R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and...
-
Upload
clyde-marshall -
Category
Documents
-
view
214 -
download
0
Transcript of R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and...
![Page 1: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/1.jpg)
R.08-03-009 / I.08-03-010Workshop Agenda
Introductions and housekeeping 1:00pm
Objectives and scope 1:10pm
Background
Public Utilities Code 399.2.5 1:15pm
Renewable Energy Transmission Initiative 1:30pm
Facilitated discussion 1:45pm
Break 3:00pm
Facilitated discussion (cont’d) 3:15pm
Summary and next steps 4:30pm
![Page 2: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/2.jpg)
Objectives and Scope
Today: Explore whether the output of the RETI process can be used to support cost recovery for IOUs in planning new transmission projects to serve renewable resources What is RETI providing?
What are the implications for CPUC responsibilities under Public Utilities Code 399.2.5?
Later workshop: How to incorporate the output of the RETI and LTPP processes in proceedings for individual applications for transmission Certificates of Public Convenience and Necessity
![Page 3: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/3.jpg)
Backstop Cost Recovery
Statute and Implementation
February 26, 2009
![Page 4: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/4.jpg)
Public Utilities Code 399.2.5
(a) “…Transmission facilities shall be deemed to be necessary…if the commission finds that the new facility is necessary to facilitate achievement of the renewable power goals established in Article 16…”
(b) “With respect to a transmission facility described in subdivision (a)…” the Commission shall take several actions, including: (4) “Allowing recovery in retail rates of any increase in
transmission costs incurred by an electrical corporation resulting from the construction of the transmission facilities that are not approved for recovery in transmission rates by the Federal Energy Regulatory Commission after the commission determines that the costs were prudently incurred…”
![Page 5: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/5.jpg)
CPUC Implementation
D.03-07-033 – Adopted general framework
D.06-06-034 – Modified D.03-07-033, established eligibility criteria: High-voltage, bulk-transfer transmission facilities, whether
classified as network or gen-tie, that are designed to serve multiple RPS-eligible generators where it has been established that the amount of added transmission capacity will likely be utilized by RPS-eligible generation projects within a reasonable period of time
New network transmission facilities needed to interconnect an RPS-eligible resource whose developer has entered into a Commission-approved power purchase agreement
![Page 6: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/6.jpg)
CPUC Implementation
D.07-03-012 – Established three-pronged test for “necessary to facilitate achievement” of RPS goals:
(1) that a project would bring to the grid renewable generation that would otherwise remain unavailable;(2) that the area within the line's reach would play a critical role in meeting the RPS goals; and(3) that the cost of the line is appropriately balanced against the certainty of the line's contribution to economically rational RPS compliance.
D.07-03-012 and D.07-03-045 used above test to justify the first 3 segments of the Tehachapi upgrades and guarantee backstop cost recovery for segment 3
![Page 7: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/7.jpg)
CPUC Implementation
E-3969 (2006) – Commission approved recovery costs of environmental studies identified by Tehachapi Collaborative Study Group – no mention of 399.2.5 D.06-06-034: “We adopted Resolution E-3969 because
studies had already demonstrated that Tehachapi is an especially rich resource area for renewable and development of that area is almost certainly necessary to meet the 20% RPS goal. We are unwilling to open the ratepayers’ pockets for transmission facilities in areas that do not rise to this level of certainty, since study and permitting costs for facilities in unexplored areas will be large.”
E-4052 (2007) – Commission declined to discuss whether 399.2.5 recovery applied to studies performed before a specific project was identified
![Page 8: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/8.jpg)
Questions to consider
Should the Commission clarify whether studies performed before a project is identified could qualify for 399.2.5 cost recovery?
Can RETI serve as a quick check of the three-pronged test for purposes of 399.2.5 cost recovery and/or need determination?
(1) that a project would bring to the grid renewable generation that would otherwise remain unavailable;(2) that the area within the line's reach would play a critical role in meeting the RPS goals; and(3) that the cost of the line is appropriately balanced against the certainty of the line's contribution to economically rational RPS compliance.
![Page 9: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/9.jpg)
California’s Renewable EnergyTransmission Initiativehttp://www.energy.ca.gov/reti/
Overview
February 26, 2009
![Page 10: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/10.jpg)
Renewable Energy Transmission Initiative
Statewide collaborative study effort to identify and facilitate the development of the transmission needed to access the most cost-effective and environmentally-preferable renewable resources in CA and neighboring states
Three-Phased Process Phase 1 – Identification and ranking of Competitive
Renewable Energy Zones (CREZs)
Phase 2 – Refinement of analysis for priority CREZs and development of statewide conceptual transmission plan
Phase 3 – Detailed transmission planning for priority CREZs
![Page 11: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/11.jpg)
![Page 12: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/12.jpg)
RETI Organization / Roles
Coordinating Committee Oversees the overall RETI
process Ensures development of
needed information Keeps the process on
schedule
Stakeholder Steering Committee Primary working group Key stakeholder
representatives ~30 members
Plenary Stakeholder Group Reviews Steering Committee
work Provides feedback, “ground-
truthing” All stakeholders and the
public
![Page 13: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/13.jpg)
Phase 1
Identify developable renewable resources in California and neighboring areas – engineering review and consideration of environmentally sensitive areas
Rank CREZs according to cost-competitiveness
Rate CREZs according to environmental concerns
Final Phase 1 Report completed in December 2008
![Page 14: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/14.jpg)
Phase 1B Report - Results
Black & Veatch, in consultation with Phase 1B working group > 2,100 individual “pre-identified” and “proxy” generation
projects > 80,000 MW within 29 CREZs in California; 6 CREZs were
split at “breaks” in their supply curves, resulting in total of 37 distinct, ranked areas
40,000 MW outside of CA with potential to deliver energy to CA.
Environmental Working Group CREZs identified by Black & Veatch are rated according to
environmental concerns associated with the projected generation
![Page 15: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/15.jpg)
CREZ and non-CREZ resources identified throughout the study area
![Page 16: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/16.jpg)
![Page 17: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/17.jpg)
Phase 2
Refine and verify priority CREZs
Develop conceptual transmission plans for the highest ranking CREZs – group co-led by CAISO and LADWP
Draft report – end of March 2009
Final report – end of April 2009
![Page 18: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/18.jpg)
Phase 3
Existing transmission planning organizations collaboratively design plans of service that result in applications to construct new transmission infrastructure to meet RPS goals
~ 8 month-long process; may be iterative
Explore joint projects as appropriate
Final result = Statewide Plan
![Page 19: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/19.jpg)
![Page 20: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/20.jpg)
Discussion
February 26, 2009
![Page 21: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/21.jpg)
Discussion
Does current status present a barrier to planning for a 33% by 2020 RPS target and applying 399.2.5 provision to transmission projects needed for 33%, but perhaps not 20%?
Does the Commission need to clarify whether early-stage project study costs – not jus those associated with identified projects – are eligible for 3992.5 cost recovery?
What is RETI producing in terms of high priority CREZs or transmission projects that might facilitate CPUC decisions on backstop cost recovery or “need” determination?
![Page 22: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/22.jpg)
Discussion
To what exactly might the CPUC defer from RETI’s Phase 1, 2 and 3 results, and for what purposes (recovery of pre-siting costs, CPCN determination of need, recovery of construction costs)? If pre-siting study costs are eligible, could and should
authority to record and recover studies of RETI projects be granted an expedited advice letter process, i.e Tier 1 or Tier 2?
Is SCE’s proposal that cost recovery should be granted for obtaining rights-of-way for RETI-identified projects that have not yet been granted CPCNs appropriate?
![Page 23: R.08-03-009 / I.08-03-010 Workshop Agenda Introductions and housekeeping1:00pm Objectives and scope1:10pm Background Public Utilities Code 399.2.51:15pm.](https://reader038.fdocuments.us/reader038/viewer/2022110405/56649eeb5503460f94bfd0ac/html5/thumbnails/23.jpg)
Summary and Next Steps
February 26, 2009