R1707007 Working Group Three Final Report · Working Group One submitted its final report on March...

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Consider Streamlining Interconnection of Distributed Energy Resources and Improvements to Rule 21.

Rulemaking 17-07-007 (Filed July 13, 2017)

WORKING GROUP THREE FINAL REPORT

JONATHAN J. NEWLANDER Attorney for SAN DIEGO GAS & ELECTRIC COMPANY 8330 Century Park Court, CP32D San Diego, CA 92123 Phone: (858) 654-1652 E-mail: jnewlander@semprautilities.com

ON BEHALF OF ITSELF AND: KEITH T. SAMPSON Attorney for: PACIFIC GAS AND ELECTRIC COMPANY 77 Beale Street San Francisco, California 94105 Telephone: (415) 973-5443 Facsimile: (415) 973-0516 E-mail: keith.sampson@pge.com

ALEXA MULLARKY Attorney for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-1577 E-mail: alexa.j.mullarky@sce.com

June 14, 2019

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Consider Streamlining Interconnection of Distributed Energy Resources and Improvements to Rule 21.

Rulemaking 17-07-007 (Filed July 13, 2017)

WORKING GROUP THREE FINAL REPORT

Pursuant to the Scoping Memo of Assigned Commissioner and Administrative Law Judge,

dated October 2, 2017, as modified by the Assigned Commissioner’s Amended Scoping Memo

and Joint Administrative Law Judge Ruling, dated November 16, 2018, San Diego Gas &

Electric Company (U 902-E), on behalf of itself and Pacific Gas and Electric Company (U 39-E)

and Southern California Edison Company (U 338-E), hereby submits the Working Group Three

Final Report.

Respectfully submitted,

/s/ Jonathan J. Newlander _______________________ Jonathan J. Newlander Attorney for SAN DIEGO GAS & ELECTRIC COMPANY 8330 Century Park Court, CP32D San Diego, CA 92123 Phone: 858-654-1652 E-mail: jnewlander@semprautilities.com

On Behalf of San Diego Gas & Electric Company (U 902-E), Pacific Gas and Electric Company (U 39-E), and Southern California Edison Company (U 338-E)

June 14, 2019

Working Group ThreeFinal Report June 14, 2019

California Public Utilities Commission Interconnection Rulemaking (R.17-07-007)

TableofContentsWorkingGroupThreeBackground.................................................................................................3Issue12,Proposals12-ato12-j....................................................................................................10Issue15,Proposals15-ato15-b..................................................................................................24Issue16,Proposals16-ato16-d..................................................................................................27Issue20,Proposals20-ato20-c...................................................................................................33Issue22,Proposals22-ato22-b..................................................................................................40Issue23,Proposals23-ato23-i....................................................................................................61Issue24,Proposals24-ato24-c...................................................................................................99Issues27and28,Proposals27-ato27-candProposal28-a......................................................110IssuesAandB,ProposalsA-B#1toA-B#4................................................................................125IssueD........................................................................................................................................139AnnexesAnnexA:Issue16,ProposalRefinementbyProponents.............................................................32AnnexB:Issue20,PotentialUseCasesofTransferfromRule21toWDAT................................39AnnexC: Issue22,DetailedDescriptionsofSub-Proposals.........................................................46AnnexD:Issue22,PartyCommentsonSub-Proposals................................................................50AnnexE: Issue23,SurveyonV2G-AC(Mobile)Pilots..................................................................88AnnexF: Issue27,FrameworkofOperationalCategoriesforSmartInverterFunctions..........117AnnexG:Issue27,UseCasesandPartyCommentsonUseCases............................................119

WorkingGroupThreeBackgroundProceduralBackgroundOnJuly13,2017,theCaliforniaPublicUtilitiesCommission(“CPUC”or“Commission”)issuedanOrderInstitutingRulemakingtoconsideravarietyofrefinementstotheinterconnectionofdistributedenergyresourcesunderElectricRule21.OnOctober2,2017,theCommissionissuedascopingrulingforR.17-07-007directingPacificGasandElectric(“PG&E”),SouthernCaliforniaEdison(“SCE”),andSanDiegoGasandElectric(“SDG&E”),ortheinvestor-ownedutilities(“IOUs”or“utilities”),toconveneeightworkinggroupstodevelopproposalstoaddresstheissues.1WorkingGroupOnesubmitteditsfinalreportonMarch15,2018.WorkingGroupTwosubmitteditsfinalreportonOctober31,2018.2AnamendedscopingmemoonNovember16,2018taskedthethirdworkinggroup,“WorkingGroupThree,”tocommenceonDecember1,2018andtodevelopandfileafinalreportbyJune14,2019forrecommendingproposalstoaddresselevenissues.TheamendedscopingmemoscheduledaworkshoponWorkingGroupThreeproposalsforJune21,2019,scheduledanAdministrativeLawJudge(“ALJ”)rulingontheWorkingGroupThreeReportbyJuly19,2019,establishedadue-dateforcommentsonWorkingGroupThreeproposalsbyAugust2,2019,andestablishedadue-dateforreplycommentsbyAugust12,2019.3WorkingGroupScopeWorkingGroupThreedevelopedproposalsaddressingelevenissues(12,15,16,20,22,23,24,27,28,A,andB)fromtheNovember16,2018amendedscopingmemo:

Issue12.HowcantheCommissionimprovecertaintyaroundtimelinesfordistributionupgradeplanning,costestimation,andconstruction?ShouldtheCommissionconsideradoptingenforcementmeasureswithrespecttothesetimelines?Ifso,whatshouldthosemeasuresbe?Issue15.ShouldtheCommissionrequireitemizedbillingfordistributionupgradestoenablecustomercomparisonbetweenestimatedandbilledcostsandverificationofthe

1R.17-07-007ScopingRuling,October2,2017(http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M196/K476/196476255.pdf).2InterconnectionRulemaking17-07-007,https://www.cpuc.ca.gov/General.aspx?id=6442455170,pageupdatedJanuary20193R.17-07-007AmendedScopingMemoandJointRuling,November16,2018(http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M241/K155/241155616.pdf)

accuracyofbilledcosts?Issue16.ShouldtheCommissionencouragethirdpartyconstructionofupgradestosupportmoretimelyandcost-effectiveinterconnectionand,ifso,how?Issue20.HowshouldtheCommissioncoordinateCommission-jurisdictionalandFederalEnergyRegulatoryCommission-jurisdictionalinterconnectionrulesforbehind-the-meterdistributedenergyresources,includingmodificationofqueuingrulesforRule21andWholesaleDistributionAccessTariff(WDAT)projectsseekingtointerconnectatthesamelocation,clarificationoftherulesforprojectswantingtotransferbetweentheRule21andWDATqueues,andstreamliningofthetransferprocess?Issue22.ShouldtheCommissionrequiretheUtilitiestomakeimprovementstotheirinterconnectionapplicationportals?Ifyes,whatshouldthoseimprovementsbe?Issue23.ShouldtheCommissionconsiderissuesrelatedtotheinterconnectionofelectricvehiclesandrelatedcharginginfrastructureanddevicesand,ifso,how?Issue24.ShouldtheCommissionmodifytheformulaforcalculatingtheCost-of-Ownershipchargeand,ifso,how?Issue27.Whatshouldbetheoperationalrequirementsofsmartinverters?WhatrulesandproceduresshouldtheCommissionadoptforadjustingsmartinverterfunctionsviacommunicationcontrols?Issue28.HowshouldtheCommissioncoordinatewiththeIntegratedDistributedEnergyResourceproceedingtoensureoperationalrequirementsarealignedwithanyrelevantvaluationmechanisms?IssueA.Whatchangesareneededtoclarifytheparametersforapprovalofsystemdesigntoachievenon-exportandlimitedexport.IssueB.Howshouldutilitiestreatgeneratingcapacityforbehindthemeterpairedsolarandstoragesystemsthatarenotcertifiednon-export?

TheNovember16,2018amendedscopingmemoalsoincludedIssueDaspartofIssue12.WorkingGroupThreediscussedIssueD,andthesediscussionsresultedinastatementinthefinalreportthatnoproposalwasnecessaryforIssueD:

IssueD.WhenshouldtheCommissionconsiderresultsofaninitialreviewordetailedstudytobebinding?UnderwhatcircumstancesshouldtheCommissionallowtheresultstobechanged?

WorkingGroupProcessWorkingGroupThreemet18timesbetweenNovember28,2018andMay29,2019todevelopproposalstoaddressIssues12,15,16,20,22,23,24,27,28,A,B,andD.Ninemeetingswereviateleconferenceandlasted2hours,andninemeetingswerein-personmeetingsthatlasted4hours.Mostofthein-personmeetingstookplaceattheCommission’sSanFranciscooffices,andthreemeetingstookplaceatothervenuesinSanFranciscoandOakland.Inaddition,thereweresixjointmeetingsofWorkingGroupThreeandtheSmartInverterWorkingGroupviateleconferencethatlasted1.5hours,todiscussIssues27and28.ThosejointWG3-SIWGmeetingsbeganonDecember19,2018andconcludedonApril4,2019.WorkingGroupmeetingsincludedfourmeetingsspecificallydesignatedtodiscussthefinalreporttowardstheconclusionoftheWorkingGroup,fromMay1,2019throughMay29,2019.Twoofthesemeetingswere2-hourteleconferencesandtwowere4-hourin-personmeetings.Therewerealsoanumberofsub-groupmeetingsthattookplaceoutsideoftheregularWorkingGroupmeetings,forsupplementaldiscussionthatpartiesdeemedusefultomakeprogressonproposalsforanumberofissues.Inparticular,sub-groupsmetonIssues12,22,23,27-28,andA-B.Typically,sub-groupswereformedduringanormalWorkingGroupmeeting,witheitherGridworksasfacilitatororapartysuggestingthatasub-groupmeet,andapollbeingtakenduringthemeetingofpartiesdesiringtoparticipateinthesub-group.Proponentsintheprocessofwritingorrevisingproposalsalsoconsulteddirectlywithoneormoreotherpartiesastheydeemedusefulintheprocessofdevelopingtheirproposals.GridworkswascontractedtofacilitateWorkingGroupThree,whichincludedmaintainingtheWorkingGroupparticipantlist,managingtheWorkingGroupschedule,arrangingmeetinglogistics,settingmeetingagendas,sendingmeetingannouncements,preparingmeetingslidedecks,takingandissuingmeetingnotes,framingissuestofacilitateproductivediscussion,preparingbackgroundissuebriefsforsomeoftheissues,facilitatingtheformationofsub-groupsledbyparties,supportingproponentswhoweredraftingproposals,coordinatingcommentsandcounter-proposalsonproponentproposals,writingfinalreportdraftsforeachissueinthreestagesofrevision(versions“v1”,“v2”,and“v3”),settingthescheduleoffinalreportreviewandrevision,providingguidanceonthescopeofpartycommentsforeachrevisionstage,solicitingandincorporatingpartycommentsonfinalreportdrafts,andpreparingthefinalreport.TheWorkingGroupschedulewasdesignedsuchthattherewouldbeaninitialdiscussionandafinaldiscussiononeachissue(seeTable1).Thismeantthatdiscussionofseveralissueswasoftenproceedinginparallel.Inanygivenmeeting,discussionofaparticularissuemightbescheduledforadurationrangingfrom20to90minutes.Onsomeissues,Gridworkspreparedanissuebrieffortheinitialdiscussion,andonsomeissuesapartyproponentpreparedtheissuebrief.Followingtheinitialdiscussion,partiesdevelopedproposals,whichwerediscussed,developedandcommenteduponinmultipleroundsinthe

courseofmultipleWorkingGroupmeetings.Atvariousstagesoftheprocess,utilitypartieswererequestedtocommentonproponentproposalsbygivendeadlines,andoftensubmittedcounter-proposalsinthecourseoftheircomments.ForIssues22and23,surveyswerealsoemployed,withon-linesurveylinkssentouttoallWorkingGroupThreeparticipants.Theintentionofthisschedulewasthatbythefinaldiscussionforagivenissue,proposalsandpartypositionswouldbefinalized.Followingthefinaldiscussion,anissueproponentwouldfinishwritingtheirfinalproposal,andGridworkswouldthenwritethefirstdraftofthefinalreportforthatissue,basedontheunderstandingsreachedinthefinaldiscussionandonthefinalproponentproposal.(Note:asthisprocesswasdevelopedduringthecourseoftheWorkingGroup,someofthefirstissuestobeaddresseddidnotfollowthisformatascloselyasthelaterissues,notablyIssues12,15,and16.)Completionofthefinalreportforeachissuethenproceededinwritinginthreeiterations(versionsv1,v2,v3),followedbydiscussionandresolutionatfourmeetings(May1,May8,May22,andMay29)dedicatedtothefinalreport,includingreviewofthetext,andeditingandagreementonanyoutstandingpointsrequiringresolutionthatremainedinthetext.Table1:ScheduleofWorkingGroupDiscussionsbyIssueIssue(s) Initial

discussionFinal

discussionNumberofmeetings

12,15 12/12/18 2/13 716 1/10 2/13 520,24 3/6 4/17 522 3/6 3/27 323 1/10 3/27 927,28 12/19/18 4/17 7*A,B 1/23 3/6 5(*)SixofthesevenmeetingsforIssues27and28werejointmeetingswiththeSmartInverterWorkingGroupConsensusandNon-ConsensusProposalsWorkinggroupmembersmadesignificanteffortstoreachconsensusoneachissue.Ofthe41individualproposalsacrossallelevenissues,23ofthesewereconsensusproposalsand18werenon-consensusproposals.Generally,therewasenoughtimeoverthecourseofmultiplemeetings,commentsolicitations,andoff-linediscussionstoreachreasonableunderstandingofwhetherconsensuscouldbeachievedonanygivenproposal.Forproposalswhereconsensuswasnotreached,partieshadfundamentallydifferingviewpointsthatcouldnotberesolved,andmorediscussiontimewouldlikelynothaveresultedinconsensus.

TheexceptionmighthavebeenIssues22,23,24,and27,wheremoretimemighthaveresultedinfurtherprogress,butinthesecasesaverysubstantialamountofadditionaltimewouldhavebeenrequired,muchmorethantheWorkingGroupcoulddevote.GiventhetimeconstraintsoftheWorkingGroup,Issue22containsaconsensusproposalcallingforfurtherCommissionaction,Issue23containsanon-consensusproposalcallingforasub-grouptobeformedtocontinueworkingontechnicalrecommendations,andIssue27containsanon-consensusproposalcallingforaworkshopatalaterdate.Aproposalmarked“consensus”receivedgeneralsupportfromallWorkingGroupmemberswhoparticipatedinmeetingswhenthatproposalwasdiscussed,andnopartyexpressedopposition.Aproposalmarked“non-consensus”receivedbothsupportandoppositionfrommemberswhoparticipatedinmeetingswhenthatproposalwasdiscussed.Forproposalswhereconsensuswasnotreached,theWorkingGroupattemptedtodocumentthevariousviewpointsinfinalreport“Discussion”sectionstoprovidetheCommissionwithsufficientinformationtomakeaninformeddecision.Non-consensusproposalsalsoincludealistofsupportersandopponentstoprovideinformationabouttheextenttowhichtheproposalwassupportedandopposed.AllpartiesweregivenafinalopportunityduringdraftingofthisFinalReporttoindicateorchangetheirsupport/opposepositiononthelistofsupportersandopponentsonanyproposal,basedonthefinalwordingofeachproposal.PartiesweregivenuntilMay31tosoindicate;however,anychangesinsupport/opposepositionafterthefinalMay29WorkingGroupmeetingcouldnotbeaccompaniedbyotherchangestothetextofpartypositionsorproposalDiscussionsections.Substantiveareasofnon-consensus,withoneormorenon-consensusproposalsdevelopedtoaddresstheseareas,included:

Issue12: Timelinesandgoalsfortimelinetracking,reviewofprogresstowardsgoals,andsubstationupgradenotifications

Issue16: Third-partyworkonexistingde-energizeddistributionsystemsIssue23: Formingasub-grouptoaddresstechnicalrequirementsforV2G-AC(mobile

inverter)interconnections,clarifyingapathwayforpilotorexperimentaluseofV2G-ACsystems,andaddingtrackingofV2Ginterconnectionstointerconnectionportals

Issue24: Cost-of-ownership(COO)asappliedtolike-for-likereplacements,

replacementcostscomponentofCOO,andtheconceptofnet-additionalCOOIssue27: ConveningaworkshoponDERMsandconveningtheSmartInverterWorking

GrouptorefinespecificationsfortheSetActivePowerModefunction

IssueA-B:Allowinginvertersettingstovaryseasonallyoverthecourseofayear(to

allowforschedulingunderWorkingGroupTwoIssue9)Anumberofotherareasofnon-consensusaroseinvariousissuesduringdiscussions,buttheseareasdidnotresultinnon-consensusproposals,mainlybecauseeitherproponentswithdrewtheproposals,orbecausecompromisesand/orconsensuswasabletobereachedonotherrelatedproposals.WorkingGroupMaterialsWorkingGroupmaterialswerepostedtoandavailablepubliclythroughouttheWorkingGroupprocessontheGridworksWorkingGroupThreewebsite:https://gridworks.org/initiatives/rule-21-working-group-3.Inaddition,theWorkingGroupmadeactiveuseofaOneDrivesharedfilespace,whichcontainedalltheproposals,counter-proposals,andpartycommentsonallissuesdiscussed,includingmultipleroundsofpartycommentsandeditsondraftversionsofthisFinalReportforeachissueindividually.WorkingGroupParticipants“WorkingGroupThree”(orjust“theWorkingGroup”)referencesallactivepartiesparticipatinginWorkingGroupThreemeetings,whichincludetheutilities,governmentrepresentatives,developers,nonprofits,andindependentadvocatesandconsultants.Thefinalreportistheproductofwrittenandoralcontributionsfromparticipantsrepresentingthefollowingorganizations.CaliforniaEnergyCommission(“CEC”)CaliforniaEnergyStorageAlliance(“CESA”)CaliforniaIndependentSystemOperator(“CAISO”)CaliforniaPublicAdvocatesOfficeCaliforniaPublicUtilitiesCommissionCaliforniaSolar&StorageAssociation(“CALSSA”)CleanCoalitionElectricPowerResearchInstitute(“EPRI”)eMotorWerksEnphaseFiatChryslerGreenPowerInstitute(“GPI”)HondaInterstateRenewableEnergyCouncil(“IREC”)JKBEnergyKituSystems

LPSNuvveOpengridPacificGas&Electric(“PG&E”)SocietyofAutomotiveEngineers(“SAE”)SmallBusinessUtilityAdvocates(“SBUA”)SouthernCaliforniaEdison(“SCE”)SanDiegoGasandElectric(“SDG&E”)SolarEdgeStemSunrunSunworksTechFlowTeslaTheUtilityReformNetwork(“TURN”)WilldanX-Utility

Issue12HowcantheCommissionimprovecertaintyaroundtimelinesfordistributionupgradeplanning,costestimation,andconstruction?ShouldtheCommissionconsideradoptingenforcementmeasureswithrespecttothesetimelines?Ifso,whatshouldthosemeasuresbe?PROPOSALSUMMARIESProposal12-a.ConsensusEstablishaframeworkforquarterlytrackingandreportingontimelinesfortheinterconnectionapplicationreviewprocessandfordesignandconstructionofinterconnection-relateddistributionupgrades.Theframeworkincludestwelvespecifictimelinesfortrackingandreporting.Proposal12-b.Non-consensusIncludesevenadditionaltimelinesintheframeworkfortrackingandreporting.

Supportedby: CALSSA,CleanCoalition,GPI,IREC,JKBEnergyOpposedby: PG&E,SCE,SDG&E

Proposal12-c.ConsensusEstablishstandardtimelinesfordesignandconstructionofinterconnection-relateddistributionupgrades,whichcanbeeither:(i)60businessdaysfordesignand60businessdaysforconstruction;or(ii)designandconstructiontimelinesasagreedwithcustomer.Proposal12-d.Non-consensusEstablishstandardtimelinesforinstallationofNetGenerationOutputMeters(NGOMs),whichareeither:(i)20businessdaysfordesignandinvoicing,and20businessdaysforconstruction;or(ii)designandconstructiontimelinesasagreedwithcustomer.

Supportedby: CALSSA,CleanCoalition,GPI,IREC,JKBEnergy,SDG&E,TeslaOpposedby: PG&E,SCE

Proposal12-e.ConsensusCustomerswillbenotifiedwheneveratimelineisnotmet,andnotificationwillinclude:(a)newexpecteddate;(b)categoryofdelay;and(c)reasonforthedelay.Proposal12-f.Non-consensusSetanoverallgoalthat95-100%ofprojectsmeetalltimelineswithintheframeworkfortrackingandreportingwithintwoyearsafterthestartoftracking.

Supportedby: CALSSA,CleanCoalition,GPI,IREC,JKBEnergy,SCE,TeslaOpposedby: PG&E,SDG&E

Proposal12-g.Non-consensusIfinitialtrackingrevealsthatautilityisnotmeetingthegoalestablishedbyProposal12-f,theutilityshall:(1)setadditionalintermediategoalswithinthefirsttwoyearsafterthestartoftracking,and(2)establishaprocesstoachievecompliancewithintwoyearsofthestartoftracking.

Supportedby: CALSSA,CleanCoalition,GPI,IREC,JKBEnergy,TeslaOpposedby: PG&E,SCE,SDG&E

Proposal12-h.Non-consensusTheoverallgoalfortimelinesfromProposal12-fwouldapplyto:(i)allnon-NEMprojects;and(ii)allNEMprojects>30kW.

Proposal12-i.Non-consensusAftertwoyearsoftrackingandreportinghavebeencompleted,EnergyDivisionwillreconvenethepartiesforadiscussionofwhetherthegoalshavebeenachievedand,ifnot,whatfurthersteps(ifany,basedonthesituationpresented),wouldbeappropriatetotake.TheCommissionshouldclearlyindicatethatfinancialpenaltieswillbeonthetablefordiscussionifthegoalsarenotmet.

Proposal12-j.Non-consensusUtilitiesshouldprovidequarterlyupdatesonsubstationupgradestoapplicantswhoseprojectsaredependentonagivensubstationupgrade.

BACKGROUNDIssue12wasdiscussedoverthecourseoffourWorkingGroupmeetingsandthreeconferencecalls.Duringinitialdiscussionsandinproposals,somepartiesclaimedthatdistributionupgradedesignandconstructiontimelinesarenotbeingset,communicated,and/oradheredtoinasufficientlypredictableandconsistentmanner.Somepossibleconsequencesarethat:(a)projectdeveloperscannotgivereliableestimatestotheircustomers;(b)customersmayhavetocarrytheirownfacilitiesloanorleasingcostsforwhatcouldbeconsideredunreasonablyorunpredictablylongperiods,forgoingrevenuetocoverloanorleasecostsuntilfacilitiesareoperational;and(c)utilitiesarenotbeingheldsufficientlyaccountableforcommunicatingandadheringtotimelines.Thesignificance,validity,andseriousnessoftheaboveclaimsvarieddependingonutility,projecttype,andprojectsize.

Somepartiesclaimedthatdelays,uncertainties,andlackofcommunicationareseriousissues,affectingthecommercialviabilityofbusinesses,jobs,andtheverywillingnessofcompaniestooperateinthedistributedenergysector.TheWorkingGroupreviewedsomedataandexamplesrelatedtotimelineissues,butrecognizedthatcomprehensivedataregardingspecificmilestonesdiscussedwithintheIssue12proposaldoesnotcurrentlyexist.Partiesalsocitedspecifictypesofprojectsthatcouldbeassociatedwithsignificantdelaysanduncertainties,againdependingontheutility,suchasNEMaggregationprojects(whichcanrequirereviewofownershipandland),additionalmeteringforsolarandstorage(withexamplesofthistaking6-12months),andsomeresidential5-kW-rangesolarsystems(withexamplesoftaking6-12monthsforatransformer).Fundamentally,partieswishedtoseemeasuresthatwouldcreatehigherlevelsofaccountability,transparency,communication,andconsistencyaroundalltimelines,andtoidentifyareasexperiencingchallengesthatwouldbenefitfromfurtherreview.Timelyandconsistentnotificationsofproject-specificdelaystodevelopersandcustomerswasalsoidentifiedasanareaofconcern.Whilethereissomelimitedreportingavailabletoparties,publicinterconnectionqueues,andindividualIOUNEMdata,therearegapsinthosesourcesthatpreventtheutilities,stakeholdersandCommissionfromhavinganobjectivesourceofdatatofacilitatediscussionsaboutwhatis,andisnot,workingintheprocess.Partiesinthepasthaveproposeddatagathering,andthediscussionrecognizedthattheCPUCisalreadyconductinganindependentstudyreviewofinterconnectiontimelinesduring2019.Nevertheless,PartiesgenerallyagreedthatIssue12proposalscanbeputforthinparallelwiththatindependentreview.Utilitiesprovidedinformationontheircurrentpracticesrelatedtoupgradetimelines.Allutilitiessaidimprovementshadbeenmadeandwerebeingmadeintimelinesetting,communication,andadherence,andthatanecdotesbypartiesmightrelatetopastpracticesandnotthecurrentsituation.Withrespecttotheupgradetimelines,SDG&Enotedthatitagreesonspecifictimelineswiththecustomerforeachproject,andthesetimelinesareincludedininterconnectionagreementsanddiscussedandupdatedwiththecustomerthroughouttheprojectlifecycle.SCEnotedthatitalreadyprovidesbest-practiceupgradetimelines,whichinclude60businessdaysfordesignand60businessdaysforconstruction,andthattimelinesareincludedininterconnectionagreements.PG&Esaidithadbeenworkingonserviceplanningimprovementsforthepastthreeyears,andrecentlysetupadedicatedcentralizedworkgrouptohandleallgenerationinterconnectionrequests,anexpectedimprovementbecausenotallregion-basedcostestimatorsareveryfamiliarwithgenerationinterconnections.Withrespecttothebroaderprocesstimelines,eachoftheutilitiescurrentlyhasadifferentmethodfortrackingtimelines.Forsomeutilities,notallthetimelinesinRule21arecurrentlytrackeddirectlyandthusthepartiesworkedtogethertocomeupwithalistoftimelinestotrackthatcouldbereasonablyachievedbyalltheutilities.Utilitiesalsoexplainedsomeofthefactorsthatcausevariabilityanduncertaintiesintimelines.Forexample,somefactorsthatextendconstructiontimelinesandonlybecomeapparentafterdesigniscompletedare:(a)whenreplacingapoleneedtocoordinatewithotheragenciesandthemechanismforapprovalbyotheragenciescanbea45-dayprocess;(b)theFAAbecomesinvolvedifthereisaneedtoincreaseheightofpoleby1ftormore,andFAAhas45daystorespond;and(c)

landrightsorpermittingissues.Also,constructiontimelinevariabilityoruncertaintiescomefromconstructioncrewsbeingusedforemergencywork,stormduty,orifacustomersiteisnotreadyorcustomerhasn’tdonenecessarypreparationwork.Ingeneral,timelinesdependonscopeofwork,jurisdiction,thetimingofconstruction,thetypeofconstruction,permits,environmentalreviews,environmentalmitigations,trenching,timeofyear(i.e.,cannothavesubstationoutagesduringthesummer),etc.Anotherfactorcitedwastheintroductionofnewtechnologies,especiallyintroductionofnewtypesofbatteriesinhomesystems,whichmeansthatsystemplannersnotfamiliarwiththetechnologieshavetolearnaboutthemfirst.Inaddition,interconnectioncustomersalsohavetoensuretheirportionoftheprojectiscompletedtoallowfortheutilityconnectionwhichisnotwithintheutility'scontrolandcanalsoleadtorelatedutilitydelaysiftheinterconnectioncustomer'sportionoftheprojectisnotready.Non-utilitystakeholdersrespondedtotheseutilityexplanationsoffactorsbysayingthatexceptionswillalwaysbeneededforemergencies,delaysfromotheragencies,andotherreasons,butthatitisstillusefultohavestandardexpectations.Althoughthescopingmemoreferredspecificallytoupgradetimelines,partiesalsodiscussedtheneedforimprovedtrackingandaccountabilityforallRule21timelines,includingspecificallythoseassociatedwiththemajorprocesssteps.ThediscussionalsonotedthelinkageofIssue12withIssue22oninterconnectionportals,inprovidingonlinetimelineinformation,updates,andnotifications.DISCUSSIONProposal12-a.ConsensusEstablishaframeworkforquarterlytrackingandreportingontimelinesfortheinterconnectionapplicationreviewprocessandfordesignandconstructionofinterconnection-relateddistributionupgrades.Theframeworkincludestwelvespecifictimelinesfortrackingandreporting:

1. TimefromsubmissionofInterconnectionRequest(IR)toutility’sacknowledgmentofreceipt2. TimefromsubmissionofIRtotimedeemedcomplete3. TimefromIRdeemedcompletetocompletionofinitialreviewandprovisionofresults4. TimefromSupplementalReviewstartdatetocompletionofSupplementalReview5. TimefromElectricalInterdependenceTest(EIT)startdatetoEITcompletion.6. TimefromEITcompletionuntilEITresultsscopingmeetingisheld.7. Timefromstudyscopingmeetinguntilstudyagreementprovided.8. TimefromSystemImpactStudystartdatetoSystemImpactStudycompletiondate9. TimetoprovideDraftGeneratorInterconnectionAgreementafterapplicablemilestone10. TimefromDraftGeneratorInterconnectionAgreementProvidedorFinalStudyReportdate

forDetailedStudytodateGeneratorInterconnectionAgreementexecuted11. Timefromwhenthecustomerprovidestheutilityithascompletedallofitsobligations

undertheagreements(F.5.b),includingcommissioningtests,towhentheutilityprovidesthecustomerPermissiontoOperate

12. TotaltimefromsubmissionofIRtoPermissiontoOperate(note:notinRule21,trackedforinformationalpurposes)

Utilitiesdidnotwanttoestablishretroactivebaselinedata,sayingtheburdenwastoogreat,butlookedtoestablishfuturebaselines,forexamplewithinsixmonthsaftertrackingbegins.SCEcommentedthatitstrackingandreportingoftimelines#2and#3donotincludereportingongeneratinginitial(non-binding)estimatesofupgradecosts,whenrequired.SCEalsocommentedthattimelines#11and#12bothincludecustomersponsoreditems,andthattrackingofthesetimelinesisbeingproposedforinformationreportingpurposesonly,anddoesnotimplythatatimelinemetricisbeingsuggestedorisnecessary.SCEsaidthattimelinetrackingwillnecessitatesomeconfigurationinexistingsystemstoenablecomprehensivereportingcapability.SCEproposedtomodifyitsexistingsystemstoenabletimelinereportingofaforementionedprocesssegments.TimelinereportingbySCEmaycommenceasearlyasJuly2019;iftimelinereportingisexpectedtonotcommencebythisdate,SCEwillinformWorkingGroupThree.SCEfurthercommentedthatithasanewITplatformcurrentlyunderdevelopmentwhichwillbedesignedtoenableenhancedvisibilityoftimelinetrackingforcustomersinthenearfutureandwhichwillmakereportingofthosemetricstoregulatorsmoreefficient.EachutilityoperateswithitsownITplatformandresourcesandwillhavetomakerespectiveadjustmentsinordertoreportmoreeffectively.PG&Eagreesinprinciplewithestablishingaframeworkfortrackingandreportingontimelinesasameansforidentifyingprocessgapsandmovingbeyondanecdotesfordeterminingareasoftheprocesswiththemostneedforimprovement.Proposal12-b.Non-ConsensusIncludesevenadditionaltimelinesintheframeworkfortrackingandreporting,forpurposesofeitheraccountabilityorinformation.

Theproposedsevenadditionaltimelinesare:

TimelinealreadydefinedinRule21(asdefinedstepsinthescreeningprocess),trackedforaccountabilitypurposes:

• Timefromrequesttoconsidermodificationtodeterminationwhethermodificationis

material(F.3.b.v).

TimelinesnotalreadydefinedinRule21,trackedforaccountabilitypurposesusingtimelinesproposedbelow:

• Timeforrespondingtoline-sidetapsvariancerequests(forutilitiesthatrequirea

variancerequest)• Designandinvoiceofnetgenerationoutputmeter• Installationofnetgenerationoutputmeter

TimelinesnotalreadydefinedinRule21,trackedforinformationalpurposes:• Timefromcustomeragreementtoproceedtofinaldesignandissuanceofinvoice• Timefromcustomerpaymentofinvoiceandcompletionofcustomerworktocompletion

ofupgradeconstruction• TimeforschedulingofCommissioningTest.

Proponentpositions:

IRECconsidersthesetimelinesasaninterimstepthatcancommencequickly(bymid-2019)tobegintrackingtheprocessandconstructiontimelinesinRule21.ThisisnotintendedtoreplaceorcircumventtheeffortsoftheoutsidereviewbeingdonebytheEnergyDivisionconsultant.IREC,inparticular,believesthattherearelikelymoretimelinesthatmayneedtobetracked,butagreesthatthelistidentifiedhereisagoodstartfornow.IRECsaysthereisnocleartimelineforschedulingofacommissioningtest,despitethefactthatthisisacriticallyimportantjunctureforprojectstofinallyobtainpermissiontooperate.Itisthusimportanttotrackthissteptoensurethatitishappeningwithinareasonabletimeframe.ThelackofatimelineintheTariffdoesnotmeanthisisnotimportanttotrackforinformationalpurposes.CALSSAcalledthetimelineforrespondingtoline-sidetapsvariancerequestsa“painpoint”fordevelopersandsaidthisshouldbeincludedintheproposaltofosteraccountability.IRECbelievestherearegoodreasonstotracktheRule21timelineforrespondingtomodificationrequests(F.3.b.v),sayingitisanimportantstepintheprocessandhasbeenthesourceofcontroversyandthusshouldbetrackedandreportedon.Teslasaysthatdesignandinvoiceofnetgenerationoutputmeterandinstallationofnetgenerationoutputmeterarestepsthathavehistoricallyposedsignificantchallengesintermsoftheamountoftimetaken,andneedtobetracked.

Utilitypositions:

SCEdoesnotagreetoincludetimelinesforrequestsformodificationsandschedulingofcommissioningtestasrefinedmodificationprocedureswerejustapprovedinMarch2019andarependingupdateinthetariffwithsubsequentAdviceLettersandrelatedreview/approvalforthcoming.Inaddition,theCommissioningtestisnotaonesideutilityobligationandiscontingentontheinterconnectioncustomeragreeingtotestandprovidingaccessandthereforeshouldberemovedasitiscustomercontingentaswell.

SCEandSDG&Esaidothertimelineissuescouldbelookedintointhefuture,giventheoverallframeworkbeingestablishedinProposal12-a.SDG&Ebelievessomeoftheseadditionaltimelinesaremoreofaprocessissueandnotatrackingissue,andthattheInterconnectionDiscussionForumisthepropervenuetofurtherdiscuss.

Proposal12-c.ConsensusEstablishstandardtimelinesfordesignandconstructionofinterconnection-relateddistributionupgrades,whichcanbeeither:(i)60businessdaysfordesignand60businessdaysforconstruction;or(ii)designandconstructiontimelinesasagreedwithcustomer.Therewasconsensusthatthe“60-dayclock”inthecaseofoption(i)wouldcommenceuponpaymentandafterthecustomerhasdoneeverythingnecessaryontheirendtoprepareforconstruction.Proposal12-d.Non-consensusEstablishstandardtimelinesforinstallationofNetGenerationOutputMeters(NGOMs),whichareeither:(i)20businessdaysfordesignandinvoicing,and20businessdaysforconstruction;or(ii)designandconstructiontimelinesasagreedwithcustomer.

Supportedby: CALSSA,CleanCoalition,GPI,IREC,JKBEnergy,SDG&E,TeslaOpposedby: PG&E,SCE

CALSSAidentifiedNGOMstimelinesasanimportantissueinitsoriginalproposal.TherewassomediscussionoftheneedfortimelinesspecifictoNGOMs.CALSSAinitiallyproposedthe20days/20daysforallprojects.Partiesnotedthatitneedstobeveryclearwhatconditionsstartthe20-dayclocks,includingcustomernotificationthatcustomerisready,customerhasprovidedallinformationneededinordertoinvoice,paymenthasbeenmade(invoicepaid),andinspectioniscomplete(alwayswithlocalinspectors).Partiessuggestthatthetimelinesfordesignandestimateshouldbeginuponsubmissionofasignedinterconnectionagreement,andforconstructionthetimelineshouldstartonmeterreleaseorreceiptofpayment.Utilitypositions:

SDG&Eagreestoproposal,andsaiditsupportstheabilitytohavetwo-wayflexibilitywiththecustomerinagreeingtothedurationwiththecustomerupfrontasit’sSDG&E’sgoaltomeetthecustomersinservicedate.

SCEdoesnotagreetotheproposal,andsaysitcurrentlyachieves1-2-monthinstallationforthevastmajorityofNGOMinstallations.However,processimprovementsthatrequireITsystemfunctionimprovementareindevelopmenttoaddresstheminorityofcomplexNGOMinstallationsrequiringlengthiertimeframes.TheseprocessimprovementsarealreadyunderwaywithafocusonadministeringNGOMrequestsinasimilarfashionaswithexistingNEMPairedStorage,whichcurrentlyaverages2monthsforinstallation.SCEalsoofferedtoprovideinterimupdateseitherthroughtheinterconnectionforumorothermeans.SCEnotedduringthediscussionthat20daysfordesignand20daysforconstructionwasnotbasedonaveragetimelinetrackingbutwasanarbitrarytimelineproposedbyCALSSA,althoughSCEsupportsestablishingareasonabletimeline.PG&EisopentodevelopingITinfrastructuretotrackNGOMtimelines,butdoesnotagreewithestablishingatimelineof20businessdaysfordesignand20businessdaysforconstructionasthesetimelinescanvaryacrosstheserviceterritorybasedonlocalneeds.

Proposal12-e.ConsensusCustomerswillbenotifiedwheneveratimelineisnotmet,oratriskofnotbeingmet,andnotificationwillinclude:(a)newexpecteddate;(b)categoryofdelay;and(c)reasonforthedelay.Thereasonfordelaywillbeselectedfromsetcategoriesofreasons.Thecategoryofdelayisneededinordertotrackwhichtypesofdelaysaremostcommon.However,onthequestionoffurtherdetailingofreasonfordelaybeyondasetcategory,therewasnon-consensusamongparties.CALSSAandIRECproposedthatutilitiesprovideproject-specificreasonsfordelaystodemonstratewhyaprojectisdelayed,andthattheutilityhadgivenspecificattentiontothedelayforthatproject.Inotherwords,theobligationneedstobetoprovideareasonastowhytheutilityisnotincompliancewithitsobligationsforthatproject,notjustagenericresponsethatisauto-generated,thatdoesnotaccomplishthegoalofaccountabilityorhelpthecustomerunderstandwhatisactuallygoingonwiththeirproject.PG&Eagreeswithnotifyingcustomerswhenatimelineisnotmetandcurrentlyutilizesanautomatedsystemtodoso.Automaticdelaynoticesprovideanewexpecteddateandpointofcontact.WhenthedelaynoticeisissuedbyaPG&Erepresentative,areasonisenteredandtracked.However,PG&Edoesnotagreewithsite-specificreasoningforeachdelaynoticebecausenotalldelaynotificationsareforconstructiontasks,thereforenotallhaveasite-specificreasoning.Forconstruction-relatedtasks,PG&Edoesitsbesttoprovidesite-specificreasoning,buttheworkflowmanagementdatabasesareseparatebetweenElectricGridInterconnectionandServicePlanningandEGIdoesn’thavealineofsightintothestepbystepconstructionprocess.ForSCE,withtheimplementationoftheGridInterconnectionProcessTool(GIPT),itisexpectedthatprojecttimelineswillbeavailableontheportaltocustomers.Therefore,customer"notice"wouldbeavailabletotheinterconnectioncustomerthroughtheirprojectreviewontheGIPTinterconnectionportal.SCEmakesthispointsoastoclarifySCE'sunderstandingofwhat"notice"

wouldinvolve.Inaddition,itisalsoexpectedthatanautomatednotificationwillbeissuedthroughtheGIPTsystemrequestingtheinterconnectioncustomertochecktheirprojectstatus.AsGIPTiscurrentlygoingthroughtheimplementationprocess,theadditionalnoticesdiscussedunderthisproposalaresubjecttothefunctionalitybecomeavailable.Itwasalsodiscussed,butnoconsensuswasachieved,onwhetherCPUCEnergyDivisionshouldbesimilarlynotified.Partiessaidthisnotificationcouldbeaddressedwhendetailsoftheactualreportingaredeveloped.SDG&EdoesnotsupportnotifyingtheCPUCEnergyDivisioneverytimeatimelinedateisnotmet,asthisprocesswouldbeoverlyburdensome.PG&EisopentonotifyingEnergyDivisionandsuggeststhatifthisispursued,PG&EcanprovideareporttoEnergyDivisionofallnotificationsissuedintheworkmanagementsystem.IfEnergyDivisionwouldratherbenotifiedeachtimeatimelineisnotmet,PG&EcanaddaCPUCemailasabcc.SCEproposestoplacereportingontheirinterconnectionsitethatpartiescanreviewattheirowndirection,asdiscussedabove.Substationupgradesneedtobetreateddifferentlybecausetheyoftenhavemuchlongertimelineswithmoreuncertainty.Ratherthansettingspecifictargetcompletiondatesandputtingthoseininterconnectionagreements,CALSSAproposesthatutilitiesgivequarterlyupdatestoallcustomersthatarewaitingfortheupgradebeforetheycanbeinterconnected.Thisproposalwasnotdiscussedfurther,assubstationupgradesweredeemedout-of-scopeduringthefirstdiscussionforIssue12.Proposal12-f.Non-consensusSetanoverallgoalthat95-100%ofprojectsmeetalltimelineswithintheframeworkfortrackingandreportingwithintwoyearsafterthestartoftracking.

NotebyWorkingGroupFacilitatorGridworks:PG&EchangeditspositiononProposal12-ffromsupporttoopposeattheendoftheWorkingGroupprocess,whennodiscussiontimeremainedforpartiestorespond,andthediscussionbelowforProposal12-fwasnotchanged.

DuringtheWorkingGroupmeetingsandcalls,therewasconsiderablediscussionofgoals.BothPG&EandSCEsaidtheywouldworktocommencetrackingtimelinesinJuly2019,andsotheoverallgoalwouldbeforJuly2021.PG&EandSCEwillreportontheirprogressquarterlyandagreetoseektocomeintofullcomplianceonalltimelinesbyJuly2021.Utilitypositions:

SCEagreedthatgoalswereusefulforprocessimprovementsandcorrectiveactions.Goalsstemfromabenchmarkofthemutuallyacceptedeffectivenessofaprocessorfunction.Onceagoalisestablished,thegoalservestoinformprocessownersastoprocessefficacy.Thedatacollectedforgoaltrackingisusedforfirst,processorresourceimprovement,and

second,foradministrationofcorrectiveactionorcommendationdependingonresultsofprocessimprovementandoptimization.PG&Edidnotagreethatgoalsshouldbelinkedtoanyfutureenforcementmeasures,butviewstrackingtimelinestowardgoalsasanopportunitythatshouldbeusedtoidentifyprocessgapsandpartiesshouldcollaboratetoaddresstheprocessgaps.PG&Ewantstoleveragecollectivestakeholderexpertisetoanalyzecollecteddata,collaborateonidentifyingandclosinganygapsandkeepimplementationofimprovementsprioritizedtoareaswiththemostneedasdeterminedbythedata.SDG&EwasnotinfavorofbeginningreportinginJuly2019,butwouldbeginreportingasordered.SDG&Eisnotinconsensuswithsettinganoverallgoal.WithSDG&ERule21applicationsaccountingforlessthanapproximately0.1%ofallapplicants,settingrequirementsofestablishingagoalorshorteningdurationofdelaystoreachcompliancethresholdstoincrementallyimproveprogressisnotbeneficialtoSDG&Eratepayers.

Proposal12-g.Non-consensusIfinitialtrackingrevealsthatautilityisnotmeetingthegoalestablishedbyProposal12-f,theutilityshall:(1)setadditionalintermediategoalswithinthefirsttwoyearsafterthestartoftracking,and(2)establishaprocesstoachievecompliancewithintwoyearsofthestartoftracking.

Supportedby: CALSSA,CleanCoalition,GPI,IREC,JKBEnergy,TeslaOpposedby: PG&E,SCE,SDG&E

Inadditiontoproposinganoverallgoalof95-100%ofprojectsmeetingtheirtimelinesbytheendofatwo-yearperiod,whichwasadoptedasProposal12-f,IRECalsoproposesastep-wiseprocessforutilitiestosetintermediategoalstoincrementallyimproveprogressuntilcomplianceisachieved.IRECalsoproposesagoaltoshortenthedurationofindividualprojectdelays.IREC’sproposalisthatincrementalprogressgoalsbeestablishedasfollows.Iflessthan95%ofallprojectsmeettheRule21timeframesforallsteps,theutilityshallsetincrementalprogressgoalsbasedonthebaselineestablishedinJanuary2020.Thegoalsshallestablishincrementalimprovementgoalstobeidentifiedforeachquarter.Thesegoalsshallbepublishedontheutility’swebsite.ThepurposeoftheseincrementalgoalsistogettheutilitiesonthepathtowardsaperiodwhereallprojectsarebeingcompletedwithintheRule21timeline,byensuringthateachstepoftheprocessistimelyachieved.Inaddition,whilethegoalsidentifiedaboveaimtoachieve95-100%compliancewitheachstepofthetimelinesforeveryproject,itisalsoimportanttoensurethatintheinterimnoindividualprojectshastowaitanunreasonablylongperiodoftimeforresults/utilityresponseduringanystep.Thepurposeofthisgoalisthustoensurethatwhentherearedelays,someprojectsarenotheldup

forunreasonableperiodsoftime.Thus,foreachprojectthatexceedstheallottedtimelinebymorethan5daysforincrements15daysorless,orbymorethan10daysforincrementsgreaterthan15days,theutilityshoulddocumentandreporttheuniquereasonsforthedelayinthereportanddiscussspecificstepstakentoaddressorresolvethedelay.Duringeachquarterlyreport,theutilityshallidentifyprogresstowardthesegoals.Iftherearestilloutstandingtimelineswheretheutilityisnotachieving95-100%compliance,theutilityshoulddocumentwhatstepsitistakingtomakeprogresstowardsthegoalsabove.Therewasdiscussionof“improvementpotential”beingdevelopedbytheutilitiesoncebaselinesareestablished,withmorespecificgoalstobedevelopedafterbaselinesareestablished,forexamplestartinginJanuary2020.Utilitypositions:

PG&EandSDG&Edidnotagreetosetintermediategoals,andPG&E,SCE,andSDG&Edidnotagreetoaworkshopaftertwoyearstoconsiderfurtherfinancialaccountabilitymechanismsiftheoverallgoalshavenotbeenmet.

SCEwillprovideperiodicupdatesonitsprogressatInterconnectionDiscussionForums,asitcommencestimelinetrackingandquarterlyreporting.UpdatesmayincludestepsSCEmaybetakingtoachieve95%timelineperformance,shoulddatashowthatitfallsoutsidetheperformancebandof95–100%.Trackingeffortsin2019and2020willservetoidentifybaselinedata.PG&Ewantstoleveragecollectivestakeholderexpertisetoanalyzecollecteddataandcollaborateonidentifyingandclosinganygaps,asstatedinProposal12-f.Thedatacanbeusedtoidentifyareasofopportunity,PG&Edoesnotbelievearbitrarilysettingadeadlineforfixesmakessensewithoutknowingthescopeofthesolution.SDG&ERule21interconnectionsaccountforlessthanapproximately0.1%ofallapplications,sosettingrequirementsofestablishingintermediategoalsorshorteningdurationofdelaystoreachcompliancethresholdstoincrementallyimproveprogressisnotbeneficialtoSDG&Eratepayers.

Proposal12-h.Non-consensusTheoverallgoalfortimelinesfromProposal12-fwouldapplyto:(i)allnon-NEMprojects;and(ii)allNEMprojects>30kW.

Currently,thequarterlyreportstheutilitiesprovidetotheCommissiondonotincludenon-NEMprojects.ThereportingforNEMprojectsdoesnotincludeanydetailonthestepsintheinterconnectionprocess.Thus,IRECproposedthatthereportinghereincoverallprojectsexceptNEMprojects<30kW(StandardNEM).ThereisgeneralagreementthatstandardNEMprojectsgenerallyareinterconnectedquicklyandthevolumeofprojectswouldmakereportingcomplicated.TheapplicationoftheoverallgoalfortimelinestospecifictypesofprojectswasdiscussedandagreedbyallpartiesexceptPG&E.PG&Edidnotagreetoapplyingthisgoalmethodologytoanysubsetofprojectsbasedonsize.AsstatedinProposal12-f,PG&Ewantstokeepimplementationofimprovementsprioritizedtoareaswiththemostneedasdeterminedbythedata.Currently,standardNEMandNEM-pairedstoragehavebeenhighestvolumeprograms,soPG&E’sfocushasbeenonimprovingthose.InitialreportingbySCE,tostartinAugust2019,willincludeRule21non-exportingprojects,withtheremainingRule21interconnectionrequesttypesincludedforreportingandtrackingasSCE’snewdatabaseisbuilttosupportthosenewtypesofinterconnectionrequests.Proponentpositions:

Teslabelievesthatforthegoalstobemeaningful,itwillbeimportanttoassessadherencetothesetimelinesforprojectsofdifferentsizes.Missedtimelinesisprimarilyanissueimpactinglargerprojectssotoassesssuccessbasedonallprojectswillresultinsmallprojects,wherethishasnothistoricallybeenasmuchofanissue,skewingtheresultsandgivingthefalseimpressionthatthereisnotaconcern.Giventhis,importanttoassessadherencefordifferentprojectcohorts,basedonNEMvs.nonNEMandsmall(<30kW)andlarge(>30kW).Additionalgranularitymaybeappropriate.

Utilitypositions:

SCE:TherearecurrentreportingobligationsforRule21submittedonaquarterlybasisalongwithforNEMprojectssentinaccordancewiththeDistributedGenerationRulemaking.ThereportingforNEMprojectsdoesnotincludeanydetailonthestepsintheinterconnectionprocessasitfocusesonthetotalprojectcycle.Thus,IRECproposedthatthereportinghereincoverallprojectsexceptNEMprojects<30kW(akaStandardNEM).ThereisgeneralagreementthatstandardNEMprojectsgenerallyareinterconnectedquicklyandthevolumeofprojectswouldmakereportingcomplicated.

Proposal12-i.Non-consensusAftertwoyearsoftrackingandreportinghavebeencompleted,EnergyDivisionwillreconvenethepartiesforadiscussionofwhetherthegoalshavebeenachievedand,ifnot,whatfurthersteps(ifany,basedonthesituationpresented),wouldbeappropriatetotake.TheCommissionshouldclearlyindicatethatfinancialpenaltieswillbeonthetablefordiscussionifthegoalsarenotmet.

Theutilitiesdidnotagreethatdiscussionoffinancialpenaltieswouldbeappropriateaftertwoyearsoftracking,butdidagreetoreconvenefordiscussionofappropriatenextsteps.IRECandotherstakeholdersstronglybelievethatifthereisafailuretolargelycomeintocomplianceaftertheproposedgoalsettingprocess,thatitisreasonable,andindeednecessary,toconsiderwhetherthereneedstobemorerigorousaccountabilitymeasuresadopted,includingthosethatmightimposefinancialpenaltiesontheutilityshareholdersforfailuretocomplywiththetariff.Proponentpositions:

IRECbelievesthatafinancialpenaltymechanismmaybeappropriate,butishopefulthatwithconcretegoals,trackingandreportingthatitwillnotbenecessary.IRECbelievesthegoalssetareconservative,reasonable,andachievable.Thus,IRECbelievesitisreasonabletoconsiderfinancialpenaltiesifthevoluntarygoalsettingprocessfails

TURNposition:

TURNnotesthatifafinancialpenaltyisbeingconsideredorlaterimposed,itneedstobemadeclearthatthepenaltywillbepaidbyshareholderdollars,notratepayerdollars.

Utilitypositions:

PG&E,SCE,andSDG&Edisagreethatapenaltyshouldbepaidbyeithershareholderorratepayersdollars.Consistentwiththeregulatorycompactandcostofserviceregulatoryratemakingprincipals,theIOUsmustbepermittedtorecoverprudent,reasonablecostsassociatedwithgeneratingfacilityinterconnection.SDG&EisnotinconsensuswiththisproposalasSDG&Edoesnotwanttoprejudgetheneedforanotherworkshop.

Proposal12-j.Non-consensusUtilitiesshouldprovidequarterlyupdatesonsubstationupgradestoapplicantswhoseprojectsaredependentonagivensubstationupgrade.

Partiesagreedthatsubstationupgrades,althoughsometimesthesourceofcustomer/applicantcomplaintsaboutlongdelaysanduncertainties,cannotbesubjecttobenchmarktimelinesduetotheircomplexnature.

Proponentpositions:

CALSSA:Substationupgradesarethesourceofstrongcustomerdissatisfactionaboutlongdelaysandtimelinesthatchangeovertime.Whenacustomercannotinterconnectuntilsubstationworkiscompletedtheyhaveadifficulttimebalancingthetimingoftakingoutaloan,doingconstruction,usingthefederaltaxcredit,andgettinginterconnectionapproval.Itisgreatlydisruptivewhenautilityindicatesthattheworkwilltakeninemonthsanditendsuptakingtwoyears.However,substationupgradescannotbesubjecttostandardbenchmarktimelinesbecausetheytendtobecomplexandincludemultipleuncertainties.CALSSArecommendsthatutilitiesarenotheldtoastandardforsubstationupgradetimelinesbutthattheysendquarterlycommunicationstocustomersthatarewaitingforsubstationworktobecompletedbeforetheycangetpermissiontooperatetheirsystems.

Utilitypositions:

PG&Ewillentertainprovidingquarterlyupdatesonsubstationupgradesasabusinesspractice,butdoesnotsupportaddingthisrequirementtoRule21.Inaddition,PG&ErecentlyaddedadedicatedsubstationengineertooverseesubstationupgradesrelatedtogenerationinterconnectionprojectsandwillcontinuetoimprovetheRule21processviacollaborationwithstakeholdersanddevelopers.

SCE:Projectmeetingsarearegularpartofthepre-constructionandconstructionactivityforprojectswithlargeupgrades,includingsubstationupgrades.Thefirstkickoffmeetingoftheseregularprojectmeetingsoccurssoonafterexecutionoftheinterconnectionagreement,iftheworkistocommencerightaway,oratamutuallyagreedtimepriortothecommencementof“constructionactivities”.Thecadenceofsubsequentmeetingsisagreedtobyalltheparties,andifanICwantsmorefrequentmeetings,orameetingaboutacertaintopic,thosearereasonablyaccommodated.Duringthesemeetings;schedule,scope,andcostarealwaysattheforefrontofdiscussion.Thus,therealreadyexistsampleopportunityforSCEtohaveregularstatusupdateswithinterconnectioncustomersaboutsubstationupgradesandadditionalprovisionsinRule21arenotnecessary.

SDG&EwillcontinuetoprovideupdatestoitsRule21interconnectionapplicantsviatheprojectschedulesitdevelopsandupdatesthroughoutthedesignandconstructionoftheproject.SDG&EdoesnotsupportaddingthisrequirementaspartoftheRule21tariff,butinsteadwouldcontinuetocreatetwo-waytransparencybasedondesignandconstructionmilestonesasagreedtoandtrackedbyboththedeveloperandSDG&E.

Issue15ShouldtheCommissionrequireitemizedbillingfordistributionupgradestoenablecustomercomparisonbetweenestimatedandbilledcostsandverificationoftheaccuracyofbilledcosts?PROPOSALSUMMARIESProposal15-a.ConsensusUtilitiesshoulddowhatisimmediatelypossibletoprovidecostitemizationbasedonexistingcapabilities.Asutilitiesevolvetheirprocessesinthefuture,eachutilityshouldstrivetoimprovetheiritemizedbillingprocessesforfurtherapplicantandcustomerclarity.

Proposal15-b.ConsensusTheCommissionshouldconsider“billonestimate”costestimatesinthefuture.ThiswouldneedtobescopedintoafutureRule21WorkingGrouporOIR.BACKGROUNDProjectdeveloperstypicallyprovidecostestimatestocustomersbasedontheUnitCostGuide.(NotethattheUnitCostGuideisbasedongeneralcostsbutnotmeanttoreplaceaspecificsystemstudy.Inaccordancewith16-06-052,theUnitCostGuideisforinformationalpurposesonlyanddoesnotgovernactualcosts.)Ifdevelopersknewtheactualcostsincurredforsomeseparatecomponentsoftotalcost,theycouldimprovefutureestimationsfortheircustomers.Partiesemphasizedtheneedforcostestimatesaroundmajorcomponentslikelinerunsandtransformers.UtilitieshighlightedthattherearealreadytoolssuchastheUnitCostGuidementionedabove,thatalsocanguidedevelopercostestimates.However,thereisnoconsistencyacrosstheutilitiesregardingthelevelofdetailprovidedinthefinalaccountinginvoice.Developershaveexpressedconcernregardingthelevelofdetailprovidedinutilityestimatestobetterreconcilecostsfromtheoriginalstudyestimate.Utilitiesinmanycasesprovideinitialcostestimatesthatareitemizedbycomponentbutwhentheysendtheinvoicethereisonlyonecostnumberfortheentireupgradeproject.Thislumpsumbillingdoesnotallowfordeveloperstoimprovefuturecostestimations,itagitatescustomerswhogetlargebillswithoutanysubstantialinformation,leavingthemwonderingwhatthey’veactuallypaidfor.Italsoreducesthefuturepotentialforcostcomparisonswiththird-partycontractorsdoingdistributionupgrades.Partiesdiscussedwhatcouldbeanappropriatelevelofdetailforcostitemization.Severalagreedthatthelevelofdetailrequiredistypicallyjustafewsimplelineitems,atroughlythesamehigh-levelofdetailasgivenintheUnitCostGuide,mostlylineitemsformeters,lineruns,transformer

andSCADA.Therefore,issueproponentsproposedthatthecostcategoriescouldbemodeledfromtheUnitCostGuide.OnequestionfacingtheWorkingGroupwashowonerousisitforutilitiestoprovidetheappropriatelevelofdetailof3-5line-itemsforadistributionupgradeproject,giventheirexistinginformationandmanagementsystems.Iftheamountthecustomerpaysisbasedonatrue-upofactualcosts,itisdifficultforutilitiestoestimatehowmuchofthelaborcostwasfordifferentcomponentsofthework.UtilitieswereopentodiscussingsolutionswithinthecapabilitiesoftheirexistingITandcost-accountingsystems.Thisdiscussionaboutpossiblesolutionsthenledtoafurtherdiscussionaboutdifferenttypesofbilling,specifically“bill-on-estimate”billingandreconciledbilling.Underthebill-on-estimateconstruct,theinterconnectioncustomer’scostresponsibilityisequaltotheestimatedcostprovidedbytheutilitybeforeconstructionbegins.Theutilitydoesnotreconcileandthecostestimateisitemized.Underreconciledbilling,thecustomerpaysadepositatthetimeofthefinalestimateandmaymakefurtherpaymentsatothermilestones.Theutilityreconcilesbasedonactualcostsandthefinalbillisnotitemized.Itisdifficultforutilitiestodoitemizedbillswhentheydoreconciledbilling,partlybecausetheyhavetoestimatehowmuchofthetotallaborcostwenttoeachitem.PG&Ecurrentlydoes“bill-on-estimate”billingforprojectsbelow1MWandreconciledbillingforprojectsabove1MW.SCEdoesreconciledbillingforallprojects.Givenexistingcapabilities,ofallthreeutilities,onlySDG&Esaidtheywouldbeabletoprovidethetypeofcostitemizationbeingdiscussedwithouttheneedtochargecustomersadditionalcosts.DetailsaregivenbelowintheDiscussion.

DISCUSSIONProposal15-a.ConsensusUtilitiesshoulddowhatisimmediatelypossibletoprovidecostitemizationbasedonexistingcapabilities.Asutilitiesevolvetheirprocessesinthefuture,eachutilityshouldstrivetoimprovetheiritemizedbillingprocessesforfurtherapplicantandcustomerclarity.

DuringthecourseoffiveWorkingGroupin-personmeetings,utilitiesinvestigatedtheoptionsforprovidingitemizedbilling,basedontheircurrentITandcostaccountingsystems.OnlySDG&Eisabletoprovideitemizedcostestimatesfromtheirexistingsystem,withnoadditionalcost,basedontheirexistingmanualprocess.PG&EandSCEfoundthatsolutionswerenotsimple,andrequiredthemtoincuradditionalcosts.Utilitypositions: SCEcurrentlypreparestheestimateandfinalaccountinginvoicebaseduponinteractionof

systemsthatprovidetheunderlyingengineeringstudyandthenseparatelyintoanaccountingsystemthatprovidesatotalamountforeachServiceOrder.Giventheseexistingsystems,SCEwouldhavetoperformamanualprocessatanadditionalcosttoprovideitemizationfortheindefinitefuture.Anautomatedversionofthisoptionisnotfeasiblein

theforeseeablefutureduetosystemconstraintsandthatbillingsystemistiedtoothersupportingsystemsandthesystemtopographywouldhavetoberevisedwhichisnotpracticalatthistime.

PG&E’sestimatingtool,likeSCE,wouldrequireITworkinordertoautomaticallydevelopitemizedestimates.Toincreasethelevelofdetailprovidedinestimateswithinexistingcapabilities,PG&E’scurrentestimatingtoolcanprovideanestimatedcostforeachordernumberassociatedwiththeproject.

SDG&EispreparedtoprovideitemizedbillingthatisconsistentwiththecostcategoriessetforthintheUnitCostGuideatnoextracost.

Proposal15-b.ConsensusTheCommissionshouldconsider“billonestimate”costestimatesinthefuture.ThiswouldneedtobescopedintoafutureRule21WorkingGrouporOIR.AsnotedintheBackgroundsection,partiesdiscussed“bill-on-estimate”billingasanapproachthatwouldeliminatetheneedforanitemizedfinalbill.Underthebill-on-estimateconstruct,theinterconnectioncustomer’scostresponsibilityisequaltotheestimatedcostprovidedbytheutilitybeforeconstructionbegins,withnoreconciliation.Thecostestimatewouldbeitemized.Utilitypositions:

SCEcurrentlyislookingintoa"bill-on-estimate'approach.PG&Eproposeda“bill-on-estimate”processtoreplacefinalreconciliation.Initsresearchofprojectsthatcurrentlyundergoreconciliation(WholesaleDistributionandRule21Export),PG&Edeterminedthatonaportfoliolevel,employingbill-on-estimatewouldresultinbilledcoststhatareconsistentlylowerthanactualcosts.Therefore,toaccountforthedifferenceacrosstheportfolio,therewouldneedtobeafixedcost-multiplierappliedtotheestimate.Thiscostmultiplierwouldapplytoallcustomersforallprojectsthattriggercapitalworkormitigations,regardlessofsize.Afteremployingadata-drivenapproachtoreachthisnumber,PG&Ecanofferbill-on-estimatetoallRule21andNEM2projectswitha20%estimatemultiplier.ThisnumbermayvaryacrosstheIOUsbasedonestimatingmethodologyandtools.PG&Eisconductingseparateresearchtoevaluatewhetheranadditionalpercentagemultiplierwouldbenecessaryforlargerprojectstoprovidecostcertaintyforcomplexupgradeswithhighercostvariabilitywhileensuringthattheportfolioismadewhole.DuringtheWorkingGroupdiscussionofPG&E’s“bill-on-estimate”process,questionsofprojectsizelimitationstowhichPG&E’s“bill-on-estimate”wouldapplywereraisedbyparties.PG&E’s“bill-on-estimate”wouldapplynewlyonlytosystemslargerthan1MW,ascurrentlysystemssmallerthan1MWalreadyundergo“bill-on-estimate.”

Issue16ShouldtheCommissionencouragethirdpartyconstructionofupgradestosupportmoretimelyandcost-effectiveinterconnectionand,ifso,how?PROPOSALSUMMARIESProposal16-a.ConsensusIncorporatebyreferencetariffRule15eligibilityrulesintoRule21,specificallyregardingRule15,SectionG.2(R15.G.2)minimumcontractorqualifications,”Rule15,Section15.G.3(R15.G.3)“Othercontractorqualifications,”andRule15,SectionI.1(R15.I.1)“Facilityrelocationorrearrangement.”Proposal16-b.ConsensusHaveRule21refertoapplicableRule15“competitivebidding”language.Proposal16-c.ConsensusRemovethe“discretion”languageinRule21thatstates“SubjecttotheapprovalofDistributionProvider,aProducermay,atitsoption…”providedthatthelanguageischangedfrom“subjecttoapproval”to“subjectto/consistentwithRule15”contractorselectionrulescitedinProposal16-a.Proposal16-d.Non-consensusAllowthird-partiestoworkonexistingde-energizedsystemsunderspecifiedscenarios,suchasondedicatedlinesandinotherspecifiedsituations. Supportedby: CleanCoalition,GPI Opposedby: PG&E,SCE,SDG&EBACKGROUNDIssueproponentspointedtothepotentialbenefitsofallowingandencouragingthird-partydistributionupgrades,includingamelioratingsomeoftheongoingproblemswithcostsandtimelinesassociatedwithvarioustypesofupgrades,creatingamorecompetitiveenvironmentthatcouldovertimeimprovecostsandtimelines,andallowingtheincrementalcostsofacceleratedschedulestobebornebyprojectdevelopersbenefitingfromtheacceleratedschedules.Generallyspeaking,thepresumptionbyissueproponentsisthatthird-partyupgradeswillprovidedeveloperswithmorecontroloverthetiming,costsandchoiceofcontractorsperformingtheupgrades,aswellascreateamorecompetitiveenvironment.Theprimaryconcernsrelatedtothird-partyupgradesaresafetyandreliabilityoftheelectricalgridandcustomersconnectedtotheelectricgrid.Inparticular,Rule21currentlyalreadyallowsforthird-partyconstruction,subjecttoapprovalbytheDistributionProvider,oninterconnectionfacilities.Inaddition,astheongoingoperatingmaintenanceandoperatingcostsarebasedupon

facilityconstructioncost,itshouldnotbeassumedthatuseofthird-partycontractorsalwayswilltranslatetolowercosts,consideringbothinitialandongoingcosts.Itiscriticalthatthetypeoffacilityforwhichthird-partyconstructionisalloweddoesnotposepotentialsafetyorliabilityconcernstootherenergizedcustomersorfacilities.Toenablethird-partyupgrades,partiesdiscussedandconsideredeligibilityrulesandcompetitivebiddinglanguage.InpreparingProposals16-aand16-b,therewasdiscussionaboutqualificationofcontractors,howcontractorscouldbeselected,whetherthereneededtobealistofapprovedcontractors,whowouldmaintainthatlist,andtheroleoftheCPUC.WorkingGroupparticipantsemphasizeditwasacceptabletolimitthird-partyinvolvementtothosecontractorsalreadybeingusedbytheutilities,orbythosethird-partycontractorsthatmeettherequirementssetforthinR15.G.2andR15.G.3.Ultimately,referencetoRule15provisionsintheseproposalsresolvedthosequestions.Partiesemphasizedthatthird-partyupgradeswillstillbetransferredtoandmaintainedbytheutility,asiscurrentlythepractice.Andthatsuchupgradesmustensureutilitydesignspecificationsandsafetystandardsaremet,asdeterminedbytheutility.Utilitiessaidthereisadifferenceinparticularwhenexistingenergizedfacilitiesareinvolved,forbothliabilityandsafetyconcerns.IssueproponentsGPIandCleanCoalitionposedquestionsabouthowthird-partiescanbeselectedandqualified,whatshouldbetheroleoftheCPUC,andwhatlanguagechangesareproposedforRule21.Theseproponentsalsoprovidedanissuebriefandproposalthatincludedexampleswherethird-partydistributionupgradeshavebeenperformed,includingforSMUD,ImperialIrrigationDistrict,andPG&E.However,subsequenttothatissuebrief,SCErespondedthatitcontactedSMUDinMarch2019andSMUDrepresentedthatallowingthird-partyworkonenergizedfacilitiesisnotconsistentwithitspractices.NotebyWorkingGroupFacilitatorGridworks:AfterthefinaldiscussionofIssue16intheWorkingGroup,proponentGPIprovidedarevisedproposalthatincludedfurtherideasnotdiscussedduringtheWorkingGroupmeetingsandnotvettedbyanyutility--seeAnnexA.

DISCUSSIONProposal16-a.ConsensusIncorporatebyreferencetariffRule15eligibilityrulesintoRule21,specificallyregardingR15G.2minimumcontractorqualifications,”R15.G.3“Othercontractorqualifications,”andR15.I.1“Facilityrelocationorrearrangement.”4Eligibilityrulesareneededtoensurethird-partiesaresufficientlyqualifiedforensuringsafetyandreliability.PartiesagreedthattherewasnoneedtoadoptadditionallanguageinRule21giventhatthislanguagealreadyexistsinRule15.Proposal16-b.ConsensusHaveRule21refertoapplicableRule15“competitivebidding”language.Onlyqualifiedcontractorswouldbeabletoparticipateinthebidding,consistentwithexistingbiddingandqualificationpractices.PartiesagreedthatherewasnoneedtoadoptadditionallanguageinRule21giventhatthislanguagealreadyexistsinRule15.Rule21wouldrefertothefollowingspecificlanguageinRule15:

R15.G.1.a.–UponcompletionofApplicant’sinstallationandacceptanceby[utility],ownershipofallsuchfacilitieswilltransferto[utility].R15.G.1.e.(parta)–Applicantshallpayto[utility]theestimatedcostof[utility’s]inspection,whichshallbeafixedamountnotsubjecttoreconciliation.R15.G.1.f.–Onlydulyauthorizedemployeesof[utility]areallowedtoconnectto,disconnectfrom,orperformanyworkupon[utility’s]facilities.

Proposal16-c.ConsensusRemovethe“discretion”languageinRule21thatstates“SubjecttotheapprovalofDistributionProvider,aProducermay,atitsoption…”providedthatthelanguageischangedfrom“subjecttoapproval”to“subjectto/consistentwithRule15”contractorselectionrulescitedinProposal16-a.

4AlongwithincorporatingR15.G.2,R15.G.3,andR15.I.1tariffprovisions,theexistingwarrantyrequirementsthatcurrentlysupporttheseprovisionsshouldbeincludedasfoundinParagraph12ofSCE’sForm14-188,TermsandConditionsAgreementforInstallationofDistributionLineExtensionbyApplicant,thatstates:“Applicantwarrantsthatallworkand/orequipmentfurnishedorinstalledbyApplicantoritscontractorshallbefreeofdefectsinworkmanshipandmaterial.ThewarrantyperiodshallbeginfromthedateoffinalacceptancebySCEandextendforoneyear.Shouldtheworkdevelopdefectsduringthatperiod,SCE,atitselectionshalleither(a)repairorreplacethedefectiveworkand/orequipmentor(b)demandthatApplicantrepairorreplacethedefectiveworkand/orequipment,and,ineitherevent,Applicantshallbeliableforallcostsassociatedwithsuchrepairand/orreplacement.Applicant,upondemandbySCE,shallpromptlycorrecttoSCE’ssatisfactionandthatofanygovernmentalagencyhavingjurisdiction,anybreachofanywarranty.”

ProponentsGPIandCleanCoalitionbelievethatremovingthe“discretion”languagefromRule21isaneededreforminachievingthebenefitsnotedintheBackgroundsection.Somepartiesquestionedtheneedforremovingthe“discretion”language,butintheendWorkingGroupparticipantsagreedthiswasacceptableaslongas“subjectto/consistentwithRule15”isadded.Proposal16-d.Non-consensusAllowthird-partiestoworkonexistingde-energizedsystemsunderspecifiedscenarios,suchasondedicatedlinesandinotherspecifiedsituations. Supportedby: CleanCoalition,GPI Opposedby: PG&E,SCE,SDG&ETherewasmuchdiscussionaboutwhetherandunderwhatcircumstancesthird-partiescouldworkonexistingfacilities.Theutilitieswereaskedtoproducescenarioswherethird-partiescouldworkonexistingde-energizedfacilities.Concernsraisedbytheutilitiesincludedsafety,liability,supervision,utilityresources,managingcustomerimpactsofplannedoutages,coordinationwithotherutilityconstructionwork,andoutageplanning.Stakeholderswellunderstoodtheseconcerns,butpressedforpossiblescenarios.OnescenariowasinitiallyputforwardbyPG&Ethatcoveredthecasewherealinewas“dedicated”toonlyonecustomer,andcouldbede-energizedforthird-partywork.ThisideawasincorporatedbyproponentsGPIandCleanCoalitionintoarevisedproposalfortheWorkingGroup.Butlater,theutilitiessaidthatinpracticesuchdistinctionsbetween“dedicated”and“undedicated”linesarenotrelevantindeterminingscenariosopentothird-partyconstruction.Scenariosofupgradestoexistingfacilitiesbythird-partiesshouldremainconsistentwithRule15.I.1,“wherenewfacilitiescanbeconstructedinaseparatelocation,beforeabandonmentorremovalofanyexistingfacilities…”Also,thereremainedgreatconcernaboutsafetyrisksandunderminingofPublicUtilitiesCode399.2ontheutilityobligationtodesign,engineerandmaintaintheutility'sdistributionsystem.5Intheend,theWorkingGroupwasleftwithnoconsensusonanyscenariosinwhichthirdpartiescouldworkonexistingde-energizedfacilities.Duringthefinaldiscussionofthisissue,stakeholdersraisedanotheralternative—thatprojectdeveloperscouldpayfortheincrementalcostsoftheutilityitselfhiringthird-partiestohaveworkdonefaster,consistentwithcurrentutilitypracticesforhiringsub-contractors.Utilitiesrepliedthattheywantedtoretaintheirdecision-makingpractices,thattheirconstructionpracticesofteninvolvedmultipleprojectsandfacilitiescoordinatedtogether,andthatthehiringofathird-party,shouldremaintheirsoledecision.Utilitiescitedthattheycurrentlyhirethird-partiestoaugment

5PublicUtilitiesCode399.2statesthattheutilitiesmaintaincontroloftheirdistributionfacilitiesandarechargedwithdoingsoinasafe,reliable,efficientandcost-effectivemanner.Itfurtherstatesthateachelectricalcorporationshallcontinuetoberesponsibleforoperatingitsownelectricdistributiongrid,including,butnotlimitedto,owning,controlling,operating,managing,maintaining,planning,engineering,designing,andconstructingitsownelectricdistributiongrid.

resourcesandexpediteconstructionschedules,thereforemakingthecallforadditionalthird-partiesmoot.SDG&EinquiredastowhethertherewereparticularstepsintheconstructionprocessthatposedthemostconcernforGPIandCleanCoalition.Utilitiessharedthattheconstructionprocessinvolvestheutilitiesaswellaspermittingprocesseswithotheroutsideagencies,etc.SDG&Eexpressedconcernthathavingthecustomerhireathirdpartyalonetoassistwithconstructiontoexpeditethescheduleisnothelpfulbecausetheavailabilityofconstructionresourcesoftentimesisnotthesoleproblem.Partiesremaininterestedincontinuingtoexploreincrementalcoststoapplicantsforputtingadditionalconstructionresources(intheformofthirdparties)onaprojectifitcandecreaseconstructiontime,similartoutilitiesbringinginadditionalcontractorsthemselves.Proponentposition:

GPIandCleanCoalitionsaiditappearsthatallthreeutilitieshave“blanket"policies,thatinexercisingtheirdiscretion,theygenerallydisallowthird-partyelectricalupgrades.WhenGPImadethisstatementduringWorkingGroupdiscussions,itwasnotcontradictedbyutilities.

Utilitypositions:PG&E,SCE,andSDG&ErepresentedsupportforusingcurrentfacilitypracticesasallowedunderRules15and16forconstructionofnew(interconnection)non-energizedfacilities.Therewerenoscenariosagreedinwhichathird-partycouldworkonexistingde-energizedfacilities.

AnnexA:Issue16,ProposalRefinementbyProponentsNotebyWorkingGroupFacilitatorGridworks:ThisAnnexcontainsarevisedproposalbyproponentsGPIandCleanCoalition,refinedbeyondtheiroriginalproposaldiscussedbytheWorkingGroup.ThisrevisedproposalhasnotbeendiscussedwithintheWorkingGroupnorvettedbyanyutility.GridworksasWorkingGroupfacilitatorprecludedanyfurtherdiscussionorcommentsonthisrevisedproposal,intheinterestsofhonoringtheagreedWorkingGroupschedule.ThisrevisedproposalcameonFebruary20,2019,afterthescheduledfinaldiscussionofIssue16intheWorkingGrouponFebruary13,2019.GPIandCleanCoalitionsaidthatintheirdiscussionswithutilitiespriortoFebruary13,2019,aswellasduringtheFebruary13,2019WorkingGroupmeeting,theirproposaldevelopmenthadtoundergosignificantandlast-minutechangesandre-thinking,basedonutilitypositions,andthattheywerenotabletoadequatelyrespondwithinthetimeframescheduledforcompletionofIssue16.Thus,theyprovidedarevisedproposalafterdiscussionwasclosed.GPIandCleanCoalitionproposeRule21tariffchangesasfollows:

1) ExtendRule15tothefollowingcircumstances,withIOUoversightandallupgradescompletedaccordingtoIOUspecifications:

a. De-energizedexistingfacilitiesonsingle-customerdedicateddistributionlinesb. Withwrittenconsentfortemporaryde-energizingbyallothercustomersonthe

samedistributionlineastheapplicant,withsuchwrittenconsenttobeobtainedbytheapplicant

2) IOUsmustfullyconsidertheuseofthirdpartiesinnegotiatingGIAmilestones(forIOU-requireddistributionlineupgrades)toshortentimelinesandreducecostsforthesemilestonerequirements

Issue20HowshouldtheCommissioncoordinateCommission-jurisdictionalandFederalEnergyRegulatoryCommission-jurisdictionalinterconnectionrulesforbehind-the-meterdistributedenergyresources,includingmodificationofqueuingrulesforRule21andWholesaleDistributionAccessTariff(WDAT)projectsseekingtointerconnectatthesamelocation,clarificationoftherulesforprojectswantingtotransferbetweentheRule21andWDATqueues,andstreamliningofthetransferprocess?PROPOSALSUMMARIESProposal20-a.ConsensusClarifythroughtheuseofFAQwebpagesthetransferprocessesandpermission-to-operaterulesfor:(i)howprojectsintheRule21interconnectionqueuecantransfertotheWDATinterconnectionqueue;and(ii)howeligibleresourcesunderexistingRule21interconnectionagreementscanbegintheNewResourceImplementation(NRI)processattheCAISO.Proposal20-b.ConsensusNomodificationisnecessarytothequeuingrulesforRule21andWDATprojectsseekingtointerconnectatthesamelocation.Proposal20-c.ConsensusProvidesomereferencelanguageor“softlink”withintheRule21tarifftotheFAQwebpagesandreferenceWDATtariffdocumentationfromProposal20-a.BACKGROUNDCustomer-sitedanddistribution-connectedenergystorageresourcesaregenerallyinterconnectedunderRule21,butproponentsbelievethatotheropportunitiesexistforbehind-the-meterenergystorageresourcestoexportandsellenergytoparticipateinthewholesalemarket.SuchwholesalemarketparticipationmustbeinterconnectedunderWDAT.Thus,foraDERresourcealreadyinterconnectedunderRule21,itmaybecomedesirabletoshifttobeinginterconnectedunderWDAT.Currently,themostreadilyavailablepathwayforDERstoprovidewholesalemarketservicesistoparticipateasaProxyDemandResource(PDR),whichlimitsDERstonon-exportingconfigurationsbecauseofthedemandresponse(DR)constructofload-basedbaselinestomeasureandcompensateperformance.Forgeneratingfacilitiessuchasbehind-the-meter(BTM)non-exportingenergystorage,thePDRmarketparticipationmodelhasallowedittoparticipatereadilyandtheRule21interconnectionprocesseshavebeenstreamlinedtosupporttimelydeploymentandaggregationsintothewholesalemarket.

However,proponentsbelievethattherearesignificantbenefitsinbetterutilizingtheexportcapabilitiesofDERsandinaccessingopportunitiestoprovideadditionalwholesalemarketservicesasaCAISONon-GeneratorResource(NGR),opportunitieswhicharenotavailabletocustomersinterconnectingunderRule21.TobetterenableDERparticipationasNGRs,theWorkingGroupconsideredapproachestoclarifyingandstreamliningtransfersfromRule21toWDAT,andtominimizingre-studies,wherereasonable,iftheoperationalmode(i.e.,exportingornon-exporting)ofaprojectremainsunchanged.SomekeyquestionsandclarificationsthatwereraisedinWorkingGroupdiscussionsincluded:

• UnderwhatconditionsistheWDATinterconnectionprocessrequiredtore-studyresourcesalreadystudiedundertheRule21processes?

• Wherere-studyisrequired,whatarethekeydifferences(e.g.,reliabilitycriteria)thatmustbere-studied?

• Howhavetheinvestor-ownedutilities(IOUs)managedRule21andWDATtransitionsinthepast,ifthereareanysuchexamples?

• IsitpossibletomodifytheCAISOtarifforCPUCResourceAdequacyrequirementssuchthataconsequenceofthatrevisionisthatdeliverabilitycanbeachievedwithoutaWDATinterconnectionrequest?

ForpurposesofafinalproposalforIssue20,proponentCESAfocusedontheusecasewhereRule21-interconnectedBTMenergystorageresourcesandotherDERs(i.e.,vehicle-to-gridsystems)wouldnotbeexpectedtorequireare-studywhenundergoingtransferfromRule21toWDAT.However,CESAnotedthatotherusecasesmightalsobeconsidered,includingaggregationofDERs.DISCUSSIONProposal20-a.ConsensusClarifythroughtheuseofFAQwebpagesthetransferprocessesandpermission-to-operaterulesfor:(i)howprojectsintheRule21interconnectionqueuecantransfertotheWDATinterconnectionqueue;and(ii)howeligibleresourcesunderexistingRule21interconnectionagreementscanbegintheNewResourceImplementation(NRI)processattheCAISO.PG&E,SCE,andSDG&EinformedtheWorkingGroupthattheyeachhaveproceduresalreadyinplacetoenabletransitionsfromRule21toWDATuponrequestfromaninterconnectioncustomer.TheseproceduresaresummarizedinTable1.EachoftheutilitiesinformallycommittedtomakingsuchresourcesavailabletotheirFAQwebpages,andtheremaynotneedtobeanyfurtherCommissionaction.However,toensureconsistencyacrosstheIOUs,theWorkingGrouprecommendsthatutilitiesprovideclarificationsacrosseachoftheareasshowninTable1,andtheirtransferprocessesshouldbemadeconsistentasmuchaspossible.

Table1:ExistingUtilityProcedurestoEnableTransitionsfromRule21toWDAT PG&E SCE SDG&EInitiation TherequestbyaRule21

InterconnectionRequest(IR)totransfertoaWDTGeneratorInterconnectionAgreement(GIA)mustbemadeinwriting.

TherequestbyaRule21IRtotransfertoaWDATGeneratorInterconnectionAgreement(GIA)mustbemadeinwriting.

InterconnectionCustomer(IC)mustsubmitWDATInterconnectionRequest(IR).

StudyProcessTransition

TheIRmustcompletethestudyprocess(e.g.,InitialReview,SupplementalReview)beforethetransferwouldbeallowed.

TheRule21interconnectionrequesthascompleteda“studyprocess”andisreadytoexecuteanInterconnectionAgreement(IA).Thisrequirementisnon-negotiable,asthestudy(orsuccessfulscreening)resultsformthebasisfortheplan-of-servicesystemreviewoutlinedintherequestedWDATGIA.IfaDistributionServiceAgreementwasrequiredundertheRule21IR,theCustomermustalsoapplyforDistributionService,fromtheSCEDistributionSystemtotheCAISO-controlledgrid,bysubmittingaDistributionServiceRequestinaccordancewithWDATrequirements.

PleaserefertoSections6.8.1.1and6.8.1.2underSDG&E’sWDAT.

Eligibility TheRule21IRhasbeenstudiedforexporttothedistributionsystem,whichincludesNEMresources.

TheRule21IRisexportingtothedistributionsystem,whichincludesNEMresources.

Exportingresourceconnectingtothedistributionsystem.

MaterialModifications

InterconnectionCustomer(IC)cannotmakeanymaterialmodificationstothefacility(e.g.,increasingfacilitysize,changingPOI)toqualifyfortransfer.MaterialmodificationsaregovernedbyWDTprovisionsandcanonlybemadeafterWDTGIAissignedandexecuted.

InterconnectionCustomer(IC)cannotmakeanymaterialmodificationstothefacility(e.g.,increasingfacilitysize,changingPOI)toqualifyfortransfer.MaterialmodificationsaregovernedbyWDATprovisionsandcanonlybemadeafterWDATGIAissignedandexecuted.

ICcannotmakeanymaterialmodificationstothefacility(e.g.,increasingfacilitysize,changingPOI)toqualifyfortransfer.MaterialmodificationsaregovernedbyWDATprovisionsandcanonlybemadeafterWDATGIAissignedandexecuted.

Timelines PG&EandICwillagreeinadvancethattheRule21InterconnectionAgreement(IA)willterminateonthedatetheWDTGIAisfully-executed.

Uponconfirmingeligibility,theICwillreceiveadraftWDATIAwithin30CalendarDaysandwilllaunchanegotiationperiodwithin120calendardaysfromthe

dateofeligibilitynotification,pertheWDATGIP.

‘U-Turn’Transfers

-- ICmayrequestasingle‘U-turn’transfer–atransferfromonetariffGIAtoanothertariffGIAandthenbacktotheinitialtariffGIA

BillingCredits ICmustforgobillingcreditsunderRES-BCTandNEMuponconversiontoWDTGIA.

ICmustforgobillingcreditsunderRES-BCTandNEMuponconversiontoWDATGIA.

CPUCjurisdictionaltariffsdonotapplytoserviceprovidedunderaWDATInterconnectionAgreement(IA).

CostEnvelopeOption(CEO)

IRswaiveanyrequestedCEOtreatmentofitsstudyresultssincethereisnoWDT-equivalentoption.

IRswaiveanyrequestedCEOtreatmentofitsstudyresultssincethereisnoWDAT-equivalentoption.

OtherWDAT-RelevantProcesses

ICmustapplyseparatelytoCAISOforFullCapacityDeliverabilityStatus(FCDS)andmustcomplywithstudyandfeerequirements.

ICmustseparatelyapplyfortheCAISONewResourceImplementation(NRI)process,aswellasQFstatusunderPURPA.SCEisnotresponsibleforassistingtheICinthoseprocesses.

ICmustapplyseparatelytoCAISOforFullCapacityDeliverabilityStatus(FCDS)andmustcomplywithstudyandfeerequirements.

CESAandGreenPowerInstitute(GPI),amongotherstakeholders,believethatpartiesneedingtotransferfromRule21totheWDATinterconnectionqueuecouldbenefitfromclarificationsandguidance.SomeprojectsthathavestarteddownthepathofRule21interconnectionmaysometimesneedtoshifttotheWDATprocess.Thus,partiesseekclarificationsandguidanceonhowutilitieshandletransferstotheWDATprocess.SCEnotedthatthetransferprocesswouldnotcreatetechnicalchallengesasthestudyprocessesemployedbySCEandCAISOarevirtuallyidenticalandthestudiesareperformedbythesameengineeringteams.SCE'sWDAThaslanguageunderSection4.9.1toallowforWDATprojecttotransfertoRule21GIA.PG&EhighlightedSection6.8.1.1ofitsWholesaleDistributionTariff(WDT)GeneratorInterconnectionProcedures(GIP)thatdescribestheone-timeopportunitytotransitionfromRule21toWDATatthestartofgeneratorinterconnectionagreementnegotiationandindicatedthatitwillapplycurrentCPUC-to-FERCcontractconversionprocedures.EachoftheutilitiesreiteratedthatforprojectsalreadygrantedPTOwithproposedprojectchanges(e.g.,non-exportingtoexporting),suchprojectswouldrequireanewinterconnectionrequest,wherestudyprocedurescanbesufficientlydifferent.TheWDATstudyprocesscantakeupto2to3yearsdependingontherouteittakes(e.g.,FastTrack,IndependentStudyProcess,orClusterstudy).ManyprojectschoosetheFastTrackprocess,which

cantakelessthan6months.AsDERsseekWDATinterconnectionstotakeadvantageofdifferentoperationalconfigurations(e.g.,non-exporttofullexport),DERsshouldbeallowedtoremainontheRule21tariffandoperateaccordingtoitsRule21interconnectionagreementastheproject(s)goesthroughtheWDATinterconnectionstudyprocess.Inotherwords,aprojectshouldnotberequiredtobetakenofflineduringtheWDATinterconnectionstudyprocesssolongastheresourcedoesnotviolatethetermsandconditions(e.g.,operationalmode)oftheresource.SCEnotesthatthistransferprocessisalreadyconsistentwithSCE’sexistingtreatmentforQFconversion,wheretheterminationdateoftheRule21InterconnectionAgreementisthesameastheeffectivedateoftheWDATIA.SCEfurthernotesthattheNRIprocessisaCAISOcontrolledprocessthattheutilitiesdonothavecontrolover.PG&E’sprocessislargelysimilartoSCE’s.SDG&Eto-datehasnotseenalargenumberoftransfers.ProponentCESAisunawareofRule21tarifforotheronlinedocumentationdetailingthistransferprocess,otherthancursorymentionsofrequiringseparateagreementsrequiredforotherservicesunderSectionD.2.ofthetariffandhowRule21interconnectionagreementsdonotconferanyrightstowheelelectricpowerthroughthedistributionsystemunderSectionD.3.ofthetariff.InproposingtodocumenttransferprocessesandPTOrules,partiessoughtclarificationoftheNewResourceImplementation(NRI)processandtimeline.NRIsetsaminimum203-daymandatorytimelinefortheCAISOtoestablishwhetheranewresourcecanoperateintheCAISOmarket,asthisprocessiscontrolledandoversightprovidedbytheCAISOwithnoutilityinvolvement.However,thisminimumtimelinewillbecome84daysbasedonchangesbeingmadeduringlate2019.Non-utilitypartiesalsosoughtclarificationfromCAISOonwhetherageneratorinterconnectedunderRule21couldcontinuetooperateunderitsexistingRule21interconnectionagreementuntiltheNRIprocessiscompleted.TheanswerobtainedfromCAISOisthateitheraRule21ExportingorWDATinterconnectionagreementservesforsubmissionduringthefirstphaseofdeliverablesfortheCAISONRIprocess(“Bucket1”).CAISOprovidedtwousecasesbelowinansweringthisquestion:• CustomerunderRule21ExportinginterconnectionagreementseekingNRIundernewWDAT

interconnection:ThecustomercancontinuetooperateundertheirRule21ExportinginterconnectionagreementandsubmitaWDATinterconnectionagreementwhentheinterconnectionagreementtransferiscompleted.TheCAISOstipulatedthatcontinuedoperationofthesystembecomesnullandvoidiftheconditionoftheRule21Exportinginterconnectionagreementchanges(e.g.,thereisanincreaseintheexportlimitationorallowance)andthattheresourcewouldberequiredtostartanotherNRIproject(e.g.,tobemodeledwiththehighermaximumexportcapabilitytoincreasetheresource’smaximumoutputlevel(Pmax).TheresourcecouldcontinuetoparticipateinthemarketswiththelowerPmaxorexportvalueduringtheNRIprocess.Insum,theCAISOindicatedthatresourcesunderRule21ExportinginterconnectionagreementswouldbeabletocontinuetooperateunderexportinglimitationsorallowancesoftheoriginalinterconnectionagreementduringtheNRIprocess,astheNRIprocessiscontrolledandrunbytheCAISO.

• CustomerunderRule21Non-ExportinginterconnectionagreementseekingNRIundernew

WDATinterconnection:TheCAISOstipulatedtoTeslathatfortheNRIprocesscontrolledbythe

CAISO,aresourceundertheusecasewithaRule21Non-ExportinginterconnectionagreementwouldnotbeconsideredintheNRIprocess.Theymay,however,qualifyforparticipationinthedemandresponseparticipationmodel(e.g.,PDR),whichdoesnotrequireNRIbutinsteadusesaregistrationprocesstoobtainaresourceIDandparticipateinthemarketasaneconomicresource.ThePDRcancontinuetoparticipateinthemarketandutilizethePDR’sresourceIDwhileitispursuingaRule21ExportingorWDATinterconnectionagreementandisconvertingtoanotherresourcetype(i.e.,notPDR)intheNRIprocess.OncetheNRIprocessiscompleted,thisresourcewouldhaveitsPDRresourceIDterminatedandthenewlymodeledresourceundertheNRIprocesswouldallowforcontinuationofparticipationunderadifferentparticipationmodelasanon-DRresource.

Utilitiesfurtherclarifiedthattwoactiveinterconnectionagreementscannotbeallowedatthesametime,soaWDATinterconnectionagreementcannotbevaliduntiltheexistingRule21interconnectionagreementisterminated.Atthesametime,theutilitiesweresympathetictonotterminatingaRule21agreementearly(e.g.,creatingagapinthetransitionprocess),wherearesourcemaynothaveanyagreementatonetimeandthusnotbeallowedtooperate.OneproposalraisedduringtheWorkingGroupdiscussionswastoconsiderallowinginterconnectioncustomerstosubmitafuture-datedWDATinterconnectionagreementtomeettheNRIsubmittalrequirement.However,CAISOtoldtheWorkingGroupthatitwillnotaccepttheseascustomerscouldonlybegintheNRIprocessoncetheinterconnectionagreementiscompleted.ExistingRule21agreementswillbeacceptedtoinitiatetheNRIprocessforapplicableusecases.WDATagreementscanbesubmittedpriortoaCommercialOperationDate(COD)beinggrantedfortheNRIprocess.Proponentposition:

CESA:Theclarificationsproposedherewouldbeveryhelpful,andwouldbenefitinterconnectioncustomersbyhavingtheutilitiesdocumenttheRule21toWDATtransferprocess.Thishigh-leveloverviewshouldbeprovidedwithintheapplicableFAQdocumentationandwebpages.

Proposal20-c.ConsensusProvidesomereferencelanguageor“softlink”withintheRule21tarifftotheFAQwebpagesandreferenceWDATtariffdocumentationfromProposal20-a.Asoftlinkprovidesashortcuttorelevantinformationforcontractorsandinterconnectionapplicants,inordertoexpeditefindinganswersandtominimizetheneedforphoneandemailinquirieswithutilities.Asthevolumeofrequestsincreases,utilitiesmayaddressspecificusecases,examplesofwhicharegiveninAnnexB.

AnnexB:Issue20,PotentialUseCasesofTransferfromRule21toWDATProponentsprovidedatableofpotentialusecases,andagreedthatpostingofthecasesintheapplicablewebsiteFAQsmaynotbenecessaryatthistime,butrathershouldbeconsideredasinquiresofthisnaturebecomemorecommoninthefuture.ImplementationofpostingcasestowebsiteFAQswillbeconsideredandmanagedbytheutilities’internalteamsatthattime.

OriginalRule21Program

NewWDATProgram

Systemoperationtypechanged? Usecaseexamples:

NEMWDATExport No

Example1:Customerhassubstantiallydecreasedtheironsiteloadandsystemisnowsizedfarabovethe100%annualproductionsizinglimitation.Ratherthancurtailingthesystemthecustomerwouldliketomonetizetheproductionviathewholesalemarket.Example2:Customerhasaseasonalload(agricultural/watertreatmentplant,etc.)andwouldliketomonetizeonexcessproductionratherthanhavingthesystemshutoffforlongperiodsoftime.

NEMAWDATExport No

Example3:Customerhas10sitesbenefittingfromtheNEMAbutisclosingdown8ofthesitesandlookingatinstallingonsitegenerationonthe1remainingbenefittingsite.Systemisnowsizedfarabovethe100%annualusagesizinglimitation.Ratherthancurtailingordownsizingthesystemthecustomerwouldliketomonetizetheproductionviathewholesalemarket.

Rule21Export

WDATExport No

Example4:CustomerhasexportonlyPURPAPPAwithIOUforasystematatestingfacilityforelectricalequipment.Customerneedstochargeanddischargeaspartoftheirtestingprocedures.Currentlycustomerdoesnothavetheabilitytousealoadbankorexistingloadstooffsettheusage/dischargeofenergy.Customerwouldliketodisplacedrawnenergytobenefitageneratingmeter.(UnsureifthiscaseisallowedunderWDATbutproponentcan’tprovideadditionalcasesatthistime.)

DemandSurvey

Response

WDATExport Yes

Example5:CustomeriscurrentlyparticipatingindemandresponsebutwouldliketoswitchtoWDAT.(IfthemitigationswillbecompletedpriortotheCODbeinggrantedbyCAISO,canthecustomeroperatethesystempriortoCODbeinggrantedandcantheyreceivePPApaymentspriortoCODbeingreceivedbyCAISO/NRI?)

Rule21Non-Export

WDATExport Yes

Example6:Customerhasanon-exportsystem,however,theyhavedecreasedtheirloadandnowhaveasubstantiallyoversizedsystem.Additionalbatterycapacitytostoreproductionisnotaviableoption.Customerwouldliketopursuechangingtoexportinordertomonetizetheiroverproductioninthewholesalemarket.Exampleformorecontext:Manufacturerhasaplantwitha4MWsystem.Manufacturerupgradesequipmentthatismoreenergyefficientinadditiontomanufacturingaproductthattakeslessenergytomake.Theynowonlyneedtoutilize1MWofthesystemtooffsettheirloadsandwanttodosomethingwiththeremaining3MWofcapacityratherthandownsizeorshutoffalargeportionofthesystem.

Rule21Non-Export

WDATNon-Export

No Noexamples;WDATdoesnotprovidefornon-export.

Issue22ShouldtheCommissionrequiretheUtilitiestomakeimprovementstotheirinterconnectionapplicationportals?Ifyes,whatshouldthoseimprovementsbe?PROPOSALSUMMARIESProposal22-a.ConsensusTheCommissionshouldissuedirectionon18sub-proposalsforspecifictypesofportalimprovementscontainedinthissub-proposal,takingintoaccountexistingutilityplans,utilityandotherpartycomments,utilityandotherpartysupport,andplannedorcurrentlyongoingimprovementsthatmayberelated.Proposal22-b.ConsensusForfunctionsthatrequireimprovementstotheutility’sexistingelectronicprocessingsystems,theCommissionshouldprovidecleardirectionastocostrecoverymechanismsinsupportoffunctionstobeimplementedunderCommissionorderthatdonothaveexistingapprovedrecovery.BACKGROUNDDistributionResourcesPlanning(DRP)ProceedingDecisionD.17-09-026recognizedthatoneofthekeypurposesofthethatproceedingistodramaticallystreamlinetheinterconnectionprocess,echoingtheCommission’sDRPFinalGuidancedocument.Inthespiritofthisprecedentandthestate’sprioritizationofDERasamajormarketsectorformeetingstateclimateandenergygoals,WorkingGroupThreepartieshavegenerallyacknowledgedthatthereareopportunitiesforimmediateandongoingimprovementstotheutilities’interconnectionapplicationportals.Portalsareanimportantaspectoftheinterconnectionprocessandimprovementstothemcanstreamlinetheinterconnectionprocess.ProponentGPIpolledutilitiesandotherstakeholderswithrespecttothecapabilitiesofthecurrentinterconnectionportals,problemswithexistingportals,ongoingeffortsbyutilitiestomakeimprovements,plannedutilityimprovementsinthefuture(perhapspendingfunding),andotherwaysinwhichtheportalscouldbeimprovedthatgobeyondwhatutilitiesarecurrentlyplanning.Inadditiontoonlinepolling,GPIcoordinatedasubgroupthatmetviaconferencecalltwicebeforethefullWorkingGroupdiscussedIssue22.Atotalof18proposedimprovementstotheinterconnectionportalsweremadebyvariousparties.Descriptionsofthesesub-proposalsaregiveninAnnexC.

DISCUSSIONProposal22-a.ConsensusTheCommissionshouldissuedirectionon18sub-proposalsforspecifictypesofportalimprovementscontainedinthissub-proposal,takingintoaccountutilityandotherpartycomments,utilityandotherpartysupport,andplannedorcurrentlyongoingimprovementsthatmayberelated.Thesub-groupandthefullWorkingGroupvettedthe18sub-proposalsandarrivedatsomeprioritizationsandcategorizations,alongwithsolicitingutilitycommentsonwhichsub-proposalstheysupportedand/orwerealreadyundertakinginsomemanner.TheresultsaresummarizedinTables1and2.Table2containsa“priorityscore”developedbyproponentGPIthatiscalculatedfromnumericalscoringbasedonsurveyresponsesbypartiesonthepriorityrankingforeachsub-proposal.Table1groupssub-proposalsintotiers,takingintoaccountboththispriorityscoreandthedegreeofutilitysupportasexpressedthroughcommentsandWorkingGroupdiscussions.Partycommentsoneachofthe18sub-proposalsaregiveninAnnexD.GPIcommentedthattherewasinsufficienttimeduringtheWorkingGroupfordetailedin-persondiscussiononeachofthe18sub-proposals.Accordingly,GPIsaysitmaybeappropriatetocreateastandingsub-grouptoworkthroughthedetailsofthosesub-proposalsthattheCommissionapproves.GPIalsonotesthatcommentsonsub-proposalsbyutilitiesandotherpartiesinsomecasesreflectmisunderstandingsaboutaparticularsub-proposal,orthatsomesub-proposalsevolvedduringdiscussions,suchthatsomepartycommentsaren’taccuratewithrespecttothefinalsub-proposaltext.Forexample,sub-proposal#19isforharmonizingportalsor,attheleast,harmonizingterminology.Commentssubmittedbytwoutilitiesonlyaddressharmonizingportalsandnotharmonizingterminology.GPIcommentsthatthisagainweighsinfavorofadditionalsubstantivediscussionsonthesetechnicaltopics,perhapssimilartothedepthofdiscussionintheSmartInverterWorkingGroup,whichdidrequireastandingworkinggrouptoresolvemanyofthetechnicalissues.Teslacommentedthat,asageneralcommentacrossallsub-proposals,thesub-proposalsarenotofequalprioritytostakeholders.TeslacommentedthatshouldtheCommissiondirecttheutilitiestoimplementthevarioussub-proposals,itwillbecriticallyimportantforthatefforttobeginwithanimplementationplan,tobedevelopedbytheutilitiestoensurethatprioritizeditemsaretreatedassuch.Additionally,accordingtoTesla,thatimplementationplanshouldincludefairlyspecificdetailregardingwhatchangesorprocessimprovementswillbemadeasopposedtospeakinginhighlevelgeneralities.TeslaprovidedtheWorkingGroupwithamark-upalongwithitscommentsthatithopedcouldprovidesomecoloronthisideaandthelevelofgranularityultimatelyrequired.Teslasaiditsupportssub-proposals6,9,12,13,14,and18inparticular.GPIrecommendsthatCommissiondirectionentailadecisiononwhethereachproposedimprovementshouldberequired,andifso,towhatdegreeofspecificity.InTable2,the“Commissionaction”columnshowsGPI’srecommendationsforthekindofCommissionactionthatwouldbeappropriate/beneficialtoimplementeachimprovement.“Principle”meansthattheCommissioncouldissueastatementofprincipleratherthanspecificactions.“Specific”actionmeanstheCommissioncoulddirecttheutilitiestocompletespecificactionstoimplementthesub-proposalatissue.Thedifferenceexistsbecausesomesub-proposalsarenotasamenabletospecificactions

bytheCommissioninadecision,butwillstillbenefitfromCommissiondirectionatthelevelofprincipletosupportthesub-proposalatissue.Anexampleofa“principle”actionwouldbetoorderutilitiestousethesameorsubstantiallysimilarnamingandterminologyconventionsintheirinterconnectionportalsinordertoreduceconfusionacrossplatforms.Anexampleofa“specific”actionwouldbetoorderallutilitiestoincludeV2G-DCasacustomerinterconnectionoptionintheirinterconnectionportals.Commissiondirectionshouldbemorespecificonthosesub-proposalslistedinTable2as“specific,”andshouldbemoregeneral,aboutprinciplesandpolicypreferences,forsub-proposalsthatarenotedas“principle.”

Table1:Sub-ProposalsGroupedbyUtilitySupportandProponentRanking(Fordetailsoneachsub-proposal,seeAnnexC;forpartycommentsoneach,seeAnnexD)

Sub-proposal Utilitysupport

TierA:StrongUtilitySupportandStrongProponentRanking

2 Includeanoptionfortransmissionordistributioninterconnectionintheonlineapplication

PG&E,SCE,SDG&E(distributiononly)

4 AddV2G-DC(vehicle-to-grid)interconnectionoptionstoportal PG&E,SCE7 Onlinesignatureoptionforallrequiredinterconnectionapplicationand

relatedsignaturessuchasGeneratorInterconnectionAgreementsPG&E,SCE,SDG&E

9 Eliminatemanualdataentryasmuchaspossiblebyintegratingwithapplicantdatabasesorallowingbatchuploads

PG&E,SCE,SDG&E(partial,nobatching)

10 Eliminaterequirementtoprovideexistingsysteminfowhenapplyingforadditionalinterconnectioncapacity(eithersolarorstorage)

PG&E,SCE,SDG&E

11 Automateddatavalidationcheckwhensubmittingapplication PG&E,SCE,SDG&E15 Allowapplicantstoaccessupdatedprojectstatusatanytime,makeeditsat

anytime,addsearchandfilterfunctionsbasedoncontractor,customer,etcPG&E,SCE,SDG&E

16 Onlinepaymentsforallpayments,includingstandardpaymentssuchasNGOMsforresidentialstoragesystemsormetersocketadapters

PG&E,SCE

TierB:SomeUtilitySupportandHigherProponentRanking

1 Question-responsefacilitywith24-hourturnaround,oronlinechatbox Forquestion-responseoptiononly:SDG&E1day;PG&E3days;SCE1daystandard

6 Automatethe“deemedcomplete”processforstandardizedortemplate-basedsingle-linediagramprojects

PG&E&SCE(toextentpossible),SDG&E

8 AddlinkinICAmapsthatallowsapplicanttojumpfromtheICAmaptotheonlineinterconnectionportal,location-specificinfoautomaticallypopulated

PG&E,SCE

14 Createone-clickAuthorityHavingJurisdiction(AHJ)approvalprocess,possiblyapp-basedorweb-based

17 AllowcontractorstogenerateformsforstandardagreementslikeIFFOA,NGOM,etc.

TierC:NoorLittleUtilitySupportandLowerProponentRanking

3 ProvideanApplicationProgrammingInterface(API),harmonizedacrossutilities

5 AddautomatedPARoptiontoportals.Thiswouldallowapplicantstoapplyfor,payfor,andreceivePARreportsalmostinstantaneously

PG&EandSCEwillingtoreview/explore

12 Notification-onlyprocessforstandardresidentialinterconnections(certainconfigurationsofpre-defined“standard”residentialsystemsunderacertainsize)

13 Removecustomerinteractionrequirementsinfavorofcustomernotificationsonly.Customerisnotrequiredtosignanydocumentsorbeinvolved

18 Haveonestate-wideportalforconsistency.Or,haveconsistencyinprojectstatusnames,visibilityofutilityvs.installer’shands,andduedatetracking

Table2:Priority-RankedPortalImprovements(BasedonWorkingGroupSurveysconductedbyproponentGPI,whichassignedpriorityscoresandspecifiedCommissionaction,plusWorkingGroupdiscussions)Sub-Proposal Description Priority

ScoreIOUsSeeNeed

CommissionAction?

“MustHave”

11 Automateddatavalidationcheckwhensubmittingapplication 14 Yes Principle

15Allowapplicantstoaccessupdatedprojectstatusatanytime,makeeditsatanytime,addsearchandfilterfunctionsbasedoncontractor,customer,etc.

14 Yes Specific

9 Eliminatemanualdataentryasmuchaspossiblebyintegratingwithapplicantdatabasesorallowingbatchuploads 11 Yes Principle

4 AddDCV2G(vehicletogrid)interconnectionoptionstoportal 10 Yes Specific

"NoBrainers"

7OnlinesignatureoptionforallrequiredinterconnectionapplicationandrelatedsignaturessuchasGeneratorInterconnectionAgreements.

13 Yes Specific

10Eliminaterequirementtoprovideexistingsysteminfowhenapplyingforadditionalinterconnectioncapacity(eithersolarorstorage).

12 Yes Specific

16Onlinepaymentsforcertainpayments,includingstandardpaymentssuchasNGOMsforresidentialstoragesystemsormetersocketadapters

12 Yes Specific

"HighlyDesired"

18Haveonestate-wideportalforconsistency.OR,consistencyinprojectstatusnames,visibilityutilityvs.installer’shands,andduedatetracking

11 No Principle

6 Automatethe“deemedcomplete”processforstandardizedortemplate-basedsingle-linediagramprojects 10 Yes Principle

17 AllowcontractorstogenerateformsforstandardagreementslikeIFFOA,NGOM,etc. 9 Yes Specific

2 Includeanoptionfortransmissionordistributioninterconnectionintheonlineapplication 8 Yes Specific

3 ProvideanApplicationProgrammingInterface(API),harmonizedacrossutilities 8 Yes Principle

8AddlinkinICAmapsthatallowsapplicanttojumpfromtheICAmaptotheonlineinterconnectionportal,location-specificinfoautomaticallypopulated

8 Yes Specific

"GoodtoHave"

14 Createone-clickAuthorityHavingJurisdiction(AHJ)approvalprocess,possiblyapp-basedorweb-based 9 Yes Principle

12Notification-onlyprocessforstandardresidentialinterconnections(certainconfigurationsofpre-defined“standard”residentialsystemsunderacertainsize)

8 No Principle

5AddautomatedPARoptiontoportals.Thiswouldallowapplicantstoapplyfor,payfor,andreceivePARreportsalmostinstantaneously

6 No Principle

1 Question-responsefacilitywith24-hourturnaround,ORchat-box 5 No Principle

13Removecustomerinteractionrequirementsinfavorofcustomernotificationsonly.Customerisnotrequiredtosignanydocumentsorbeinvolved

5 No Principle

Proposal22-b.ConsensusForfunctionsthatrequireimprovementstotheutility’sexistingelectronicprocessingsystems,theCommissionshouldprovidecleardirectionastocostrecoverymechanismsinsupportoffunctionstobeimplementedunderCommissionorderthatdonothaveexistingapprovedrecovery.ProponentGPIposition:

TheCommissionhasprioritizeddramaticstreamliningofinterconnection,alongwithanexpandedfocusonDistributedEnergyResources(DER)moregenerally.WhilecostsshouldalwaysbeconsideredwithrespecttoanynewinitiativesthattheCommissiondirects,thereisnolegislativeorpolicyrequirementinthepresentcaseforcost-benefitanalysis,ashasbeendiscussedextensivelybypartiesintheWorkingGroup.GPIsupportsCommissionconsiderationofcostsbutnotacost-benefitanalysis.TheCommissionhasalsomadeitclearthatutilitiesaretobeproactiveinencouragingDERandimproving,streamliningandautomatingtheinterconnectionportalsispartofthisbroadereffort.

TURNposition:

Ifonlyasmallgroupofdevelopersbenefitfromthesub-proposal,andgeneralratepayersdonotbenefit,thenTURNstronglyopposesrate-basingthecostsassociatedwiththesub-proposal.

Utilitypositions:

PG&Eprefersthatorderedchangestotheutility’sITinfrastructurethatsupportsinterconnectionshouldberecoveredfromtheInterconnectionRequestFee(boththeNEMInterconnectionRequestFeeandnon-NEMInterconnectionRequestFee)suchthatthecostsforimplementingtheorderarerecoveredfromtheparticularsetofcustomerswhobenefit.

SDG&E:Atthepresenttime,theexistingapplicationprocessesareadequatetofacilitatetheinterconnectionrequestsandreviewprocesses.Giventhevolumeofsuchapplications,SDG&Ehasnotobservedaneedforchangesbutisconstantlymonitoringtheinterconnectionprocesstomakesystemimprovementsbasedonidentifiedneedsandbaseduponcarefulcost-benefitanalysis.SDG&EbelievesthattheUtilitiesshouldretainthediscretiontoevaluatethevolumeofinterconnectionapplicationsandareasforimprovementtotheweb-portals,becausemandatinguniformchangesmayrequireapplicantstobearcoststhatarenotnecessary.TheUtilityshouldretainthediscretiontoanalyzeitscustomerfeedbackandwebportaltodetermineandprioritizewaystoimprovethesystem.Costrecoveryiscritical,andtheCommissionshouldalsoevaluatewhetherthebenefitstothepublicoutweighthecosts,andconsiderwhetherthosewhobenefitfromthesub-proposalsareappropriatelypayingforthecostsassociatedwiththesub-proposals.

AnnexC:Issue22,DetailedDescriptionsofSub-ProposalsThefollowingpotentialimprovementswereproposedbyindividualWorkingGroupparticipants:

1. Question-responsefacilitywith24-hourturnaroundorchatbox(proposedbyCALSSA)2. Includeanoptionfortransmissionordistributioninterconnectionintheonlineapplication

(proposedbyJKBEnergy)3. ProvideanApplicationProgrammingInterface(API),harmonizedacrossutilities,tothe

onlineportalsasthiswillbehelpfulwheninterconnectinglargenumbersofDERslikeEVs(proposedbyNuvve)

4. AddDCV2G(vehicletogrid)interconnectionoptionstoportal(proposedbyCESA)5. AddautomatedPARoptiontoportals(proposedbyGPI)

a. Thiswouldallowapplicantstoapplyfor,payfor,andreceivePARreportsalmostinstantaneouslyiftheydeemtheICAmapinformationtobeinsufficient,outdated(becauseofthe30-dayrefreshrate),orunreliableforanyreason

6. Automatethe“deemedcomplete”processforstandardizedortemplate-basedsingle-linediagramprojects(proposedbyGPI)

a. Anapplicationmustbeprocessedbytheutilitywithin10BusinessDays(BDs),applicantnotifiedofreceipt,andiftheInterconnectionRequestisdeemedcompleteornot(Rule21E.5)

b. Ifdeemedcomplete,applicantisnotifiedautomaticallybyemailthatInitialReviewwillbecompletedwithin15BDs(E.5.a,F.2.a)

c. Ifnotdeemedcomplete,applicantisnotifiedautomaticallyofthedeficienciesandthatitwillhave10BDs(perthetariff)tocure(E.5.b).Deficiencieswilloftenresultinmultipleroundsofcorrections,witheachroundrequiring10BDsbytheIOU.Withanautomatedapplicationportal,theneedforcorrectionsshouldbesignificantlydiminishedandtheturnaroundtimefornotifyingapplicantsofdeficienciesmayalsobesignificantlydiminished.

d. Iftheonlineportalapplicationispopulatedcorrectly,thedeemedcompletedprocessisautomatableintwodifferentways:

• Providetemplatesingle-linediagrams(SLDs),thatcanbemodifiedasrequired,forsimplerprojects.SDG&E’sDIISsystemhaslargelyautomatedthisprocessforNEMprojects,includinganautomatedSLDprocesstemplatethatappliestomanystraightforwardprojectsbyallowingthecustomertoselectagenericgeneratorconfigurationfromtheDIIStoolinsteadofsupplyingaproject-specificSLD,andthatgenericconfigurationthenservesastheSLD

• Largerbehind-the-meterandfront-of-meterprojectsrequiremorecomplexSLDsand,forthistypeofproject,dialoguewindowsshouldspecifytheneededinformationinordertosafelyinterconnectsuchprojectswithoutrequiringindividualizedSLDreview

7. OnlinesignatureoptionforallrequiredinterconnectionapplicationandrelatedsignaturessuchasGeneratorInterconnectionAgreements(proposedbyGPI).However,itisalsoimportanttoensurethatthedeveloperalwayshasvisibilityintowhatevermaterialsrelatedtoaprojectarebeingsubmittedtoandsignedbythecustomer(ifthereisacustomer

involvedwhoisnotthedeveloper).Accordingly,ifthedeveloperandthesignatoryaredifferentparties(asinthecaseofmostbehind-the-meterprojects),thedevelopershouldalwaysbenotifiedwiththesignatoryoftheonlinesignatureoption.

8. AddlinkinICAmapsthatallowsapplicanttojumpfromtheICAmaptotheonlineinterconnectionportal,withlocation-specificinformationautomaticallypopulated(proposedbyGPI)

a. ThiswillbeginaprocessoflinkingtheICAdatatotheinterconnectionportal9. Eliminatemanualdataentryasmuchaspossiblebyintegratingwithapplicantdatabasesor

allowingbatchuploads(proposedbyTesla)a. Installerscurrentlymanuallytypedatapointsintotheonlineportals.Thisdatais

oftenstoredininternaldatabases,whichcouldbeaccessedusingsoftwaretools,orexportedintoafile.Theinstallercouldexportadatafilefromtheirsysteminaspecificformat(whereallmeternumbersareinthefirstcolumn,andallaccountnumbersareinthesecondcolumn,etc.)anduploadittotheutility’sportal.Theportalcouldthenautomaticallyinputtherelevantdataintotheutility’sportal.

b. ForNEMAggregationaccounts,thereare14piecesofbasiccustomerinformation,muchofwhichisthesameforallaccountsincludedinanaggregationgroup.Thesefieldsare:AccountType,ParcelNumber,FirstName,LastName,Company,Address,City,State,Zip,AccountNumber,RESBCTAccountNumber,MeterNumber,RateSchedule,AnnualkWh.Entering10-digitIDnumbersmanytimesispronetomanualerrors.Whentheinformationisalreadyinutilitydatabases,itisnotgoodpractice.Theportalusershouldbeabletoentertheaccountnumberandmeternumberandhaveotherinformationauto-filled,thenchoosetousethesameinformationforrelatedaccounts.

c. Alternatively,theinstallerdatabaseandtheutility’ssystemscouldbeintegratedtoeliminateallmanualtouchpoints.

10. Eliminaterequirementtoprovideexistingsysteminfowhenapplyingforadditionalinterconnectioncapacity(eithersolarorstorage)(proposedbyTesla)

a. Ifthisrequirementisretained,thenthisinformationshouldautomaticallypopulateintheonlineportalafterenteringidentifyingcustomerinformation.Forexample,inSCE,ifacustomerisaddingabatterytoanexistingsolarsystemanddoesnothavetheexistingsystemspecifications,theymustendureamonth-longprocesstoaccessthisinformation.First,theymustsignanauthorizationformtoallowtheinstallertorequesttheinformationontheirbehalf.Next,thatformissubmittedtotheinterconnectiondepartmentatSCE.ThatteamthensendsarequesttoanotherSCEdepartmenttoaccessthecustomer’sexistingsysteminformation.Thisinformationisthensentbacktotheinterconnectionteam,whothensendsittotheinstaller.Finally,theinstallerusesthisinformationtofillouttheinterconnectionapplicationfortheutilitytoreview.

11. Automateddatavalidationcheckwhensubmittingapplication(proposedbyTesla)a. Automaticallyperformadatavalidationcheck(onaminimalnumberofdatapoints)

topreventtheapplicationfrombeingsubmittedifthecustomer’sdataisnotaccurate.Auto-populatedatafromutilitysystemsaftertheinstallerentersdatatovalidatethattheyarehavearelationshipwiththecustomer.Forexample,aftertheinstallerinputsthemeternumberandaccountnumber,thecustomer’sinformationwouldautomaticallypopulateinthesystem(i.e.,nameandserviceaddress).PG&E–

theapplicantentersthecustomer’smeternumberandaccountnumber,afterwhichthecustomer’snameandserviceaddressauto-populateintheportal.Ifeitherpieceofdataisincorrect,theportalredflagsthisanddoesnotallowtheapplicanttoproceed.SDG&E–theapplicantentersthecustomer’smeternumber,accountnumber,nameandserviceaddress.IfoneofthepiecesofdatadoesnotmatchSDG&E’ssystem,theportalredflagstheincorrectfield,andwillnotpermittheapplicanttoproceed.Noneoftheinformationauto-populates.SCE–theapplicantentersthecustomer’sserviceID,andtypesinthecustomer’snameandaddress.Thisdataisnotvalidatedunlessadditionalinformationisentered.Theapplicantmaytypeinthecustomer’sserviceIDandaccountnumberinorderforthecustomer’snameandaddresstoauto-populateandtovalidatetheserviceID.

12. Notification-onlyprocessforstandardresidentialinterconnections(proposedbyTesla)a. Implementa“notificationonly”processforcertainconfigurationsofpre-defined

“standard”residentialsystemsunderacertainsize.Ifaprojectmeetscertaincriteria,theinstallerwouldalerttheutilityoftheinstallation,andwouldbeabletoproceedwithturningthesystemonimmediatelyuponpassingthefinalbuildinginspectionwithoutaformalPTOnotificationfromtheutility.Installerscouldbecertifiedorhavetomaintainaspecificsuccessratetoparticipateinthenotification-onlyprocess.Forexample,inNYSERDA’srebateprogram,installersarerequiredtomeetcertainqualitystandardsrelatedtopassedrebateinspectionsandcompleteapplicationsuccessrates.Iftheinstallerisnotabletomeetthestandards,theyareatriskofsuspensionfromtherebateprogram.TheEnergyTrustorOregon(ETO)rebateprogramissuesaninstaller“reportcard”(exampleattached)whichratesinstallersona3-starsystemin3categories.Higherratingscanqualityinstallersforadditionalprogramofferings.

13. Removecustomerinteractionrequirementsinfavorofcustomernotificationsonly(proposedbyTesla)

a. Implementaprocessinwhichthecustomerisnotrequiredtosignanydocumentsorbeinvolvedintheinterconnectionprocess.PrecedenthasbeensetbySacramentoMunicipalUtilityDistrict(SMUD),whichdoesnotrequirecustomerstoengageintheinterconnectionprocess.

14. Createone-clickAuthorityHavingJurisdiction(AHJ)approvalprocess,possiblyapp-basedorweb-based(proposedbyTesla)

a. TheutilityshouldcreateameansbywhichtheAHJcanautomaticallysubmitinspectionapprovaltotheutilityusinganautomated“oneclick”process.Suchaprocesscouldbeimplementedsuchthatadeveloperisnotifiedsimultaneouswithsubmissionofinspectionapprovaltotheutilitythattheprojectcanbeturnedon–providingtheoptionforanautomaticPTOifthatisdesiredbydeveloper.IstherepotentiallyaroleforthecommissionortheutilitiesaspartoftheWorkingGroupprocesstodosomeoutreachtopriorityAHJs?SDG&EonlyacceptsinspectionresultsfromtheAHJsdirectly.SDG&EhasimplementedanapptostreamlinereceiptofnotificationthattheAHJinspectionhaspassed.TheAHJinspectorisabletolookupasiteaddressormeternumberusinganappontheirphone,andsearchfortherelevantutilityapplication.Theinspectorclickstherelevantapplication,andisabletosubmitanotificationofpassedinspectiondirectlytotheutility.Whiletherehasbeensomeadoptionofthisprocess,notallAHJsparticipate.WhenAHJsmanually

sendinspectionnoticestotheutility,thereareissueswithpermitsnotbeingreceivedorhavingtobere-sentmultipletimes.PG&EacceptedinspectionresultsfromeitherAHJsorapplicants,butareplanningtoremovethefeaturewherebyAHJscansubmitinspectionresultsfromtheironlineportal.Theportalpromptstheapplicanttoentertheinitialpermitdate,inspectiondate,permitnumberandthensearchestocheckiftheAHJhassubmittedinspectionresults.IftheAHJhasnotsenttheresultsbuttheapplicanthasacopy,theapplicantisabletouploadacopy.SCEdoesnotaccepttheinspectioncertificatefromtheAHJdirectly.Theapplicantuploadsacopyoftheinspectioncertificate.

15. Allowapplicantstoaccessupdatedprojectstatusatanytime,makeeditsatanytime,andaddsearchandfilterfunctionsbasedoncontractor,customer,etc.(proposedbyTesla)

a. Installersshouldhaveaccesstoprojectstatusesintheportals,includingvisibilityonaprojectsageinstatusor“duedate”tomoveintothenextstep.Theportalshouldgranttheabilitytosearchandfilterforprojectsbasedoncontractor,customerandstatus(e.g.,abilitytosearchforallincompleteapplications,orallprojectscurrentlyundergoingengineeringreview,etc.).Itshouldalsoincludetheabilityto“self-serve”byallowinginstallerstoeditapplicationsaftersubmissionorcancelapplications.Itshouldalsoincludeasimplenoteslogtoallownotesbackandforthtoreplacemanualemails.

16. Onlinepaymentsforallpayments(proposedbyTesla)a. OnlinepaymentisacceptedforNEMsystemsbutnotforotherstandardpayments

suchasNGOMsforresidentialstoragesystemsormetersocketadapters.Onlinepaymentshouldbeacceptedforallpayments.

17. AllowcontractorstogenerateformsforstandardagreementslikeIFFOA,NGOM,etc.(proposedbyTesla)

18. Haveonestate-wideportalforconsistency(proposedbyTesla).Or,iftheportalsremainseparate,thereshouldbeconsistencyinprojectstatusnames,visibilityonwhethertheapplicationisintheutility’shandsortheinstaller’shands,andduedatetracking.Forexample,PG&Edoesnotprovideanystatusupdatesintheirportal,whileSDG&Eprovides3generalstatuses(inprogress,incomplete,andPTO),andSCEprovidesabout10distinctprojectstatuses.

AnnexD:Issue22,PartyCommentsonSub-Proposals1.Question-responsefacilitywith24-hourturnaroundorchatboxTeslawantstoclarifythatwhilewearenotopposedtothechatboxidea,wearemoreinterestedinsimplyensuringtimelyresponses,whetherviaemailorotherchannels.

CALSSAcomments:

CALSSAmaintainsitssub-proposalforachatboxunlesseachoftheutilitiescommitstoa24-hourturnaroundtimeforqueries,especiallythosequeriesrelatedtoinitialapplicationsubmittalandcuringdeficienciesinapplicationsthathavenotbeendeemedcomplete.

Oneofthelargestfrustrationsthatportalusershaveisnotbeingabletogetsimpleanswerstosimplequestions.PG&Einparticularispainfullyslowinrespondingtoinquiries.Theyhavea“teaminbox”astheirsoleopportunityforcontact.Theytakeatleast10businessdaystorespondtoquestions,andtheresponsesnormallycomefromanamelessaccountsothereisnowaytocontinuetheconversationwithasimplefollow-upquestionwiththesamePG&Erepresentative.Afollow-upquestionmustgotothegeneralinboxwiththeapplicationnumbernoted,andthenadifferentPG&Erepresentativewillresearchtheissueandrespond.Thisisanincrediblyinefficientsystemforbothsides.Itisdifficulttohaveaproperrelationshipwithacustomerwhensimplemattersareoftenputonholdforamonthandahalftoaccountforback-and-forthcommunicationwiththeutility.

Customerservicerepresentativeswhoanswerthecustomerinquiryphonelinearenottrainedininterconnectionandregularlygiveincorrectinformationorareunabletoanswerquestions.Basicapplicationprocessingincludestheabilityforuserstoasksimplequestionsabouttheapplication.Thereshouldbefunctionalitywithintheapplicationportaltogetquickanswerstosimplequestions.Achatboxstaffedbytrainedinterconnectionstaffwouldbeeffective.Itwouldensurethatinterconnection-relatedquestionsaredirectedtopeoplewhoaretrainedtoanswerthem.Thiswouldsavetimeforcustomerservicerepresentativeswhoarecurrentlytryingtoanswerquestionstheyarenottrainedtoanswer.Asanalternative,theportalcouldincludeaphonenumberoremailaddressthatpopsupinvariousplacesanddirectsinquiriestoappropriatelytrainedstaff.A24-hourturnaroundtimewouldbeslowerthanachatboxbutwouldstillallowforareasonablerelationshipwithacustomer.

PG&E:Onebusinessdayislikelyunreasonableduetothevaryinglevelsofcomplexitythatinquiriesmayhaveaswellasduringcertaintimesoftheyear(suchastheholidays)havingsubjectmatterexpertsavailabletoanswerquestionsthatmayormaynotcomeinduringthetimeperiodisunreasonable.Assuch,athree-businessdayturnaroundasacompliancetimeline,withagoalofansweringsimplerequestswithinone-businessdaywouldbemorereasonable.

SCE:AlthoughachatfunctionisbeingconsideredforSCE’sGridInterconnectionProcessTool(GIPT),thereisnocurrentdecisiontoimplementthisfunctionuptothispointindevelopmentbecausetheneedhasnotbeensubstantiated,norhasthisfunctionbeenaccountedforinthecurrentprojectscopeandfunding.GIPTisbeingdesignedanddevelopedwith(amongotherthings)agoaltoimproveinterconnectioncustomer’svisibilityastostatusofagivenprojectatanygiventime.Despitethisaddedfunctionalityandutility,theIOUscollectivelyagreethatimprovedresponsetimetocustomerinquiriesisanimportantaspectofcustomerservice.SDG&ECustomerGeneration’sbusinesspolicyistoreturnallemailsandphonecallswithinthesamebusinessday.Customersneedingassistancemaycalladirectphonenumberorsendanemailtoadedicatedemailaddress(netmetering@semprautilities.com).CallsandemailsaremonitoredthroughoutthedaywithintheCustomerGenerationgroup.Infact,mostcontractorsandcustomerscontactSDG&Eemployeesdirectlywithanyquestions,asemployeessharebusinesscardsatmeetingsinthefield.Thereisnotsufficientneedorstafftomonitorachat-box,whichwouldaddsystemandlaborcoststoimplement.2.IncludeanoptionfortransmissionordistributioninterconnectionintheonlineapplicationPG&Eisnotcurrentlydoingthis(assumingDistributionorTransmissionisrelatedtotheelectricalconnectionandnotgeneratingfacilityjurisdiction).WithregardstoFERCversusCPUCapplications,ourportalsalreadydothatdelineation.SCE:ItisexpectedthattheGIPTsystemwillaccommodateprojectsunderRule21Non-Exportin2019.RequeststointerconnectunderRule21export,NEM,andSCE’sWholesaleDistributionAccessTariff(WDAT)representaddedfunctionalitythatisexpectedtobeimplementedinadditionalphasesofGIPTdevelopment,currentlyslatedfor2020andbeyondsubjecttoPhase1functionalityandfunctionreviewforPhase2(andapprovedCommissionfundingasapplicable).ForprojectsthatrequesttointerconnecttothetransmissionsystemthatisundertheCAISOcontrol,theseprojectswillmostoftenflowthroughCAISOSDG&EmaintainsfullautomationforallNEM-ST,Non-NEM,andRule21generatorsinitsonlineportal.WDATprojectsarenotincluded,asthereisnotsufficientvolumeandthereforeneedyet.Iftheneedchanges,SDG&Ewillbewillingtomakeimprovementstoitsonlineportal.Inconsiderationofensuringjustandreasonableratesandfees,SDG&Eweighstheneedsanddemandsagainstcostimplications.MakingtheproposedsystemupgradetoincludeWDATisoutofscopeofthisproceedingandwilladdsubstantialcostthatisnotwarrantedbythevolumeofapplicationswithinSDG&E’sserviceterritorytodate.3.ProvideanApplicationProgrammingInterface(API),harmonizedacrossutilitiesPG&E:Notdoinganddon’tbelievethiswouldbeanefficientuseofresources.

SCE:Harmonizingsystemsacrossutilitiesisextremelycostlyandcomplexbecausecurrentsystemssupporttheparticularsysteminfrastructureoftheutility,whichareuniquetoeachofthethreeCaliforniaIOUs.SCEdoesnotsupportthisconsiderationaseachutilitymanagesaccordingtoitsownsystemparametersandexistingIToperatingsystems.Withthatsaid,FAQsandothercustomerfocusedmaterialisavailabletoaidthecustomerexperienceforeachparticularsystem.SDG&E:AsreflectedinthespreadsheetcirculatedaftertheMarch27thmeeting,thissub-proposalishighlydesiredbyotherparties.However,SDG&EdoesnotseeaneedforanAPI.AsstatedinSCE’sinitialcommentsonthesub-proposal,“Harmonizingsystemsacrossutilitiesisextremelycostlyandcomplexbecausecurrentsystemssupporttheparticularsysteminfrastructureoftheutility,whichareuniquetoeachofthethreeCaliforniaIOUs.”SDG&Ehasmadesubstantialcapitalinvestmentintothedevelopmentofitsapplicationportal,whichisasunkcost.Thissub-proposalrequiresnewcapitalinvestmentthathassubstantialcostimplications.Nuvvehasnotstatedhowitproposestofinanceauniformapplicationportal–whethersocializedthroughratesandimposedoncaptiveratepayersorthroughinterconnectionfees.Thisisaconvenienceitemthatbenefitslargecompaniesthatprocessapplicationsthroughoutthestate,butthecostofimplementingitwouldbesocialized.SuchanAPIisnotaneedandshouldnotbeadopted.SDG&Ehasnothadthevolumetosupportsuchacapital-intensiveundertaking.Equityisakeyprincipletojustandreasonablerates;noratepayershouldeverfinanceanyotherratepayer,orelsetheratesarenotequitable.SDG&Edoesnotsupportthissub-proposal.4.AddV2G-DC(vehicle-to-grid)interconnectionoptionstoportalTeslaisnotopposedtoincorporatingthisintoportalsbutdoesquestionthedegreeofurgencygiventhenascentstateofV2Gcurrently.GPIdisagreeswithTeslaandurgestheCommissiontoaddressthisnowinordertoprovideaproactiveenvironmentforV2G,ratherthanbeingreactive.

PG&E:OursystemssupporttheinclusionofEVSEinvertersas“inverters”buttherewouldbenodatapointtolinkthemtobeing“EVSEinverters”.Assuch,iftheCommissionwouldliketohavetheadditionalgranularityorexpectstoissuedatarequestsforthiskindofinformation,PG&Ewouldsupportmakingadjustmentsasnecessarytoenablesuchreporting.SCEsupportstheinclusionofEVSEinvertersinGIPT.SCEexpectsthatthisfunctioncanbeincorporatedintotheGenerationInterconnectionProcessingTool(GIPT)dropdownmenufornewapplicationswithinthelaterphasesofplatformdevelopmentsubjecttoPhase1functionalityconfirmationandPhase2functionreview.ExpectsDCV2GinterconnectionswillbeaddedtoSCE’sGIPTsysteminlaterphasesofsystemdevelopment.SDG&Ehasonlyprocessedoneinterconnectionapplicationto-dateforaDC-coupledV2Gfacilitythatwasbehindabillingmeteratacharger.SDG&Edoesnotsupportthissub-proposal.ThescopeandcosttoreviseSDG&E’swebportalhavenotbeendeterminedbecausesofewV2Gapplicationshavebeensubmittedtodate.AsthenumberofV2Gapplicationsincrease,SDG&EwillworkwithitsInformationTechnologygrouptodeterminethedetailedscopeofworkandassociatedcoststo

revisetheportaltoallowstreamlinedapplicationprocessesforV2Gandweighthosecostswiththepotentialbenefits.Atthepresenttime,theexistingapplicationprocessesareadequatetofacilitatetheinterconnectionrequestandreviewprocessforV2Gsystems.Giventhelackofsuchapplications,SDG&Ehasnotobservedaneedbutisconstantlymonitoringtheinterconnectionprocesstomakesystemimprovementsbasedonidentifiedneedsandbaseduponcarefulcost-benefitanalysis.Furthermore,SDG&E’sonlineapplicationportalrequirestheapplicationtobeassociatedwithanaccountnumberandameternumberfortheinterconnectionprocess.SDG&EisnotsurehowV2Gapplicantsaregoingtointerconnectiftheyarenotassociatedwithanaccountandmeternumber.Theapplicationportalwillnotallowapplicantstoproceedpastthefirststepintheonlineprocesswithoutanaccountnumberormeternumber.Step4includestheequipmentlistofapprovedinverters.5.Addautomatedpre-applicationreportoptiontoportals.Thiswouldallowapplicantstoapplyfor,payfor,andreceivepre-applicationreportsalmostinstantaneously.PG&E:Willingtoexplore,butnotcurrentlyworkingon.Pre-Applicationreportsdonotseemtohaveahighvolume,nordotheydirectlyimpacttheinterconnectionprocessperse.SCEiswillingtoreviewtheextenttowhichpre-applicationreportscanbeautomatedbutmakesnocommitmenttoinstituteautomatedPARsuntildeemedpossiblewithintheGIPTplatformsubjecttofinalreview,theoptionalenhancedPARcannotbeautomatedasitrequiresphysicalverificationofutilityinfrastructureSDG&Edoesnotcurrentlyhavesufficientvolumetoaddpre-applicationreportstotheDIISonlineportal.In2018,SDG&EreceivedatotalofelevenPARs,eightofwhichwereforfuelcellsandweresubmittedbythesamecompany.SDG&EonlyreceivedsixPARsin2017and17in2016.Theaverageprocessingtimefortheserequestsislessthanfivebusinessdays.Again,iftheneedarisesinthefuture,SDG&Ewillconsidermodifyingtheonlineportaltoincludetheoptiontorequestapre-applicationreport.However,duethelackofvolume,SDG&Edoesnotsupportadoptionofthissub-proposal,asitwouldimposeunnecessarycostandunwarrantedrequirements.6.Automatethe“deemedcomplete”processforstandardizedortemplate-basedsingle-linediagramprojectsPG&Eutilizesthe“BasicSLD”conceptforStandardNEM(Solar<30kW).WearecurrentlyengagedinapplyingasimilarprocessforStandardNEMPairedwithEnergyStoragesincethatvolumehasincreased.Tothegreatestextentpossible,PG&Esupports“smartapplicationforms”toreducepossibleapplicationdeficiencies.However,therearecomponentstoourapplicationprocessthatdorequiremanualreview(suchascustomersignatures).SCE:Totheextentpossible,SCEwillautomatetheIntakeprocesswhenconditionsaresatisfiedresultsin“DeemedComplete”.However,SCEinsiststhatengineeringinvolvementmustoccurwithverificationofSLDstodeterminesafeandreliableinterconnection.SCEbelievesthataSLDutility

templatecreatesduplicateeffortforinstallersastheauthorityhavingjurisdictionrequirescomprehensiveSLDstobesubmittedandapproved.SDG&Eisalreadydoingthis.SDG&Eutilizesthe“standardSLD”forNEM-STcustomerswithsystemsthatare30kWorlessthatdonotrequireadisconnectoraCT-ratedpanel.SDG&Ehasaveryhighpercentageofcontractorsthatutilizethisoption.SDG&EhasalsoimplementedaFastTrackprocessforthesesamecustomersinwhichthecontractorcanuploadapictureofthecustomer’sservicepanel,meter,andwarningplacardinlieuofafieldinspection.Approximately80percentoftheNEM-STapplicationssubmittedtoSDG&Eutilizethisfeature.7.OnlinesignatureoptionforallrequiredinterconnectionapplicationandrelatedsignaturessuchasGeneratorInterconnectionAgreements.PG&E:notcurrentlydoing,butwillingtoexplore.Ideally,thiswouldberestrictedtotemplate-basedformsthatdonotrequireahighlevelofsophisticationtoautomaticallyproducethecontract.ThisbecomesmoredifficultforcontractsthathavehighlevelsofvariabilitysuchasRule21ExportInterconnectionAgreementsthatspecificallystatethescopeofworkaswellasSpecialFacilitiesAgreements.Forcontractswithoutthoseitems,thiscouldbeexplored.SCEintendstoenableonlinesignaturesviaDocuSignwhichwillworkinconjunctionwithGIPT.ThisfunctionisexpectedtobephasedinasofQ42019.SDG&EacceptselectronicsignaturesforallapplicationsthroughtheDIISportal.ForNEM-STcustomerswithsystemsthatare1-MWorless,assoonastheapplicationissubmitted,thecustomerreceivesalinkviaemailtoelectronicallyaccepttheInterconnectionApplicationanditsTermsandConditions.CustomersarealsoabletoprintacopyofthecompletedapplicationandInterconnectionAgreement.Forconsumerprotection,thecontractorcannotexecutethedocumentonbehalfofacustomer.8.AddlinkinICAmapsthatallowsapplicanttojumpfromtheICAmaptotheonlineinterconnectionportal,location-specificinfoautomaticallypopulatedPG&E:Currentlyexploring,asstatedintheInterconnectionToolsprojectunderourGRC,butnotcurrentlyinflight.SCE:intendstolinkourICAsystemwithGIPTtoenablereviewofsiteandcircuitcapacitybasedonapointintime.ItisexpectedthatthisfunctionalitywillbeavailablebetweenQ42019andQ22020.SDG&E:OurICAmapsarenotintegratedwithourApplicationPortalatthistime,astheyonlywentliveinDecember.Furthermore,thevolumeofRule21applicationsthatwouldrelyonICAmapsisinsufficienttosupportthisfunctionality.In2018,basedonsystemsize,thenumberofRule21applicantsthatmighthavefiledanapplicationfromanICAmapwouldhavebeenlessthan0.1percent,assumingallwouldhaveutilizedtheICAmaps.SDG&Ebelievesthatthissub-proposalisneitherpracticalnorvaluable.ICAvaluesspanlinesegmentsuptoathousandfeetandacross

multipleaddressesorlandparcels.Bycontrast,theinterconnectionpointsarespecifictoalocation.Therefore,SDG&Ebelievesthatthissub-proposalisneitherfeasiblenorpractical.Suchfewapplicantswouldutilizethefunctionswithlittletonobenefitsinreturn.IfadoptedbytheCommission,thissub-proposalwouldrequiretimeandmoneysimplytoaddressthefeasibilityandthecostsassociatedwithimplementation.Furthermore,thevalueaddedtoboththeutilityandthecustomerwouldstillneedtobeevaluated.SDG&Edoesnotbelievethereisadirectvaluetomostcustomers,letalonetoratepayersasawhole.9.EliminatemanualdataentryasmuchaspossiblebyintegratingwithapplicantdatabasesorallowingbatchuploadsTeslawouldliketounderscorethatwethinkthisisanimportantitemasitwoulddramaticallystreamlinetheapplicationprocessandalsoserveasawaytosupportbatchprocessinginthefuturebyreducingthenumberoffieldsthatwouldneedtobeenteredorprovidedbytheapplicant.Teslahasprovidedamark-up(thesamemark-upreferencedinourcommentsabove)toflagthoseitemsintheapplicationthatwethinklendthemselvestoauto-populationoncetheutilitycustomerandapplicantdatabasesareintegrated.CALSSA:WorkingGroupparticipantsagreedthatreducingmanualdataentryisagoodgoal,butnotedthatthesub-proposalisnotspecificenoughtobeactionable.OnespecificimprovementthatwasdiscussedwasfortheportaltoautomaticallyfillincustomerinformationbasedonmeternumberorserviceIDnumber.ThisisespeciallytrueforNEMAapplications,whichcontainmanyrepetitivefieldsthatarepronetoerrors.PG&Ealreadyauto-populatescertaininformationforgeneratingaccounts,buttheydonotdothesameforbenefittingaccounts.CALSSA:UnderPG&E’sNEMAggregationsectionoftheonlineapplication,thereare14inputsofbasiccustomerinformationforeverymeterincludedonaNEMAarrangement.Iftheapplicantissubmittingalargeproject,therecouldeasilybe10+metersonanarrangement.That’s140inputsforanapplicanttofillout.Notonlyistheprocesstimeconsuming,butit’salsoduplicativeandpronetoerrors.ANEMAspreadsheetissubmittedwitheachapplicationwhichhasalloftherequestedinformationincludedonit.Allofthisinformationcouldbeauto-populatedbyPG&Efromtheirdatabasebyintegratingthedatabasetotheapplication.Theyalreadyauto-populatethisdataforthegeneratoraccount.PG&Ealsoalreadyhastheapplicationprogrammedtopulldataandverifyinputsasanapplicationisbeingfilledout(generatoraccountonly).Onthefirstpageoftheapplication,youhavetosubmittheserviceagreement(SA)IDandmeternumber.TheSAIDisuniquetotheservicepoint.Therefore,ifthosetwonumbersdonotcoincidetothecorrectservicepoint,PG&Edoesnotallowyoutocontinuewiththeapplication.Applyingautomationtothisportionoftheapplicationcouldreducethe14inputstooneortwoinputs.PG&E:Alreadydoing/done.Anyadditionaluserinputfromstakeholdersonitemsthatstillneedautomationwithintheapplicationisalwayswelcome.

SCE:DataentrywillbeautomatedtotheextentthatbothcustomeranddeveloperinformationarepresentandupdatedinSCE’sdatabase.6Dropdownmenuswillenableautofillofnumerousfieldsandrelateddata.However,incorrectdataenteredbythedeveloperand/orcustomerwillstilltriggeradeficiencyrequiringcorrection.SDG&E’slatestportalupgradepartiallyaddressedthissub-proposal.AftertheaccountandmeternumberisverifiedduringStep1intheapplicationprocess,thesystemautomaticallypopulatesallexistinggenerationonsitefromSDG&E’sdatabasetoeliminatemanualentry.SDG&Edoesnotalloweditstotheinterconnectionapplicationafteritissubmittedunlessthecustomeraskstohavetheapplicationreopenedforcorrectionsbysimplycallingorsendinganemailrequest.SDG&Eisveryresponsivetotheserequests,asstatedpreviously.SDG&Eneedstoknowwhentoprocessanapplication.Lockingtheapplicationtodisalloweditsensuresthattheapplicationisreadyforreview.SDG&Edoesnotcurrentlyallowbatchuploads,astherehasnotbeenarequestintheservicearea.Theaveragetimeittakesaself-installer(e.g.someonenotfamiliarwiththeDIISportal)tosubmitanapplicationislessthantenminutes.Therefore,SDG&Edoesnotseeaneedorjustificationforaninvestmentinportalupgradestoallowbatchuploadsinordertobenefitthefewcompaniesthatwouldutilizetheservice.10.Eliminaterequirementtoprovideexistingsysteminfowhenapplyingforadditionalinterconnectioncapacity(eithersolarorstorage).PG&E:DoneforallbutRule21Exportprojects(sincetheyuseadifferentapplicationportalatthistime).SCE:ExistingsystemmustalwaysbeverifiedincasethecustomerorpredecessorhasmodifiedtheexistingsystemwithoutnotifyingSCEpriortodoingso.SCEengineeringapprovalreliesonaccurateandverifiedsysteminformation.ThisisalsonotanIT/portalissue,butanissuerelatedtoRule21interconnectionprocessrequirements.SDG&E’slatestportalupgradeaddressedthissub-proposal.AftertheaccountandmeternumbersareverifiedduringStep1intheapplicationprocess,thesystemwillautomaticallypopulateallexistinggenerationonsitefromtheSDG&Edatabasetoeliminatemanualentry.11.Automateddatavalidationcheckwhensubmittingapplication.

TeslabelievesthatwhileSDG&E’sportalhassomedatavalidationcapabilities,thereisalotmorethatcouldbedone.Atthistime,theSDG&Eportalvalidatesthattheaccountandmeternumbermatch,butleavesopenthepossibilityofanapplicantsubmittingtheapplicationundertheincorrectnameontheUB.Higherlevelsofsophisticationarounddatavalidationarepresentonotherportals–forexampleauto-populatingrelevantcustomerinformationbasedontheaccount/meternumber.IncontrastSDG&Erequiresmanualentryforthisdata.Wedon’tmentionthistopickonSDG&E–

6Functionsasthisoneandotherswillincludecustomerauthenticationprocessesasdiscussedwithinstakeholdercalls.

wecommendtheutilityforincorporatingsomedatavalidationcapabilitiesintotheirsystem,butrathertohighlighttheneedtohaveamorerigorousunderstandingoftheextentoftheutilitieseffortsforeachofthesub-proposalsunderdiscussionandtoidentifyopportunitiesforadditionalimprovements.

PG&E:LinkedtoItem10.Pre-populationispreferredtovalidationwherepossible.Wherenotpossible,thespecificfieldsinquestionwouldhavetobedefinedbeforePG&Ecouldcommentoneachofthem.SCEisincorporatingthisfunctionintoitsplatformtothedegreethatitistechnicallypossible.Thismeansautomatedanalysismaybeavailableforsomefields,butmaynotbepossibleforallfieldsrequiringvalidation.However,totheextentassociateddataresidesinSCE’sdatabase,orifsimplecalculationscanbegenerated,thenvalidationwillexceedwhatisavailableonSCE’spresentPCI-basedportal.SDG&E:InStep1oftheapplicationprocess,theportalverifiestheactivestatusoftheaccountandthattheaccountandmeternumbersmatch.Thesystemwillflagan“error”inthesefieldstolettheapplicantknowthatthenumbersdonotmatch.ThesystemwillnotmovetoStep2untilthisiscorrect.12.Notification-onlyprocessforstandardresidentialinterconnections(certainconfigurationsofpre-defined“standard”residentialsystemsunderacertainsize).PG&E:Generatorsshouldnotoperateuntilgivenexpresspermissionfromtheutility.SCE:ThisisaprocessquestionandnotspecifictotheIT/portalfunction.ThismatterwasalsoaddressedinWorkingGroupTwoIssue11.SDG&E:Thisisanissuethatshouldbeaddressedinamoretechnicalforumandnottreatedassimplyaportalimprovement.SDG&Eopposesthissub-proposalanddoesnotallownotificationonly.SDG&Ehasanactiveprocessfordetectingandmonitoringcontractorsandcustomerswhohavereversepowerflowfromunauthorized,unpermittedsystems.SDG&Eviewsnotification-onlyasthesamelevelofgeneralpublicandutilityworkersafetyhazardasreversepowerflowfromsuchunauthorizedsystems.Toprotectworksandthepublic,SDG&Edigitizesitsgeographicinformationsystems(GIS)mapsdailytothetransformerleveloftheprojectsthatwereapprovedthatday.In2018,SDG&Eapprovedover24,000customers,withanaverageprocessingandapprovaltimefortheentireyearof2.5calendardays.Ifcustomersarealreadycircumventinga2.5-dayprocess,SDG&Ehasnotconfidencethatanotification-onlyprocesswillofferenoughbenefittojustifytheriskofpublicandutilityworkersafety.SDG&E’sinterconnectionportalgeneratesautomaticemailsthataresenttoboththecustomerandthecontractorthroughallstepsoftheapplicationprocesssothattheyknowimmediatelywhenthestatushaschanged.SDG&Ereceivesmultipleapplicationsfromdifferentcontractorsforthesameaddress.Customersroutinelycallandcomplainthattheydecidedtohirea

differentcontractoranddidnotauthorizeaparticularcontractortosubmitanapplicationontheirbehalf.SDG&Emusthaveaninterconnectionprocessthatensuresthatitcanvalidatetherequests.13.Removecustomerinteractionrequirementsinfavorofcustomernotificationsonly.CustomerisnotrequiredtosignanydocumentsorbeinvolvedPG&E:Thecustomeriswhomtheinterconnectionprocessisforandtheonewhoexecutestheinterconnectionagreement.Therefore,thiscannotandshouldnotbedone.SCEmustverifythatanymodificationtocustomer’sfacilitywithrespecttoelectricalloadorgenerationissanctionedbythecustomer.Therefore,thisisnotaconsiderationforeitherRule21processorIT/portal.SDG&Emustinteractwithcustomersandopposescustomernotificationsonly.SDG&EroutinelyreceivedemailsandphonecallsfromcustomersoncetheyreceiveanautomaticnotificationfromtheDIISportalthatanapplicationwassubmittedontheirbehalfthattheyneverauthorized,oftenbecausetheyswitchedcontractorsandthepreviouscontractorhadprematurelysubmittedanapplication.SDG&Efindsthiscommonamongcontractorsandreceivesduplicateapplicationsfrommultiplecontractorsforthesamecustomer.TheDIISportalrequiresthecontractortolistthecustomeremailaddressandonlythecustomercanaccepttheInterconnectionAgreementandTermsandConditions.Thecustomerandcontractorarebothcopiedonallcorrespondencethroughouttheentireprocess,whichprotectsthecustomerandensuresthatSDG&Eisprocessingthecorrectandauthorizedapplication.14.Createone-clickAuthorityHavingJurisdiction(AHJ)approvalprocess,possiblyapp-basedorweb-based.PG&E:notcurrentlyinscope.SCE:Thiscapabilityisnotinscopeatthistimeandnotconsideredundercurrentfundingassumptions.Furthermore,thereisnoguaranteeconsideringthenumerouscity/countyjurisdictionsSCEservesthatallAHJ’swouldagreetoutilizethecapability,thusmakingtheapplicationinconsistentandnotcosteffective.Inparticular,unlikeotherIOUserviceterritories(ex:SanDiegoismainlycomposedoftheCityofSanDiego),SCE’sserviceterritoryiscomposedofnumerouscities).SDG&EdevelopedandlaunchedanapplicationinJuly2017thattiesdirectlyintotheDIISinterconnectionportalsothattheAHJscanreleaseallgenerationtypeswithoneclickbyphone,tablet,ordesktop.In2017,SDG&Ereceivedover4,800electricalreleaseswiththenewprocess,validatingtheneedandutilityforcustomersandAHJs.In2018,SDG&Ereceivedover23,000electricalreleases,showingsubstantialutilizationwiththeserviceterritory.SDG&Ehasproactivelymetwithover30AHJsintheterritorytoshowthebenefitsofusingtheprocessbyexpeditingthereleaseprocess,enhancingthecustomerexperience,andeliminatingthepotentialerrorsinmanualdataentry.

15.Allowapplicantstoaccessupdatedprojectstatusatanytime,makeeditsatanytime,addsearchandfilterfunctionsbasedoncontractor,customer,etc.PG&E:ProjectStatusisdoneforACE-ITapplications(definedasNon-StandardNEMandNon–Rule21Export)atthistime.WedonothavethecapabilitytoalloweditsorresolvedeficienciesfortheseprojectsthroughtheACE-ITportalatthistime,butareexploringtheoption.StandardNEMdoeshavethecapabilitytouploadcorrectionsfordeficienciesthroughtheportalbutcannotviewprojectstatus.Rule21Exportprojectshaveneitherfunctionalityatthistime.SCE:ItisexpectedthatprojectstatusupdateswillbebuiltintoGIPTwithinPhase1ofplatformdevelopment(Q42019).Customersmaymakeeditsprovidedthattheagreementhasnotbeenexecuted.Thesystemwillbeenabledwithsearchandsortfunctionslimitedtoprojectsunderthecustomer’scontrol.SDG&E’sonlineDIISportalallowsboththeapplicantandcontractortoaccesstheprojectstatusatanytime.Infact,theycanaccessandviewallapplicationsthattheyhavesubmittedandcanincludeasmanycontactsfortheircompanynotificationsastheywouldlike.Theycanupdatethislistatanytimewithintheirownportalpage.Theyhavetheabilitytoviewourportalviaanyportabledevicesuchassmartphone,tablets,laptops,ordesktop.Oncetheapplicationissubmittedtotheutilityitislockedforeditstosignalthattheapplicationisreadyforreview;however,thecontractorcanrequestatanytimeitbeopenedtomakeadditionaleditsorcorrectionswithouthavingtheapplicationcancelledandhavingtoresubmit.16.Onlinepaymentsforallpayments,includingstandardpaymentssuchasNGOMsforresidentialstoragesystemsormetersocketadaptersPG&E:Onlinepaymentfor$145wherethesystemcanconfirmthatitisrequiredisdone.Forotherpayments,notcurrentlyinscope,butmentionedasapotentialiteminour2020GRC.Itwouldhavetoexploredwiththeonlinepaymentvendorshowcontractswouldchangeandwhatdollarlimitsthereareonprocessingpaymentssubmittedonline.SCE:OnlinepaymentwillbeincludedinGIPTPhase1withanexpectedphaseindateofQ42019(subjecttofinalconfirmation).SDG&EdoesallowonlinepaymentsinwithintheDIISportalviaPayPalorBraintreeforNEM-STapplicationsandtheRenewableMeterAdapterfee.SDG&EdoesnothavestandardpaymentsforNGOMsasthereisnostandardcost;thecostvariesbasedonthevoltage,metertype,andifwiringisrequired.SDG&Edoesnotcurrentlyhavethevolumetojustifythecostsforthenon-NEMRule21customersover1MW.Iftheneeddevelops,SDG&Ecanassesssuchanimprovementandevaluatewhetherthecostisjustified.

17.AllowcontractorstogenerateformsforstandardagreementslikeIFFOA,NGOM,etc.PG&E:Dependsonthecomplexityoftheform.Formsareavailablefordownloadfromwww.pge.com/tariffsandcanbefilledoutasneededbyapplicants.SCE:Itisnotclearifthisquestionpertainstoblankformsorfilledforms.However,allformsgeneratedthroughGIPTwillbeavailableforprintbutwillonlybefillableandapprovablethroughtheGIPTportal.SDG&E:NGOMformsarestandardizedforSDG&ERenewableMeteradapter,asitisasetfee.TheotherNGOMformsarenotstandardizedforthesamereasonastheonlinepayment.Thecostsvarydependingonthemetertype,voltage,andwiringrequirements.18.Haveonestate-wideportalforconsistency.OR,consistencyinprojectstatusnames,visibilityutilityvs.installer’shands,andduedatetrackingTeslawouldliketobeclearthatwhilewewouldnotbeopposedtohavingonestatewideportal,wearenotadvocatingforthat.Teslaisoftheviewthatconsistencyintermsoffunctionality/capabilitiesistheobjective,notthattheexactsameinterfaceorsystembeusedacrossallthreeIOUs.SmallBusinessUtilityAdvocates(SBUA)recommendsthattheCommissionorderasingleinterconnectionapplicationportaltobeusedforallapplicationsunderRule21.Forthispurpose,theCommissionshouldmaintainthisportal.HavingasingleportalforallapplicationswouldgivetheCommissionandthecustomers/developersbettervisibilityastothestatusoftheapplications.PG&Eiswillingtoexplorenamingconventionsandterminologytoalignapplicationmaterialtominimizeanyconfusion.SCE:PleasereferenceSCEresponsetosub-proposal#3.SDG&Edoesnotseeaneedforonestatewideportal.Theutilitieshaveeachincurredsignificantcostsinimplementingtheirrespectiveportals,andbothcustomersanddevelopershavebecomefamiliarwiththoseportals.SDG&Edoesnotbelievethatthiswouldbeprudentinvestmentorfairtoratepayersgiventhesunkcostofexistinginvestmentsintheexistingportals.Thissub-proposalmayaddconveniencetolargecompaniesthatprocessapplicationsthroughoutthestate,buttheimplementationcostswouldbesocializedandnotfairtonon-participatingratepayerswithinSDG&E’sserviceterritory.Suchauniformportalisnotaneedandshouldnotbeadopted.Equityisakeyprincipletojustandreasonablerates.SDG&Edoesnotsupportthissub-proposalandtheadditionalinvestmentitentails.

Issue23ShouldtheCommissionconsiderissuesrelatedtotheinterconnectionofelectricvehiclesandrelatedcharginginfrastructureanddevicesand,ifso,how?PROPOSALSUMMARIESProposal23-a.ConsensusRecognizethatinthecaseofunidirectionalcharge-onlyV1Gwithnodischargecapability,Rule21doesnotapply.V1GmustcomplywithRules2,15,and16.Proposal23-b.ConsensusModifyRule21SectionB.4toclarifythatRule21appliestotheinterconnectionofbothstationaryandmobileenergystoragesystems,withlanguageasfollows:

“ForretailcustomersinterconnectingstationaryormobileenergystoragedevicespursuanttothisRule,theloadaspectsofthestoragedeviceswillbetreatedpursuanttoRules2,3,15,and16justlikeotherload,usingtheincrementalnetloadfornon-residentialcustomers,ifany,ofthestoragedevices.”

Proposal23-c.ConsensusRecognizethatV2G-DC/EVSEsystems(ElectricVehicleSupplyEquipmentwithstationaryinverterforDCchargingofvehicles)maybeinterconnectedunderthecurrentRule21language,withnoRule21languagechangesoradditionalauthorizationneeded,providedthattheEVSEmeetsallRule21requirements,includingUL1741SAandotherupdatedsmartinverterstandards.Proposal23-d.ConsensusAllowV2G-DC/EVSEsystems(stationaryinverterforDCchargingofvehicles)toconnectasV1G,load-only,andoperateinunidirectional(charge-only)modeuponsatisfyingpre-definedcriteria.ThesecriteriaincludeULPowerControlSystemsCRD(ULCRD)andUL1741SAcertificationtesting,whichwilldemonstratethat:(1)theEVwillnotdischargeiftheEVSEissettounidirectionalmode;(2)theEVSEwillnotinadvertentlychangetobidirectionalmode;and(3)thatfactorydefaultsettingsaresettounidirectionalmode.Further,requirethattheoperationalmodecannotbechangedwithoututilityauthorization.Proposal23-e.ConsensusAllowbidirectionalmodetobeenabledforaV2G-DC/EVSE(stationaryinverter)systemonlyuponreceivingPermissiontoOperate(PTO)fromtheutility.WhenV2G-DC/EVSEownerswishtoswitchtobidirectionalmode,theymustfirstcompletetheRule21interconnectprocessandreceivePTOfromtheutility.IfPTOhasbeenreceived,themanufacturerorapprovedthird-partyinstallercanthenprogram/enablebidirectionaloperation.

Proposal23-f.Non-consensusModifyinterconnectionportalstoenablesimpletrackingofV2Ginterconnections,suchasbyaddingnewEVSEinvertertypesindrop-downmenusorflagginginterconnectionsasV2G.(ThisitemisalsocoveredinIssue22.)

Supportedby: CESA,CleanCoalition,eMotorWerks,Fiat-Chrysler,GPI,Honda,Nuvve,PG&E,SCE(conditional;seeDiscussionsection)

Opposedby: SDG&EProposal23-g.Non-consensusEstablishasub-groupinvitingstakeholdersfromtheSmartInverterWorkingGroupandSAE,amongothers,todeveloptechnicalrecommendationstoenableV2G-AC(mobileinverter)interconnections.Thissub-groupwouldbeledbyastakeholderincoordinationwiththeCPUCEnergyDivisionandincollaborationwithoneormoreutilities,andwouldprovideaCPUCrecommendationontechnicalrequirementsfortheimplementationofV2G-ACinterconnections.RecommendationstotheCPUCfromthissub-groupwouldbeprovidedsixmonthsaftertheissuanceoftheWorkingGroupThreeFinalReportifconsensuscanbereached,orsixmonthsafteraCPUCdecisionontheWorkingGroupThreeFinalReportifpartiesareinanon-consensusposition.

Supportedby: CESA,CleanCoalition,eMotorWerks,Fiat-Chrysler,GPI,Honda,Nuvve,SCEOpposedby: PG&E,SDG&E

Proposal23-h.Non-consensusModifySectionNtoallowstreamlinedstudyprocessforV2G-DC(stationaryinverter)EVSEinterconnections.

Supportedby:CESA,CleanCoalition,eMotorWerks,Fiat-Chrysler,GPI,Honda,Nuvve,SDG&E(partial;seeDiscussionsection)

Opposedby: PG&E,SCEProposal23-i.Non-consensusClarifyapathwayforpartiestointerconnectV2G-AC(mobileinverter)systemsonatimelybasisforexperimental,pilot,and/ortemporaryuseuntiltheappropriaterulesareupdatedinthefuture.

Supportedby: CEC,CESA,eMotorWerks,EPRI,Fiat-Chrysler,Ford,GPI,Honda,KituSystems,Nuvve

Opposedby: PG&E,SCE,SDG&E

BACKGROUNDCaliforniahasagoalof5millionzero-emissionvehicles(ZEVs)by2030,alongwith250,000electric-vehiclechargingstationsby2025.Giventhesegoals,ZEVdeploymentandbuildoutofelectricvehicle(EV)charginginfrastructureareimportanttopicsforRule21interconnectiontoaddress,includingtheroleofEVsandElectricVehicleSupplyEquipment(EVSEs,alsoknownasEVchargingstations,electricrechargingpointsorjustchargingpoints)insupportingthegridas‘storage-like’resources.TheCaliforniaIndependentSystemOperator(CAISO),CaliforniaPublicUtilitiesCommission(CPUC),andCaliforniaEnergyCommission(CEC)jointlypublishedtheVehicle-GridIntegration(VGI)Roadmapin2014andtheCPUCopenedanAlternativeFuelVehicles(AFV)rulemaking(R.13-11-007)todefinetheVGIusecasesanddefinethebarriersandactivitiesneededtoachievethevisionoftheroadmap.7Sincethen,significanteffortsinCaliforniahavebeenunderwaytoincreaseinvestmentstofurtherdeploymentofEVsandEVSEs,andtodeveloptime-of-use(TOU)ratestoencourageoff-peakcharging.ThepotentialforEVsandEVSEstobeactivatedforgridserviceshasbeenrecognizedmostrecentlyinCalifornia’ssystem-widemodelingeffortsintheIntegratedResourcePlan(IRP)proceeding(R.16-02-007),whichfoundthat“flexibleEVcharging”couldreducetheamountofrenewablegenerationandenergystorageselectedtomeet2030greenhouse-gasplanningtargets.8Moreofthefocustodatehasbeenonthepotentialtomobilizetheone-waymanagedor“smart”charging(V1G)capabilitiesofEVSEs,boththroughdirect(e.g.demandresponse)andindirect(e.g.rates)mechanisms.WhileV1Gcanhelpmanagecustomerbillsandprovideloadresponse,theremaybeinstanceswherebidirectionalEVcapabilitiesmaybeabletoprovideadditionalcustomerandgridservices,especiallyathigherlevelsofEVpenetration.V2Gtechnologiesrepresentanopportunitytotakeadvantageofthe‘storage-like’systemsintegratedinEVs,plug-inhybridelectricvehicles(PHEVs),andEVSEstosupportanumberofuse-casesforeffectivevehicle-gridintegration.Forthepurposesofthisreport,V2Gisdefinedtoencompassarangeofuse-cases,technologies,means,andsolutionsthatinvolvetwo-wayelectricityflowbetweentheEV/EVSEandthegrid.StudieshaveshownthatV2Ghasthebidirectionalcapabilitytoprovideloadshifting,regulationservices,andoperatingreserves.9ThecapabilityofV2GtoexportenergyfromtheEVbattery,throughtheEVSE,toonsiteloadortothegridpresentsnewopportunitieswithpotentialvalue.Manypossiblefutureusecasesareunderdiscussionand/orpiloting,andmayincludethecapabilitytomanageelectricitydemandandcustomerbills,participateintheenergyandancillaryservicesmarketsattheCAISOthroughmechanismssuchasdemandresponse,orprovidedistributiongrid

7CaliforniaVehicle-GridIntegration(VGI)Roadmap:Enablingvehicle-basedgridservices,publishedinFebruary2014.http://www.caiso.com/documents/vehicle-gridintegrationroadmap.pdf8AttachmentA:ProposedReferenceSystemPlan,publishedonSeptember18,2017,p.139.http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M195/K910/195910807.PDF9Steward,Darlene.CriticalElementsofVehicle-to-GridEconomics,NationalRenewableEnergyLaboratory,publishedinSeptember2017.https://www.nrel.gov/docs/fy17osti/69017.pdf

servicestotheutility(e.g.,distributiondeferral,voltagesupport).ProponentsarguethatsuchfutureV2Gusecases,evenifstillunproven,mayhavethepotentialtoenhancethenet-benefitofEVsandthusacceleratetheiradoption,particularlyamongcertainEVcustomerclasses.V2Gsystemsfallintotwocategories:(1)thosethatutilizebidirectionalinverterswithintheEVSE(“V2G-DC”);10and(2)thosethatutilizebidirectionalonboardinverterswithintheEV(“V2G-AC”).Foreachcategory,theremaybetradeoffsintermsofoverallcost,pathtocertification,andbest-fitusecases.Ineithercase,theV2Gsystemsneedtobesafeandreliableastheyinterconnecttothegrid.Belowisanadditionalillustrationofthedifferenceofthetwocategories,aspresentedbyNuvveduringWorkingGroupdiscussions.

Currently,thereareanumberofpilotsoperatingaroundtheUnitedStatesandinCaliforniathataimtodemonstratetheviabilityofV2Gusecases.ThefirstV2GsystemdemonstrationwaslaunchedbytheUniversityofDelawareandNRGincollaborationwithautomotiveOEMs,HondaandBMW.InCalifornia,automotiveOEMsHondaandNissanareworkingwithNuvve,asoftwareaggregator,intheElectricVehicleStorageAcceleratorandtheINVENTprojecttotestdifferentusecasesofV2GtechnologiesattheUniversityofCaliforniaSanDiegocampus.Specificusecasesbeingtestedincludewholesalemarketparticipation,demandchargemanagement,frequencyregulation,solarPV

10ThefirstbidirectionalDCEVSEreceivedPermissiontoOperate(PTO)fromatLAAirForceBase.ThenextonewasinSDG&EterritoryonApril24,2018.

optimization,andbackuppower.AttheLosAngelesAirForceBase,Kisensum,andLawrenceBerkeleyNationalLaboratory,usingPrincetonPowerEVSEs,workedwithSouthernCaliforniaEdisontodemonstrateV2GcapabilitiestobidenergyandancillaryservicesdirectlyintotheCAISO’swholesalemarketsandtoevaluatetherevenuepotentialofhavingV2Gresourcesparticipateasdemandresponse.1112Progressisbeingmadeineachofthesepilotsandthetechnologyismaturing,butatthemoment,theremaybeissuesandbarriers,includingthoserelatedtothetechnicalcomponentsofV2G-ACsystemsandinterconnectiontechnicalrequirements,thatlimitpotentialmarketopportunitiesforV2Gsystems.V2GsystemshaveRule21interconnectionimplicationsinspecificusecases,bothasindividualunitsandasanaggregatedresource.Furthermore,whileutilitiessupportthedevelopmentofV2Gthroughpilotssuchasthese,utilitiesalsoemphasizethatitiscriticalnottoviolatesafetyandreliabilityrequirementsthatpreventhazardousevents,suchasthepossibilityofback-feedingpowertotheutilityduringagridoutage.Somepilotshaveencounteredinterconnectionchallengeswhenattemptingtotestnewconfigurationsandusecases.Thetechnicalrequirementsforinterconnection,asspecifiedinRule21,remainsachallengeforV2G-ACsystemsaffectingmarketaccessforV2Gdeployments,andmayinfluenceinvestmentinV2G-ACproductionmodels.DistributionSystemOperatorsareunabletoapproveinterconnectionrequestsforV2G-ACsystemsduetothedifficultiesofV2Gsystemsinmeetingthetechnicalrequirementsforinterconnectionthatensuresafetyandreliability,andexistinginterconnectionstandardsandproceduresdonotprovideaclearpathwayforapprovalofmobileinvertersonboardtheEV.Establishingstandardizedrequirementsandproceduresthataremutuallyagreeabletoallparties,includingtheautomotiveandutilityplayers,isessentialforthisindustrytomoveforwardandtoensurethatinterconnectioncontinuestoaccommodateprogressonmarketaccess,businessmodeltestinganddevelopment,andtheregulatorycertaintyautomanufacturersneedtoinvestinV2Gproductionmodels.IncommentstotheinitialIssue23proposalbyproponentsCESA,Nuvve,andHonda,PG&EemphasizedtheneedtocoordinatetheworkandoutcomesonIssue23withotherstate-agency-ledinitiativesaddressingVGI,includingbutnotlimitedtotheCEC-ledVGIRoadmapUpdateandtheCPUC’sTransportationElectrification(DRIVE)Rulemaking(R.18-12-006).Likewise,PG&EalsocommentedontheneedtoensurealignmentbetweenEVVGIsolutionswithotherinverter-basedDERs–i.e.,findingsandproposalsonIssue23shouldbecoordinatedwiththeIOUs’strategicapproachtosmartinverters.13CESAagreesandnotesthattheCPUCandCECstafffortherespectiveandrelatedproceedingshavebeeninvolvedintheWorkingGroupdiscussions.Duplicativeorconflictingstrategiesandpoliciesshouldbeavoidedasmuchaspossible.11SouthernCaliforniaEdisonCompany’sDepartmentofDefenseVehicle-to-GridFinalReport,submittedonDecember22,2017.www.cpuc.ca.gov/WorkArea/DownloadAsset.aspx?id=644245579312Black,Douglas,etal.,LawrenceBerkeleyNationalLaboratory.2017.LosAngelesAirForceBaseVehicle-to-GridDemonstration.CaliforniaEnergyCommission.PublicationNumber:CEC-500-2018-025.https://www.energy.ca.gov/2018publications/CEC-500-2018-025/CEC-500-2018-025.pdf13EnablingSmartInvertersforDistributionGridServices,JointIOUWhitePaperpublishedonOctober2018.https://www.pge.com/pge_global/common/pdfs/about-pge/environment/what-we-are-doing/electric-program-investment-charge/Joint-IOU-SI-White-Paper.pdf

ISSUESCOPETofulfilltheirprimarymobilityobjective,EVbatteriesandEVSEsarenormallytreatedasend-useloadsthatareconnectedtothegridthroughserviceconnections,andthusarenotsubjecttoRule21interconnectionreview.SuchbasicEVchargingloadshouldcontinuetobetreatedasend-useloads.Inaddition,modulatedandV1G“smartcharging”alsoshouldnotbesubjecttoRule21interconnectionreview,andshouldmaintainserviceconnectionasameanstoconnectthisend-useloadtothegrid.Likeotherdemandresponseandgrid-responsiveloads,Rule21interconnectionreviewisnotapplicableto,andshouldnotberequiredforV1G.ElectrifiedvehiclesorEVSEswithV1Gcapabilitiescanadjusttheirchargingprofilebymodulatingthepowerdrawfromthegridinresponse,directlyorindirectly,toagivenscheduleorasignal.TheEVSEandEVbatteriescanactasdemand-responsiveloadssimilartoothergrid-responsiveloads,suchasair-conditioningunitsandsmartthermostats,whichdonotrequireRule21interconnectionreview.ThisismadeclearinSectionB.1oftheRule21tariffwhereinterconnectiononlyappliestogeneratingfacilities,whichdonotencompassload-sidefacilities:

“ThisRuledescribestheInterconnection,operatingandMeteringrequirementsforthoseGeneratingFacilitiestobeconnectedtoDistributionProvider’sDistributionSystemandTransmissionSystemoverwhichtheCaliforniaPublicUtilitiesCommission(Commission)hasjurisdiction.”[emphasisadded]

However,V2GsystemsdifferfromV1GsystemsinthattheEVbatterycandischargeasabehind-the-meter(BTM)energystorageresource,servingACloads,either(1)toreducecustomerACloadasnon-exportenergystoragesystem(“V2GNon-Export”)orto(2)exportacrossthepointofcommoncoupling[PCC](“V2GExport”).SincebidirectionalinverterscanbeintegratedineithertheEVSE(stationaryinverter)ortheEVitself(mobileinverter),Rule21jurisdictionappliestoV2Gsystemsineitherstationaryormobilesituation,becausethesystemcannowfunctionasageneratingfacility(seeSectionB.1below):

“ThisRuledescribestheInterconnection,operatingandMeteringrequirementsforthoseGeneratingFacilitiestobeconnectedtoDistributionProvider’sDistributionSystemandTransmissionSystemoverwhichtheCaliforniaPublicUtilitiesCommission(Commission)hasjurisdiction.AllGeneratingFacilitiesseekingInterconnectionwithDistributionProvider’sTransmissionSystemshallapplytotheCaliforniaIndependentSystemOperator(CAISO)forInterconnectionandbesubjecttoCAISOTariffexceptfor1)NetEnergyMeteringGeneratingFacilitiesand2)GeneratingFacilitiesthatdonotexporttothegridorsellanyexportssenttothegrid(Non-ExportGeneratingFacilities).NEMGeneratingFacilitiesandNon-ExportGeneratingFacilitiessubjecttoCommissionjurisdictionshallinterconnectunderthisRuleregardlessofwhethertheyinterconnecttoDistributionProvider’sDistributionorTransmissionSystem.SubjecttotherequirementsofthisRule,DistributionProviderwillallowtheInterconnectionofGeneratingFacilitieswithitsDistributionorTransmissionSystem.”[emphasisadded]

WhilebasicEVchargingloadandV1GsystemsarenotRule21applicable,proponentCESAbelievesthatV2GsystemsareallRule21applicable.InTable1,CESAprovidesamoredetailedcategorization

ofV2Gconfigurations,whichdistinguishesbetweenthebidirectionalinverterinstalledwithintheEV(mobileinverter)orwithintheEVSE(stationaryinverter),andalsodistinguishesbetweenNon-ExportandExport.Table1:CategorizationofV2GConfigurationsbyCESAConfiguration DoesRule

21apply?Details

BasicEVChargingLoad No SomeEVownersdonotengageinsmartchargingprogramsandmaysimplyvoluntarilyrespondtowhateverratetheytakeserviceunder.

V1GEVSE+EV No V1GsystemsarestrictlyloadandaresubjecttoRules15/16,whichreviewsloadthresholdstotriggerdistributionupgradesbutotherwiseareserviceconnectionswithoutstudyprocesses.14TheyshouldnotbesubjecttogeneratorstudiesunderRule21,similartotraditionalDRservices,evenasload-responsiveservicescanbeprovided.

V2GNon-ExportEVSE(“V2G-DC”)

Yes Inthiscase,theEVSEisintegratedwithabidirectionalinverterandtheDCEVbatteryservesastheloadandGenerator,similartomostBTMenergystoragesystems.The“Non-ExportGeneratingFacilities”provisionswithinRule21shouldapply.Similarly,theload-sidestudymayinvolveRules2,3,15,and16.

V2GNon-ExportEV(“V2G-AC”)

Yes Inthiscase,theEVisintegratedwithanonboardbidirectionalinverteralongsidetheEVbattery,servingastheloadandGenerator,similartoBTMenergystoragewithintegratedinverterswithinthesamemodule.The“Non-ExportGeneratingFacilities”provisionswithinRule21shouldapply,onlyifthesefunctionsareutilizedorenabled.Similarly,theload-sidestudymayinvolveRules2,3,15,and16.

V2GExportEVSE(“V2G-DC”)

Depends WDATmayapplywhenexportingtotheCAISOgrid,whileRule21mayapplywhenexportingandsellingtothedistributionutility,suchasdistributioncapacityfordeferralpurposes.

V2GExportEV(“V2G-AC”)

Depends WDATmayapplywhenexportingtotheCAISOgrid,whileRule21mayapplywhenexportingandsellingtothedistributionutility,suchasdistributioncapacityfordeferralpurposes.

14CESArecognizesthattheexemptiontoRule15andRule16maynotberenewedpastitscurrentexpirationdateofJune30,2019.

ForallV2GconfigurationsinTable1,Rule21interconnectionreviewisrequiredtosupporttheinterconnectionofanyGeneratingFacilityandutility-interactiveinverter,butthecurrentRule21doesnotincludelanguageforinterconnectionconsiderationsexplicitlyforinvertersformobileenergyresources.Currently,interconnectionrequestsformobileenergyresourceswouldbehandledinthesamemannerasanyotherinterconnectionrequest.InterconnectionofV2Gsystemshavebeendoneonacase-by-casebasistodate.15ThepotentialneedformodificationstoRule21tosetastandardizedinterconnectionreviewprocessspecificallyforV2Gsystemsisbeingdiscussedamongindustrystakeholders.Customerexperienceineachofthesescenariosmayalsobearconsideration.OverthecourseofmultiplemeetingsonIssue23,WorkingGroupparticipantsfocusedonV2GNon-ExportandExportEVSE(stationaryinverter,V2G-DC)configurations,anddeferredconsiderationofV2GNon-ExportandExportEV(mobileinverter,V2G-AC)configurationstoalatertime.ForseveralpotentialV2Gusecases,theWorkingGroupconsideredapplicablecodesandstandardsaswell.TheseincludeinterconnectionrequirementsIEEE1547(StandardforInterconnectionandInteroperabilityofDistributedEnergyResourceswithAssociatedElectricPowerSystemsInterfaces),productcertificationstandardUL1741(StandardforInverters,Converters,ControllersandInterconnectionSystemEquipmentforUsewithDistributedEnergyResources),andSocietyofAutomotiveEngineers(SAE)J-3072(InterconnectionRequirementsforOnboard,Utility-InteractiveInverterSystems).Inaddition,therearetestingstandardsIEEE1547.1(DraftStandardforConformanceTestProceduresforEquipmentInterconnectingDistributedEnergyResourceswithElectricPowerSystemsandAssociatedInterfaces)andUL1741SupplementA(UL1741SA).ThesestandardsarelinkedorbecominglinkedinrelationtoRule21andV2G.AnewSectionHhonsmartinvertercertificationandrequirementshasbeenaddedtoRule21toincorporatetheUL1741SAstandardforallinverter-basedgeneration.Andpursuanttothe2018CPUCResolutionE-4898,Rule21SectionHhmustbeharmonizedwithIEEE1547inthefuture.Forbidirectionalmobile(onboard)invertersusedinV2G-ACapplications,theSAEJ-3072standardwasdevelopedtotakeintoaccountthe2003versionofIEEE1547(IEEE1547-2003),buthasnotbeenupdatedtoaccountfortherequirementsinthemostcurrentversionofIEEE1547(IEEE1547-2018).Further,SAEJ-3072hasnotyetfullytakenintoaccounttherequirementsofcurrentRule21andUL1741,whichisthestandardforsafeinverterinterconnectionstothedistributiongrid.SomediscussiontookplaceintheWorkingGrouponhowmuchSAEstandardsalignwith(and/orhavegapscomparedto)IEEE1547andUL1741,includingsomepreliminaryworkinitiatedbySCEandSAEonhowSAEmayalignwithIEEE1547standards.ThesediscussionsandworkresultedinProposal23-gtoestablishatechnicalsub-groupcomprisedofutilityandindustrystakeholderstoinvestigatethetestingandcertificationrequirementsforV2G-ACsystemsthatwouldsatisfysafetyandreliabilityrequirementsforon-board(mobile)invertersusedinV2G-ACconfigurations.

15AmunicipalutilityinDelawareisaprecedentforconsiderationinthisWorkingGroup.

IntheparticularcaseofV2Gapproachesforcommercialvehiclefleets,theWorkingGroupflaggedbutdidnotdiscusstheissueofhowsub-meteredEVsandEVSEscanaddressRule21technicalrequirementsinaggregateatthecustomermeterwithouthavingtointerconnecteachEVorEVSEindividually.OnceaninterconnectionpathwayforapplicableindividualEVsandEVSEsisclarifiedanddefined,thenextstepmaybefortheCPUC,IOUs,andstakeholderstoworktogetheronenablingfleet-levelinterconnections.PG&Eaddedthat,thoughaggregationandsub-meteringmayberelevanttointerconnection,theyarewide-reachingissuesthatextendwellbeyondinterconnectionandlikelyrequirecoordinationwithotherproceedingsandstakeholders.CESAagreedthatitmaybereasonabletonotincludeaggregationissuesinthescopeofIssue23atthistime,butnotedthatinterconnectionissuesrelatedtoDERaggregations,includingwithV2Gsystems,willincreasinglybecomeaprevalentissuethatmustbeaddressedinthenearfuture.Insummary,thescopeofIssue23andtherelatedproposalswasidentifiedasfollows:

• ClarifyapplicabilityofRule21toV2G-capablesystems• FocusoninterconnectionprocessesandpathwaysforV2GNon-ExportandExportEVSE

(stationaryinverter,V2G-DC)configurations• Focusonsingle-siteV2GNon-ExportinterconnectionsunderRule21• ReviewfortheapplicabilityofUL1741SA,SAEJ-3072,IEEE1547,andother

standards/certificationstoenableV2G-DCandV2G-ACinterconnections• EnsurethatallfindingsandproposalsforIssue#23arecoordinatedwithallrelevant

agencies,stakeholders,andproceedingsDISCUSSIONProposal23-a.ConsensusRecognizethatinthecaseofunidirectionalcharge-onlyV1Gwithnodischargecapability,Rule21doesnotapply.V1GmustcomplywithRules2,15,and16.PartieswantedtoexplicitlyrecognizethatRule21doesnotapplytoV1G,inordertoremoveanyuncertainty.PartiesbroadlyagreedthatV1GdevicesandtechnologiesdonotneedtocomplywithRule21sinceV1Gisconsideredtobe“load”not“generation.”Atthesametime,partiesemphasizedthatV1GstillneedstocomplywithRules2,15,and16loadinterconnectionrequirements.Proposal23-b.ConsensusModifyRule21SectionB.4toclarifythatRule21appliestotheinterconnectionofbothstationaryandmobileenergystoragesystems,withlanguageasfollows:

“ForretailcustomersinterconnectingstationaryormobileenergystoragedevicespursuanttothisRule,theloadaspectsofthestoragedeviceswillbetreatedpursuanttoRules2,3,15,and16justlikeotherload,usingtheincrementalnetloadfornon-residentialcustomers,ifany,ofthestoragedevices.”

Rule21sectionB.4hasbeenappliedtobothstationaryandmobileenergystoragedevicesbecauseitdidnotexplicitlyaddressmobileversusstationaryinitsplainlanguage.IndiscussingIssue23,partiessaidthatclarifyingthatRule21appliestobothmobileandstationaryenergystoragesystemswouldremoveuncertaintyorambiguity.Proposal23-c.ConsensusRecognizethatV2G-DC/EVSEsystems(ElectricVehicleSupplyEquipmentwithstationaryinverterforDCchargingofvehicles)maybeinterconnectedunderthecurrentRule21language,withnoRule21languagechangesoradditionalauthorizationneeded,providedthattheEVSEmeetsallRule21requirements,includingUL1741SAandotherupdatedsmartinverterstandards.AsnotedintheIssueScopesection,interconnectionofV2Gsystemshasbeendoneonacase-by-casebasistodate.PartiessaidthatrecognizingthatV2G-DC/EVSEsystemsmaybeinterconnectedunderthecurrentRule21languagewouldalsoremoveuncertaintyinrelationtosuchsystems.Proposal23-d.ConsensusAllowV2G-DC/EVSEsystems(stationaryinverterforDCchargingofvehicles)toconnectasV1G,load-only,andoperateinunidirectional(charge-only)modeuponsatisfyingpre-definedcriteria.ThesecriteriaincludeULPowerControlSystemsCRD(ULCRD)andUL1741SAcertificationtesting,whichwilldemonstratethat:(1)theEVwillnotdischargeiftheEVSEissettounidirectionalmode;(2)theEVSEwillnotinadvertentlychangetobidirectionalmode;and(3)thatfactorydefaultsettingsaresettounidirectionalmode.Further,requirethattheoperationalmodecannotbechangedwithoututilityauthorization.DuringWorkingGroupdiscussions,utilitieswantedassurancesandconfidencethataV2G-DCsystemincharge-onlymodewouldnotdischarge,andfocusedonthetechnicalrequirementsandtestingneeded.Issueproponentswereconcernedaboutthepotentialcostsofhavingtoproveno-dischargeandthepotentiallyonerousburdenofhavingto“proveanegative”–i.e.,provethatsomethingwon’thappenTheWorkingGroupdiscussedtherisksandpotentialneedfortestingandcertifications,especiallyifV2G-DCinterconnectionsbecomemoreprevalent.Thisledtoinitiatingatechnicalsub-grouptodiscusspotentialtestingandcertificationprocessesthatwouldensureV2G-DC/EVSEwouldbeoperatedasunidirectionalwithoutneedforaninterconnectionrequest.Thesub-groupdiscussedtechnicalrequirements,evaluationsandprocessesthatareneededtoallowconnectingaV2G-DC-capableEVSEtotheelectricgridwhileoperatingitonlyunidirectionallyuntiladesiretochangethemodeto“bidirectional”atwhichtimeaninterconnectionapplicationwouldbesubmittedtotheutility.TheWorkingGroupcametoaconsensusthatallV2G-capableEVSEsusedforV2G-DCshall:

a. BeevaluatedandlistedunderUL1741SAviaanOSHA-approvedNRTLand,inthenear

future,beevaluatedusingUL1741thatreplacestheSupplementAwithIEEEP1547.1-2019,whichisprojectedtobeapprovedbyQ42019

b. Beevaluated,usingtherecentlyapprovedULCRDforPowerControlSystemto:i. DemonstratethatwhentheEVSEissetorprogrammedtounidirectional(charging)

mode,theEVSEwillnotdischargeii. Preventinadvertentchangeinoperationalmode(changefromunidirectionaltob-

directionalmode)c. BeconfiguredsuchthatEVSEfactorydefaultmodeshallbeunidirectional(chargingonly)

WhenanEVSEhasmettheaforementionedrequirementsunder(a),(b),and(c),thentheEVSEmaybeinterconnectedasV1G,loadonly,andmustcomplywithRules2,15,and16inaccordancewithProposal23-a.ThisEVSEhastheoptiontobeevaluatedatafuturedateaspartofRule21iftheEVSEownerdesirestooperatetheV2G-DC/EVSEasabidirectionalsystem.Utilitiesalsoidentified“pendingitems”thattheymayneedtoaddressatsomepoint,includingtheentityresponsibleforreviewing/approvingtestinginformationandmaintainingthelistofapprovedequipment.CESArecommendsthatthelistofapprovedequipmentbemaintainedbytheutilitiesuntilanequivalentCEClistcanbedeveloped.Proposal23-e.ConsensusAllowbidirectionalmodetobeenabledforaV2G-DC/EVSE(stationaryinverter)systemonlyuponreceivingPermissiontoOperate(PTO)fromtheutility.WhenV2G-DC/EVSEownerswishtoswitchtobidirectionalmode,theymustfirstcompletetheRule21interconnectprocessandreceivePTOfromtheutility.IfPTOhasbeenreceived,themanufacturerorapprovedthird-partyinstallercanthenprogram/enablebidirectionaloperation.WhenV2G-DC/EVSEownerswishtoswitchtobidirectionalmode,theymustfirstcompletetheinterconnectprocessandreceivePermissiontoOperate(PTO)fromtheutility.IfPTOhasbeenreceived,themanufacturerorapprovedthird-partyinstallercanthenprogram/enablebidirectionaloperationinaccordancewithEVSEinstructions&ULCRDrequirements.Thereareafewimplementationdetailsthatlikelyneedtobeworkedout,whichcanoccurinfutureWorkingGroupactionsorthroughadviceletterfilings.Forexample,itistobedeterminedontheimplicationsofcustomersinstallingbidirectionalcapableV2G-DC/EVSEsystemsbutnotinitiatingaRule21applicationtoenablebidirectionalmodeforalongtime,potentiallyleadingtotheriskthatmajorcostlyretrofitsareneededtomeetnewstandardsorcertificationsthathavebeenadoptedatamuchlatertime.OnepossibilitywouldbetohaveV2G-DC/EVSEownerstointerconnectascharging-onlymodetofacilitatefastloadconnectionsandtohavetheRule21processbestartedinparallel.TheneedtodefineatimeperiodtoinitiatetheRule21processwasalsodiscussed.Theseimplementationdetailsremainunresolvedatthistime.

SpecificallyasrelatedtothetimeperiodtoinitiateRule21process,PG&Eproposesthefollowing:AsrelevanttotheInterconnectionApplication,iftheInterconnectionApplicationissubmittedwithin6monthsofinspectionapprovalbythelocalAuthorityHavingJurisdiction(AHJ),andtheEVSEownerdesirestooperatetheEVSEinaV2Gmode,inaccordancewithRule21,theEVSEinvertercanbeevaluatedbasedontheapplicableregulatoryrequirementsandstandardsatthetimeofinspectionapproval.Otherwise,theEVSEinvertershallbeevaluatedasV2GbasedontheregulatoryrequirementsapplicableatthedateofApplicationDeemedComplete.Consistentwithcurrentprocess,theinterconnectionstudyforgridimpactwillalwaysbeconductedatthedateofApplicationDeemedComplete.Proposal23-f.Non-consensusModifyinterconnectionportalstoenablesimpletrackingofV2Ginterconnections,suchasbyaddingnewEVSEinvertertypesindrop-downmenusorflagginginterconnectionsasV2G.(ThisitemisalsocoveredinIssue22.)

Supportedby: CESA,CleanCoalition,eMotorWerks,Fiat-Chrysler,GPI,Honda,Nuvve,PG&E,SCE(conditional;seeutilityposition)

Opposedby: SDG&EInWorkingGroupdiscussions,proponentsbelievedthatsimpletrackingofV2GinterconnectionswouldprovidefurtherdataandunderstandingofV2GdevelopmentinCaliforniathatcouldsupportfuturepolicyanddecision-making.Teslaposition:

IncommentsforIssue22,sub-proposal#4onaddingV2Gtointerconnectionportals,TeslacommentedthatitisnotopposedtoincorporatingV2Gintoportals,butitdoesquestionthedegreeofurgencygiventhenascentstateofV2Gcurrently.

GPIposition:

IncommentsforIssue22,sub-proposal#4,GPIdisagreedwithTeslaandurgestheCommissiontoaddressthisnowinordertoprovideaproactiveenvironmentforV2G,ratherthanbeingreactive.

Utilitypositions:

SDG&Edoesnotsupportthisproposal.Todate,SDG&EhasonlyprocessedoneinterconnectionapplicationforaDC-coupledV2Gfacilitythatwasbehindanexistingbillingmeteratacharger.ThescopeandcosttoreviseSDG&E’swebportalhavenotbeendeterminedbecausesofewV2Gapplicationshavebeensubmittedtodate.AsthenumberofV2Gapplicationsincrease,SDG&EwillworkwithitsInformationTechnologygrouptodeterminethedetailedscopeofworkandassociatedcoststorevisetheportaltoallowstreamlinedapplicationprocessesforV2Gandweighthosecostswiththepotentialbenefits.

SDG&Eassertsthatatthepresenttime,theexistingapplicationprocessesareadequatetofacilitatetheinterconnectionrequestandreviewprocessforV2Gsystems.Giventhelackofsuchapplications,SDG&Edoesnotseeaneedatthistimetobegintheengineeringworktodeterminethescopeandcostofimplementingchangestoitsportal.WhileSDG&EdoesnothaveacurrentneedtoimprovetheinterconnectionprocessforV2GDCsystems,itspracticeistomakesystemimprovementsincludingstreamliningchangesthatwillimproveefficienciesandexpeditetheinterconnectionprocessesastheneedarises.

AlthoughSCEhasnotseenanycurrentV2Gprojects,SCEsupportstheinclusionofEVSEinvertersinfutureupdatesofSCE’sGenerationInterconnectionProcessingTool(GIPT)system(asdiscussedwithinIssue22anddiscussionofinterconnectionportals).SCEexpectsthatthisfunctionshouldbeabletobeincorporatedintotheGIPTdropdownmenufornewapplicationswithinthelaterphasesofplatformdevelopmentsubjecttoPhase1GIPTfunctionalityconfirmationandPhase2functioncapabilityreview.

Proposal23-g.Non-consensusEstablishasub-groupinvitingstakeholdersfromtheSmartInverterWorkingGroupandSAE,amongothers,todeveloptechnicalrecommendationstoenableV2G-AC(mobileinverter)interconnections.Thissub-groupwouldbeledbyastakeholderincoordinationwiththeCPUCEnergyDivisionandincollaborationwithoneormoreutilities,andwouldprovideaCPUCrecommendationontechnicalrequirementsfortheimplementationofV2G-ACinterconnections.RecommendationstotheCPUCfromthissub-groupwouldbeprovidedsixmonthsaftertheissuanceoftheWorkingGroupThreeFinalReportifconsensuscanbereached,orsixmonthsafteraCPUCdecisionontheWorkingGroupThreeFinalReportifpartiesareinanon-consensusposition.

Supportedby: CESA,CleanCoalition,eMotorWerks,Fiat-Chrysler,GPI,Honda,Nuvve,SCEOpposedby: PG&E,SDG&E

AttheMarch27,2019,atentative(verbal)consensuswasreachedtohaveatechnicalsub-groupbeestablishedtoaddressV2Ginterconnectionissues.Thissub-groupwouldbe“informal”butwouldbeopentoparticipantsfromtherelevantstakeholdergroups(e.g.,SIWG,SAE,DRIVEOIR,VGIWorkingGroup)toparticipateinthesetechnicaldiscussions.TherewastentativeagreementthatthegroupcoulddeveloprecommendationsthatcouldbelaterintroducedintotheformalproceduralrecordintimefortheadoptionoftheWorkingGroup#3ProposedDecision,whichmayoccursometimeinQ32019.Therearestilluncertaintiesastohowanyconsensusproposalsfromthissub-groupwouldbere-introducedbackintotherecord,whowouldsupervisethesub-group,andbywhattimeframerecommendationswouldbedelivered.Someideasincluded:(a)havingtherecommendationsbeintroducedthroughtheSIWG,whichismeetingonanongoingbasis;(b)havingadedicatedRule21workshop;and/or(c)theVGIWorkingGroupintheDRIVEOIR,whichisslatedtobeginmeetingin

July2019.Thesub-groupitselfmayultimatelydeterminewhereanyproposalswouldenterintotherecord.Notallstakeholderswereinfavorofthisproceduralpathway,asPG&Ereservedjudgment.Proponentpositions:

CESAdoesnotbelievethatthelimitedtimeavailableinWorkingGroupThreededicatedtoIssue#23wassufficienttimetocomprehensivelyandeffectivelyaddressRule21interconnectionissuesforcertainV2G-ACsystemswithmobileonboardinvertersseekinginterconnectionthroughSAEJ3072,orotherlonger-terminterconnectionissuessuchashybridizationofV2Gsystemswithsolarand/orenergystoragesystems.ThereareanumberoftechnicaldetailsthatneedtobediscussedbetweenIOUsandotherstakeholderstounderstandtheconcerns,addressgaps,andproposetheappropriatechanges.CESAunderstandsthatanewproceeding(R.18-12-006)hasbeenopenedtoaddressarangeofissuesrelatedtovehicleelectrificationrates,infrastructure,andVGIissues.Whilethisissuecouldbescopedthere,CESAbelievesthatR.18-12-006isalreadyoverloadedwithawiderangeofissuesandinsteadrecommendsthattheRule21proceedingistheappropriateforumtodiscussthesematters,whichrequiretheinvolvementofIOUinterconnectionengineersandspecifictariffrulechanges.TheSmartInverterWorkingGroup(SIWG)wasalsoraisedasapossiblevenuetoaddresstheseoutstandingorlonger-termissues,butCESAisagainconcernedthattheSIWGisalreadytaskedwithalargeagenda,includingthetimelyimplementationofResolutionE-4898functions,whichhavealreadybeendelayedmultipletimes.Instead,CESAbelievesthatadedicatedV2G-focusedsub-groupinthisproceedingistheappropriatetimeandplacetoaddressthesetechnicalmattersmoredeeply.Insum,CESAbelievesthatmoretimeisneededonvariousV2Ginterconnectionissues.

Utilitypositions:

WhilePG&EsupportstheadvancementofindustryeffortsonthetechnicalaspectsofV2GAC,PG&Emakesthefollowingtwocomments:First,addressingtheregulatoryneedsand/orrequirementsaroundtechnicalaspectsofV2GACshouldnotbedoneinisolationbutratheraspartofabroaderVGIeffortthatclearlyidentifiesandprioritizesVGI’stechnicalchallengesandbarriers.Second,theneedand/orvalueofV2GACshouldbeclearlyarticulated,especiallyrelativetothemoretechnologicallyandcommerciallymatureV2GDC,beforeandinordertojustifylaunchingdedicatedeffortstoaddressthetechnicalaspectsofV2GACthroughratepayer-fundedpolicyandregulatoryproceedings.PG&Esupportsthecontinuationofprivateindustryeffortstoaddresstheseissues.PartofthoseprivateindustryeffortsmaybethroughtheparticipationinSAEactivities.EVmanufacturersshouldplayaleadingroleinthedevelopmentofautomotivestandards,whileutilitiescanadviseandengagevoluntarilyasneeded.Forexample,someautomakershaveexpressedconcernwithULrequirementsbecausetheytakeuptoomuchspaceinthevehicle.ThisautomotivedesignissueaffectingV2GACisbestaddressedbySAEandEVmanufacturersratherthanRule21WorkingGroup.AfterSAEdeveloptheautomotiveequivalentofUL1741SA,utilitiescanreviewitforadequacyand,ifadequate,adoptitinRule21.

PG&EbelievesthatSIWGinitscurrentformmaynothavesufficientEVexpertise,andSAEtechnicalpersonnelmayneedtoleadandproactivelysupportpotentialfutureV2GACstandardsdevelopmenteffort,toensurethatEVtechnicalissuesareproperlyaddressed.PG&EalsonotesthattheproposedtimelineinthisproposalmaybedependentonthetimelineassociatedwithSAEstandardsandlevelofinvolvement.SCEagreedwithCESAontheneedforadditionaltimetoaddressalltheV2G-ACimplementationprocedures.SCErecommendsthatthissub-groupbeacollaborationoftheSIWGincludingtechnicalstandardspersonnel,includingfromSAE,ULandIEEEtoaddressexpectedtechnicaltopics,suchas:• Compliancerequirementunderthevariousstandards(e.g.,SAEJ3072,UL2594,UL1741

SA,SAEJ2836,IEEE1547-2018,IEEE1547.1-2019,IEEE2030.5)• CompliancewithNECcodes• NecessaryRule21modificationsSCE:WhileSIWGhasbeentaskedwithaddressinganumberoftechnicalissues,especiallyforResolutionE-4898,SCEbelievesthattheSIWGhaslargelycompletedwiththosetasksandthuswouldbeavailableforworkingonthesecomplextechnicalissues.However,SAEtechnicalpersonnelmustparticipateintheSIWGtoensurethatalltechnicalissuesareproperlyaddressed.SCE:GiventhecomplexityofthetechnicalandstandardrequirementsrelatedtoV2G-AC,SCEdoesnotsupportaddingthisscopetofutureworkinggroups(i.e.,WorkingGroupFour).Instead,SCEproposedthataworkinggroupoverseenbyIOUsandsupervisedbyCPUCEnergyDivisionbeestablishedtoprovideaCPUCrecommendationontechnicalrequirementsfortheimplementationofV2GACinterconnectionsasoutlinedinProposal23-gandconsistentwithpriorSIWGpractice.SCEproposedthatrecommendationsbasedondiscussionsoccurringinthisforumcouldbeprovided6monthstotheCPUCaftertheissuanceoftheWorkingGroupThreereportifconsensuscanbereachedor6monthsaftertheCPUCdecisiononWorkingGroupThreereportifpartiesareinanon-consensuspositionasoutlinedinProposal23-g.SDG&Eunderstandsthatadraftmotiontocreatethissub-groupisincirculationandmaysoonbefiledproposingtobeginthissubgroupinQ2-Q32019–priortotheCommission’sreviewanddecisionsonproposalscontainedinthisWorkingGroupThreeFinalReport.SDG&Ebelievesthatitisprematureandpotentiallyextremelyinefficienttobeginatechnicalsub-grouppriortotheCommissionissuingadecisionthatholisticallyconsidersalltherecommendationswithinthisWorkingGroupThreeFinalReport.EVindustrystakeholdershavestatedthatV2GACsystemscannotpasstheUL1741SAcompliancetestsbecauseUL1741SAcontainstestcriteriathatmobileinverterscannotmeet.TheEVindustrystakeholdershaveproposedSAEJ3072asanalternativetestingstandardtoUL1741SA.InorderfortheIOUstoacceptSAEJ3072asanacceptablereplacementtoUL1741SA,itwillbenecessaryfortheEVindustrystakeholderstodoacomparativeanalysisbetweenSAEJ3072andUL1741SA(andIEEE1547).EVindustrystakeholderswouldalsoneedtoidentify

changestoSAEJ3072thatwillincorporatetheessentialteststoensureon-boardinvertersinV2GACsystemswilloperatesafelyandreliably.WhenthechangestoSAEJ3072havebeenidentified,thenIOUstakeholderswillneedtoverifytheproposedchangeswillprovidethesamesafetyandreliabilitytestsnowprovidedbyUL1741SA.AfterverificationthatSAEJ3072containsthesameteststoensuresafetyandreliabilitynowprovidedbyUL1741SA,itmaybeappropriateforallstakeholderstocollaborativelydetermineimplementationsteps.SDG&E:TheinitialphasesofworktoperformthecomparativeanalysisbetweentheSAEandUL/IEEEstandardsandtoidentifychangesneededtoSAEJ3072canbeperformedbytheEVindustrystakeholders,andshouldnotrequiresignificantinputfromtheIOUs.TheIOUswillnotneedtoparticipateintheworkeffortuntilthechangestoSAEJ3072havebeenproposed.Therefore,itisnotappropriatetoassembleamandatoryworkinggroupledbyIOUsandEVindustrystakeholders,nortoconductmeetingswithallpartiesuntiltheproposedchangestoSAEJ3072havebeendeveloped.OncetheproposedchangestoSAEJ3072havebeendeveloped,communicationbetweenEVindustryrepresentativesandtheIOUsandotherindustrystakeholdersshouldtakeplacetoverifySAEJ3072adequatelysupplantsUL1741SA,andtodetermineimplementationsteps.

Proposal23-h.Non-consensusModifySectionNtoallowstreamlinedstudyprocessforV2G-DC(stationaryinverter)EVSEinterconnections.

Supportedby:CESA,CleanCoalition,eMotorWerks,Fiat-Chrysler,GPI,Honda,Nuvve,SDG&E(partial;seeutilityposition)

Opposedby: PG&E,SCEProponentpositionbyCESA:

ForV2GNon-ExportEVSEusecases,CESAraisedthepossibilityofconsideringhowRule21interconnectionreviewprocessescouldbeadaptedfromtherecentlyapprovedone-yearpilotforexpeditedinterconnectionreviewofnon-export,standaloneenergystoragesystemsthatmeetspecificeligibilitycriteria.16ExistingSectionNCriteriaandCESA’sproposedchangesaregiveninTable2.UtilitiesfiledadvicelettersonSeptember1,2018reportingonoutcomesofthispilotprocess.CESAbelievesthatitmaybeworthwhiletoconsiderhowthisprocess,perhapsadaptedinsomewaytoV2Gusecases,couldestablishaperformance-basedinterconnectionreviewprocess.

16Rule21SectionN.

Table2:ExistingSectionNCriteriaandCESA’sProposedChangesExistingSectionNCriteria CESA’sProposedChangesCannotexceed0.5MWinaggregateinverterand/orrectifiernameplaterating(butanyenergystoragekWhratingmayapply)

Asimilarthresholdcouldbeset.CESAdoesnotseeanyreasonwhythisthresholdshouldbedifferentiatedforstationaryBTMenergystorageversusstationaryV2GEVSEsthathavesimilarcapabilitiesbutwiththe‘storagereservoir’locatedintheEVbatteriesratherthanintegratedinthesame‘box’wherestoragecontrolsarelocated.Similarly,theloadstudiesshouldfocusontheinverterratingoftheEVSEasopposedtotheEVbatterycapacityandshouldallowforanykWhratingtoapply.PerhapsapolicyquestionfortheCPUCinthefuturecouldbeonreassessingthis500-kWthreshold,whichforEVfleets,couldbeeasilyreached–e.g.,fromfour150-kWDCfastchargers.

Mustbebehindasingle,clearlymarked,andaccessibledisconnect

Nochangesareneeded.ThedisconnectcanbelocatedandmanagedattheEVSE.ThisappearstoalreadybemandatoryforLevel2EVSEs.17

OnlyScreenIProtectionOptions3and4areeligible,aswellaspotentiallyAC/DCconverterspendingtheirlabresults

Nochangesareneeded.

Mustbeatasingleretailmeterpointofinterconnection

Nochangesareneeded.

Musthaveasingleorcoordinatedcontrolsystemforchargingfunctions

Nochangesareneeded.

Mustoperateunder“ChargingMode2”whereinchargingfunctionsdonotincreasethehostfacility’sexistingpeakloaddemand

Nochangesareneeded,butfurtherdiscussionwouldbehelpfultoviewthiscriterion.WithinthecontextofEVchargingload,customerpeakdemandmayincreaseincertainapplications.SomeEVSEsarealsotakingserviceunderseparateratesfromthehostcustomerload.18CESAisopentodiscussiononwhetherthiscriterionwouldneedtobeadjustedforV2GEVSEs.

MusthaveaUL1741certifiedinverter

Nochangesareneeded.V2G-DCsystemsshouldbecertifiableunderUL1741.

Mustincludeasingle-linediagramanddescriptionofoperations

Nochangesareneeded.

MustmeetallElectricServiceRequirements

Nochangesareneeded.

17SeePG&E’scodeathttps://www.pge.com/includes/docs/pdfs/about/environment/pge/electricvehicles/ev5pt3.pdf18CESAnotesthatotherjurisdictions,suchasDistrictofColumbia,aredealingwiththechallengeofdistinguishingbetweenelectricityasafuelversuselectricityasaservice.

Toimplementtheaboveproposedchanges,CESAproposesthefollowingredlinemodificationstotheRule21tariffSectionD(GeneralRules,Rights,andObligations)toextendtheapplicabilityoftheexpeditedinterconnectionreviewprocessfornon-exportingenergystoragesystemstonon-exportingV2G-DCinterconnectionusecases:

14.SpecialProvisionsApplicabletoNon-ExportEnergyStorageGeneratingFacilities

ApplicantswithNon-ExportEnergyStorageGeneratingFacilities,includingdirectcurrentvehicle-to-gridenergystoragesystems,thatmeetthecriterialistedinSectionNshallbeeligibletoelecttohavetheirInterconnectionRequestsprocessedinanexpeditedtimeframe,subjecttothetermsandconditionsofSectionN.

Similarly,theopeningapplicabilityparagraphofSectionNwouldneedtobemodified:

UponimplementationbyDistributionProvider,ApplicantswithInterconnectionRequestsforNon-ExportEnergyStorageGeneratingFacilities,includingdirectcurrentvehicle-to-gridenergystoragesystems,whomeettherequirementsoutlinedbelowareeligibleforexpeditedinterconnection,asprovidedherein,inaccordancewiththeFastTrackProcesstechnicalreviewrequirementsofSectionF.2.ApplicantswithNon-ExportAC/DCConvertersthatmeettherequirementsoutlinedinSectionObelowarealsoeligible.

Alternatively,anewsub-sectionofSectionNcouldbecreatedforV2G-DCsystemsandbroadlyforV2Gsystemsingeneral,thusteeingupfutureconsiderationofV2G-ACinterconnections.Forfleetapplications,languagepreventingmultiplegeneratorsbehindthesamePCCwouldhavetoberemovedormodified.Otherwise,V2G-DCinterconnectionswouldberequiredtofollowthenormalFastTrackproceduresandapplicabletimelines.CESAthereforerecommendsthefollowingredlinemodificationstoSectionN.2.c:

TheGeneratingFacilitymustbelocatedbehindanexistingsingleretailmeterandPointofCommonCouplingwithasingle,clearlymarkedandaccessibledisconnect.NootherGenerators,otherthanisolatedback-upGenerators,maybeatthesamePointofInterconnectionorPointofCommonCoupling.

Additionally,underRule21SectionN.2.e.,CESAraisedthepossibilityofstrikingtheprovisionsaroundcontrolsystemsensuringthatthereisnoincreaseinacustomer’sexistingpeakloaddemand,whichCESAbelievesshouldbeaccommodatedbyRule16.Inmanyapplications,theremaybehigh-capacityEVchargingusecasesthatwilllikelyexceedacustomer’speakload.CESAunderstandsthatSectionNwasestablishedtostreamlineinterconnectionbylimitingoverloadconcernsfromcoincidentcharging,soCESAwishestoexploretheflexibilityofreassessingthiscriterionandwhetheritisappropriate.ThismaybeabroaderpolicymatterthatneedstobeaddressedwithinthecontextofnotonlyV2G-DC

systemsbutwiththebroadersubsetofenergystoragesystems.CESAflagsthisasaconsiderationinsuchfuturediscussions.Finally,CESArequestsclarityonthestatusofthepilotsconductedleveragingtheprocessandconditionssetinSectionN.CESAunderstandstheexpeditedinterconnectionprocessfornon-exportingenergystoragewasapilotthatexpiredonJune30,2018.WhileCESAstronglyrecommendsthecontinuanceofthisprocessandmaintainingSectionNinthetariff,aCPUCdeterminationtodiscontinuethisseparateprocessforenergystoragewouldhaveanimpactonourrecommendations.ForV2GExportEVorV2GExportEVSEconfigurations,CESArecommendsthecreationofexpeditedinterconnectionprocessessimilartowhathasbeenestablishedforNetEnergyMetering(NEM)generatingfacilities.Currently,NEMgeneratingfacilitiesunder1MWareprocessedin30daysorlessaftersubmittingacompletedinterconnectionapplication,19andareeligibleforfast-trackevaluationwhensizednolargerthan3MWona12kV,16kV,or33kVlines.20Asapolicydecision,CESAbelievesitmaybereasonabletoassesswhethersizethresholdscouldbeestablishedsuchthatexpeditedfast-trackprocessesorcertainscreenbypassingcanbeextendedtoV2GDCsystemstofacilitatetheinterconnectionofV2GEVSEsthatsupportthestate’sVGIobjectivesandprovideadditionalgridservices.Forexample,specificprovisionsforNEMgeneratingfacilitiesisgrantedunderScreenKforNEMfacilitiesbelowacertainsizethreshold(500kW).ThisisapolicydecisionthatshouldbeconsideredbytheCPUC.AttheJanuary10,2019workshop,SCEraisedpotentialjurisdictionalissuesforV2Gexportingusecases.CESAisunawareofanyenergystorageprojectsbeingFERCjurisdictionalunderthePublicUtilityRegulatoryPoliciesAct(PURPA)provisions,thoughthereissomerecentactiveconsiderationofthisjurisdictionalissue.21JurisdictionalissueswerealsoraisedintheCommunityEnergyStorageWorkingGroupinR.15-03-011onSeptember13,2017.Whileitislikelythatenergystoragemaybeconsideredaqualifyingfacility(QF)bywhichutilitieswouldberequiredtopurchaseelectricityatavoidedcosts,CESAdoesnotviewthatasapplicable,atthistime,fortheV2Gusecasesdiscussedhere,wherethereisnoeligiblegenerationresourcethatisbeingpairedwithV2Gsystems.Similarconclusions,thoughnotdefinitive,weremadeinthecommunitystoragediscussions.Inthefuture,suchPURPA-relatedquestionsmayneedtobeaddressedasV2Gsystemsarepairedwitheligiblegenerationresources,butatthistime,CESArecommendsthatsuchFERC/PURPAjurisdictionalissuesdonotneedtobeaddressedinthisproceedingatthistime.Additionally,theFERCjurisdictionalissuelikelyappliestoabroadersetofBTMdistributedenergyresourcesaswell,suchasBTMenergystoragethatwishestoexportpower.Thesemacroquestionsshouldbeaddressedintheappropriatepolicyproceedingasopposedtothistechnicalinterconnectionproceeding.

19Rule21SectionD.13.b.20Rule21SectionE.2.b.i.21Bade,Gavin.“MontanacasecouldsetFERCprecedentforpairedstoragetreatmentunderPURPA.”UtilityDive,publishedOctober9,2018.https://www.utilitydive.com/news/montana-case-could-set-ferc-precedent-for-paired-storage-treatment-under-pu/539213/

Instead,thefocusmaymoreappropriatelybeonhowexportingV2Gsystems(aswellasexportingenergystoragesystems)aretreatedforinterconnectionwhenprovidingCPUC-jurisdictionaldistributionservices,suchasintheIDERRFOsbeingconductedannuallygoingforward.CESAbelievesthatsuchprojectsareRule21applicableastheywouldbe“selling”capacity,notenergy,totheutility.ThisistheappropriatefocusforthisWorkingGroupatthistimeinidentifyinginterconnectionpathwaysforexportingV2G-DCsystems.Finally,CESAunderstandsthattherearemeteringprovisionsforinterconnectingenergystoragesystemsandotherGeneratingFacilities.CESArecommendsthatthisWorkingGroupnotaddressthatmatteratthistime,asmeteringandsub-meteringapproachesismoreappropriatelyaddressedinthenewVehicleElectrificationproceeding(18-12-006).

Utilitypositions/general:

UtilitiesagreedthatstationaryinvertersforV2G-DCinterconnectionsshouldberequiredtocomplywithRule21requirementsandtheUL1741SAcertificationprocessorcurrentapprovedcertificationprocess,astheseV2Gsystemswillusenon-mobile(stationary)inverterswhereEVswillhavethestorageonboardbuttheinverterwillbeoff-boardandstationary.TheEVSEmustbecertifiedandlistedbyanOSHA-approvedNRTLandcertificationofcompliancedocumentsshouldbeprovidedtoutilityequivalenttostationaryenergystorageinverter.Inotherwords,V2GDCinterconnectionsshouldfollowthesameRule21SectionHhrequirementsasanyotherinverter-basedDERsubjecttotheRule21tariff,includingforthcomingtransitiontoupdatedIEEE1547-2018andIEEE1547.1-2019/20standardsonceapprovedandadoptedinRule21.

Utilitypositions/SCE:SCEdoesnotagreetothisproposalandrelatedrevisionstoSectionNforinterconnectionofV2G-DC/EVSEsystems.Bywayofbackground,SectionNwasadoptedfortheveryspecificusecaseofexpandingtheinterconnectionofnon-exportenergystorageprojects(theusecaseforthepilotwasverywellestablishedaswell).Tomeetthisveryspecificusecase,stakeholdersinpreviousRule21proceedingsagreedonspecificprojectandtechnicalrequirementsoutlinedinSectionNwhichashighlightedbelow:

1. GeneratingFacilitymustonlybecomprisedofNon-Exportinginverter-basedenergy

storage.Thisisrequiredashavingothertechnologieswouldrequireadditionalengineeringtechnicalreviewwhichwouldpreventtheabilitytoexpeditetheinterconnectionprocessforthisclassofnon-exportenergystorageprojects.

2. GeneratingFacilitymusthaveanaggregateinverternameplatecapacityratingofnomorethan500KW.ThisisnecessaryashavingthislimitwillminimizeanyimpactsbasedonscreensFandGandthusallowexpeditingtheInterconnectionProcess.

3. Controlsystemmustensurethatthereisnoincreaseincustomer’sincreasepeakdemand.Thisisrequiredtopreventtheneedtoperformaloadstudyandthusallowtheexpeditingoftheinterconnectionprocess.

ModifyingSectionNasproposedbyCESAcouldunderminethecurrentSectionNapproachasitwasdevelopedforaspecificgroupofestablishedusecasesinaccordancewithpriorstakeholderdiscussionsandapprovedbytheCommission.

Instead,SCEproposesthatoncecertificationrequirementsaremetfortheEVSE’sasoutlinedinProposal23-d,thenSCEbelievestheFastTrackprocessissufficienttomeettheneedsofV2G-DC/EVSEs.Further,totheextentthatgeneratingfacilitieswithV2G-DC/EVSEsdesiretointerconnectusingtheexistingSectionN,theyareabletodosoaslongastheymeetthecurrentSectionNrequirements.Therefore,SCEdoesnotsupportthered-lineproposedbyCESAonRule21SectionD.14alongwiththeproposedSectionNredline.

1. AsdiscussedwithinWorkingGroupThreediscussions,SCEdidnotagreetomodify

SectionNasproposedbyCESA22onthefollowinggroundsassummarizedbelow:

a. SectionNwasdesignedandapprovedtoallowtheexpeditedinterconnectionofenergystorageprojectswithaspecificsetoftechnicalandproceduralrequirementsinsupportofanestablishedsystemusecase;

b. ModifyingsectionNasproposedbyCESAcouldpotentiallydelaytheinterconnectionprocessforprojectswhicharecurrentlyevaluatedunderSectionNinaccordancewithexistingtariffprovisions.SectionN,ascurrentlyapprovedwithinRule21,hasbeensuccessfulfortheprojectscurrentlyprocessedinaccordancewithSectionNrequirementsandexpansiontogreaterusecasesnotenvisionedcouldcreatenegativeconsequencesfortheprojectsthatarecurrentlyprocessedinaccordancewithSectionN.

c. ForV2G-DCsystemswhichhavemettherequirementsasoutlinedinproposal23-dandwhichmeettherequirementsofSectionN,areabletouseSectionNtodaywithoutadditionalissues.

2. SCEdoesnotagreetomodifysectionD.14asproposedbyCESA.Forpurposesofinterconnection,theenergystoragewithintheV2G-DCelectricvehicleisnotrelevant.Infact,Rule21sectionN.2.bindicatesthat“ThereisnolimitonanEnergystoragedeviceKHWcapacityrating”.Forpurposeofinterconnection,therelevantdeviceisthestationaryEVSEjustlikeforstationarystoragesystemswheretherelevantdeviceistheinverter.Thus,forsectionD.14,theredlinelanguageproposedbyCESAisnotnecessaryandshouldnotbeadded.

3. SCEdisagreeswithCESA’sproposalofestablishingNEMequivalentprocessforEVSEs

(V2G-DCPVEs).SCEnotesthatNEMexpeditedprocessisbasedonmeetingrule21systemreviewscreensA-Handbeingbelow11KVAiswhatcurrentlyallowsNEMeligibleprojectstobereviewedunderthespecificexpeditedprocess.Thus,totheextentthatEVSE’ssatisfytheexistingcertificationrequirementsasstatedinproposal23-d,sizelimitrequirementsasoutlinedinRule21ScreenJ,alongwiththesimplifiedinterconnectionsasgenerallyNEMtypeofprojectspose,thenSCEbelievesthattheseEVSEcanbe

22CESA’sJanuary24,2019proposalonPage16.

interconnectedinanexpeditedmannerequivalenttosmallstorageprojectsandshouldbeabletosatisfySectionNasdiscussedabove.

Therefore,SCEdoesnotsupportcreatingaspecificprocessforEVSEwhichdonothavethesameregulatorystructurerequirementsequivalenttoanNEMprogramtariffrequirementsandprocess.Forexample,underthePUCNEMprogramstructure,NEMprojectswhicharelessthan1MWincapacityarenotrequiredforsystemupgradesorstudies.UntilanequivalentregulatorystructureiscreatedforV2G/EVSEsystems,thesameprocessasNEMshouldnotbeusedforV2G/EVSEsystems.

SCEhasthefollowingspecificcommentsontheSectionNCriteriachangesproposedbyCESA:

Cannotexceed0.5MWinaggregateinverterand/orrectifiernameplateratingSCEagreesthatthereshouldbenodifferencebetweenstationarystorageinterconnections(Inverterandstorageatasite)andmobilestorageinterconnections(stationaryEVSEandstorageonthevehicle).Thus,bothstationaryandmobilestoragesystemsshouldbetreatedequallyforpurposesofthisscreen.Mustbebehindasingle,clearlymarked,andaccessibledisconnectForpurposesofdisconnectingmeansasrequiredinRule21sectionH.1.d,thegeneratingfacilitymustincludethenecessaryaccessibledisconnectingmeanswiththerequirementsspecifiedinRule21SectionH.1.d.TotheextentthatdisconnectingmeansfortheEVSEmeettherequirementsofRule21SectionH.1.d,SCEwouldacceptsuchdisconnectingmeansotherwiseaseparatesetofdisconnectingmeanswillberequired.Mustoperateunder“ChargingMode2”whereinchargingfunctionsdonotincreasethehostfacility’sexistingpeakloaddemandSCEproposestomodifyto:“ThecontrolsystemmustensurethatthereisnoincreaseintheInterconnectingCustomer’sexistingpeakloaddemand.”ThemainintentofRule21SectionNwastoexpeditetheInterconnectionofNon-ExportEnergyStorage.Tobeabletoexpeditethereviewandapprovaloftheinterconnection,itisnecessarytoeliminateasmanyofthetechnicalreviews.Onemajortechnicalreviewistheabilityfortheexistingelectricalservicecomponentstobeabletosupporttheincreasedload.However,ifitcanbeassuredthatthestoragecontrolsystemswillnotallowanincreaseinload,thenthereisnoneedtoperformanengineeringreviewfortheloadportionandthusexpeditingthetechnicalreviewprocess.Ifgeneratingfacilitycannotmeetthiscriterion,thentwotechnicalsetsoftechnicalevaluationswouldberequired:

1. Evaluatethattheexistingelectricalfacilitiesareadequatefortheincreasedload.Thisprocesswouldfollowexistingrules2,15,and16

2. EvaluatethattheexistinggeneratingfacilitiesmeetallRule21requirements.Thus,becausetheintentforSectionNwastoexpeditetheinterconnectionprocessfornon-exportinggenerators,arequirementtohaveacontroltonotincreasedcustomer’s

peakdemandisrequiredotherwisethereisnowaytoexpeditetheinterconnectionprocessfornon-exportingstorage.TotheextentthatV2G-DC/EVSEsystemscanmeettherequirementofthiscriteria,thenthesesystemscouldbetreatedequallyasRule21SectionNnon-exportingstorageotherwise,theseprojectswouldneedtobeevaluatedforloadincreasesandgeneratinginterconnectionrequirementstoinsureDER-Gridinterconnectionissafeundercharginganddischargingoperatingconditions.

Utilitypositions/PG&E:

PG&EsupportsenablingstreamlinedV2G-DCinterconnectionsviaSectionN,whichiswhyitdisagreeswithmodifyingSectionN.AnEVwithenergystoragemeetstheRule21definitionofaGenerator,thereforenochangestoSectionNarerequired.PG&EbelievesthatexistingSectionNisflexibleenoughtoaccommodatevehiclebatteriesalreadyanddoesnotneedtobemodified.TheproposedredlinesarenotneededbecauseRule21istechnologyagnostic.

Utilitypositions/SDG&E:

SDG&Esupportstheproposaltoincludenon-exportingV2G-DCsystemsinSectionN.However,SDG&EdisagreeswithCESA’sproposaltomodifySectionNanddeletethestipulationthat“noothergeneratorsotherthanisolatedback-upgenerators,maybeatthesamepointofinterconnectionorpointofcommoncoupling.”IfaV2G-DCsystemseekstointerconnectbehindameterwherethereareothergenerators,thentheutilitieswillneedthefullreviewtimeprovidedunderthenormalFastTracktimelines,andnottheexpeditedtimelinesprescribedinSectionN.Thisisbecausethepresenceofothergeneratorswillrequireengineeringreviewtodeterminethetypegenerationandconnectivityofthegenerator,andadeterminationofwhetheradditionalmeteringisnecessaryifthatgenerationreceivesNEMtreatment.

Proposal23-i.Non-consensusClarifyapathwayforpartiestointerconnectV2G-AC(mobileinverter)systemsonatimelybasisforexperimentaland/ortemporaryuseuntiltheappropriaterulesareupdatedinthefuture.

Supportedby: CEC,CESA,eMotorWerks,EPRI,Fiat-Chrysler,Ford,GPI,Honda,KituSystems,Nuvve

Opposedby: PG&E,SCE,SDG&EProponentpositionbyCESA:

AstheCPUC,utilities,andstakeholdersworkthroughV2G-ACinterconnectionissues,CESArecommendsthatapathforsometimelyinterconnectionanddeploymentofV2G-AC

systemsforpilotsand/ortemporaryusebeallowed.R.18-02-006,thenewlyopenedproceeding,maydirectpilotsforV2Gsystemsthatwouldfacebarrierstooperateandlearnifinterconnectionstandsasabarrier.Intheselimitedinstances,theutilitiesshouldclarifyapathforsometemporaryallowanceforpilotsandexperimentationandnothinderpilotdeploymentsduetointerconnectionissues,whichmayhavedeminimisimpactsandarenecessarytogeneratelessonslearnedforfulldeploymentandachievementofVGIpolicyobjectives.Thedetailsoftheinterconnectionstudyprocesscancontinuetobedevelopedinthemeantime.Therearecurrentlyafewknownexistingpilotsthatareseekingthistypeofinterconnection,showninTable3.

Table3:ExistingPilotsSeekingV2G-ACInterconnection

ProjectName FundingSource FundingTotal

CAIOUTerritory

Timeline

ElectricVehicleStorageAccelerator(EVSA)

NRG-EVgoSettlement

$1million SDG&E 2015-June2019

IntelligentElectricVehicleIntegration(INVENT)

CaliforniaEnergyCommission

$4million SDG&E/Others

Oct2017-Dec2020

RialtoV2GElectricSchoolBus

USDOE,SCAQMD $6.8million

SCE Jun2017-2021

MarineCorpsAirStation(MCAS)MiramarV2GMicrogrid

CaliforniaEnergyCommission

$2.9million

SDG&E Jul2017-Jun2020

Currently,therearenonon-pilotdeploymentsofV2GsystemsonCalifornia’sdistributiongrid,andnearlyallhavebeenpursuedundereitherdirectsponsorshiporoversightbyregulatoryagenciesincludingtheCPUCandCEC.Thus,atemporaryexemptionfromRule21smartinverterrequirementsappearstobeworthyofconsiderationatthistimewhilebeingsupplementedbySAEJ3072certification.Atthesametime,CESArecognizestheimportanceofsmartinverterrequirementsandpreferstoworktowardlong-termsustainablesolutionswheresmartinverterrequirementscanbeappropriatelyappliedtoV2GACinterconnections.Issueproponentsholdtheviewthatasmallnumberofalreadyapprovedandfundedpilotprojectsshouldbeallowedtointerconnect,whichcanprovidedataandreal-worldusecasestoinformfuturepolicymaking.

Utilitypositions:

SDG&EdoesnotsupportanyexemptionsordeviationsfromRule21thatcouldcompromisesafetyordeprivetheIOU’sofadequatetimeneededtocompletelyreviewprojectstoensuresafetyrequirementsaremetandthatprojectscausenoadverseimpactstothegrid.ThesafetyrequirementscurrentlyprescribedinRule21protectutilityworkersandthepublic.Theprescribedstudyprocessesandassociatedtimelinesensurethatinterconnectingprojectapplicantsareadequatelystudiedandthatapplicablesafetyrequirementsarecompliedwithtopreventsafetyorreliabilityissues.

SCEdoesnotsupportanytypeoftemporaryorexperimentalinterconnectionforinterconnectionsystems,whichhasnotbeendeemedtobesafebycertificationunderUL1741.DoingsowouldbeagainstSCE’sprincipleof“safetyfirst”giventhesafetyrisksassociatedwiththeproposal.Thus,totheextentthatcertificationcompliancetoUL1741standardispartoftheexperimental“pilot”interconnectionrequest,SCEcanworkwithinterestedstakeholdersonhowtopotentiallystructurea“temporaryinterconnection.”Inthisvein,SCEvoicedsupporttotemporarilyexemptV2Gsystemsfromsmartinverterrequirements,Rule21SectionHh,astofacilitatepilots,buttheNRTLcertificationwouldberequiredunderSectionLforinvertersusingSectionH(pre“SmartInverters”).ThisexemptionwouldbesupporteduntiltherevisionofIEEE1547.1isupdatedandadoptedunderRule21.

PG&Ebelievesthatthisproposalispremature,sincetheSAEstandardisnotreadyforthisapplicationatthistime.AndPG&Edoesnotsupportthisproposal.Amongotherreasons,similartothosehighlightedbySCEandSDG&E,theUL1741SAistheprimarysafetymechanismthatutilitiesrelyon.

SurveyofpartiesonV2G-AC(mobileinverter)pilotsandresponses:

OnMarch29,2019,theWorkingGroupissuedafive-questionsurveytostakeholdersintheRule21andDRIVEproceedingstosolicitresponsesonwhetherandwhatthecriteriashouldbetostreamlineinterconnectionsforV2G-AC(mobileinverter)pilots.Elevenpartiesrespondedtothesurvey.AcompleterecordofsurveyanswersisprovidedinAnnexEandasummaryofresponsesisgivenbelow.Question1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?“Yes”:CEC,EPRI,Honda,Ford,Fiat,GPI,KituSystems“No”:SDG&E,PG&E“Conditional”:SCEQuestion2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?

Anumberofpilotprojectswerecitedinresponses,includinganEPICpilotbySCE,pilotsunderdevelopmentbyHondaandFord,Miramarfleetmanagement,UCSanDiego,NationalStrategieselectricschoolbuses,LAAirForceBase,andDepartmentofEnergyEASEproject.Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?CriteriaandconsiderationscitedinresponsesincludestandardssuchasIEEE1547,UL1741,andSAEJ-3072,maximumdischargecapacityspecification,electricalcompatibility,chargingconformanceandinteroperabilityrequirements(J2953),aclearlydefinedV2G-ACuse-casethatisdistinctfromandcannotbefulfilledbyaV2G-DCusecase,andEPICstandardsformakingdataandfindingspubliclyavailable.Also,allowtheon-boardinvertertobetreatedasa[single][isolated]componentforsafetystandardsandallowparticipantstosubmitareportshowingcomplianceforthecomponentandnotthevehicle.

UtilityresponsestoQuestion3were:

SCEdoesnotseetheneedtodevelopeligibilitycriteriaforafewpilotprojectswhicharetemporaryinnature.ItisbesttolookateachprojectindividuallyanddeterminewhattypeofexpeditedprocessesunderRule21couldbeutilizedtostreamlinetheinterconnectionforeachofthepilots.PG&EdoesnotbelievethattheprocessforgrantinginterconnectionapprovalsshouldbestreamlinedatthistimeforV2G-ACpilots.Streamliningtheprocessmaybeaddressedafterthecertificationstandardsareapproved.Atthistime,itisnotclearwhetherthereareadditionalvehiclelimitationsorwhethertheSAEstandardwillincorporatethefullUL1741SArequirements.Itisalsonotclearwhetheradditionalmitigationsmayberequiredtoensurethesafetyoftheinterconnection.SDG&E:Itisprematuretoconsidereligibilitycriteriaforastreamlinedinterconnectionprocessuntilsuchastreamlinedinterconnectionprocessitselfhasbeendeveloped.Todate,therehasbeenconsiderationwithinRule21WorkingGroupThreethatanadditionaltechnicalworkinggroupwouldbeappropriatetoconsiderwhat,ifany,automobile-specificstandardsforV2GcouldbeestablishedforRule21interconnections.Suchaworkinggroupwouldbeagoodplacetoconsidersucheligibilitycriteriaforastreamlinedprocess.

Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?CECresponded:“TheCommissionshouldestablishaminimumtargetofatleasttwoOBACCbidirectionalinverterpilots(definedbythenumberofuniquecustomersoraddresses)perutilityterritory.Twowillallowfordatatobegatheredfrommultiplevendors’approaches.TheCommission’sauditofexistingpilots(describedabove)couldaccounttowardthis

minimumpilotrequirement.Inaddition,theCommissionshouldimposeamaximumlimitonthenumberofpilotsthatmayqualifyforthestreamlinedprocess.”EPRIrespondedaboutthetypesofpilots:“Thepilotsthatwillhelpinformtheprocessincludeassessmentoftechnologyreadinessonvehicle,utilityandEVinterconnectionside,valueofapplyingsuchtechnologyatscaleandthebarrierstoscaledeploymentaswellasspecificscenarioswherethevalueismaximized,andmechanismsthatmaximizecustomerparticipationthatleadtotechnologyadoptioninlargenumbers.”Honda,Ford,Fiat,andKituSystemsrespondedthatpilotsshouldnotbelimited.UtilityresponsestoQuestion4were:

PG&EdoesnotbelievethattheprocessforgrantinginterconnectionapprovalsshouldbestreamlinedatthispointforV2G-ACpilots.However,shouldsuchstreamliningberequested,PG&Ebelievesthat:(1)onlypilotsshouldbeeligibleforthisstreamlinedprocess,and(2)thenumberofpilotsshouldbelimitedtooneactivepilotperyearperIOUserviceterritory.Onepilotmaybeactiveandextendformorethanoneyear.SCEdoesnotseetheneedforhavingaparticularcountandaslongasrequirementsunderquestion#1aremet,thenSCEcouldsupportavarietyofpilotprojectsastheyaredeveloped.SDG&E:Itisimprudenttomakeexceptionsforpilotsthatcouldcompromisesafety.However,ifstreamlinedprocedurescanbedevelopedthatwouldnotcompromisesafety,thenitmaybedesirablefromaresourcerequirementandtrackingperspectivetolimitthepilotstoonepilotperservicearea.Thereisconcernthatwithoutsuchalimittherecouldbeariskofcompaniesrushingpilotsthroughawindowofopportunity.

Question5.Anyothercomments?

AnumberofresponsesaregiveninAnnexE.

AnnexE:Issue23,SurveyonV2G-AC(Mobile)PilotsResponseoftheCaliforniaEnergyCommissionQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?Yes,approvalforon-boardAC-coupledelectricvehicle(EV)interconnectionpilotprojectsneedastreamlinedpathtosupporteffortsundertakenbyprivatestakeholdersandotherstateagenciesdemonstratingpre-commercialvehicle-gridintegration(VGI)technologies.ThesepilotsallowallstakeholderstogainagreaterunderstandingofthepotentialmodificationstoelectricalandsafetyrequirementsforaccommodatingEVswithdischargecapabilities.Forexample,attheCEC’sVGISymposiuminOctober2018,HondastatedtheirobjectivetoproduceanddeploymassmarketEVscapableofACvehicle-to-grid(V2G)intheearly2020s.Giventheproposed3to5-yeartimelineneededtoproducenewvehicleproducts,Hondaismakingelectricaldesignandmanufacturingdecisionsimminently.Inaddition,proposedlegislationinSenateBill(SB)676statesanintenttorequireloadservingentitiestoachieveaVGItarget,whichincludescharginganddischarging,ofatleast10percentofannualtotalEVloadby2025andincreasesto25percentby2030.Bystreamliningtheinterconnectionapprovalprocessforon-boardAC-coupled(OBACC)bidirectionalinverterpilotprojects,itwillreducethebarriertoleveragealargernumberofmass-producedV2GvehiclesintheStatetoachievesuchtargetsinatimelymanner,andenablehigherlevelsoftransportationde-carbonization.Question2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?SanDiegoGas&Electric–LawrenceBerkeleyNationalLaboratory(CEC600-13-009)-MiramarTheCECagreement,600-13-009,withLawrenceBerkeleyNationalLaboratory(LBNL)isapilotprojectactivelydeployingEVsandserviceequipmentcapableofbidirectionalpowertransfer.Theproject,OptimizedElectricVehicleFleetManagementandGridTransaction,withouttheguidanceoftheCaliforniaPublicUtilitiesCommission(Commission)willbestalledwithoutadefinedpathforwardbetweentheprojectpartnersandSDG&E.Theprojectisa$4.7Mtotalinvestmentwith$3MfromtheCEC’sAlternativeandRenewableFuelandVehicleTechnologyProgram(ARFVTP)fundingforEVinfrastructuredeployment.ThispilotincludessixEV’sutilizingOBACCbidirectionalinverters.Inconjunctionwiththeagreement,anon-sitebatterystoragesystemisbeingdeployedforintegrationwiththegrid.TheV2Gsystemwillhaveanenergycapacityof140kW.Adrawn-outinterconnectionprocesswilljeopardizetheavailabilityofthealready-encumberedpublicfundsanduseofprocuredequipment.SanDiegoGas&Electric–ElectricPowerResearchInstitute(CECEPC-14-086)–UniversityofCalifornia,SanDiegoTheCECagreement,EPC-14-086,withElectricPowerResearchInstitute,Inc.(EPRI)hascompletedapilotprojectattheUniversityofCalifornia,SanDiegocampus,DistributionSystemAwareVehicletoGridServicesforImprovedGridStabilityandReliability.Theprojectwasa$2.3Mtotalinvestmentwith$1.5McomingfromtheCEC’sElectricProgramInvestmentCharge(EPIC)Programfunding.TheV2Gsystemhasacapacityof~20kW.ProjecthurdlesincludedSDG&Erejectingpermissionforinterconnection.Theprojectpartner’sperspectiveisthatthereisnointerconnection“screening”guidelineforV2GcapableEVsfortheutilities.ThisissueiscompoundedbythedifferenceinthestandardsacceptedbetweentheautomobilemanufacturesandIOUs.ThemanufactureswillnotcertifytheirhardwaretoUL1741,whereastheutilitiesmayrequireUL1741forgridintegrationofOBACC

bidirectionalinverters.SouthernCaliforniaEdison–NationalStrategies,LLC(CECARV-13-011)–ElectricSchoolBusTheCECagreement,ARV-13-011,withNationalStrategies,LLCisdeploying2electricschoolbusesintheTorranceUnifiedSchoolDistrictscapableofV2GwithOBACCbidirectionalinverters.Theprojectisa$3.8Mtotalinvestmentwith$1.5McomingfromtheCEC’sARFVTPfundingforEVinfrastructuredeployment.Theprojecthasinterconnectedwiththegrid,andeconomicmodelingonvehicle-to-buildingdataiscurrentlyunderway,withdatagleanedinMarch2019.AprojectreportisanticipatedApril2019.Thebuseswillbeabletodemonstratefullstandardoperationdefinedaschargingatbase,transportingstudents,andtheadditionofV2Gcapabilitydischargingtothebuilding.SouthernCaliforniaEdison–LBNL(CEC500-11-025)–LosAngelesAirForceBaseTheCECagreementwhichbeganin2012,500-11-025,withLBNLattheLosAngelesAirForceBase(LAAFB),hascompletedapilotprojectwherebothACandDCcoupledbidirectionalinvertersaredeployed.Theprojectwasa$1.5MtotalinvestmentfromtheARFVTP.Thisprojectwascompletedin2017andactivelydemonstratedtheabilitytoachieveV2GcapabilityandtransactionswiththeCaliforniaIndependentSystemOperatorearlyoninEVtechnology.TheAC-coupledinvertersweredeployedacross11EVlightdutyvanshavingacombinedenergycapacityof230kW.PacificGas&Electric–NationalStrategies,LLC.–ElectricSchoolBus(CECARV-13-011)TheCECagreement,ARV-13-011,withNationalStrategies,LLCisdeploying2electricschoolbusesintheNapaValleyDistrictscapableofV2GwithOBACCbidirectionalinverters.Aftera2-yearrecallperiodduetoreliabilityissueswiththeinstalledelectricdrivetrain;theprojecthasnotyetdemonstratedexportsfromthevehicle.KingsCanyonUnifiedschoolisnolongerparticipating,andthe2buseswillbereturningtothevendor.Projectmanagerscontinuetogaugeinterestfromotherschooldistrictsforredeploymentofthesebuses.Thereisnotimetableonanticipatedfutureparticipationfortheremainingbusesorwithinwhichutilityterritory.Theprojectisa$3.8Mtotalinvestmentwith$1.5MfromtheCEC’sARFVTPfundingforEVinfrastructuredeployment.Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Yes,eligibilitycriteriashouldbeconsideredontwodistinctlevelsforanapprovalofpilotprojectsandre-assessedwhentheinterconnectionprocessisreadyforcommercialdeployment.Thefirstlevelofeligibilityshouldrequirehardwarestandardsthatfosterproductapplicationdevelopment.Suchrequirementsshouldincludehardwaretobedeployedinapilotprojectiftheymeetindustrystandard(s)forinvertersacceptabletostakeholdersinboththeautomotiveandelectricutilityindustriessuchasIEEE1547(StandardforInterconnectionandInteroperabilityofDistributedEnergyResourceswithAssociatedElectricPowerSystemsInterfaces),UnderwritersLaboratories(UL)1741(StandardforInverters,Converters,ControllersandInterconnectionSystemEquipmentforUseWithDistributedEnergyResources),orSAEJ-3072(InterconnectionRequirementsforOnboard,Utility-InteractiveInverterSystems).Note:TheUL-1741-SAisanadditionalcapabilitytoUL-1741,butmaynotnecessarilyberequiredforsafeoperationontheelectricalgrid.ThesecondlevelofeligibilitycouldbebasedondefiningthemaximumamountofV2Gdischargecapabilitywhencomparedtoacustomer’sother(non-V2G)demandmeasuredattheirprimaryelectricmeter.SuchaproposalmayallowtheinstallationofsufficientV2GcapacityforratearbitrageordemandmitigationwhilealsopreventingV2Genergydischargefromback-feedingintotheutilitydistributiongrid.Forexample,tobalancetheseobjectivestheCommissioncouldconsiderpilotprojectsforstreamlined

approvalifthetotalvehicleV2Gdischargecapacityislessthanorequalto50percentofthecustomer’sminimumdailyloads(kW),averagedoveroneyear.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?TheCommissionshouldestablishaminimumtargetofatleasttwoOBACCbidirectionalinverterpilots(definedbythenumberofuniquecustomersoraddresses)perutilityterritory.Twowillallowfordatatobegatheredfrommultiplevendors’approaches.TheCommission’sauditofexistingpilots(describedabove)couldaccounttowardthisminimumpilotrequirement.Inaddition,theCommissionshouldimposeamaximumlimitonthenumberofpilotsthatmayqualifyforthestreamlinedprocess.Theintentofthismaximumwouldservenotonlytominimizeanypotentialnegativeutilitygridimpacts,butshouldalsodemonstrateanintentiontoencouragetheutilities’timelydeploymentofV2Gtechnologies,whichasdescribedabove,areanticipatedformassmarketdeploymentinthenearfuture.Onceanindividualutilityhasestablishedfivepilotswithinthecompletedprojectscope,lessonsshouldbeincorporatedintoamoreconsistentinterconnectionprocessforcommercialdeploymentinawaythatiscoordinatedstatewide,amongstutilitiestechnologyproviders,researchers,andpolicymakersliketheCEC.Forthesecondpartofthisquestion,theCommissionmightconsideranyprojectthatmeetsthecriteriaoutlinedin#3aseligibletouseOBACCbidirectionalinvertersinanon-pilotsetting.BasedonthebriefdiscussionsattheRule21workinggroupthusfaraboutthosestandards,J-3072andtheIEEEstandardsappeartobethemostcommonlytestedbystakeholdersforOBACCV2Gimplementation.Question5.Anyothercomments?TheMiramarandUCSDpilots,outlinedintheresponsetoquestion#2above,areeachlocatedwithintheSDG&Eterritory.TheUCSDpilotcompleteditsinterconnectioninearly2018,priortotheMiramarpilotbeingdeniedpermissionforinterconnectioninlate2018.SDG&E’sreasonfordenyinginterconnectionatMiramaristhattheOBACCbidirectionalinverterisnotcompliantwiththeadditionalrequirementsfromtheUL1741-SAstandard.TheMiramarvehicles’OBACCareUL1741compliant,sincetheywereprocuredpriortotheintroductionofUL1741-SA.TheUCSDpilotoperatedusingtheSAEJ-3072standardtodemonstrateV2GcapabilitieswiththeOBACCbidirectionalinverters.TheintentoftheSAEJ-3072standardissimilartoSDG&E’simpositionoftheUL1741-SArequirementinsofarasbothstandardsdefineinverterinteractionswiththeutilitygrid.Additionally,theMiramarpilotisoperatingonaseparateFederally-ownedandoperateddistributiongrid,whichisunderthepurviewoftheDepartmentofDefensefornationalsecurity.TheMiramarandUCSDprojectsaresimilarinthattheyareinstallingV2GequipmentonlargeelectricalsystemsthatareinterconnectedtoSDG&E’sdistributiongrid,butoperatedbyotherentities.TheCommissionshouldconsideradvisingtheutilitiestograntpermissionforpilotsbeingdeployedonalikemicro-gridsthataresufficientlylargesuchthattheimpactontheSDG&Egridmaybeconsidereddeminimis.Overall,theLAAFBandSchoolBuspilots,outlinedintheresponsetoquestion#2above,inthePG&EandSCEterritorieshavebeengrantedapprovalforOBACCbidirectionalinverterinterconnectionspriortoandinlieuoftheRule21WorkingGroupdiscussionofIssue23.Incontrast,tostaff’sknowledge,SDG&EhasnotinterconnectedavehiclewithOBACCbidirectionalinverterforV2Ginitsterritory.Whilethe

workinggrouphasnotachievedaconsensusoninterconnectionrequirements,theinterconnectionprocessesfortheV2Gprocessestodatehavebeenlengthyandinconsistent.TheCommissionshouldconsiderreviewingandconfirmingtheutilities’methodologiesforprojectapprovalsordenialsthatoccurredpriortotheRule21discussions.Thisauditshouldhaveaspecificgoaltoreducethenumberofuniqueprocessesacrosstheutilities.ResponseofHondaQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?YesQuestion2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?HondapilotsareunderdevelopmentQuestion3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Yes.Thecriteriashouldapplytoallvehiclesegments-light,medium,andheavyduty.Additionally,vehiclesshouldberequiredtomeetFederalMotorVehicleSafetyStandardsandIEEE1547.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?No;pilotsshouldnotbelimited.Aslongastheeligibilitycriteriaaremet,theprojectshouldbeapproved,whethercalled/titleda"pilot"ornot.Question5.Anyothercomments?HondaapplaudsthisefforttoallowV2GACpilotsparticipateinastreamlinedinterconnectionprocess.However,requiringUL1741willlimitthescopeandparticipationofanyresultingpilotbecauseitprecludesautomakerparticipationwithV2GACenabledlight-dutyvehicles.HondahasrolledoutacustomerprogramforV1GcalledHondaSmartCharge(https://cleantechnica.com/2018/08/02/emotorwerks-honda-southern-california-edison-offer-nations-first-smart-charging-program/).Bythistimenextyear(April2020),HondaplanstoenableV2Gviasmall-scalepilotprojectunderthisprogram,seekingtoexpandpilotprojectenrollmenttocurrentHondaSmartChargecustomersthroughout2020-2022.HondawouldliketoplantheseV2Gpilotsandseeksappropriateutilitypartnerstoproveouttheprogram.ResponseoftheElectricPowerResearchInstitute(EPRI)Question1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?

Yes.EPRI,KituSystemsandAeroVironmentaswellasFiatChryslerAutomobilescollaboratedonCECEPC14-086On-VehicleV2GprojectwithNuvve/Honda'sEVSAproject,andtheteamwascompelledtoseekassistanceandwaiverfrominterconnectionrequirementsfromUCSDMicrogridasthelocalIOUwasunabletoapproveinterconnection.V2Gtechnologywasdemonstratedtobereadybothon-vehicleandoff-vehicle(i.e.,EVSE).ThestandardsetverifiedisconsistentwithSAEJ2847/3andSAEJ3072aswellasIEEE2030.5,meaningthatonceinterconnectionrequirementsareclarified,on-vehicle,grid-tiedV2Gconvertersshouldbeabletobetreatedinthesamemannerassmartinvertersgiventheirfunctionalandoperationalsimilarity.TheinterconnectionrequirementsdevelopedbySmartInverterWorkingGrouparedirectlyapplicabletoon-vehicleV2Gsystems.Question2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?Asmentionedin#1above,therecentlyconcludedpilotatUCSDmicrogridjointlyamongNuvve/HondaandEPRI/FCAGroup/Kitu/AeroVironmentwouldhavegreatlybenefited.Additionalpilotscanbeestablishedtojointlyassessinterconnectionreadiness,requirementeffectiveness,gridimpacts,customerbenefits,cybersecurity,andvalueassessmentatscale.Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?SpecificeligibilitycriteriathatwillbeextremelyhelpfultoEVmanufacturers,equipmentmanufacturers,utilitiesandthird-partyintegratorswouldbeelectricalcompatibility(EMI,EMC,harmonicdistortion,powerfactor,isolation,voltagesurge/sag,etc),communications/dispatchsimplicity(authorization,authentication,servicediscovery,endtoendcybersecurity,circuitcapacityandgridconditionidentification,weatherdataandDSO/ISOcontrolanddatamessaging,customerinterfaces).EmphasisonopenstandardsthatareapartoftheNISTcatalogofstandardswouldbethecorrectapproachtoscalingthetechnologydeployment.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?Thepilotsthatwillhelpinformtheprocessincludeassessmentoftechnologyreadinessonvehicle,utilityandEVinterconnectionside,valueofapplyingsuchtechnologyatscaleandthebarrierstoscaledeploymentaswellasspecificscenarioswherethevalueismaximized,andmechanismsthatmaximizecustomerparticipationthatleadtotechnologyadoptioninlargenumbers.Thesepilotscandeploythestreamlinedinterconnectionprocesswhichcanbeassessedintermsofeffectivenessandintegrationofsuchdataintodistributionresourceplanningandlong-termprocurementplanningprocesses.Question5.Anyothercomments?V2Gtechnologytoday,especiallyon-vehicle,hasthepotentialtoprovidesignificantgridbenefitsdocumentedintherecentlypublishedCECreport(https://www.energy.ca.gov/2019publications/CEC-500-2019-027/index.html[energy.ca.gov]).Inorderforthesebenefitstoberealized,streamlinedinterconnectionscreeningrequirementshavebeenidentifiedasakeytechnicalbarrier.SmartInverterWorkingGroupisalreadytakingaproactivestancetoallowtheoff-vehicleV2Ginverterstobetreatedassmartinvertersforinterconnectionscreeningrequirements.Sameispossibletodowithon-vehicleV2Gsystemswhichcarryadditionaladvantagesofbeingamobileresource.Oncetherequirementshavebeendefined,scaledpilotscanbeausefulpathwaytovalidatingandconfirmingtherequirementsamongmultiplestakeholders(OEMs,equipmentmanufacturers,third-partyintegrators,utilities,andcustomers)

ResponseofSDG&EQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?Itisnotappropriatetomakeexceptionsforpilotsthatcouldcompromisesafety.SDG&EisanactiveparticipantinworkinggroupsanddiscussionstoconsideralternativeorstreamlinedinterconnectionrequirementsthatwillensurethesafetyandreliabilityofAC-basedV2Gunits.Untilconclusionsarereachedwithconsensusonthecontentandapplicabilityofalternativeorstreamlinedprocesses,allAC-coupledV2G’sshouldadheretotheinterconnectionrequirementsinRule21withoutexception.Thisrequirementisnecessarytoensurethatallinverters,mobileorstationary,havebeentestedandcertifiedtoconformtotherequirementsofUL1741SA,especiallysafetyrelatedmeasuressuchaspreventingageneratorfromback-feedingintotheelectricgridduringanoutage,whichwouldcreatesignificanthazardsforutilitypersonnelworkingonthelinesandthepublic.Question2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?SDG&EhasreceivedseveralapplicationsforV2Gprojects,andonlyonehasbeenapproved:aDC-basedV2GprojectsubmittedbyNuvveatUCSD.SDG&EhasfiledaV2GschoolbuspilotwiththeCPUCandanticipatesadecisionduringthesecondquarterof2019.Thepreliminarilyselectedprojectpartnershaveindicatedadesiretodeployasolutioninwhichtheinverterisontheschoolbus(AC-basedinverter).Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Itisprematuretoconsidereligibilitycriteriaforastreamlinedinterconnectionprocessuntilsuchastreamlinedinterconnectionprocessitselfhasbeendeveloped.Todate,therehasbeenconsiderationwithinRule21WorkingGroup3thatanadditionaltechnicalworkinggroupwouldbeappropriatetoconsiderwhat,ifany,automobile-specificstandardsforV2GcouldbeestablishedforRule21interconnections.Suchaworkinggroupwouldbeagoodplacetoconsidersucheligibilitycriteriaforastreamlinedprocess.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?Asstatedabove,itisimprudenttomakeexceptionsforpilotsthatcouldcompromisesafety.However,ifstreamlinedprocedurescanbedevelopedthatwouldnotcompromisesafety,thenitmaybedesirablefromaresourcerequirementandtrackingperspectivetolimitthepilotstoonepilotperservicearea.Thereisconcernthatwithoutsuchalimittherecouldbeariskofcompaniesrushingpilotsthroughawindowofopportunity.Question5.Anyothercomments?SDG&EisastrongsupporteroftheelectricvehicleindustryandisproudtohavetheopportunitytoenableelectricvehicleadoptionthroughitsmanyCPUC-approvedprograms.SDG&EalsosupportsV2GtechnologyandishopefulforapprovalonitsV2Gpilotreferencedabove.Assuch,SDG&Esupportsthis

workinggroupandthecollaborativepushtofindasolutionforAC-coupledV2G.However,wemustfindatechnicalsolutionthatensuressafetyandreliabilityfirstandforemost.ResponseofFordMotorCompanyQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?Yes,theinterconnectionapprovalprocessshouldbestreamlinedallowingOEMsandUtilitiestolaunchtheirpilotswithoutdelaytonormaltiming.Question2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?PilotsfromFordareunderdevelopmenthencenospecificsareavailableatthistime.Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped? ThestreamlinedprocessshouldapplytoLD/MD/HDvehiclesegments.Toensuresafeoperation,vehiclesshouldcomplywith:a.FMVSSandSAEforon-vehiclerequirements/standardsin-lieuofUL-1741/NFPA70E/NECb.IEEE-1547StandardforInterconnectionandInteroperabilityofDERs.On&OffboardinvertersshouldcomplywithSAEJ-3072.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?TheCPUCshouldnotlimitthenumberofpilotsnorrestricttheparticipationofanypilotnotoriginallynotedasapilotfrombenefitingfromthestreamlinedprocess.Question5.Anyothercomments?CPUCshouldtemporarilyexemptV2GsystemsfrommeetingtheUL-1741SAoranyothersmartinverterrequirementswhilebeingsupplementedbySAEJ3072certification.Endusercustomerexperienceshouldbeanimportantfactorforconsiderationofastreamlinedprocess.V2GDCandsomeV2GACsystemsshouldbeauthorizedviafast-trackapprovalprocesstoenablekeylearnings.CPUCshouldassistwithdevelopinganddefiningthevaluepropositionforV2GDC/ACthatwouldenablerapidadoption.ResponseofPG&EQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?No,pendingthefeedbackandlessonslearnedfromthepilotprojects.OneofthemainobjectivesofpotentialfutureV2G-ACpilotswouldbetoidentifypotentialchallenges,bottlenecks,andlearningsinrelationtointerconnection.Anyproposedstreamliningforgrantinginterconnectionapprovalsshouldbedoneafterthepilotsareexecuted,notbefore,inordertoensureaninformedapproachtoimprovingtheinterconnectionprocess.Giventheverynascentnatureofthemarket,anyproposedstreamliningofthe

interconnectionprocessforV2G-ACprojectsshouldbeinformedbyandbasedon:(1)clearoutcomesandfindingsfromimplementedV2G-ACpilots,and(2)thestate’soverallVGIgoalsandobjectivesthatarestillasubjectofdiscussionthroughthePUC’sVGIWorkingGroupaspartoftheTEOIR.Additionally,anyimprovementsimplementedshouldbegeneralizedtootherinterconnectionapplicationtypestothegreatestextentpossible.Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Perouranswertoquestion1,PG&EdoesnotbelievethattheprocessforgrantinginterconnectionapprovalsshouldbestreamlinedatthistimeforV2G-ACpilots.However,shouldsuchstreamliningberequested,PG&Ebelievesthatthefollowingminimumeligibilitycriteriashouldbedeveloped:(a)theproposedpilotshouldaimtotestaclearlydefinedVGIuse-case,withclearlyidentifiablevalue;thepilotshouldalsodemonstratehowthesaidVGIuse-caseisdistinctfrom,andcannotbeotherwisefulfilledthrough,anEVSE-coupledDCinverter;(b)thepilotshouldcomplywithallrelevantandapplicableinterconnectionrequirementsrelevanttogridsafetyandcybersecurity;(c)theproposedpilotshouldadheretoEPICstandardsintermsofmakingitsdata,findings,andlearningsavailableforpublicuse.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?Perouranswertoquestion2,PG&EdoesnotbelievethattheprocessforgrantinginterconnectionapprovalsshouldbestreamlinedatthispointforV2G-ACpilots.However,shouldsuchstreamliningberequested,PG&Ebelievesthat:(1)onlypilotsshouldbeeligibleforthisstreamlinedprocess,and(2)thenumberofpilotsshouldbelimitedtooneactivepilotperyearperIOUserviceterritory.Onepilotmaybeactiveandextendformorethanoneyear.Question5.Anyothercomments?WhilePG&EsupportstheadvancementofindustryeffortsonthetechnicalaspectsofV2GAC,PG&Emakesthefollowingtwocomments.First,addressingtheregulatoryneedsand/orrequirementsaroundtechnicalaspectsofV2GACshouldnotbedoneinisolationbutratheraspartofabroaderVGIeffortthatclearlyidentifiesandprioritizesVGI’stechnicalchallengesandbarriers.Second,theneedand/orvalueofV2GACshouldbeclearlyarticulated,especiallyrelativetothemoretechnologicallyandcommerciallymatureV2GDC,beforeandinordertojustifydedicatedeffortstoaddressthetechnicalaspectsofV2GACthroughratepayer-fundedpolicyandregulatoryproceedings.PG&Esupportsthecontinuationofprivateindustryeffortstoaddresstheseissues.PartofthoseprivateindustryeffortsmaybethroughtheparticipationinSAEactivities.Forexample,someautomakershaveexpressedconcernwithULrequirementsbecausetheytakeuptoomuchspaceinthevehicle.ThisautomotivedesignissueaffectingV2GACisbestaddressedbySAEratherthanRule21WorkingGroup.AfterSAEdeveloptheautomotiveequivalentofUL-1741SA,IOUscanreviewitforadequacyand,ifadequate,adoptitinRule21.ResponseoftheGreenPowerInstituteQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?Yes,theCommissionhasmadeitclearthatitwants"dramaticstreamlining"ofallinterconnection(asit

hasdescribedintheDRPFinalGuidanceandvariousotherCommissiondecisionsanddocuments).Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?ThelargemajorityofEVinterconnectionsshouldbestreamlined,butan"offramp"shouldalsobeprovidedformoreunusualorcomplicatedcases.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?GPIfeelsthatweareatapointinthedevelopmentofinterconnectionprocessesandrelatedtechnologiesthatwedon'tneedpilotsforEVinterconnection.Rather,EVinterconnectionshouldbeincorporatedintoportalsatthistimeonatestbasisandIOUsshouldreportbackevery3monthsonhowthenewprocedures,oncedevelopedanddeployed,areworking.Question5.Anyothercomments?Wemayneedtodiscussfundingoftheseimprovementsb/cIOUsaretryingingeneraltorate-basesuchupgradesratherthanexpensethem.GPIsupportsreasonablerate-basingofthesecosts.ResponseofFiatChryslerQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?YesQuestion2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?DoEEASEprojectwithSCEQuestion3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Yes.ThevehicleOEMcansubmitareportoftheonboardchargingsystembeingcomplianttotherequirementsandincludethesafetyaspects.ULandIEEEstandardsdonotapplytovehiclesbutSAEstandardsusedthesetoidentifytheinverterrequirementsinJ3072andconformancerequirementscanbeaddedtoJ2953thatincludeschargingconformanceandinteroperabilityrequirements.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?ThereshouldnotbelimitssincetheindustryiscontinuingtoimplementmoreRule21featuresandthenupdatetheSAEautomotivestandardsaccordingly.AswecontinuetomatchvehicleV2Gwithsolarandstationarystorage,itisclearthatwecancontinuetoimprovethesystemtomakethegridmorerobustandallowCAtomeetitsPEVtargets.Question5.Anyothercomments?

VehiclesareusingTelematicstoconnectwithutilityserverspriortoreachingachargingsiteandcanprovideadvancedplanninginformationfortheutilityandvehicle.OncethevehicleconnectseitherWiFiorPLCcanbeusedformorerefinedcommunicationatthesite.Thecustomersareconnectedviatheirphonesandcangetalertsortextcommunicationforanyadjustmentsthatmayarisewhileconnectedandabletocontinuallyadjustthecharging/dischargingsessiontomatchthegridrequirements.PilotsneedtoembracethiseveradjustinganddynamicapproachforadvancedplanningthrumicromanagementstagestoutilizethePEVresourceswhilestillmeetingthecustomer'sdesiretohavetheirvehiclechargedtoanadequatelevelwhenusedagainforthenextroute.ResponseofGeorgeBellino,ConsultantQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?YesQuestion2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?Nuvve/EDFPrograminUK,recentlycompletedCEC14-086Project(finalreportpublished),SCEDOEEASEProjectQuestion3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Yes,therearesignificantpotentialapplicationsforamobilestorageresourceincludingtheDODmilitarybasesandemergencyresiliencyneeds.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?Nolimitshouldbeestablished.Needtohaveopeneligibilityforpilotstomaximizestakeholderinvestmentintechnologydevelopmentandsafetyvalidation.Pilotlearningsneedtoinformregulatory/policydevelopmentandstandardsdevelopmentbasedonlearnings.CollaborationwillbecriticalbetweenOEMs,EVSEmanufacturers,utilities,andthestandardsbodies.TheremaybeneedtoaddressV2HandV2BapplicationstoinformutilityconnectionsafetyrequirementsandintegrationrequirementsofV2GwithlocalDERassetsResponseofKituSystemsQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?YesQuestion2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?

SCEDoEEASEprojectQuestion3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?Yes.Specifically,allowtheon-boardinvertertobetreatedasacomponentforsafetystandardsandallowparticipantstosubmitreportshowingcomplianceforthecomponentandnotthevehicle.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?NolimitsasthereisalotofdevelopmentrequiredbyManufacturespriortointerconnection.ThemorethepilotswillencouragemoreinvestmentandallowCAtomeetitsEVtargetsResponseofSCEQuestion1.ShouldtheprocessforgrantinginterconnectionapprovalstopilotprojectsinvolvingAC-coupledEVsbestreamlined?TotheextentthepilotsDERprojectsmeettheRule21interconnectionrequirementswhichpertaintosafetyandreliability,SCEwouldexploreprocessestoevaluatepilotsduringtechnicalevaluationandoverallinterconnectionprocess.Asdiscussedinrecentworkinggroupdiscussions,SCEemphasizesagainthatDERpilotsthatdonotmeetsafetyrequirementsasprovidedunderRule21willnotbesupported.SCE’sexperiencewithpastprojectsshowedthatthedelayintheinterconnectionprocesswasmostlyonDERinabilitytomeetsafetyrequirements(inparticular,certification).Question2.Whatexistingpilotsareseekingthistypeofinterconnectionandwhatistheircurrentstatus?DiscussionsattheteamlevelconfirmedthatwehavecurrentlyintheinitiationphaseanEPICPilotVehicletoGridUtilizinganOnboardInverterintendingtodemonstrateJ3072interconnectionsamongotheritems.Inaddition,SCEhasprocessedanAC-coupledV2Gprojectutilizingnon-exportingprovisionofRule21soastosupporton-siteload.Question3.Shouldspecificeligibilitycriteriaforsuchastreamlinedprocessbedeveloped?SCEdoesnotseetheneedtodevelopeligibilitycriteriaforafewpilotprojectswhicharetemporaryinnature.ForSCE,itisbesttolookateachprojectindividuallyanddeterminewhattypeofexpeditedprocessesunderRule21couldbeutilizedtostreamlinetheinterconnectionforeachofthepilots.Question4.ShouldtheCommissionestablishatargetnumberofpilotsoralimitonhowmanypilotsmayqualifyforthestreamlinedprocess?Shouldonlypilotsbeeligibleforthisstreamlinedprocess?SCEdoesnotseetheneedforhavingaparticularcountandaslongasrequirementsunderquestion#1aremet,thenSCEcouldsupportavarietyofpilotprojectsastheyaredeveloped.Question5.Anyothercomments?NoneatthistimeandSCEappreciatesbeingallowedtosubmitfeedbacktothequestionsabove.

Issue24ShouldtheCommissionmodifytheformulaforcalculatingtheCost-of-Ownershipchargeand,ifso,how?PROPOSALSUMMARIESProposal24-a.Non-consensusInapplyingCost-of-Ownership(COO)tonewfacilities,theutilityandratepayerswillneitherbesubjecttoadditionalcostsresultingfromthenewgeneratorinterconnectionnorinappropriatelytransfercoststothegenerationapplicantthattheutilitywouldhaveotherwisenormallyincurred.Utilitiesmay,attheirdiscretion,determinethatthefacilityreplacementis“like-for-like”intermsofCOOimplicationsandnoCOOwouldbeallocatedtotheapplicant.

Supportedby: CALSSA,CleanCoalition,GPI,TeslaOpposedby: PG&E,SCE,SDG&E,TURN

Proposal24-b.Non-consensusThefollowingthreeCOOreplacementcostsoptionsshouldbemadeavailabletotheinterconnectionapplicantwhilemaintainingratepayerindifference:(1)ChargeforReplacementinperpetuity,(2)ChargeforReplacementforfixedtermin10-yearincrements,and(3)Customerresponsibilityforactualcostofreplacementifandwhenneeded(withcustomerpre-authorizationofemergencyreplacementofupgradedfacilitiesforatermagreedintheGIA).

Supportedby: CALSSA,CleanCoalition,GPIOpposedby: PG&E,SCE,SDG&E,TURN

Proposal24-c.Non-consensusWhenreplacingexistingfacilitieswithnewfacilitiesthatarenotdesignatedas“like-for-like”replacementsbytheutility,theinterconnectionapplicantwillbecreditedfortheutilitycostofownershipoftheequipmentthatwasreplacedandonlybechargedanynet-additionalCOO.Net-additionalCOOisdefinedastheCOOthatwouldnothaveotherwiseoccurred,ifnointerconnectionrequesthadbeenmade.Thatis,net-additionalCOOexcludestheportionofCOOofthereplacementequipmentthatrepresentsthecontinuedshareorobligationofratepayersforthatequipment,undertheprincipleofrate-payerindifference.

Supportedby: CALSSA,CleanCoalition,JKBEnergy,TeslaOpposedby: PG&E,SCE,SDG&E,TURN

BACKGROUNDBasedonthescopeofIssue24asscopedinthisproceedingandtheissuebriefprovidedbyCleanCoalition,partiessoughtduringtheWorkingGrouptodeterminewhetherCost-of-Ownership(COO)chargesarebeingappropriatelyappliedtogeneratorinterconnectionapplicants,identifybestpracticesandinconsistenciesbetweenutilities,andrecommendorproposechangestoconsistentlyreflectbestorpreferredpracticesregardingCOOapplicationinRule21.PartiesagreedthatthepurposeandintentofCOOchargesoninterconnectionapplicantsistopreventshiftingcostsfromonecustomerclasstothebroaderclassofcaptiveratepayers,suchthattheutilityandratepayerswillneitherbesubjecttoadditionalcostsresultingfromthenewgeneratorinterconnectionnorinappropriatelytransfercoststothegenerationapplicantthattheutilitywouldhaveotherwisenormallyincurred.Partiesacknowledgedthataccountingpracticesmaynotallowprecisedeterminationofactualindividualcosts,andsuchdeterminationswouldbeimpracticaltoattempt.Assuch,theuseofstandardizedratesforCOOappliedbasedonthecapitalcostoffacilitiesisareasonableandacceptablepracticesupportingconsistencyandeaseofapplication,andavoidsanyaggregatecostshiftsbetweenratepayersandgenerationapplicants.PartiesfurtheracknowledgedandagreedthatthestandardizedCOOratesthemselves,aspercentagesofcapitalcosts,arenotwithinthescopeofthisproceeding,andaredeterminedindividuallyforeachutility.Instead,partiessoughttodeterminewhattypesofcostsandcostcomponentsare,orshouldbe,subjecttothestandardizedCOOrates.ThisincludestheallocationofCOOtocustomer-financedcapitalcostsversusutility-financedcapitalcosts,andhowandwhetherthecorrectandappropriateportionsofthosecostsaresubjecttothestandardizedCOOratesundervariousscenarios.TwootherissuesthatwerediscussedbytheWorkingGroupweredeterminedtobecurrentutilitypractices,sotheyarenotincludedasproposalsbutthisreportincludesthemtomemorializerelevantdiscussionpoints.First,depreciationandrateofreturnaretwoelementswithintheCOO.TherewasuncertaintyduringWorkingGroupdiscussionswhetherutilitieschargefordepreciationandrateofreturnforfacilitiesthatarepaidforbycustomers.Intheend,theutilitiesconfirmedthattheydonotchargetheseitemsforfacilitiestheydidnotfinance.Second,COOshouldnotbechargedfornon-capitalexpenses.TheWorkingGroupdiscussedexamplesofsuchchargesbeingerroneouslychargedinthepast,butitwasagreedthatitshouldnothappen.Changestosettingsofexistingutilityequipment,engineeringreviews,inspections,andprojectmanagementarenotsubjecttoCOO.

DISCUSSIONProposal24-a.Non-consensusInapplyingCost-of-Ownership(COO)tonewfacilities,theutilityandratepayerswillneitherbesubjecttoadditionalcostsresultingfromthenewgeneratorinterconnectionnorinappropriatelytransfercoststothegenerationapplicantthattheutilitywouldhaveotherwisenormallyincurred.Utilitiesmay,attheirdiscretion,determinethatthefacilityreplacementis“like-for-like”intermsofCOOimplicationsandnoCOOwouldbeallocatedtotheapplicant.

Supportedby: CALSSA,CleanCoalition,GPI,TeslaOpposedby: PG&E,SCE,SDG&E,TURN

Proponentsprovidedindicativescenarioexamplesofcommondistributionfacilitiesupgradeswherelike-for-likecomparabilityusuallyexists:

• Existingpoleorequipmentnotupgradedbutrelocatedandcontinuedinuseforsamecustomers(andnewcustomer)

• Minorpoleupgrade-existingsinglewoodpolereplacedwithnextsizelargerwoodpoleProponentsalsoprovidedindicativescenarioexamplesofcommondistributionfacilitiesupgradeswherelike-for-likecomparabilitycouldexist,dependingoncircumstances:

• Majorpoleupgrade-existingfourwoodpolesreplacedwithtwosteelpoles• Transformerupgrade-existingtransformer,upgradedtohighercapacitytoservesame

customersplusanewgeneration/storageapplication• Singlecustomerupgrade--existingdistributionsystemlineextensionandtransformer

providingloadservicetoasinglecustomer,upgradedtoaccommodateanewgenerationinterconnectionrequest

• Singlecustomerupgrade--existingcustomerservicelinedropprovidingloadservice(loadsideofpointofcommoncouplingwithutilitygrid,utilitysideofmeter),upgradedtoaccommodateanewgenerationinterconnectionrequest

PG&Eposition:

“Like-for-like”shouldbedefinedasequivalentfacilities–incostandfunction–suchthattheutilityandratepayerswillneitherbesubjecttoadditionalcostsresultingfromthenewgeneratorinterconnectionnorinappropriatelytransfercoststothegenerationapplicantthattheutilitywouldhaveotherwisenormallyincurred.Basedonthisdefinition,therearenocasesininterconnectionwhereageneratorwouldbeassignedalike-for-likeupgrade.

Additionally,theremovalofequipmentdoesnotreducethenetplantcomponentofratebasesincetheoriginalcostoftheassetisdeductedfromboththegrossplant-in-serviceandtheaccumulateddepreciation,sonetplantisnotreduced,andourrevenuerequirementisnotreducedwhenplantandequipmentisremoved.(Indeed,thecostofremovingequipmentischargedtothedepreciationreserveandincreasesratebase.)Theinstallation

ofnewequipmentincreasesplantandratebaseandthusincreaseourrevenuerequirement.Assumingtheinterconnectioncustomerpaidforthenewequipment,therewouldbenoincreaseinnetplant.

Thescenarioslistedinthisproposalarenottrulylike-for-likebecausethereisacostincreaseassociatedwithrelocationorupgrade.EachofthesescenariosisanexampleofanupgradedfacilitythatisrequiredtoaccommodateaninterconnectionrequestandshouldbesubjecttoCOO.Inthecaseofthetransformerupgradeexample,ifCOOwasn’tapplied,ratepayerswouldthenbepayingfortheCOOoftwotransformers(theexistingtransformerandthenewtransformerrequiredtoservetheinterconnectionrequest)

SCEposition:

AsdiscussedthroughoutworkshopdiscussionsonthistopicandalsorepresentedinSCE’sresponsedatedApril9,2019toaCommissionDataRequestalongwithwrittenresponsetostakeholderquestionsdatedApril24,2019,sincepracticesandgoverningrulesrelatedtotheCostofOwnershipimpactcustomerclassesbeyond“interconnectingcustomers,”reviewofCOOrelatedissuesarebettersuitedforreviewwithinaGeneralRateCase.Bywayofbackground,COOrulesareestablishedunderRule2andapplytoallfacilitiesrequestedbyanapplicantwhichareinadditiontoorsubstitutionforstandardfacilities.Theyinclude,butarenotlimitedto,alltypesofequipmentnormallyinstalledbySCEinthedevelopmentofitsservicetoacustomeroracustomer’sreceiptorutilizationofelectricalservice.Fundamentally,theCOOoffsetsSCE’srevenuerequirementforoperatingandmaintaining(alongwiththecapitalrelatedrevenuerequirementwhenapplicable)fortheunderlyingasset.InparticularforIssue24-a,SCEdisagreesthereisconsensusonthisissue.SCEdoesnotchargeongoingO&Mforlike-for-likereplacements,forexample,whenreplacinga35-footwoodpolewitha45-footwoodpole.Itisbecauseequipmentismoresimilarthandifferentthan,forexample,replacingthewoodpolewithasteeltower.(Inthelattercase,forexample,SCEdoeschargeongoingO&M.)SCEpointedoutduringWorkingGroupdiscussionsthatnon-utilitystakeholderswantedtokeepthelike-for-likepolicy,butreceivepartialcreditforthepreviousO&Mcostsinthecaseofanon-like-for-likereplacement.Thetwocasescannotbelookedatinisolation.Ifadditionalgranularityisdesiredtocalculatetheincremental/decrementalcostofO&Mwhenanassetisreplaced,thisshouldbelookedatinthecontextofaGeneralRateCaseasfurtherdiscussedabove.Bydefinition,ifongoingO&Mcostsarereducedforinterconnectioncustomersfromthecurrentpractice,thosecostswouldflowthroughtoratepayers,whoarenotallrepresentedintheWorkingGroup,whichimplicatesrate-makingissuesthatareoutofscopeforthisportionoftheproceeding.

SDG&Eposition:

SpecialFacilitiescoveredundertheRule2tariffarenewfacilitiesordedicationsofexistingfacilities,requestedbyanapplicant,whichareaddedtoorsubstitutedforthestandard

facilitiesthattheutilitywouldnormallyinstall,maintain,anduse.SpecialFacilitiesarethepropertyoftheutility,whichisresponsiblefortheiroperation,maintenance,andreplacement.However,theyarenotfundedthroughtheGRCprocess,noraretheypaidforbyrates.Asaresult,COOassessmentsshouldnotshiftcostsbetweenpartiesandshouldthusbebasedontheconceptofratepayerindifference.SDG&Ebelievesintheprincipleofequitythathaslongbeenembeddedinutilityregulation;ratepayerindifferencethusmeansthatnocustomerclassshouldsubsidizeanothercustomerclass.SuchequityiswellestablishedandfoundedupontheseminalworksofAlfredKahnandJamesBonbright.DistributedenergyresourcesinterconnectingunderRule21shouldbetreatedthesamewaythatanyothertypeofbusinessorcustomerclassrequiringSpecialFacilitiesunderRule2aboveandbeyondstandardloadserviceunderRules15and16.AllSDG&EcostsnotrequiredtoserveutilityratepayerloadrequirementsandincludedinaGRCauthorizationprocessshouldbeappropriatelychargedtotherequestingapplicant.CustomerrequeststhatrequirefacilitiesbeyondnormalservicefacilitiesalreadyprovidedbySDG&EunderRule15“DistributionLineExtensions”andRule16“ServiceLineExtensions”areconsideredSpecialFacilities,whicharedefinedandgovernedundertheRule2tariff.Rule2SpecialFacilitiesisnotexclusivetoGenerationFacilitiesbutratherencompassestheentirerangeofcustomerclassesinanon-discriminatorymanner.WhenacustomerrequestsaSpecialFacilityundertheRule2tariffrequirements,thecostsprovidedtothecustomerareafinancialestimatewhichisdesignedtocoverthefullcostofownership,whichincludestheconstruction,designandinstallationofthedesignatedequipmentandtherelatedexpensesincurredthroughitsuse.IfthespecialfacilityreplacesequipmentthathadbeenpreviouslyinstalledtoservetheutilityratepayersandwasapprovedthroughitsGRCprocess,SDG&Ewouldcontinuetorecoverthecostoftheassetfromratepayers.SDG&Edoesnotrecoveritsfixedassetscostupfrontfromratepayers,therecoverymechanismoccursovertimethroughdepreciationexpenseovertheaverageservicelifeoftheasset.Whenafixedassetisremovedfromservice,SDG&EfollowstheFERCregulatoryguidelinestoretiretheasset,consistentwithitsgeneralpractices.Asstatedinthisdiscussion,“like-for-like”replacementsonlyachieveratepayerindifferenceiftheexistingassetsareattheveryendoflifeandfullydepreciated.Iftheassetbeingreplacedhasremainingundepreciatedcosts,thentheratepayercontinuespayingfortheremovedassetandalsopayingforthenewreplacementassetiftheDERcustomersareallowedtoavoidtheCOOandshifttheirimpactoncoststootherexistingratepayers.COOrelativetotheoperatingandmaintenancecomponentsisnotspecificallyknownassetbyassetbutratherasanaverageforallassetsintheclass.ThisproposalifadoptedasproposedbytheDERcustomerswouldnothaveanegativeimpactonSDG&E’sshareholdersitwouldonlyshiftcostsfromthemtoalltheotherexistingratepayers.Thisproposalaspresentedunfairlybenefitsonegroup,theDERcustomerasallothercustomerandratepayersbearadditionalcosts.

Proposal24-b.Non-consensusThefollowingthreeCOOreplacementcostsoptionsshouldbemadeavailabletotheinterconnectionapplicantwhilemaintainingratepayerindifference:(1)ChargeforReplacementinperpetuity,(2)ChargeforReplacementforfixedtermin10-yearincrements,and(3)Customerresponsibilityforactualcostofreplacementifandwhenneeded(withcustomerpre-authorizationofemergencyreplacementofupgradedfacilitiesforatermagreedintheGIA).

Supportedby: CALSSA,CleanCoalition,GPIOpposedby: PG&E,SCE,SDG&E,TURN

ThefollowingCOOreplacementcostsoptionsshouldbemadeavailabletotheinterconnectionapplicantwhilemaintainingratepayerindifference:

• Chargeforreplacementinperpetuity-withcustomeroptionofamonthlyorlumpsumassessment(noadditionalcosttocustomerifreplacementoccurs)

• Chargeforreplacementforfixedtermin10-yearincrements(i.e.,10,20,30years)-withcustomeroptionofamonthlyorlump-sumassessment(noadditionalcosttocustomerifreplacementoccursduringthefixedterm,andcustomerresponsibleforactualcoststhereafter)

• Customerresponsibilityforactualcostofreplacementifandwhenneeded(withcustomerpre-authorizationofemergencyreplacementofupgradedfacilitiesforatermagreedintheGIA)

ProponentCleanCoalitionposedthequestion:towhatextentdoesreplacementcostfactorintoCOOcharges?Togaininsightintothisquestion,theWorkingGroupreviewedanexampleprovidedbySCEofaddedfacilitiesratecomponents.Inthisexample,forannually-paidCOOonacustomer-financedfacility,annualreplacementcostaccountsfor22%oftotalCOOwhenreplacementiscoveredinperpetuity,5%oftotalCOOwhenreplacementiscoveredfor20years,and0%whenthecustomerassumesfullresponsibilityforreplacementcostwhenandifreplacementisrequired.CleanCoalitionconcludedthatreplacementcoverageoptionscangreatlyaffectinterconnectioncustomercosts,withoutaffectingratepayers.SCEpointedoutthatongoingO&Misrelativelysteadyfromyeartoyear,butreplacementcostischargedonaconstantrecurringannualbasis(straight-linebasis),eventhoughonewouldexpectthereplacementstocomelaterintheasset’slife.

ProponentCleanCoalitionalsoposedthequestion:IftheservicelifeoftheequipmentexceedsthetermoftheGIA,isitappropriatetoassessreplacementcosts?TheWorkingGrouplearnedthataGenerationInterconnectionAgreements(GIA)remainsineffectinperpetuity,untilcanceledbycustomer(althoughSCEGIA’sprovidefor30-yearterms).However,CleanCoalitionconcludedthatwherechargestocovertheriskofreplacementaredefinedforalimitedperiodalignedwiththeoperationallifeofthecustomer’sgenerationfacility,thereplacementcostcomponentofCOOisgreatlyreduced,andtheremainingcomponentsofCOOmaybesignificantlyreduced.Thiscansignificantlyreducethecustomercostofaddingdistributedgenerationorstoragewhenupgrades

areneeded,withouttransferringriskorburdentootherratepayers.Forexample,acustomerelecting20-yearreplacementcoveragepaidasaone-timepaymentwouldseemorethana40%reductionintotalCOOcosts(reducedfrom$82,000to$48,000ona$100,000distributionupgrade).CleanCoalitionassertedthatifreplacementcostchargesarenotalignedwithactualreplacementcosts,thiswillresultinapositiveornegativecostshiftbetweentheinterconnectioncustomerandotherratepayers.SCEpointedoutthatthiswouldbeaveragereplacementcostsoveranumberofyears,andthereisastandardratethatisadjudicatedintheGRC.Asnotedpreviously,PartiesacknowledgedthattheuseofstandardizedratesforCOOappliedbasedonthecapitalcostoffacilitiesisreasonableandacceptablepracticesupportingconsistency,easeofapplication,andavoidsoverallshiftsincosts.UtilitiesdifferinhowtheyaddressCOOreplacementcharges.SCEputforwardtheopportunityforreplacementcoveragetobeacustomerelectiveassociatedwithmonthlyCOOpayments,butdidnotofferthiswiththeone-timepayment,andlimitedtermcoveragehasnotbeenimplemented.PG&Edoesrequirecoveragecalculatedwithouttermlimit(inperpetuity),butstatesthatthattheyrefundunusedone-timepaymentreplacementcostsbasedonannualizedinsurance/riskassessmentwheneverthecustomerterminatestheGIA.SDG&Eincludesreplacementcostasafactorinthecostofownershipthatispaidbytheapplicant,baseduponthespecificequipmentrequestedbytheapplicant.Thesepracticesavoidunder-collectionfrominterconnectioncustomers,butdonotallavoidover-collection,potentiallyburdeninginterconnectioncustomerswithexcesscharges,especiallyifpaidasalumpsum.Utilitypositions:

PG&Edoesnotsupportaprovisiontoseparatelyidentifyreplacementfacilitiesinthespecialfacilitycostofownership.ThereplacementcomponentinPG&E’sspecialfacilitycostofownershipisdeterminedinratecaseproceedings,includingourGRC,andhavingseparatecomponentsforreplacementcreatesexcessiveadministrationburden.SDG&E’spositionisconsistentwiththeviewsexpressedbySCE,thegoverningrulesrelatedtotheCostofOwnership,whichincludesreplacementcost,impactcustomerclassesbeyond“interconnectingcustomers,”reviewofCOOrelatedissuesarebettersuitedforreviewwithinaGeneralRateCase.OverallCOOassessmentsshouldnotshiftcostsbetweenpartiesandshouldthusbebasedontheconceptofratepayerindifference.SDG&Ebelievesintheprincipleofequitythathaslongbeenembeddedinutilityregulation;ratepayerindifferencethusmeansthatnocustomerclassshouldsubsidizeanothercustomerclass.Totheextent,thatGenerationInterconnectionAgreementsremainineffectinperpetuityallcostsnotrequiredtoserveutilityratepayerloadrequirements(includingreplacementofthespecialfacilities)shouldbeappropriatelychargedtotherequestingapplicantandnotbebornebyratepayers.

SDG&Eincludesreplacementcostasafactorinthecostofownershipthatispaidbytheapplicant,baseduponthespecificequipmentrequestedbytheapplicant.SDG&EdoesnotsupportaspecialorpreferentialaccountingmechanismforDERcustomers.SDG&E’spositionisthattheservice-lifeofreplacementequipmenthasnobearingontherequirementoftheratepayertobeartheburdenofthecostofupgradedequipmentasrequestedbyanapplicant.Thisreplacementequipmentisinstalledfortheapplicant’sbenefitandattheapplicant’srequest,andtheolder,replacedequipmentsupportedtheratepayers’needswithnoadditionalcostsrequired.TotheextentthataGIAcontinuesinperpetuity,SDG&Eexpectsthatitwillberequiredtoreplacetheupgradedequipmentatsomepointwithoutanyadditionalcosttotheapplicant(e.g.withratepayerfunds).SCE:AsdiscussedwithProposal24-a,throughoutworkshopdiscussionsonthistopicandalsorepresentedinSCE’sresponsedatedApril9,2019toaCommissionDataRequestalongwithwrittenresponsetostakeholderquestionsdatedApril24,2019,sincepracticesandgoverningrulesrelatedtotheCostofOwnershipimpactcustomerclassesbeyond“interconnectingcustomers,”reviewofCOOrelatedissuesarebettersuitedforreviewwithinaGeneralRateCase.Bywayofbackground,COOrulesareestablishedunderRule2andapplytoallfacilitiesrequestedbyanapplicantwhichareinadditiontoorsubstitutionforstandardfacilities.Theyinclude,butarenotlimitedto,alltypesofequipmentnormallyinstalledbySCEinthedevelopmentofitsservicetoacustomeroracustomer’sreceiptorutilizationofelectricalservice.Fundamentally,theCOOoffsetsSCE’srevenuerequirementforoperatingandmaintaining(alongwiththecapitalrelatedrevenuerequirementwhenapplicable)theunderlyingassetsupportingratepayerindifference.Therefore,COOrefinementsarebettersuitedforreviewwithinaGeneralRateCaseduetothecomprehensivenatureandpotentialrateimpactsoftheissuealongwiththegoverningrulesthatarehousedoutsideofRule21itself.Inaddition,SCE’scurrentpracticesallowfortheoptionofreplacementcoverageunderSCE’sexistingRule2tariff,andwhilecustomersmayappreciatelowercostsassociatedwithreplacementsintheearlyyearsofacontract(assumingthatareplacementoptionwouldbeallowedpostcontract),whenthoseyearsexpire,thecostofpurchasingreplacementcoverageforadditionalyearswilllikelybeprohibitive.Also,again,establishingnewrateoptionsisbettersuitedforreviewwithinaGeneralRateCasewherebothaffectedcustomersandpotentialratepayerimpactscouldbereviewed.

Proposal24-c.Non-consensusWhenreplacingexistingfacilitieswithnewfacilitiesthatarenotdesignatedas“like-for-like”replacementsbytheutility,theinterconnectionapplicantwillbecreditedfortheutilitycostofownershipoftheequipmentthatwasreplacedandonlybechargedanynet-additionalCOO.Net-additionalCOOisdefinedastheCOOthatwouldnothaveotherwiseoccurred,ifnointerconnectionrequesthadbeenmade.Thatis,net-additionalCOOexcludestheportionofCOOofthereplacementequipmentthatrepresentsthecontinuedshareorobligationofratepayersforthatequipment,undertheprincipleofrate-payerindifference.

Supportedby: CALSSA,CleanCoalition,JKBEnergy,TeslaOpposedby: PG&E,SCE,SDG&E,TURN

DuringWorkingGroupdiscussions,therewascontinueduncertaintyaboutwhethersomeformofnet-additionalaccountingofCOOiscurrentlyemployedinpractice,underwhatcircumstances,andtheaccountingmethodologiesinvolved.Ingeneral,partiesrecognizedthatutilityaccountingofCOOactualcostsisnotprojectspecificbutaggregatedandaddressedinGeneralRateCases,andthatCOOaccountingisnotspecifictoRule21only,asCOOtreatmentappliestoallSpecialFacilitiesgovernedunderRule2andhasimpactsbeyondonlyinterconnectingcustomers.

ThereareanumberofpotentialmethodologiesbywhichtocalculateCOOwhenexistingfacilitiesarebeingreplaced.Forexample,referencewasmadetoamethodologyusedbyPG&EforRules15and16,inwhichadummyscenarioiscreatedtoreflectthewholesystemwithouttheupgrade,andthencosts(includingO&M)arecomparedtothesystemwiththeupgrade,andthedifference(capitalandO&Mseparately)iscalculated.Thismethodology,ifappliedtoRule21interconnections,wouldproducesomethingsimilartonet-additionalCOO.Proponentsprovidedindicativescenarioexamplesofcommondistributionfacilitiesupgradeswheresometypeofnet-additionalmethodologycouldbeusedforRule21:

• Majorpoleupgrade-existingfourwoodpolesreplacedwithtwosteelpoles• Transformerupgrade-existingtransformer,upgradedtohighercapacitytoservesame

customersplusanewgeneration/storageapplication• Single-customerupgrade--existingdistributionsystemlineextensionandtransformer

providingloadservicetoasinglecustomer,upgradedtoaccommodateanewgenerationinterconnectionrequest

• Single-customerupgrade--existingcustomerservicelinedropprovidingloadservice(loadsideofpointofcommoncouplingwithutilitygrid,utilitysideofmeter),upgradedtoaccommodateanewgenerationinterconnectionrequest

Proponentpositions:

CALSSA:Rule21practicesshouldallocatetheCOOcoststotheinterconnectioncustomerinkeepingwiththeprinciplethattheutilityandratepayerswillneitherbesubjecttoadditionalcostsresultingfromthenewgeneratorinterconnectionnorinappropriatelytransfercoststothegenerationapplicantthattheutilitywouldhaveotherwisenormallyincurred.Forexample,ifa500-kVAtransformerthatservesmultiplecustomersisreplacedwitha750-kVAtransformerbecauseoneofthecustomersinstallssolar,thenewtransformerstillprovidesservicesforthenon-solarcustomers.TheCommissionhadpreviouslycommittedallofthecustomerstopayingCOOforthelifeofthe500-kVAtransformer.Thattransformerisnowbeingretiredearly,buttheservicesarestillbeingperformedandcustomersshouldcontinuepayingforthem.Thenewsolarcustomershouldpayfortheincrementalincreaseincostsforoperationsandmaintenanceofthelargertransformer.

CleanCoalition:UtilitieshaveindicatedthatcurrentaccountingpracticesmayremovethereplacedfacilitiesfromtheirCOOandthiswouldresultinanundercollectionifthegenerationcustomerisonlychargedforthenetadditionalCOOresultingfromtheirinterconnectionrelativetotheCOOthatwouldhaveoccurredbutforthatcustomer. Ifthisisthecasethenthisaccountingpracticeandshortfallshouldbeaddressedintheappropriateproceeding,butitisnotappropriatetoallocatecoststotheinterconnectioncustomerunderRule21tariffpracticesifthesecostswouldhavebeenincurredbytheutilityanywayandwouldthereforecreateacostshiftthatimproperlyhinderscustomerDERdeployment.

TURNposition:

TURNstronglyopposesanypotentialsubsidyoftheinterconnectingprojectbyratepayers.Anymethodologythatcouldpotentiallyresultinacostshiftorsubsidy,whetherduetodifferencesinaccountingpractice,indirectcoststhatareoccurred,orotherpotentialreasonsshouldbeclearlyrejectedbytheCommission.TURNagreeswiththestandardproposedbySDG&EthatallcostsnotrequiredtoserveutilityloadrequirementsandincludedinaGRCauthorizationprocessshouldbechargedtotherequestingapplicant.

Collectiveutilityposition:

UtilitiesindicatedthatincaseswheretheircurrentaccountingpracticesremovereplacedfacilitiesfromtheirCOO,anunder-collectionofCOOwouldresultiftheinterconnectioncustomerisonlychargedforthenet-additionalCOOresultingfromtheinterconnectionrequest,ratherthanbeingchargedthefullCOOofthereplacementfacilities.

SDG&Eposition:

Theutilitiesdonothavethedetailedvisibilitytothegranularityofindividualassetcoststoachievethisproposalaspresented.ThisproposalwouldshiftmorecoststoexistingratepayersandunfairlybenefitonlytheDERcustomer–thus,notachievingratepayerindifference.Theexistingasset,ifnotfullydepreciated,continuestobepaidforbyexistingratepayersandthisnewassetifnotfullypaidforbytheDERcustomerunfairlyshiftsadditionalcoststotheexistingratepayers.Forthisreason,whenacustomerrequestsaSpecialFacilityundertheRule2tariffrequirementstoreplaceequipmentthathadbeenpreviouslyinstalledtoservetheutilityratepayersandwasapprovedthroughitsGRCprocess,SDG&Ewouldcontinuetorecoverthecostoftheassetfromratepayers.SDG&Edoesnotrecoveritsfixedassetscostupfrontfromratepayers,therecoverymechanismoccursovertimethroughdepreciationexpenseovertheaverageservicelifeoftheasset.Whenafixedassetisremovedfromservice,SDG&EfollowstheFERCregulatoryguidelines1toretiretheasset,consistentwithitsgeneralpractices.

SCEposition:AsdiscussedwithProposals24-aand24-b,andthroughoutworkshopdiscussionsonthistopicalongwithbeingrepresentedinSCE’sresponsedatedApril9,2019toaCommissionDataRequestalongwithwrittenresponsetostakeholderquestionsdatedApril24,2019,sincepracticesandgoverningrulesrelatedtotheCostofOwnershipimpactcustomerclassesbeyond“interconnectingcustomers,”reviewofCOOrelatedissuesarebettersuitedforreviewwithinaGeneralRateCase.Bywayofbackground,COOrulesareestablishedunderRule2andapplytoallfacilitiesrequestedbyanapplicantwhichareinadditiontoorsubstitutionforstandardfacilities.Theyinclude,butarenotlimitedto,alltypesofequipmentnormallyinstalledbySCEinthedevelopmentofitsservicetoacustomeroracustomer’sreceiptorutilizationofelectricalservice.Fundamentally,theCOOoffsetsSCE’srevenuerequirementforoperatingandmaintaining(alongwiththecapitalrelatedrevenuerequirementwhenapplicable)theunderlyingassetsupportingratepayerindifference

PG&Eposition:InterconnectionCustomersmustberesponsibleforthecoststheycauseandchangesinCOOassessmentshouldnotshiftcostsfromgeneratorstoratepayers:AllPG&EcostsnotrequiredtoserveutilityratepayerloadrequirementsandincludedinaGRCauthorizationprocessshouldbeappropriatelychargedtotherequestingapplicant.Duetocostcausationprinciples,theentitythatinitiatestherequiredupgradewillberesponsibleforCOOonthatpieceofequipment.ApplicantswillpayfortheaddedfacilitiesnecessarytoaccommodatetheDER.Typically,therevenuesupportforanupgradeor“allowance”isdeterminedbycalculatingthecosttoservealoadandcomparingittothenewcostofservingadditionalload.Asanexamplescenario,acustomerplanstooffsetallloadwithgeneration.Byoffsettingtheload(andtherevenuesupport/allowance),thenewspecialfacility(transformerupgrade,linereconductor,etc.)thatisneededtoaccommodatethegenerationisnowthefullresponsibilityoftheinterconnectioncustomer.Ifthecustomeronlyoffsetsaportionoftheload,therewouldbeanallowanceavailabletooffsetthecostofthespecialfacility.

Issues27and28Issue27:Whatshouldbetheoperationalrequirementsofsmartinverters?WhatrulesandproceduresshouldtheCommissionadoptforadjustingsmartinverterfunctionsviacommunicationcontrols?Issue28:HowshouldtheCommissioncoordinatewiththeIntegratedDistributedEnergyResourceproceedingtoensureoperationalrequirementsarealignedwithanyrelevantvaluationmechanisms?PROPOSALSUMMARIESProposal27-a.ConsensusAddwithinRule21SectionHhlanguagethatstates“withmutualagreement,changestodefaultsettingsareallowed.”AndwithinsixmonthsafterreleaseofanupdatedUL1741standardthatincludesIEEE1547.1-2019,takethefollowingtwoactions:(1)updateRule21toaccountforIEEE1547andIEEE1547.1requirements;and(2)determinetheprocessforrequestingandapprovinginvertersettingsthataredifferentfromthedefaultsettings,includingmodificationstogeneratingfacilityinvertersettingsrequestedbyeitherthedistributionproviderorbytheGeneratingFacilityowneroroperator.23Proposal27-b.Non-consensusTheCommissionshouldconveneaworkshopwithin90daysoftheWorkingGroupThreeFinalDecision,inwhichutilitieswillpresenttheirDERMSroadmaps,followedbycommentsfromparties.Roadmapsbyutilitiesshouldincludevisions,tentativemilestones,andmajorchallenges.

Supportedby: CALSSA,CleanCoalition,GPI,JKBEnergy,PG&E,SCE(conditional;seeDiscussionsection),Sunrun,Tesla

Opposedby: SDG&E,TURNProposal27-c.Non-consensusConvenetheSmartInverterWorkingGrouptorefinetechnicalspecificationsfortheSetActivePowerModefunction.

Supportedby: CALSSA,CleanCoalition,GPI,Nuvve,SCEOpposedby: PG&E,SDG&E

Proposal28-a.ConsensusAfterthedecisionontheIDERproceeding,theEnergyDivisionshoulddecideontheneedtoconveneTheSmartInverterWorkingGrouptodetermineifanytechnicalworkisneeded.

23ReferenceismadetoIEEE1547.1-2019inProposal27-aduetotheexpectationthattheforthcomingupdatetoIEEE1547.1willbereleasedin2019.Shouldthereleasebedelayedinto2020,thisproposalshouldbeadjustedtostate,“AndwithinsixmonthsafterreleaseofanupdatedUL1741standardthatincludesIEEE1547.1-2020…”

BACKGROUNDTheWorkingGroupconsideredthefunctionalcapabilitiesofsmartinvertersasapprovedduringPhasesI-IIIoftheSmartInverterWorkingGroup(SIWG).ThesefunctionalcapabilitiesincludePhaseIAutonomousFunctions(approvedApril2015),PhaseIICommunicationCapabilities(approvedApril2017),andPhaseIIIAdvancedFunctions.ThePhaseIFunctionsbecamemandatoryforallnewinterconnectionrequestsasof2017.ThePhaseIICommunicationsCapabilitiesarecurrentlyscheduledtobecomemandatoryinAugust2019,buttheCommissionisconsideringproposalstodelaythatcompliancedeadline.ThePhaseIIIFunctionshavearangeofdeadlines.TwoPhaseIIIfunctionsbecameeffectiveonFebruary22,2019:FrequencyWattModeandVolt-WattMode.TwoPhaseIIIfunctions,MonitorKeyDERDataandSchedulingPowerValuesandModes,arecurrentlyscheduledtobecomemandatorybeginningonAugust22,2019,althoughtheCommissionisconsideringproposalstodelaythatcompliancedeadline.TwoPhaseIIIfunctionswillbecomeeffective12monthsafterapprovalofanationallyrecognizedstandardthatincludesthefunction:SetActivePowerModeandDynamicReactiveSupport.TwomorePhaseIIIfunctionswillbecomeeffectiveinDecember2019:DERDisconnectandReconnectCommand(CeasetoEnergizeandReturntoService)andLimitMaximumActivePowerMode.TheWorkingGroup,overaseriesofsixjointcallswithinterestedpartiesfromtheSIWG,consideredavarietyofsmartinverterusecaseswithpotentialeconomicand/orsafetyandreliabilitybenefitsthatcouldmakeuseofthesefunctionalcapabilities,andwhethertechnicalstandardsorfunctionsareexistingorforthcomingthatareneededtoenablethoseusecases.Basedondiscussionofthecapabilitiesandusecases,aswellassafetyandreliabilityrequirements,theWorkingGroupandSIWGthensetouttoassess,prioritize,categorizeandrecognizetheoperationalrequirementsofsmartinvertersandproceduresforchangingsettings,intermsofwhatshouldbeconsideredfirstbytheCommission,intermsofwhatadditionaltechnicalworkorstandardsareneededbeforeoperationalizationispossible,intermsoffuturedevelopmentofDERMSsystemsbytheutilities,andintermsofwhatisexpectedtohavethemostbenefittobothgenerationcustomersandutilities.PartiesnotedthatitisalreadyestablishedinRule21thatcustomersmustmaintainthedefaultsettingsforsmartinverterfunctionsunlessdifferentsettingsareapproved.DuringWorkingGroupdiscussions,partiesconsideredproposalsrelatedtonon-defaultsettings.TheWorkingGroupdeveloped,togetherwiththeSIWG,aframeworkofthreeOperationalCategories#1-#3,withinwhichchangestosmartinverterdefaultsettingscanbeconsidered.SeeAnnexFfordetailsofthisframework.OperationalCategory#1pertainstodefaultoperationsandmaintenanceofRule21requirements.OperationalCategory#2pertainstointerconnectionusecases.AndOperationalCategory#3pertainstogridservices.PartiesrecognizedthatchangestodefaultsettingsforOperationalCategories#2and#3canbemadewithmutualagreement,providedthemodificationisevaluatedtoensurethatsafetyandreliabilityrequirementsarenotcompromisedandifthemodificationdoesnotnegativelyaffecttheinterconnectionrequirementsprovidedunderOperationalCategory#1oranypreviouslyimplementedOperationalCategory#2and#3requirements.Withinthisframework,theWorkingGroupandSIWGalsodefinedandconsideredaseriesofusecasesthataredetailedinAnnexG.Inparticular,eightusecaseswereseenasimportantto

harnessingthegridbenefitsofdistributedresourcesinthefuture:(a)scheduledpowerreduction;(b)dynamicpowerreduction;(c)scheduledvoltagecorrection;(d)dynamicvoltagecorrection;(e)operationalflexibility;(f)capacity;(g)constantvoltageboost;(h)voltagereduction.Theseusecasesareincludedinthisreporttosignalthetypesofusecasesthatstakeholdersthinkshouldbeoperationalizedinthefuture,whilerecognizingthatexistingutilitytechnologycannotsupportmanyofthematpresent.Withregardtotheusecases,theWorkingGroupisnotrecommendinganyspecificCommissionactionatthistime.SomepartiesalsonotedthattheexistinglanguageofRule21canbeinterpretedtoallowamitigationpathusingalternativesmartinvertersettingsinresponsetotheresultsofinterconnectionreview.Iftheutilityofferstheoptiontousealternativesettingsasaconditionofinterconnectionapproval,thecustomercanacceptthatoptionandtheutilitywillincludethealternatesettingsintheinterconnectionagreement.Thecustomerwillbeobligatedtomaintainthosesettingsunlesstheyreceivelaterapprovalfromtheutilitytochangethem.Afterthecustomerhasreceivedapprovalforsettingschanges,thecustomermustdocumentthesettingsfortheutility.InrelationtothesecondquestionofIssue27onrulesandproceduresforadjustingsmartinverterfunctionsviacommunicationcontrols,theWorkingGrouprecognizedthatmanyoftheOperationalCategory#2andOperationalCategory#3usecaseswouldrequireutilitiestosendsignalstoDERsbasedongridconditionsandreacttodatareceivedfromDERsthroughthedevelopmentof“DERMS”communicationandcontrolsystems.DERMSaresoftwareplatformsthatcancontrolorsendsignalstoDERsoveravarietyofdifferenttimeintervals,toperformactionsforgridreliabilitymanagementand/orgridservices.DERMScanworkinconcertwithAdvancedDistributionManagementSystems(ADMS),whichmonitorDERsandgridconditionsforautomatedgridmanagementdecisionmaking.Someoftheuse-casedescriptionsinAnnexGelaborateonhowDERMScouldbeused.EachoftheutilitieshasperformedmultipletestsandpilotsofDERMS,butongoinguseofDERMSisstilllimited.DERprovidershavepartneredwithutilitiesforthosepilots,someofwhichhaveusedcommunicationstechnologythathadnotyetbeenwidelyintroducedintothemarketplace.IthasbeenalearningprocessforutilitiesandDERprovidersalike.MoststakeholdersshareavisionofDERMSbecomingwidespread,butthereareconflictinginterpretationsofhowquicklythatcanbeachieved.InrelationtoIssue28,partiesalsoconsideredwhichusecaseswouldberelevanttoIDERsourcingandvaluationmechanismsbeingdeveloped,andhowandwhentheWorkingGroupandSIWGcouldprovidetechnicalassistancetoIDERinsettingoperationalrequirementsforthosesourcingandvaluationmechanisms.ThisincludedprovidinginformationtoIDERonwhatusecasesandfunctionswouldbeassociatedwithdifferentmechanisms,andthepracticalconstraintsorneedsinoperationalizingthoseusecasesandfunctions.

DISCUSSIONProposal27-a.ConsensusAddwithinRule21SectionHhlanguagethatstates“withmutualagreement,changestodefaultsettingsareallowed.”AndwithinsixmonthsafterreleaseofanupdatedUL1741standardthatincludesIEEE1547.1-2019,takethefollowingtwoactions:(1)updateRule21toaccountforIEEE1547andIEEE1547.1requirements;and(2)determinetheprocessforrequestingandapprovinginvertersettingsthataredifferentfromthedefaultsettings,includingmodificationstogeneratingfacilityinvertersettingsrequestedbyeitherthedistributionproviderorbytheGeneratingFacilityowneroroperator.Rule21containsspecificdetailsonthedefaultsettingsofsmartinvertersettings.ForsomeofthefunctionsRule21statesthatcertaintypesofalternativesettingsmaybeallowed.However,thereisnogeneralstatementthatalternativesettingsmaybeapprovedbymutualconsentiftheyareusefulforfacilitatinginterconnectionorprovidinggridservices.ThiscreatesalackofclaritywhetherthecurrentRule21languageallowsutilitiestoapprovethefullrangeofalternativesmartinvertersettingsthatcouldbeusefulforthesepurposes.Thereisalsonoprocessspecifiedforcustomerstorequestpermissionfordifferentsettingsforpurposesofprovidinggridservices.Utilitiescan,atleastinsomecases,reviewandapproveproposalsforalternativesettings,butadefinedprocesscouldimprovefairnessandtransparency.Athirdpotentialneedisaspecifiedrequirementforcustomerstochangesettingswithinacertaintimeframeifautilitydeterminesitisnecessaryforimmediatesafetyandreliabilityconcernscausedbythecustomer.Proposal27-b.Non-consensusTheCommissionshouldconveneaworkshopwithin90daysoftheWorkingGroupThreeFinalDecision,inwhichutilitieswillpresenttheirDERMSroadmaps,followedbycommentsfromparties.Roadmapsbyutilitiesshouldincludevisions,tentativemilestones,andmajorchallenges.

Supportedby: CALSSA,CleanCoalition,GPI,JKBEnergy,PG&E,SCE(conditional;seeDiscussionsection),Sunrun,Tesla

Opposedby: SDG&E,TURNProponentpositionbyCALSSA:

SeveralofthesmartinverterusecasesrequireutilityDERMS.Customershavebeenrequiredtoinstallinverterswithadvancedfunctionality,butinordertomakefulluseofthosefunctionsutilitiesneedtoworkontheirportionofthecapabilities.Issue27considerswhatisnecessarytomakeuseofsmartinvertercapabilities,andtheutilitysideoftheequationisanimportantelement.

TheutilitieshaveconductedpilotstotestDERMScapabilitiesandplantoconductfurtherpilots.Thesepilotsareimportantforutilitiestogainexperienceandconfidence.However,theyshouldbepartofalargerplan,anddevelopmentofthatplanshouldinvolveapublicprocess.

TURNposition:

Ashowingneedstobemade,whethercostbenefitorotherwise,toshowthatiftheutilitiesneedtobuildcommunicationssystemstoutilizePhase3functions,thebenefitstoratepayerswillmorethanoffsetthecoststoratepayers.Theanalysisalsoneedstoshowthatthebenefitswon’tdisproportionallybereceivedbyasmallpercentageofcustomerswhileotherratepayersarepayingforthecommunicationssystems.

Utilitypositions:

PG&EisoptimisticthatcertaindirectcontrolusecasesrelatedtoSmartInvertervoltagefunctionsandadvancedfunctionscouldprovidedistributiongridservicesbeyondautonomoususecases.However,PG&E’scurrentutilityoperationalsystemsarenotyetcapableofusingtheseadvancedSIfunctionstotheirfullestextent.UtilityinvestmentinanAdvancedDistributionManagementSystem(ADMS)andDERMSsoftwarewouldprovidevisibilityandcontrolofSI-enabledDERstotheutilityandcouldallowDERstofullyrealizetheirvaluethroughdynamicmanagementfordistributiongridservices.PG&EhasfileditsplansforADMS/DERMStechnologydevelopmentinitsGridModernizationChapterinits2020GeneralRateCase.However,duetotheupcoming1/29/19bankruptcyfilingandthecompany’sfocusonprojectsrelatedtosafety,compliance,andriskmitigationfollowingthe2017and2018wildfires,itispossiblethatcertainaspectsofADMS/DERMSimplementationmaybedelayedand/orpushedintothefuture.PG&E:AdditionalDERMSdemonstrationworkisneededbytheIOUs(PG&EDERMS2.0project,whichiscurrentlyonholdduetoworkreprioritizationactivitiesfollowingthe2017and2018wildfireseasons).ExampleusecasesthatcouldbepursuedthroughadditionalDERMSdemonstrationworkinclude:

• Constrainedgenerationprofileusecase(i.e.alternativeinterconnectionmitigation)• Cybersecuritystandarddevelopment/demonstrationofend-to-endcybersecurity

testingandimplementation• MeasurementandverificationofDERs’abilitytoprovideadistributiongridservice

beyondsimplymitigatingtheadverseimpactsofhighDERpenetrationSCEissupportiveofaninformativeworkshopthatoutlinesSCE’svision,tentativemilestones,andmajorchallenges.However,becauseDERMshasbeenreviewedwithinSCE'slastGRC,itwouldbeoutofscopeforthisdiscussiontoaddressfurtherstakeholdermodifications,proprietarytools,vendorcontracts,Cybersecurityspecificationsandothersensitiveinformation.SCEissupportiveofanopendialogwithstakeholderstoshareDERMSoperationalplansandmaximizeitscapabilitywithDERoperationsboundedbyGRCapprovallimitation.SCEdoesnotsupportTURN’spositionasjustificationforDERMSandotherrelated

toolstobereviewedoutsidetheGRCduetotheirprojectnatureascomparedtoonlyreviewedunderaninterconnectionrulemaking.

SDG&Eisopposedtothisproposal,butrathersuggeststhataworkshopbeconvenedtoactuallyassessthematurityoftheDERMScommercialsoftwarevendorstosupportnecessaryusecasesatscale,whileprovidingrobustnessandsecurity.Perthe“SmartInverters&DERMS:AnOverviewofOngoingResearchEffortsatEPRI”presentationconvenedbytheEnergyDivisiononApril11,2019,itisobviousthatthestateofDERMSisnascentandundergoingsignificantresearchanddevelopment,makinganysubstantivedevelopmenttimelinesfortheIOUsproblematic.Additionally,DERMSdeploymentispredicateduponthesesamevendors’roadmaps,whichtheCaliforniaIOUshaveminimalinfluence.SDG&E’spointsolutionvendorforDERMS/microgridproducthaveactuallychangedtheirbusinessmodeltoreflectthelackofarobustmarketforDERMSsoftware.SDG&EbelievesthattheCommissionshouldprovideclarityontheroleofDERSinhelpingtoachieveStatepolicygoals.ThisclaritywillprovidethenecessaryguidanceforSDG&EtoeffectivelyimplementitsDistributedEnergyResourceManagementSystem(DERMS)towardthosegoals.ThisclaritywillalsoprovideguidanceontherolesandresponsibilitiesofDERmarketparticipants.Inallcases,SDG&EbelievesthattheCommissionshouldmandateend-to-endtestingproceduresforsmartinvertercommunicationsandfunctionality,suchthatanyinterconnectedsystemdeliversasexpectedforthebenefitofconsumersandforoverallgridreliability.

Proposal27-c.Non-consensusConvenetheSmartInverterWorkingGrouptorefinetechnicalspecificationsfortheSetActivePowerModefunction.

Supportedby: CALSSA,CleanCoalition,GPI,Nuvve,SCEOpposedby: PG&E,SDG&E

ProponentpositionbyCALSSA:

TheSmartInverterWorkingGrouprecommendedthatFunction4(SetActivePowerMode)andFunction7(DynamicReactiveSupport)beincludedinthePhaseIIIfunctions,butduringdiscussionsonimplementingPhaseIIIitwasagreedthattherewasnotsufficienttechnicalspecification.FurtherdevelopmentofthesefunctionshasbeendelayedatleastuntilafterimplementationofIEEE1547-2018.ItisnowclearthatFunction4willlikelybevaluableforenablingcustomerstoprovidecapacityasagridserviceandshouldbereprioritized.

Utilitypositions:

PG&Eseeslimitedusefulnessforthisfunctionuntilthegridseeshigherstoragepenetrationlevels.Also,thisfunctioncannotbeusedeffectivelyuntilPG&E’sexistinggridcontrolsystemsareupgradedwithDERcommunicationandcontrolcapabilities.ForPG&E,the

communicationandcontrolupgradesmaynothappenforafewmoreyearsuntilADMS/DERMSisavailable.

SDG&E:ThesefunctionsareneithercurrentlyneedednoristheSIWGcurrentlyanofficialentityempoweredbytheCPUCtotakeonthesetasks.WhileareconciliationofIEEE1547andRule21needstooccur,thereconciliationshouldoccuroncetheIEEEstandardisapproved.Previously,theSIWGhadagreedtopostponeadditionaladvancedfunctionstoawaitarevisionofIEEE1547,asreflectedinResolutionE-4898.AnyadditionalworkonthesefunctionsshouldwaituntilcompensationissueshavebeenaddressedintheIDERproceeding.Furthermore,thereisnojustificationorvaluetoincrementallymodifythetarifftoincorporateIEEE1547-2018ifthereisnouseforthisfunctionatthistime.Thetechnologyandindustryaretooundevelopedforanyproposedtariffchanges.SDG&Ecansupportthisproposalwithredlinelanguageadded.SDG&EsupportsoneprocessforupdatingRule21toalignwithIEEE1547.1,justlikethetimingofthetariffchangesinProposal27-b.SDG&Ecanonlysupportproposal27-cifthetimingofsuchthatweendupwithasingleprocesstoupdateRule21withUL1741andwhichfunctionsgetincorporatedintoRule21.Itwouldbemoreefficientandprovidecertaintytotheinvertermanufacturerstoonlyhaveoneupdatethatwouldoccur.ThereneedstobetheIEEE1547andIEEE1547.1alignmentofRule21andUL1741teststandardneedstobeupdated.AddingthesetactivepowermodefunctioninconjunctionwiththiscomprehensivereformwillfacilitateasingleupdateofRule21.

Proposal28-a.ConsensusAfterthedecisionontheIDERproceeding,theEnergyDivisionshoulddecideontheneedtoconveneTheSmartInverterWorkingGrouptodetermineifanytechnicalworkisneeded.ProponentpositionbyCALSSA:

TheIssue27proposalcontainsrulesandproceduresfortariffsthatareanticipatedfromtheIDERproceedingatthistime.IfnewtechnicalneedsariseforsmartinverterfunctionsasaresultofIDERtariffdevelopment,theSmartInverterWorkingGroupremainscommittedtobeingavailable.

Utilitypositions:

PG&EsupportstheaboveproposalforSIWGtoevaluatetheneedforadditionaltechnicalworkthatmaybeneededasrequiredbyanyupcomingIDERtariffs,butonlyafterthosetariffsareapproved.SDG&EbelievesthatfutureSmartInverterWorkingGroupmeetingsshouldbepredicatedontheapprovaloftariffsintheIDERproceedingifitisdeterminedthatanytechnicalworkisneeded.Additionally,aregulatorypathwayforimplementationofanySIWGworkmustbeavailable.

AnnexF:Issue27,FrameworkofOperationalCategoriesforSmartInverterFunctionsTheWorkingGroupandSIWGdevelopedaframeworkofthreeOperationalCategories#1-#3.Thepurposeofthisframeworkwastothinkabouthowusecasescanfallintodifferentoperationalcategories,andtonotethattherearesomefunctionsstilltobedeveloped.Changestosmartinverterdefaultsettingscanbeconsideredwithinthisframework.PartiesrecognizedthatchangestodefaultsettingsforOperationalCategories#2and#3canbemadewithmutualagreement,providedthemodificationisevaluatedtoensurethatsafetyandreliabilityrequirementsarenotcompromisedandifthemodificationdoesnotnegativelyaffecttheinterconnectionrequirementsprovidedunderOperationalCategory#1oranypreviouslyimplementedOperationalCategory#2and#3requirements.OperationalCategory#1(DefaultOperations;MaintenanceofRule21Requirements).SmartinverteroperationalrequirementsshouldbetomaintainrequiredRule21defaultoperationalparametersunlessalternateparametersareapproved.ThemostimportantprincipleisthatsmartinverteroperationsmustcomplywiththesafetyandreliabilityrequirementssetforthinRule21.Aslongassafetyandreliabilityrequirementsaremet,thentheexpandeduseofsmartinvertercapabilitiestoprovideavarietyofinterconnectionandgridservicesmaybeallowed.ThesearetheOperationalCategory#1requirements:

a. Anti-Islandingactivatedb. Low/HighVoltageRideThroughactivatedwithdefaultsettingsc. Low/HighFrequencyRideThroughactivatedwithdefaultsettingsd. DynamicVolt/VarOperationsactivatedwithdefaultvolt/varsettingse. RampRatesactivatedwithdefaultnormalsettingsf. FixedPowerFactordeactivatedg. Reconnectby“soft-start”activatedwithdefaultsettingsh. Frequency/Wattactivatedwithdefaultfrequency/wattsettingsi. Volt/Wattactivatedwithdefaultvolt/wattsettings

OperationalCategory#2(InterconnectionUseCases).ModificationofdefaultOperationalCategory#1settingstosupportanInterconnectionUseCaseattheinterconnectioncustomer'srequestforpurposesofavoidingtheneedforgridupgrades.ThedefaultOperationalCategory#1settingcanbemodifiedtomeettheneedsoftheOperationalCategory#2usecase.ThemodificationofthedefaultOperationalCategory#1settingsmustbeevaluatedtoensurethatsafetyandreliabilityrequirementsarenotcompromised.Fornewdistributedenergyresources(DERs)withsmartinvertersthathavenotreceivedpermissiontooperate,alternativedefaultsettings:(1)maybeevaluatedasrequestedwithintheDERInterconnectionRequest;and/or(2)alternativesmartinverterfunctionsorsettingscanbespecifiedbytheutilitytomitigateDERimpactstothegrid;and/or(3)alternativesettingscouldbeagreedtobymutualconsentforanyreason.

Forexistinginverter-basedDERswithpermissiontooperate,toallowthesmartinverterthecapabilitytoprovideservicesbymodifyingthesmartinverterdefaultsettings,changestothesmartinvertershouldbeconsideredasproposedbelowbasedontheOperationalCategory(i.e.,interconnectionorgridservices).

a. UtilizealternativesetpointsfortheVolt/Varcurveb. ActivatetheFixedPowerFactorfunctionataspecificpowerfactorinlieuoftheVolt/Var

functionc. UtilizealternativeparametersfortheVolt/Wattfunctiond. LimitsmartinverteroutputatgivenstaticvalueusingsmartinverterPhaseIIIFunction3

(fixedoutput,shorttermapplicationvision)e. LimitsmartinverteroutputdynamicallyusingPhaseIIIFunction3whenDERandutility

communicationsystemshavebeendevelopedandactivatedthroughutilityDERMSsystems(longtermapplicationvision)

OperationalCategory#3(GridServices).Whenacustomerrequestsalternatesettingsforagridserviceusecase,theDistributionProviderwillreviewproposedsettingstoensurethatthemodificationstotheSmartInverterdefaultsettingsdonotnegativelyaffecttheinterconnectionrequirementsprovidedunderOperationalCategory#1oranypreviouslyimplementedOperationalCategory#2requirements.AdditionalfunctionalitymaybedevelopedandactivatedtomorefullyachievethevisionofutilizingsmartinvertersforOperationalCategories#2and#3functionality.TheSmartInverterWorkingGroupcanbethevenueforthesediscussionswithdiscussioncommencingaftertheWorkingGroupThreefinaldecisionhasbeenissued.Theseadditionalfunctionsincludethefollowing:

a. IEEE1547ConstantReactivePowershouldbeadoptedandavailableforactivationinRule21

whentheCommissionincorporatestheupdatedIEEE1547standardintoRule21.ThisfunctionwillallowSmartInverterstoprovidereactivepowercapacity.WhilethecurrentcapabilitiesofSmartInvertershavefunctionstoprovidereactivepower,namelythevolt/varandfixedpowerfactor,thevolt/varandfixedpowerfactorfunctions,thesefunctionsaremostappropriateforOperationalCategory#1applications.ConstantReactivePowermorecloselymatchesthereactivepowersupportprovidedbycapacitorbanksandwouldbeabetterfitfortheConstantVoltageBoostusecaseinAnnexG.

b. TheSIWGmaychoosetoconsidertheWatt/Varfunction,developedunderIEEE1547-2018,foractivationinRule21whenitconsidersincorporationofthebroaderIEEE1547standard.Thisfunctionmaybeabletoprovideadditionalvoltagecontrolcapabilities.ThiswillgiveCaliforniastakeholdersanopportunitytodebatethefunctionsinaCaliforniacontext.

c. PhaseIIIFunction#4(SetRealPowerMode)orequivalentshouldbedevelopedandbe

availableforactivationfortheCapacityusecaseinAnnexG,whichmaybethemostnear-termandimportantgrid-servicesusecase.WhilearecentCommissionresolution,ResolutionE-4898,hasdirectedFunction#4tobedevelopedaspartoffuturenationalstandards,itmaybepossibletodevelopthisfunctionearlierthanthecurrentschedule.

AnnexG:Issue27,UseCasesandPartyCommentsonUseCasesTheWorkingGroupisnotrecommendinganyCommissionactiontoapprovespecificusecasesforsmartinverterfunctionsinthisproceeding.ThefollowingusecasesareincludedinthisreporttoindicatepotentialusecasesidentifiedbystakeholdersthattheCommissionmaywishtoconsiderforfurtherdevelopment.InterconnectionUseCases:

a) ScheduledPowerReduction–Toaddressthermalhostingcapacityconstraintsduringcertainhoursoftheyear,acustomercanschedulereducedpoweroutputduringthosehours.Themaximumoutputvalueswillbeintheinterconnectionagreement.o Function3(LimitMaximumActivePower)andpotentiallyFunction2(Curtailment)o Function8(Scheduling)

b) DynamicPowerReduction–Toaddressthermalhostingcapacityconstraintsasthey

approachlevelsofconcern,theutilitycansendacommandtoreducepoweroutputduringthosetimes.Curtailmentpermissionandannuallimitationsonamountofcurtailmentwillbeintheinterconnectionagreement.o Function3(LimitMaximumActivePower)andpotentiallyFunction2(Curtailment)o Function8(Scheduling)o Real-timecommunicationsmustbeenabledo RequiresutilityDERMS

c) ScheduledVoltageCorrection–Toaddressvoltagehostingcapacityconstraintsduring

certainhoursoftheyear,acustomercanscheduleincreasedreactivepowerproductionorabsorptionduringthosetimes.o AlternativesettingsforVolt-VarandVolt-Watto PotentiallyenablingtheFixedPowerFactorfunctiono PotentiallywithWatt-Var

d) DynamicVoltageCorrection–Toaddressvoltagehostingcapacityconstraintsasthey

approachlevelsofconcern,theutilitycansendacommandtoincreaseproductionorabsorptionofreactivepowerduringthosetimes.AuthorizationtochangetheVolt-VarandVolt-Wattsettingsandannuallimitationsonthenumberofeventswillbeintheinterconnectionagreement.o AlternativesettingsforVolt-VarandVolt-Watto PotentiallyenablingtheFixedPowerFactorfunctiono PotentiallywithWatt-Varo Real-timecommunicationsmustbeenabledo RequiresutilityDERMS

e) OperationalFlexibility–Inalocationthatisconstrainedbyoperationalflexibility,acustomer

canagreetoreduceorcurtailpowerduringsystemmaintenanceorgridoutagesthatinvolvethesystemreconfigurationthatcausedtheoperationalflexibilityconstraint.Therangeof

adjustabilityandlimitsonthenumberofeventswillbedeterminedbymutualconsentandincludedintheinterconnectionagreement.o Function3andpotentiallyFunction2o Real-timecommunicationsmustbeenabledo RequiresutilityDERMS

GridServicesUseCases

f) Capacity–Coordinateddispatchableorscheduledelectricityproductioninaccordancewithsolicitationrequirementsorgridservicetariffrules.Thiswillmostlybethedischargeofstoredenergy.Customeragreestodeliverabilityobligation.Communicationsmustbeenabled,whichmaybelessthanreal-timeifthedischargeisscheduledaheadoftime.o ReliabilitywillbegreatlyincreasedwithFunction4.

g) ConstantVoltageBoost–Increasevoltagethathasbecomeloweralongafeederdueto

distancefromasubstationandtheexistenceofmachineloads.Thisisachievedwithconstantorperiodicproductionofreactivepower.o RequirestheConstantReactivePowerfunctiondevelopedunderIEEE1547-2018.o CanbescheduledwithFunction8.

h) VoltageReduction–Reducevoltageinlocationsthathaveregularoccurrencesofhigh

voltageduetoreasonsbeyondthespecificcustomersite.o AlternativesettingsforVolt-VarandVolt-Watt.

Proponentcommentsonusecases:

CALSSA:Becausesolarsystemscancauseanincreaseinvoltageonthegridnearthepointofinterconnection,utilitieshaveoftenrequiredgridupgradestoaddresspotentialvoltageproblemscausedbyanewgeneratingfacility.OnebasicusecaseforsmartinverterfunctionswouldbeadjustmentofthesettingsofVolt-VarandVolt-Wattifthedefaultsettingsarenotsufficienttocounteracttheimpactsthatanewgeneratingfacilityisexpectedtocause.However,sincetheactivationofVolt-VarwithreactivepowerpriorityandVolt-Watt,itappearsthatthedefaultsettingsforthosefunctionsaresufficienttoaddressvoltageconcerns.Ifthisisnotthecaseforsomecustomers,utilitiesshouldconsideralternatesettingstoavoidtheneedformitigations.Ifitcontinuestobethecaseforallcustomers,theCommissioncanfocusitsattentiononthemoreadvancedusecasesbelow.

Utilitycommentsonusecases:

SCEresponsetothevoltage-relatedusecases(c),(d),(g)and(h):

Inregardstovoltagecontrolusecasesc),SCEpointsoutundervoltageorovervoltageconditionsthataredrivenbyabnormalconditionsaregenerallysevere,suchthatonlyequipmentdesignedtoregulatevoltage(VoltageRegulators,Loadtapchangers)aretheappropriatemeanstoregulatevoltage.Whileabsorbingreactivepowercan

haveasideeffectofslightreductionofvoltage(duetovoltagedropcausedbyincreasereactiveloadingontheline)orinjectingreactivepowercanhaveaslightsideeffectofvoltagerise,theseslightincreasesordecreasesaregenerallyafew%(0.5%-3%)dependingonthelocationoftheDERS,thelevelofreactivepowertheDERScaninject/absorbedandstrengthofthelocalgridandDERsettings.Further,itshouldbeaccountedthatDERsarerequiredintheinterconnectionagreementtohavearangeofoperation+/-.9PFtomitigatetheissuesthatarecreatedbytheDERsandthusanyadditionalreactivepowersupportwouldhavetobebehindwhatisrequiredtheinterconnectionrequirements.Inmostcases,itisthepresenceofDERswhichmaythehighvoltageissues.Forexample,ifthesystemisconfiguredinawaythattheDERsarefarawayfromthesubstation,thenbecauseoftheirlocation,DERswouldnowbemorepronetocreatehighvoltageissues.Additionally,areactivepower(VARs)source(suchadditionalcapacitorbanks)mustbeavailabletoprovidereactivepowertotheinverters(Inverterdonotlowervoltage,theyrelyonvoltagedropcausedthereactivepowerflowonthegridlowlower/increasevoltage).Incasesofreactivepowerinjection,sufficientreactivepowerloadmustalsobeavailabletomaintainthelocalgridatanearunitypowerfactorotherwisereactivepowerwouldhavetoflowfromthedistributionsystemtowardsthetransmissionsystemwhichanon-desirablecondition.Lastly,thevolt/varandPFfunctiondoesnotguaranteethattheinverterwillprovidethereactivesupport.Inthecaseofvolt/var,ifthelocalvoltageiswithinthedead-band,thentheinverterwilloperateatunitypowerfactorandwillnotprovidereactivepowersupport.InthecaseofPFcontrol,iftheinverterisnotproducingrealpower,thenitwillnotproducereactivepowerasPFisafunctionofrealpowerproductioninthismode.FuturefunctionsunderIEEEmayprovideadditionalcapability(suchastheConstantReactivePowerMode)butuntilthoseareadoptedandimplementedinR21,theymaynotbeavailableforuse.Forallthereasonsabove,Volt/varandPFfunctionsarenotanappropriatefunctiontosupportvoltagesupportasindicatedbytheproponent.

SCEprovidedsixusecases,alongwithtechnicalrequirementsanddiscussions,initsproposalsduringtheWorkingGroupthataresimilartotheeightproposedabove.ThesixusecasesproposedbySCEarereactivepowercapacity,realpowercapacity,highvoltagecontrol,lowvoltagecontrol,interconnection/overload,andinterconnection/overvoltage.PG&Ewouldliketoclarifythatwhiletheseinterconnectionusecasesmaybepossibleinthefuture,PG&E’sexistingtechnologycannotsupporttheseusecasesatthepresenttime.

Forexample,therangeofactualday-to-dayvariabilityofsystemconditionshasnotbeentestedforsuchanoperationalapplicationoftheIntegrationCapacityAnalysis(ICA)tool.ThegeographicalandtemporalalignmentofICAtospecificgeneratorshasnotbeenfullycharacterizedorquantified.Itisthustooearlyinthetechnology

developmentcycleofactiveDERmanagementtorelyonICA.Actualfieldtestingisneededtodemonstratemethodsfordevelopingsafe,reliable,andusablegeneratorconstraintsthatstanduptothedynamicrealityofthepowersystem.Forthedynamiccontrolusecases,PG&EwouldalsoneedaDERMSand/orADMStocoordinateDERconstraintswithfeederconditionsandtoaccountforabnormally-switchedfeederstates.Examplesystems/requirementsthatdonotexisttodayinclude:

• Utilitydatabasetostore,retrieve,andcommunicatethenewcomplexityofgeneratorinformationdefiningaconstrainedgenerationprofile

• DERSmartInverterheadendtoexchangeinformationwithsmartinvertersatacompleteoperationalscale,i.e.allgeneratorsqualifyingforsuchasolution

• Reliableandcyber-secureend-to-endcommunicationsystems,betheyprovidedbyinterconnectioncustomers,aggregators,orutilities

• Utilitysystemstocompareandvalidateprofilesforspecificgenerationfacilitiesbytwo-waycommunicationwiththeactualsmartinvertersorsitecontrollertovalidatesettingsandconstraintprofileconfiguration,bothupfrontandanon-goingbasis

• Adequatemonitoring(i.e.telemetryonanadequatelyresponsivetimescale)forutilitysystemstodetectexcursionsfromoperatingprofilesandalertgridoperatorsasneeded

Formoredetailrelatedtotechnologyrequirementstoenabledynamicoperationalconstraintsforinterconnection,seethefollowingcommentsfiledFeb1st,2019:“SurveyResponsesofPacificGasandElectricCompany(U39-E)toQuestionsonWorkingGroupTwoReport.”

PG&Erecommendsthefollowingpointsbeconsideredasgeneralpre-requisitesforenablementoftheSmartInverterusecasessuggestedbySCE:

• ThePhase2communicationcapabilitydeadlineneedstobeshiftedoutperIOUrecommendationsinresponsetotheCALSSAPFM

o TestingstandardsforSmartInvertercommunicationsshouldbeupdatedandalignedwithIEEE1547.1,afterthe1547.1revisionisissuedbyIEEE.

• TheutilitiesshouldupdatetheirSmartInverterimplementationplanstoreflectincorporationoftheIEEE1547.1standardupdates,oncetheIEEE1547.1standardrevisionisissued.

PG&E:Toenablegridservicesusecases,achangetoSmartInvertersettingswouldberequired.Suchachangetosettingswouldbeamaterialmodificationsinceitwouldberelieduponforpropergridoperation.IfapprovedbytheDistributionPlanningengineer,itwouldneedtobememorializedintheInterconnectionAgreementasanoperatingparameter.ThematerialmodificationprocesswillbeimplementedaspartoftheWorkingGroup1ProposedDecision.

PG&EsaysthatpriortoincorporatingadditionalIEEE1547functionsConstantRealPowerandWatt/VARintoRule21,thesefunctionsshouldbeevaluatedthroughmodeling,labandfield-testingbytheutilitiestodetermineiftheyaretrulynecessaryandaddvaluerelativetothealready-definedRule21SIfunctions.Ifimplementation/modificationofRule21iswarrantedperthisevaluation,theapplicableinvertercertificationandtestingstandardssuchasUL1741SAshouldbeupdatedtocertifythesenewfunctionsviaaNRTL.PG&Ealsoelaboratesonfurtherneeds:

• AdditionalDERMSdemonstrationworkisneededbytheIOUs(PG&EDERMS2.0project,whichiscurrentlyonholdduetoworkreprioritizationactivitiesfollowingthe2017and2018wildfireseasons).ExampleusecasesthatcouldbepursuedthroughadditionalDERMSdemonstrationworkinclude:

o Constrainedgenerationprofileusecase(i.e.alternativeinterconnectionmitigation)

o Cybersecuritystandarddevelopment/demonstrationofend-to-endcybersecuritytestingandimplementation

o MeasurementandverificationofDERs’abilitytoprovideadistributiongridservicebeyondsimplymitigatingtheadverseimpactsofhighDERpenetration

• GridModernizationeffortsshouldbeallowedtoproceed(PG&EIntegratedGridPlatformeffort).

• AdditionaleconomicmodelingisneededtodeterminethegridvalueofDERstoprovidegridservices.24

SDG&EconcurswithPG&E’scommentsabove.Furthermore,SDG&Eisingeneralconcurrencewiththecharacterizationofthesixusecasesandnotestheprematurenatureoftheseusecasestoday.InorderfortheSCE-identifiedusecasestobeimplemented,thePhaseIIcommunicationsneedtoexistandbeactivated,PhaseIIIFunctions1and8needtobeactivated,aDERMSneedstobeavailableandbeusedtomanageDER,andtheIOUsmusthaveidentifiedapplicableneedsforDERandsmartinverterservices.Atthetimeofinterconnection,defaultsettingcanbeprovidedtotheinvertersaspartoftheinterconnectionreviewprocess.Changesinthesettingswillrequireprocessesandprocedures,andcommunicationsinplace.AnynewfunctionstobedevelopedandimplementedshouldwaitforthenextrevisionofIEEE1547.ThiswillavoidtheincrementalupdatestoRule21andtherecertificationofinvertermodels.ThisisconsistentwithCALSSA’sargumentswhentheCommissionsoughttoimplementthePhase2andPhase3smartinverterfunctionality.Modifyinginverterset-pointswillrequirecommunicationsthattodayarenotavailable.Furthermore,bytheendof2019,allSDG&Eresidentialcustomerswillbedefaultedontoaresidentialtime-of-use(TOU)rate,andtheimpactofimplementingthisTOUrateoncircuitloadingisunclear.

24SeePG&ESmartInverterModelingReportforanexampleofeconomicanalysisneeded:https://www.pge.com/pge_global/common/pdfs/about-pge/environment/what-we-are-doing/electric-program-investment-charge/PGE-EPIC-Project-2.03A_Modeling-Report.pdf

Still,SDG&Ebelievesthat,beforeanycommunications-relatedusecasescanbeachieved,thefollowingroadmapwillneedtotakeplaceonasystem-widebasis:

• IOUdevelopscommunicationsinfrastructuretocommunicatewithbothinverters,energymanagementsystems,andaggregators.

• IOUdevelopsrequiredDERMScapabilitiesforPhaseIIcommunicationsandPhaseIIIFunctions1and8additionalsmartinverterrequirements.

• AllpartiesestablishandimplementcommunicationsapplicationsthatcomplywithRule21forintegratinginverters,EMS,andaggregatorswithDERMS.

• IOUupdatesinterconnectionportalstocollectnecessarycommunicationsinformationfornewlyconnectedsmartinverters.

• Standardsbodiesapproveanyapplicablenationalstandardsforsmartinverters(functionalityandcommunications).

• NationallyRecognizedTestingLaboratories(NRTL)establishend-to-endtestenvironmentforsmartinvertercommunicationsbasedonnationalstandards.

• IOUsobtainapprovalfromCPUCthroughthegeneralratecase(GRC)processtoimplementDERMSandcommunicationsnetworksforsmartinverters.

• Developcompensationmechanismsbasedonoutcomeofotherproceedings(e.g.IDER,DRP,NEM).

• Developapplicablecontracts.

IssuesAandBIssueA:Whatchangesareneededtoclarifytheparametersforapprovalofsystemdesigntoachievenon-exportandlimitedexport?IssueB:Howshouldutilitiestreatgeneratingcapacityforbehindthemeterpairedsolarandstoragesystemsthatarenotcertifiednon-export?PROPOSALSUMMARIESThetwoissuesAandBareinterrelatedandtheproposalsaddressthemjointly.ProposalA-B#1.ConsensusGeneratingfacilitiesthatmeetthefollowingfivespecificationswillbetreatedasnon-exportorlimitedexportininterconnectionreview:(1)theGeneratingFacilityusesapowercontrolsystem(PCS)thatpassedtestinginconformancewiththeUnderwritersLaboratoryPowerControlSystemsCertificationRequirementsDecision(ULCRD);(2)thecontrolsystemhasanopen-loopresponsetimeofnomorethan2secondsasprovidedinthecontrolsystemsspecificationdata-sheets,andthePCSisrequiredtoreduceexportpowertotheapprovedexportlimitwithin2secondsofexceedingtheapprovedexportlimit;(3)theGeneratingFacilitymustutilizeonlyUL1741certifiedand/orUL1741SAlistedgrid-supportnon-islandinginverters;(4)theGeneratingFacilitycontrolissettozero-exportorsomenon-zerocontrolledmaximumexportvalue;and(5)theGeneratingFacilityisrequiredtomaintainvoltagefluctuationstothelimitsspecifiedinRule2.Inaddition,updateRule21languagetoincludetheuseofaPCSfornon-exportandlimitedexportinterconnectionapplications.ProposalA-B#2.ConsensusGeneratingfacilitiesthatmeetthefollowingsixspecificationswillbetreatedasinadvertentexportininterconnectionreview:(1)theGeneratingFacilityusesapowercontrolsystem(PCS)thatpassedtestinginconformancewithULCRD;(2)thecontrolsystemhasanopen-loopresponsetimeofnomorethan10secondsasprovidedinthecontrolsystemsspecificationdata-sheets,andthePCSisrequiredtoreduceexportpowertotheapprovedexportlimitwithin10secondsofexceedingtheapprovedexportlimit;(3)theGeneratingFacilitymustutilizeonlyUL1741certifiedand/orUL1741SAlistedgrid-supportnon-islandinginverters;(4)theGeneratingFacilitycontrolissettozero-exportorsomenon-zerocontrolledmaximumexportvalue;(5)theGeneratingFacilityisrequiredtomaintainvoltagefluctuationstothelimitsspecifiedinRule2;and(6)theGeneratingFacilityinstallednameplatecapacityisequaltoorlessthan1000kVA.Inaddition,updateRule21languagetoincludetheuseofaPCSfornon-exportandlimited-exportinterconnectionapplications.

ProposalA-B#3.Non-consensusAninverterapprovedfornon-exportandlimited-exportcanbesetusingdifferentmaximumexportvaluesettingsatdifferenttimesoftheyear,ifitqualifiesunderProposalA-B#1(responsetimelessthan2seconds)orProposalA-B#2(responsetimebetween2-10seconds),andatthediscretionoftheutilityuntilafutureschedulingstandardisreleased.

Supportedby:CALSSA,CleanCoalition,GPI,IREC,Nuvve,TeslaOpposedby: PG&E,SCE,SDG&E

ProposalA-B#4.ConsensusForSCEcustomersonly,beginning6monthsaftertheapprovaloftheAdviceLetterimplementingthefinaldecisiononWorkingGroupThree,customersapplyingforinterconnectionwithaPCSmustuseaPCSalreadyontheapprovedlist.Interconnectionapplicationformsaretobeupdatedwithnewrequiredfieldsincludingcontrolinformationandlimitedexportsetting.BACKGROUNDBackgroundonIssueAforNon-ExportInterconnectioncustomerscanhavegoodreasonsforchoosingnon-exportsystems.Forexample,theymayachievegreaterbillsavingsbyusingon-siteenergydirectlytopoweron-siteload.Or,ifthesystemincludesstorage,customerscanbenefitfromtime-of-useperiodsandrates,andstoreon-sitegenerationand/orpowerpurchasedduringperiodsoflowrates,foruseduringperiodswithhigherrates.Non-exportstrategiescanalsoavoidrelianceonnetenergymeteringcreditsthatarelowerthanretailratesduetonon-bypassablecharges.Insomecircumstances,non-exportsystemscouldenableacustomertochoosetointerconnectwithinexistinggridcapacityandnotincurthecostordelayofdistributionsystemupgrades,atalocationwhereinterconnectionofanexportingsystemmightotherwiserequiredistributionsystemupgrades.However,eventhoughacustomermaychoosetooperateasnon-export,utilitiesmustdeterminewhetherasystemhasthepotentialtoexportand,ifso,utilitiesmustdeterminethemagnitudeofpotentialsafetyandreliabilityimpactstothegrid.Rule21containsprovisionstohandlesuchdeterminations,suchasSectionNandSectionG.i,inrecognitionthatsystemsthatdonotexportpowerhavedifferentgridimpactsthanfullexportprojects.OthersectionsofRule21,suchasSectionsMandMm,coversituationsinwhichgeneratingfacilitiesmayinadvertentlyexport,whichevenifinfrequentandforshortdurations,mayhavehighpotentialsafetyandreliabilityimpactsonthegrid.

Currently,Rule21identifiesfourOptionsbywhichaprojectmayqualifyasanon-exportingsystemandtwoOptionsbywhichaprojectmayqualifyasinadvertentexport(seeSectionG.1.i).Rule21doesnot,atthistime,explicitlyrecognizetheconceptoflimitedexport.

Non-Exporting:• Option1.ReversePowerRelay• Option2.MinimumPowerRelay(ContinuousImport)• Option3.CertifiedNon-IslandingProtection(SmallSystemComparedtoService)• Option4.RelativeGeneratingFacilityRating(SmallSystemComparedtoLoad)

InadvertentExport:

• Option5.InadvertentExport(SectionM)• Option6.InadvertentExport(SectionMm)–DesignedforsmallUL1741SAinverter-

basedgeneratingfacilitiesCustomerswhochooseOption1arerequiredtoinstallarelaywhichcausestheGeneratingFacilitytodisconnectiftherelaysensesreversepower(0.1%oftransformerrating)foratimegreaterthan2seconds.ItshouldbenotedthatcustomerswhooperatetheirgenerationsystemunderOption1wouldnotbeexpectedtooperateinsuchamannerthattheirrelayistrippedonafrequentbasis,asituationwhichmightcausetheutilitytodisconnectthegeneratingfacility,andposeotheroperationsissues.Thus,therelayusedforthisapplicationisconsideredtobeasafetybackupandnotpartofnormaloperation.Ifacustomerinstallsaphysicalnon-exportrelayitisrelativelysimplefortheutilitytovalidatethatthesystemwillnotexport.However,non-exportrelayscanbeprohibitivelyexpensive.Inaddition,proponentsIRECandCALSSAarguethatifaPCSiscapableofprovidingthesamefunctionality,thenanyadditionalcostforarelayisunnecessaryregardlessofwhetheritis“affordable.”IRECandCALSSAciteanexamplerelaycostof$60,000forasitewith1MWPVand500kWenergystorage,andassertthatifthecombinedinverternameplateofthesystemislessthan750kW,aphysicalrelayislikelytobeunaffordable.Theotheravailablenon-exportingoptionsarechallengingorimpracticalforavarietyofdifferenttypesofprojectsandapplications.TheULPowerControlSystemsCRD(ULCRD)testprotocolwasrecentlyapprovedandprovidesawayforinvertersandpowercontrolsystemstobetestedandqualifiedfornon-exportandlimitedexport.TheprotocolisaULCertificationRequirementsDecisiondevelopedtosupport2020NationalElectricalCodeSection705.13andtocreateaframeworkforlimitedexportsystems.25ItisanaddendumtoUL1741.ApowercontrolsystemcertifiedtotheULCRDallowsadevicetodemonstratethatitiscapableofpreventingorlimitingexport,withinatime-delayofupto30seconds.Thedocumentedtestresultsofthepowercontrolsystemwillidentifythe

25ThelanguageoftheCRDisdownloadablefreeofchargeathttps://www.shopulstandards.com/ProductDetail.aspx?UniqueKey=35560.Thisversionisthefinalproposalthatwaslaterapproved.

responsetime-delayofthesystem.PartiesagreedthattheULCRDmaybeusedtotestpowercontrolsystemsintheinterim,untilsuchtimeasULincorporatesthetestprotocolsintotheunderlyingUL1741standard.TobecompliantwiththeULCRD,aninverterorgeneratingfacilitypowercontrolsystemmust,amongotherrequirements,respondtochangesincurrentatareferencepoint(suchasthePCC)andincludethatfunctionalityinitsconfigurationfileorotherwisehaveitembeddedinanon-volatilefile.TheULCRDstandardrequiresthatparameters,oncesetbytheinstalleratthetimeofinstallation,canonlybechangedbycontactingtheinverterorpowercontrolsystemmanufacturer,andcannotbechangedbythecustomerortheinstaller.

TechnicalInsert1:PhysicalNon-ExportRelaysandULCRDDevicesProposalsA-B#1andA-B#2accepttheuseoftheULCRDstandardfornon-exportandlimited-exportpowercontrolsystems(“ULCRDdevices”)inplaceofaphysicalnon-exportrelay,undertheconditionsspecifiedintheproposalstoensuresafetyandreliability.However,therearestilldifferencesbetweennon-exportrelaysandULCRDdevices.AULCRDdevicemeasuresasingleparameter(currentflow)atagivenpointofreference(suchasatthePCC)andrespondsbasedonthatsinglemeasurement.Arelayalsomeasuresthisparameter,butcanalsomeasure,amongotherthings,systemfrequency,voltageandphaserotation—measurementswhichcanbeusedtosatisfyotherinterconnectionprotectionrequirements.Ifsomeoftheseothermeasurementsarerequiredforsafeinterconnectiontothegrid,aULCRDdevicewouldnotbesufficientbyitself.Arelayisabackstoptopowercontrolsystems.Itonlyactsinunexpectedcircumstances,whengeneratingfacilitycontrolsdeviatefromnormal.AULCRDdevice,incontrast,mayoperatemuchmorefrequently,orevencontinuously,toregulatesystemoutputundernormalconditions.Afurtherdifferenceisthelevelofhistoricalutilityexperience.Relayshavebeenusedformanydecades,whileverylittleexperienceyetexistswithcontrolsystemsapprovedundertheULCRD.Whilepowercontrolsystemshavebeenusedhistorically,theyhavenotbeenrelieduponhistoricallyinthesamewaythatULCRDdeviceswithoutaphysicalnon-exportrelayarenowbeingreliedupon.ManufacturersandNationalRecognizedTestingLaboratories(NRTLs)arecurrentlyintheprocessofdevelopingcapabilitiestotestpowercontrolsystemsundertheULCRD,soutilitieshavestillnotseentheresultsofthattesting.

TechnicalInsert2:InadvertentExportandOpen-LoopSurveyResponseTimeTheexampleofaload-followinggeneratingfacilitywithbothsolarandstoragecanillustratetheconceptsofopen-loopresponsetimeandinadvertentexport.Whenloadincreases,thestoragesystemdischargestomeetthatload.Whentheloaddecreases,thesystemreducesoutputorstopsdischargingbutwillinadvertentlyexporttothegridforaperiodoftimetotheextentthatinstantaneousgenerationexceedsinstantaneousload.Thistimeperiodisreferredtoastheopenloopresponsetimeofthecontrolsystem.Whenloadreducesquickly,powermaybeinadvertentlyexportedtothegridduringthetimeittakesforthesystemtosensetheloadreductionandtellthebatterytostopdischarging.IfasystemhasbeentestedandcertifiedundertheULCRDforlimitedexport,thegeneratingfacilitycanexportpoweruptonameplatecapacityuntilthecontrolsystemmakesacorrectionwithinitscertifiedopen-loopresponsetime.Utilitiesmustaccountforthisinadvertentexportwhilealsorecognizingthatitisshort-livedandnon-coincidentalamongcustomersonacircuitsegmentbecausetheloadofneighboringcustomersdoesnotgoupanddowninunison.Further,itshouldbenotedthatthesecontrolsystemsdonotlimitthenumberofexportoccurrences,andtheinstancesofexportarebasedonthecustomer’soperatingcharacteristics.Customerswhohaveverycyclicloadswillundergoinadvertentexportmanytimes,whilecustomerswhohaverelativesteadyloadpatternwillhaveveryfewinstancesofinadvertentexport.BackgroundonIssueAforLimitedExportAlimitedexportsystemisonethatisdesignedandsettolimitthelevelofexporttosomespecifiedamountlessthanthenameplatecapacity.AULCRDpowercontrolsystem(PCS)canalsoprovidelimitedexportinadditiontonon-export,dependingonitssettings.APCSwillalsolimitexporttoavaluebelownameplatecapacityandwithinsometimeintervalcharacteristicofthatspecificdevice,suchaslessthan2seconds,lessthan10seconds,orlessthan30seconds.TheULCRDstandarddoesnotprovidetherecommendedsettingsforagivenapplication,however.TheutilityandcustomerneedtoagreeonthesettingsforeachapplicationtoensurethePCSwillperformproperlyforthegivenapplication.ThereisnotcurrentlyanyprovisioninRule21thatrecognizestheconceptoflimitedexportexplicitly,thoughnothingpreventsaprojectfromlimitingexport.Projectsmaychoosetolimittheirexportsforvariouseconomicandtechnicalreasons.IftheproposalforIssue9aspartofWorkingGroupTwoisadopted,aformalrecognitionoflimitedexportcapabilitywillbeneeded.Exportingsystemsarecommonlydesignedandoperatedinwaysthatdonotallowthefullcapacitytobeexportedtothegrid.Inordertostudylimitedexportprojectsdifferently(i.e.tonotassumefullexport),forgridreliabilityandforthesafetyofutilitycustomersandemployees,utilitiesneedassurancesthatintendedlimitswillnotbeexceeded.Technicalevaluationmust

accountforthePCSresponsetime(seeBox2).AndtheoperatingprofilemustbelimitedbysystemconstraintsthatcanonlybechangedasprovidedintheULCRDstandard.BackgroundonIssueBCurrently,asystemthatdoesnotqualifyfornon-exportgetsstudiedininterconnectionreviewusingthemaximumnameplaterating.UntiltherecentapprovaloftheULCRD,nostandardsexistedgoverningthecontrolofpoweroutputfornon-exportorlimited-exportcasesforinvertersandpowercontrolsystems.“Maximumnameplaterating”isinterpreteddifferentlyindifferentsituationsandbydifferentutilities.ForAC-coupledsolar-plus-storagesystems,PG&EandSCEequatethemaximumnameplateratingofthecombinedsystemwiththesumoftheindividualnameplateratingsofthesolar-connected-inverterandthestorage-connected-inverter.SDG&E’spracticesdiffer,asSDG&Eonlyconsidersthesolar(inverter)nameplate,andnotthestoragedevicenameplate.ForDC-coupledsystems,thenameplateratingisjustthatoftheinverter.ProponentsCALSSAandIRECcallthe“nameplateplusnameplate”methodologyunrealistic,becauseitassumesthatthesolarsystemisgeneratingatfullcapacityandthebatteryisdischargingatfullcapacityeverydaytimehouroftheyear.CALSSAandIRECrecognize,however,thatintheabsenceofanULCRDcertifiedandapprovedpowercontrolsystem,utilitiesoftenchoosetostudyitinthismannerasaworst-casescenario.Morerealistically,customerstypicallyoperatesolarplusstoragesystemstosatisfytheirownloadandminimizetheamountofpowertheyimportfromtheutility,nottointentionallyexportatmaximumlevels.Assumingintechnicalreviewthataprojectwillalwaysbeexportingthefullnameplateplusnameplateamount(forAC-coupledsystems)couldhavesignificantfinancialconsequences.Forexample,assumingnameplate-plus-nameplatemighttriggeradistributionupgraderequirement,whileinactualoperationaccordingtoapprovedsettingsnosuchupgradewouldactuallybeneeded(i.e.,solarandstorageneverconcurrentlyexportatmaximumlevels).Togiveassurancetotheutilitythatasystemwillalwaysoperatewithinsetparametersacustomercanusepowercontrolsthatarecertifiedtoanationalstandard,withanappropriateresponsetimeandwhileinsuringpowerqualityforothercustomersisnotnegativelyaffected.

DISCUSSIONProposalA-B#1.ConsensusGeneratingfacilitiesthatmeetthefollowingfivespecificationswillbetreatedasnon-exportorlimitedexportininterconnectionreview:(1)theGeneratingFacilityusesapowercontrolsystem(PCS)thatpassedtestinginconformancewiththeUnderwritersLaboratoryPowerControlSystemsCertificationRequirementsDecision(ULCRD);(2)thecontrolsystemhasanopen-loopresponsetimeofnomorethan2secondsasprovidedinthecontrolsystemsspecificationdata-sheets,andthePCSisrequiredtoreduceexportpowertotheapprovedexportlimitwithin2secondsofexceedingtheapprovedexportlimit;(3)theGeneratingFacilitymustutilizeonlyUL1741certifiedand/orUL1741SAlistedgrid-supportnon-islandinginverters;(4)theGeneratingFacilitycontrolissettozero-exportorsomenon-zerocontrolledmaximumexportvalue;and(5)theGeneratingFacilityisrequiredtomaintainvoltagefluctuationstothelimitsspecifiedinRule2.Inaddition,updateRule21languagetoincludetheuseofaPCSfornon-exportandlimitedexportinterconnectionapplications.UpdateRule21languagetoincludetheuseofaPCSfornon-exportandlimited-exportapplications:Rule21mustincludeoptionsforallthefollowingconfigurations:non-exportwithrelay(alreadyexistingwithinRule21),non-exportwithPCS,limitedexportwithPCS,andlimitedexportwithrelay.Rule21alreadyhasprovisionsfortheuseofrelaysfornon-exportInterconnectionApplications,sonoupdatestoexistingRule21provisionsarenecessaryforuseofrelaysfornon-export.WhenaGeneratingFacilitymeetsthesixspecificationsinthisproposal,technicalevaluationsshouldfollowthefollowingprocess:I.Non-ExportInterconnectionApplications

1. Apowercontrolsystem(PCS)canbeusedtodemonstratenon-exportoperationunderScreenI.

2. InterconnectionprojectsarenotevaluatedforScreenD.3. Shortcircuitrelatedanalyses(ScreensFandG)arebasedontheGeneratingFacility’s

GrossNameplateRating.II.Limited-ExportInterconnectionApplications

1. ThelimitedexportvalueisusedtodeterminetheimpactstothegridinaccordancewithRule21tariffprocedures.ThelimitedexportvaluewillbeusedinscreensD,I,J,K,M,N,O,andP.Otherscreens,includingA,E,andH,willstillbeappliedasrelevant.

2. Shortcircuitrelatedanalysis(ScreensFandG)arebasedonGeneratingFacility’sNameplaterating.

Azero-exportsystemusespowercontrolsinlieuofaphysicalnon-exportrelaybutoperatesinanequivalentfashiontoasystemwithaphysicalnon-exportrelay.Rule21currentlyincludesamaximumresponsetimeoftwosecondsforrelays.Ifapowercontrolsystemrespondswithinthesametimeframetheresourceshouldbetreatedthesameasaresourceusingarelay.Also,limitedexportisnodifferent.Ifitwillnotexportbeyondthesetamountformorethantwoseconds,thecontrolledmaximumexportshouldbetreatedasthesystemcapacity.

Utilitypositions:

SDG&Eagreeswiththisproposal,basedontheassumptionthatitonlyappliestocertifiedinverter-basedgenerationdevices.PG&Egivesqualifiedsupporttothisproposal.TheCRDshouldbeabletoreplacetheneedfordiscretedirectionalpowerrelaysandstreamlinetheprocess.Thetwosecondtriptimeisfastenoughtoavoidtheneedforotherrelays.PG&E:TheULCRDdoesprovidepotentialbenefitsifusedproperly.Itprovidesalotofflexibility.So,theULCRDcertifiedPCSmaybetreatedlikeaprogrammabledevicethatneededtobesetappropriatelyforthedesiredapplication.TheguidanceandspecificcertificationforeachapplicationwerenotprovidedintheULCRDitselfdespitePG&Esuggestionstothetaskgroup.TheULCRDtaskgroupwantedtomaketheULCRDmoregeneralforuseinotherjurisdictionsaswell.So,thespecificguidancewaslefttotheutilities.Currently,theULCRDdoesnothavethespecificsettingsforeachapplication.So,PG&EstillneedtoprovideguidancedocumentsintheDIHonhowtosetthecertifiedPCStocomplywiththedifferentapplicationsbeforewecanimplementthisULCRDmethod.PG&EprovidedanalternativewordingofIssueBintheinterestsofclarification.Thisalternativewordingis:“Howshouldutilitiestreatgeneratingcapacityforbehindthemeterpairedsolarandstoragesystemsthatarecertifiednottoexportmorethanapresetvalue?”IfthisalternativewordingbyPG&EcorrectlyinterpretstheintentofIssueB,thenwiththisunderstanding,PG&EproposestousethecertifiedpresetexportvalueinitsloadflowinterconnectionstudiesinsteadofthenameplateratingofthePCS.SincefaultcurrentcontributionisafunctionofthePCSnameplate,andnotthecontrolledexportvalue,thePCSnameplatewillcontinuetobeusedforfaultstudies.

ProposalA-B#2.ConsensusGeneratingfacilitiesthatmeetthefollowingsixspecificationswillbetreatedasinadvertentexportininterconnectionreview:(1)theGeneratingFacilityusesapowercontrolsystem(PCS)thatpassedtestinginconformancewithULCRD;(2)thecontrolsystemhasanopen-loopresponsetimeofnomorethan10secondsasprovidedinthecontrolsystemsspecificationdata-sheets,andthePCSisrequiredtoreduceexportpowertotheapprovedexportlimitwithin10secondsofexceedingtheapprovedexportlimit;(3)theGeneratingFacilitymustutilizeonlyUL1741certifiedand/orUL1741SAlistedgrid-supportnon-islandinginverters;(4)theGeneratingFacilitycontrolissettozero-exportorsomenon-zerocontrolledmaximumexportvalue;(5)theGeneratingFacilityisrequiredtomaintainvoltagefluctuationstothelimitsspecifiedinRule2;and(6)theGeneratingFacilityinstallednameplatecapacityisequaltoorlessthan1000kVA.Inaddition,updateRule21languagetoincludetheuseofaPCSfornon-exportandlimited-exportinterconnectionapplications.UpdateRule21languagetoincludetheuseofaPCSforlimited-exportinterconnectionapplications.ScreenPwillincludeanadditionalnotethattheutilitywillconsider,totheextentfeasible,thecustomer’soperatingprofileandthemagnitude,duration,andfrequencyofanticipatedexport.WhenaGeneratingFacilitymeetsthesixspecificationsinthisproposal,technicalevaluationsshouldfollowthefollowingprocess:

1.ScreensA-Mareappliedusingtheaggregatenameplateinverterrating,ornameplateratingutilizedunderexistingutilitypracticeifdifferent.2.WhenrequiredtoproceedtosupplementalreviewandDistributionSystemupgradesareidentifiedformitigationofthermaland/orvoltagedeviations,theDistributionProviderwillrequestfromthecustomerthegeneratingfacilityprojectedloadingtoidentifythefollowing:(a)thefrequencyofinadvertentexport;(b)therealpower(watts)levelofinadvertentexport;and(c)thelengthofinadvertentexport.Thecustomerwillhave15businessdaysfromthetimeoftherequesttoprovidetheinformation,butwillalsobegiventheoptionofprovidingtheinformationwiththeirapplicationand/oratthetimethatSupplementalReviewcommences(tofacilitatefasterreview).3.WhenDistributionupgradesareidentifiedformitigationofthermaland/orvoltagedeviationsandcustomerhasprovidedtheinformationasoutlinedin(2),thenTechnicalReviewunderScreenPrecognizespowercontrolparameterstotheextentfeasibletakingintoaccountlocalfeederconditions.4.ForExistingGeneratingFacilitiesthatmeettherequirementsunderthisproposal,onlythelargestgeneratingfacilityinthelinesectionwouldbeusedforaggregateevaluationforsubsequentinterconnectionrequests.

NowthattheULCRDisavailabletotestpowercontrolsystemperformance,itprovidesanopportunitytoalterthereviewprocesstoutilizeamorepragmaticassessmentofthepotentialimpactsthatnon-exportandlimitedexportprojectsmayhaveonthesystem.ProposalA-B#1addresseshowthiscouldbedoneforprojectswitharesponsetimelessthan2seconds.Forprojectswitharesponsetimelessthan10seconds,theproponentsrecognizethatthesesystemshavereducedgridimpactascomparedtothosethatconstantlyexporttheirmaximumcapacity.Itisalsotrue,however,thathavingprojectsinadvertentlyexportwithanuncontrolledfrequencycouldimpactthegridinanequivalentmannertothosethatconstantlyexport.Continuingtoassumeinthereviewprocessthatprojectswithresponsetimesgreaterthan2secondsbutlessthan10secondswillbeexportingatthefullaggregatenameplateamountforalltypesofsystemimpactassessments,canresultinunnecessaryupgradesandtherebyincreasethecostsofDERdevelopmentforbothDERcustomersandotherratepayers.Thus,becausetherearenotyetacceptedpracticesorstandardstoguidehowtoscreenorotherwiseevaluatehowuncontrolledexportsupto10secondswillimpactthesystem,thisproposalisdesignedtoallowtheutilitiestoexercisetheirengineeringjudgmentinevaluatingwhethertheybelievetheuncontrolledinadvertentupto10secondsislikelytocauseequipmentoverloadorothersignificantnegativesystemimpacts.ProjectsmeetingthecriteriaidentifiedintheproposalwouldbeevaluatedattheirnameplatecapacityundertheinitialFastTrackscreens.IfinSupplementalReviewtheutilitiesidentifythatanupgrademaybenecessarywhenassumingthefullnameplatevalueisexported,theycanthenutilizeinformationprovidedbythecustomeraboutexpectedsystemperformancetoevaluatewhetherupgradesarenecessaryifaprojectislimitingitsexport.Forexample,ifacustomerhassteadyload,apowercontrolsystemmaybeabletomanagedischargingwithminimalinstancesofinadvertentexport.Whereasifthecustomerhaslargemachinesthatfrequentlyturnonandoff,thefrequencyofinadvertentexportwillbehigher.Theutilitywillbeprovidedinformationthatenablesittoweighthesefactorsinassessingpotentialimpacts.

Inthelongterm,gridengineersmaybeabletodevelopanalysistoolstoincorporatenewcustomercapabilities.Inaddition,theDERindustrymayalsobeabletoimprovetheirabilitytolimittheresponsetimeandfrequency.Inthemeantime,thisproposalseekstoimplementaninterimsolutionthatrecognizesthatstudyingprojectsatfullnameplatecapacitymaynotbeappropriateinallcasesandallowstheutilitiestoutilizeinformationaboutthesystemsexpectedperformance,andknowledgeaboutthelocalgridconditions,tomakethatassessment.

ProponentpositionbyTesla:Teslabelievesthisproposalisundulyconservativegiventhescenarioofprojectsthatexportbetween2and10seconds.Essentiallythisapproachtreatsaprojectthatexportsbetween2and10secondsthesameasiftheprojectexhibitedunconstrainedandcontinuousexport.Theinadvertentexportsinthisscenariodonotraisethesamesafety/reliabilityconcernsasunconstrainedsimultaneousexportandshouldnotbetreatedassuch.Alsotothedegreetheconcernisthatinadvertentexporteventsacrossmultipleinstallationswouldhappensimultaneously,webelievetheoddsofthatareextremelylowandwouldbeonparwiththepresumedlevelofcoincidencethatutilitiesassumewhendoingloadstudieswheretheydonotbuildouttheirsystemassumingallcustomersusealloftheirloadsatthesametime.

Utilitypositions:

PG&EsupportsSCE’sgeneralcommentsonIssuesA&B,dated3/21/19.PG&Ebelievesthatthe2secondlimitcanhelpstreamlinethecurrentno-exportandin-advertentexportrequirementssubstantially.Unlikethegovernorcontrolofthesynchronousmachinesthattheexistinginadvertentexportprovision(30seconddelay)wasdesignedfor,thePCSisanelectronicallycontroldeviceandmayoperateinmilliseconds,ratherthanseconds,andweshouldtrytocaptureitsfullcapabilityandminimizepotentialsystemimpactswheneverpossible.PG&Eacknowledgesthatchangingthetimedelayfrom30secondsto10seconddelayshouldlowerpotentialsystemimpactandmayhelptoreducetheamountofreviewtimeneeded.ButPG&EbelievesthattheexistingSecMmprovisionsprovideadequateflexibilitytoenableULCRDcertifiedPCSpowersystemtointerconnectalready.ThewordingintheexistingRule21accountsforthepossibilityofPCSusagealready.PG&EisopentoconsideringminoradjustmentstoRule21iftherearespecificgapsthatneedtobeaddressed.

ProposalA-B#3.Non-consensusAninverterapprovedfornon-exportandlimited-exportcanbesetusingdifferentmaximumexportvaluesettingsatdifferenttimesoftheyear,ifitqualifiesunderProposalA-B#1(responsetimelessthan2seconds)orProposalA-B#2-a(responsetimebetween2-10seconds),andatthediscretionoftheutilityuntilafutureschedulingstandardisreleased.

Supportedby:CALSSA,CleanCoalition,GPI,IREC,Nuvve,TeslaOpposedby: PG&E,SCE,SDG&E

Conditions:• CertifiedtotheULCRD• Settodifferentexportvaluesatdifferenttimesoftheyear• Inverter-basedandcertifiedtoUL1741SA• AtthediscretionoftheutilityuntilafutureSchedulingstandardisreleased

ReviewProcess:

• SameasProposalA-B#1,usingtemporalprofile,iftheresponsetimeislessthantwoseconds

• SameasProposalA-B#2-a,usingtemporalprofile,iftheresponsetimeisbetweentwosecondsandtenseconds

SmartinverterPhaseIIIFunction8(Scheduling)willenablesystemstohavedifferentmaximumexportvaluesatdifferentpartsoftheyear.Theexportvaluescouldvaryseasonally,monthly,orhourly.AlthoughtheWorkingGroupTworeporthasnotbeenruledupon,thisoptionwouldbeusedtoimplementtheIssue9proposal,andpotentiallyforotherpurposesassociatedwithtimeofuseratesorothereconomicconditions.DistributedenergyresourceswillberequiredtohavethisfunctionalityasofAugust2019.Untilastandardisdevelopedtotestperformanceofthefunction,utilitieswillhavethediscretiontoacceptequipmentfunctionalityandwillestablishamechanismforvalidatingproposedprofiles.Theschedulingproposedheredoesnotrequirereal-timecommunication,contrarytoutilityclaims.

Utilitypositions:

SCE:Thisproposalisprematuregiventhatnostandardshavebeendevelopedtotestcontrolsystems,asindicatedinCALSSAandIREC’sproposal.Thus,inconcept,SCEisnotagainstthisproposal,butinordertoimplementthisproposal,testingstandardsandrequirementsneedtobeimplemented.FurtherSCEnotesthatseveraladvancedfunctions,includingSmartInverterFunction#8(Scheduling)andFunction#3(LimitRealMaximumRealPowerMode)maybedelayedbeyond2020.Further,theULCRDmustbeupdatedtoincludethetemporaltestingproceduresforwhichworkhasnotcommenced.Forthesereasons,SCEbelievesthatitisprematuretorequirethesecapabilities.Insteadofaddressingthisproposalatthistime,theCPUCshouldrequirethat9monthsafterthesetechnicalspecificationsandstandardshavebeenapprovedbythestandardsapprovingbodies,utilitiesshallmakethiscapabilityavailableforuse.ThistimewillbeneededbySCEtoadopttools,forms,andtechnicalevaluationmethodsintheinterconnectionprocessandwillallowtheindustrytimetomanufacturecontrol

equipmentwiththiscapability.ThisprocesshasworkedwellaspartofSmartInverterimplementationphases,andthus,shouldbefollowedhereaswell.SDG&Edoesnotsupportthisproposal,sinceitispremature.TestingstandardsandrequirementsfirstneedtobecreatedbeforeimplementingsmartinverterPhaseIIfunction8.SDG&Edoesnotsupporthavingthediscretiontoacceptequipmentfunctionalityandestablishingamechanismforvalidatingprofiles.SDG&E’smechanismistoutilizeatestingstandardtovalidatetheperformanceandestablishuniversalstandards.SDG&E:DistributedenergyresourcesarescheduledtoberequiredtohavethisfunctionalityasofAugust2019,butdiscussionsareongoingwiththeCommissiontoevaluateifthisdateisprematureandifastandardfirstneedstobedeveloped.PG&EagreeswithSCEandSDG&Ethatthisproposalispremature.TemporalcontrolisnotcurrentlycoveredintheULCRD.ButthismaybeconsideredafterthestandardsareinplaceandafterthecommunicationsystemsareinplaceandcommunicatingwiththeappropriatePG&Egridcontrolsystems.

ProposalA-B#4.ConsensusForSCEcustomersonly,beginning6monthsaftertheapprovaloftheAdviceLetterimplementingthefinaldecisiononWorkingGroupThree,customersapplyingforinterconnectionwithaPCSmustuseaPCSalreadyontheapprovedlist.Interconnectionapplicationformsaretobeupdatedwithnewrequiredfieldsincludingcontrolinformationandlimitedexportsetting.SCEmadethisproposal,andpartiesagreedtoitwiththeunderstandingthatitwouldonlyapplytoSCEcustomers,nottocustomersofotherutilities.ProponentpositionbyCALSSA:

Thisproposalwillallowutilitiestohavethecertifiedcontrolinformationavailableaheadofinterconnectionrequests,whichwillsignificantlyexpeditetheinterconnectionprocess.

EquivalentprocessesfortheimplementationofSmartInvertersthoughtheusageofpre-approvedlists(CEC-Inverterapprovedlist)haveallowedtheutilitiesandDERapplicantstohaveanefficientandcost-effectiveinterconnectionreviewprocess.Underthoseprocesses,theutilitiesincludeintheirinterconnectionportals,thelistofpre-approvedsystemswhichthecustomercanthenselect.Whenapre-approvedcontrolsystemisselected,thenthecertificationreviewaspartoftheapplicationprocessisnotnecessary

resultinganefficientoverallinterconnectionprocess.SCEnotesthattheULPowerControlSystemsCRD(ULCRD)testingprocedureswereapprovedMarch2019andthusbythetimethefinalapprovalforWorkingGroupThreeisissuedwiththe6monthsproposed,controlmanufactureswouldhavehadmorethan12monthstocertifiedtheircontrolssystems.

UtilitypositionbySCE:SCEbelievesthatrequiringcustomertosubmitinterconnectionapplicationswithpre-approvedcontrolsystemswillallowtheutilitiestomaximizetheefficiencyintheinterconnectionportalsintheinterconnectionapplicationprocess.SCEalsounderstandsPCScontrolmanufacturersmayneedtimetocertifiedequipmentandthustheproposalallowsuptosixmonthsafterthefinaldecisiononWorkingGroupThreeforcontrolmanufacturestocompletetesting,certificationandlistingintheutilityorrelevantPCScontrollisting.

IssueDWhenshouldtheCommissionconsiderresultsofaninitialreviewordetailedstudytobebinding?UnderwhatcircumstancesshouldtheCommissionallowtheresultstobechanged?PROPOSALTheWorkingGroupdoesnotmakeanyproposalforthisissue.BACKGROUNDCALSSAproposedthisissueforconsiderationknowingthatmultiplecustomershadhadtheexperiencethatautilityhadtoldthemafterinitialreviewthatvoltagerisestudiesindicatedupgradeswerenotrequired,thenafterthecustomersinstalledsystemstheutilitysaidvoltagerisestudiesindicatedupgradeswererequired.Thesamecalculationwasdonetwicewiththesameinputsandproduceddifferentresults,causingcustomerstoincurexpensesthatwerecontrarytotheexpectationstheyhadbeengiven.However,aftertheWorkingGroupbegandiscussingthisissue,CALSSAlearnedthattheutilityinquestionhadfixedtheproblem,harmonizingthecalculationmethodologybetweentwodifferentdepartments.Utilitiesagreethatasageneralprincipletheyshouldnotchangeadeterminationofnomitigationsbeingrequiredunlessnewfactorsareconsideredorthereisamaterialchangetotheapplication.DeterminationscanchangebetweenSupplementalReviewandDetailedStudy,butthatisduetoperformingamoredetailedanalysisusingadditionalinputs.InabsenceofanyevidenceofanongoingproblemCALSSAdoesnotbelievetheCommissionneedstotakeactionatthistime.Thereisnoneedtofixaproblemthatdoesn’texist.CALSSAappreciatesthattheissuewasresolvedbytheutilitywhenitoccurredandregretscausinganunnecessarydiscussiononthetopicintheWorkingGroup.TheWorkingGroupalsodiscussedthesimilarbutdifferentissueofbindingcostestimates.However,thisissuewasconsideredextensivelyinR.11-09-011,withtheresultthattheCommissioncreatedtheCostEnvelopeOptionpilotprogramandtheEnhancedPre-ApplicationReportinD.16-06-052.TheCommissionmayneedtoconsideranotherapproachatsomepoint,butwiththepilotprogramstillunderwaytheWorkingGrouprecommendsnoactionatthistime.

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