MTS Working Group - PowerPoint Presentation

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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”

PhaseSlide6
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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