Commission Issued Decision Adopting Microgrid and Resiliency Solutions to Enhance Summer 2022 and Summer 2023 Reliability

Background - Track 4

The assigned Commissioner issued an Amended Scoping Memo and Ruling for Track 4 to develop a microgrid multi-property tariff to facilitate the commercialization of microgrids. The assigned ALJ also issued a Ruling directing parties to submit microgrid and resiliency proposals that could result in resiliency and microgrid projects installed and delivering reliability benefits by summer 2022 and summer 2023.

PG&E Proposal

PG&E proposes a study to potentially expand its Temporary Generation Program, to procure temporary generation to mitigate PSPS impacts and contribute additional capacity to the CAISO controlled system during system shortfall events. The study would build on these efforts to examine the potential to use additional temporary generation that will already be procured for PSPS events at either or both substation and distribution microgrid sites, if necessary, in a 2022 system capacity shortfall event.

SDG&E Proposal

SDG&E proposes two circuit-level energy storage microgrid projects and two additional projects for enhanced summer reliability:

• An energy storage microgrid located at SDG&E’s Boulevard Substation.
• An energy storage microgrid at an SDG&E owned property at the Paradise Substation located in Skyline, San Diego, California.
• Two other projects with an in-service date of 2024 at the Clairemont and Elliot circuit energy storage microgrids, which would be located at an SDG&E-owned property.

D. 21-12-004 Summary:

1. Pacific Gas and Electric Company shall file a Tier 2 Advice Letter, within 45 days upon the effective date of this decision, requesting authorization for reservation of 2022 temporary generation for the purposes of filling system capacity shortfalls.
2. If Pacific Gas and Electric Company chooses to reserve temporary generation for 2022 to mitigate the public safety power shutoffs, it may include the information described above in the Tier 2 Advice Letter required by Decision 21-01-018 in lieu of filing a separate advice letter. However, this advice letter must be filed within 45 days upon the issuance of this decision.
3. PG&E shall file a Tier 1 Advice Letter within 30 days upon the approval of its Tier 2 Advice Letter from Ordering Paragraph 1. In this Tier 1 Advice Letter, PG&E shall update its existing Microgrids Memorandum Accounts with a new subaccount titled, “Microgrid Summer 2022 and Summer 2023 Reliability Sub-Account" for the purpose of recording the costs associated with the requirements adopted in Section 4.2 of this decision. PG&E’s Tier 1 Advice Letter shall also include the applicable tariff language, as necessary. For cost recovery, we direct PG&E to file an application or include these costs as part of its upcoming general rate cases.
4. PG&E shall, upon approval of PG&E’s Tier 2 Advice Letter from Ordering Paragraph 1, collaborate with the Commission’s Energy Division to establish a regular reporting schedule that illustrates the progress PG&E is making to enhance summer 2022 and 2023 reliability. PG&E shall include the megawatts PG&E is making available to address a capacity shortfall under its expanded Temporary Generation Program for enhanced reliability starting in the summer 2022 and summer 2023 in this report.
5. SDG&E shall file a Tier 2 Advice Letter, within 30 days upon the effective date of this decision, discussing the information, provided within, on the resiliency capabilities that each of its four circuit-level energy storage microgrid projects will produce for enhanced reliability starting in the summer of 2022 and in 2023.
6. SDG&E may procure only up to its four circuit-level energy storage microgrid projects. This procurement is conditioned upon the requirement that these projects provide peak and net-peak grid reliability benefits starting in the summers of 2022 and 2023. Furthermore, these projects must demonstrate islanding and resiliency capabilities through this Tier 2 Advice Letter, in addition to reliability benefits. SDG&E shall comply with the Cost Allocation Mechanism for utility owned storage previously adopted in Rulemaking 20-11-003. SDG&E shall comply with any subsequent modifications to the Cost Allocation Mechanism adopted in Rulemaking 20-11-003.