Laura Velarde From: Legal Admin <Legal.Admin@sce.com> Sent: Wednesday, July 24, 2019 12:06 PM To: Laura Velarde Subject: R1706026 PCIA OIR: PCIA Working Group 3 Workshop #2 Presentation Attachments: R1706026 PCIA Working Group 3 Workshop #2 Presentation.pdf Importance: High To: All Parties in Rulemaking (R.) 17‐06‐026 Re: Working Group 3, Workshop # 2 Parties – (See attached file: R1706026 PCIA Working Group 3 Workshop #2 Presentation.pdf) Attached for your preview in advance of tomorrow’s Working Group 3, Workshop #2 are the workshop materials prepared by the Co‐Chairs. Workshop #2 logistics are set forth below. We look forward to your participation. Subject: PCIA Working Group 3, Workshop #2 Date: Thursday, July 25, 2019 Time: 10:30 a.m. – 1:30 p.m. Location: SCE Energy Education Center 6090 N. Irwindale Ave. Irwindale, CA 91702 EECI 6090 Conference Center Conference Room Lunch will be provided; other lunch options are available in the area if desired / necessary. If you have not already done so, please RSVP via email to Stephanie.Lu@sce.com if you plan to attend in person. The option to join via remotely will be available through the Skype link below. Join Skype Meeting Trouble Joining? Try Skype Web App Join by phone +12132970156 (Dial‐in Number) English (United States) Find a local number Conference ID: 27861274 Forgot your dial‐in PIN? |Help |Legal Skype meetings MAY be recorded only if the presenter enables the recording feature AND initiates recording. If the meeting is being recorded, you will be warned and you may either consent to recording by staying on the call or hang up and contact the meeting organizer. Regards, 1
Legal Administration Southern California Edison Company Telephone (626) 302‐2810 2
PCI CIA Phas hase 2 – Working g Gr Group p Th Three Portfolio Optimization and Cost Reduction, and Allocation and Auction Detailed led RA RA Sales les Process ss Str Strawma man, Local R RA Allo locatio ion, n, GHG HG-Fr Free A ee Allo locatio ion & n & Volunt untary A Allocatio ion n Proces ess Work rkshop No No. . 2 July 25, Ju 25, 201 2019 PCIA Phase 2 - Working Group 3
Site te Specifi fic Safe fety ty Safety Assignments: Call 911: Jabari Martin You are here Perform CPR: Philippe Gerretsen Exit Get AED: Marci Palmstrom North Meet 1st Responders: Matt Langer Exits: Side Door or Main Entrance AED Location: Behind Front Desk Meeting location in the event of an evacuation : North side of the building closest to the stop sign between the 6090 & 6070 buildings. 1 PCIA Phase 2 - Working Group 3
Over vervi view PCIA Phase 2 - Working Group 3
Ag Agend enda • Overview • Feedback from First WG3 Workshop • Status of WG3 Discussions • Proposed Excess Resource Adequacy (RA) Sales Strawman for System and Flex RA • Proposed Local RA Allocation Approach • Proposed GHG-Free Allocation Approach • Proposed Voluntary Allocation & Auction Clearinghouse Strawman • Feedback & Next Steps 3 PCIA Phase 2 - Working Group 3
Progr gress ss o of Worki king G g Group 3 p 3 • Working Group 3 (WG3) has met regularly since March 2019 Co-leads have met 2-3 times per week • Each of IOUs and CCAs have convened about 3 times per week • • First Workshop was held on April 29, 2019, which presented: Strawman for RPS and RA Excess Sales Approach • Introduction to Voluntary Allocation & Auction Clearinghouse • proposal • First WG3 Progress Report was filed June 24, 2019 • Third WG3 Workshop expected September/October, 2019 RPS Excess Sales & Allocations • Voluntary Allocations • • Second Progress Report will be due September 26, 2019 • Final WG3 Report due January 30, 2020 • Proposed Decision expected Q2 2020 4 PCIA Phase 2 - Working Group 3
Fe Feedback fr from Fi First W t Worksh shop PCIA Phase 2 - Working Group 3
Stake keholde der F Feedba dback f ck from m Worki king S g Sess ssion 1 • Informal comments received from 10 Parties: • Alliance for Retail Energy Markets (AReM), California Large Energy Consumers Association (CLECA), City of San Diego, NextEra Energy, Pacific Gas & Electric (PG&E), Protect Our Communities Foundation (POC), Public Advocates Office (Cal PA), San Jose Clean Energy (SJCE), Shell Energy, The Utilities Consumers’ Action Network (UCAN) • Questions posed to Stakeholder Group: • Resource Adequacy (RA): 1. Thoughts regarding the mechanics of reporting a RA buffer? 2. Input on proposed timing and frequency of RA sales? • Renewable Portfolio Standard (RPS): 1. Cal CCA and SCE presented 2 versions on what constitutes excess RPS. Please provide your feedback and pros/cons on those approaches. 2. Input on proposed timing and frequency of RPS sales? 3. What type(s) of RPS transactions are needed? 6 PCIA Phase 2 - Working Group 3
T opi pics cs Raised i d in I Informal Comme mments • Resource Adequacy (RA) Sales – Addressed in this workshop • Existence of RA Buffer • Transparency of RA Buffer • Proposed Timing and Frequency of RA Sales • Renewables Portfolio Standard (RPS) Sales - Addressed in next workshop • Definition of “Excess” RPS • Proposed Timing and Frequency of RPS Sales • Types of RPS Transactions • Voluntary Allocation and Auction Clearinghouse (VAAC) – Addressed in this and next workshop • Other Topics: • WG3 Principles – Not updating at this time • Solicitation Mechanisms & Terms and Conditions – To be discussed at later workshop 7 PCIA Phase 2 - Working Group 3
Status us of R RA P A Proposals PCIA Phase 2 - Working Group 3
Status us o of RA A Propos osal D Discus ussions • Co-Leads developed a proposed end-to-end Excess Sales framework for RA • Robust discussion however there were challenges in finding alignment among co-leads and between IOUs • What is the appropriate amount of capacity to be used as a buffer by IOUs for compliance and risk mitigation purposes? • How do we account for uncertainty prior to the final RA requirement? • Co-Leads began exploring allocations of Local RA as a path forward • Proposal for allocation would remove requirements around buffers and uncertainty tranches in favor of pro rata allocation of entire PCIA- eligible Local RA position in the portfolio • Co-Leads are aligning in favor of an allocation proposal over an excess sales approach for Local RA • Continuing to explore approaches for System and Flex RA 9 PCIA Phase 2 - Working Group 3
Exce cess RA Sales Strawma man For Syst stem m and d Flex RA PCIA Phase 2 - Working Group 3
Ba Basic ic Struct cture f for a System/Flex Exce cess S s Sales Appr pproach ch • IOU will offer for sale RA that is above its compliance obligation, based upon the IOU’s final allocation, plus a buffer. • Excess RA will be made available to the market as follows: • Annually - Spring and Fall solicitation • Quarterly • Major areas where Co-Leads struggled with finding alignment: • Methodology for RA Buffer to meet unforeseen requirements; • Amounts of capacity that are considered Excess but which IOUs may retain in forward solicitations to account for forecast uncertainty; • PCIA cost treatment for capacity that is not offered for sale in Spring solicitation; and • Treatment of capacity not shown in Supply Plan due to foreseen operational constraints and outages 11 PCIA Phase 2 - Working Group 3
Factors A Affec ecting ing R RA Complia lianc nce e Uncertaint inty • An Excess RA Sales Framework must be designed to account for uncertainties that can impact how LSEs manage their RA obligations Load-Side: Supply-Side: Load growth/decline Planned/forced outages • • Regulatory rule changes Delays to new generation or • • Customer migration deliverability • Operational constraints • Distribution deferral capacity • Regulatory rule changes • NQC changes • Contract default risk • 12 PCIA Phase 2 - Working Group 3
Exce cess RA • Excess RA are amounts of RA that are above 100% of the IOU’s monthly bundled service load compliance obligation, plus a Buffer • The compliance obligation amount is based upon the IOU’s final RA allocation adopted by the CPUC for each period • Applies for each RA product category: System, Flex Excess RA as of Fall Solicitation 20000 Illustrative RA Position (MW) 15000 10000 5000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Compliance Obligation Buffer (5%) Will Offer 13 PCIA Phase 2 - Working Group 3
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