San Francisco F2F Agenda Mar 23 2015 Agenda Morning 9a12n Opening amp Introductions Paul De Martini DRP Methodology Mark Esquerra DPP Alignment Lorenzo Kristov 12n 1p Lunch ID: 527109
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MTS Working GroupSan Francisco F2F Agenda
Mar. 23,
2015Slide2
Agenda
Morning (9a-12n)
Opening & Introductions - Paul De MartiniDRP Methodology - Mark Esquerra
DPP Alignment - Lorenzo Kristov
12n - 1p Lunch
Afternoon (1-3:30p)
2015 Plan - Paul De MartiniCA Proceedings (Technical Alignment) - AllNext Steps
Morning & afternoon breaks as neededSlide3
Optimal Location Values & MethodologySlide4
Subgroup Objective
Develop a unified locational net benefits methodology
for the values identified in CPUC final guidance consistent across all three Utilities.
Discuss interpretations of final guidance Discuss quantification method for each DER benefit category
Gain alignment on overall locational benefits methodology
Subgroup included representatives from the three CA IOUs (PG&E, SCE, SDG&E),
SolarCity and Kevala Analytics.Slide5
Not Required for
“Walk”
PhaseSlide6Slide7
MTS Identified Value ComponentsSlide8
MTS Recommendations for Initial
DRPSlide9
Final Guidance from Commission on Optimal Location Benefit Analysis
IOU Unified Locational Net Benefits methodology
Based on E3 Cost-Effectiveness Calculator, but enhanced to include following location-specific values (minimum):Slide10
Comparison of Final Guidance and MTS RecommendationsSlide11
E3 Cost Effectiveness Methodology
Utilize Distributed Energy Resources Avoided Cost Model (DERAC)
Current DERAC model has system values that may need to be modified/replaced with locational specific values.
Avoided Cost Components in DERACSlide12
Proposed Locational Benefits MethodologySlide13
Discussion of Valuation Method from 3/12 Mtg
E3 DERACT
MTS Recommendations
No ChangeSlide14
Avoided Sub-transmission, Substation and Feeder Capital & Operating Expenses
DefinitionAvoidable costs incurred to increase capacity on sub-transmission, substation and/or distribution feeders
to ensure system can accommodate forecast load growth
Cost Calculation ApproachUse existing utility capacity 10-year plans by substation and/orPerform load forecasting vs. capacity analysis to forecast needed capacity
upgrades
Benefit/Avoided Cost is value of deferring capacity work
ExamplesSubstation upgradesTransformer upgradesDistribution feeder reconductoring/reconfigurationSlide15
Avoided Distribution Voltage and Power Quality Capital and Operating Expenses
DefinitionAvoidable costs incurred to ensure power delivered is within required operating specifications (i.e. voltage,
flicker, etc.)
Cost Calculation ApproachUse existing utility power quality investment plan by substation, orPerform load forecasting vs.
voltage/power quality
analysis to forecast needed
voltage/power quality upgradesBenefit/Avoided Cost is value of deferring voltage/power quality workExamplesVoltage regulation investmentsSlide16
Avoided Distribution Reliability and Resiliency Capital and Operating Expenses
Definition
Avoidable costs incurred to proactively prevent/mitigate routine outages (reliability) and major outages (resiliency)
Avoidable costs incurred in responding to routine outages (reliability) and major outages (resiliency)Distribution Resiliency costs defined as spending needed
to meet
reliability expectations that
are above/beyond distribution planning criteria to address major outage events.Cost Calculation ApproachUse existing utility reliability investment plan by substation, orAllocate systemwide reliability investment plan according to reliability statistics (i.e. SAIDI, CAIDI, SAIFI) by substation/local
area
Benefit/Avoided Cost
is value of deferring
reliability/resiliency
work
Examples
Investments / expenses
New/Upgraded Distribution feeders
MicrogridsSlide17
Avoided Transmission Capital and Operating Expenses
DefinitionAvoidable costs incurred to increase capacity on
transmission line and/or substations to ensure system can accommodate forecast load growthCost Calculation Approach
Use existing CAISO TPP plan by substation and/orPerform load forecasting vs. capacity analysis to forecast needed capacity upgrades
Benefit/Avoided Cost
is value of deferring
transmission capacity workExamplesSubstation upgradesTransformer upgradesTransmission line reconductoring/reconfigurationVoltage regulation investmentsSlide18
Avoided Flexible Resource Adequacy Procurement
Flexible RA
determined at system level.
Instead of Flexible RA, recommend using Local RA
.
Alternate Definition (Avoided Local RA Procurement)
Avoidable incremental costs incurred to procure Resource Adequacy (RA) in CAISO-identified local areas (e.g. LCR)Cost Calculation ApproachUse latest CAISO local capacity requirements to identify incremental capacity needs beyond current generation and identify deficient sub-areas
.
Benefit/Avoided Cost is value of deferred Local Capacity or transmission
Examples
Local RA Procurement
PG&E: Needs to purchase Bay Area Local RA at a premium in area to fulfill Local RA
requirementsSlide19
Avoided Renewable Integration Costs
Renewable Integration determined at system level. Not location specific
Definition Avoidable incremental costs to integrate renewables onto electric system.
Cost Calculation ApproachCurrent cost calculation is an interim method for calculating renewable integration costs at a system level, which is to be replaced in 2015.
Utilities to
coordinate
efforts with development of the updated RPS Calculator and Renewables Integration Charge to factor in locational specific valuesSlide20
Societal Avoided Costs
Definition Avoidable incremental costs that are borne by the public, as well as environmental benefits (improvements in air and water quality and land impacts) that can be clearly linked to deployment of DERs.
Cost Calculation Approach
Until more data is available in this area, qualitatively describe the Societal Avoided Costs – Potentially use CalEnviro Screening toolIn some cases, DERs impose costs on society, such as increased taxes for those not participating with DERs
Examples
Criteria Pollutant
Emissions/Local Air Assessments/ Health ImpactsSlide21
Avoided Public Safety Costs
Definition Avoidable incremental public safety related costs that can be clearly linked to deployment of DERs.
Cost Calculation ApproachUntil more data is available in this area, qualitatively describe the
Public Safety BenefitsIn some cases DER could potentially increase costs and hazards for safety related itemsSlide22
Recommendations
Utilize E3’s DERACT as starting point
Review and compare T&D deferral benefit calculations among the IOUs
Develop criteria/service terms for DERs regarding deferring T&D ProjectsFlexible RA will be incorporated in methodology as a system value
Generation related integration costs incorporated using interim integration adder adopted by CPUC – System value
Locational RA will be included to the extent a DER solution can address this requirement
Societal & Public Safety will be included as qualitative factors unless quantitative data is available.For all categories, DERs will sometimes increase cost. Net Benefit will account for any increased costs.Slide23
Distribution Planning Process Alignment w/State Planning & Regulatory Processes Slide24
Potential
DPP Alignment Map w/CA Planning
Refer to Lorenzo’s HandoutSlide25
Potential DPP Alignment w/GRCs
Refer to Lorenzo’s HandoutSlide26
2015 MTS WG ScopeSlide27
2015 Activity
Support utility development of July filings related to DRP, data, demonstrations and state planning alignment as requested
Define services (incl. functional requirements) for deferred capital, voltage/reactive power management and reliability/resilience. Plus identify procurement methods (e.g., RFPs, tariffs, other)
related to these servicesDefine incremental operational functions to integrate and optimize DER related to the values identified in the CPUC final guidance. This includes identifying technology and new processes leveraging industry practices and CA developments (incl. measurement, information protocols, etc.)
Facilitate dialog with California EE/DR community to discuss methods and practice to align utility program design with operational needs