California and Western Energy:� �Introduction and Agency Overview
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Dian Grueneich
Precourt Energy Scholar, Precourt Institute for Energy
Stanford University
Dian.Grueneich@Grueneich.com
February 20, 2019
Topics:
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Topics:
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Electricity System
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Bulk or Utility-Scale Generation
Transmission System
Distribution System
Utility-Owned
Independent Power Producers
Utility or 3rd Party Owned
Utility/3rd Party Operated
ISOs/RTOs
Utility Owned/Operated
Retail Service Providers
Distributed Energy Resources
Key Components
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Natural Gas System
Key Components
Topics:
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1. California Electricity Suppliers
2. Balancing Authorities
3. California Electricity System
4. California Greenhouse Gas (GHG) emissions (2016)
Who Sells Electricity in California?
Retail Electricity Sellers (88):
Load Serving Entities (LSEs):
Sources: CEC, www.energy.ca.gov/almanac/electricity_data/utilities.html (Feb. 2015); CPUC; CalCCA; CMUA
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1. What Does It Do?
2. Who Owns It?
What is a Utility?
3. Who Regulates It?
Depends on what utility does and who owns it
4. Other Players – Who Are NOT Utilities
California’s Five Largest �Electric Utilities
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Community Choice Aggregators (CCAs) are local government agencies that purchase and may develop electricity on behalf of their residents, businesses, and municipal facilities within a local or sub-regional area. Began in 2010.
What is Community Choice Aggregation?
*Image from LEAN Energy: http://www.leanenergyus.org/what-is-cca/
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Western Balancing Authorities
ISO PUBLIC © 2017 CAISO
approximately 36% of its load
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California Independent System Operator � BA Territory & Transmission Lines
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California ISO’s market footprints
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ISO Balancing Authority Area
Energy Imbalance Market
2012 vs. 2017 California Electric Use (GWh)�(70% In-State & 30% Out-of-State Imports)
Source: CEC, https://www.energy.ca.gov/almanac/electricity_data/total_system_power.html (June 21, 2018)
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Supply Type | 2012 | 2017 |
Natural Gas | 43% | 34% |
Renewables | 15% | 29% |
Large Hydro | 8% | 15% |
Nuclear | 9% | 9% |
Coal | 8% | 4% |
Unspecified Sources (NG/C/R) | 16% | 9% |
CA vs. US Electricity Sources
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14.3
12.8
6.4
6.1
9.3
Source: U.S. EIA: https://www.eia.gov/state/seds/
2016 CA Greenhouse Gas (GHG) Emissions
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Source: CARB, https://www.arb.ca.gov/cc/inventory/data/data.htm (July 11, 2018)
Emissions by GHG
Emissions by Economic Sector
Topics:
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Key CA Energy and Climate Agencies:
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Major CA Energy Agencies:
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California Energy Agencies�History
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CEC | CPUC | CAISO | CARB | CDWR |
Created in 1974 by Legislature (Warren-Alquist Act) in response to energy crises and increasing energy demand. | Created in 1911 by Constitutional Amendment (called the Railroad Comm’n) to offset power of railroads. Legislature passed Public Utilities Act in 1912. Renamed CPUC in 1946. | Created in 1998 by CA Legislature when CA restructured its electricity markets, following passage of federal Energy Policy Act of 1992. | Created in 1967 by CA Legislature to clean up CA’s air. Established prior to U.S. EPA and uniquely can set more stringent stds. | Created in 1956 by CA Legislature to build and operate State Water Project after severe flooding in North CA. |
California Energy Agencies�Structure
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CEC | CPUC | CAISO | CARB | CDWR |
Sacramento 5 Commissioners appointed by Gov, confirmed by Senate Staggered, 5 yr terms with specific expertise areas Gov designates Chair Executive Director/ GC/Hearing Officers/Public Adviser 7 Divisions
| SF/Sacramento/LA 5 Commissioners appointed by Gov, confirmed by Senate Staggered, 6 yr terms Gov designates President Executive Director/ GC/ALJs/Public Adviser/Ratepayer Advocate 10 Divisions Over 1000 Staff | Folsom 5 Bd Governors appointed by Gov, confirmed by Senate 3 yr terms Gov designate Bd Chair President & CEO 9 VPs | Sacramento 16 Board Members appointed by Gov and Leg leadership Staggered, 6 yr terms introduced in July 2018 Gov designates Board Chair Executive Office 10 Divisions >1600 staff scientists, engineers, etc. | Sacramento Director appointed by Gov, confirmed by Senate No term Gov appoints Dir 11 major divisions and 8 offices Over 3500 staff Includes SWP Power & Risk Office (PARO). |
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CEC | CPUC | CAISO | CARB | CDWR |
Part of CA Natural Resources Agency
| Constitutionally independent agency Limited judicial review of decisions | Independent, non-profit public benefit corporation created by CA law Tariffs and market rules approved by FERC | 1 of 6 departments under CalEPA Some stds approved by U.S. EPA but historical exemptions for more stringent stds | Part of CA Natural Resources Agency |
California Energy Agencies�Oversight
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CEC | CPUC | CAISO | CARB | CDWR |
State’s primary policy and planning agency. Lead CA agency for international energy activities. | State agency that regulates CA retail sellers - investor-owned utilities (IOUs), ESPs, CCAs -electric, natural gas, tele-communication. Also lead role on IOU in wildfires and safety. | Operates a competitive wholesale electricity market. Manages reliability of 80% of CA’s transmission grid. | Responsible for attaining and maintaining clean air – climate, criteria, and air toxics. Typically regulates intrastate equipment (cars, trucks, off-road vehicles) and fuels Local air districts (35) control stationary sources. | State agency responsible for managing and regulating California water resources. |
California Energy Agencies�Roles
California Energy Agencies�Energy Responsibilities (1)
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CEC | CPUC | CAISO | CARB | CDWR |
Develops CA’s Integrated Energy Policy Report Permits thermal powerplants >50MW RD&D Adopts CA’s appliance & building efficiency standards, some grants Renewable development – tracks RPS compliance
| Safety Sets electric & gas rates Sets IOU rates of return (profit) Supply side procurement/ resource adequacy/IOU PPAs Plans and permits transmission lines | Adopts rules for open access to transmission grid Centrally dispatches generation and coordinates movement of wholesale electricity Markets include energy (day-ahead and real-time)/ ancillary services | Lead agency for State Implementation Plans (SIPs) required under federal Clean Air Act for attaining national ambient air quality standards Responsible for reducing CA’s GHG emissions | Owns and operates State Water Project (SWP), largest state-built water and power system in the U.S. Operates as a utility, participating in CAISO markets Holds long-term power and transmission contracts Subject to emissions reporting and compliance |
California Energy Agencies�Energy Responsibilities (2)
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CEC | CPUC | CAISO | CARB | CDWR |
Transportation – alternative & renewable fuels, vehicles, technologies Forecasting and analysis Emergency energy planning Limited jurisdiction (RPS, EE, IRP) over state’s publicly-owned utilities | Clean Energy Programs (EE/DR, RPS/DG/Storage/ EVs, etc.) – sets goals, funds, oversees implementation Grid of the Future/New Utility Business Models R&D – funds EPIC and oversees program | Prevents market manipulation Launched Western Energy Imbalance Market (EIM) in 2014
Conducts annual transmission planning process Hosts first US renewables dispatch desk | Develops CA’s Climate Change Scoping Plan Operates CA’s Cap & Trade program Lead on low carbon, advanced transportation efforts Adopts regulations for non-stationary emissions (e.g., trucks, cars) | Implements renewable and energy efficiency projects to reduce SWP impacts Develops CA Water Plan Assists local water projects |
Challenges
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Topics:
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Key Western Energy Organizations:
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Major Western Energy Organizations:
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Western Energy Organizations�Region
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WIEB | WECC | WGA |
11 Western States and three western Canadian Provinces | Region extends from Canada to Mexico and includes Alberta, British Columbia, northern portion of Baja and all or parts of 14 Western states between | Represents the Governors of 19 Western states and 3 U.S.-flag islands |
Western Energy Organizations�History
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WIEB | WECC | WGA |
Created by Western Governors in 1970 under Western Interstate Nuclear Compact (passed by Congress). Originally intended to encourage state cooperation on nuclear energy but compact includes “related fields” so focus is all energy matters. | Formed in 1967 by 40 power systems, then known as the Western Systems Coordinating Council (WSCC). In 2002 became WECC when three regional transmission associations merged. In 2007, received delegated authority from the North American Electric Reliability Corp. (NERC) and designated Regional Entity in the Western Interconnection. | Established in 1984 through merger of two Governors’ organizations to provide strong multistate leadership on critical issues in the Western US. |
Western Energy Organizations�Structure
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WIEB | WECC | WGA |
Denver, CO 15 Board members Governor of each state/Premier of each province appoints a member to the Board. US President also appoints ex-officio member. | Salt Lake City, UT 9-member Independent Board of Directors and 6-person Executive Team, incl. CEO Board elected by WECC membership Board oversees topic committees that include stakeholders and subject matter experts | Denver, CO 22 Governors Executive Committee consists of Chairman, Vice Chairman and Immediate Past Chairman Remaining Governors serve on Board of Directors |
Western Energy Organizations�Oversight
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WIEB | WECC | WGA |
Independent organization | Delegated authority from NERC and the Federal Energy Regulatory Commission (FERC) | Independent organization |
Western Energy Organizations�Roles
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WIEB | WECC | WGA |
Provide framework for cooperative state energy efforts. Goal to “enhance the economy of the West and contribute to the well-being of the region’s people.“
| Non-profit corporation that assures a reliable Bulk Electric System in area known as the Western Interconnection. Serves as the Regional Entity for Western Interconnection. | Support bipartisan policy development, information exchange, and collective action on critical issues in Western US. |
Western Energy Organizations�Energy Responsibilities
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WIEB | WECC | WGA |
Promote energy policy developed cooperatively among member states/provinces and federal government. Oversee work of Board’s committees:
| Compliance, monitoring and enforcement of mandatory reliability standards Develop Regional Reliability Standards and WECC Regional Criteria Conduct studies and assessments for reliable planning and operation Provide education and training (standards, compliance issues, safety, bulk power system, etc.) Receives advice from Western Interconnection Regional Advisory Body (WIRAB) | Develop and promote sound public policy Exchange information and identify best practices Collect data and perform quality research Educate the public, opinion leaders and other policymakers |
Topics:
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Summing It Up
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THANK YOU!
Dian Grueneich
Precourt Energy Scholar,
Precourt Institute for Energy, Stanford University
with assistance from
Isaac Sevier