California Public Utilities Commission

Interconnection Standards in California:

A Regulatory Approach to a Fast-Changing Grid

EPRI –Sandia NL PV Distribution System Modeling Workshop

May 6, 2014

Rachel Peterson, Advisor to Commissioner Michel P. Florio

Rachel.Peterson@cpuc.ca.gov

(415) 703-2872

1. Interconnection Supports Distributed

Energy Resources

2. Considering A Guided Approach

3. Decisions Confronting the CPUC

2

CPUC Mandate

• Ensure safe and reliable electric service

by investor-owned utilities at just and

reasonable rates

• Implement laws as directed by Legislature

• Tools:

– Procurement and program design

– Rate design and cost allocation

– Tariffed services

– Infrastructure revenue requirement

3

1. Interconnection Supports Distributed

Energy Resources

4

Distributed Resources in CA Resource Size MW Goal Installed/

Approved to Date

California Solar

Initiative

<1 MW, sized to

load

1,940 MW 2,037 MW in

>205,000

installations

(Apr 2014)

Self-Generation

Incentive Program

None, sized to

customer load

Budget-driven -

$77M for 2013

452 MW

Renewable Feed-In

Tariff

<=3 MW ~600 MW ~350 MW

Biofuel Feed-In Tariff <=3 MW 250 MW First RFO in 2014

Energy Storage Behind the meter,

distribution,

transmission

1,325 MW First RFO in 2014

Qualifying Facilities <=20 MW 3 GW and 4.8 MMT

GHG decrease by

2020

1.7 GW and 1.77

MMT GHG decrease

5

Distributed Resources in CA Resource Goal Installed/

Approved to Date

Energy Efficiency 3,500 MW by 2020 ~1,069 MW (Dec 2011)

Demand Response 5% of system peak by

2020 (2500 MW)

~2%/1,069 MW

Electric Vehicles 1.5 M EVs by 2020 80,000 sold in CA

(Mar 2014)

Zero Net Energy Buildings New residential

construction 100% ZNE by

2020

6

2. Considering A Guided Approach

(or What We Know Today)

7

Location affects cost

9

Technology advances can improve programs

10

Transmission-constrained areas offer promise for

distributed resource deployment

Source: CAISO 2012 Local Capacity Technical Area Study Manual

11

2012

CPUC Rule 21 reform

• Procedural – handle

growing queues

• Technical – allow

increased hosting

capacity

• Aided “strategically

located” first cut

2013

• Small Gen Interconnection

Procedure reform - FERC

• Energy storage

procurement targets - CA

• Biofuel feed-in tariff

• Long-term procurement

portfolio decision #1 (SCE)

• Preferred resources pilot

launch (SCE)

2014

• Long-term

procurement portfolio

decision #2 (SCE,

SDG&E)

• Smart inverter

standards launch

• Net Energy Metering

eligibility for customer

PV + storage

• Distribution system

planning

CPUC Responses to What We Know

3. Questions Confronting the CPUC

(or What We Need to Know Soon)

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1) Energy storage

– Interconnection standards

2) Interconnection costs

– Improve projections of interconnection cost,

upgrades, timing

3) “Strategically located”

4) Smart inverters

– Assess in operation to consider potential

mandate

5) Optimal mix of distributed resources • Assess using existing/forecast load, existing

equipment, forecast distributed resource growth

13

Thank You and Questions

Rachel Peterson

Rachel.Peterson@cpuc.ca.gov

(415) 703-2872