TO OUR INTENDED
TRANSITION AWAY FROM FOSSIL FUEL
BASED RESOURCES BUT ONE KEY
ISSUE THAT.
HAS NOT BEEN A BIG PART OF THE
CONVERSATION IS THE LACK OF
CLEAR REQUIREMENTS FOR LOAD
SERVING ENTITIES TO FOLLOW.
JUST LIKE ENERGY PLANNING WE
SHOULD SHIFT RELIABILITY
PLANNING AWAY FROM THE CPUC AND
CREATE CLEAR REQUIREMENTS OR A
LIABILITY.
A DEFINED BY CASE SO BECAUSE
THEY HAVE BETTER MARKET
INTELLIGENCE.
AS WEST WITH THE PLANNING
FUNCTION ABOVE THE CPC IS NOT
EQUIPPED TO CORRECTLY MANAGE
RELIABILITY AND IT ONLY TAKES
AWAY FROM WHAT SHOULD BE THEIR
CORE FOCUS ON SAFETY AND HOW YOU
COST MANAGEMENT --
IF I MAY PROVIDE AN EXAMPLE OVER
THE LAST TWO YEARS THE CPUC HAS
CHANGED RELIABILITY FILING
REQUIREMENTS WITHIN MONTHS OF
THE FILING DEADLINE AFTER MANY
LOW SERVING ENTITIES HAD ALREADY
PROCURED. TO MAKE THINGS WORSE
LAST FALL THE CPC THAN REDUCE
THE REQUIRED ALLOCATION SEVEN
DAYS AFTER THE FILING DEADLINE
COSTING CCA'S SEVEN POINT NINE
MILLION DOLLARS OF ACCESS
RELIABILITY PROCUREMENT.
WITH CLEAR STANDARDS SET BY CHI
SO THE RELIABILITY NEEDS SHOULD
BE MET BUT ANY RESIDUAL NEED NOT
COVERED COULD THEN BE PURCHASED
BY HI SO OR A THIRD PARTY.
JUST LAST MONTH FIVE TO SEE IF
YOU CAN WRAP UP NOW ABSOLUTELY
I'M JUST OF THE TALENT HERE
WANTED TO NOTE THAT JUST LAST
MONTH FIVE CCA'S ISSUED A
SOLICITATION FOR JOINT ARE A
LOOKING TO BUY A BIG CHUNK OF
RELIABILITY.
AND THEIR COMBINED LOTUS TWENTY
THOUSAND WHAT HOURS.
PRETTY BACK ABOUT HALF THE SIZE
OF P. JEANNIE ONE LAST NOTE THE
WILDFIRE THREAT THAT WILL CAUSE
MORE ROUTINE AUTOMATIC OUTAGES
IN FIRE PRONE AREASWILL
JEOPARDIZE RELIABILITY FOR
CRITICAL CUSTOMERS LIKE
HOSPITAL'S EMERGENCY CENTERS AND
MEDICAL BASELINE CUSTOMERS.
CCA'S WANT TO PARTNER WITH THE
CPUC AND I'LL USE TO BUILD IN
BACKUP SUPPLY AND RESILIENCY BUT
WE NEED ACCESS TO DATA AND WE
NEED JOINT COOPERATION TO
SUCCEED. FOR OUR SHARED
COMMUNITIES.
WE LOOK FORWARD TO WORKING WITH
THIS COMMITTEE AND THE
LEGISLATURE AS WE ENTER THE NEW
PARADIGM THANK YOU WAS GOING
HOME.
RIGHT GOOD MORNING CHAIRMAN
HUESO AND MEMBERS OF THE
COMMITTEE.
I AM PLEASED TO BE HERE TODAY TO
DISCUSS ENERGY SUPPLYING
CALIFORNIA AND HOW IT WILL
EVOLVE TO MEET BOTH STATE AND
CUSTOMER INTERESTS.
I PLAN ON ADDRESSING THREE
TOPICS TRENDS IN SAN DIEGO A
CENTRAL BUYER AND THE PROVIDER
OF LAST RESORT.
LET ME BEGIN WITH AN UPDATE ON
DEVELOPMENTS IN OUR TERRITORY.
ON FEBRUARY TWENTY FIFTH THE SAN
DIEGO CITY COUNCIL VOTED TO MOVE
FORWARD WITH CCA THROUGH
ESTABLISHMENT OF A JOINT POWERS
AUTHORITY INTENDED TO INCLUDE
OTHER JURISDICTIONS IN THE
COUNTY.%
THEIR GOAL IS TO BE UP AND
RUNNING AND PROVIDING ENERGY TO
CUSTOMERS BEGINNING IN.
TWENTY TWENTY ONE IF WE INCLUDE
JURISDICTIONS WITH ANTICIPATED
INTEREST IN THIS THE SAME MODEL
AND CUSTOMER SURVEY THE ONE
OPERATING CCA AND OUR TERRITORY
AND DIRECT ACCESS.
ESTY GINNY COULD BE LEFT SERVING
ROUGHLY 20% OF LOAD IN OUR
TERRITORY IN JUST A FEW YEARS.
THIS TREND IS NOT INCONSISTENT
WHAT WITH WHAT WE ARE SEEING
ACROSS THE STATE WHERE BY ENERGY
SUPPLY IS BECOMING INCREASINGLY
DECENTRALIZED.
IN CALIFORNIA WE ARE MOVING TO A
MODEL WITH THE POTENTIAL FOR
OVER FIFTY CC IS AN EXPANSION
AND THE DIRECT ACCESS PROGRAM.
AS A RESULT THE I'LL USE WILL
PLAY A SMALLER ROLE IN
PROCUREMENT GOING FORWARD. FOR
EXAMPLE AS THE GENIE IS
CURRENTLY NOBLE PERCENTAGE IS
AROUND 45% WELL AHEAD OF OUR
COMPLIANCE REQUIREMENTS.
WITH ANTICIPATED LOW DEPARTURE
OUR MODELS NOW SHOWN THAT ARE
NEED TO PROCURE RENEWABLE
RESOURCES AS EXTENDED FROM THE
MIDTWENTY TWENTIES TO WELL
BEYOND.
TWENTY THIRTY WELL OUR FORECAST
AND ENERGY SUPPLY NEEDS ARE
DECREASING PROCUREMENT BY NOT A
YOU PROVIDERS IS EXPECTED TO
RISE AS DESCRIBED BY PRESIDENT
PICKER AND MAIN CLEAN ENERGY.
AS THE STATE MOVES FORWARD WITH
DECENTRALIZED PROCUREMENT A KEY
ISSUE ACING LEGISLATORS AND
REGULATORS IS COORDINATION OF
THAT PROCUREMENT TO MEET A
SINGLE GOAL BJ'S TO REDUCTION OF
RELIABILITY.
THIS COORDINATION QUESTION
BRINGS ME TO AN IMPORTANT PART
OF OUR VISION.
WITH THE IDEAS HAVE
TRADITIONALLY PROVIDED
OPERATIONAL RESOURCES AND THE
BALANCE SHEET TO LEAD
LEGISLATIVE OR REGULATORY
DIRECTED PROCUREMENT.
WE RECOMMEND THAT GOING FORWARD
THE EMERGING PLAYERS LEAD THE
WAY.
IT WILL BE IMPORTANT AT ALL --
THIRTEEN ENTITIES ARE SUBJECT TO
THE SAME RELIABILITY AND CHASE
TO PRODUCTION REQUIREMENTS.
BUT WHEN THERE IS A GAP BECAUSE
OF DECENTRALIZED A STATE SPECIAL
PURPOSE ENTITY OR CENTRAL BUYER
COULD BE RELIED UPON TO PICK
YOUR RESIDUAL NEEDS.
THE SCOPE FUNCTIONALITY AND
GOVERNANCE OF THE CENTRAL BUYERS
PARAMOUNT TO SUCCESS THE LET ME
STATE A FEW POINTS ABOUT OUR
POSITION.
FIRST RELATES TO THE QUESTION OF
WHO WILL BE THE CENTRAL BUYER.
WE BELIEVE THE ENTITY MUST BE
INDEPENDENT AND FINANCIALLY
VIABLE WITHOUT INDEPENDENCE OF
THE FUNCTION IS PARTICULARLY
VULNERABLE TO LITIGATION AND
DISPUTE.
AND WITHOUT THE FINANCIAL
BACKING TO SECURE RESOURCE FOR
FOUR BROAD STREET NEEDS BROAD ST
MEANS THE FUNCTION CANNOT BE
RELIED UPON AS A SAFETY NET.
SECOND RELATES TO THE QUESTION
OF WHAT WILL BE PROCURED.
WE BELIEVE THE ENTITY SHOULD
BACKSTOP RELIABILITY AND GT
REDUCTION GOALS BUT THAT CENTRAL
PROCUREMENT SHOULD BE LIMITED IN
SCOPE THE COLLECTIVE
DEFICIENCIES RESULTING ONLY
AFTER OTHER LOW SERVING ENTITIES
HAVE MADE THEIR PORTFOLIO
DECISIONS.
THIRD RELATES TO WHY S.
DETAINEES SHOULD NOT SERVE IN
THIS FUNCTION.
BESIDES FAILING TO MEET THE
INDEPENDENT STANDARD AS
DETAINEES SHOULD NOT SEEK TO
REGULARLY TAKE ON MULTI MILLION
DOLLAR COMMITMENTS FOR CUSTOMERS
THAT HAVE CHOSEN A DIFFERENT
ENERGY PROVIDER.
INSTEAD WE BELIEVE IT MAKES MOST
SENSE FOR US TO FOCUS ON SAFE
AND RELIABLE DELIVERY OF CLEAN
ENERGY.
INCLUDING THE INVESTMENTS NEEDED
TO INTEGRATE HIGHER LEVELS OF
CLEAN ENERGY ON THE GRID.
IN FACT AT A BROAD LEVEL WE
BELIEVE IT IS BEST FOR ALL
STAKEHOLDERS IF WE ACCEPT THE
ROLE OF ENERGY SUPPLY.
ENERGY SUPPLY ALTOGETHER.
AS WE CONSIDER THE OPTION IT IS
IMPORTANT TO KNOW THAT WE
CURRENTLY ACTIVISTS PROVIDER OF
LAST RESORT A POLAR.
WITH THIS TERM I'M REFERRING TO
THE OBLIGATION TO SERVE OUR
CUSTOMERS AND OUR TERRITORY WHO
ARE NOT SERVED BY ANOTHER LEAD
SERVING ENTITY.
CONCERNS HAVE BEEN RAISED ABOUT
WHO WILL PROVIDE FULLER SERVICE
AND AS THE GENIE EXITS
PROCUREMENT.
IF WE ESTABLISH THAT ALL THOSE
SERVING ENTITIES ARE SUBJECT TO
THE SAME --
LIABILITY AND CHASE TO
PRODUCTION REQUIREMENTS.
AS WELL AS A CENTRAL PRIOR TO
BACKSTOP ANY GAPS THE POLAR
SERVICE IS SMALLER IN SCOPE.
SIMPLY PUT THE POLAR SERVICES
LIMITED TO PROCURING DAILY
ENERGY NEEDS FROM THE CHI SO FOR
A SMALL PERCENTAGE OF CUSTOMERS
IN THE STATE.
I'VE DONE ELSEWHERE THIS
FUNCTION CAN BE PROVIDED BY A
WIDE VARIETY OF ENERGY SUPPLIERS
AUCTIONED OFF OR PROVIDED BY THE
CENTRAL BUYERS WELL.
IN CLOSING I WOULD LIKE TO
EMPHASIZE THAT AS TEACHING HE
RECOGNIZES THE PROCUREMENT
LANDSCAPE IS CHANGING.
WE EXPECT IT IS CENTRAL AS MODEL
CAN WORK IF IMPLEMENTED PROPERLY.
MOST IMPORTANTLY WE BELIEVE NOW
IS THE TIME TO ENSURE THE RULES
REGULATIONS INSTRUCTIONS ARE PUT
IN PLACE TO SUPPORT THIS FUTURE
MARKET PLACE.
THANK YOU AND I'M HAPPY TO
ANSWER ANY QUESTIONS AND BEFORE
WE CHANGE A PANEL JUST WANT TO
ASK.
EACH OF YOU.
THE SAME QUESTION I ASKED.
THE REPRESENTED FROM P. JEANNIE
REGARDING --
THE SEGREGATION AND HOW IT'S
AFFECTING THE MARKET PLACE AND
WHETHER IT'S CONTRIBUTING.
TO RELIABLE REAL RELIABILITY
CONCERNS.
EITHER NOW OR IN THE FUTURE.
IF YOU COULD JUST.
BRIEFLY GIVE GIVE ME A RESPONSE
TO THAT.
SURE THANK YOU SENATOR --
I THINKA JURY STILL OUT ON WHAT
THE RESULT IS GOING TO BE IN
TERMS OF RELIABILITY WERE
HEARING ANECDOTALLY ABOUT
GREATER CHALLENGES OF FINDING
RESOURCES AND SOME OF THE LOCAL
AREAS --
THERE'S CERTAINLY BEEN A
SLOWDOWN IN THE DEVELOPMENT OF
NEW RESOURCES AND SOME OF THE
LOCAL AREAS THAT ARE NEEDED.
COMBINED WITH THE RETIREMENT OF
EXISTING FACILITIES ON THIS
RAISES THE QUESTION OF HOW WE'RE
GONNA PLAN ESPECIALLY IN THE
LOCAL AREAS TO MEET RELIABILITY
NEEDS AND IF WE IF WE RELY ON A
SYSTEM WHERE EVERYONE GETS TO
CHOOSE WHATEVER THEY'RE GOING TO
BUY IN THE LOCAL AREA AND BUYS.
A LITTLE BIT OF THIS AND A
LITTLE BIT OF THAT --
AND THERE'S NO CENTRALIZED
COORDINATION AROUND THAT WE MAY
VERY WELL GET SUB OPTIMAL
RESULTS --
AND UNLESS WE MAKE SURE THAT
GENERATION IS BUILT IN THE RIGHT
PLACE AT THE RIGHT TIME OR WE
HAVE DEMAND SIDE RESOURCES THAT
CAN PROVIDE THAT SAME FUNCTION.
WE MIGHT BE HEADING TOWARDS --
SOME CHALLENGES IN TERMS OF
PRICING AND SO THE GOAL WOULD BE
TO AVOID THAT BUT AGAIN JURY
STILL OUT.
THANK YOU.
BUT IT'S ENOUGH TO GINNY'S
TERRITORY ANY RELIABILITY
CONCERNS THAT HAVE EMERGED
REALLY RELATE MUCH MORE TO THE
EXISTING GENERATION --
THAT'S NEEDED IN THE LOCAL AREA
GOING FORWARD UNDER TO
CENTRALIZE MODEL I THINK IT'S
VERY IMPORTANT THAT WE HAVE
CENTRALIZED PLANNING.
AND AND THAT SOME AGENCY OR OR
THERE'S SOME WAY.
TO ENFORCE THE REQUIREMENT THAT
ARE PUT UPON AFRAID LOW TECH
UNITY.
I'M AT ALL RESPOND TO THE
QUESTION UP FIRST BY CLARIFYING
THAT WHEN WE DID THE PUBLIC
RECORDS ACT REQUEST REGARDING
THE WAIVERS THAT WERE FILED IN
TWENTY EIGHTEEN ONE I OWE YOU
FILED A WAIVER FOR A LIABILITY
ONE D. A CUSTOMER FILED A WAIVER.
NINETY S. P. IS FILED A WAIVER
AND ZERO CC IS FILE THE WEATHER
WHAT A WAY FOR SOMEONE TO TO
CORRECT THE RECORD ON THAT POINT --
WHEN A LARGE ENTITIES SERVING
HALF THE STATE FAILS IT'S A
DISASTER?
THIS SEGREGATION IS A AND
ANOTHER VERSION OF DIVERSITY --
IN FINANCE WE ARE TOLD TO
DIVERSIFY YOUR PORTFOLIO I'M IN
THE ENERGY SECTOR IT'S NO
DIFFERENT DO YOU BELIEVE IT'S
CREATING RELIABILITY CONCERNS.
NO I BELIEVE THAT WITH GOOD
PLANNING AND COORDINATION WE
WILL HAVE A STRONGER SYSTEM WITH
THE SOCCER CATION WE HAVE THAT
GOOD PLANNING NOW.
I THINK WE NEED TO IMPROVE OUR
PLANNING OKAY.
VERY GOOD THANK YOU DID YOU
WANNA ASSN.
OKAY WELL WE'LL GO TO WE DON'T
KNOW.
QUESTION WHAT I WOULD DO IT NOW
BECAUSE FOR YEAH.
I JUST I JUST A QUICK QUESTION
OF THE CCA'S OF YOUR NINETEEN
ARE ANY STEEL.
PURCHASING REX.
I'M TO MY KNOWLEDGE OF THE
NINETEEN CCA IS --
I THERE ARE --
I AM NOT AWARE OF ANY THAT ARE
PURCHASING RACKS BUT I THINK
WHAT YOU MEAN IS ON BUNDLED OF
RENEWABLE ENERGY CREDITS ARE
ALSO CALLED DOCKET THAT.
MORAN WAS PURCHASING FROM SHELL.
JUST A FEW YEARS AGO SO.
I'M NO THAT IS NOT ACCURATE --
P. JEANNIE --
WAS NOT PURCHASING UNBUNDLE
CONRAD INTERVIEW WAS NO I'M THE
CEO OF AND C. E. AGAIN WITH MC A
SENSE BEFORE ONE WELL I WISH
YOUR UTILITIES AT THE TIME AND
YOU GUYS WERE PURCHASING.
RENEWABLE ENERGY CREDITS FROM
SHELL OIL.
THAT'S NOT ACCURATE OKAY ARE
THEN I'M GONNA BE AN ACCURATE
THAT.
IS ME I'M GONNA SUPPORT YOU
BECAUSE I WAS ON THE NAPA COUNTY
BOARD OF SUPERVISORS AT THE TIME
AND THAT'S WHY VOTED NO.
ON M. C. BECAUSE YOU WERE USING
SUBSTANTIAL RENEWABLE ENERGY
CREDIT SO I I DON'T KNOW WHERE.
I DON'T KNOW WHERE THIS COMING
FRIDAY.
THANK YOU I HAVE LOTS OF
CONSTITUENTS THERE ON THE
PROGRAM.
SO YOU KNOW I I'VE I'VE COME
AROUND I'M LISTENING AND
EVERYTHING ELSE BUT HEARING YOU
SAY THAT.
I MEAN JUST TO THE POINT THAT --
MISTER HILL MADE ABOUT THE P.
JEANNIE IT MAKES ME QUESTION THE
VALIDITY OF YOUR TESTIMONY
BEFORE BECAUSE I DON'T BELIEVE
IT'S TRUE.
UNFORTUNATELY THERE'S BEEN A LOT
OF MISSED INFORMATION CIRCULATED
ABOUT AND C. E. SINCE OUR LAUNCH --
THERE WAS A TIME WHEN WE WERE
PURCHASING UNBUNDLED RENEWABLE
CREDITS BUT WE HAVE --
TRANSITION AWAY FROM THAT I OVER
THE LAST TWO YEARS AND IT'S BEEN
ZERO FOR THE LAST FEW YEARS I'M
HAPPY PROVIDE YOU WITH DETAIL.
BUT I JUST.
READ A FURNACE AND WE NEVER PER
TWO THAT'S RIGHT I DIDN'T SAY NO
HI YEAH I KNOW I SAID ANYWAY
LAST QUESTION --
I'M I'M GOING AWAY EASY YOU SAY
THIS IS COMMUNITY CHOICE.
BUT IF IT WAS TRULY COMMUNITY
CHOICE YOU AN OPT FOR OP
INVERSES OPT OUT TO ME THIS IS
COMMUNITY FORCE HOW IS THIS
DIFFERENT FROM.
OCCUPYING COMMUTING INTO YOU
LIBERATE YOURSELF BECAUSE I
GUARANTEE IF YOU PULLED.
THE MAJORITY OF OUR CUSTOMERS
NOT 10% NO THEY'RE PART OF CCA
AND I BET EVEN LESS THAN THAT
KNOW WHAT IS TO SERIOUS SO HIGHS
IS TRULY COMMUNITY CHOICE.
IT'S A GREAT QUESTION SENATOR
BRADFORD AND I'D LIKE TO JUST
POINT OUT THAT NO CUSTOMERS
CHOSE TO BE A CUSTOMER OF ON I
OWE YOU --
THAT TRULY WAS A MODEL THAT WAS
CREATED A HUNDRED YEARS AGO WHEN
YOU HAD VERY FEW OPPORTUNITIES
DO YOU WANT TO LOOK LIKE A THIRD
WORLD COUNTRY WERE YOU OUT.
HOLDEN WIRES ALL IT HAPHAZARDLY
AROUND IT WAS DUE FOR THE
SIMPLICITY OF HAVING A UNIFIED.
GREER AND A DELIVERY SERVICE
VERSUS MULTIPLE SUPPLIERS THAT
WOULD HAVE TOLD CHAOS IN YOUR
COMMUNITY HAVE OUTAGES ALL DAY
LONG SO YOU'RE ABSOLUTELY RIGHT
MIKE I COMPLETELY AGREE --
BUT IT'S IMPORTANT TO NOTE THAT
WITH A CCA THERE ACTUALLY IS A
CHOICE BETWEEN TWO DIFFERENT
ENTITIES PROVIDING SERVICE PRIOR
TO SEE CA THERE ACTUALLY ISN'T
CHOICE UNDER MONOPOLY PARADIGM.
AGAIN IF IT WAS TRULY CHOICE YOU
WOULD OPT FOR OBTIENT VERSUS OPT
OUT AND MY LAST THING YOU SAID
YOUR SUPPORT OF OF DIVERSITY AND
OB PURCHASING THE PROCUREMENT
BUT WHAT ABOUT YOUR YOUR ONE
FIFTY SIX DIVERSITY IN YOUR
CCA'S WHICH IS LACKING.
VERY MUCH SO IN FACT LAST WEEK
WE HELD OUR LOCAL VENDORS TO
COME AND GET SIGNED UP TO BE GEO
ONE FIFTY SIX CERTIFIED --
WE GO THROUGH A RIGOROUS PROCESS
TO OF THAT OUR VENDORS AND OF
FIND OUT WHAT THEY'RE DOING ON
DIVERSITY AND WE HAVE --
ANNUAL REPORTING ON THAT WE LOOK.
FOR TO WELL FED US.
I MEAN JUST A CLEAR OFF THEIR
BECAUSE WERE WAY OVER ON TIME.
WE'RE GONNA.
BECAUSE WE'RE NOT GOING TO BE
ABLE TO MAKE COMMENTS AT THE END
RIGHT BECAUSE WE'RE GONNA BE IF
IF WE GET THROUGH THIS ALL RIGHT
I JUST CAN'T DO THIS OF FOR
FIRST OF ALL MISTER CHAIRMAN I
REALLY APPRECIATE YOU HOLDING
THIS HEARING --
I KNOW WE HAVEN'T HEARD THE LAST
PANEL YET BUT I THINK IT'S GIVEN
US.
A LOT OF DETAIL TODAY ON MANY
THINGS WE'VE HEARD SOME
SIGNIFICANT THINGS.
LIKE UNCHARTED TERRITORY REPLY
ABILITY ISSUES.
PRICE UNCERTAINTY NEED FOR
CENTRALIZED PLANNING --
THE TESTIMONY FROM TURN I LIKE
WHAT I'VE HEARD IN THE PAST WAS
QUITE CREDIBLE I THINK HE DID AN
OUTSTANDING.
JOB SETTING THAT SAID SETTING
THE TABLE THERE WE'VE HEARD FROM
OUR CCA'S ONE THING THAT I'M
VERY VERY CONCERNED ABOUT.
IS THE ABILITY AND THE
OBJECTIVITY THAT NEEDS WE CANNOT
GET TO A POINT WHERE THIS
UNCHARTED TERRITORY JUST SHOWS
UP AND THEN ALL SAID WE HAVE
I I I'M JUST GONNA PUT THIS OUT
THERE I THINK WHEN THE STRIKE
TEAM THAT THE GOVERNOR HAS --
YOU KNOW GOING FORWARD --
DO MAKING RECOMMENDATIONS ON THE
CURRENT SYSTEM THAT WE HAVE WITH
OUR FIRES EVERYTHING THAT MAYBE
THEY BE DELEGATED THIS TASK OF
LOOKING INTO THIS AND MAKING A
RECOMMENDATION.
BACK BUT I DON'T REALLY BELIEVE.
YOUR WHERE MOST OF US.
OUR REPRESENTING CCA'S I AM THAT
I AM NOT GOING TO GO YES ALL MY
LOCAL ELECTED OFFICIALS IT ALL
THE COUNTIES I HAPPEN --
IT IN I THINK THAT WE'RE SEEING
THAT HAPPENING IN THE
LEGISLATURE.
AND WE CAN NOT.
PUT OUR CUSTOMERS AND OUR
CONSTITUENTS IN HARM'S WAY I
HOPE.
HIS WIFE IS CORRECT IN WHAT SHE
SAID ABOUT THEIR AT PLANNING AND
THEIR ABILITY TO PLAN.
BUT SOMEWAY SOMEHOW BECAUSE IT'S
GOING TO FALL BACK ON US WE HAVE
TO TRUST [inaudible]
BUT VERIFY.
THANK YOU WE'RE GONNA MOVE TO
THE NEXT TIME AROUND PERRY.
OF TO COME FORWARD AND FOLLOWED
BY COLIN CUSHIONING.
THAT ONE OF THE ON AIR LIVING.
GOT YOUR GEAR
[inaudible]
BUT THE THANK YOU COMMITTEE FOR
ALLOWING MY CALIFORNIA BASED
EMPLOYEE OWNED COMPANY
COMMERCIAL ENERGY TO REPRESENT
DIRECT ACCESS PROVIDERS AT THIS
TABLE. FOR A KID THAT WENT TO
JUNIOR HIGH SCHOOL OF WHAT
AVENUE IN NORTH HIGHLANDSAND
WAS THE BOYS STATE
REPRESENTATIVE FROM EDWARDS AIR
FORCE BASE ALMOST FORTY YEARS
AGO TO THIS PLACE IT'S MY HONOR
TO BE HERE TODAY.
AS AN ACTIVE ESP IN THE NATURAL
GAS AND POWER MARKETS FOR OVER
TWO DECADES COMMERCIAL ENERGY
BRINGS A DIFFERENT PERSPECTIVE.
WHILE 36% OF INDUSTRIAL
CUSTOMERS USE OVER FIVE THAT USE
OVER FIVE HUNDRED K. W. BY
THROUGH AN ENERGY PROVIDER ONLY
12% OF COMMERCIAL AND
AGRICULTURAL CUSTOMERS DO.
ON THE OTHER HAND 95% OF THE
DIRECT AXIS METERS OR LESS THAN
FIVE HUNDRED K. W..
AND THE ONLY REPRESENT 37% OF
THIS DIFFERENCE IN PRISON IN
PENETRATION RATES HIGHLIGHTS THE
FUNDAMENTAL PROBLEM IN THE GO TO
MARKET ISSUE FOR THE GRID.
HOW DO WE EMPOWER SMALLER SEE AN
AYE CUSTOMERS TO ENGAGE IN THE
CARBONIZATION?
WE THINK YOU DO THAT BESTER
EXPANDING DIRECT ACCESS AND WE
SEE FOUR LEGS TO THAT TABLE.
FIRST ALLOW THE PCI A FACE TO
PROCEEDING TO FINISH ITS WORK IN
THE NEXT TWELVE MONTHS.
KNOCK ON WOOD.
SECOND.
ALLOW THE CARBONIZATION OF THE
EXISTING BUILDING INVENTORY BY
ELECTRIFYING NATURAL GAS FIRED
HEATING SYSTEMS AND ON SITE
GENERATORS AND EMPOWERING --
EVEY CHARGING STATIONS SINCE
ALMOST 20% OF OUR CO TWO COMES
FROM BUILDINGS AND 50% FROM THE
TRANSPORTATION GRID.
THIRD DELIVER TIME OF USE RATES
TO FULLY PRICE THE COST OF THE
LATE AFTERNOON RAMP ESPECIALLY
DURING THE DARK AND STILL DAYS
OF WINTER AND THE HOT AND HOTTER
SUMMER DAYS.
AND LASTLY DIVERSE SYFY
STATEWIDE PORTFOLIO RISK BY
ALLOWING E. S. PIECE TO COMPETE
IN BRINGING THE SOLUTIONS TO THE
SEA AND I MARKET PLACE INSTEAD
OF ONLY FIFTEEN POINT 4% THAT
YOU'VE ALLOWED US TO TODAY.
WE SEE DIFFICULT IN
ACCOMPLISHING THE CARBONIZATION
WITHOUT COMPLETE DA OVER THE
NEXT TEN YEARS SIMILAR TO WHAT
WE HAVE IN NATURAL GAS OF FOR
THE PAST THIRTY YEARS.
pOF THE PC I A OR ALLOWING PCIE
TO FINISH ITS BUSINESS THE KEY
FINDINGS THERE ARE TO ESTABLISH
A METHODOLOGY TO REDISTRIBUTE
THE EXISTING ASSETS WHETHER OUR
A. R. P. S. OR BROWN ENERGY. TO
THE PARTICIPANTS IN THE MARKET
PLACE.
COMMERCIAL ENERGY PROPOSED
EVALUATION ALLOCATION AN AUCTION.
CLEARING HOUSE TO SET THESE
PRICES AND THESE ASSETS AND THIS
OUTPUT TO BE ATTRIBUTABLE TO THE
THIRD PARTY SUPPLIERS IN AFFECT
OUR BACK PROPOSAL IS SIMILAR TO
THE CENTRAL PROCUREMENT WITHOUT
THE MANDATE.
CUSTOMERS VOLUNTARILY CUSTOMERS
EXCUSE ME ESPN'S VOLUNTARILY CAN
TAKE THEIR ALLOCATION OR AUCTION
INTO IT ON A YEAR BY YEAR BASIS
ON THE LONG TERM ASSETS WHAT
THIS DOES IS ELIMINATES THE RISK
WE CONTINUE TO DOUBLE PROCURE.
TOO MUCH SOLAR AT NOON AND
HERE'S THE PROBLEM WE TALK ABOUT
VOLATILITY OF HIGH PRICES YOU
ALSO GET VOLATILITY OF LOW
PRICES.
I'M A PRETTY GOOD QUANTITY THIS
KIND OF STUFF AND THAT'S WHY G.
AT NOON.
ESPECIALLY IN SOLELY IN IN THE
VALLEY SWEAR YOU HAVE THIS
ACCESO BACK LECTURES CITY UP AND
THEN YOU SEE THOUSAND DOLLAR
POWER AT EIGHT PM BECAUSE YOU
HAVEN'T EMPOWERED TO SEE AN AYE
CUSTOMERS TO HELP MITIGATE THAT
LOAD.
SECOND WE NEED TO DE CARBONIZED
EXISTING BUILDING YOUR INVENTORY
AND IT'S A LOT MORE DIFFICULT
THAN JUST CHANGING CODES.
RETROFITTING LEG LEGACY
BUILDINGS LABORIOUS SITE BY SITE
WORK REQUIRES COMPETENT USUALLY
UNION CONTRACTORS AND TRUSTED
FINANCIAL ANALYST TO QUANTIFY
TRUE COSTS AND PAY BACK.
BUT SINCE 50% OF THE P. JEANNIE
NATURAL GAS COURSE SUPPLY TO
SMALL AND MEDIUM COMMERCIAL
BUSINESSES IS PROVIDED BY CTA'S
LIKE MY COMPANY --
AND BY THE WAY YEAH WE ARE THE
LEADING SELLER IN THAT SPACE.
WE LOSE THAT GAS BUSINESS AT
LEAST GIVE US A CHANCE TO KEEP
IT BY SELLING THEM ELECTRICITY
TO OFFSET THE LOSS ON THE GAS
SEEMS FAIR TO ME.
ARMED WITH THEIR HOURLY IN
MONTHLY USAGE INFORMATION AN
INTIMATE KNOWLEDGE OF HOW AND
WHEN THEY USE ENERGY AND THEIR
FINANCIAL RISK THE CUSTOMER'S
DECISION BE DRIVEN BY TOTAL
ENERGY COSTS.
NOT JUST THE SUPPLY.
AND WE'LL FINANCES BECAUSE WE DO
HAVE THE BALLOT SHE TO DO IT AND
SO DO MY COMPETITORS.
THIRD DELIVERING REAL TIME RATES
TIED THE CHI SO PRICES IS ALSO
ESSENTIAL WHILE THE NEW UTILITY
TERRACE RECOGNIZE THE ENERGY IS
MOST EXPENSIVE FROM FIVE TO NINE
THIS POSTAGE STAMP SIMPLICITY OF
ONE PRICE ACROSS THE PERIOD IS
INSUFFICIENT. TO CHANGE MOST
CUSTOMERS BEHAVIOR.
BECAUSE THE UTILITY AND THE CPUC
CANNOT QUICKLY ENOUGH PROVIDE A
REAL TIME TEAR FROM REAL PRICE
SIGNALS NEED TO SHOW FOR
CUSTOMERS.
TODAY THE CCA SIMPLY COPY
UTILITY RATES LESS ONE OR 2%.
BUT YES P. RATES HAVE TO BE
BASED THIS AGAINST BECAUSE
CLIENTS ACTUAL HOURLY USAGE
THAT'S HOW WE PRICE AND THEN WE
HAVE A COMPETITOR BUSINESS UP ON
MARGIN RIGHT.
GOOD FOR THE CUSTOMER E. S. P.
RATES BASED ON THAT REFLECT THE
TRUE RAMPING COST TO MEET THE
SEVEN PM PEAK AND AN E. S. P. E.
PASSES THROUGH THOSE ON
CONTRACTS ARE MITIGATES THEM
THEMSELVES.
BETWEEN THE PROFIT MOTIVE OF AN
ESP AND THE BUDGET CONTROL MODE
ABOUT THE BUSINESS.
DIRECT ACCESS STRIKES THE RIGHT
BALANCE OF MARKET SIGNALS OF
BUSINESS INTELLIGENCE FINALLY
DIVERSIFIED PORTFOLIO RISK IS
JUST PRUDENT POLICY WE ALL KNOW
THAT A TOP DOWN APPROACH OF
PICKING TECHNOLOGIES OF THE YEAR
AS PRESIDENT PICKER KNOWLEDGE IS
NOT THE RIGHT WAY CREATING
SUBSIDIES IS NOT LONG TERM GOING
TO BE.
THE BEST READ THE READ THE PCI A
TRANSCRIPTS ON HOW WE ARGUED
ABOUT THE PRUDENT SEE OF OF PAST
DECISIONS.
YOU KNOW THAT'S TRUE.
MAGNIFY THE TECHNOLOGY RISK BY
THE GO TO MARKET RISK OF HAVING
ONLY ONE OR TWO ALLOWED ENERGY
SUPPLIERS 485% OF THE MARKET.
MULTIPLY THAT BY THE UNCERTAINTY
OF THE SUSTAINABILITY OF THE CC
A BUSINESS MODEL.
AND YOU HAVE A RECIPE THAT'S NOT
GONNA TASTE VERY GOOD.
FLAVOR THAT WITH THE UNCERTAINTY
OF HOW WHEN AND IN WHAT
CONDITION P. GINNY WILL EXIT
BANKRUPTCY.
AND WHAT THE OTHER UTILITIES
WANT TO DO WITH THEIR
PROCUREMENT FUNCTION.
WHAT YOU CAN CONTROL IS THE
NUMBER OF COMPETITIVE OPTIONS A
CUSTOMER HAS AND THAT
DIVERSIFICATION LIKE A STOCK
PORTFOLIO QUOTING SOMEONE ELSE
IS ESSENTIAL TO LONG TERM
SURVIVAL AND GROWTH?
RELYING ON MULTIPLE ACTORS TO
BRING DE CARBONIZATION TO THE
SCENE I MARKET PLACE SERVES AS A
BACKSTOP TO THE CHANGING
LANDSCAPE.
IN CONCLUSION WE SIMPLY ASK YOU
FOR WHAT I ASKED THE YEAR ON
BOND FOR TWO YEARS AGO.
A TEN YEAR HORIZON TO OPEN UP TO
RIGHT.
SENATOR HERTZBERG. FOUR THOUSAND
IS A GOOD START IN THAT
DIRECTION THE E. S. P. SKILLS OF
DEVELOPING DEPLOYING AND
FINANCING ENERGY PRODUCTS AND
SERVICES TO FULFILL KNOWN RUN NO
NEEDS IS AT THE HEART OF OUR
MISSION.
THINK OF THE S. P. IS AS
MANAGING DEMAND AND DELIVERY
COSTS OF A BUSINESS THERE 45% OF
THE BILL.
WHEN ANY SB HELPS THE CLIENT
LOWER THERE IS USAGE OR DEMAND
TO EARN AS MUCH LOYALTY AS THE
SUPPLY?
AND WHEN THE E. S. P. FINANCES
THOSE RETROFITS THEY ARE
CREATING LONG TERM ASSETS ON THE
GRID TWO D. CARBONIZED THANK YOU
FOR YOUR TIME Q. THANK YOU VERY
MUCH.
MR CUSHIONING.
YES THANK YOU OF OF MARBLE
CHERUB HOW HUESO AND HANNAH
MEMBERS OF THE S. SENATE ENERGY
COMMITTEE APPRECIATE THE
OPPORTUNITY TO BE HERE --
MY NAME IS COLIN CATCHING ON THE
VICE PRESIDENT SOUTHERN
CALIFORNIA EDISON RESPONSIBLE
FOR THE COMPANY'S --
ENERGY PROCUREMENT RULES OF
MARKET OPERATIONS AND THE
LIMITED --
POWER PLANT OPERATIONS THAT WE
HAVE.
WITH THE UTILITY THIRTY TWO
YEARS AND I'VE SEEN A LOT IN MY
RELY ON THAT EXPERIENCE AND SOME
OF THE REMARKS THAT MAKE HERE.
MOST NOTABLY I WAS VERY MUCH
INVOLVED WHEN CALIFORNIA I MOVED
WITH THE B. EIGHTEEN NINETY AND
I'LL REMIND THIS COMMITTEE I
RESPECTFULLY THAT.
A AB EIGHTEEN NINETY MOVED ON A
UNANIMOUS VOTE EVERYONE SUPPORT
IT MAYBE BECAUSE EVERYONE GOT
SOMETHING IN NOBODY'S STEP BACK
IN AND LOOK AT WHAT THE
RAMIFICATIONS COULD BE --
BUT THE REVOCATIONS EXIST TODAY
ALMOST TWENTY YEARS LATER STILL
BEING PAID FOR BY OUR CUSTOMERS.
ACROSS THE STATE AND I WANNA
MAKE SURE THAT THAT DOESN'T
HAPPEN AGAIN --
SO AGAIN MY MY COMMENTS WILL --
WILL FOCUS ON THAT TO A BET --
WE'RE A LOT THIS MORNING AND AND
QUITE FRANKLY DON'T THREE FOUR
MINUTES IS JUST NOT ENOUGH TIME
TO TO REALLY GIVE IT THE OTHER
CONVERSATION IT NEEDS SO INSTEAD
OF THE MADE.
JUST HIGHLIGHT A FEW KEY
PRINCIPLES AND A FEW ISSUES --
THAT I THINK NEED TO BE
ADDRESSED IMMEDIATELY AND I
CERTAINLY WELCOME ANY INVITATION
TO RETURN TO TALK ABOUT THIS IN
MORE DETAIL.
IN ORDER FOR CALIFORNIA TO
ACHIEVE ITS CLEAN ENERGY GOALS
WE HAVE TO DO SO IN A MANNER
THAT MAKE SURE ELECTRICITY IS
AFFORDABLE.
AND RELIABLE FOR ALL CUSTOMERS
ON WHAT I'M HEARING --
RIGHT NOW IS A DISAGGREGATED
MODEL WHERE WE'RE GONNA CREATE --
ELECTRICITY PRODUCTS THAT MEET
CERTAIN CUSTOMERS NEEDS BUT
MAYBE NOT OTHERS.
IN THE GRID AS EVERYONE KNOWS IS
GREATLY INTERCONNECTED THE GREAT
CANNOT OPERATE INDEPENDENT OF
ONE ANOTHER SO THAT IS WHY
CENTRAL PLANNING IS ALSO VERY
IMPORTANT --
SO WE NEED TO MAKE SURE THAT
WHATEVER THE FORUM.
ARE CCA'S OUR E. S. P.'S OUR
INVESTOR OWNED UTILITIES AND TO
THE EXTENT THAT OUR PO USER
CONNECTED TO OTHER KINDS SO --
GRAD THAT WE'RE ALL WORKING IN
CONCERT TO ACHIEVE OUR SHARED
GOALS.
AS A TO DO THIS WE NEED
COMPREHENSIVE AND INTEGRATED --
UP PLANNING PROCESS SB THREE
FIFTY CREATED --
INTEGRATED RESOURCE PLANNING
PROCESS P. --
TO ACCOMPLISH THIS TASK.
HOWEVER THE CCA'S IN HIS PIECE
OF THE CPC OF SOON WHICH WILL BE
MORE THAN 50% OF THE CPC'S
JURISDICTIONAL LOAD.
HAVE BEEN LARGELY RESISTANT --
TO HAVING THEIR I. R. PEAS ARE
AROUND THE PROCUREMENT THAT THEY
WILL DO --
DIRECTLY REGULATED BY THE CPC.
AND THIS IS JUST UNTENABLE OUR
CALIFORNIA'S ELECTRIC GRID NEEDS
TO BE PLAN FOR A THOUGHTFUL
COMPREHENSIVE MANNER.
AND WE NEED TO MAKE SURE THAT
EVERYONE IS OPERATING AGAIN AS I
SAID IN IN CONCERT FOR THE
BETTERMENT OF ALL.
OF THE GRID IT'S NOT THE
INTERNET.
IT'S A COMPLEX MECHANISM.
YOU CAN'T JUST ADD STUFF TO IT
HOPE IT ALL WORKS IT HAS TO BE
BUILT IN THE RIGHT LOCATIONS
WITH THE RIGHT ATTRIBUTES THAT
HAS TO BE OPERATED FOR THE
BENEFIT OF EVERYONE NOT FOR A
FEW.
AND IT HAS TO BE ESSENTIALLY
PLAN TO GET THERE.
SO I I SORT OF TO THE QUESTIONS
THAT I HEARD EARLIER THAT THE
CPC DOES NEED MORE AUTHORITY
OVER OUR E. S. P. ISN'T CCA'S
FOR SOME ENTITY NEEDS MORE
AUTHORITY. TO MAKE SURE THE
COLLECTIVELY ON EVERYTHING
THAT'S BEING DEVELOPED WILL
ACTUALLY MEET OUR NEEDS.
THE AMOUNT OF CENTRAL
PROCUREMENT THAT'S NEEDED I
DON'T HEAR ANYONE DISAGREEING
ABOUT CENTRAL PROCUREMENT THAT
THERE IS A NEED FOR IT.
I'D SAY THE AMOUNT OF SUCH A
PROCUREMENT THAT WE NEED IS
DIRECTLY A FUNCTION OF HOW MUCH
SHE IS PEAS AND CC IS ARE
WILLING TO BE OVERSEEN AND THEIR
RETIREMENT.
IF THEY'RE WILLING TO HAVE A
FAIR AMOUNT OF REQUIREMENTS THEN
THE CENTRAL PROCUREMENT CAN BE
SMALL.
IF THEY WANT TO CONTINUE TO RELY
ON THEIR CITY COUNCILS AND AND
COUNTY SUPERVISOR PORTS TO TOM
WHAT TO BUILD THERE WILL BE
LARGE GAPS TO DEVELOP HONOR
SYSTEM.
AND THE CENTRAL BUYERWILL HAVE
TO DO A LOT OF PROCUREMENT AND
OUT IN THAT ENVIRONMENT AND THAT
WILL BE MUCH MORE EXPENSIVE FOR
ALL OF CALIFORNIA BECAUSE WERE
EFFECTIVELY DOUBLE PROCURING
RESOURCES.
THAT WE COULD HAVE SECURED AT
THE OUTSET OF MET ALL THE NEEDS.
A SIMPLE EXAMPLE I'M IN I'M NOT
SAYING THIS IS HOW IT WOULD HAVE
WORKED OUT BUT WE HAVE CCA'S
RIGHT NOW AND THAT THERE FORMING
IN SANTA MONICA BEVERLY HILLS.
ON BUT IF WE NEED RESOURCES IN
SANTA ANA HER SUPERIA ARE THEY
GOING TO BUILD THE RIGHT
RESOURCES IN THOSE LOCATIONS IF
THEY BUILD THE RESOURCES THAT
THEIR CUSTOMERS WANT.
ALL WILL BE GREAT BE RELIABLE
FOR EVERYONE BUT WE HAVE ROLLING
BLACKOUTS WE BLACKOUT EVERYBODY
EXCEPT FOR SOCIAL SERVICE
CUSTOMERS.
SO IT'S CRITICALLY IMPORTANT
THAT WE WE DON'T PRETEND THAT
SOMEHOW LETS SERVING IDEAS ARE
NOT DIRECTLY CONNECTED TO THE
GRID THAT EXISTS TODAY.
WHO SHOULD BE THE CENTRAL BUYER --
I SUBMIT THE LEGISLATURE'S
ALREADY DECIDED AS THE
LEGISLATURE.
INSTRUCTED --
THROUGH --
SB THREE FIFTY ON THAT THE CPC
INVESTOR OWNED UTILITIES TO DO
RELIABILITY PROCUREMENT SYSTEM
AND LOCAL AND RECOVER THOSE
COSTS ON A NON BY PASSPORT
CHARGE BASIS FROM ALL CUSTOMERS
IT'S CALLED THE CAMERA COST
ALLOCATION.
BACK BACK IN HIS ROOM.
AND THE UTILITIES HAVE DONE
THOUSANDS OF MEGAWATTS
PROCUREMENT SINCE MID LAST
DECADE FOR RELIABILITY IN TWO
THOUSAND FIVE WE HAD A NEAR
ENERGY SHORTAGES.
OF DURING PEAK DEMAND AND
UTILITIES WERE ORDERED BILL
THOUSANDS OF MEGAWATTS OF THE
CAMP.
RECENTLY WITH OUR AGING GAS
FIRED RESOURCES RETIRING ALONG
THE COAST AND BECAUSE OF WANTS
TO COOLING --
REQUIREMENTS OF THE CPC HAS HAS
AT LEAST IN THE CASE OF ASSN
ORDERS TO CONSTRUCT CLOSE TO TWO
THOUSAND MEGAWATTS OF NEW CLEAN
RESOURCES FOR THE MOST PART.
HOW TO REPLACE THOSE OLD GAS
FIRED RESOURCES AND ALL
CUSTOMERS WILL PAY FOR THAT AND
THAT WILL KEEP THE LIGHTS ON?
BUT WE HAVE OTHER ISSUES COMING
UP IN THE NEAR TERM --
EDISON IS RIGHT NOW SOCIALIZING
ANALYSIS WITH CPC STAFF AND CAL
ICE OF STAFF.
pWE WE ARE CONCERNED THAT IS IS
IT AS EARLY AS TWENTY TWENTY ONE
THERE MAY NOT BE ENOUGH CAPACITY
ON THE SYSTEM FOR ALL THOSE
CERVANTES TO MEET THEIR RESOURCE
ADEQUACY CREEK.
AS THE REQUIREMENTS.
OF MAYBE SEVERAL THOUSAND
MEGAWATT SHORT.
OF WE ALSO NEED TO RECOGNIZE
THAT THEPEAK LOAD ON THE SYSTEM
IS SHIFTING TO THE EVENING.
THINK ABOUT SEPTEMBER THE SUN
DOESN'T SHINE IS TWENTY TWENTY
THREE TWENTY TWENTY FOUR THE
PEAK LOAD MAY BE AT EIGHT
O'CLOCK AT NIGHT THERE WILL BE
NO CNTRIBUTION FROM THE
THOUSANDS OF MEGAWATTS OF SOLAR
THAT THE CCA'S ARE CONSTRUCTING.
THAT WILL THAT WILL MEET THAT WE
NEED LOTS OF OTHER THINGS TO
MEET THAT SO IT NEEDS TO BE
SEXUALLY PLANNED IT NEEDS TO BE
DONE AWAY THIS AFFORDABLE
RELIABLE FOR EVERYONE.
SO THESE ARE SOME OF THE ISSUES
THAT NEED TO BE ADDRESSED --
I I WILL FINAL COMMENTS HERE
DURING THE ENERGY CRISIS.
THE THE STATE'S SOLVED A LOT OF
THE ISSUES THATYOU HEARD TODAY
ON FOLKS MAYBE JUST DON'T WANNA
RECOGNIZE THAT IT HAS BEEN
SUCCESSFUL --
THE UTILITIES ARE THE PROVIDER
OF LAST RESORT.
GUESS WHAT UTILITIES SERVE ALL
CUSTOMERS FOR THE WIRES THE
UTILITIES HAVE RELIABILITY
FUNCTION IT MAKES SENSE FOR
UTILITIES TO BE THE PROVIDER OF
LAST RESORT.
UTILITIES DO RELIABILITY
PROCUREMENT --
UTILITIES HAVE BEEN ASKED TO DO
A LOT OF SOCIAL PROGRAMS WE ARE
UTILITIES ARE RESPONSIBLE FOR OF
ABOUT 40% OF RENEWABLE ENERGY IN
CALIFORNIA.
ON THE LARGEST RENEWABLE FULLY
IN THE STATE --
THE YOUNG UTILITIES GO THROUGH
LONG TERM PROCUREMENT PLANTS AND
I ARE PIECE TO MAKE SURE SYSTEMS
A RELIABLE SO THERE'S A LOT OF
THINGS HERE THAT ALREADY EXISTED
THE STATE FIGURED OUT THROUGH
THE ENERGY CRISIS.
SIR IF YOU CAN WRAP UP NOW AND
NOW NOW THE ISSUE IS HOW DO WE
BRING THE CCA'S IN HIS PIECE IN
THE FOLD.
AND RECOGNIZE BEING A C. C. A.
R. E. S. P. AS AN ELECTIVE.
DECISION YOU DON'T HAVE TO BE IS
HE SAID YOU DON'T HAVE TO BE IN
YOUR OF THE GRAD TOGETHER ON
THAT SB FIGHTING ONE ANOTHER ON
THAT THANK YOU.
AND I'M GONNA COME BACK WITH
SOME QUESTION RICK RICK
REGARDING AGGREGATION DOESN'T
CREATE RELIABILITY CONCERNS IN
THE FUTURE.
MAYBE BEGINNING WITH --
MISTER PERRY THEN [inaudible]
I THINK.
DEPENDING ON HOW YOU WANT TO
SOLVE THE PROBLEM --
STATEWIDE AGGREGATOR STATEWIDE
ALREADY ASSUMING WE DID NOTHING
TODAY.
OR T WOULD HAPPEN IN THE FUTURE
WHAT WOULD HAPPEN IN THE FUTURE
UNDER THE CURRENT.
CONDITIONS WELL PART OF THE
CURRENT CONDITIONS ARE TO BE
DETERMINED IN THE PC I A FACE.
TO I DO BELIEVE THERE REALLY A
RELIABILITY CONCERNS I KNOW I
BILL I BELIEVE THAT.
THE UTILITY HAS A BETTER LOAD
FORECASTING TOOL THAT I HAVE
AVAILABLE TO ME ON A CUSTOMER BY
CUSTOMER BASIS RIGHT IF COLIN
SAYS MR CHRISTIAN SAYS THAT WERE
SHORT A COUPLE THOUSAND MAKES IN
THE FUTURE AND WE'RE SHORT
PROBABLY A COUPLE THOUSAND MAKES
IN THE NEAR FUTURE.
WHAT THAT MEANS IT WAS WE HAVE
TO EMPOWER SOLUTIONS WHETHER AND
THE BEAUTY OF CNI IS YOU CAN DO
THOSE SOLUTIONS LOCALLY IF YOU
NEED THEM?
THE ENERGY IN HYSTERIA.
TALK TO THE BUSINESSES IN THIS
AREA WE'RE TALKING YOU'RE GOING
TO BUILD A PLANT IS VERY OR IF I
HAVE A CLIENT IN HYSTERIA I'LL
PUT A PLAN HAS VERY AT THE
CLIENT SITE BECAUSE I CAN WHICH
WHICH COULD TAKE YEARS.
IT TOOK US A YEAR TO PUT A ONE
AND A HALF MAKE A WATCH BATTERY
STORAGE SYSTEM EL CAMINO
HOSPITAL THE LARGEST BATTERY
STORAGE SYSTEM BEHIND THE METER
THAT BEEN INSTALLED AT THE TIME
TWO YEARS AGO.
OKAY.
MISTER CHRISTIAN EVENT YOU FOR
THE QUESTION YES I THE PLANNING
AND PROCUREMENT PROCESS THAT WE
WILL HAVE RELIABILITY ISSUES.
NO ONE LOC IS RESPONSIBLE FOR
EVERYTHING THAT WAS THE PROBLEM
DURING THE ENERGY CRISIS NOBODY
WAS RESPONSIBLE FOR LIABILITY
EVERYONE WAS RESPONSIBLE FOR
PROFITABILITY.
SO WE HAVE A PROBLEM.
VERY BRIEF CENTER VERY BRIEF.
DESCRIPTION A AYE IN YOUR CLEAR
YOU WERE WITH THE COMPANY DURING
THE ENERGY CRISIS WOULD YOU
AGREE THAT ENRON WAS NOT A
UTILITY COMPANY --
ENRON WAS NOT A UTILITY COMPANY
AND HOW DIFFERENT IS THE CCA
THAN ENRON THEY'RE JUST
SUPPORTER OF POWER WHICH YOU'RE
GREAT.
OF THE THAT THE DIFFERENCE THE
DIFFERENCE THAT I I I WOULD I
WOULD MAKE BETWEEN CCA AN ENRON
IS THAT.
YOU'RE CCA'S ARE LOOKING OUT FOR
THEIR COLLECTIVE CITIZENS
INTERESTS JUST LIKE AND ROMS
LOOKING OUT FOR ITS COLLECTIVE
CUSTOMERS AND SHAREHOLDERS
INTERESTS.
BUT THOSE INTERESTS DON'T EXTEND
TO THE GREAT MORE BROADLY THEY
DON'T EXTEND TO ALL THE OTHER
CUSTOMERS.
OKAY WE'RE GONNA COME TO PUBLIC
COMMENT [inaudible]
NOW OF AND IF PEOPLE WANT TO
LINE UP.
ON THE MIKE IF BUT WE'RE GOING
TO BE VERY BRIEF BECAUSE WE ONLY
HAVE A DEPENDS ON HOW MANY
SPEAKERS WE GET WE ONLY HAVE
THREE MINUTES.
AND ANYBODY ELSE --
WE ENCOURAGE YOU TO SUBMIT YOUR
COMMENTS IN WRITING TO THE
COMMITTEE WILL PASS MOPPED
MEMBERS [inaudible]
SIR.
WHAT FOR THE CALIFORNIA MINISTRY
TO LEASE THE STATION
REPRESENTING THE PUBLIC AND
UTILITIES THAT PROVIDE
ELECTRICITY ABOUT 25% OF
CALIFORNIANS?
LOOK FOR TO ENGAGING WITH THE
COMMITTEE ON THIS ISSUE.
RELIABILITY IS PRETTY MUCH JOB
NUMBER ONE FOR OUR MEMBERS IN
ADDITION TO AFFORDABILITY AND
SUSTAINABILITY --
WE OPERATE OUR MEMBERS OPERATE
UNDER A DIFFERENT SET OF
CIRCUMSTANCES SO TO THE EXTENT
THE COMMITTEETHE LEGISLATURE'S
LOOKING AT SOLUTIONS TO THE
PROBLEMS THAT WERE IDENTIFIED
TODAY --
SUCH AS A STATEWIDE CENTRAL
PROCUREMENT AGENCY PROVIDER OF
LAST RESORT WE URGE THE
COMMITTEE TO ACKNOWLEDGE THOSE
DIFFERENT SET OF CIRCUMSTANCES
WE LOOK FORWARD TO WORKING WITH
YOU TOWARDS THAT END THANK YOU.
THE MORNING LISTA BROWN ON
BEHALF OF EAST BAY COMMUNITY
ENERGY SCCA SERVING ALAMEDA
COUNTY ELEVEN OF ITS CITIES --
ONE OF THE THE CONCERNS THE PC
BROUGHT UP WAS WHAT HAPPENS WHEN
RESOURCES ARE BEING FOUGHT LONG
TERM.
AND THAT DOESN'T STACK UP TO
MEET OUR CLIMATE GOALS --
REFLECTS A LACK OF UNDERSTANDING
OF THE PC OF WHAT IS HAPPENING
CCA'S HAVE BEEN RAMPING UP
QUICKLY TO MEET.
THEIR OBLIGATIONS AND A LOT OF
NEW PROCUREMENT IS UNDER WAY
WILL BE ANNOUNCED IN THE COMING
MONTHS WE HAVE INNOVATIVE
PARTNERSHIPS LIKE THE OAKLAND
CLEAN ENERGY INITIATIVE WHERE.
ABC IS PARTNERING WITH P.
JEANNIE TO MEET A RELIABILITY
NEED IN THE DOWNTOWN OAKLAND
AREA.
AND ALLOW FOR THE THE RETIREMENT
OF AN OLD PETER PLANT THERE --
AND WE'RE USING --
WE'RE MAKING INNOVATIVE USE OF
SMART METER DATA IN A WAY THAT'S
NEVER BEEN DONE BEFORE TO DESIGN
RATES WITH AN EYE TOWARDS
ENCOURAGING OF TRANSPORTATION
ELECTRIFICATION AND BUILDING
ELECTRIFICATION IN OUR LOCAL
AREAS.
I WERE ALSO JOININGTOGETHER TO
ISSUE RFPS WHEN IT MAKES SENSE
TO DO SO TO SEGREGATION IS NOT A
PROBLEM PER SE --
CENTRAL PLANNING SHOULD MEAN
TELL US WHAT YOU NEED AND WE
WILL FIND THE OPTIMAL WAY TO
MEET THE REQUIREMENTS THANK YOU
VERY WORDS WORKING WITH THIS
COMMITTEE AND JUST --
IF I COULD MAKE JUST FINAL
COMMENTS THANK YOU'S TO
EVERYBODY THAT PARTICIPATED AND
I I REALLY APPRECIATE.
EVERYONE COMING FORWARD AND
GIVING SOME RECOMMENDATIONS ON
HOW TO HOW TO FIX THE SYSTEM
WHETHER YOU WERE ON ONE SIDE OF
THE ARGUMENT OR THE OTHER I I
THINK THE RECOMMENDATIONS OR PUT
FOR JUST INITIALLY JUST
LISTENING THEM SOUND.
LIKE THEY'RE NOT NECESSARILY --
EXCLUSIVE OR OR AT WORK AGAINST
EACH OTHER I THINK A LOT OF THE
RECOMMENDATIONS OF IMPLEMENTED
TOGETHER CAN ACTUALLY HELP.
OVERALL WITH THIS IN THIS THIS
WOULD THIS RADICAL COARSER OF
WHAT REQUIRE A MORE THOROUGH
DEBATE PUBLICLY BUT I APPRECIATE
THOSE COMING FORWARD.
I I AM VERY CONCERNED LISTENING
TO THE TESTIMONY AS I'VE HEARD
TODAY AND ANOTHER COMMITTEES.
THAT WE DO HAVE SOME PROBLEMS
GOING ON FORWARD AND AND AND AND
UNLESS THERE IS SOME LEVEL OF
LEGISLATIVE INVOLVEMENT.
OR IF --
WITHOUT SOME --
REFORM AND HOW ARE.
ENERGY IS PROCURED AND HOW IT'S
BALANCED AND AND HOW.
WE CAN PROVIDE A LEVELING OF THE
PLAYING FIELD WE'RE GONNA HAVE
SOME RELIABLE BILLY PROBLEMS
GOING FORWARD.
AND WE'RE ALSO GOING TO CREATE A
YOU KNOW A SYSTEM IN OUR STATE
WHERE THERE ARE SOME MORE
FORTUNATE PEOPLE IN SOME AREA OF
THOSE OF THE STATE AND OTHERS
THAT BEAR.
A HIGHER BURDEN WHETHER IT'S
GOING TO BE IN AND LESS
RELIABILITY OR HIGHER RATES.
OR IN SHOULDERING THE COSTS OF
OF OTHER AREAS AND I THINK THAT
IS SOMETHING THAT HAS HAPPENED.
REGULARLY IN CALIFORNIA WHETHER
YOU LOOK AT YOU KNOW HOW WE
CREATECOUNTIES AND CITIES AND
AND SCHOOL DISTRICTS AND AND HOW
WE HAVE IMBALANCES IN PROVIDING
EQUAL OPPORTUNITY TO PEOPLE IN
EDUCATION --
PEOPLE IN HOUSING.
YOU KNOW I JUST HATE TO SEE US
CREATE A SYSTEM THAT'S GOING TO
CREATE INEQUALITY IN ENERGY --
DISTRIBUTION --
TO THE PEOPLE OF CALIFORNIA.
AND THAT MAY THAT MAY BE THE
CURRENT ENVIRONMENT NOW.
BUT IF IT'S GONNA GET WORSE
UNDER THE THE STATUS QUO RIGHT
NOW IF NOTHING IS DONE NOTHING
IS CHANGED IF WE DON'T REALLY
FOCUS ON WORKING TO CREATE.
A SITUATION WHERE WE CAN ADDRESS
OUR OUR SAFETY CONCERNS.
AND AND OUR ARE CLEAN ENERGY
GOALS [inaudible]
OF YOU KNOW WHAT WE'RE GONNA
WORKING AT CREATE A SYSTEM WHERE
WHERE.
ARE YOU YOU ARE CAN YOU CREATE --
YOU KNOW SOME AREAS WHERE AREA
OR ENERGY AS AS CHEAPER AND MORE
RELIABLE AND OTHER IT'S WORSE
NOT [inaudible]
AND I THINK WE REALLY NEED TO DO
SOMETHING TO ADDRESS OFF THIS
YEAR OR IN THE COMING YEARS.
AND AND THIS IS REALLY --
BEEN VERY EDUCATIONAL --
HEARING FOR ME SO THANK YOU
EVERYBODY WHO PARTICIPATED.
AND IF ANYBODY ELSE WISHES TO
MAKE COMMENTS --
I REALLY ENCOURAGE YOU TO SEND.
YOUR REACTIONS IN YOUR COMMENTS
TO MY OFFICE AND WILL DISTRIBUTE
AND TO MEMBERS SO WE CAN HEAR
EVERYBODY'S VOICES.
THANK YOU VERY MUCH AND AND HAVE
A WONDERFUL DAY