By Wyatt Page
On October 17, 2024, the CPUC adopted the proposed decision in R.21-06-017. Many of the proposed decision rulings were modified by the Commission final decision based on public feedback and feedback from utility companies. The energy grid is expected to see an unprecedented steady rise in electricity demand as more products become electric in attempt to replace our reliance on fossil fuels. With this decision, the CPUC aimed to review the project planning and execution systems that investor-owned utilities—Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company—must follow to ensure the energy grid infrastructure is ready for future demands. The commissioner assigned to the proceeding, Darcie L. Houck, stated the planning process needs to account for new energy loads with better forecasting and mapping, and account for geographic differences and economic growth levels. The commissioner also expressed the decision ensures that planning incorporates equity metrics and analysis are designed to help our most vulnerable communities as California transitions to a clean energy future.
This decision specifically focuses on the Distribution Planning Process (DPP) and the Execution Process which can be broken down into 10 steps. The first five DPP steps include: 1) historical load profile review; 2) forecast adoption; 3) load and distributed energy resources disaggregation; 4) grid need identification; and 5) solution development. Then, the process shifts to the Execution Process which the last 5-steps: 6) project prioritization; 7) projects; 8) planning, designing, and estimating; 9) permitting, sourcing, and release; and 10) construction. The IOUs report that this process currently can take anywhere from 1 year to 8 years depending on the project type.
The CPUC initiated this rulemaking from two bills signed by the Governor in 2023. SB 410 (Becker) (Chapter 394, Statutes of 2023) aims to improve the speed of energization and service upgrades and authorizes the CPUC to implement measures to shorten these long timelines. AB 50 (Wood) (Chapter 317, Statutes of 2023) requires each electrical corporation to assess and update its distribution planning processes, meet annually with stakeholders to discuss distribution planning issues, and share relevant information with the IOUs.
This 211-page decision details 27 specific fixes to the DPP and the Execution Process. Among the changes, IOUs may now use reliable bottom-up data to estimate total load growth each year, even if it exceeds the forecasted load growth based on the Integrated Energy Policy Report data for that year. Reliable bottom-up data is defined as customer energization requests. Further, IOUs must submit an annual service territory community engagement plan to address equity in the DPP, including metrics to track and evaluate equity. In addition, the IOUs must remove all customer registration requirements for data portal access to increase open access of information. Lastly, many of the new requirements necessitate new information to be released, such as pending project information, and for the IOUs to conduct workshops to engage public opinion before it submits an advice letter to the CPUC that answers specific questions in this decision.