CPUC adopts a new plan to improve the grid for solar resources, batteries and electric vehicles
The California Public Utilities Commission unanimously approved a four-year plan to improve integration of customer generated solar, energy storage, and electric cars into the state’s electrical grid.
The Distributed Energy Resources Action Plan 2.0 lays out vision and action steps to accommodate current and increasing use of distributed energy resources (DER’s) which are expected to play an important role in reaching the states clean energy goals.
DER’s include installations and hardware like customer-sited solar solar, energy storage projects and electric cars as well as energy efficiency programs, demand management technology, and time-of-use rates.
“I am looking forward to following how expansion and integration of DER’s will provide positive impact on our energy system specifically for tribal and rural communities given the increase in public safety power shut-off events, expansion of tribal and rural microgrid and resiliency projects and the need for expanded rural EV infrastructure and the increased need for equitable and affordable rates,” said Commissioner Darice Houck who participated on the plan’s steering committee.
The plan is structured into four tracks. The first, entitled “load flexibility and rates,” calls for market research and stakeholder consultation to develop real-time pricing (RTP) rate options to advance the time-of-use rate plans that are currently available. The commission plans to support these changes with marketing education and outreach programs designed to allow ratepayers to reduce energy costs by avoiding peak demand pricing.
The CPUC included language in the “Load flexibility and Rates” track to address the controversial “cost-shift” issues that arose with the recent proposal of a third version of the Net Energy Metering policy. NEM 3.0 was removed from the CPUC agenda after statewide protests from solar energy users, community and environmental groups and business associations. The term “cost-shift” referred rate increases born by non-solar ratepayers due to the retail compensation rates for energy that solar users feed back onto the grid.
The CPUC also revisits NEM 3.0 issues in the third track that calls for wholesale market integration of DER’s. Among other items the third track of the plan brings together the CPUC, the California Independent Service Operator (CAISO) and the California Energy Commission (CEC) to “resolve whether and how behind-the-meter DER’s should receive capacity credit and wholesale market compensation for energy exported to the distribution grid.”
In both tracks the CPUC stressed the importance of fair and reasonable compensation for the multiple benefits that DER’s provide to the grid.
The second track of the DER Action Plan directs utilities to prioritize incorporation of DER’s into existing and planned infrastructure to maximize benefits for ratepayers. And the final track coordinates research, planning, and data sharing to create customer programs that align with state energy goals and serve the needs of Tribal and environmental and social justice communities.
