Southern California Reliability

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Southern California Reliability

• Michele Kito, CPUCs Energy Division
• August 17, 2015

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Long Term Procurement Plan (LTPP)

• The LTPP authorizes new infrastructure to
  maintain system reliability
• Looks forward 10 years to identify system and
  local needs
• Considers alternative futures (renewable
  portfolio, demand and supply, and transmission
  scenarios)
• Updates procurement rules

3
2012 LTPP

• Track 1 - D.13-02-015 authorized SCE to procure
  electrical capacity in the West LA Basin
  Moorpark sub-areas to meet long-term local
  capacity requirements.
• Track 4 - D.14-03-004 authorized additional
  procurement for SCE and SDGE to meet local
  capacity needs stemming from the retired San
  Onofre Nuclear Generation Stations (SONGS).

4
Any Authorization Requires Balance of Operational
Benefits
Any resource authorization must balance
capabilities No single resource can meet both
reliability needs and state policy objectives
alone
                   
  Type Annual Capacity Factor Expected Availability On-Peak Dispatchable Inertia Reactive power support (VARS)   GHG-free  
  Energy Efficiency1 Reduces total energy demand Reduces total energy demand Reduces total energy demand Reduces total energy demand Reduces total energy demand   Yes  
  Demand Response Low 2 100 Yes No No   Yes  
  Combined Heat Power 80 100 Maybe Yes Yes   No  
  Large Solar 24 77 No No Maybe   Yes  
  Rooftop Solar 19 45 No No No   Yes  
  Wind 33 30 No No No 3   Yes  
  Storage N/A 100 Yes No Maybe   Yes  
  Gas Peaker/CT 10 100 Yes Yes Yes   No  
  Gas Combined Cycle 65 100 Yes Yes Yes   No  
                   
  1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use. 1 Energy efficiency is not traditionally measured as a capacity factor resource, and savings vary widely by application and use.
  2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year. 2 Demand response programs generally have low capacity factors due to typical usage limits of 100 hours or less per year.
  3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support. 3 Some renewable energy sources, notably wind, actually require additional VAR support.  
     
                   
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SCE Authorization for LA Basin
Resource Type Track 1 LCR Resources(D.13-02-015) Additional Track 4 Authorization (D.14-03-004) Total Authorization
Preferred Resources   Minimum Requirement 150 MW 400 MW 550 MW
Energy Storage   Minimum Requirement 50 MW -- 50 MW
Gas-fired Generation Minimum Requirement 1000 MW -- 1000 MW
Optional Additional From Preferred Resources/Energy Storage Only   Up to 400 MW   Up to 400 MW
Additional from any Resource   200 MW 100 to 300 MW 300 to 500 MW
Total Procurement Authorization   1400 to 1800 MW 500 to 700 MW 1900 to 2500 MW
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SDGE Authorization
Resource Type D.13-03-029/ D.14-02-016 Additional Track 4 Authorization (D.14-03-004) Total Authorization
Preferred Resources (including energy storage)   Minimum Requirement --- 175 MW 175 MW
Energy Storage   Minimum Requirement --- 25 MW 25 MW
Additional from any resource   300 (Pio Pico) 300 to 600 MW 600 to 900 MW
Total Procurement Authorization   300 MW 500 to 800 MW 800 to1100 MW
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SCE Implementation Progress

• Application submitted Nov. 2014 (A.14-11-012) for
  West LA Basin
• Overview of selected offers
• Hearings completed, briefs submitted, PD expected
  (per Scoping Ruling), 90 days after submission,
  or approximately 10/1/2015

Product Category Total Contracts LCR MW
Preferred Resources and Energy Storage    
Energy Efficiency 26 124.04
Demand Response 7 75.00
Renewable Distributed Generation 4 37.92
Energy Storage 100 MW IFOM and 164 MW BTM 23 263.64
Total Preferred Resources and Energy Storage 60 500.60
Gas-Fired Generation 3 1,382.00
Total Preferred Resources, ES, and GFG 123 1,882.60
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SDGE Implementation Progress

• Pio Pico (300 MW) approved in (D.14-02-016)
• Contract start date June of 2017
• Carlsbad Energy Center (500 MW) approved in May
  of 2015 (D.15-05-051)
• Six applications for rehearing currently pending
  before the Commission
• SDGEs 2014 All Source RFO
• RFO issued September 5, 2014
• SDGE notified shortlisted bidders June 5 ,2015
• SDGE submits contracts to CPUC for approval Q1
  2016

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Contingency Contracts

• D.14-03-004 allows submission of contingency
  contracts, but SCE and/or SDGE, in their
  applications must address a number of questions
  posed by the Commission.
• SCE procurement authorization status
• SCE has submitted an application to fill 1882 MW
  of total need
• SCE will need to procure an additional 100 MW of
  preferred resources
• SCE has authorization for an additional 518 MW
  (400 MW preferred resources/energy storage, the
  remainder from any source)
• SDGE procurement authorization status
• SDGE has received Commission approval for its
  500 MW Carlsbad facility
• SDGE has authorization for an additional 300 MW
  of preferred resources/energy storage