THE SENATE COMMITTEE ON ENERGY,
UTILITIES AND COMMUNICATIONS
WILL COME TO ORDER GOOD MORNING.
THE SENATE COMMITTEE CONTINUES
TO WELCOME THE PUBLIC AND HAS
PROVIDED ACCESS TO BOTH IN
PERSON AND TELECONFERENCE
BECAUSE PEIXIAN FOR PUBLIC
COMMENTS WERE HIS EXPERIENCE A
LITTLE BIT OF TECHNICAL
DIFFICULTY, BUT WE'RE GOING TO
STILL PROVIDE THE CALL IN
NUMBERS FOR INDIVIDUALS WISHING
TO PARTICIPATE, AND THE TOLL
FREE NUMBER IS 18662. 8662268.
AND ACCESS CODE IS 736 TO 83 TO
THAT 736 TO 83 TO 4 DAYS HEARING
WILL BE HEARING ALL OF OUR PANEL
WITNESSES ON THE GENDER PRIOR TO
TAKING ANY PUBLIC COMMENT. ONCE
WE HAVE HEARD ALL OUR WITNESSES
, WE WILL HAVE A PUBLIC COMMENT
PERIOD FOR THOSE WHO WISH TO
COMMENT. ON TOPICS OF TODAY'S
AGENDA. OUR HEARING TODAY IS
FOCUSED ON OVERSIGHT OF THE
STATE ENERGY AGENCIES AND
ELECTRIC GRID OPERATOR AND
CALIFORNIA INDEPENDENCE IS
SYSTEMS OPERATOR COYOTES. CASTLE
WHO OPERATES THE GRID FOR THE
MAJORITY OF THE STATE. WE
SPECIFICALLY ARE INTERESTED IN
UNDERSTANDING HOW WE ARE
ENSURING ELECTRIC RELIABILITY
FOR CALIFORNIANS AND HOW LAST
YEAR'S UNPRECEDENTED BILLION
DOLLAR BUDGET ACTIONS HAVE BEEN
IMPLEMENTED THUS FAR. EACH
SUMMER. SINCE 2020. WE HAVE
EXPERIENCED CHALLENGES TO
ENSURING RELIABILITY,
PARTICULARLY IN THE EVENING
HOURS, MOST ACUTELY DURING
EXTREME HEAT EVENTS AND AUGUST
2020 WE EXPERIENCE ROTATING
KNOWLEDGE IS FOR THE FIRST TIME
IN ABOUT TWO DECADES. THESE
CONTROL KNOWLEDGE IS ARE AN
IMPORTANT TOOL TO STAVE OFF
UNCONTROLLED, WIDESPREAD
CASCADING OUTAGES. THOSE
CUSTOMERS WHO DID EXPERIENCE
THOSE ROTATING KNOWLEDGE IS
EXPERIENCE LOSS OF POWER FOR
EIGHT MINUTES TO UP TO TWO HOURS
OR SO. GENERALLY THESE CONTROL
KNOWLEDGE OUTAGES ARE LIMITED TO
16 TO 20 MINUTES PER EFFECTIVE
CUSTOMER. NONETHELESS STYLE TO
JUST RAISE SERIOUS CONCERNS
ABOUT THE ABILITY OF OUR
ELECTRIC GRID TO MAINTAIN
RELIABILITY. JUST THAT WE'RE IN
THE MIDST OF AN ENERGY
TRANSITION TO ZERO CARBON
FUTURE. AN ENERGY TRANSITION
THAT REQUIRES A MORE DIVERSE
GENERATION MIX WITH INCREASING
RENEWABLE ENERGY. SOME OF WHICH
IS VARIABLE AND DOES NOT PRODUCE
DURING THE LATE AFTERNOON AND
EVENING HOURS. RETURN
TRADITIONAL RESOURCES AND
SIMULTANEOUSLY ADOPTING POLICIES
TO INCREASE DEMAND FOR
ELECTRICITY BY ADOPTING POLICIES
THAT INCREASE ELECTRIFICATION OF
TRANSPORTATION AND BUILDING
APPLICATIONS. ADDITIONALLY IN
CALIFORNIA WERE FRAGMENTED THE
PROCUREMENT LANDSCAPE WITH THE
EXPANSION OF COMMUNITY CHOICE
AGGREGATION. AND ELECTRIC
SERVICE PROVIDERS FOR PORTIONS
OF THE LOAD PREVIOUSLY SERVED BY
OUR ELECTRIC INVEST YOUR OWN
UTILITIES. TODAY THERE ARE OVER
40 ENTITIES RESPONSIBLE FOR
PROCURING THE ENERGY RESOURCES
NEEDED TO ENSURE RELIABILITY AND
REACH THE STATE ZERO CARBON
ENERGY GOALS. FOLKS WE'RE FLYING
A PLANE WHILE WE'RE BUILDING IT.
ADDING ADDITIONAL PASSENGERS AND
CHANGING THE FUEL MIX MADE AIR
AS WEATHER FORECAST CONSTANTLY
SHIFT REQUIRING ADJUSTMENTS TO
THE FLIGHT PATH. THIS IS ONE OF
THE CERTAINTIES AND ELECTRIC
UTILITY COSTS ARE ONE OF THE
CERTAINTIES IS INCREASED
ELECTRIC UTILITY COSTS COSTS ARE
TRULY RISING. WHERE WE ARE IN
OUR EFFORTS TO ENSURE
RELIABILITY. WHAT OUR GAME WHAT
IS OUR GAME PLAN TO ENSURE THAT
RELIABILITY REMAINS AT THE
FOREFRONT OF OUR EFFORTS, EVEN
AS WE TRANSITION TO ZERO CARBON
ENERGY AND WORK TOWARDS ENSURING
RELIABILITY WITH THAT BEING
SAID, WE'RE GOING TO INVITE OUR
FIRST WITNESS TO THE PANEL. IT
IS MISS SARAH CORNETTE FROM
LEGISLATIVE ANALYST'S OFFICE AND
FISCAL POLICY ANALYSTS. SO MISS
CORNETTE WHEN YOU'RE READY, YOU
MAY BEGIN.
THANK YOU. SARAH KORNET WITH THE
LEGISLATIVE ANALYST'S OFFICE,
AND I'M JOINED BY MY COLLEAGUE,
ANTHONY SYMBOL. I'LL BE WALKING
THROUGH A HANDOUT THAT YOU
SHOULD HAVE IN FRONT OF YOU.
IT'S ALSO AVAILABLE ON THE
WEBSITE FOR ANYONE FOLLOWING
ALONG, SO WE WERE ASKED TO
PROVIDE AN OVERVIEW OF RECENT
STATE ACTIONS AND INVESTMENTS ON
RELIABILITY. SO TURNING TO PAGE
ONE OF THE HAND OUT THE BUDGET
ACT LAST YEAR ESTABLISHED THE
STRATEGIC RELIABILITY RESERVE,
WHICH INCLUDES THREE PROGRAMS.
THE PRIMARY PROGRAM IS THE
ELECTRICITY SUPPLY, STRATEGIC
RELIABILITY RESERVE OR THE S, R
P. S S. R P PROVIDES BACKUP
POWER AN EMERGENCY EVENTS, AND
IT'S ADMINISTERED BY THE
DEPARTMENT OF WATER RESOURCES,
OR DWR. SO FAR, ACTIVITIES HAVE
INCLUDED PROCURING TEMPORARY
DIESEL GENERATORS, NEW STORAGE
AND REIMBURSING UTILITIES FOR
ADDITIONAL IMPORTS. DWR ALSO IS
ENTERING INTO A NEW CONTRACT TO
EXTEND THE LIFE OF THREE ONCE
THROUGH COOLING GAS PLANTS THAT
WERE SCHEDULED TO RETIRE AND 2.1
BILLION HAS BEEN COMMITTED THIS
FAR AS AS PART OF THE S S. R P
THE SECOND PROGRAM IS A
DISTRIBUTE ELECTRICITY BACK UP
ASSETS PROGRAM. THIS IS STILL IN
DEVELOPMENT BY THE CALIFORNIA
ENERGY COMMISSION AND WILL
PROVIDE INCENTIVES FOR CERTAIN
DISTRIBUTED ENERGY RESOURCES,
SUCH AS FUEL CELLS ARE STORAGE
TO SUPPORT THE GRID AND EXTREME
EVENTS AND THEN FINALLY, THE
DEMAND SIDE GRID SUPPORT PROGRAM
ALSO ADMINISTERED BY THE CSC.
THIS PROGRAM PAYS CUSTOMERS TO
REDUCE THEIR ENERGY USAGE DURING
PEAK HOURS, AND UTILITIES BEGAN
ENROLLING PARTICIPANTS LAST
YEAR. SO TAKEN TOGETHER. THESE
ARE THREE PROGRAMS THAT
REPRESENT PRETTY PRETTY
UNPRECEDENTED LEVELS OF
INVESTMENT ON THE PART OF THE
STATE. AND TURNING TO THE NEXT
PAGE. UM, A COUPLE OF ADDITIONAL
ACTIONS TO HIGHLIGHT THIS. THIS
THE LEGISLATURE EXTENDED
OPERATIONS OR AUTHORIZED AN
EXTENSION OF OPERATIONS FOR THE
DIABLO CANYON POWER PLANT
THROUGH SB 846 OF LAST YEAR.
ALSO THAT BILL ALSO AUTHORIZED A
STATE TO LOAN UP TO 1.4 BILLION.
Tð PEDRIE ANY TO SUPPORT
EXPANDED OPERATIONS THROUGH 2030
. THE ADMINISTRATION EXPECTS 1.1
BILLION OF THAT LOAN WILL BE
REPAID ARE REIMBURSED BY THE
FEDERAL GOVERNMENT. SB 846 ALSO
ESTABLISHED THE CLEAN ENERGY
RELIABILITY, INVESTMENT PLAN, OR
SYRUP, DIRECTED THE C E. C. TO
DEVELOP THIS PLAN WITH THE
INTENT TO PROVIDE 1 BILLION
THROUGH 2026 AND THE RECENT
BUDGET ACT COMMITTED THE 1ST 100
MILLION OF THOSE INVESTMENTS.
YOU CAN SEE THE FULLEST OF
INVESTMENTS HERE. SOME SOME.
SOME OF THE LARGER ONES INCLUDE
FUNDING TO THE CPUC FOR
RENEWABLE ENERGY PROGRAMS AND
FUNDING TO DWR TO SUPPORT A
POTENTIAL NEW CENTRAL PRO.
PROCUREMENT FUNCTION. TURNING TO
PAGE THREE. SOME OTHER
SIGNIFICANT INITIATIVES, THE
CPUC INCREASED ITS PLANNING
RESERVE MARGIN FOR LOAD SERVING
ENTITIES EARLIER THIS YEAR. THE
STATE HAS ALSO UNDERTAKEN
VARIOUS EFFORTS TO SUPPORT
OFFSHORE WIND, INCLUDING
PROVIDING RESOURCES FOR MULTI
AGENCY PLANNING AND AUTHORIZING
THE CSC TO ENTER INTO A MULTI
STATE CONSORTIUM TO DEVELOP
OFFSHORE WIND PROJECTS. AND THE
LEGISLATURE IS ALSO CONSIDERING
LEGISLATION TO GIVE DWR THE
AUTHORITY TO ACT AS A CENTRAL
PROCUREMENT ENTITY FOR LARGE,
LONG LEAD TIME RESOURCES, AND
THIS IS STILL UNDER
CONSIDERATION BY THE
LEGISLATURE. AND FINALLY WE HAVE
ON THE NEXT PAGE SOME KEY ISSUES
FOR YOUR CONSIDERATION AND
QUESTIONS. SO FIRST WHAT? WHAT
RELIABILITY GAPS AND RISKS
CURRENTLY EXIST. ARE THERE NEAR
TERM, UNMET RELIABILITY NEEDS
AND TO WHAT DEGREE? WILL THESE
RECENT INVESTMENTS FILL THE GAP
? SECOND HOW SHOULD THE
LEGISLATURE MONITOR AND EVALUATE
RELIABILITY PROGRAMS HAS A STATE
CLEARLY DEFINED ITS GOALS AROUND
RELIABILITY AND THE LEGISLATURE
HAVE WHAT IT NEEDS TO MONITOR
SUCCESS AND THIRD? HOW EFFECTIVE
ARE THESE PROGRAMS THE STATE HAS
MADE, UM REALLY AN UNPRECEDENTED
INVESTMENTS AND RELIABILITY. ARE
THESE INVESTMENTS PROVING
SUCCESSFUL? AND ARE THESE? THE
MOST COST EFFECTIVE APPROACHES?
FOURTH HOW SHOULD THE
LEGISLATURE BALANCE RELIABILITY
GOALS AGAINST OTHER STATE GOALS
? ENSURING NEAR TERM RELIABILITY
COULD MEAN MORE GREENHOUSE GAS
EMISSIONS IN CERTAIN CASES AND
GREATER IMPACTS ON VULNERABLE
COMMUNITIES AND HIGHER COSTS? SO
WHAT TYPES OF TRADE OFFS IS A
LEGISLATURE COMFORTABLE
ACCEPTING AND HOW SHOULD THE
STATE WAY THEIR VARIOUS IMPACTS
AND PRIORITIES? UM FIFTH? WHAT
WHAT SHOULD THE STATE'S ROLE BE
IN ENSURING RELIABILITY? SO WHAT
ROLE SHOULD THE STATE BE PLAYING
IN ASSISTING UTILITIES? HOW
SHOULD COSTS BE DISTRIBUTED AND
HOW OUR RECENT STATE EFFORTS
IMPACTING THE ENERGY MARKET AND
UTILITIES ABILITY TO ENGAGE IN
IT? AND FINALLY, HOW WELL
RELIABILITY EFFORTS AFFECT
REPAIRS. SO DOES THE
ADMINISTRATION HAVE ESTIMATES
FOR HOW RATES MIGHT BE IMPACTED
BY RELIABLE BY RELIABILITY
EFFORTS. AND ARE THERE STEPS THE
LEGISLATURE MAY WANT TO TAKE TO
MITIGATE THOSE IMPACTS,
ESPECIALLY FOR LOWER INCOME
RESIDENTS AND HAPPY TO TAKE ANY
QUESTIONS? MEMBERS ARE THERE ANY
QUESTIONS FOR THE LEGISLATIVE
AROUND THE OFFICE? I STEERED
DAILY. THANK YOU, MR CHAIR. SO
ON THE CENTRAL PROCUREMENT,
WHICH YOU ALLUDED TO, UH THERE'S
SO WHAT? WHAT IS THAT? THERE HAS
TO BE LEGISLATION THAT ACTUALLY
SETS OUT IN PLACE. IS THAT
CORRECT? THAT'S THAT'S OUR
UNDERSTANDING. YES. SO IN IN IN
IN THE CLEAN ENERGY RELIABILITY
INVESTMENT PLAN, THE COMMITMENT
OF 32 MILLION. UM WE BELIEVE
THAT IS CONTINGENT ON THE
PROPOSAL ACTUALLY BEING ADOPTED,
SO THERE IS LEGISLATION UNDER
CONSIDERATION THAT WOULD GET
THAT WOULD GET DWR THAT
AUTHORITY, BUT, UM, BUT OUR
UNDERSTANDING IS THAT THEY WOULD
NEED THAT LEGISLATION TO BE ABLE
TO DO TO DO SO. AND SO WITH THAT
LEAD WITH THAT LEGISLATION, UM
ALLOW THEM TO BE ABLE TO PROCURE
, UM NOT JUST THROUGH CALLOUS SO
BUT ALSO THE OTHER LOAD BEARING
AGENCIES THAT ARE IN CALIFORNIA
AND OUTSIDE OF CALIFORNIA. UM I
THINK THAT IT WOULD PROBABLY BE
A BETTER QUESTION FOR FREDDY. WR
ALRIGHT? YEAH THANK YOU COMMENT
FOR THOSE OF YOU WHO DWR.
MEMBERS ARE THERE ANY ADDITIONAL
QUESTIONS FOR LEGISLATIVE
ANALYST'S OFFICE? THANK YOU.
WELL, I DO HAVE A QUESTION. I'M
JUST CURIOUS. DO YOU HAVE A
SENSE OF WHAT THE OVERALL COSTS
FOR THE PROGRAMS ADDRESSING
RELIABILITY? NOT JUST WHAT'S
FUNDED RIGHT NOW IN THE STATE
BUDGET. SO YOUR QUESTION IS NOT
NOT JUST THE BUDGET RELIABILITY
PROGRAMS, BUT THE TOTAL EFFORTS.
THAT'S THAT'S ALSO I THINK IT
MAY BE A GOOD QUESTION TO ASK
THE ENERGY AGENCIES YOU KNOW,
WITH THROUGH THROUGH THE STATE
BUDGET, THERE IS ABOUT 3.4
BILLION COMMITTED LAST YEAR. SO
AGAIN THAT'S REALLY
UNPRECEDENTED AND SIGNIFICANT,
BUT IN TERMS OF OTHER COSTS,
IT'S I THINK IT'S IT CAN BE A
LITTLE BIT HARDER TO ASSESS
THOSE JUST GIVEN THAT THERE ARE
SO MANY SO MANY PLAYERS IN THIS
SPACE ALL RIGHT. YEAH SURE.
SENATOR OH, THANK YOU. YOU JUST
MENTIONED THE $3.4 BILLION. CAN
YOU IDENTIFY THE PROJECTS THAT
THOSE ARE DOLLARS? THOSE
TAXPAYER DOLLARS ARE GOING TO
NOW. SURE SO ON PAGE ONE OF THE
HANDOUT, SO THESE INCLUDE THIS
STRATEGIC RELIABILITY RESERVE
PROGRAMS. SO THE PRIMARY PROGRAM
AGAIN AS THE ELECTRICITY SUPPLY
STRATEGIC RELIABILITY RESERVE,
MINISTERED BY DWR. DISTRIBUTE
ELECTRICITY BACK UP ASSETS
PROGRAM IS A SECOND PROGRAM IT
RECEIVED ABOUT 700 MILLION
THROUGH THAT 3.4 BILLION. IT'S
ADMINISTERED BY THE SISI AND
IT'S STILL IN DEVELOPMENT TO
PROVIDE BACKUP ENERGY RESOURCES
AND THEN THIRD, THE DEMAND SIDE
GRID SUPPORT PROGRAM ALSO
ADMINISTERED BY THE CDC. AND DO
WE HAVE, LIKE METRICS OR GOALS
THAT SEE THAT THESE PROGRAMS ARE
WORKING, AND WE'RE ACHIEVING
THOSE GOALS WITH THE SIGNIFICANT
INVESTMENT OF TAXPAYER DOLLARS?
IS IT BEING SUCCESSFUL? NOT
BEING SUCCESSFUL? WELL. AGAIN
YOU KNOW, I THINK I KNOW WE'RE
GOING TO HEAR FROM THE ENERGY
AGENCIES. SO I THINK THAT THIS
COULD BE GOOD QUESTIONS TO ASK
IN TERMS OF HOW THE PROGRAMS ARE
WORKING. BUT AGAIN, THESE ARE
PRETTY NEW PROGRAMS. SO WE THINK
YOU KNOW THOSE ARE GOOD
QUESTIONS FOR YOU ALL TO BE
CONSIDERING IN TERMS OF WHAT ARE
THE HIGHEST PRIORITY NEEDS FOR
THESE PROGRAMS. AND HOW ARE THEY
WORKING THIS FAR? NO ADDITIONAL
QUESTIONS. THANK YOU, AND NOW
WE'RE GOING TO MOVE ON TO OUR
NEXT PANEL IS GOING TO BE THE
CALIFORNIA ENERGY COMMISSION,
CALIFORNIA PUBLIC UTILITIES
COMMISSION DEPARTMENT, WATER
RESOURCES AND CALIFORNIA
INDEPENDENT SYSTEM OPERATOR WE
ALL COME FORWARD AT THIS TIME.
AND WE WILL BEGIN WITH THE CEASE
VICE CHAIR. SIVA GUNDA SO WELL,
WHEN YOU'RE READY, YOU MAY
BEGIN.
GOOD MORNING CHAIR AND SENATORS
ON THE COMMITTEE. THANK YOU SO
MUCH FOR INVITING US TODAY TO GO
THROUGH THIS. WE HAVE A SLIDE
DECK PREPARED AND WE'RE GOING TO
DO THIS COLLECTIVELY BETWEEN THE
FOUR OF US HERE. I WANT TO BEGIN
BY JUST DOING INTRODUCTIONS
CIVIL FOR THE CALIFORNIA ENERGY
COMMISSION FOR RECORD. ALICE
REYNOLDS, PRESIDENT OF
CALIFORNIA PUBLIC UTILITIES
COMMISSION. ELLIOT MAINZER
PRESIDENT SEALER CALIFORNIA IS
SO GOOD MORNING HÌ DEPUTY
DIRECTOR DEPARTMENT OF WATER
RESOURCES. THANK YOU. I WILL NOW
PASSED TO PRESIDENT REYNOLDS TO
JUST START US FOR THE FIRST TWO
SLIDES. GOOD MORNING, SARAH
BRADFORD, VICE CHAIR, DOLLY AND
COMMITTEE MEMBERS. I'M REALLY
PLEASED TO BE HERE THIS MORNING
WITH MY COLLEAGUES ON THE PANEL,
AND WE DO HAVE A SLIDE DECK HERE
. IT LOOKS LIKE WE CAN GO
THROUGH THE SLIDES. OKAY UM,
FIRST I WANTED TO START WITH THE
BIG PICTURE BACKDROP. THE
ELECTRIC SECTOR, AS YOU KNOW,
PLAYS A LARGE ROLE IN
CALIFORNIA'S CLIMATE CHANGE
STRATEGY. WE'RE BOTH WORKING TO
ELECTRIFY THE ECONOMY. AND
DECARBONIZATION, THE GRID THAT
SERVES THE NEEDS OF THE STATE. A
LOT OF PROGRESS HAS BEEN MADE IN
THE ELECTRIC SECTOR AND IN 2021
59% OF THE STATE'S ELECTRICITY
WAS GENERATED BY RENEWABLE IN
ZERO CARBON RESOURCES WITH THIS
MOMENTUM WE'RE NOW WORKING
TOWARDS THE GOALS SET BY THE
LEGISLATURE 90% CLEAN
ELECTRICITY SALES BY 2035 95% BY
20 4100% BY 2045. AT THE SAME
TIME, CLIMATE CHANGE IS CAUSING
UNPRECEDENTED STRESS ON OUR GRID
, EXTREME HEAT, FLOODS AND
WILDFIRES ARE INCREASING IN
FREQUENCY AND INTENSITY AND
THREATENED RELIABILITY. AS WE
TAKE ACTION TO MAKE OUR GRID
MORE RESILIENT TO THESE THREATS
ARE GROWING RELIANCE ON CLEAN
ENERGY WILL ALSO HELP MITIGATE
ONE OF THE MAIN SOURCES OF
GREENHOUSE GAS EMISSIONS IN
CALIFORNIA'S ECONOMY. SO THE
GRID OF THE FUTURE IS ONE THAT'S
CLEAN, SAFE, AFFORDABLE AND
RELIABLE AND WITH CLEAR
STATUTORY DIRECTIVES. IT'S
REALLY NOT A QUESTION OF IF, BUT
IT'S A QUESTION OF HOW WE CARRY
OUT THIS TRANSITION TO OUR CLEAN
ENERGY FUTURE. SO CLEANER ENERGY
CAPACITY HAS TRIPLED IN THE PAST
DECADE, BUT TO PROVIDE 100%
CLEAN ENERGY BY 2045, CALIFORNIA
WILL HAVE TO BUILD AN
UNPRECEDENTED AMOUNT OF NEW
CLEAN ENERGY RESOURCES. BUT WE
SAW THAT IN THE 2021 SB 100
JOINT AGENCY REPORT PROJECTION
OF THE NEED FOR 148,000
MEGAWATTS OF NEW RESOURCES BY
2045. AND FOR COMPARISON, THE
CURRENT HIGHEST PEAK LOAD IN THE
CHICEST SYSTEM WAS JUST OVER
52,000 MEGAWATTS ON SEPTEMBER
6TH 2022. MUCH OF THIS, I AM
WILL BE UTILITY SCALE SOLAR AND
ALSO BATTERY STORAGE, WHICH
AUTOMATICALLY INCREASED
DRAMATICALLY INCREASES THE
AMOUNT OF CLEAN FIRM CAPACITY
AVAILABLE TO GRID OPERATORS.
OTHER POTENTIAL RESOURCES
INCLUDE BIOMASS, GEOTHERMAL
OFFSHORE WIND, LONG DURATION,
ENERGY STORAGE AND ONSHORE WIND.
I'LL NOTE THAT LAST WEEK, THE
AGENCY HAS KICKED OFF THE JOINT
2025 SB 100 WORK TO PREPARE THE
NEXT REPORT PURSUANT TO THAT
STATUTORY DIRECTIVE, THIS
COLLABORATIVE WORK WILL BE
EXPLORING HOW WE CAN CONTINUE TO
ADVANCE TOWARDS A CLEAN ENERGY
GOALS, WHILE OF COURSE,
MAINTAINING RELIABLE AND
AFFORDABLE SYSTEM. SO OVER THE
PAST FOUR YEARS, FIVE YEARS, THE
CPUC S ONE OF THE CPUC S. OH I'M
SORRY. THAT'S THIS IS YOUR
SLIDE. UM ALRIGHT, I AM GOING TO
APOLOGIES ARE TRYING TO MANAGE
THIS JOINTLY WITH THE FOUR OF
US. I'M NOW GOING TO SHIFT TO
VICE CHAIR, GUNDA. THANK YOU,
PRESIDENT REYNOLDS. SO I'M GOING
TO JUST WALK THROUGH THE NEXT
SEVERAL SLIDES HERE, AS WELL AS
PRESIDENT REYNOLDS WAS SHARING.
WE ARE LOOKING AT THE DATA HERE
ON THE SLIDE. THAT'S THE LATEST
. WE'VE JUST RECEIVED THIS
INFORMATION THIS YEAR. SO AS
MENTIONED WE'RE AT 59% 0 CARBON
IN TERMS OF ENERGY USAGE ON THE
BULK GRID. ONE OF THE CRITICAL
RESOURCES THAT WE NEED TO ADD
STORAGE AND WE WENT FROM ABOUT
200 MEGAWATTS IN 2019 5600 AT
THE START OF THIS SUMMER. AND WE
CONTINUE TO ADD MORE STORAGE TO
THE SYSTEM. A FEW HIGH LEVEL
STATS OVER THE LAST DECADE SINCE
2022 THE SOLAR GENERATION
OVERALL HAS SURGED ABOUT 20
TIMES, THE WIND GENERATION HAS
GONE UP BY 63% AND THE NATURAL
GAS USAGE IN TERMS OF THE ENERGY
HAS DECLINED BY 20. BEFORE WE GO
INTO THE RELIABILITY JUST WANT
TO KIND OF SET THE STAGE ON ONE
OF THE KEY TEAMS THAT WE KIND OF
LOOK INTO, WHICH IS THE NET P
CRAMPING NEEDS. SO WHAT YOU'RE
SEEING HERE ON THIS CHART, AND
I'M GOING TO SITUATED ON THE
CHART. THE GREEN LINE IS THE
GROSS DEMAND THAT THE CRISIS
SYSTEM WILL SEE ON ANY GIVEN
DAY. IF YOU GO TO THE CAISO
SYSTEM, THAT'S HOW THE DEMAND
GROWS HOUR BY HOUR, SO ABOUT 4
TO 5 P.M. IN THE MIDDLE OF THE
DAY, YOU WILL HAVE THE MAXIMUM
LOAD THAT THE CAISO WILL SEE
TYPICALLY, AND IT'S KIND OF
MOVING TOWARDS MORE. SIX PM
TIMEFRAME. BUT RIGHT NOW IT'S
ABOUT 5 TO 6. SO WHAT YOU SEE IN
THE PURPLE LINE UNDER UNDERNEATH
THAT IS STEAK THAT DEMAND THAT
KAISER SYSTEM SEES AND REMOVE
ALL THE SOLAR AND WIND
GENERATION. SO THE PURPLE LINE
IS WHAT YOU HAVE TO MANAGE
WITHOUT SOLAR AND WIND ON ANY
GIVEN DAY, AND A SPECIFIC THING
THAT WE WANT TO POINT OUT IS
BETWEEN 12 PM AND EIGHT PM YOU
HAVE THIS LINE JUST KIND OF
GOING ON A SLOPE AND THAT SLOPE
HAS TO BE MET WITH RESOURCES
OTHER THAN WIND AND SOLAR, AND
THAT'S WHERE THE NEED FOR
RAMPING RESOURCES COMES INTO
PLACE. RIGHT NOW. WE HAVE A
STORAGE, PLAYING A CRITICAL ROLE
ON THAT. BUT A LARGE AMOUNT OF
THAT REALLY COMES FROM NATURAL
GAS. SO THAT GOES TO THE NEXT
SLIDE, JUST PROVIDING YOU A HEAT
MAP OF GAS GENERATION NATURAL
GAS GENERATION, TYPICALLY GIVEN
DAY WE'RE LOOKING AT SOME REAL
DATA HERE. AND IF YOU LOOK AT
THE KIND OF THE CHART HERE, THE
ORANGE COLOR AND THE RED COLOR
IS WHERE THE GAS FLEET IS
BURNING THE MOST AND THE REST OF
THE TIME. BUT IT'S GREEN. IT'S
LOW. AS YOU CAN SEE, FIRST OF
ALL, THIS IS A 365 DAY PLOT,
RIGHT? SO YOU HAVE ALL THE ALL
THE DAYS AND ALL THE HOURS OF
THE DAY. SO ON THE VERTICAL AXIS
, YOU HAVE 24 HOURS AND ON THE
HORIZONTAL ACCESS YOU HAVE 365
DAYS OF 2022 SO ONE, THE GAS IS
BURNT MORE IN SUMMER AND TWO.
IT'S BURNED IN THE MORNING HOURS
AND THE EVENING HOURS WHEN YOU
DON'T HAVE THE SOLAR INVENTOR.
AND THAT'S REALLY WHAT WE'RE
LOOKING AT SOLVING AS WE MOVE
FORWARD. NEXT SLIDE, SO THAT
KIND OF SETS THE STAGE FOR SOME
OF THE SUPPORT THAT WE RECEIVED
FROM THE LEGISLATURE. AFTER KIND
OF SHADING SOME OF THESE
CONCERNS, FALLING 2020 A VERY,
VERY HIGH LEVEL. WE FRAMED IT AS
SOME OF THE COMPOUNDING RISKS
THAT WE WERE GOING INTO 2020. WE
WERE RELYING MUCH ON HISTORICAL
DATA WEATHER DATA, SO ANY OF OUR
FORECASTING WAS THE LEADER LYING
ON HISTORICAL DATA AND NOT
TAKING INTO ACCOUNT SIGNIFICANT
CLIMATE CHANGE IMPACT. THAT'S
SOMETHING WE NEEDED TO CORRECT
AS WE MOVE FORWARD. IN 2020. WE
EXPERIENCED EXTREME HEAT, AND
THEN WE QUICKLY HAD TO FIGURE
OUT IF WE ARE GOING TO HAVE
THESE EXTREME EVENTS SO FAR
OUTSIDE THE NORM OF PLANNING.
WHAT DO WE DO WITH THAT? SO AS
WE WENT INTO 2021, WE STARTED
REALLY INCORPORATING SOME OF
THOSE HIGH HEAT SCENARIOS AND
THINKING THROUGH INCREASING
PLANNING RESERVE MARGIN THAT
SOMETHING PRESENT IS GOING TO
TALK ABOUT IN A SECOND. AND
IMPROVE THE PROGRAM. BUT THEN WE
GOT HIT WITH THE SUPPLY CHAIN
ISSUES. SOMETHING THAT WE DIDN'T
SEE. WE GOT HIT WITH DROUGHT. WE
GOT HIT WITH FIRE. SO ON JULY
19TH 2021. WE HAD THIS
INCREDIBLE CATASTROPHIC FIRE IN
BOOTLEG OREGON, WHERE WE GOT
4000 MEGAWATTS OF TRANSMISSION
LINES IN A KNOCKED OUT IN THE
SECOND, AND WE HAD TO DEAL WITH
THAT. SO AS WE LEARNED IN 2020,
2021 AND 2022, WE CONTINUE TO
EVOLVE OUR PLANNING PROCESSES
AND THEN REALLY TRYING TO
INCORPORATE FUTURE LOOKING
PLANNING PROCESS NEXT SLIDE, SO
THAT'S THEN KIND OF COMES TO
LIKE, WHAT ARE WE DOING IN TERMS
OF ACTIONS? WE CAN BROADLY
BUCKET THEM AS 33 KIND OF GROUPS
. ONE IS IMPROVING OUR GRID
PLANNING PROCESSES AT LARGE. SO
THAT INCLUDES IMPROVING
FORECASTING. HOW DO WE TAKE INTO
ACCOUNT CLIMATE CHANGE
PREDICTIONS AND BAKE THEM INTO
FORECASTING? TO HOW DO WE MAKE
SURE WE ARE ACTUALLY DEPLOYING
ENOUGH PROCUREMENT. CPUC IS
GETTING AHEAD OF THAT FORECAST.
SOME OF THE SOME OF THE ISSUES
WITH THE FORECAST IS
HISTORICALLY. BY THE TIME CPUC
START STATE PROCUREMENT PROCESS
, AND BY THE TIME THEY END,
WHICH IS ABOUT 18 MONTHS TO TWO
YEARS, THERE IS A NEW FORECAST.
SO BèC IS BEGINNING TO BUILD
SOME CUSHION INTO THE
PROCUREMENT PROCESS AND FINALLY
IMPROVING THE RESOURCE ADEQUACY
PROCESS. THAT'S ALL HAPPENING ON
THE PLANNING PROCESSES ON
SCALING THE SUPPLY AND DEMAND
RESOURCES IN THE HIGH LEVEL. WE
HAVE AN INTERAGENCY GROUPS THAT
TRACKING PROCUREMENT AND
FIGURING OUT HOW TO SOLVE SOME
OF THE CHALLENGES. WE'VE GOT
SOME SUPPORT ON THE PERMITTING
PROCESS. THERE IS IMPROVED
INTERCONNECTION THAT IT MEANS
THEY'RE GOOD COMMENT ON AND ALSO
PROVIDED THAT WITH SOME MONEY A
BILLION DOLLARS ON THE SETUP TO
KIND OF SET UP WHAT COULD BE A
WAY TO USE A BILLION DOLLARS WE
PROVIDED EARLIER THIS YEAR WHAT
THE INVESTMENT PLAN COULD LOOK
LIKE. AND FINALLY GOING INTO THE
THIRD BUCKET, WHICH WAS REALLY
IMPORTANT IS AS WE CONTINUE TO
DO A TRADITIONAL PLANNING. HOW
DO WE ALSO INCORPORATE A NEW
SETUP, WHICH IS THE EXTREME
WEATHER PLANNING AND WE'LL TALK
ABOUT THE NUANCES OF THAT. THE
REASON WHY WE HAVE TO DO IT. IS
THAT RATEPAYER IMPACT ON
AFFORDABILITY? HOW DO WE MAKE
SURE THE PLANNING IS HAPPENING
TO ALLOW FOR, YOU KNOW,
AFFORDABLE, CLEAN AND RELIABLE
POWER. BUT THEN WE HAVE
ADDITIONAL RESOURCES AS NEEDED
UNDER EMERGENCIES. SO HERE'S A
AMOUNT SLIDE NUMBER 10 JUST
PROVIDING YOU THE THINGS THAT WE
ARE BEGINNING TO INCORPORATE.
HERE'S A HIGH LEVEL CHART ON THE
TEMPERATURE DISTRIBUTION,
SOMETHING YOU WOULD APPRECIATE.
WHAT I'LL TRY TO SET THE STAGE
ON THIS ONE. SO WHAT YOU'RE
LOOKING AT IS THE BLUE LINE IS A
30 YEAR WEATHER INFORMATION AND
THE DISTRIBUTION OF TEMPERATURE.
VERSUS THE ORANGE LINE IS THE
LAST 20 YEARS. SO ALL IT IS, IS
THAT IT'S REMOVING 10 YEARS OF
INFORMATION. WHAT YOU THEN SEE
THERE IS THAT THE 50TH
PERCENTILE IS NOT MOVING THAT
MUCH SO OVERALL, THE MEDIAN
TEMPERATURE IS GROWING SLOWLY,
BUT THE TAILS ARE GROWING
INCREDIBLY LONG. AND AS YOU SEE
THAT THE DISTANCE BETWEEN THE
95TH PERCENTILE WIDENS A LOT,
AND THAT'S THE PROBLEM THAT
WE'RE TRYING TO FIGURE OUT HOW
TO SOLVE. AND THEN THE OTHER
QUESTIONS THAT THE LEGISLATURE
HAS ASKED US TO THINK ABOUT
FUTURE ELECTRIFICATION LOADS.
ONE OF THE KEY ELEMENTS THAT WE
DID WAS REALLY LOOKING AT THE
SCOPING PLAN AND BAKING SOME OF
THE SCOPING PLANS
ELECTRIFICATION TARGETS INTO THE
FORECASTING ADEQUATELY PLANNING
THAT SO TO JUST KIND OF SHOW YOU
THERE IN 2021 THAT THE AUDIENCE
STACKED DATE IS THE 2021
FORECAST. AND THEN THE BLUE ONE
IS THE 2022 AND YOU CAN SEE A
SIGNIFICANT INCREASE IN THE
ELECTRIFIED VEHICLES. LIGHT DUTY
VEHICLE. CALLED IN TERMS OF THE
NUMBER. THAT'S BECAUSE WE ARE
LOOKING FORWARD PLANNING,
WORKING WITH BèC WORKING WITH
CARB TO MAKE SURE WE'RE
ADEQUATELY PLANNING FOR
INCREASED ELECTRIFICATION. NEXT
SLIDE. SO WHAT THAT TRANSLATES
TO, UM ON A WINTER DAY? SO WHAT
ASSURED YOU BEFORE WAS A SUMMER
DAY, AND I JUST WANT TO SHOW YOU
THAT WINTER WINTER ELECTRIC
LOADS ARE COMING. SO WHAT YOU
SEE, HERE ARE TWO THINGS ONE THE
PEAK LOAD. THIS IS 2035. THE
PEAK LOAD NOW IN WINTER IS GOING
TO GO UP TO 50,000 MEGAWATTS.
RIGHT SO THAT'S AN IMPORTANT
ELEMENT RIGHT NOW. YOU KNOW,
IT'S ABOUT 35 AND 30 SOMETIMES
EVEN 25. SO YOU'RE REALLY ADDING
25 MEGAWATTS OF NEW LOAD BECAUSE
OF THE HEATING LOAD FROM THE
BUILDING ELECTRIFICATION AS WELL
AS CHARGING SO YOU'RE LOOKING AT
EARLY MORNING PEAK AS WELL AS
EVENING PEAK. SO IT'S JUST A
CHANGING SYSTEM AND WHAT THE
LAST TWO SLIDES ARE HERE TO SHOW
YOU IS THAT WE ARE ACTIVELY
LOOKING AT ALL THE INFORMATION
AND PLANNING IT PREEMPTIVELY. SO
FINALLY WHAT THAT LED TO SLIDE
NUMBER 13. THIS IS SOMETHING
THAT THE LEGISLATURE ASKED US TO
LOOK INTO. REALLY LIKE LOOKING
AT. HOW ARE YOU GOING TO BAKE
INTO ALL THESE UNCERTAINTIES?
WHAT YOU'RE SEEING HERE IS THE
VINTAGES OF DIFFERENT DEMAND
FORECASTS THAT THE IPCC HAS
DEVELOPED. YOU'RE SEEING 2018
2019 2020. THESE ARE DIFFERENT
VINTAGES. EVERY YEAR WE DEVELOP
A FORECAST, AS YOU CAN SEE, IT
CONTINUES TO REALLY SHIFT UP AND
SLOPE UP. SO WITH ALL THE
ELECTRIFICATION LOADS THAT WE
NOW BAKED IN, 2022 IS THAT MOST
ROBUST, UM, FORECAST THAT TAKES
INTO ACCOUNT BOAT, WEATHER
ISSUES, CLIMATE CLIMATE, EVEN
LONG TERM ISSUES AS WELL AS
ELECTRIFICATION OVERALL FOR THE
ECONOMY, SO I JUST WANTED TO SET
THAT THAT WE ARE TAKING INTO
ACCOUNT ALL THOSE ISSUES. THEN
I'LL PASS IT ON BACK TO
PRESIDENT TUNNELS TO TALK ABOUT
. NOW THAT WE HAVE DONE THE
FORECASTING. THE NEXT STEP IS TO
MAKE SURE WE ACTUALLY PROCURE
FOR THAT FORECASTING AND THEN DO
ADEQUATE TRACKING OF THAT. GREAT
THANK YOU, VICE CHAIR GOING TO,
UM SO OVER THE PAST FIVE YEARS,
ONE OF THE CPUC S TOP PRIORITIES
HAS BEEN TO ORDER THE LOAD
SERVING ENTITIES. SO THESE ARE
ALL THE RETAIL PROVIDERS.
ELECTRICITY THE I O U S THE
CIRCUS AND THE ELECTRIC SERVICE
PROVIDERS TO ORDER THEM TO
QUICKLY BRING NEW CLEAN
ELECTRICITY RESOURCES ONLINE IN
THE NEAR AND LONG TERM. THESE
ARE THE RESOURCES THAT WE NEED
TO DO TO MEET THE DEMAND THAT
BEISTER GUNDHA DESCRIBED TO MEET
INCREASING DEMAND FROM CHANGING
WEATHER PATTERNS AND ALSO HANDLE
INTEGRATION OF LARGE QUANTITIES
OF VARIABLE ENERGY RESOURCES
LIKE SOLAR AND WIND. UM SO
BETWEEN 2019 AND TODAY, THE CPUC
HAS ORDERED A TOTAL OF 18,800
MEGAWATTS. OF NEW CAPACITY TO
COME ONLINE BY 2028. THIS IS THE
LARGEST REQUIREMENT FOR NEW
CLEAN ENERGY RESOURCES IN THE
STATE'S HISTORY AND AGAIN FOR A
SENSE OF SCALE ORPIK AS I
DESCRIBED, THE HIGHEST RATE
SLOWED, WE'VE SEEN 52,000
MEGAWATTS NORMAL HOT SUMMER DAY
ABOUT 40,000 MEGAWATTS. SO AS
THE TABLE IN THE SLIDE SHOWS WE
ORDERED 3300 MEGAWATTS IN
NOVEMBER OF 2019 1,111,005
MEGAWATTS IN JUNE OF 2021 AND
4000 MEGAWATTS IN FEBRUARY. 2023
NEXT SLIDE, PLEASE. CðC. SO ALL
OF THESE RESOURCES I WAS JUST
DESCRIBING ARE THE RESULT OF
CPUC PROCUREMENT ORDERS IN OUR
INTEGRATED RESOURCE PLANNING
PROCEEDING, WHICH IS THE PRIMARY
DRIVER OF GETTING NEW STEEL IN
THE GROUND. SO WHILE THAT
PROCEEDING SERVICE TO IDENTIFY,
PLAN FOR AND POTENTIALLY REQUIRE
PROCUREMENT OF FUTURE RESOURCE
NEEDS FOR RELIABILITY AND
GREENHOUSE GAS EMISSION
REDUCTIONS THE CPSC IS RESOURCE
ADEQUACY PROGRAM IS A PROGRAM
THAT ENSURES THAT THESE NEW
RESOURCES COMBINED WITH EXISTING
RESOURCES AND THOSE IMPORTS THAT
WE CAN GET THROUGH THE WEST RIDE
SYSTEM ARE BEING MADE AVAILABLE
TO CASES ENERGY MARKETS EVERY
DAY AT SUFFICIENT LEVELS TO MEET
OUR PEAK DEMAND. SO THE RESOURCE
ADEQUACY PROGRAM OR ARE A AS WE
CALL IT REQUIRES ALL OF THE CPU
CS JURISDICTIONAL LOAD SERVING
ENTITIES AGAINST CA'S SPS AND I
O. U. S. TO HAVE UNDER CONTRACT
RESOURCES TO MEET THEIR SHARE OF
THE PEAK LOAD BASED ON THE CCS
DEMAND FORECAST AGAIN, WHICH YOU
HEARD FROM ADVICE UGANDA PLUS
PLANNING RESERVE MARGIN OR A P
RM, OF ADDITIONAL RESOURCES THAT
IS SET TO ACHIEVE THE INDUSTRY
STANDARD FOR RELIABILITY, KNOWN
AS THE LOSS OF LOAD EXPECTATION.
UNTIL RECENTLY, MODELING HAD
CONSISTENTLY SHOWN THAT A 15% P
R M WAS SUFFICIENT. IT TOOK US
THROUGH MANY YEARS WITHOUT
RELIABILITY PROBLEMS NOW, THOUGH
, WEATHER PATTERNS AND OUR
RESOURCE MIX HAVE CHANGED, AND
RECENT MODELING INDICATES A NEED
FOR A HIGHER P R. M SO TO THAT
END WE HAVE INCREASED THE P R. M
TO 16% FOR THIS YEAR AND
INCREASE THE PERIOD FOR 17 TO
17% FOR 2024 AND 2025, AND THEN
WE'LL BE EVALUATING. CONSTANTLY
EVALUATING. IF SO, WE'RE LOOKING
FOR THOSE PLANNING STANDARDS
THAT WE NEED TO MEET. AND WE'LL
BE LOOKING AT 2026 IN AND BEYOND
IN THE RESOURCE ADEQUACY PROGRAM
AT THE PUC. RECOGNIZING THAT
THIS MIGHT NOT BE ENOUGH FOR
THOSE EXTREME EVENTS THAT YOU
HEARD ABOUT THOSE TAIL EVENTS
THAT ARE GETTING MORE EXTREME.
EACH YEAR. WE HAVE ALSO ORDERED
INVESTOR OWNED UTILITIES TO
PROCURE AN ADDITIONAL 1700 TO
3200 MEGAWATTS OF RESOURCES,
WHICH REPRESENT AN ADDITIONAL 4
TO 6.5% OF WHAT WE'RE WHAT AN
INCREMENTAL PERIOD. UM, SO THIS
IS WHERE CALLING AN EFFECTIVE
BRM. WHICH BRINGS US TO ROUGHLY
21 TO 23.5. AND THAT'S FOR THE
NEXT THE YEARS OF 2023, 24 AND
25 SO GETTING UP TO A HIGHER
LEVEL WITH THAT EFFECTIVE BRM.
THESE RESOURCES INCLUDE BOTH
SUPPLY, SIDE GENERATION AND
DEMAND RESPONSE, SUCH AS THE
EMERGENCY LOAD REDUCTION PROGRAM
. SO REALLY TAKE TRY AND TAKE
ADVANTAGE, SO EVERYTHING
INCREMENTAL THAT WE CAN ADD TO
THE EXISTING P R. M TO COVER
EXTREME EVENTS. WE HAVE ALSO
MADE SEVERAL MODIFICATIONS TO
STRENGTHEN THE PROGRAM AGAIN.
WE'RE CONTINUING TO EVALUATE,
BUT RECENTLY WE HAVE IMPLEMENTED
SOME CENTRAL PROCUREMENT FOR
LOCALLY CONSTRAINED AREAS TO
MAKE SURE WE HAVE RELIABILITY
AND LOCAL AREAS OR ADOPTING A
PENALTY STRUCTURE FOR FINES TO
UNLOAD SERVING ENTITIES WHO HAVE
DEFICIENCIES IN MEETING THEIR
RESOURCE ADEQUACY REQUIREMENTS.
AND WE'RE DEVELOPING A NEW SLICE
OF DAY PARADIGM, WHICH REALLY
FOCUSES ON MAKING SURE THAT
RESOURCE ADEQUATE CÁC MEETS
EVERY HOUR OF EVERY DAY AND NOT
JUST ONE LEVEL FOR EACH DAY. SO
WE INTEND TO FOR THAT ALL THESE
CHANGES RESORT IN THE RESULT IN
BETTER FORECASTING, PLANNING AND
PROCUREMENT OUT OUTCOME, SO
REALLY TRYING TO STAY AHEAD OF
WHAT WE EXPECT FOR THE FUTURE
NEXT SLIDE. OKAY OUR LOAD
SERVING ENTITIES HAVE ALREADY
BEGUN BRINGING ONLINE A
SIGNIFICANT NUMBER OF NEW
RESOURCES AND COMPLIANCE WITH
THE ORDERS THAT I DISCUSSED ON
THE PREVIOUS SLIDE, SO THIS
TABLE SHOWS A BREAKDOWN OF THE
NEW RESOURCES. WE EXPECT TO COME
ONLINE BETWEEN NOW AND 2026, SO
CONTRACTS ARE BEING EXECUTED AND
THE ONLINE DATES ARE SHOWN IN
THIS SIDE. UM SO THIS IS BASED
ON WHAT ALL OF THE LOAD SERVING
ENTITIES HAVE BEEN REPORTING TO
US ON THEIR UPDATES, WERE
CONSTANTLY TRACKING THE
CONTRACTING AND CONSTRUCTION AND
ONLINE DATES. TO THE MAIN
TAKEAWAY HERE IS THAT MOST OF
THIS NEW CAPACITY IS GOING TO BE
STANDALONE STORAGE AND THEN
HYBRID SOLAR WITH STORAGE
RESOURCES AGAINST STORAGE IS
VERY IMPORTANT WITH ALL THE
RESOURCES AND WHILE THESE
RESOURCES DO CONTRIBUTE TO OUR
ELECTRIC GRID NEEDS AT DIFFERENT
HOURS OF THE DAY BATTERIES AGAIN
CONTRIBUTE TO NEAR TERM
RELIABILITY NEEDS IN THE EVENING
PEAK WHEN THE GRID IS MOST
STRESSED, DEMAND IS THE HIGHEST
AND WIND SOLAR OUTPUT HAS WANED.
UM THE SO THE SOLAR WE'RE USING
TO CHARGE THE BATTERY STORAGE
DURING THE DAY AND THAT SHARED
STORIES. ENERGY JUST GOES RIGHT
BACK INTO THE GRID AT THOSE
CRITICAL TIMES. NEXT SLIDE,
PLEASE. UM THE PACE OF THIS
CLEAN ENERGY DEVELOPMENT IS
SOMETHING THAT WE'RE TRACKING TO
MAKE SURE THAT WE'RE MOVING
QUICKLY. WE DO HAVE AN INTER
AGENCY TASK FORCE THAT'S
TRACKING CONSTANTLY. THESE NEW
PROJECTS. IT'S CALLED THE
TRACKING ENERGY DEVELOPMENT TASK
FORCE, OR TED DEDICATED TO
TRACKING PROGRESS PROJECT. LIKE
PROJECT AND THERE ARE MANY
PROJECTS. UM SO BASED ON
CUMULATIVE TRACKING WE'VE SEEN
OVER 5000 MEGAWATTS OF NET
QUALIFYING CAPACITY. SO THAT'S
THE VALUE TO THE GRID OF THE
CLEAN ENERGY RESOURCES FROM
NEARLY 200 PROJECTS. UM SINCE
JANUARY, 2020 LOOKING AHEAD AT
THE REMAINDER OF 2023, THE LOAD
SERVING ENTITIES ARE REPORTING
TO US THAT WILL BRING OVER 3000
MEGAWATTS OF NEW NET QUALIFYING
CAPACITY DURING THIS CALENDAR
YEAR. UM AND NEXT YEAR WE'RE
EXPECTING AN EVEN BIGGER BUILD
OUT WITH 6000 MEGAWATTS OF NET
QUALIFYING CAPACITY BY BY 2024
SO PACE IS INCREASING. UM AND
THEN I WANT TO MAKE IT CLEAR. I
THINK YOU KNOW, WE'VE BEEN
REALLY ENCOURAGED TO SEE THE
PACE OF DEVELOPMENT OF NEW
PROJECTS. UM BUT THIS IS
UNPRECEDENTED AND CHALLENGING.
AND SO AS THE CHAIR MENTIONED,
IT'S ABOUT BUILDING THE AIRPLANE
AS WE'RE FLYING IN, SO WE'RE
REALLY TRYING TO WATCH THIS
CAREFULLY AND DO EVERYTHING WE
CAN FROM A JOINT AGENCY
PERSPECTIVE. TO MAKE SURE THAT
WE'RE GETTING PROJECTS THAT MEET
THE NEEDS OF THE GRID AND THAT
THOSE PROJECTS ARE BUILT QUICKLY
AND DON'T SUFFER DELAYS. UM SO
THAT'S TAKING A LOT OF CROSS
AGENCY COLLABORATION AND WORK
WITH DEVELOPERS AND ONE ON ONE
WORK WITH THOSE DEVELOPERS AND
LOCAL AGENCIES TO MAKE SURE THE
PROJECTS ARE MOVING QUICKLY WITH
THAT I WILL PASS IT ALONG TO THE
NEXT SPEAKER. THANK YOU. THANK
YOU, PRESIDENT, COLONEL. SO I
THINK WHAT WE TRY TO SET THE
STAGE ON IS STARTING WITH 2020.
WHAT WE OBSERVE IN SOME OF THE
PLANNING DEFICIENCIES THAT WE
HAD. SO WHAT WE'VE BEEN ABLE TO
DO OVER THE LAST COUPLE OF YEARS
IS IMPROVED FORECASTING PROCESS
AND MAKE SURE WE'VE AUTHORIZED
ENOUGH PROCUREMENT. THAT'S THE
FIRST STEP AND THE PROCUREMENT
IF MANIFESTS ON THE SCHEDULE
THAT WE ARE KIND OF PUTTING THEM
OUT, WE WILL MEET THE PLANNING
STANDARDS ADEQUATELY, SO THAT'S
THE FIRST STEP THAT WE WANTED TO
DO. SO NOW WHAT WE'LL TALK ABOUT
HERE IS EVEN IF WE WERE TO MEET
THE PLANNING STANDARDS. WHAT DO
WE DO WITH THE EXTREME EVENTS
AND I WANT TO GO THROUGH THAT IN
JUST A MINUTE HERE, SO THIS IS
WHAT YOU'RE SEEING HERE IN TERMS
OF LONG TERM NEED FOR
CONTINGENCIES. THIS IS BASICALLY
WHEN WE HAVE EVENTS LIKE LAST
SEPTEMBER, SEPTEMBER, 6TH THAT
ARE SO OUTSIDE THE REALM OF
REGULAR PLANNING. SO FOR EXAMPLE
, LAST YEAR ON SEPTEMBER THE
MONTH OF SEPTEMBER, THE AVERAGE
LOAD THAT WAS PREDICTED WAS
ABOUT 45,000. ON ANY GIVEN DAY,
WE WOULD SAY IT MIGHT DEVIATE BY
3000 MEGAWATTS WERE PLANNED FOR
48. THAT DAY. WE HAD 52 ON THE
WAY TO 53 BEFORE THE ACTUAL
ALERT WENT OUT. SO WE'RE TALKING
ABOUT 7 TO 8000 MEGAWATTS
DEPARTURE ON THE KAISER SYSTEM,
WHICH IS ESSENTIALLY ADDING TO A
LADY WPS ON THE TOP OF CASES
SYSTEM THAT WE WERE LOOKING AT
FOR JUST A FEW DAYS, AND OUTSIDE
OF THAT IT WAS COMPLETELY
NORMAL. SO WHAT DO WE DO? SO
WHAT THE STABLE IS SHOWING YOU
IS THOSE EXTREME EVENTS. THE
FIRST THING IS UNDER PLANNING
STANDARDS. WE HAVE NO SHORTFALLS
BASED ON WHAT CPU HAS ALREADY
PROCURED, AND IT ACTUALLY IS IN
SURPLUS IN MANY OF THE YEARS
BECAUSE THEY HAVE BUILT IN A LOT
OF CUSHION, BUT ONCE YOU START
HITTING A 2020 EQUIVALENT EVENT
, WHICH WAS HOW WEST WIDE HEAT
ORDER 2022 EQUIVALENT HE EVENT,
WHICH WAS MORE CALIFORNIA WAS
WESTWARD, BUT MORE CALIFORNIA
HISTORICALLY HIGH HEAT, YOU'RE
TALKING ABOUT SIGNIFICANT
SHORTFALLS. EVEN WITH ALL THE
PROCUREMENT WE'RE DOING, IT'S
ABOUT 3000 MEGAWATTS IN 2030.
THAT'S WHAT WE NEED TO BUILD A
CUSHION FOR FROM NOW TO 2030. SO
THAT THEN GOES INTO WHAT
CONTINGENCIES DOES THE STATE
HAVE. SO WE HAVE ROUGHLY THREE
BUCKETS OF CONTINGENCIES RIGHT
NOW, THE FIRST ONE THANKS TO THE
LEGISLATURE AND THE
ADMINISTRATION FOR PROVIDING US
THE MONEY TO PUT TO DEVELOP THIS
NEW BUCKET OF RESOURCES, WHICH
WE'RE CALLING THE STRATEGIC
RESERVE. IT HAS BROADLY THREE
PARTS. MY COLLEAGUE DELPHINE HÌ
, FROM WHAT IS GOING TO TALK
ABOUT THE FIRST ONE. THE NEXT
TWO ARE ON C C. AND THEN YOU
HAVE CPUC SUPPORTING RELIABILITY
PROGRAMS ON RATEPAYER MONEY AND
THAT'S AN IMPORTANT ELEMENT, AND
FINALLY WE CAN DO SOME VOLUNTARY
REDUCTION. SO FOR EXAMPLE, DWR
IF IT IS POSSIBLE CAN CHANGE
THEIR PUMPING LOAD, AND THAT'S
SIGNIFICANT AMOUNT OF PUMPING
LOAD THAT THEY COULD CHANGE ON
ANY GIVEN DAY. SO THAT KIND OF
TAKES US INTO THE STRATEGIC
RESERVE. I'LL JUST COVER THE
FIRST DOING AND PASS IT TO MY
COLLEAGUE HERE ON THE DEMAND
SIDE CREATES SUPPORT PROGRAM
WHICH WAS PUT IN YES. LAST YEAR
. IT WAS 295 MILLION. IT CAME IN
IN JULY, AND THEN WE WERE ABLE
TO BRING ABOUT 315 MEGAWATTS TO
SUPPORT LAST SUMMER VERY QUICKLY
FOR THE SEPTEMBER EVENT. WE
EXPECT THAT TO CONTINUE TO GROW
AND WE ARE CONTINUING TO CHANGE
THE GUIDELINES TO REALLY MAKE
DEMAND RESPONSE BECOME A
SIGNIFICANT PART OF THAT
PORTFOLIO AND THEN DISTRIBUTED
ENERGY BACKUP ASSETS. THIS WAS
ANOTHER 5 95 MILLION, HAD THE
REASON IT'S GOING TO BE
LAUNCHING IN OCTOBER. 2023
DOESN'T MEAN THAT WE'RE NOT. WE
HAVEN'T BEEN DOING ANYTHING ON
THAT. WE HAVE DONE WHAT
WORKSHOPS INCLUDING STAFF
PRESENTATIONS THAT REALLY TALKED
THROUGH WITH THE DEVELOPERS.
WHAT ARE SOME OF THE BEST IDEA?
SO IN OCTOBER, 2023 WILL BE
FINALIZING GUIDELINES AND COMING
OUT WITH THAT PERSONAL STATIONS.
WITH THAT I'LL PASS IT TO THE
DOLPHIN. THANKS THANK YOU. VICE
TRIGANA DOLPHIN HÌ DEPARTMENT OF
WATER RESOURCES. SO AS VICE,
YOU'RE GOING TO EXPLAIN. THERE
ARE THREE PROGRAMS UNDER THE
STRATEGIC RELIABILITY RESERVE
AND JUST MAYBE SEPARATE THE
LANDSCAPE. THE CCS PROGRAM IS
LARGELY FOCUSED ON DEMAND SIDE
OR DISTRIBUTED RESOURCES,
WHEREAS WRS PROGRAM IS MUCH MORE
FOCUSED ON TRANSMISSION
CONNECTED OR SUPPLY SIDE
RESOURCES, SO JUST TO GIVE YOU A
LITTLE BIT LAYOUT OF THE
DIFFERENCES BETWEEN THE THREE
PROGRAMS AND HOW THEY DO WORK
TOGETHER, SO DWR S ELECTRICITY
SUPPLIES STRATEGIC RELIABILITY
RESERVE PROGRAM PROVIDES
ADDITIONAL ENERGY ABOVE AND
BEYOND THE TRADITIONAL PLANNING
STANDARDS TO ADDRESS THESE
EXTREME EVENTS THAT WE HAVE BEEN
DISCUSSING. IN ADDITION, THE
WATER CODE REQUIRES THAT DWR
PRIORITIZE THESE INVESTMENTS SO
THAT WE ARE NOT COMPETING WITH
THE ELECTRIC GENERATING
FACILITIES THAT ARE ALREADY
PLANNED AND UNDERDEVELOPMENT
FROM LOAD SERVING ENTITIES SUCH
AS THOSE AT THE CPUC, OR LOCAL
PUBLICLY OWNED ELECTRIC
UTILITIES, AND THAT'S VERY
CRITICAL BECAUSE THEY ARE THEY
HAVE A VERY HEAVY LIFT IN TRYING
TO MEET THOSE PLANNING
STANDARDS. IF WE WANT TO MAKE
SURE THAT WE'RE NOT
SIMULTANEOUSLY COMPETING WITH
THEIR PROCUREMENT. UM LASTLY, UM
. THESE UTILITIES HAVE BEEN
RUNNING INTO SEVERAL DELAYS IN
TERMS OF SUPPLY CHAIN DELAYS OR
WHETHER RELATED DELAYS MOST
RECENTLY IN EARLY 2023, SO TO
SUPPORT THE CLEAN ENERGY
TRANSITION, BUT MAINTAIN
ELECTRIC RELIABILITY GWS PROGRAM
WE'VE INVESTED IN FOUR BROAD
CATEGORIES OF ELECTRIC RESOURCES
THAT BALANCE ELECTRIC GRID
RELIABILITY. SO STARTING FROM
THE FIRST COLUMN IN 2022, THERE
WAS 120 MEGAWATTS OF EMERGENCY
AND TEMPORARY NATURAL GAS FUELED
RESOURCES THAT OVER ORIGINALLY
COMMISSIONED 2021, BUT WE'RE
USED AND USEFUL DURING SEPTEMBER
, 2022 TO ADDRESS THAT
SIGNIFICANT RECORD BREAKING HEAT
WAVE. IN ADDITION, DWR WORK VERY
COLLABORATIVELY WITH OUR
COLLEAGUES AT THE CPUC TO FUND
ABOVE MARKET COSTS FOR IMPORTS
WE HAD IN TOTAL IN AGGREGATE OF
CONTRACTS OVER 3300 MEGAWATTS OF
IMPORTS, AND OF THOSE,
APPROXIMATELY HALF CAME IN LOW
OR ZERO GHD ADMISSION RESOURCES.
DWR AS WAS MENTIONED BY ELIO. WE
ALSO TEMPORARILY LEASED DIESEL
FUELED ELECTRIC GENERATORS. THEY
THOSE WERE USED BACK IN
SEPTEMBER, 2022 TO ADDRESS THAT
SIGNIFICANT HEATWAVE. BUT EVEN
THOUGH IN THE WATER CODE, WE
WERE ALLOWED TO USE THAT UP TO
JULY 31ST 2023. WE VOLUNTARILY
DECLINED TO DO SO. AND WE CLOSED
OUT THAT PROGRAM IN OCTOBER,
2022. INSTEAD DWR IS LOOKING AT
INVESTING IN NEW ELECTRIC
GENERATORS WITH LOWER GHG
EMISSIONS PROFILES THAT DON'T
USE WATER. THERE WAS A SIMILAR
MODEL THAT WAS USED AND THEN
PROVIDED TO THE AIR RESOURCES
BOARD THAT ACHIEVED
CERTIFICATION IN THEIR
DISTRIBUTED GENERATION PROGRAM.
AND WHAT THAT MEANS IS THAT THE
GENERATOR HAS LOW ENOUGH
EMISSIONS TO BE EXEMPT FROM AIR
DISTRICT PERMIT REQUIREMENTS. SO
FOR 2023 MOVING INTO THE SECOND
COLUMN WE HAVE ONLINE ALREADY
148 MEGAWATTS OF EXISTING
RESOURCES. WE EXPECT ANOTHER 144
COMING ONLINE FOR A TOTAL OF UP
TO 291 FOR THIS YEAR. IN
ADDITION, AS WAS MENTIONED AFTER
THE PASSAGE OF THE BUDGET ACT OF
2023 DURING THIS LEGISLATIVE
SESSION, WRS AUTHORIZED AGAIN TO
SUPPORT THE ABOVE MARKET COSTS
FOR IMPORTS. AND AGAIN. WE'RE
WORKING VERY CLOSELY WITH OUR
CPUC COLLEAGUES DOING SO AND
PAYING FOR THESE ABOVE MARKET
COSTS REALLY REDUCES THE COST TO
RATEPAYERS FOR THESE IMPORTS.
THIS FAR THE AREAS PROGRAM IN
COLLABORATION WITH THE CPUC
STAFF, WE HAVE BEEN ABLE TO
SUPPORT APPROXIMATELY 200
MEGAWATTS OF IMPORTANT JUNE 300
IN JULY, 900 IN AUGUST, ANOTHER
800 FOR SEPTEMBER WITH MORE
BEING PROCURED AS WELL, SO WE
THINK THAT IS A VERY SUCCESSFUL
PROGRAM THAT IS IN PROGRESS.
MOVING ON TO 2024 IN THE LAST
COLUMN. WE HAVE ALSO BEEN
AUTHORIZED THROUGH THE WATER
CODE TO EXTEND THE OPERATIONS OF
RETIRING FACILITIES AND, AS WAS
MENTIONED IN 2024 DWR CONTRACTED
WITH 2860 MEGAWATTS OF ELECTRIC
GENERATION SOURCES THAT WOULD
HAVE OTHERWISE RETIRED BECAUSE
OF COMPLIANCE WITH THE STATE
WATER BOARDS ONCE THEY'RE
COOLING POLICY. SO DWR TOOK THE
STEP TO CONTRACT WITH THESE
RESOURCES AT THE BEST AND
RECOMMENDATION OF THE STATEWIDE
ADVISORY COMMITTEE ON COOLING
WATER INTAKE STRUCTURES, WHICH
INCLUDES THE EEC, THE PUC AS
WELL AS THE CALYX SO AND
IMPORTANTLY, THE RECOMMENDATION
NOT ONLY ASKED THAT THESE
RESOURCES ARE CONTRACTED BY DWR
FOR THE STRATEGIC RESERVE, BUT
VERY IMPORTANTLY THAT THESE
RESOURCES NOT BE CONSIDERED
RESOURCE ADEQUACY RESOURCES. I
DO WANT TO PUT A FINER POINT ON
THAT DISTINCTION BECAUSE THAT IS
QUITE CRITICAL. REMOVING THESE
RESOURCES FROM RESOURCE ADEQUACY
CHANGES THEIR OPERATIONS
DRASTICALLY. SO LET ME EXPLAIN
THIS WAY. IN THE RESOURCE
ADEQUACY PROGRAM AND AS
PARTICIPANTS IN THE CAISSON
MARKET, THEY HAVE SOMETHING
CALLED A MUST OFFER OBLIGATION
SO THEY MUST OFFER THEIR
CAPACITY TO THE MARKET 24 HOURS
A DAY, SEVEN DAYS A WEEK, AND
THERE'S THE CASE OF NEEDS THE
RESOURCE. THESE RESOURCES WILL
BE RUN. THAT IS THE STATE OF
AFFAIRS TODAY, RIGHT NOW, WITH
THOSE RESOURCES STARTING IN 2024
. WHEN THEY COME TO DWR. THEY
WILL BE HELD IN THE RESERVE AND
THEY WILL BE DEFAULT. OFF. SO
THEY WILL BE OFF UNLESS AND
UNTIL OKAY, SO BELIEVES THERE IS
AN EVENT THAT WOULD WARRANT
TURNING THESE RESOURCES ON TO
ADDRESS AN EXTREME EVENT. THAT
IS A VERY DIFFERENT SET OF
OPERATING PROCEDURES FOR THOSE
RESOURCES, AND IN DOING SO WE
BELIEVE THAT THAT REDUCES THE
USE OF ONCE THROUGH COOLING
WATER AS WELL AS EMISSIONS FOR
THOSE ASSETS, WANTED TO
HIGHLIGHT THAT. IN ADDITION, I
DIDN'T MENTION THIS BUT WE ARE
ROLLING OVER THE 291 MEGAWATTS
FROM THIS YEAR AS WELL. SO THAT
IS WHAT WE'RE LOOKING FORWARD TO
IN 2024. SO WITH THAT I'LL TURN
THIS BACK TO VICE CHAIR, GUNDA.
THANK YOU AND DELPHINE. SO THEN
JUST WE WANT TO END WITH THE
LAST SECTION, WHICH IS HOW IS
THE REST OF THE SUMMER LOOKING?
WE HAVE GONE THROUGH PRETTY
PRETTY WELL. THIS YEAR. WE'VE
HAD A COUPLE OF TIGHT CONDITIONS
THIS YEAR, BUT WE WERE ABLE TO
MANAGE REALLY WELL WITH BOTH.
THE INTERAGENCY COORDINATION WAS
LEADERSHIP ON THAT. SO JUST FOR
THE REST OF THE SUMMER, WE'RE
LOOKING AT SEPTEMBER NUMBERS
HERE. UM, JUST GOING TO DIRECT
YOUR ATTENTION TO THE NEGATIVE
2000 NUMBER AND NEGATIVE 7000
NUMBER AT THE BOTTOM OF THE
TABLE. LAST YEAR WHEN WE WERE
GOING INTO SUMMER, GIVEN THE
CONDITIONS WE WOULD EXPERIENCING
, WE WERE PREDICTING UP TO 7000
MEGAWATT OF POTENTIAL SHORTFALL
, AND THAT'S WHAT WE HAVE
REALIZED ON SEPTEMBER 6TH THIS
YEAR EVEN IF WE WERE TO KIND OF
COME IN THE SAME CONDITIONS,
GIVEN HOW MUCH NEW ENERGY WE'VE
BEEN ABLE TO ADD TO THE SYSTEM,
IT WILL BE ABOUT 2000 AND THOSE
2000 THEN WHAT DO WE DO WITH THE
2000? WE DO HAVE CONTINGENCIES
IN EXCESS OF THAT NUMBER AT THIS
POINT, AND WE'RE CONTINUING TO
BUILD THAT INTO THE INDOOR
CONTINGENCY PLANS. SO WITH THAT
I WILL PASS ON TO PRESIDENT
MAINZER HERE TO CLOSE ITSELF.
THANK YOU VERY MUCH CHAIR
BRADFORD AND VICE CHAIR DOLLY
AND MEMBERS OF COMMITTEE. IT'S A
PLEASURE TO SEE YOU. I'M ELLIOT
MAINZER WITH THIS, THE ESSO AND
JUST A COUPLE OF OBSERVATIONS.
FIRST APOLOGIST FROM THE I
THINK, AS YOU'RE AWARE OF OUR
RESPONSIBILITY AT THE ESSO IS TO
MAINTAIN THE REAL TIME
RELIABILITY OF THE SYSTEM FOR
ABOUT 80% OF CALIFORNIA AND THE
ACTIONS THAT HAVE BEEN DESCRIBED
EARLIER THIS MORNING. THE CORE
IMPROVEMENTS THE RESOURCE
ADEQUACY PROGRAM THE STRATEGIC
RESERVE. THESE ACTIONS HAVE MADE
A MAJOR POSITIVE DIFFERENCE IN
OUR ABILITY TO MAINTAIN
RELIABILITY ON THE GRID, SO
REALLY APPRECIATED ALL THE
TEAMWORK AND COLLABORATIVE
ACTIVITY HERE AND WE'RE GOING TO
KEEP OUR FOCUS. I THINK INTO THE
FUTURE BUT CERTAINLY MADE A
POSITIVE DIFFERENCE THIS YEAR
GOING INTO THE SUMMER ONE OF THE
THINGS THAT WE DO AT THE ISOS,
WE ACTUALLY DO IT TO A CHECK ON
THE AMOUNT OF CAPACITY THAT'S
BEING SHOWN GOING INTO THESE
CRITICAL SUMMER. AMOUNTS AND FOR
AUGUST THIS YEAR, WE ACTUALLY
SAW JUST A VERY SMALL DEFICIT OF
ABOUT 186 MEGAWATTS. WE ACTUALLY
HAVE A MECHANISM IN OUR
TRANSMISSION TARIFF KNOWN AS THE
CAPACITY PROCUREMENT MECHANISM
THAT ALLOWS US TO DO SOME LIGHT
PROCUREMENT OF NECESSARY WE ARE
ABLE TO DO THAT AND CURE THE
DEFICIT AND WE WENT INTO AUGUST
SEXUALLY IN PRETTY GOOD SHAPE,
AND ACTUALLY THROUGHOUT THE
SUMMER. WE'RE FEELING REALLY
QUITE GOOD ONE OF THE THINGS I
WANTED TO SORT OF CONTEXTUALIZE
IS, YOU KNOW IN IT AT THE CASE,
SO WE ARE PART. OF COURSE, IT
MEANS MAINTAINING RELIABILITY
INSIDE THE STATE OF CALIFORNIA,
BUT WE ALSO OPERATE AN ENERGY
MARKET THAT SPAN AND A BIG
PORTION OF THE WEST. IF YOU
THINK HOW IT'S KIND OF AMAZING
TO THINK HOW RAPIDLY CONDITIONS
HAVE CHANGED JUST IN THIS LAST
YEAR. IF YOU THINK BACK TO LAST
SEPTEMBER, PARTICULARLY
SEPTEMBER, 6TH OF 2022. THAT WAS
A DAY WHERE CALIFORNIA HIT ITS
ALL TIME RECORD. DEMAND OF
52,061 MEGAWATTS, ACTUALLY, THE
ENTIRE WESTERN INTERCONNECTION
THAT DAY HIT HIT A RECORD AT THE
TIME. AS YOU RECALL, WE WERE IN
THE MIDDLE OF A VERY, VERY SORT
OF RECORD SETTING DROUGHT IN
CALIFORNIA. AND WE WERE ABLE TO
IMPORT A SIGNIFICANT AMOUNT OF
ENERGY FROM OTHER PARTS OF THE
WEST, PARTICULARLY THE PACIFIC
NORTHWEST IN THE DESERT
SOUTHWEST. NORTHWEST WAS HAVING
A VERY STRONG WATER YEAR THAT
YEAR IN TEMPERATURES WERE HOT
BUT NOT EXTREME. DOWN IN THE
DESERT SOUTHWEST AT THIS THIS
JULY COULD, AMAZINGLY, JUST A
YEAR LATER, CONDITIONS HAVE
CHANGED DRAMATICALLY. THE
PACIFIC NORTHWEST ACTUALLY
HAVING A WELL BELOW AVERAGE
WATER YEAR, LIKE A LOT OF
CANADA'S WATER WAS SORT OF
REDIRECTED INTO THIS YEAR IN
NEVADA THIS YEAR, OF COURSE,
CALIFORNIA RECORD URGED SETTING
SNOWPACK HERE IN CALIFORNIA. I
THINK 244 PERCENT OF AVERAGE AND
TEMPERATURES ACROSS THE COURSE
THE SUMMER SO FAR HAVE BEEN
RELATIVELY MODEST HERE IN IN
CALIFORNIA, BUT IN THE DESERT
SOUTHWEST SORT OF BEEN THE FLIP
SIDE. THEY HAD A 30 DAYS OF
ABOVE 110 DEGREE TEMPERATURES
AND, OF COURSE, A BAD WATER HERE
IN THE NORTHWEST, WHICH HAS
IMPACTED THE BROADER SUPPLY IN
THE WEST, ACTUALLY, ON THE
EVENING OF JULY, 20TH THE
AGGREGATE DEMAND FOR ELECTRICITY
IN THE WEST WAS ROUGHLY
EQUIVALENT. MAYBE ABOUT 96% OF
WHAT WE SAW LAST SEPTEMBER. JUST
THE TABLES WERE TURNED. WE'RE IN
MUCH BETTER POSITION, SO OUR
CONTROL ROLL CENTER OPERATORS.
ON THE EVENING OF JULY. 20TH
ACTUALLY NOTWITHSTANDING THE
DEMAND AND THE HIGH DEMAND OF
THE MARKET WENT INTO THAT
EVENING, FEELING QUITE CONFIDENT
ABOUT ABOUT THE SETUP. YOU KNOW,
WE FELT THAT WE WERE LOOKING
GOOD. BUT INSIDE THE HOURS,
PARTICULARLY BETWEEN ABOUT SEVEN
AND EIGHT PM, REMEMBER THAT'S
THE PORTION OF THE NET PEAK THAT
YOU'VE HEARD MY COLLEAGUES TALK
ABOUT WHERE WE'RE EXPERIENCING,
SOMETIMES AS MUCH AS 5000
MEGAWATTS OF SOLAR RAMPING OFF
THE SYSTEM AT THAT PARTICULAR
HOUR. THAT'S THAT PEAK NET
DEMAND PERIOD. AT THAT TIME WE
EXPERIENCED A SERIES OF SORT OF
CUMULATIVE SUPPLY UNCERTAINTIES
THAT HAPPENED ACROSS THE COURSE
THAT OUR WE HAD A FEW OF THE
BATTERIES KIND OF OFF THEIR
DISPATCH. WE HAD LOWER RENEWABLE
RESOURCE PRODUCTION THAN HAD
BEEN FORECAST. WE HAD A LITTLE
BIT OF TRANSMISSION CONGESTION
ON THE SYSTEM IN JUST SOME OF
THE IMPORTS THAT WE WOULD
NORMALLY SEEN UNDER THOSE
CONDITIONS WERE NOT AVAILABLE
BECAUSE OF THE HIGH DEMAND.
OUTSIDE OF CALIFORNIA. SO WE
ENDED UP ACTUALLY INSIDE THE OUR
HAVING TO LEAN ON OUR OPERATING
RESERVES FOR A SHORT PERIOD OF
TIME THAT TRIGGERED AN E, A ONE
AND ENERGY EMERGENCY ALERT ONE.
WE'RE ABLE TO ACCESS SOME RDR
OUR CAPACITY, RELIABILITY,
DEMAND RESPONSE AND SOME
EMERGENCY LOW REDUCTION PROGRAM
AND WITH AN HOUR WE'RE ABLE TO
WORK WITH THROUGH THOSE
CONDITIONS, BUT IT'S CERTAINLY
POINTED OUT THAT THE GRID
OVERALL WAS IN A FAIRLY, YOU
KNOW, STRESS CONDITION. THERE
WAS QUITE A BIT OF UNCERTAINTY
ON THE SYSTEM. SO FOR THE NEXT
SEVERAL DAYS, WE INCREASED OUR
SUPPLY MARGINS TO MAKE JUST TO
MAKE SURE WE HAD SOME ADDITIONAL
IMPORTS. AND FULL ACCESS TO THE
RESOURCE ADEQUACY CAPACITY INTO
CALIFORNIA ON JULY 25TH AND 26TH
. WE HAD SOME ADDITIONAL
CONTINGENCIES THAT MATERIALIZED
. THINGS WERE A LITTLE BIT
BETTER. WE ACTUALLY DECLARED E A
WATCHES FOR BOTH OF THE EVENINGS
OF THE 25TH AND 26 AGAIN RELIED
ON SOME OF OUR BACKUP RESOURCES
WHICH PERFORMED PERFECTLY AND WE
WERE ABLE TO GET THROUGH THESE
EVENTS WITHOUT ANY SUPPLY
DISTURBANCES AND RELIABILITY
REALLY APPRECIATED THE
COORDINATION COLLABORATION BOTH
INSIDE CALIFORNIA. OF COURSE, WE
HAD TO STAY QUITE CONNECTED WITH
THE FULL OUTSIDE OF CALIFORNIA,
WHO WERE AT THAT TIME STRUGGLING
THROUGH SOME DIFFICULT SUPPLY
CONDITIONS LIKE IF YOU JUST
QUICKLY A FEW OF THE LESSONS
LEARNED COMING OUT OF JULY THAT
I THINK ARE REALLY IMPORTANT.
AND SOME OF THE MEASURES THAT
WE'VE TAKEN JUST TO CONTINUE
FORTIFYING A RELIABILITY AS
WE'VE MOVED TO THE BALANCE OF
THE SUMMER. YOU KNOW, AS AS
WE'VE DISCUSSED, WE HAVE MORE
VARIABLE GENERATION ON OUR
SYSTEM. LOADS ARE BEHAVING IN
NEW AND DIFFERENT WAYS. YOU
KNOW, IT'S A DIFFERENT SYSTEM
THIS YEAR. WE HAVE TWO IMPORTANT
REMEMBER, WE HAVE ONLY WE'RE
GOING TO HAVE ALMOST 7000
MEGAWATTS OF ADDITIONAL
RESOURCES ON OUR GRID. AND EVERY
YEAR WE'RE CHANGING OUR GRID.
THE OPERATING ENVIRONMENT IS
CHANGING. WE HAVE NEW PATTERNS
OF LOAD AND RESOURCE VOLATILITY
. AND SO THERE'S JUST WE'RE JUST
HAVING TO MAKE SURE THAT WE HAVE
A LITTLE BIT MORE OF VÆ BUFFER
OR MARGIN FOR UNCERTAINTY WHEN
WE OPERATE THE GRID EACH HOUR
AND JUST MAKING SURE THAT WE
HAVE FULL ACCESS TO THE RESOURCE
ADEQUACY CAPACITY THAT THE STATE
HAS HAS PAID SO MUCH FOR. IT'S
VERY IMPORTANT. WE ALSO MORNING
WE'VE BEEN DOING A LOT OF
COMMUNICATION AND COORDINATION
WITH THE ADJACENT UTILITIES TO
MAKE SURE THAT THEY'RE NOT
PLACING UNNECESSARY DEMANDS ON
OUR SYSTEM DURING OUR NET PERIOD
WHEN WE'VE JUST GOT A LIMITED
AND FINITE AMOUNT OF CAPABILITY
AND JUST GENERALLY MAKING SURE
THAT THE COORDINATION,
COMMUNICATION AND ACCESS TO
FLEXIBLE SUPPLYING CAPACITY
INSIDE CALIFORNIA. IS AS SOLID
AS IT POSSIBLY CAN BE, AND THAT
THAT COORDINATION WITH THE
ADJACENT UTILITIES ACROSS THE
WEST IS AS STRONG AS POSSIBLE SO
WE CAN MAINTAIN RELIABILITY IN
CALIFORNIA AND ALSO SUPPORT THE
BROADER INTERCONNECTION WITH
WHICH WE HAVE SIGNIFICANT
INTERDEPENDENCE SO AGAIN REALLY
APPRECIATED THE OPPORTUNITY TO
BE HERE TODAY AND ALL THE WORK
THAT'S GOING ON UNDERWAY TO
SUPPORT RELIABILITY. I'M GOING
TO TURN IT BACK TO PRESIDENT
REYNOLDS FOR SOME CLOSING
COMMENTS. GREAT THANK YOU. SO
JUST TO BRIEFLY SUMMARIZE WHAT
YOU'VE HEARD. YOU'VE HEARD ABOUT
CALIFORNIA'S, UM INCREASING
DRIVE TO POWER THE ECONOMY WITH
CLEAN ENERGY RESOURCES, BUT ALSO
SOME OF THE CHALLENGES THAT
WE'VE SEEN. UM WE'RE SCALING UP
CLEAN ENERGY RESOURCES WERE
RETIRING FOSSIL FUEL RESOURCES
AND WE'RE ALSO MAINTAINING GRID
RELIABILITY DURING CLIMATE
CHANGE INDUCED EXTREME EVENTS.
SO EVERY AS YOU'VE HEARD THIS IS
A WORK IN PROGRESS AND ALSO
TAKES A LOT OF CREATIVITY AND
COLLABORATION AND, OF COURSE
PARTNERSHIP WITH THE LEGISLATURE
, AND WE'VE SEEN MANY INSTANCES
OF THAT IN THE PAST. AND
EXPECTED IN THE FUTURE. SO WE DO
HAVE NEW INVESTMENTS AND TOOLS,
SOME OF WHICH WE'VE TALKED ABOUT
TODAY. THIS IS REALLY A
COMPREHENSIVE AND FOCUSED
STRATEGY AND WE'RE GOING TO
CONTINUE OUR EFFORTS SO
CONTINUING TO WORK ON CONSTANT
IMPROVEMENT. UM AND WITH THAT,
I'LL CONCLUDE MY REMARKS, AND
THAT CONCLUDES THE PANEL REMARKS
AND WE REALLY LOOK FORWARD TO
QUESTIONS. THANK YOU. GREAT I
WANT TO THANK ALL OF PRESENTERS
FOR THE INFORMATION HAS BEEN
SHARED WITH US TODAY. BUT BEFORE
WE GO TO MEMBER QUESTIONS I WANT
TO INVITE. UH OUR CALLERS WHO
WANT TO PUBLIC WHO WANTS TO
PARTICIPATE TO CALL IN AND I
WANT TO NOTE. WE HAVE A NEW CALL
IN NUMBER DIFFERENT FROM WHAT
WAS REPORTED EARLIER THIS
MORNING. THE NEW CALL IN NUMBERS
877. 226816. AND PARTICIPATION
CALLED AGAIN IS 736 TO 83 TO
THAT 736 TO 832. NOW WILL BRING
THE DISCUSSION BACK TO OUR
MEMBERS MEMBERS WHO YOU HAVE ANY
QUESTIONS, SENATOR DODD. YOU
HAVE A COUPLE OF QUESTIONS ALL
START JUST DOING MORE THAN THE
TIME HERE IN RESPONSE TO THE
FIRST ONE, AND THEN MOVE ON. SO
IT DOESN'T REQUIRE THE I O U. S.
THE CIA IS THE SP ISPS TO
PROCURE ALL THIS ENERGY,
RESULTING COMPETITION, YOU KNOW,
FOR THOSE RESOURCES AND DOESN'T
THAT INCREASE? THE COST OF IT.
THAT'S I MEAN, IT SOUNDS LIKE
I'M RIGHT, BUT I'M JUST HAVE YOU
FOUND IT OUT. THAT'S TRUE, OR
THAT'S THAT'S GOING WITH THIS.
IT'S A REALLY GREAT QUESTION,
SENATOR AND IT'S SOMETHING THAT
IT'S ONE OF THE BALANCES THAT WE
HAVE TO ACHIEVE. AND IT'S PART
OF WHY WE HAVE BOTH THE
INTEGRATED RESOURCE PLAN PROCESS
AND THEN THE RESOURCE ADEQUACY
PROCESS. SO WHEN WE'RE LOOKING
AT THE PROCUREMENT THAT WE NEED
TO DO THAT'S ABOUT BUILDING NEW
PROJECTS. AND SO WE ACTUALLY
WANT TO HAVE COMPETITION BECAUSE
WE RELY ON PRIVATE GENERATORS TO
SUPPLY THE POWER HERE, RIGHT?
AND SO WE DON'T REGULATE THOSE
GENERATORS. WE NEED TO HAVE
COMPETITION TO MAKE SURE THAT
WE'RE GETTING THE MOST COST
EFFECTIVE PROJECTS SO THOSE
PROJECTS COMPETE FOR CONTRACTS
THEY'RE BUILT, AND THEN THEY'RE
THERE TO SUPPLY ENERGY AND
THEY'RE AVAILABLE FOR RESOURCE
ADEQUACY. WHICH YOU'RE RIGHT.
ALL OF THE SPS PCS AND I, O. U'S
ARE COMPETING FOR THOSE RESOURCE
ADEQUACY PROJECT CONTRACTS, BUT
THE CONCEPT IS IF YOU GET THE
BALANCE RIGHT, THERE'S ENOUGH
AVAILABLE, AND SO THERE'S
ACTUALLY THE COMPETITION
ACTUALLY CAN HELP TO SUPPRESS
PRICES BECAUSE THERE ARE THE
GENERATORS ARE ALL COMPETING FOR
THOSE CONTRACTS. UM, SO THERE'S
A THERE'S AN ISSUE WITH MARKET
POWER, AND WE HAVE TO BE VERY
CAREFUL ABOUT THAT, BECAUSE THE
RATE PAIRS, OF COURSE ARE
CAPTIVE CONSUMERS. AND SO THIS
THIS BALANCE BETWEEN NOT MOVING
TOO QUICKLY, BECAUSE IF WE BUILD
RESOURCES THAT JUST SIT AROUND
AND DON'T DO ANYTHING, WE'VE
WE'VE WE HAVE INVESTMENTS THAT
WE HAVE MADE THAT AREN'T NEEDED
. BUT GETTING THAT BALANCE RIGHT
IS WHY THIS PROCESS IS SO
CHALLENGE TAKES A LOT OF
MODELING AND FORECASTING, BUT
REALLY GREAT QUESTION. SO IF IT
WORKS WELL, THAT COMPETITION IS
HELPFUL TO US. THANK YOU VERY
MUCH. SECOND QUESTION IS, UH,
MADAM PRESIDENT, MR VICE CHAIR.
YOU WERE SIGNATORIES ON A LETTER
ON REGIONALIZATION EARLIER THIS
SUMMER. I AM INTERESTED IN
WHAT'S GOING ON THERE. HOW WAS
THE RECEPTION TO THAT LETTER? I
HAPPEN TO BE A SUPPORTER. OF
THAT CONCEPT HIM IN WHAT YOU
HAVE IN MIND, AND I'M JUST KIND
OF TIMELINE FOLLOW UP. THANK
YOU. I'LL START AND THEN I'LL
TURN TO VICE CHAIR GUNDA AND
JUST FOR BACKGROUND THERE. A
LETTER WAS SENT TO A REGIONAL
GROUP OF REGULATORS IN THE WEST
BY A GROUP OF REGULATORS FROM
THOSE VARIOUS STATES IN THE
WESTERN REGION TO ENCOURAGE A
DISCUSSION AND A WORKING GROUP.
TO EXPLORE OPTIONS FOR GREATER
COORDINATION OF MARKET
COORDINATION AND CONSIDERATION
OF MODELS AND AN ENTITY TO SERVE
AS A REGIONAL TRANSMISSION
OPERATOR. THIS WAS NOT A
COMMITMENT TO DO ANYTHING THIS
EXCEPT TO FORM A WORKING GROUP
TO HAVE DISCUSSIONS AND, UH BUT
IT IS A, UM IT WAS WELL RECEIVED
. I THINK IN RESPONSE TO YOUR
COMMENT IN THAT I THINK THERE'S
A LOT OF INTEREST AND WE IN AND
SHARED INTEREST, AMONG ARE THE
WESTERN STATES IN RELIABILITY
AND AFFORDABILITY. AND SO WE
APPROACHED IT AS AS REGULATORS
HERE IN CALIFORNIA, WE'RE PART
OF AS MR MAINZER INDICATED, WERE
ALREADY PART OF THE WESTERN
MARKET WHERE PART OF A CONNECTED
GRID HOW CAN WE WORK TOGETHER ON
THOSE SHARED GOALS TO GET A MORE
RELIABLE SYSTEM WEST WIDE, UM,
AND TO AND TO KEEP RATES DOWN.
WE'VE SEEN RATE SAVINGS FROM THE
EXPANDED MARKET THAT'S ALREADY
IN PLACE. THE ENERGY IMBALANCE
MARKETS WE HAVE SEEN RESULTS FOR
RAPE PAIRS ARE INVESTOR AND
UTILITIES AND OUR CAUCUS AND
SPS. HAVE MADE INVESTMENTS IN
THE SKY. SO MARKET AND YOU KNOW,
ENJOINING AND BEING A PART OF
THAT. WE WANT TO CONTINUE TO SEE
THE BENEFITS AND NOT SEE THOSE
INVESTMENTS GO TO WASTE BUT ALSO
FIGURE OUT A SMART WAY TO EXPAND
AND IF WE SEE OPPORTUNITIES TO
THEN JOIN A BROADER MARKET FOR
REGIONAL TRANSMISSION OPERATION
SERVICES. WE CAN THEN EVALUATE
THAT ON BEHALF OF CALIFORNIA AND
EXPLORE IT, BUT THIS IS EARLY.
THERE HAVE BEEN A LOT OF
REGIONAL GROUP. THERE'S A
RELATED TO REGIONAL GRID
CONVERSATION. THERE HAVE BEEN A
LOT OF CONVERSATIONS. THIS IS TO
CREATE A FORUM TO LOOK AT. HOW
CAN WE DESIGN A NEW ENTITY AND
THEN TAKE A LOOK AT THAT ENTITY
AND FIGURE OUT WHAT'S RIGHT FOR
CALIFORNIA? I DO WANT TO SAY
THAT. OF COURSE, THIS WOULD BE A
PARTNERSHIP WITH THE
LEGISLATURE. THERE ARE STATUTES
IN PLACE WITH RESPECT TO THE
CASE, SO AND WE DO WOULD LIKE TO
CONTINUE TO COLLABORATE WITH YOU
AND THE EFFORTS. SO EARLY STAGES
BUT PROMISING DISCUSSIONS.
FANTASTIC. THANK YOU. THANK YOU,
HALLIE. THANK YOU, MR CHAIRMAN.
SO FIRST, I WANT TO JUST GO TO
SLIDE BELIEVE IT'S THE SECOND
PAGE. AND YOU HAVE BIOMASS
BATTERY STORIES. GEOTHERMAL
OFFSHORE WIND, LONG DURATION,
ENERGY STORAGE UTILITY SCALE
SCOURGE IN STORAGE AND WENT. I
DON'T SEE HYDRO ELECTRIC IN
THERE. SO THIS IS THE ABILITY
PURPOSE OR THIS IS A NEW BUILD.
SO WE'RE NOT BUILDING ANY MORE
NEW HYDRO. IS WHAT THIS IS
SHOWING. BUT WE HAVE EXISTING
ALMOST 10 GIGS OF HOUSE SO WHEN
SB 100 WAS PASSED, UM, I WAS IN
THE ASSEMBLY AND I WAS ONE OF
THE QUESTIONS ASKED BECAUSE 30
MEGAWATTS AND UNDER ARE
CONSIDERED RENEWABLE 30
MEGAWATTS IN ABOVE OR NOT.
CONSIDER RENEWABLE AND THEY AT
THAT TIME, SAID, LOOK, IT'S ALL
GOING TO BE ON THE TABLE. TO BE
COUNTED. SO IT WHEN YOU LOOK AT
YOUR RPS IF YOU CAN'T COUNT 30
MEGAWATTS AND ABOVE THE
UTILITIES ARE FORCED TO GO
SOMEWHERE ELSE TO GET THEIR
POWER, WHICH IS A LOT MORE
EFFICIENT AND DRIVE THE COST
DOWN IF YOU COUNT THOSE, SO IS
THERE ANY, UH, ANYBODY LOOKING
AT THOSE MEGAWATTS TO MAKE THEM
GREEN POWER ABOVE 30 MEGAWATTS?
SO THEY'RE ACTUALLY ACCESSIBLE
TO THE UTILITIES TO PURCHASE AS
GREEN. SO SV 100, AS YOU NOTE
RECOGNIZE, SAID THE NEW
RENEWABLE PORTFOLIO STANDARD AT
60% THERE'S STILL THE ADDITIONAL
40% TO GET TO, UM, TO GET TO
100% RETAIL SALES, WHICH IS
DESIGNATED AS ZERO CARBON
RESOURCES SO THAT WOULD INCLUDE
HYDRO ELECTRIC ELECTRIC AND
MEETING POINT IS DOES THERE NEED
TO BE LEGISLATION THAT SAYS,
HEY, WE'RE GOING TO INCLUDE 30
MEGAWATTS IN ABOVE AS GREEN
BECAUSE IF WE DON'T ACTUALLY SAY
THAT, AND THERE'S NO POLICY SET,
EVEN THOUGH IT'S AVAILABLE UM
AND SP 100 DID NOT IDENTIFY THAT
IT DIDN'T SAY SAID YES.
EVERYTHING'S ON THE TABLE. BUT
IT DIDN'T IDENTIFY 30 MEGAWATTS
IN A BUCK. SO I'M ASKING, ARE
YOU IS. IS THE AGENCY GOING TO
COUNT THAT AS GREEN OR NOT?
BECAUSE THAT'S REALLY THE
QUESTION THAT'S COUNTED IN THE
BASELINE. UM AND THEN THIS CHART
IS ABOVE AND BEYOND. SO THAT'S
COUNTED IN THE WHAT 59% CLEAN
ENERGY WHERE THAT WE ALREADY ARE
HAVE ACHIEVED IN A ADDING TO
THAT BASELINE. ARE THESE
ADDITIONAL NEWS? HERE TRY TO
ANSWER YOUR I WANT TO MAKE SURE
WE'RE ON THE SAME PAGE. SO YOU
ARE COUNTING 30 MEGAWATTS AND
ABOVE IS GREEN IN YOUR ANALYSIS
RIGHT NOW FOR, UH, SP 100. YES,
SIR. UM, SO WE HAVE AND SB 100
HAS COINED THE TERM ZERO CARBON,
SO WE STARTED OFF ALL RBS
RESOURCES ARE ELIGIBLE FOR THAT.
AND THEN WE ADDED NUCLEAR AND
LARGE HYDRO AS A PART OF THE
SYSTEM. SO THOSE UTILITIES THAT
HAVE THAT HAVE THOSE FACILITIES
ARE COUNTING THOSE IS AS GREEN
ENERGY NOW? YES OKAY. GREAT.
THANK YOU. I'M GLAD TO HEAR
THAT. I WANTED TO THEN, UM GO TO
ONE. I JUST MADE A FEW NOTES
HERE ON SITE. SO ONE OF THE
QUESTIONS I HAD ABOUT THE
BATTERY STORAGE THAT'S COMING
ONLINE AND THAT IS AVAILABLE NOW
. WHAT IS THE DURATION? SO HOW
LONG IF YOU HAVE 6000 MEGAWATTS
? IS THAT FOR? HOW LONG IS IT
FOR AN HOUR? IS IT FOR 20
MINUTES? IS IT FOR WHAT'S THE
TIME FRAME? MOST OF IT TODAY IS
FOUR HOURS. SO YOU HAVE 6000
YEAR PREPARING FOR 6004 HOURS.
THAT'S REALLY 24,000. MEGAWATTS
MY GOD, HOURS, LIKE ONE HOUR.
OKAY THAT WOULD BE THAT WOULD BE
HELPFUL FOR US IF YOU PUT THAT
IN THERE, SO WE KNOW THAT YOU
IT'S NOT FOR HOW LONG BECAUSE,
AT THE END OF THE DAY WHEN WE'RE
STORING THAT ENERGY, WE NEED TO
KNOW HOW LONG IT'S GOING TO LAST
US. AH WHEN WE DON'T HAVE THE
SUN ABSOLUTELY APPRECIATE THAT.
THANK YOU. AND THEN THE LAST
THING ARE ONE OF THE LAST THINGS
I WANTED TO ASK ABOUT IS YOU
KNOW MY CENTRAL PROCUREMENT WITH
DWR AND THE RATE. SO IN IN ALL
THIS INFORMATION THAT WE'VE SEEN
HERE, WE HAVEN'T SEEN ANY
ESTIMATES ON WHAT THE ACTUAL
RATE OR IS GOING TO BE, AND WE
KNOW IT'S GOING TO GO UP OR WE
ASSUME IT'S GOING TO GO UP. BUT
HAS ANYBODY DID AN ANALYSIS ON
WHAT THE RATEPAYERS GOING TO
PLAY? WE PAY? WE HAVE ANALYSIS
OF WHAT THE GENERAL FUND IS
PUTTING IN $3.5 BILLION. I
BELIEVE IT IS ON THE ON THE WAS
THE FIRST PRESENTATION, BUT AT
THE END OF THE DAY, IT'S ONE OF
THE RATES GOING TO BE IN
CALIFORNIA, LONG TERM AND IN THE
FOLLOW UP QUESTION OF THAT IS
WHEN WE DO RELIABILITY AND WE DO
CENTRAL PROCUREMENT, WHICH I
BELIEVE WILL HAPPEN. I KNOW THAT
FOLKS ARE PUSHING FOR THAT. I'M
NOT SOLD ON IT YET. 100% BECAUSE
I'M CONCERNED ABOUT, UM.
CALIFORNIA HAS THE HAS SET THE
BAR REALLY HIGH. I MEAN, 2045,
WE'RE GOING TO BE 100%
RENEWABLE. OTHER STATES HAVEN'T
SO I'M CONCERNED ABOUT THE FACT
OF LEAKAGE. ARE WE? ARE THEY
SUPPLYING GAS POWER PLANTS FOR
THEIR RENEWABLE FOR THEIR
CUSTOMERS AND THEN SELLING US
THERE A GREEN RENEWABLES AND
WE'RE ACTUALLY PAYING A HIGHER
PRICE. BUT WE'RE NOT HELPING THE
ENVIRONMENT THE SAME TIME SO
THERE HAS TO BE SOME
ACCOUNTABILITY AND IF WE'RE
GOING TO PROCURE, UH YOU KNOW,
GREEN ENERGY FROM UTAH. AND
THEY'RE RUNNING POWER PLANTS TO
SERVE THEIR LOAD BY SELLING US
THE GREEN. WE'RE NOT. WE'RE NOT
REALLY GETTING WHERE WE WANT TO
GO. AT THE END OF THE DAY. WE
WANT TO DRIVE DOWN. EMISSIONS
THAT'S THE TOTAL GOAL, BUT
CALIFORNIA IS A MARKET FOR ALL
OF THEM TO SELL INTO AS WE LOSE
JOBS AND THE WORKFORCE HERE IN
OUR STATE, SO I WANT THAT TO BE
ADDRESSED AS WELL. UM I THINK WE
CAN TURN TO OTHERS AS WELL. BUT
ALSO TO ADD TO THAT, AND YOU'RE
RIGHT. IT'S WEST RIGHT SYSTEM,
AND WE HAVE TO THINK ABOUT THE
SUPPLY AND POWER OF POWER BACK
AND FORTH BETWEEN OUR BORDERS.
WE HAVE A LOT OF SOLAR THAT
WE'RE SELLING TO OTHER STATES
AND SO WE'LL CONTINUE TO DO THAT
IN THE MIDDLE OF THE DAY. AS WE
TALKED ABOUT ON MOST DAYS,
CALIFORNIA HAS ACCESS RESOURCES
AND WE'RE SELLING THAT SOLAR
CHEAP SOLAR. SO YOU KNOW, VERY
IN THE MARKET. IT DOES WELL, BUT
I'LL TURN TO OTHER PANELISTS.
YEAH THANK YOU VERY MUCH.
APPRECIATE YOUR QUESTION. VICE
HER DOLLY. SO IN TERMS OF THE
RATE AND THOSE CONSIDERATIONS,
WHAT'S BEEN EXPRESSING THE
TRAILER BILL IS THAT CERTAINLY
IF DWR WERE TO BE ASKED TO DO
CENTRAL PROCUREMENT, ANYTHING
DWR WOULD DO WOULD BE BACK IN
COLLABORATION WITH THE PUBLIC
UTILITIES COMMISSION AND, IN
FACT WOULD HAVE TO PASS THE JUST
AND REASONABLE EXPECTATION.
ASIANS OF THE COMMISSION. SO IF
THE THERE WAS SOLICITATION, AND
THE BIDS CAME BACK, AND THEY
WERE NOT WHAT WAS EXPECTED THEY
DID NOT MEET THE REQUIREMENTS.
CPUC SET FURTHER WAS NOT JUST
UNREASONABLE PURSUANT TO THE
ROOTS. THEN THERE IS NO
OBLIGATION FOR THE CPUC TO TAKE
THAT ON. BUT BUT THE WHOLE POINT
OF THAT BEING THAT IS, WE DO
WANT TO WORK IN PARTNERSHIP. WE
DO WANT TO UNDERSTAND THAT PRICE
DISCOVERY. SO THAT WE CAN MOVE
OUR ENERGY GOALS FORWARD, BUT IT
DOESN'T BIND CALIFORNIA IN ANY
WAY TO HAVE TO TAKE ON A PROJECT
THAT IT DOESN'T FEEL WOULD SERVE
CALIFORNIA APPROPRIATELY, SO ONE
LAST FOLLOW UP COMMENT IN THE
FUTURE. I'LL HAVE ONE MORE YEAR
HERE, SO HOPEFULLY WE'LL SEE YOU
BACK AGAIN NEXT YEAR. WE TALK
ABOUT CHEAP SOLAR. AND BUT
THERE'S A REASON THAT SOUL IS
CHEAP. IT'S REALLY NOT CHEAP,
BUT WE SUBSIDIZE IT THROUGH TAX
CREDITS AND THOSE DIFFERENT
TYPES OF PROGRAMS AND THE
RATEPAYER AND THE TAXPAYER ONE
AND THE SAME. SO IF POSSIBLE, I
WOULD LOVE UH, WHEN YOU COME
BACK TO REPORT AGAIN THAT YOU
TAKE INTO ACCOUNT THE TAX
CREDITS THAT ARE BEING PUT
FORWARD, FOR EXAMPLE. THE
FEDERAL GOVERNMENT IS GONNA
ASSUMING THAT THEY GIVE THE 1.1
BILLION FOR DIABLO CANYON IS
STILL COMING FROM A TAXPAYER.
IT'S COMING. IT IS THE FEDERAL
SIDE. SO I THINK IN YOUR
CALCULATIONS WHEN YOU TALK ABOUT
HEY, WE HAVE ABUNDANCE OF SOLAR
IN CALIFORNIA. THERE IS A REASON
FOR THAT, BECAUSE THERE'S GREAT
TAX CREDITS TO GO WITH IT, SO
THERE'S AN INCENTIVE. BUT IT'S
STILL BEING SUPPLEMENTED BY
FEDERAL TAXPAYER BECAUSE THERE'S
THOSE RESOURCES ARE NOT COMING
INTO THE FEDERAL PART. SO I KNOW
THIS IS COMPLICATED AND NOT EASY
TO DO. BUT IT WOULD BE HELPFUL
FOR THE PUBLIC TO UNDERSTAND
THAT. YEAH IF YOU HAVE THREE
CENTS SOLAR, IT'S REALLY NOT
THREE CENT BECAUSE THERE'S FIVE
CENT TAX CREDIT GOING ALONG WITH
IT. THAT THE WHOLE NATION IS
PAYING FOR SO WE WANT TO
INCENTIVIZE THOSE GOALS TO GET
TO GREEN ENERGY, BUT WE HAVE TO
TAKE INTO ACCOUNT THAT WE HAVE A
MAJOR FEDERAL DEFICIT AND WE
ALSO ARE MAKING WINNERS AND
LOSERS OUT OF DIFFERENT TYPES OF
ENERGY THAT NEEDS TO BE TAKEN
INTO ACCOUNT. THANK YOU, MR
CHAIRMAN, SENATOR GROVE. THANK
YOU, MR CHAIR. THANK YOU ALL FOR
BEING HERE BY SURE. NICE TO SEE
YOU AGAIN. UM I DO HAVE SEVERAL
QUESTIONS. I'D LIKE TO FOLLOW UP
A LITTLE BIT ON WHAT SENATOR DOT
IN SENATOR DOLLY ASKED. NUMBER
ONE, SENATOR DOLLY EXPLAINS
ABOUT THE ACTUAL COST OF SOLAR
AND REPRESENT A COUNTY AT A 58
COUNTIES IN THE STATE THAT
PRODUCES OVER 50% OF THE
RENEWABLE ENERGY THAT THIS STATE
USERS WE HAVE THE BENEFIT OF
HAVING LANDMASS WHERE 6000 ACRES
OF SOLAR CAN TAKE PLACE AND 2
MILLION SOLAR PLANTS. YOU CAN'T
PUT THAT ON SANTA MONICA BEACH
OR IN GARDENA OR ANYWHERE ELSE,
BUT WE HAVE THE BENEFIT OF
HAVING THAT LAND. AND THEN
THERE'S BILLS PASSED THAT FILLER
TEXT EXCLUSIONS, SO WE CAN'T
EVEN GET REVENUE FOR STATE
LIBRARIES AND THINGS LIKE THAT.
WHEN WE ACCESS OUR LAND AND OUR
RESOURCES, WHICH I KNOW IS NOT
UNDER YOUR PURVIEW, BUT IT LEADS
TO THE QUESTION OF ABOVE MARKET
FUNDS AND MEMBER RESIDENT YOU
YOU KEPT ADDRESSING ABOVE MARKET
FUNDS AND THE COST OF REDUCING
THE COST AND MAKING IT EQUITABLE
FOR TAXPAYERS. EXCUSE ME REPAIRS
AND, UM, CAN YOU GIVE ME THE
DOLLAR AMOUNT THAT'S FUNDED
THROUGH THE ABOVE MARKET FUNDS,
AND WHAT I WANT THE PUBLIC TO
UNDERSTAND IS THAT LIKE SENATOR
DALI SAID. WHEN THEY PUT WHEN
YOU ESTIMATE THE COST OF
PRODUCING SOLAR IN THE MEGAWATTS
THAT GIVES CALIFORNIA UNDER WHAT
IS CONSIDERED GREEN TECHNOLOGY
AND GREEN ENERGY. THERE IS ABOVE
MARKET FUNDS THAT PAY THAT COST
DOWN THAT COMES FROM RATEPAYERS
AND TAXPAYERS, WHICH ARE ONE AND
THE SAME REPAIRS AND TAXPAYERS
AT THE END HAVE A REDUCED COSTS
BUT THEIR FRONT LOADING IT IN
THE BEGINNING, SO CAN YOU GIVE
ME THE TOTAL DOLLAR AMOUNT
EXPENDED. UM FOR ABOVE MARKET
FUNDS, AND IS THERE A THERE USED
TO BE AN ABOVE MARKET FUNDS
ACCOUNT? YOU COULD GO TO FIND
OUT HOW MUCH MONEY WAS ACTUALLY
BEING SUBSIDIZED FOR GREEN,
GREEN ENERGY OR SOLAR OR WIND,
BUT THAT ACCOUNT IS NO LONGER
AVAILABLE. SO HOW DO WE FIND OUT
OR HOW DOES THE PUBLIC FIND OUT?
HOW MUCH MONEY IS ACTUALLY BEING
FRONT LOADED TO REDUCE THE COST
OF THEIR RATES. BECAUSE WE'RE
BRINGING ON SOLAR AND WIND OR
GREEN TECHNOLOGY. WE'LL HAVE TO
GET BACK TO YOU WITH THAT
INFORMATION, AND I GUESS I'LL
TRY TO ADDRESS IT AS MUCH AS I
CAN. WE'RE SETTING PROCUREMENT
ORDER BASED ON ATTRIBUTES OF THE
ENERGY THAT WE NEED. AND SO WHEN
THE ROTARY ENTITIES GO OUT WITH
SOLICITATIONS, THEY SET THOSE
PARAMETERS AND THEN THEY GET
BIDS IN AND THEY WILL SELECT THE
LOWEST COST AND WHERE WE WORK
ON. THE MOST COST EFFECTIVE
PORTFOLIOS. SO KIND OF YOU KNOW,
WHAT'S THE OPTIMAL PORTFOLIO OF
RESOURCES? AND THEN ALL OF THE
LOAD SERVING ENTITIES WORK TO
PROCURE CLEANER ENERGY TO MEET
THOSE ARE NEEDS RESOURCE NEEDS.
DOES ANYONE ELSE WANT TO COMMENT
ON THAT IT'S FAR MORE EXPENSIVE
THAN NATURAL GAS AND OIL SO FAR
, SO YOU'RE SUBSIDIZING WITH
TAXPAYER DOLLARS, AND THAT'S THE
NUMBER I'M LOOKING FOR. WE'LL
GET BACK REALIZED THAT YOU'RE
TRYING TO GET THE CHEAPEST OR
THE LOWEST COST OF THE
PRODUCTION AND THE PROCUREMENT.
BUT IT'S STILL BEING SUBSIDIZED
BY TAXPAYER DOLLARS BECAUSE
THAT'S WHERE THE ABOVE MARKET
FUNDS MONEY COMES FROM. CORRECT
SO I'LL HAVE TO GET BACK TO YOU
WITH THOSE DETAILS. UM I'M NOT
SURE THERE MAY HAVE BEEN SOME
CHANGES AND UPDATES, SO WE'LL
MAKE SURE WE GET YOU THE MOST
RECENT INFORMATION, OKAY? AND
JUST BASED ON GENERAL KNOWLEDGE
. IS THERE ANOTHER WAY MONEY
GETS SUBSIDIZED OTHER THAN
TAXPAYERS. AS YOU HEARD FROM
SENATOR DOLLY THEIR FEDERAL TAX
CREDITS. TAXPAYER DOLLARS, RIGHT
SO TAXPAYER DOLLARS FROM FEDERAL
TAX INCENTIVES. UM AND THEN THE
RESOURCES ARE COMPETING WITH
EACH OTHER. WE HAVE SEEN, UM
COST DECREASE SIGNIFICANTLY
SINCE WE STARTED THIS EFFORT
AND, YOU KNOW, 10 YEARS AGO, 15
YEARS AGO. THESE PROJECTS WERE
EXPENSIVE AND NOT COMPETITIVE.
AND NOW THEY ARE COSTS HAVE COME
DOWN QUITE A BIT. OKAY I WOULD.
I WOULD REALLY LIKE THAT
INFORMATION, AND I LIKE IT
SPECIFICALLY FOR CALIFORNIA. NOT
REALLY INTERESTED IN THE FEDERAL
PIECE OF IT, BUT JUST ABOUT
CALIFORNIA TAXPAYERS AND WHAT
THEIR CONTRIBUTION IS TO THE
ABOVE MARKET FUND DOLLARS. IF
THAT MAKES SENSE, OKAY, LIKE TO
GO THROUGH YOUR PRESENTATION, IF
YOU GUYS IF YOU DON'T MIND, I
DID HAVE A QUESTION ON THE HYDRO
PIECE ON THE SLIDE NUMBER THREE.
I GUESS IT IS. UH I WAS CURIOUS
AGAIN, BUT MY COLLEAGUE ASKED.
THAT QUESTION WAS WHERE IT
WASN'T THERE, AND I AM STILL
CURIOUS BECAUSE IT'S ALL ABOUT
THE REDUCTION OF EMISSIONS, AND
THERE'S A NEW FACILITY IN OUR
AIRPORT AGAIN. NOT UNDER YOUR
PURVIEW, BUT IT DOES ALLOW HYDRO
PLANES TO BE ABLE TO FLY SHORT
DISTANCES. 500 MILES, BUT EVEN
IF YOU TAKE YOU KNOW THE REGULAR
FUEL THAT COMES OFF OF A PLANE
AND IT REDUCES THE EMISSIONS AND
USE THIS HYDRO NEW TECHNOLOGY,
AND IT REDUCES EMISSIONS BECAUSE
IT'S ZERO EMISSIONS. WHY AREN'T
WE INVESTING IN LOOKING AT
HYDRO? AND WHY IS THAT NOT PART
OF THE PORTFOLIO? THANK YOU,
SENATOR GROVE ECSTASY AS WELL,
JUST ON THE SETTING THE STAGE ON
THE SLIDE, SO THIS IS JUST
INCREMENTAL TO WHAT WE HAVE
ALREADY IN CLEAN ENERGY
RESOURCES, THE WAY THE SP 100
THE FIRST REPORT WAS DONE WAS
PURELY COST BASED, SO WE LOOKED
AT THE DIFFERENT ATTRIBUTES.
THIS INCLUDES ALL RPS ELIGIBLE
TECHNOLOGIES PUMPED HYDRO, LARGE
SCALE HYDRO AND WE DID NOT
INCLUDE NUCLEAR BECAUSE WE HAVE
THAT CONSTRAINED IN CALIFORNIA.
SO WHEN YOU PUT THAT AND THEN
YOU SAY THIS IS THE DEMAND, I
WANT TO MEET WITH THE LEAST COST
RESOURCES. THIS IS THE PORTFOLIO
THAT YOU KNOW THAT WE GET AT THE
END OF THE DAY. SO TO YOUR POINT
SPECIFICALLY IF WE LOOK AT THE
BROWN ONE IN THERE, WHICH IS THE
LONG DURATION ENERGY STORAGE
THAT IS ALSO A PROXY FOR PUMPED
HYDRO, SO WE MODELED, PUMPED
HYDRO AS A PART OF THAT LONG
DURATION ENERGY STUDIED, SO WE
DO HAVE SOME HYDRO RESOURCES
HERE IN TERMS OF PUMPED HYDRO,
BUT LARGE SCALE HYDRO PROJECTS
HAVE NOT BEEN PICKED UP FOR THE
ON COST BASIS. THANK YOU WHEN
YOU TALK ABOUT YOUR BATTERY
STORAGE, AND SENATOR DOLLY ASKED
THAT QUESTION AND IT'S ABSTAINED
OR A SUSTAINS A FOUR HOUR CHARGE
. WHEN YOU TALK ABOUT BATTERY
STORAGE. ARE YOU GUYS
CONSIDERING ETHICAL SOURCE OF
BATTERY STORAGE? YOU DON'T
CONSIDER THE ETHICAL SOURCE.
THANK YOU, SENATOR OF YOU. YOU
RAISED THIS PREVIOUSLY AS WELL.
SO AS A PART OF THE 2025 SB 100
REPORT ONE OF THE THINGS WE HAVE
BEEN ASKED IN A BOAT BY THE
LEGISLATURE LIKE YOU, BUT ALSO
THE ENVIRONMENTAL JUSTICE
COMMUNITIES IS LOOKING AT SOME
OF THOSE QUALITATIVE NON ENERGY
BENEFITS SLASH IMPACTS, AND
THAT'S SOMETHING WE'RE GOING TO
TRY AND DOING THE 2025 MORE
QUALITATIVELY. SO THE REASON I
ASKED THAT QUESTION. OBVIOUSLY
IT'S IMPORTANT TO ME, AND IT'S
ALSO IMPORTANT TO THE CHAIR OF
THIS COMMITTEE AS A RESOLUTION
TO CONSIDER ETHICAL SOURCES OF
COBALT THAT COMES FROM THE
DOMINICAN REPUBLIC OF DOMINICAN
REPUBLIC OF CONGO, DOMINICAN
REPUBLIC OF THE CONGO AND SLAVE
LABOR, CHILD LABOR, BUT THEY'RE
PROMOTING GREEN TECHNOLOGY HERE
IN CALIFORNIA, SO I JUST WANT TO
MAKE SURE THAT AGENCIES AND I DO
PLAN ON BRINGING IT UP ON
ADDITIONAL ANYTIME I CAN BRING
IT UP. THAT WE CAN'T PURSUE
GREEN TECHNOLOGY AND MOVE
FORWARD AS FAST AS WE ARE BY
DESTROYING OTHER COUNTRIES,
SPECIFICALLY, THIRD WORLD
COUNTRIES THAT WE HAVE TO SECURE
AN ETHICAL SOURCE OF ENERGY,
WHETHER IT'S OIL AND GAS OR
COBALT, BATTERY STORAGE, THOSE
THINGS AND I'M VERY INTERESTED
IN THE END OF LIFE PROCEDURES OF
THOSE THINGS AS WELL. SO THANK
YOU FOR THAT, UH, MR. MEANS ER
IS IT MEANS ER YES. I HAVE HAD
THE HONOR OF GOING TO THE
KALLIAS. SO I DO NOT ENVY YOU IN
ONE OUNCE. I THINK IT'S AN
INCREDIBLE OPERATION THAT YOU
HAVE THERE. UM I DO. I THINK
YOUR JOB IS SO IMMENSELY.
UNDERAPPRECIATED. AND THE REASON
WHY I SAY THAT IS BECAUSE ALL
THESE PROCUREMENT AND EVERYTHING
THAT GOES ON IT'S ACTUALLY YOU
THAT HAS TO MAKE SURE THAT WHEN
SOMEBODY IN CALIFORNIA FLIPS
THEIR SWITCH, THE LIGHTS SHOW UP
AND DISTRIBUTING THAT POWER AND
MAKING SURE THAT IT'S THERE.
IT'S EVERYBODY'S JOB TO BRING
THE POWER TO YOU, BUT YOU HAVE
TO MONITOR IT TO WHERE IT WORKS
ON A 24 7 SCALE FOR EVERY PERSON
IN THE STATE OF CALIFORNIA SO
THAT WE DON'T LOOK LIKE NORTH
KOREA AT NIGHT. SO I GUESS MY
QUESTION TO YOU IS THAT I HAVE
AN ARTICLE HERE. CALM MATTERS ON
MARCH 2ND, WHERE, UM REGULAR
FEDERAL REGULATORS GRANTED THE
EXEMPTION TO ALLOW DIABLO CANYON
NUCLEAR PLANT TO STATE OPERATING
, UM, AND WE MADE AN EMERGENCY
SITUATION HAPPENED LAST LAST
YEAR. THE YEAR BEFORE TO KEEP IT
OPEN. CAN YOU OPERATE AND
PROVIDE POWER WITHOUT DIABLO
CANYON? I THINK THAT THE
DECISION TO EXTEND DIABLO IS A
VERY IMPORTANT I THINK THE
GENERAL PRINCIPLE OF TRYING TO
MAKE SURE THAT WE HAVE
REPLACEMENT CAPACITY IN THE
GROUND BEFORE RETIRING IS VERY
IMPORTANT AND WE ARE CERTAINLY
APPRECIATIVE OF THAT. AND WE
THINK THAT DIABLO TODAY STILL
MAINTAINS A VERY CRITICAL ROLE
IN RELIABILITY IN CALIFORNIA, SO
I THINK THE SHORT ANSWER IS NO.
IT WOULD CERTAINLY PUT US IN
MUCH GREATER DISTRESS NOT HAVING
THAT CAPACITY, SO WE HAVE
APPRECIATED THE MOVE TO MAINTAIN
IT SINCE OPERATION FOR A PERIOD
OF TIME. WHAT ABOUT THE ORIGINAL
GAS PLANTS THAT I BELIEVE
THERE'S FOUR OF THEM IN THE
STATE OF CALIFORNIA THAT PROVIDE
HOW MUCH ENERGY TO THOSE PLANTS
, INCLUDING DIABLO, PROVIDE FOR
YOU TO PROVIDE POWER THEM TO
SECURE A NEW TO PROVIDE POWER TO
THE STATE OF CALIFORNIA? IT'S
OVER 5000 MEGAWATTS, CAESAR
SIGNIFICANT PIECES AND I THINK,
AS YOU HEARD EARLIER TODAY, THE
DECISION TO PLACE SOME OF THE
OTC UNITS INTO THE STRATEGIC
RESERVE, I THINK WILL BE VERY
IMPORTANT. I THINK ALL OF US
UNDERSTAND. THE CONSEQUENCES OF
THOSE DECISIONS AND CERTAINLY ON
LOCAL COMMUNITIES, AND I THINK
THERE'S EFFORTS MADE BEING MADE
VERY DILIGENTLY TO REPLACE THEM,
BUT CERTAINLY MAINTAINING
RELIABILITY. CERTAINLY GAME
NUMBER ONE FOR US JOB NUMBER ONE
FOR US, AND CERTAINLY WE KNOW
FOR ALL OF US IN CALIFORNIA.
IT'S ABSOLUTELY ESSENTIAL SO
TAKING THE NECESSARY STEPS WHILE
ALSO WORKING VERY DILIGENTLY ON
THE TRANSITION. THANK YOU STILL
HAVE THE DEBT CURVE. IS THAT
WHAT IT'S CALLED THE CURVE CURVE
? YES YES, YES. OKAY THANK YOU.
AND THEN I APPRECIATE THAT
ANSWER. I DO APPLAUD YOU FOR I
HOPE THEY PAY YOU A LOT OF
MONEY. I DO. I REALLY DO. GOING
BACK. MR VICE CHAIR WE TALKED
ABOUT SENATOR DODD BROUGHT UP
THIS LETTER THAT WAS SIGNED BY
YOU AND, UH, I BELIEVE. SEVERAL
OTHER PEOPLE. I WAS CURIOUS. I
MEAN, I APPRECIATE THE FACT THAT
YOU GUYS ARE LOOKING TO THE
WESTERN UNITED STATES, BUT I WAS
CURIOUS WHY ALL STATES LIKE
IDAHO, WYOMING, NEVADA AND
COLORADO WERE NOT INCLUDED IN
THAT, FOR EXAMPLE, IS THERE A
POSSIBILITY YOU'RE GOING TO
EXPAND? AND THE ONLY REASON I
ASKED THAT? IT DOESN'T MEAN THAT
IT'S BECAUSE IT'S A REPUBLICAN
OR DEMOCRAT ISSUE? I JUST THINK
THAT WHEN YOU OPERATE IN SILOS,
AND YOU ONLY GET ONE SIDE OF THE
SITUATION, AND THEN IT'S WHAT I
CALL I DON'T WANT TO SEE A RACE
TO THE BOTTOM, BUT THERE'S NO
INSANE HEY, WAIT, MAYBE WE NEED
NATURAL GAS UNTIL IT'S ALMOST
TOO LATE BECAUSE YOU CAN'T JUST
FIRE UP THOSE POWER PLANTS AND
THEN EXPECT THEM TO OPERATE AND
THEN SHUT THEM DOWN INSTANTLY.
IT SHOULD BE A RELIABLE SOURCE
OF ENERGY. UM I JUST CURIOUS IF
THERE'S GOING TO BE AN EXPANSION
OF STATES AND TO INCLUDE INTO
THE ONES THAT YOU'VE ALREADY
CONTACTED, AND IF SO, WHY
WEREN'T THEY ON THIS LETTER TO
BEGIN WITH? YES. SO ONE OF THE
MAIN PURPOSES OF THE LETTER WAS
TO REALLY PROVIDE AN OPEN
INVITATION TO ALL STATES IN THE
WEST TO JOIN THE DIALOGUE, SORT
OF PUT A CONCEPT OUT AND THEN
OPEN IT UP FOR EVERYONE. SO IT
HAS BEEN A VERY OPEN PROCESS. WE
HAVE BEEN IN DIALOGUE WITH ALL
OF THE STATES IN THE WEST. OKAY
SO ABSOLUTELY. AND I VERY MUCH
AGREE THAT THIS SHOULD BE
INCLUSIVE OF ALL OF THE STATES.
I THINK THE ANSWER TO THE
QUESTION OF WHY THEY WEREN'T ON.
AS YOU KNOW, SOME STATES WERE
NOT READY TO SIGN THE INVITATION
AND WE HAVE WE DO MORE
COORDINATION. IN GENERAL WITH
THE WEST COAST STATES.
WASHINGTON, OREGON, CALIFORNIA
AND SO WE STARTED THERE, BUT IT
IS ABSOLUTELY MEANT TO BE AN
INVITATION TO WYOMING, IDAHO,
ALL OF THE STATES IN THE WEST.
THANK YOU JUST KIND OF ADD ALSO
TO SENATOR DARTS EARLIER
QUESTION JUST GOING TO THE
PHASING OF THIS, SO WE STARTED.
THE LETTER CAME OUT OF MEETING
WE HAD ON JUNE 30TH AND I WANT
TO JUST BE WHICH IS, YOU KNOW,
THIS IS A CALIFORNIA IDEA.
ANOTHER CALIFORNIA PUT THIS IDEA
ON. HOW CAN WE CONTINUE TO REAP
THE BENEFITS OF THE MARKET AND
MOVE TOWARDS POTENTIAL? YOU KNOW
, PRINCIPLES AND IDEAS ON HOW WE
CAN CREATE A WEST FIGHT LARGEST
FOOTPRINT. I THINK THE WESTWARD
MARKET HAVING CALIFORNIA IN IT.
WOULD PROVIDE THE MAXIMUM
BENEFIT FOR ALL OF THE WEST. SO
THE IDEA THEN WOULD BE HOW DO WE
ALL CONTINUE TO WORK? AND AS
PRESIDENT REYNOLDS MENTIONED AT
THE INITIAL GROUP THAT MET WAS
LIKE THIS IS A GOOD IDEA. WE
WOULD LIKE TO SIGN ON. AND I
THINK SINCE THEN WE ARE IN THIS
PHASE CALLED THE DISCUSSION
PHASE. THAT'S KIND OF WHAT WE
ARE INFORMALLY SAYING WE'RE
TALKING TO ALL COMMISSIONERS IN
THE WEST. TRYING TO THINK
THROUGH WHAT THEIR INTEREST IS
WHETHER THEY WOULD LIKE TO LEAD
THIS EFFORT, AND THEY WANT TO
FOLLOW THIS EFFORT. AND ONCE WE
HAVE THAT DISCUSSION FACE DOWN,
THEN WE'LL GO INTO MORE OF AN
IMPLEMENTATION PHASE WHERE WE
CONVENED THE TABLE SETTING.
THANK YOU. I DO. I DO REALLY
APPRECIATE YOUR LEADERSHIP IN
THE POSITION THAT YOU'RE AT, AND
I'VE HAD THE OPPORTUNITY TO HAVE
YOU IN MY DISTRICT. AGAIN THE
NUMBER ONE STATE PRODUCING OIL
AND GAS, A COUNTY BUT THE NUMBER
ONE GREEN ENERGY COUNTY AS WELL
WHERE WE PROVIDE GREEN NEUTRONS
TO MY COLLEAGUE FROM LOS ANGELES
SO THEY CAN HAVE GREEN ENERGY I
DO ON THIS HEAT MAP GENERATION
SLIDE. THAT YOU BROUGHT. IS THAT
THIS BAR THAT IS OVER HERE TO
THE RIGHT WHERE IT SAYS THAT
FROM LIKE GOLD TO READ. IS
FOSSIL FUELS AND GAS THAT
PROVIDES ENERGY TO THE GRID.
CORRECT OR NOT? YES, SO IT'S
BASICALLY GREEN IS ABOUT TWO
GIGS OF GAS IS RUNNING ON THE
SYSTEM, AND THE RED IS ALMOST
30. GIGS OF GAS IS RUNNING ON
THE SYSTEM. SO YOU HAVE GAS
RUNNING ON THE SYSTEM, TYPICALLY
FOR INERTIA OF FREQUENCY
MANAGEMENT, SO YOU ALWAYS HAVE
SOME LEVEL THAT'S THAT'S RUNNING
. BUT GENERALLY ALL THOSE
RESOURCES RAMP UP IN THE MIDDLE
OF THE DAY IN SUMMER. OKAY I
JUST WANT TO MAKE SURE THAT
WE'RE PURSUING THIS. I REALIZE
IT'S THE GOVERNOR'S OBJECTIVE TO
DO THIS, BUT IT NEEDS TO BE
PURSUED IN AN ETHICAL WAY. A
COST EFFECTIVE WAY, AND I THINK
THE TAXPAYERS NEED TO UNDERSTAND
THAT THEY'RE EITHER PAYING ON
THE FRONT END OR THE BACK END.
SO YOU'RE REDUCING COSTS ON THE
RATEPAYERS FOR THEIR PG AND E
BILLS, BUT YOU'RE CHARGING THEM
IN ABUNDANCE AMOUNT OF MONEY IN
THE BEGINNING TO OFFSET THE COST
OF GREEN ENERGY AND I'D LIKE
THAT INFORMATION. BUT AGAIN AND
AGAIN. I JUST YOUR JOB ALONE
CAN'T EVEN IMAGINE. AND I
APPRECIATE YOUR LEADERSHIP, SIR
. AT THIS EASY AND YOUR OPENNESS
TO LISA OF A DIALOGUE ON SOME OF
THE ISSUES THAT CONCERNED
INDIVIDUALS LIKE ME, SO THANK
YOU. THANK YOU, MR CHAIR FOR
YOUR TIME. THANK YOU, SENATOR.
PICKER. THANK YOU ALL FOR BEING
HERE AND PROJECTS BEING IN THAT
WE HAVE A NUMBER OF THINGS GOING
ON TODAY, BUT A LOT OF THE SAME
DISCUSS TOPICS WE'VE DISCUSSED
IN OUR BUDGET SUBCOMMITTEE AND
GREAT TO GET THE UPDATES. WHAT
NUMBER ONE AT MY THANK YOU. UM
YOU KNOW, THIS IS A CLASSIC ROLE
WHERE IF NOTHING GOES DOWN, YOU
GET OUR THANKS, BUT THE PUBLIC
AT LARGE, JUST YOU KNOW THEY'RE
GOING ABOUT THEIR LIVES, BUT IF,
UM IF WE DON'T HAVE RELIABILITY
, EVERYBODY KNOWS ABOUT IT.
EVERYBODY FEELS IT AND, UM, BUT
AGAIN, NOT THE CASE. IF IT'S
JUST EVERYTHING IS GOING WELL.
PEOPLE JUST DON'T NOTICE IT.
THAT'S THAT'S OUR JOB IS TO MAKE
SURE IT JUST GOES SMOOTHLY BUT
WANT TO THANK YOU ALL FOR YOUR
WORK HERE. AND SECOND, YOU KNOW
THE THIS PRESENTATION IS
EXCELLENT. AND WHEN YOU TALK
ABOUT THE PEAK AND THE FOCUS ON
PEAK, UH, I THINK THAT'S
CRITICAL. IT'S BEEN FOCUSED ON A
LOT OF MY LEGISLATION TRYING TO
FOCUS ON THAT PEAK AND TRY TO
GET TO 24 7 CLEAN ENERGY, AND
APPRECIATE THAT FOCUS HERE AND,
YOU KNOW, SHOWING THAT REALLY
WHERE WE'RE STILL KIND OF REALLY
STRUGGLE BUT AGAIN, PARTICULARLY
IN THE WINTER THAT EVENING PEAK
AS WE CONTINUE TO ELECTRIFY
TRANSPORTATION AND BUILDINGS.
JUST THREE OR FOUR THINGS ON THE
QUESTION FRONT. UM. YOU NEVER
WANT TO MAN RESPONSE. I'M
TALKING. WE SPOKE TO ALL OF YOU
ABOUT THE RESPONSE. BUT YOU
KNOW, THE REASON HAS SPENT SO
MUCH TIME ON. IT IS ONE OF THE
CRITICAL NEAR TERM, CLEAN
RESOURCES THAT WE CAN ADD TO THE
GRID BY TAKING LOAD OFF THE
GRID, RIGHT? I THINK WE CAN ADD
TO RELIABILITY AND ALTHOUGH WE
MADE INVESTMENTS INTO PUC PAID
PROGRAMS FOR. IN RESPONSE. WE
HAVEN'T REALLY IMPROVED ACCESS
FOR PRIVATE SECTOR ER PROGRAMS
AND. I BELIEVE THE PROS TO
DECISION WE SHOULD AT LEAST IN
THE CLICK THROUGH PROCEEDING.
UM, WHICH HAS GONE ON FOR ABOUT
SIX YEARS NOW, UM, DOES NOT FIX
THE PROBLEMS THAT ARE CAUSING
LARGE NUMBERS OF INTERESTED
CONSUMERS TO DROP OUT BEFORE
COMPLETING THE SIGN UP PROCESS
FOR THIRD PARTY DEMAND RESPONSE
PROGRAMS SO I'M JUST WONDERING
WHAT OTHER ALTERNATIVES UP èC
LOOKING AT TO ENABLE THIRD PARTY
DEMAND RESPONSE AGGREGATORS WHO
ARE NOT SPENDING RATEPAYER MONEY
. THEY'RE SPENDING THEIR OWN
MONEY, INVESTOR MONEY, NOT
REPAIR MONEY AND HAVE PROVEN UM
TO BE. I THINK AN IMPORTANT PART
OF THE SOLUTION HERE. SO WHAT?
ALL TERMS ARE WE LOOKING AT THE
PC LOOKING FORWARD TO ENABLE
THIRD PARTY DEMAND RESPONSE
AGGREGATORS. SURE I'LL START AND
THEN VICE CHAIR GONDA MAY HAVE
SOME ADDITIONAL COMMENTS. AND I
THINK YOU KNOW YOU, YOU YOU
STARTED OUT RECOGNIZING THAT
WE'RE LOOKING AT ALL TYPES OF
DEMAND RESPONSE AND LOAD
MANAGEMENT. WE'RE LOOKING AT
TIME VARIANT RATES. WE'RE
LOOKING AT PROGRAMS ARE LOOKING
AT A FOR PROGRAMS THAT WORK IN
EMERGENCIES AND THEN PROGRAMS
THAT ARE INTEGRATED INTO THE
MARKET. WE'RE LOOKING AT
PROVIDING RESOURCE ADEQUACY AND
CAPACITY PAYMENTS. UM AND THE
PROGRAMS ARE DEVELOPED. EVEN THE
THIRD PARTY PROGRAMS ARE FUNDED
BY RATEPAYERS, OF COURSE,
BECAUSE THEY GET CONTRACTS AND
THEY DEPEND ON RESOURCE ADEQUACY
PAYMENTS, AND THEY INTEGRATE
THEIR, UM ADMINISTRATIVE COSTS
INTO THOSE PROGRAMS IN THE SAME
WAY THAT THE IOU PROGRAMS DO AND
SO WE'VE BEEN, THERE'S
ULTIMATELY THE BUT FOR EXAMPLE,
YOU'RE BUYING A MILLION NEST
THERMOSTATS AND GIVING THEM THAT
THAT WAS DONE WITH THEIR CAPITAL
. THEY RAISED, FOR EXAMPLE, NOT
THREE PARAMOUNT. ABSOLUTELY AND
THAT THAT IS A BIG, YOU KNOW,
PART OF THE SUITE OF DEMAND
RESPONSE PROGRAMS AND WE'RE
LOOKING AT AND WHAT THEY'RE
INTERESTED IN, OF COURSE, IS A
RETURN ON THE INVESTMENT, AND SO
WE'RE LOOKING AT WAYS THAT ARE
COST EFFECTIVE TO RATE PAIRS SO
THAT WE CAN CAN HAVE RATE PARA
FUNDED. RETURNS ON INVESTMENT
THAT ARE STILL COST EFFECTIVE TO
RATE PAIRS AND PROVIDE A NEED TO
THE GRID. UM AND SO WE WANT TO
MAKE SURE THAT WE'RE CONTINUING
TO LOOK FOR PERFORMANCE RESULTS
SO THAT WE CAN COMPENSATE FOR
PERFORMANCE OF THE RESOURCES AND
SHOWING UP WHEN WE NEED THEM. SO
IT'S REALLY A WORK IN PROGRESS,
AND WE HAVE PILOTS AND WE HAVE
PROGRAMS THAT HAVE BEEN ONGOING
THAT WE'RE EVALUATING AND TRYING
TO MAKE SURE THAT WE'RE PUTTING
RIGHT PAIR OF MONEY IN THE RIGHT
PLACES TO COMPENSATE FOR THOSE
PRIVATE INVESTMENTS THAT HAVE
BEEN MADE, BUT VICE CHAIR GONNA
HAS. ALSO, WE'VE BEEN WORKING TO
GET COLLABORATIVELY WITH ASSISI
ON DEMAND RESPONSE PER 0 G.
THANK YOU, PRESIDENT GENERAL'S
SENATOR RECOGNIZED TO SEE YOU.
SO THE I THINK ONE CRITICAL
PIECE OF THE EQUATION AND THANKS
FOR RAISING THIS ISSUE AROUND
DEMAND FLEXIBILITY PER 8 46. WE
DID ADOPT A GOLD THIS YEAR OF
7000 MEGAWATTS HAVE DEMAND
FLEXIBILITY BY THE END OF THE
END OF THE DECADE, SO WHAT THAT
REALLY PROVIDES IS AN
OPPORTUNITY FOR THE RPS OR THE
THIRD PARTY AGGREGATORS DO NOT
ONLY THINK ABOUT OUR CAPACITY AS
AN INCOME STREAM BUT ALSO THE
STRATEGIC RESERVE AND THE
EMERGENCY PROGRAMS. AND SO WE
ARE RIGHT NOW, WITH THE MONEY
THAT THE LEGISLATURE PROVIDED
TESTING MODELS TO HAVE THE RPS
PROVIDE EMERGENCY RESOURCES ARE
STARTING THIS YEAR. AND I THINK
THAT WOULD REALLY KIND OF PUT A
FRAMEWORK FOR US TO BEGIN TO
EXPAND THEM. I THINK ONE THING
THAT I WOULD LIKE TO OFFER FOR
CONSIDERATION IS, AS YOU THINK
ABOUT THE D R RESOURCES AT LARGE
. WE HAVE BROADLY THINKING ABOUT
THREE ATTRIBUTES RIGHT OF THOSE
RESOURCES ONE. HOW LONG CAN IT
CAN PERFORM? IS IT A HALF AN
HOUR RESOURCE FOR OUR RESOURCE
FIVE. OUR RESOURCE. AND WHAT IS
THE OBVIOUSLY THE MAGNITUDE OF
THE RESOURCE AND THIRD IS THE
COST OF THE RESOURCE. SO WHAT
WE'RE TRYING TO FIGURE OUT IS
WITHIN THE RESOURCE ADEQUACY
FRAMEWORK WITH TYPICALLY LIKE
RESOURCES PERFORMING AT LEAST
FOUR HOURS. SO WHAT THAT DOES
FOR SOMEBODY LIKE A THIRD PARTY
DEMAND RESPONSE PROGRAM IS
DOESN'T NECESSARILY ALLOW FOR A
LARGE PARTICIPATION BUT NOW
UNDER FOUR HOURS, BEING A PART
OF THE STRATEGIC RESERVE WILL
PROVIDE ADDITIONAL OPPORTUNITIES
AND IN TERMS OF THE DESIGN OF
THE PAYMENTS, WE ARE ESSENTIALLY
PAYING THE SAME LEVELS. SO
WHETHER WE'RE TALKING ABOUT OTC
POWER PLANT EXTENSION WHICH IS
ABOUT $100 A MONTH OR THE DSPS
PAYMENTS, WHICH HAD ABOUT $100 A
KILO MONTH OR AND RDR OUR
RELIABILITY HERE THAT CP CPS IS
ALSO $100 A KILOWATT MONTH. I
THINK WHAT? YOU'RE SORRY $100
OVER THE YEAR WITH KIND OF
ESSENTIALLY TRYING THE SAME
LEVEL OF INCENTIVES TO SEE IF
THEY PERFORM. GREAT. THANK YOU
FOR THAT. THAT'S A THAT'S A
TREMENDOUS SCHOOL AND I
APPRECIATE IT. AND I KNOW YOU
HAVEN'T WORKING TOWARDS THAT.
WHICH IS EXCELLENT. UM YOU KNOW,
I THINK I GUESS, FROM MY PART,
WOULD LIKE TO SEE MORE SIMILAR
PRICING DATA SHARING, WHICH IS
THAT WE CAN ENABLE THAT, UM THAT
OTHER PIECE OF THAT ONE PART OF
THE PICTURE, SO I THINK THAT'S
WHERE WE PROBABLY STILL HAVE
WORK TO DO, BUT I APPRECIATE
THAT AND APPRECIATE YOU SAY
COMMISSIONER ABOUT AGAIN LOOKING
BROADLY SPEAKING AT A RANGE OF
DEER RESOURCES, WHICH ARE, UM
LET YOU KNOW BE ABLE TO HEAR
WHICH IS EXCELLENT. UH JUST A
COUPLE OF THINGS IN POLITICS IS
A PRODUCT THAT I WAS NOT HERE.
BUT YOU KNOW, WE TALKED TO THE
STRATEGIC ALLY REALLY RESERVE
AND WE'VE TALKED A LOT ABOUT
THAT IN OUR BUDGET SUBCOMMITTEE
, AND THERE'S SOME HERE. UM BUT
YOU KNOW, IT DOES SEEM THAT A
LOT OF THE SPENDING HAS
OVERWHELMING GONE TO FOSSIL FUEL
ASSETS. EXTRA GUESTS, TURBINES
AND TO OUR GAS PLANTS EXTEND THE
LIFE OF THE THREE ONCE THROUGH
COOLING PLANTS PAYING CUSTOMERS
TO RUN THEIR BACKUP GENERATORS
IN ORDER TO REDUCE THEIR DEMAND
OF THE GRID. SUSPENDING THAT
DEFINITELY BUYS US INSURANCE,
BUT IT'S REALLY THROWING AWAY
MONEY, ULTIMATELY TO TEMPORARILY
SUPPORT OLDER ASSETS THAT YOU
KNOW WE DON'T WANT TO RUN IN THE
LONG TERM INVESTING IN NEW CLEAN
ASSETS, SO COULD THAT SAME
MONEY, GIVE US MORE LONG TERM
VALUE BY ACCELERATE DEPLOYMENT
OF STORAGE. UM CLEAN RESOURCES
RATHER THAN BEING CONTINUING
THROUGHOUT THESE DIRTY ASSES.
AND ONE THING I KNOW WE'VE BEEN
WORKING ON FROM A LEGISLATIVE 10
POINT WANT TO MAKE SURE THAT YOU
CERTAINLY FEELS TO DO YOU ARE
THAT YOU CAN SPEND MONEY ON THAT
MONEY ON THESE CLEAN ASSETS ON
BATTERY BACKUP. WHICH OVERALL AS
WE'VE SEEN HERE, UM, THANKS TO
YOUR WORK HAS BEEN GROWING
TREMENDOUSLY. UM BUT YOU KNOW,
JUST FOR THAT FOCUS ON FOR THE
RESERVE ITSELF. HEY. AND. BUT
THANK YOU VERY MUCH, SENATOR
BECKER AND REALLY, ABSOLUTELY
APPRECIATE THE EFFORTS THAT YOU
AND THE SENATE HAS MADE TOWARDS
THAT GOAL. I THINK FROM OUR
PERSPECTIVE, THERE IS A
CHALLENGE, AND I SPOKE ABOUT
THIS DURING MY PRESENTATION,
WHICH IS WE COMPLETELY
UNDERSTAND THAT WE NEED TO
DEPLOY ASSETS VERY QUICKLY INTO
THE RESERVE FOR RELIABILITY. BUT
AT THE SAME TIME WE WANT TO BE
CAREFUL NOT TO COMPETE WITH THE
LOAD SERVING ENTITIES. AND I
THINK THERE IS THE TENSION THAT
YOU SPOKE OF, WHICH IS THEY ARE
GETTING THOSE ASSETS WHICH ARE
DURABLE, WHICH ARE GOING TO MEET
OUR LONGER TERM, CLEAN ENERGY
GOALS AS WELL AS RELIABILITY,
AND DWR, IN PARTICULAR, WANTS TO
BE VERY CAREFUL THAT WE'RE NOT
PLAYING IN THAT SAME SPACE AND
EXACERBATING THE CHALLENGES THAT
THEY MIGHT BE SEEING IN TERMS OF
SUPPLY CHAIN PRESIDENT REYNOLDS
TALKED ABOUT THERE BEING, YOU
KNOW, FAIRLY ROBUST COMPETITION
AMONGST THE THOSE SERVING
ENTITIES TO GET THOSE RESOURCES
SO THAT HAS BEEN A CHALLENGE AND
WE APPRECIATE THAT WE DO WANT TO
THINK BROADLY. TO THE EXTENT
THAT THERE ARE ADDITIONAL
RESOURCES THAT DWR CAN PROCURE
WERE VERY INTERESTED IN DOING SO
. BUT IN THE END, I GUESS IN THE
NEAR TERM SPACE WHERE WE ARE
SEEING IS STILL A LOT OF
INTEREST FROM LOAD SERVING
ENTITIES ON SORT OF MORE
TRADITIONAL, UM, LITHIUM ION
STORAGE, YOU KNOW, FOUR HOUR
BATTERIES, AS WELL AS WIND SOLAR
ETCETERA TO MEET THEIR RPS
REQUIREMENTS AND ACTUALLY
SLIGHTLY FURTHER BEYOND. DID YOU
WANT TO? JUST TO ADD TO THAT. I
THINK THE KIND OF THE SHORT
ANSWER FOR US REALLY IS AROUND
THE TIMELINESS OF THE RESOURCE
WE'RE LOOKING AT, YOU KNOW, VERY
QUICKLY COMING OFF OF THE 2022
HEAT WAVE, RAMPING SEVERAL 1000
MEGAWATTS AND SUSTAINING THAT
THROUGH THE END OF THE DECADE.
SO AS WE BUILD RESOURCES THROUGH
THE DSG SND BA PROGRAM, WHICH
ALLOWED THESE CLEAN RESOURCES
AND WE HAVE REQUESTED ADDITIONAL
BUDGET ON THAT. AND SET A PLAN
THAT WE PROVIDED EARLIER THIS
YEAR HAS ALMOST HALF A BILLION
FOR DEMAND SIDE RESOURCES IN IT
THAT THE HOPE IS WE CONTINUE TO
PUSH THE CLEAN AND OUR
PRELIMINARY INTERNAL ANALYSIS
SUGGESTS TO BUILD ABOUT 3000
MEGAWATTS OF DEMAND SIDE
RESOURCES, INCLUDING ALL THE
RESOURCES YOU MENTIONED THE
MENTAL EXPERT ON IT DEMANDS
FLEXIBILITY. COMMUNITY SAURIAN
STORAGE TAKES ABOUT A BILLION
AND A HALF DOLLARS OVER FIVE
YEARS. SO WE'RE TALKING ABOUT.
YOU KNOW IF WE GET THE MONEY
TOMORROW AND THEN START
DEPLOYING, YOU WOULD NEED UP
UNTIL 29 TO REALLY REALIZE THOSE
LEVELS OF RESOURCES. SO WHILE
THAT IS HAPPENING, AND WE'RE
BUILDING, YOU KNOW IF WE WERE TO
GET THAT KIND OF BUDGET WE STILL
NEED TO DO SOMETHING
IMMEDIATELY, AND THAT'S REALLY
WHERE THE HARD DECISION CAME
FROM. YEAH GOOD. WELL I
APPRECIATE THAT. AND YOU KNOW, I
WAS TRYING TO DO THAT AND
THOUGHTFUL WAY. UM AND TO BUILD
UP THE INVESTMENT, BUILD UP
THOSE ASSETS AND I'M SURE WE'LL
KEEP DISCUSSING THIS ISSUE. BUT
WE'RE JUST ONE OF MY COLLEAGUES
ARE QUITE FOCUSED ON, UM. YOU
KNOW, TO GET KEEPING KEEPING ON
AS WE GO FORWARD, UM JUST TWO
OTHER POINTS. UH, WE RECENTLY
HAD A GATHERING HERE ON THE
INFLATION REDUCTION ACT. THERE'S
ANOTHER LUNCH TOMORROW, AND IT
AUTHORIZED DEWEY'S LOAN PROGRAMS
PROVIDE BILLIONS IN LOANS. AS
YOU KNOW, UM, BUT THOSE PART OF
THAT FOCUSES LARGE SCALE CLEAN
ENERGY, RELIABLE BUILDING
EFFORTS AS VIRTUAL POWER PLANTS
. AND UM YOU KNOW, THESE ONES
ONLY MAKES SENSE FOR VERY LARGE
EFFORTS RIGHT HUNDREDS MILLIONS
OF DOLLARS, WHICH IS LARGE FOR
ONE LSC OR DEMAND RESPONSE.
COMPANY TO TACKLE. SO UM, CAN
YOU MAYBE ALLUDED TO THIS, BUT
IS THERE AN EFFORT IN A
COORDINATED WAY BY BY, UM, ANY
STATE AGENCY TO LEVERAGE THAT
FEDERAL FUNDING TO FUND LARGE
SCALE BUILD OUT OF THESE KINDS
OF DISTRIBUTED ASSETS THAT COULD
BE USED TO REDUCE DEMAND AND
BALANCED GRID NEEDS. YEAH,
ABSOLUTELY. THE CC IS PLAYING A
CRITICAL ROLE IN COORDINATING
AROUND THE FEDERAL DOLLARS. WE
ARE USING THE EXISTING MONEY
THAT YOU PROVIDED US TO TEST
MODELS ON THE PPS, INCLUDING THE
DSG HAS PROGRAM, WHICH WILL BE
LAUNCHING OF EPF MODEL THIS
SUMMER AND THEN MOVING FORWARD.
YOU KNOW, HOW DO WE COORDINATE
THE FEDERAL MONEY TO SUPPORT
PROGRAMS LIKE THAT? AND THERE IS
COORDINATION. WE COULD
ABSOLUTELY SET UP A BRIEFING ON
THAT. GREAT. AH! LASTLY, UM. WE
PROVIDED MILLIONS OF THE SYRUP,
MONEY FOR SOLAR AND STORAGE THAT
CAN BE INTEGRATED TO MINISTERS
OR VPS, AND THERE'S MONEY IN THE
SOLAR FOR OUR FEDERAL PROGRAM.
UM BUT THE APPLICATION IS CLOSED
AND TIMBER THIS YEAR AND OUR
UNDERSTANDING IS WE THAT MAYBE
THE PC HASN'T SERVICE COMMUNITY
SOLAR TARIFF REQUIRED FROM THE
FOR ASSEMBLYMAN TOWARDS PHIL
LAST YEAR. 23 23 16 JUST WANT TO
SEE WHAT ARE WE DOING TO ENSURE
THAT WE MEET THE TIMELINES TO BE
COMPETITIVE FOR THAT PROGRAM?
BèC DOES HAVE AN OPEN PROCEEDING
ON COMMUNITY SOLAR AND WERE
FOLLOWED, TRACKING AND TAKING
INTO ACCOUNT THE FEDERAL
TIMELINES. WE ALSO HAVE OTHER
PROGRAMS THAT COULD BE USED LIKE
THE ESCAPED PROGRAM THAT COULD
BE USED TO LEVERAGE THE FEDERAL
FUNDS. SO WE ARE TRACKING THAT
SOLAR FOR ALL, UM, FUNDING
PROGRAM FROM THE FEDERAL
GOVERNMENT. AND ALSO JUST THE I
BANK IS LEADING THE SOLAR FOR
ALL EFFORT FOR THE STATE. YEAH.
OKAY? UM. EXCELLENT WE'LL GET
THAT TAKES HERE NOW, MAYBE ONE
MORE QUICK ONE AT THE END. I
KNOW SENATOR WANT TO TRY TO GET
WHAT HE'S BEEN DOING HEARING AT
THE SAME TIME, BUT, UM SO DIFFER
FOR THE MOMENT. THANK YOU.
SOONER. SEE, ARCHER. I WOULD ARE
YOU? ARE YOU READY FOR YOUR
QUESTIONS? THANK YOU. SO, YOU
KNOW, I'M GOING TO TALK AND KIND
OF, YOU KNOW, IN TERMS OF WHAT I
HEAR FROM THE PEOPLE THAT I
REPRESENT. AND IT COMES FROM ALL
WALKS OF LIFE. AND PART OF THE
PROBLEM IS WE HAVE OUR DEMAND
SIDE AND WE'RE INCREASING. THAT
IS FAST AS WE POSSIBLY CAN.
PUTTING IN MORE HOUSING. WE'RE
BUILDING MORE THINGS AND THEN ON
THE OTHER SIDE, WE HAVE THE PART
WHERE WE GENERATE AND THAT
GENERATION IS BEING CONSTRAINED.
WHILE WE TRY TO TAKE OFFLINE,
THE THINGS THAT WE SAY ARE BAD
AND BRING ONLINE OTHER THINGS
THAT WE HOPE WILL PLACE THAT,
BUT IN THE MIDDLE, WE HAVE THE
DISTRIBUTION PART. AND IN THE
DISTRIBUTION PART IS. THE
EFFORTS BY THE UTILITY COMPANIES
AND EVERYBODY TO BE ABLE TO GET
THAT TO THAT. AND IT'S ALL
IMBALANCED. AND AT THE END OF
THE DAY, WHAT WE HAVE IS A BUNCH
OF PEOPLE THAT USED TO PAY
$250,250 A MONTH FOR THEIR FOR
THE ELECTRICITY BILL DURING THE
SUMMER, USING THEIR ENERGY,
INEFFICIENT EQUIPMENT. PAYING
$800 A MONTH NOW. AND WE'RE NOT
EVEN WE'RE NOT EVEN CLOSE TO
BEING WHERE WE THINK WE'RE GOING
TO BE IN 2045. AND SO YOU KNOW,
ONE OF MY QUESTIONS IS, YOU KNOW
THESE ARE VERY LOFTY GOALS. WHAT
HAPPENS IN THE MIDDLE OF THIS?
WE REALIZE THAT WE'RE NOT GOING
TO HIT OUR GOALS. WHERE'S AND WE
HAVE TAKEN STEP OFFLINE
PERMANENTLY THAT WE CAN'T PUT
BACK IN. WHAT ARE WE GOING TO
TELL PEOPLE WHEN THEIR
ELECTRICITY BILL IN THE
SUMMERTIME IS $2000 INSTEAD OF
$800? BECAUSE WE'VE GONE DOWN
THIS PATH THAT'S UNREALISTIC. SO
MY QUESTION TO YOU IS, DO YOU
THINK THERE'S SOME FEASIBILITY
OR SOME ADVANTAGE TO US, MAYBE
NOT HAVING GOALS BASED ON
TIMELINES, BUT MAYBE HAVING
GOALS BASED ON WHAT WE CAN
SUPPORT WHAT THE MARKET ACTUALLY
SUPPORT. YOU CAN'T YOU CAN'T
DEMAND THAT PEOPLE. YOU KNOW,
YOU CAN'T PUT THE SQUARE PEG IN
A ROUND HOLE. AND THAT'S WHAT
WE'RE KIND OF DOING FROM THE
MARKET PERSPECTIVE BUT ALSO
TECHNOLOGY. RIGHT NOW, THIS IS
THE THERE'S TREMENDOUS PRESSURE
TO PUT LINES IN EVERYWHERE EVEN
WHERE THOSE LINES ARE GOING TO
GOING OVER AREAS THAT ARE BRUSH
FIRE PRONE. AND WHEN WE HAVE THE
BRUSH FIRE, GUESS WHAT? ALL OF
THOSE THOSE CLIMATE ADVANTAGES
GO AWAY. IN JUST IN ONE GOOD
YEAR OF BRUSHFIRES THAT WE'VE
BUILT UP FOR 10 YEARS. SO WE'RE
PUTTING ALL THAT OUT THERE. WHEN
DOES WHEN DO ALL OF OUR
RESPONSIBLE THE PEOPLE THAT WERE
GIVEN MORE AND MORE BALLS TO
JUGGLE IN THE AIR? FINALLY SAY,
HEY, WE HAVE ENOUGH BALLS IN THE
AIR RIGHT NOW. WE NEED TO SLOW
THIS DOWN SO THAT WE CAN
ACTUALLY ACHIEVE SOMETHING IN
THE FUTURE THAT WILL BE
BENEFICIAL TO EVERYBODY WITHOUT
PUTTING MOM AND POP OUT OF
BUSINESS. BECAUSE THAT'S WHAT'S
HAPPENING TO PEOPLE OUT THERE.
THEY CAN'T AFFORD TO PAY $800 A
MONTH FOR ELECTRICITY. AND YET
WE'RE GOING TO MAKE THAT EVEN
MORE EXPENSIVE. SO YOU KNOW, I'M
I'M VERY SKEPTICAL THAT WE'RE
GOING TO GET THERE. ESPECIALLY
WHEN I'M LOOKING AT THIS HUGE
UTILITIES SCALE SOLAR.
EXPECTATION FOR 2045 WHERE ALL
THOSE GOING? ARE THEY GOING TO
COVER ALL OF OUR LANDSCAPE? YOU
GO OUT TO THE DESERT. ALL WE SEE
IS WINDMILLS. YOU KNOW, I'M JUST
NOT. I DON'T UNDERSTAND HOW WE
CAN GO FORWARD AND NOT ADDRESS
THESE THINGS FOR PEOPLE BECAUSE
AT THE END 2045 IF WE GET TO
100% PEOPLE HERE OUT THERE THAT
WILL MAKE A 1% DIFFERENCE. AND
WHAT'S GOING ON IN CLIMATE IN
THE WORLD. 1% SO IS THE COST
THAT WE'RE DOING WITH THE
BENEFIT. MAYBE WE OUGHT TO SLOW
DOWN AND MAYBE THAT'S WHAT WE
SHOULD BE TALKING ABOUT. INSTEAD
OF TRYING DESPERATELY TO KEEP
ALL THE BALLS IN THE AIR, LET'S
TAKE A FEW OUT. AND MAYBE GET
SOME PLACE REALISTICALLY, SO
THAT THAT WE CAN REDUCE OUR
FOOTPRINT THAT WE ARE LEAVING
HERE ON IN THE END THE
ENVIRONMENT. BUT NOT IT'S NEVER
GOING TO BE WHAT THEY THINK WHAT
SOME PEOPLE HAVE COME UP WITH.
BECAUSE WE'RE NEVER GOING TO BE
ABLE TO ERASE THAT THE
ATMOSPHERE THAT IS SURROUNDING
THE EARTH AND US JUST BEING OUR
OWN LITTLE SILO. AND
CALIFORNIANS SHOULDN'T BE PAYING
FOR EVERY BIT OF THAT, AND
THAT'S WHAT'S HAPPENING RIGHT
NOW. SO THAT'S JUST KIND OF HOW
I FEEL ABOUT IT. UM, I HOPE THAT
. THE PEOPLE THAT ARE CHARGED
WITH BEING THE BRAINS BEHIND
TRYING TO DO THIS CAN SOMEDAY
SAY YOU KNOW WHAT? NO, IT'S NOT
GOING TO WORK THAT WAY. WE'RE
GOING TO HAVE TO SLOW DOWN.
WE'RE GOING TO HAVE TO DO THIS
IN A MORE REALISTIC WAY. BECAUSE
RIGHT NOW THERE'S SO MUCH
FRUSTRATION OUT THERE ON ALL
SIDES THAT THE UTILITIES, THE
BUILDERS, AND MORE THAN THAT THE
CITIZENS THAT ARE JUST PAYING
FOR IT ALL IN ONE WAY OR
ANOTHER. SO UM, SO ANYWAY, UM,
YOU KNOW WHAT IF WE DON'T MAKE
THIS GOAL WHAT'S OUR PLAN?
WHAT'S OUR PLAN? B. IF WE DON'T
GET 183 MEGAWATTS BY. BY 2045
WHAT HAPPENS TO US? I AM HAPPY
TO RESPOND AND THE ALL OF THE
POINTS THAT YOU'RE MAKING OR
THINGS THAT WERE ABSOLUTELY
THINKING ABOUT THOSE ARE THE
CHALLENGES WE FACE, RIGHT. HOW
DO WE DO ALL OF THIS IN A WAY
THAT IS RESPONSIBLE, SO THAT
WE'RE NOT REALLY LETTING
RESOURCES GO TOO QUICKLY THAT
THOSE INVESTMENTS HAVE BEEN MADE
. AND EVEN THOUGH THERE WE MAKE
SURE THAT WE HAVE REPLACEMENT
RESOURCES BEFORE WE LET
RESOURCES GO TO QUICKLY, HOW DO
WE CONTROL COSTS? HOW DO WE DEAL
WITH LAND USE SO THAT WE'RE
BUILDING PROJECTS IN CALIFORNIA,
BUT WE'RE DOING IT AT THE RIGHT
PLACE. AND THEN HOW DO WE DRIVE
CHANGE IN OTHER STATES AND
ACROSS THE WORLD? AND I THINK
YOU KNOW ONE. SO ALL OF THOSE
THINGS ARE BEING TAKEN TO
ACCOUNT AND WE'RE THINKING
THROUGH ONE POINT IS THAT
THERE'S ALSO A LOT OF
OPPORTUNITY HERE. THERE ARE A
LOT OF GREEN JOBS THAT ARE BEING
CREATED, AND I DON'T EVEN LIKE
USING THAT WORD. THERE ARE A LOT
OF JOBS THAT ARE BEING CREATED
THROUGH THIS AND YOU HEARD FROM
SENATOR GROVE ABOUT PROJECTS IN
HER DISTRICT, AND THERE'S A LOT
OF ECONOMIC OPPORTUNITY AND
INVESTMENT THAT IS LEADING TO
PROJECTS THAT BECOME COST
COMPETITIVE AND HAVE A SPILLOVER
IMPACT INTO OTHER JURISDICTIONS.
WE'VE SEEN A LOT OF CALL
RETIREMENTS BASED ON ECONOMIC
FORCES. THAT HAS AN IMPACT. AND
IF WE DON'T MAKE THOSE CHANGES,
THE COST OF CLIMATE CHANGE
BECOMES MUCH HIGHER. AND THAT
HITS OUR TAXPAYERS AND
RATEPAYERS, BUT YOU'RE RIGHT.
IT'S NOT EASY, SO WE'RE
BALANCING ALL OF THOSE FACTORS.
AS WE THINK THROUGH HOW TO DO
THE BEST WE CAN AND CONTROL
COSTS ON REPAIRS AND ON
TAXPAYERS. THANK YOU FOR YOUR
ANSWER. THANK YOU. INTERESTING
TIME. I HAVE A TALENT QUESTIONS.
YOU HAVE A QUESTION. ASKED
SENATOR ROSS ACTUALLY, JUST A
SUGGESTION THAT I NEED A RADIO.
I'M SORRY. ALSO FINE. I THIS WAS
ADDRESSED EARLIER AND THANK YOU
FOR ALL OF YOUR WORK. IF YOU
WOULD GUIDE ME AS TO HOLLA. ALL
OF THIS TRANSLATES INTO OUR VERY
POOR COMMUNITIES. AFFORDABILITY
RELIABILITY BECAUSE RELIABILITY
IS OF MATTERS. UM, AFFORDABILITY
IS A BIG PART OF YOUR LIABILITY
. UM IT WAS A VERY, VERY LONG
ARTICLE IN THE L A TIMES ABOUT
FARM WORKERS. JUST A FEW DAYS
AGO WEEK AGO 113 DEGREES AT
WORK. THEY COME HOME. THEY HAVE
NO ELECTRIC. UM A C. THEY CAN'T
AFFORD TO PAY IT AND WE'RE
ASKING THEM TO PAY PEAK RATES
WHEN THEY NEEDED THE MOST. WHICH
IS WHEN THEY COME HOME. SO YOU
DON'T HAVE TO ANSWER ALL THAT
NOW, BUT I WOULD LIKE FROM YOU
IS WHERE AND HOW ARE YOU
ADDRESSING THAT AS PART OF OUR
RELIABILITY? THANK YOU. TURN IT
DOWN. UM WOULD YOU LIKE US TO
RESPOND NOW OR AS A FOLLOW UP
AND DON'T RESPECT RESPECT TO THE
CHAIR? IF YOU CAN JUST GET BACK
TO ME ON THAT, I MEAN, REALLY
APPRECIATE DOWN TO NOW WE CAN'T.
I JUST WANT TO AFFORD THE PUBLIC
OPPORTUNITY TO ASK YOUR
QUESTIONS, TOO, BECAUSE I KNOW
WE HAVE A HARD STOP AT 12. BUT
I'LL STAY BEYOND 12 FOR THOSE
FOLKS. THAT'S OKAY, MR CHAIR,
JUST LIKE MAKE A FOLLOW UP WITH
ME. UH I'M GONNA, UM, I HAD A
SERIES OF QUESTIONS AS WELL. BUT
I ALSO WANT TO AFFORD THOSE
INDIVIDUALS IN THE PUBLIC, UH,
POSED THEIR QUESTIONS. SO ARE
YOU GUYS GOING TO BE HERE WHILE
THE PUBLIC ASKED QUESTIONS? ALL
RIGHT. SO DO WE HAVE FOLKS HERE
IN 1200 WHO WOULD HAVE A
QUESTION OR COMMENT? AND WE'RE
GOING TO ASK YOU TO KEEP IT TO
ONE MINUTE, PLEASE. THANK YOU.
JULIA LEVIN WITH THE BIOENERGY
ASSOCIATION OF CALIFORNIA. I
JUST WANT TO COMMENT AS VICE
CHAIR GUNDA AND PRESIDENT
REYNOLDS HAVE HEARD ME SAY
BEFORE ONE OF THE BEST WAYS TO
MAINTAIN RELIABILITY AND CONTAIN
COSTS IS TO INCREASE THE
PORTFOLIO OF FIRM RENEWABLES,
BIOENERGY, GEOTHERMAL AND
RENEWABLE HYDROGEN. WE KNOW
WE'RE GOING TO NEED TENS OF
THOUSANDS OF MEGAWATTS AFFIRM
RENEWABLES, AND WE ALSO KNOW
FROM STUDIES BY ENVIRONMENTAL
DEFENSE FUND, THE CLEAN AIR TASK
FORCE AND OTHERS THAT THAT IS
THE BEST COST CONTAINMENT
MECHANISM WE HAVE. IT CAN REDUCE
OVERALL SYSTEM COSTS BY TWO
THIRDS. IT IS TIME TO ESTABLISH
A PORTFOLIO STANDARD FOR FIRM
RENEWABLES, THE SAME AS WE HAVE
FOR ENERGY STORAGE AND FOR
DISTRIBUTED GENERATION AND FOR
BROADER RENEWABLES. WE NEED
PROCUREMENT TARGETS NOW FOR FIRM
RENEWABLES BECAUSE THEY ARE LONG
LEAD TIME RESOURCES. NOTHING
WILL MAINTAIN RELIABILITY OR
CONTAIN COSTS BETTER THAN FIRM
RENEWABLES. THANK YOU. THANK YOU
. NEXT WITNESS. THANK YOU. I'M
ADAM STERN, EXECUTIVE DIRECTOR
OF OFFSHORE WIND, CALIFORNIA
TRADE GROUP. I JUST WANT TO
EMPHASIZE IN THE CONTEXT OF GRID
RELIABILITY, THE VALUE THAT
OFFSHORE WIND CAN BRING TO THE
RENEWABLE PORTFOLIO THAT
CALIFORNIA'S AND THE PROCESS OF
DEVELOPING OFFSHORE WIND IS
STRONGEST AT LATE IN THE
AFTERNOON, AND IN THE EARLY
EVENING JUST AT THE TIME WHEN
THE PEAK LOADS THAT WERE
DESCRIBED EARLIER IN THIS
HEARING OCCUR, AND SO YOU SHOULD
LOOK AT OFFSHORE WIND AS ONE OF
THE OPTIONS THAT'S BEING
CONSIDERED AS SOMETHING THAT CAN
STRENGTHEN LONG TERM GRID
RELIABILITY. IT ALSO POINTS TO
THE IMPORTANCE OF CENTRAL
PROCUREMENT, WHICH CAME UP
EARLIER IN THIS DISCUSSION
DISCUSSIONS THAT ARE HAPPENING
TODAY AND IN THE COMING DAYS
BETWEEN THE LEGISLATURE AND THE
GOVERNOR. WE'RE VERY HOPEFUL
THAT CENTRAL PROCUREMENT WILL
PASS TO ENABLE OFFSHORE WIND AND
OTHER LONG LEAD TIME RESOURCES
TO BE PURCHASED AND BROUGHT
ENABLE THIS CLEAN ENERGY TO COME
INTO THE GRID. THANK YOU VERY
MUCH. NEXT WITNESS. THANK YOU.
MR CHAIRMAN MEMBERS. I'M BILL
JULIAN. I'M A MEMBER OF THE
PUBLIC. I'VE PASSED OUT COMMENTS
WRITTEN COMMENTS. I JUST WANT TO
SAY IN THE ONE MINUTE THAT THE
ISSUE OF AFFORDABILITY AND THE
ISSUE OF RELIABILITY ARE
INEXTRICABLY INTERTWINED AND THE
AFFORDABILITY QUESTION REALLY
GOES TO THE PRICING OF ENERGY
AND ELECTRICITY DRIVEN BY THE
CAICEDO'S ALGORITHM. AND I THINK
YOU NEED TO UNDERSTAND THAT
CLEARLY AS YOU MOVE FORWARD
SECOND, THE ELEPHANT IN THE ROOM
IS HOW WE MANAGE THE LEGACY GAS
FLEET OVER TIME. THE NURKIC THE
NATIONALS FOR ELECTRICITY
RELIABILITY COUNCIL HAS SAID
THAT UNCOORDINATED RETIREMENTS
OF GAS PLANTS IS A MAJOR THREAT
TO RELIABILITY. STRATEGIC
BEHAVIOR BY SELLER SIDE DRIVE
PRICES IN CALIFORNIA TO
ASTRONOMICAL LEVELS AND THE
RECURRENT SHORTAGES THAT WE SEE
HAVE TO DO WITH THE BOTH THE
OPERATION AND THE PROGRESSIVE
RETIREMENT OF THE GAS LEAK
MANAGEMENT. THE GAS FLEET TIME.
THAT'S YOUR TIME. ONE MINUTE.
THANK YOU. THANK YOU NEXT
WITNESS. GOOD MORNING, SARAH
BRADFORD AND SENATE ENERGY
COMMITTEE REMEMBERS. MY NAME IS
ALISON HILLIARD HERE ON BEHALF
OF REIMAGINED POWER IN THE MICRO
GOOD RESOURCES COALITION. THANK
YOU FOR HOSTING THIS OVERSIGHT
HEARING ON RELIABILITY,
CHALLENGES AND PRIORITIZING
THESE ISSUES AT THE LEGISLATURE
. WE SUPPORT THE CREATION OF
DEBA, ANDY SGS PROGRAMS TO
INCENTIVIZE DISTRIBUTED ENERGY
RESOURCES. THAT CAN ENHANCE
RELIABILITY AND PROVIDE GRID
SUPPORT SERVICES WHEN NEEDED
DURING EMERGENCIES. WE ENCOURAGE
THE LEGISLATURE TO MORE CLOSELY
CONSIDER MICROGRIDS AS A
SOLUTION TO HELP ME IMMEDIATE
CUSTOMER ENERGY NEEDS, GIVEN OUR
INTERCONNECTION CHALLENGES AND
THE CAPACITY LIMITATIONS OF THE
GRID, MICRO GRIDS CAN BE
DEPLOYED QUICKLY ACROSS THE
STATE TO SUPPORT BUILDING AND
TRANSPORTATION ELECTRIFICATION
EFFORTS. PROVIDE CAPACITY AND
REDUCED LOADS ON DEMAND. THANK
YOU FOR YOUR CONSIDERATION AND
YOUR LEADERSHIP ON THIS
IMPORTANT ISSUE. THANK YOU.
EXCELLENT MISS MR CHAIR AND
MEMBERS BETH ALLAH. SO ON BEHALF
OF THE AGRICULTURAL ENERGY
CONSUMERS ASSOCIATION, WE REALLY
APPRECIATE THIS VERY IMPORTANT
CONVERSATION. UM, WE ARE VERY,
VERY CONCERNED ABOUT RATES, UM
AS REPAIRS ARE ABSORBING VERY
HIGH COSTS OF WILDFIRE
MITIGATION. WHAT WE HAVE TO DO
TO FORTIFY OUR GRID. WE WANT TO
MAKE SURE THAT THE LEGISLATURE
CONTINUES TO INVEST IN HELPING
KEEP SOME OF THOSE COSTS OUT OF
RATES. YOU KNOW, WE'RE PUSHING
OUR AGRICULTURAL BUSINESSES WHO
DON'T HAVE, YOU KNOW ABILITY TO
CHARGE CUSTOMERS MORE TO JUST
ABSORB THESE COSTS, PUSHING THEM
OUT OF THE STATE. SO ANYTHING WE
CAN DO AS THE LEGISLATURE TO
HELP KEEP RATES LOW AND TAKE
SOME OF THESE RELIABILITY ISSUES
INTO THE STATE FUNDS OUT OF
RATES IS GOING TO BE CRITICALLY
IMPORTANT. SO WE THANK YOU FOR
YOUR WORK ON THIS. THANKS HI.
THANK YOU. MEMBERS OF THE
COMMITTEE. I'M HERE TO REPRESENT
THE CALIFORNIA ENVIRONMENTAL
JUSTICE ALLIANCE. MY NAME IS
ALEXIS AND WANTED TO EXPRESS
OPPOSITION AND CONCERNS WE'VE
HAD WITH MANY OF THE RECENT
ACTIONS THE STATE HAS TAKEN IN
THE NAME OF ELECTRIC RELIABILITY
. WE WANT TO EMPHASIZE THAT WE
CANNOT SOLVE OUR RELIABILITY
CRISIS BY INTENSIFYING OUR
CLIMATE AIR QUALITY CRISIS,
ESPECIALLY AS THIS COMES AT THE
EXPENSE OF WORKING CLASS
COMMUNITIES OF COLOR. WE'VE BEEN
GREATLY CONCERNED WITH THE
STATE'S DECISIONS TO EXTEND THE
LIFE OF THE ONES WHO COOLING GAS
PLANTS THAT IT PROMISED EJ
COMMUNITIES TO RETIRE, GIVEN
THAT OUR COMMUNITIES ALREADY
SUFFERED THE WORST IMPACTS FROM
HEAT WAVES AND AIR POLLUTION. WE
ALSO WANTED TO EXPRESS THAT
INSTEAD OF PUTTING BILLIONS OF
DOLLARS INTO POLLUTING FOSSIL
FUEL INFRASTRUCTURE. WE URGE THE
STATE TO INVEST IN CLEAN AND
RELIABLE ENERGY SOLUTIONS THAT
PRIORITIZE ACCESS AND BENEFITS
TO FRONTLINE COMMUNITIES, SO
DEFINITELY AGREE WITH SOME OF
WHAT OTHERS HAVE BEEN SPEAKING
ABOUT IN TERMS OF USING
STRATEGIC RELIABILITY. RESERVE
FUNDING EXCLUSIVELY FOR, UH
CLEAN, RELIABLE SOLUTIONS SUCH
AS COMMUNITY SOLAR AND STORAGE,
COMMUNITY BASED MICROGRIDS
ENERGY EFFICIENCY AND DEMAND
RESPONSE. URGES THE TROOP
AGENCIES TO DO THIS. THANK YOU.
THANK YOU. WITNESS THANK YOU, MR
CHAIR AND MEMBERS. MEGAN LEBRON
BEHALF OF WESTERN FREEDOM, WANT
TO ACKNOWLEDGE THE COMMITTEE AND
THE COMMITTEE STAFF FOR THIS
FOCUS ON ELECTRIC RELIABILITY
ALSO WANT TO CONGRATULATE CAISO
ON THE FILING OF THE TARIFF WITH
FARC FOR THE EXTENDED DAY AHEAD
MARKET THINK THAT ALL OF THESE
DEVELOPMENTS ARE REALLY POSITIVE
AND GETTING US TO RELIABILITY
AND ALSO WANT TO ACKNOWLEDGE
COMMISSIONER GUNDA AND PRESIDENT
REYNOLDS FOR THE LETTER THAT WAS
MENTIONED IN THE Q AND A THINK
THAT THE COLLABORATION
COORDINATION WITH OUR WESTERN
STATE COLLEAGUES IS GOING TO BE
VERY IMPORTANT AS WE LOOK
FORWARD TO WHAT ELSE WE NEED TO
BE DOING TO ENSURE GREATER
RELIABILITY AND AFFORDABILITY
AND LOOK FORWARD TO
PARTICIPATING IN THOSE
DISCUSSIONS. MOVING ON. THANK
YOU. GOOD MORNING TO REMEMBERS
REBECCA MARCUS ON BEHALF OF THE
UNION OF CONCERNED SCIENTISTS.
AS RECENTLY AS THIS MONTH, THE
STATE ONCE AGAIN SHOWS THE
EXTEND THE LIVES OF THREE
ANTIQUATED AND DIRTY GAS POWER
PLANTS AND THE NAME OF EXTRA
INSURANCE FOR GRID RELIABILITY.
IN OUR VIEW, THERE IS SUCH A
THING AS TOO MUCH INSURANCE AND
THE STATE MUST START A CONCERTED
EFFORT TO CLOSE GAS POWER PLANTS
AS SOON AS POSSIBLE. LOOKING
FORWARD. THERE ARE ACTIONS WE
CAN TAKE TO MAKE THE GRADE
CLEANER, MORE RELIABLE AND MORE
RESILIENT. WE KNOW WE NEED TO
BRING MORE RENEWABLES AND
STORAGE ONLINE. WE AGREE THAT
EXPANDING COOPERATION AND ENERGY
SHARING AMONG THE WESTERN STATES
COULD BOLSTER OUR GOOD
RELIABILITY AND STREAMLINE THE
CLEAN ELECTRICITY TRANSITION FOR
TENS AND MILLIONS OF PEOPLE. WE
APPRECIATE THE STEPS THE STATE
HAS TAKEN RECENTLY TOWARDS THIS
AND LOOK FORWARD TO CONTINUED
CONVERSATIONS. FURTHER RIGHT OF
PLAYING DISTRIBUTED ENERGY
RESOURCES LIKE ROOFTOP SOLAR,
COMMUNITY SCALE SOLAR AND BIO
DIRECTIONAL ELECTRIC CARS AND
SCHOOL BUSSES. WE CAN REDUCE THE
NEED FOR ADDITIONAL UTILITY
GRADE INFRASTRUCTURE AND BOLSTER
LOCAL GRID RESILIENCE, WHICH IS
NEEDED TO CLOSE DOWN MANY OF THE
GAS POWER PLANTS STILL ONLINE IN
THIS STATE. THANK YOU. PATRICK
WELSH, CALIFORNIA MUNICIPAL
UTILITIES ASSOCIATION REPRESENT
PUBLIC POWER AGENCIES THAT
PROVIDE POWER TO 25% OF THE
STATE. FIRST JUST WANT TO THANK
THE CHAIR OF THE COMMITTEE FOR
HOLDING THIS HEARING. I THINK
THIS IS REALLY PART OF A SERIES
OF HEARINGS AND FOCUSES ON
RELIABILITY AND ALSO
AFFORDABILITY. WE THINK THIS IS
AN ONGOING CONVERSATION. I THINK
THAT'S IMPORTANT TO KEEP FRONT
OF MIND. SO WE APPRECIATE THAT
ALSO WANT TO APPRECIATE THE
PANELISTS TODAY, SEEMA IS
WORKING WITH EACH OF THESE
AGENCIES IN A NUMBER OF
DIFFERENT AREAS. RELATED TO WHAT
MR SARTO SAID. THERE ARE A LOT
OF BALLS IN THE AIR. IT IS
DIFFICULT TO MANAGE, BUT I THINK
THERE'S A LOT OF COLLABORATION
GOING ON. I JUST WANT TO
HIGHLIGHT THAT FOR THE COMMITTEE
AS WELL. THE RESOURCES OF THE
LEGISLATURE PROVIDED THROUGH THE
BUDGET OF PAST COUPLE OF YEARS.
WE ARE WORKING WITH THE AGENCIES
TO IMPLEMENT THOSE RESOURCES
WHERE WE CAN ALSO WANT TO
HIGHLIGHT THAT. WE THINK THE SP
100 PROCESS AT THE C C. THE PUC
RB KICKED OFF LAST WEEK IS GOING
TO BE IMPORTANT PLANNING
PROCESS. WE'RE GOING TO LEARN A
LOT FROM THAT. WE'RE HIRING
CONSULTANTS TO ENGAGE WITH THAT
AS WELL. AND THEN FINALLY JUST
WANT TO SAY WHAT MR MAINZER SAID
ABOUT THE GRID CHANGING ON A
YEARLY BASIS. ARE MEMBERS SEE
THAT TOO MANY OF OUR MEMBERS ARE
IN THE CASE OF SYSTEM. MANY
MEMBERS OPERATE THEIR OWN
SYSTEMS, AND THEY HAVE THEIR OWN
GRID OPS CENTERS, AND THEY SEE
THAT TOO, AND THAT'S SOMETHING.
WE'RE TRYING TO BUILD THE PLANE
AS WE FLY, AND WE'RE ALSO TRYING
TO POWER ALL THE CARS AND THE
NEXT 10 TO 20 YEARS. WE'RE
REALLY DOING TWO HUGE
TRANSITIONS AT THE SAME TIME.
AND REALLY JUST WANT TO
EMPHASIZE THAT AND HIGHLIGHT
THAT FOR THE COMMUNITY. THANK
YOU FOR YOUR TIME. THANK YOU.
NEXT WITNESS. THANK YOU. GOOD
MORNING, CHAIR AND MEMBERS
MEREDITH ALEXANDER HERE ON
BEHALF OF MICROSOFT AS A
SIGNIFICANT COMPONENT OF THEIR
BUSINESS PLATFORM. MICROSOFT
CONSTRUCTS OWNS AND OPERATES
DATA CENTERS AROUND THE WORLD
WITH A GROWING PRESENCE IN
CALIFORNIA AND THEREFORE
ENSURING RELIABLE, RESILIENT AND
LOW CARBON ENERGY SUPPLY IS A
CRITICAL PRIORITY. THEREFORE WE
BELIEVE IT'S REALLY IMPORTANT
FOR CALIFORNIA AGENCIES TO USE A
TRANSPARENT PLANNING STANDARD
FOR RELIABILITY ASSESSMENTS AS
DISCUSSED TODAY. AND WE HAVE
COMMENTED AT THE PUBLIC
UTILITIES COMMISSION THAT WE
THINK IT'S VERY IMPORTANT TO USE
A ONE IN 10 LOSS OF LOAD
ANALYSIS AS A WIDELY ADOPTED AND
WELL ESTABLISHED METHOD TO
ENSURE ACCEPTABLE STANDARDS
WITHOUT OVERBURDENING RATE PAIRS
, CONSISTENT WITH YOUR
DISCUSSION TODAY. UM AND WE JUST
WANTED TO HIGHLIGHT THAT IS WHAT
WE'VE BEEN REQUESTING AT THE
PUBLIC UTILITIES COMMISSION, BUT
WE HAVE NOT YET SEEN A POLICY
CHANGE ADOPTED AND THANK YOU SO
MUCH FOR YOUR CONSIDERATION.
THANK YOU. SHE NO MORE WITNESSES
HERE. MODERATOR CAN WE GET THOSE
PHONE LINES REAL QUICK, AND FOR
THOSE INDIVIDUALS WHO HAVE
QUEUED UP THE OPPORTUNITY TO
CALL IN THANK YOU, MR CHAIR.
LADIES AND GENTLEMEN, THE PHONE
LINES IF YOU DO WISH TO MAKE
PUBLIC COMMENT TODAY, PLEASE
PRESS ONE, FOLLOWED BY 01
FOLLOWED BY ZERO CAN YOU GIVE US
THE NUMBER OF CALLS IN QUEUE
JUST FOR TIMING? YES ONE MOMENT
. WE HAVE TWO QUEUED UP. THEY
SHOULD BE WITH US MOMENTARILY
WITH AN OPERATOR. ANYBODY ELSE.
PLEASE TAKE THIS OPPORTUNITY AND
PRESS ONE, FOLLOWED BY ZERO. AND
LET'S GO TO LINE. 31, YOU ARE
OPEN. 31, PLEASE GO AHEAD. CAN
YOU HEAR ME? YES. OKAY UM MATT
BAKER, DIRECTOR OF THE PUBLIC
ADVOCATE'S OFFICE. WE'RE AN
INDEPENDENT STATE ENTITY. HOW TO
HOUSE THE PUC WITH THE MISSION
OF MAKING UTILITY BILLS
AFFORDABLE, HAVE THREE QUICK
POINTS. FIRST GRID, THE
LIABILITIES AND EQUITY, PUBLIC
HEALTH AND ECONOMIC IMPERATIVE.
SUPER IMPORTANT THAT WE NOT LOSE
POWER TO THE STATE HAS MADE BIG
STRIDES AND RELIABILITY AND
LEGISLATIVE SUPPORT FOR
RELIABILITY HAS BEEN GOOD FOR
RATEPAYERS. WE APPRECIATE THE
RECENT LEGISLATION AND BUDGETS
THAT SUPPORT RELIABILITY
PROGRAMS WITH NOTABLE GENERAL
FUND SUPPORT FOR COMPLEMENTARY
CPUC, DWR AND GDC RELIABILITY
PROGRAMS. THESE PROGRAMS HELP
REDUCE ENERGY BURDENS, AND I
SHOULD JUST NO ENERGY RATES HAVE
RISEN 75 TO 100% ACROSS
CALIFORNIA'S LARGE IR USE. I
ALSO BELIEVE WE SHOULD SUPPORT
THE LEGISLATURE'S RECENT FOCUS
ON PERMITTING REFORM AND BELIEVE
THERE'S MERIT TO CENTRAL
PROCUREMENT AUTHORITY. LAST
POINT IS, YOU KNOW THAT YOU
CLEAN ENERGY TRANSITION IS
DIFFICULT AND IMPROVE
RELIABILITY HELPS OUR TRANSITION
FOR GLOBAL LEADER REMOVING INTO
UNCHARTED TERRITORY. UM WE'RE
NOT SITTING IDLE. YOU KNOW, THE
STATE HAS DIRECTED HISTORIC
CLEAN ENERGY PROCUREMENT, AND
THESE INVESTMENTS IN RELIABILITY
ALLOW FOR DECARBONIZATION. AND
HELP MAKE IT FASTER AND LESS
COSTLY. THANK YOU FOR THE
OPPORTUNITY TO SPEAK. THANK YOU
. ONE MORE REMINDER ONE FOLLOWED
BY ZERO IF YOU WOULD LIKE TO
TESTIFY FOR PUBLIC COMMENT AT
THIS TIME AND PLEASE GO AHEAD
LINE 38. MORNING MR CHAIRMAN,
MEMBERS TO THE OCEAN WITH
STORIES AND CONWAY REPRESENT A
HOST OF AGRICULTURAL AND
BUSINESS INTERESTS ACROSS THE
STATE, PREDOMINANTLY IN RURAL
COMMUNITIES. WE'D LIKE TO ECHO
MANY OF THE COMMENTS FROM TODAY
AND ASKED THE LEGISLATURE
ADMINISTRATION THE ATTENTIVE AND
RESPONSIVE TO REGIONAL
CHALLENGES, RELIABILITY AND
ULTIMATELY COST THE RATEPAYERS.
MANY OF OUR AGRICULTURAL
PROVIDERS IN STATE HAVE
REPEATEDLY SEEN ISSUES WITH
POWER PROVISION AND EXPECT TO
CONTINUE TO DO SO. THESE
FACILITIES, SUPPORT LOCAL JOBS,
ECONOMIC OPPORTUNITY AND BROADER
IF IT'S TOO PREDOMINANTLY
DISADVANTAGED COMMUNITIES.
BEFORE WE ENCOURAGE THE SENATE
AND THE ASSEMBLIES CONTINUE TO
MONITOR THE ISSUES AND THE
ANNUALLY AND COURSE CORRECT,
INCLUDING THROUGH AND COST
OFFSETS AS NEEDED TO LEAD A
TRANSITION WITHOUT LEAVING
BEHIND. THANK YOU. THANK YOU. MR
CHAIR. WE HAVE NO OTHER
PARTICIPANTS QUEUING UP AT THIS
TIME. ALRIGHT WELL, I'LL BRING
IT BACK TO THE PANEL. REAL QUICK
. UM AT LEAST THREE OF MY
COLLEAGUES MADE REFERENCE TO THE
REGIONALIZATION LETTER AND I
JUST WANT TO GO ON RECORD IN
STATING THAT I THINK IT'S
IMPERATIVE DEBT. WE HAVE A CLEAR
UNDERSTANDING OF WHAT THE
ADMINISTRATION'S INTENTIONS ARE
GOING FORWARD AND MAKING SURE
THAT WE WERE THE PUBLIC'S
ENGAGED WITH THIS PROCESS AND BE
CLEAR. THAT WE HAVE STEAK, HARD
STAKEHOLDERS, INVOLVEMENT AND
HEAR THEIR VOICES AND ALSO
INCLUDE THE LEGISLATURE AND I
JUST WANT TO BE BLUNT. WE DON'T
WANT TO BE BLINDSIDED AT THE
LAST MINUTE AND JAMMED WITH A
PROPOSAL THAT WE HAVEN'T SEEN OR
HAD THE OPPORTUNITY TO
PARTICIPATE IN. SO WHAT IS THE
POLICY FOR PUBLIC ENGAGEMENT AND
WHAT'S THE TIMELINE? YEAH THANK
YOU. CHAIR AT THIS POINT, AS WE
TRIED TO MENTION EARLIER, SO WE
ARE RIGHT NOW, JUST KIND OF
TALKING TO OUR WESTERN
COMMISSIONER COLLEAGUES ON WHAT
THIS COULD LOOK LIKE. I THINK
THE NEXT SIGNIFICANT STEPS WOULD
BE ONCE WE HAVE AN AGREEMENT
ACROSS THE WESTERN COMMISSIONERS
THAT THIS IS A GOOD IDEA, AND
THEN WE WILL HAVE A PROCESS TO
SET THE TABLE FOR STAKEHOLDERS.
TO FLESH OUT THE IDEA MORE, AND
I THINK WE WOULD IMAGINE THAT WE
WILL COME TO SOME SORT OF AN
INFORMATIONAL HEARING WITH YOU
TO PROVIDE AN UPDATE ON WHERE WE
ARE, AND WE EXPECT TO BRIEF YOU
FULLY AS THINGS PROGRESS. LAST
MONTH. WE HAD OUTAGE CAN EXPLAIN
. YOU KNOW WHAT WAS THE CAUSE OF
THAT ALERT? I SHOULD SAY
EMERGENCY ALERTS AND DID YOU SEE
THAT COMING? AND, UM WHAT HAVE
YOU FOUND OUT SINCE THEN? SER,
UM, SHARE WE? YES HIS BOTTOM
LINE IS THAT BACK ON THE EVENING
OF JULY 20TH REFERENCE LITTLE
BIT EARLIER, WE RAN INTO A
ACTUALLY FELT AS THOUGH THE
SYSTEM WAS SET UP WELL THAT
EVENING THERE WAS A LOT OF
EXTERNAL DEMAND ON THE SYSTEM IS
VERY HOT OUTSIDE OF CALIFORNIA,
AND THERE WAS QUITE A BIT
HAPPENING ON THE GRID AS WE WERE
RIGHT IN THE MIDDLE OF THE NET
PEOPLE. WE JUST WE JUST HAD A
SERIES OF UNCERTAINTIES THAT
SORT OF PULLED TOGETHER AS I
MENTIONED SOME HIGHER LET'S
LET'S IMPORTS AVAILABLE TO US
AND EXPECTED SOME CONGESTION ON
THE TRANSMISSION SYSTEM AND
GENERALLY SOME OF THE BATTERIES
SLIGHTLY OFF THEIR DISPATCH. SO
THOSE THINGS COMPOUNDED TO PUT
US INTO SLIGHTLY DISTRESSED
CONDITIONS. WE HIT OUR RESERVES
FOR ABOUT AN HOUR. WE'RE ABLE TO
ACCESS SOME RELIABILITY DEMAND
RESPONSE CAPABILITY. WE REALLY
APPRECIATE THE INDUSTRIAL
CUSTOMERS THAT MADE THAT
CAPABILITY AVAILABLE TO US
DURING THAT PERIOD OF TIME AND
WERE ABLE TO GET OUT OF THOSE
CONDITIONS WITHIN ABOUT AN HOUR,
SO NO BROADER DISRUPTIONS TO
SERVICE BUT IT REALLY SHOWED US
THAT THE GRID AT THAT POINT AS
WE MENTIONED EVERY YEAR WE'RE
DEALING WITH DIFFERENT
CONDITIONS BOTH ACROSS THE WEST
AND WITHIN CALIFORNIA. WE JUST
NEEDED TO PUT A LITTLE BIT MORE
OF A MARGIN ON THE SYSTEM A
LITTLE BIT MORE BUFFER AND WERE
ABLE TO GET TO THE SUBSEQUENT
EVENTS AND ALL THE WAY THROUGH
AUGUST THROUGH, SOME WOULD HAVE
GENERALLY BEEN, YOU KNOW,
RELATIVELY TOUGH CONDITIONS
AROUND THE WEST HAVE BEEN ABLE
TO MOVE THROUGH THOSE WITHOUT
ANY SIGNIFICANT RELIABILITY
EVENTS AND BROADER
INTERCONNECTION RELIABILITY. SO
THANK YOU FOR ASKING, AND BY THE
WAY, WE ARE IN THE PROCESS OF
PRODUCING A FULLY COMPREHENSIVE
REPORT ON ALL OF THE VERY
DETAILED FULL REPORT WILL BE
AVAILABLE RIGHT IN THE EARLY
PART OF SEPTEMBER WILL MAKE THAT
AVAILABLE TO YOU AND ALSO WHAT
WE'RE HOLDING A STAKEHOLDER CALL
JUST TO MAKE SURE THAT THERE'S
MAXIMUM TRANSPARENCY ABOUT WHAT
HAPPENED THERE ON THE 20TH. AND
THERE'S BEEN MUCH TALK ABOUT
SHUTTING DOWN TRADITIONAL
GENERATION. I'M NOT AN
ELECTRICAL ENGINEER, BUT I KNOW
ENOUGH TO KNOW THAT SOLAR
PRODUCES NO INERTIA. WHY IS IT
EVER NEVER ANY DISCUSSION THAT
YOU NEED THOSE GENERATION PLANTS
? THE MOVE THAT SOLAR ELECTRON
DOWN THE WIRE? WHY AREN'T WE
HAVING THAT HONEST DISCUSSION?
WELL YOU'RE CORRECT, SIR, THAT
IT CERTAINLY DOESN'T PROVIDE ANY
OF THE TRADITIONAL INERTIA WHERE
THERE IS A LOT OF WORK, THOUGH I
WILL SAY TO BE LOOKING AT
INVERTER BASED RESOURCES IN
GENERAL LIKE SOLAR AND TRYING TO
UNDERSTAND HOW THEY CAN MAKE
ADDITIONAL CONTRIBUTIONS TO
RELIABILITY, WHETHER IT'S
THROUGH EFFICIENT, EFFECTIVE,
EFFICIENT CONTRACT AILMENTS OR
ACTUALLY PULLING TOGETHER TO
HELP SUPPORT GRID RELIABILITY IN
LOCAL AREAS, GRID FORMING
INVERTERS. A LOT OF RESEARCH
WERE INVOLVED IN ACTUALLY AN
INTERNATIONAL CONSORTIUM WITH
UTILITIES ACROSS THE WORLD WORLD
WHO ARE LOOKING AT THE
CHALLENGES AND THE POTENTIAL
TECHNOLOGICAL INNOVATIONS
ASSOCIATED WITH SOLAR AND OTHER
INVERTER BASED RESOURCES. SO
YOU'RE EXACTLY RIGHT. WE'RE
WATCHING IT. SOME OF THE
TRADITIONAL RESOURCES ARE STILL
PROVIDING THAT, BUT WE'LL
CONTINUE TO PUSH. THE DISCUSSION
USED TO BE CONTINUED BECAUSE
CONTINUING FOCUS HAS SHUT THEM
DOWN AND YOU'RE TALKING ABOUT
MAJOR. YOU'RE TALKING ABOUT
RELIABILITY. WE NEED TO TALK
ABOUT WHAT'S NEEDED IN ORDER TO
PROVIDE THAT RELIABILITY AND
WE'RE NOT HAVING THAT DISCUSSION
BECAUSE THOSE PLANTS ARE STILL
NEEDED. IF YOU WANT TO KEEP THE
LIGHTS IF SANDS AND BUTS ABOUT
IT, AND PEOPLE EVEN TALK ABOUT
WHEN WE SHUT DOWN SANTA NO FREE
AND IT SAYS ALWAYS NO LOSS IN
POWER. SENDING NO FREE WAS NEVER
FOR BASE LOAD. IT WAS FROM
MOVING ELECTRONS DOWN THE WIRE
TO GET IT TO SAN DIEGO. HAVE THE
NURSERY TO MOVE THOSE ELECTRONS
DOWN THE WIRE, BUT NOBODY HAS
THAT DISCUSSION AS WELL. SO WE
NEED TO HAVE HONEST DISCUSSIONS
ABOUT WHY THESE PLANTS EXISTED
AND WHAT THEY DO AND AGAIN,
RENEWABLE ENERGY IS NOT DISPATCH
HERBAL, SO YOU'RE GONNA STILL
NEED TRADITIONAL GENERATION
UNTIL IT BECOMES A DISPATCHER
WAS INTERMITTENT AT BEST, AND WE
JUST ARE NOT HAVING THOSE HONEST
CONVERSATIONS WHEN WE TALK ABOUT
RELIABILITY, SO I WOULD JUST
LOVE TO HEAR A LITTLE BIT MORE
ABOUT THAT NOW. ANY COMMENTS ON
THAT? WELL I THINK YOU'RE
PUTTING YOUR FINGER ON A VERY,
VERY IMPORTANT POINT. AND I
THINK ONE OF THE REASONS WE'VE
TALKED TODAY ABOUT THE FACT THAT
WE'RE IN THE MIDDLE COVERS THE
MIDDLE OF A VERY SIGNIFICANT
TRANSITION AND STILL HONESTLY
STILL KIND OF IN THEIR
RELATIVELY EARLY STAGES OF THAT
TRANSITION. WHEN YOU THINK ABOUT
2 2045 AND SO OUR TRADITIONAL
THERMAL RESOURCES IN CALIFORNIA
ARE STILL PLAYING A CRITICAL
ROLE IN RELIABILITY. AND THEY'RE
ON THE SYSTEM. AND AS WE'VE
HEARD, SOME OF THEM VERY
DIFFICULT DECISIONS TO PLACE
THEM INTO THE STRATEGIC RESERVE
, BUT TO HAVE THEM SO TO YOUR
EXACT POINT SO THAT WE CAN KEEP
THE LIGHTS ON FOR CALIFORNIANS
BECAUSE WE RECOGNIZE HOW
ESSENTIAL THAT IS. SO WE WILL
CONTINUE THAT DIALOGUE, BUT AT
THE SAME TIME, I THINK WE HAVE
ALSO HEARD THE COMMITMENT TO
TRYING TO GET TO THAT CLEAN
ENERGY FUTURE AND IT'S GOING TO
REQUIRE A TREMENDOUS AMOUNT OF
TECHNOLOGICAL INNOVATION. AND SO
TO YOUR POINT, WE WILL MAKE SURE
TO KEEP THESE ISSUES SQUARELY ON
THE RADAR SCREEN. BE
INTELLECTUALLY HONEST ABOUT THEM
AND TALK ABOUT BOTH. THE UPSIDES
AND THE CHALLENGES AND ALSO
MENTIONED THE FACT THAT TWO
YEARS AGO, WE WOULD HAVE NOT MET
OUR CLIMATE GOALS IF IT WASN'T
FOR THOSE TRADITIONAL GAS PARK
PLANT. WHEN WE TOOK COLE OFFLINE
IT WAS BECAUSE OF THOSE GAS
POWER PLANTS SAID AMERICA MET
ITS CLIMATE GOALS, BUT NOBODY
WANTS TO HAVE THAT CONVERSATION
AS WELL. SO THEY'RE STILL NEEDED
. THEY'RE STILL PLAY A KEY ROLE
AND MOVING TO THIS CLEAN
ENVIRONMENT THAT WE WANT. I
MEAN, I WAS A SCIENCE MAJOR. SO
I UNDERSTAND SCIENCE IS I'M NOT
DENYING THAT, BUT FAR TOO OFTEN
WE'RE PICKING WINNERS OR LOSERS
HERE WHEN WE TALK ABOUT ENERGY
HERE IN CALIFORNIA, AND THAT'S
THE PART THAT TROUBLES ME. AND
WHEN WE TALK ABOUT RELIABILITY,
WE STILL NEED THOSE RESOURCES
AND I WOULD SAY, AND THEY HELPED
US MEET OUR CLIMATE GOALS HERE
IN THE UNITED STATES, PLEASE.
ACTUALLY TARIFF. YOU MAY ALLOW
ME JUST WANTED ACTUALLY
EMPHASIZE SOME EXCELLENT WORK
THAT THE CASE SO DOES IN THEIR
ANNUAL TRANSMISSION PLANNING
PROCESS, AND THEY DO LOOK AT
ISSUES OF INERTIA AND OTHER GRID
RELIABILITY REQUIREMENTS ON THE
GRID, SO I THINK THAT DETAILED
WORK IS BEING DONE. BUT I THINK
WHAT ELLIOT HAS SPOKE TO WAS
REALLY KIND OF THE LOOKING OUT
INTO THE FUTURE, THINKING THAT
WE NEED TO HAVE AS WELL. AND MY
FINAL QUESTION IS HELP ME
UNDERSTAND HOW OVER 40 LOAD
SERVING ENTITIES HELP AND
RELIABILITY WHEN WE'RE ALL
STICKING OUR STRAW INTO THE SAME
POOL OF RESOURCES, THERE IS NO
GREATER RESOURCES FOR A SP OR TO
THAN IT IS FOR THE INVESTOR
OWNED UTILITIES. SO WASN'T IT
BETTER CONTROLLED WHEN IT WAS?
YOU KNOW THE PUBLIC UTILITIES? I
MEAN PUBLIC ON UTILITIES AND
INVESTOR OWNED UTILITIES. NOW WE
HAVE 40 DIFFERENT ENTITIES
YOU'RE SEEING OUT HERE. BUYING
THE SAME RESOURCE. IT'S JUST NO
MORE AVAILABLE TO ANYONE ELSE
THEN. WHAT WAS AVAILABLE TO THE
UTILITY INITIALLY, SO AM I RIGHT
OR WRONG ABOUT THAT. THAT'S
RIGHT. WE DO HAVE 40/40 LOAD
SERVING ENTITIES AND YES,
THEY'RE ALL OUT THERE PROCURING,
BUT WE ALSO HAVE HUNDREDS OF
PROJECTS. AND SO YOU KNOW, THERE
WERE A LOT OF PROJECTS FOR THOSE
LOAD SERVING ENTITIES TO INVEST
ONLINE PURCHASE FROM THOSE SAME
PROJECTS AS WELL. THAT'S WHAT WE
DID FOR ALMOST 100 YEARS. AND
YOU KNOW, I THINK WE'RE SEEING A
LOT OF INNOVATION FROM THE
ACA'S. AND THERE ARE ALSO YOU
KNOW, SUBJECT TO THE SAME
PROCESS TO PROVIDE A COST
EFFECTIVE PORTFOLIO. AND SO WE
HAVE THE STANDARDS THAT APPLY TO
THE CCS AND ALSO IN IN FOR
RESOURCE ADEQUACY. THEY STEPPED
FORWARD AND MEET THOSE STANDARDS
AND PROVIDE THEIR PORTFOLIOS.
THEY'RE PART OF THE CLEAN ENERGY
TRANSITION. AND AGAIN, THEY'RE
THEY'RE DEVELOPING PROGRAMS
THROUGH BèC PROGRAMS AS WELL AS
THE INVESTOR OWNED UTILITIES.
OKAY WELL, I WANT TO THANK YOU
GUYS FOR YOUR TESTIMONY TODAY
AND ALL THE GREAT INFORMATION
AND ALSO THE PUBLIC WHO HAD
OPPORTUNITY TO SPEAK HERE IN,
UH, ROOM 1200, AS WELL AS THE
INDIVIDUALS WHO CALLED IN AND
THERE'S A LOT OF WORK THEY HAD
OF US WHEN WE TALK ABOUT
RELIABILITY, IS IT AND ONE THING
THAT WASN'T MENTIONED DURING
THIS DISCUSSION WAS THE NEED TO
BUILD EVEN GREATER TRANSMISSION.
BECAUSE IF YOU'RE GOING TO
CONTINUE TO BUILD THESE
RESOURCES, YOU HAVE TO GET IT TO
THE SOURCE. AND NOWHERE IN THERE
HAVE WE HAD THE DISCUSSION ABOUT
TRANSMISSION AND DISTRIBUTION,
AND THAT'S CRITICALLY APART OF
RELIABILITY AS WELL. SO I HOPE
THAT'S ENOUGH, YOU KNOW IN THE
PLAN, AND I KNOW IT IS, BUT I
JUST WANT TO HAVE GREATER
CONVERSATION BECAUSE THAT'S WHAT
WE'RE HEARING FROM OUR
CONSTITUENTS. THAT'S WHAT WE'RE
HEARING FROM A LOT OF MY
COLLEAGUES HERE, NOT ON THIS
COMMITTEE. ABOUT YOU KNOW, HOW
DO YOU GET IT? AND I WORK FOR
UTILITY AND I KNOW ONE OF THE
BIGGEST CHALLENGES IS WHEN WE
BUILT SOLAR BUILDING TO HAVE TO
BE POWER LINES AND SUNRISE PAR
LINES AND THE SAME FOLKS WHO
WERE ASKING FOR THE RENEWABLES
WERE THE ONES THAT DON'T PUT
THOSE POLLS IN MY BACKYARD. SO
YOU CAN'T HAVE IT BOTH WAYS. SO
EITHER YOU'RE TRULY ABOUT
WANTING THIS TO BE BUILT, BUT
YOU CAN'T SAY PUT IT IN SOMEBODY
ELSE'S BACKYARD. SO THOSE ARE
SOME OF THE DISCUSSION THAT
NEEDS TO BE HAD TO SO I'LL JUST
CLOSE. CALIFORNIA HAS AMBITIOUS
CLIMATE GOALS AND, UM AND IT'S
FOR ALL THE RIGHT REASONS. BUT
WE CANNOT FORGET THE IMPACT AND
THE POLICIES THAT HAVE DIRECTLY
ON OUR CONSTITUENTS IN THE COST
OF THESE PROJECTS HAS BEEN
MENTIONED AS WELL. SO ARE YOU
PANEL? YOU'VE SHOWN GREAT, YOU
KNOW, UNDERSTANDING OF THOSE
CONCERNS, AND I KNOW EVERY
TEACHER WANTED EACH AND EVERY
ONE OF YOU ARE VERY MUCH
COMMITTED TO GETTING THIS RIGHT.
BUT I THINK WE NEEDED LIKE, SAY
, NOT BE AS ASPIRATIONAL AND BE
MORE THOUGHTFUL AS WE HEARD FROM
MY COLLEAGUES THERE TO MAKE SURE
THAT WE DO GET IT RIGHT. IT'S
ONE THING THAT SET GOALS, BUT
WE'VE GOT TO MAKE SURE THAT
THOSE GOALS CAN BE ACHIEVED. SO
I WANT TO THANK EVERYBODY WHO
PARTICIPATED IN THE DAY. YOU
HAVE MY COMMITMENT AS CHAIR OF
THIS COMMITTEE TO CONTINUE TO
WORK AND HAVING DISCUSSIONS AND
HAVING OVERSIGHT HEARINGS, SUCH
AS THIS TO ALLOW IT TO GET IT
RIGHT BECAUSE WE, AS LEGISLATORS
DON'T KNOW AT ALL MANY TIMES. WE
THINK WE'RE EXPERTS IN THESE
SUBJECT AREAS AND WE'RE NOT SO
WE NEED TO DEPEND ON FOLKS THAT
DO IT ON A DAILY BASIS IN ORDER
TO GET IT RIGHT, BUT WE ALSO
HAVE TO BE STILL CAPTAIN FORMED
AS I STATED ON THE
REGIONALIZATION. WE WANT TO BE
PARTNERS ON ALL OF THIS. IN
ORDER TO GET IT RIGHT. SO I WANT
TO THANK EVERYBODY FOR THEIR
PARTICIPATION DAY AND THANK THE
CALLERS AND THOSE INDIVIDUALS
WHO MIGHT NOT BEING ABLE TO
TESTIFY THE DAY SO THAT'S GOING
TO CONCLUDE OUR HEARING. AND I
APPRECIATE EVERYBODY AGAIN FOR
YOUR PRESENTATION STAND
ADJOURNED.