California Public Utilities Commission Orders Utilities to Prepare for Extreme Weather Events

Strategic Insights -

The California Public Utilities Commission (CPUC) has issued a proposed decision directing Pacific Gas and Electric Company (PG&E), Southern California Edison Company, and San Diego Gas & Electric Company (SDG&E) to take actions to prepare for potential extreme weather events in the summers of 2021 and 2022. The Public Advocates Office at the CPUC submitted reply comments in response to the proposed decision, making several recommendations to ensure reliable electric service during extreme weather events.

Key Takeaways:

  • The CPUC proposed decision requires the three investor-owned utilities (IOUs) to quickly contract for power capacity for the summers of 2021 and 2022, as well as directing them to take other actions to reduce the risk of rotating power outages.
  • The Public Advocates Office recommends that the Commission clarify the enrollment/unenrollment changes for the Base Interruptible Program (BIP) and Agricultural and Pumping Interruptible (AP-I) Program, ensuring that customers cannot unenroll during critical summer months.
  • The Office also recommends that the Commission not adopt a new smart thermostat program, citing concerns over its speculative benefits and lack of proven track record.
  • The proposed decision correctly rejected the smart thermostat programs proposed by Google, OhmConnect, and the DR Coalition, and none of the opening comments provided a sufficient basis for revising the decision.
  • The CPUC's proposed decision aims to address the potential effects of extreme weather events on the state's grid reliability, with a focus on reducing the risk of rotating power outages.

Statistics:

  • The proposed decision requires the three IOUs to contract for power capacity for the summers of 2021 and 2022.
  • The BIP and AP-I Program have a 12-month participation requirement, but the Commission should clarify the specific unenrollment windows currently approved in each IOU territory.
  • The DR Coalition's proposed smart thermostat incentive program is speculative and lacks sufficient discussion on standards and metrics, as well as a method to test cost-effectiveness.
  • PG&E's Residential Rewards pilot proposal does not conform to the pilot requirements established in Decision 12-04-045.

Sources:

  • California Public Utilities Commission. (2021). Order Instituting Rulemaking to Establish Policies, Processes, and Rules to Ensure Reliable Electric Service in California in the Event of an Extreme Weather Event in 2021, R.20-11-003. p. 27.
  • Public Advocates Office. (2021). Opening Brief, R.20-11-003, February 5, 2021, pp. 23-24.
  • Google LLC and OhmConnect, Inc. (2021). Opening Comments on Proposed Decision Directing Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company to Take Actions to Prepare for Potential Extreme Weather in the Summers of 2021 and 2022, R.20-11-003, March 15, 2021, pp. 2-3.
  • Public Advocates Office. (2021). Reply Comments on Proposed Decision Directing Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company to Take Actions to Prepare for Potential Extreme Weather in the Summers of 2021 and 2022, R.20-11-003, March 15, 2021.