TheChangingElectricUtilityIndustry̶Roles&OpportunitiesforLocalGovernmentsYosemitePolicymakersConference|3.17.18

HowardChoyConsulting,LLC

HowardChoyConsulting,LLC

• AboutHoward…

VANIR• Vanirisanaward-winningprogram,projectandconstruction

managementfirmoperatingstrategicallythroughouttheU.S.since1980

• Vanir’sSustainabilityteamisofexpertswhoarewell-versedin:• DesignSupport,Procurement,ContractAdministration,Feasibility

Studies&Assessments,SustainabilityMasterPlanning,EnergyMasterPlanning&Audits

• HowardChoy,GeneralManager– CountyOfficeofSustainability,CountyofLosAngeles(retired)

THISISNOTACOMMUNITYCHOICEAGGREGATION

PRESENTATION

(You’rewelcome!)

VerticallyIntegratedUtilityModel

TheModelisChanging,Quickly

• IOUs,CCAs,Munis• DirectAccess• DistributedGeneration• CarbonFreePolicies

• GridCapacity,Reliability,• Resilience(regional,local)• DistributedGeneration• DistributedEnergyResources

• CustomerChoice(EV,DG,Storage,EE,microgrids,smartbuildings,etc)

• IOU,CCA,CECPrograms• CarbonFreeChoices

Consumer

Independent SystemOperatorMarkets

DODistributionOwner(Network Operator)

DSO(DistributionMarket

Operator)

TransmissionOperator

Prosumer (DER) ThirdParty (DER)

Distribution Network

Dispatch/MarketSchedule

SettlementM&V

Market Data(Internet)

DERControlandMonitoring(Internet)

Utility

Netw

ork

Bulk System

Distribution System

NetworkControl andMonitoring(SCADA)

Energy&ServicesEnergy& ServicesEnergy

PhysicalEnergy Flow

MarketCoordination

Coordination

Aggregator

IndirectDER controlvia DO

Total DSO

*SimplifiedversionofPNNL"GridArchitecture2",January2016

Newopportunitiesforelectricconsumptionundersolarpeakperiods.

Newpeakperiodrequiresefficiency,reducedconsumption

“DuckCurve”- Opportunities

CurrentOpportunities

• DirectAccess• CCAs• Traditional,Distributed

GenerationInvestments

• GridProgramsforReliability,LoadManagement

• TraditionalIOU,CECPrograms

• GridProgramsforReliability,LoadMgmt

• CCAPrograms

NewCommunityPriorities?

• Local,RegionalResilience(Grid,CriticalServices)• AvoidedGridInfrastructure(Local,Regional)• EnergySupplyManagement(Localversustraditional,

carbonfree)• LocalControl&DecisionMaking

CurrentOpportunities– JargonTime!

• GridProgramsforReliability,LoadManagement• DemandResponse(CAISO,CPUC,IOUs,3rd Parties)• LocalCapacityRequirements– RequestforOffers

§ ManagedbyIOUs§ 3rd PartyProviders§ PaidbyGridAvoidedCosts,RatepayerBenefitCharges

• RecentSCESolicitations§ WestL.A.Basin(mostofL.A.County)§ Moorpark/Goleta(mostofVentura/S.B.Counties)§ PreferredResourcePilot(portionsofIrvine)

• IOUsPowerProcurement(includessomeDERs)

LOCALCAPACITYREQUIREMENTSREQUESTFOROFFERS

• LocalCapacityRequirements(meanssupply,reliabilityneedsonthegrid)

• RequestForOffer(gridmanagerdoesasolicitation)

• LocationSpecific(theneedsareincertainpartsofthesystem)• Multipleservices(DERs,ahead/behindmeter,big/small)• Subsidizedbygridcostsavoidance,ratepayerbenefits(the

financialbenefitscomefrommultiplesources• Whycan’tanLG,CCAparticipate?Theycan!

LCRRFOcont’d

• LCRRFOVendorNeeds(LGscanhelphere!)• Localcommunityknowledge• Programcredibility,branding• Localinvolvement,promotion• Connectionsintocommunitybuildingsectors

• CommunityBenefitsofLCRRFO(reasonwhyLGshouldcare!)• Resilientlocalgrid• Mitigationoffossil-fuelprojects,gridinfrastructuregrowth

UpcomingOpportunities

• CPUCProgramsUnderDevelopment• R14-10-003,R14-08-013(AdditionalprogramsforDER

integrationintogrid)• R13-11-005EEPrograms(CCAscanaccessEE)• R15-03-011Storage(unlocksmorestoragebenefits)• A16-08-006DiabloCanyonRetirement(plantbenefitsreplaced

withDERs)• CAISODemandResponseProgram

VisionforLocalGovernmentsinThisWorld

• CCAs(finally)offerafinanciallysustainablesourceoflocalgovernmentenergyexpertiseandautonomy

• Localgovernmentsand/orCCAscanpartnerwithgridoperatorsandDERsmarketprovidersonlocal,regionalimplementation

• Localgovernmentscanimplementlocalenergyandresiliencyprojectsthatalignwithcommunityneedsandgridneeds

• LocalgovernmentscanutilizelocalplanningfunctionsinvolvingDERs,cleantransportation,microgrids,broadbandcommunicationthatsupportresilientgrids

WhattoDo• Governmentscominguptospeedonenergybuttheworldismovingtoo

quickly

• Engageyournew,financiallysustainablesourceofenergyexpertisewhoknowthis

• Getinvolvedwiththemincurrentopportunities

• Establishaplanforupcomingopportunities

• WorktogetherontheVisionwithclearCCAroles,localgovernmentroles

• JointheLocalGovernmentSustainableEnergyCoalition

ThankYou!HowardChoyConsulting,LLCchoyhowardw@gmail.com

HowardChoyConsulting,LLC