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Public utilities

Modernizing the Electric Grid for a High Distributed Energy Resources Future

Strategic Insights

— 2 min read

The California Public Utilities Commission has initiated a rulemaking process to modernize the electric grid for a high distributed energy resources future. Pacific Gas and Electric Company has submitted its 2025 Grid Needs Assessment Report and Distribution Upgrade Project Report, along with a Final Independent Professional Engineer Plan. The reports aim to enhance the transparency of distribution planning and execution processes, replacing the Distribution Investment Deferral Framework solicitations process. The updates reflect regulatory decisions and administrative law judge rulings from 2019 to 2024, highlighting the commission's efforts to ensure a more efficient and resilient grid.

Key Takeaways:

  • The California Public Utilities Commission has launched a rulemaking process to modernize the electric grid for a high distributed energy resources future, with Rulemaking 21-06-017 serving as the primary initiative.
  • Pacific Gas and Electric Company has submitted its 2025 Grid Needs Assessment Report, Distribution Upgrade Project Report, and Final Independent Professional Engineer Plan to support this effort.
  • The reports address distribution planning and execution process transparency, eliminating the Distribution Investment Deferral Framework solicitations process and introducing a Distribution Upgrade Project Report.
  • The Commission's Decisions D. 18-02-004, D.21-02-006, D.24-10-030, and Administrative Law Judge Rulings have guided the development of the reports, with a focus on enhancing grid efficiency and resilience.
  • The Distribution Upgrade Project Report supersedes the Distribution Deferral Opportunity Report, with the added requirement of additional reporting details.
  • Pacific Gas and Electric Company has filed a motion to submit under seal unredacted versions of the reports, considering customer privacy concerns outlined in the Declaration of Satvir Nagra.
  • The submissions aim to comply with the Commission's directives and ensure a more transparent distribution planning and execution process.

Statistics:

  • The 2025 Grid Needs Assessment Report and Distribution Upgrade Project Report are submitted in compliance with Commission Decisions from 2019 to 2024.
  • The reports reflect a shift in focus from the Distribution Investment Deferral Framework solicitations process to the transparency of distribution planning and execution processes.
  • The 15/15 Rule, as defined in Section 3.3 of General Order 66-D, serves as a data set for customer load distribution in the reports.

Sources:

  • D.24-10-030, Ordering Paragraph (OP) 31: Clarifies the definition of the 15/15 Rule.
  • General Order 66-D, Section 3.3: Defines the 15/15 Rule.
  • Decision D.18-02-004, Administrative Law Judge's Ruling Regarding Confidential Treatment and Redaction of Distribution System Planning Data: Ordered by Decisions 17-09-026 and 18-02-004 (July 24, 2018).
  • Decision D.21-02-006, Administrative Law Judge's Ruling Regarding Confidential Treatment and Redaction of Distribution System Planning Data: Ordered by Decisions 17-09-026 and 18-02-004 (July 24, 2018).
  • Rulemaking (R.) 14-08-013, Administrative Law Judge's Ruling Ordering Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas and Electric Company to File Separate Motions for Confidential Treatment and Redaction of Distribution System Planning Data Ordered by Decisions 17-09-026 and 18-02-004 (July 24, 2018).
  • Rulemaking (R.) 21-06-017: The primary initiative to modernize the electric grid for a high distributed energy resources future.
  • Pacific Gas and Electric Company's 2025 Grid Needs Assessment Report (attached as Attachment A) and Distribution Upgrade Project Report (attached as Attachment B).

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