R. 13-11-005
The Proposed Decision (“PD”) would approve several initiatives designed to produce emergency peak demand (during 4:00 p.m. - 9:00 p.m.) and/or net peak (during 7:00 p.m. - 9:00 p.m.) demand reductions through energy efficiency actions by the summers of 2022 and 2023. This PD approves $185 million in incremental energy efficiency budgets for program years 2022 and 2023, while also allowing shifting of energy efficiency funds previously allocated to address summer reliability objectives. Comments on the PD are due Nov. 18 and Reply Comments are due Nov. 23. A Commission vote is expected Dec. 2.
In response to Governor Newsom’s July 30, 2021 Emergency Proclamation, the decision authorizes several new or augmented Energy Efficiency initiatives including:
- A new, two-year Market Access program funded at $150 million statewide, to deliver peak and/or net peak demand savings using the normalized metered energy consumption method of measuring energy and peak demand savings in residential and commercial buildings.
- An additional $30 million statewide for third-party solicitations designed to produce peak and/or net peak demand savings.
- Authorization for Marin Clean Energy to shift funds to enhance their Peak FLEX market program, on which the Market Access program described above is based.
- $5 million in additional funding for the Tri-County Regional Energy Network to expand their existing Energy Assurance Program to additional counties.
- Authorization to all energy efficiency program administrators to shift funds to reliability-focused programs with notice to the Commission and stakeholders through an advice letter.
The decision also makes several process changes designed to expedite the delivery of programs that will produce peak demand savings. These include:
- Allowing single-stage solicitations to third parties for reliability-focused initiatives and programs; and
- Streamlining and expediting Commission staff review of custom projects and workpapers with summer reliability benefits.
To access funds authorized by this Decision, any existing authorized energy efficiency program administrator interested in deploying this program shall file a Tier 2 advice letter within 45 days after the effective date of the decision, containing the following information:
- Requested budget;
- Anticipated net peak demand savings and total system benefits, for both 2022 and 2023;
- Description of net peak demand threshold for aggregator eligibility and any bonuses or penalties that will be applied;
- Description of how programs will apply a “kicker” or peak and net peak times, for June through September of 2022 and 2023;
- Description of the reporting process, including at least monthly reporting specific to these programs;
- Description of any plans to integrate long-lasting energy efficiency deployment with near-term opportunities like demand response, and including a description of how energy efficiency and other savings will be disaggregated and paid for; and
- Description of how programs will be designed to achieve savings that are incremental to the main energy efficiency portfolio.
Prior to program launch, each program administrator shall post an implementation plan with a program-level measurement and verification plan that meets the requirements in the Normalized Metered Energy Consumption Rulebook.
