D.13-10-040: Decision Adopting Energy Storage Procurement Framework and Design Program

Description

The California Public Utilities Commission (CPUC) adopted Decision 13-10-040 (Decision) to establish the policies and mechanisms for procurement of electric energy storage pursuant to Assembly Bill 2514 (Pub. Util. Code Section 2836 et seq.). The Decision established energy storage procurement targets for CCAs equal to 1 percent of their annual 2020 peak load to be procured by 2020 with installation no later than 2024. These requirements are consistent with the requirements for the utilities. The reporting requirements for this obligation started January 1, 2016, and are required every two years thereafter. CCAs are required to submit a Tier 2 Advice Letter demonstrating their compliance towards meeting this target and describing their methodologies for cost-effective energy storage projects.

Activity

In Decision 17-05-039, the CPUC adopted an “automatic limiter” mechanism that gives CCAs credit for IOU energy storage procurements for which CCA customers pay. The mechanism has been fully triggered for all CCAs and all CCAs’ energy storage obligations have been reduced to zero.

Next Steps

The reporting obligation remains in place, and the deadline for the next round of advice letters (AL) is January 1, 2022. CalChoice is working with the BBSW legal team to prepare and submit the ALs. The ALs will indicate that the automatic limiter has been triggered and that the CalChoice CCAs’ energy storage procurement obligations have been reduced to zero. However, CalChoice will also use the ALs as an opportunity to showcase each member’s energy storage procurements, including energy storage programs currently under consideration and analysis for future implementation.