Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Large POU Plans
to Comply with Load Management Standards
(1)
Within six months of April 1, 2023, each Large POU, and within one year of
April 1, 2023, each Large CCA, shall submit a compliance plan that is
consistent with this Section
1623.1 to its rate approving body
for adoption in a duly noticed public meeting to be held within 60 days after
the plan is submitted. The plan shall describe how the Large POU or the Large
CCA will meet the goals of encouraging the use of electrical energy at off-peak
hours, encouraging the control of daily and seasonal peak loads to improve
electric system efficiency and reliability, lessening or delaying the need for
new electrical capacity, and reducing fossil fuel consumption and greenhouse
gas emissions. The plan shall include consideration of programs and rate
structures as specified in section
1623.1(b)-(d).
(A) The plan must evaluate cost
effectiveness, equity, technological feasibility, benefits to the grid, and
benefits to customers of marginal cost-based rates for each customer
class.
(B) If after consideration
of the factors in Subsection
1623.1(a)(1)(A)
the plan does not propose development of marginal cost-based rates, the plan
shall propose programs that enable automated response to marginal cost
signal(s) for each customer class and evaluate them based on their
cost-effectiveness, equity, technological feasibility, benefits to the grid,
and benefits to customers.
(C) The
Large POU or the Large CCA shall review the plan at least once every three
years after the plan is adopted. The Large POU or Large CCA shall submit a plan
update to its rate approving body where there is a material change to the
factors considered pursuant to Subsections
1623.1(a)(1)(A) and
(B).
(2) The rate approving body of a Large POU or
a Large CCA may approve a plan, or material revisions to a previously approved
plan, that delays compliance or modifies compliance with the requirements of
Subsections
1623.1(b)-(c), if
the rate approving body determines that the plan demonstrates any of the
following:
(A) that despite a Large POU's or
Large CCA's good faith efforts to comply, requiring timely compliance with the
requirements of this article would result in extreme hardship to the Large POU
or the Large CCA,
(B) requiring
timely compliance with the requirements of this article would result in reduced
system reliability (e.g., equity or safety) or efficiency,
(C) requiring timely compliance with the
requirements of this article would not be technologically feasible or
cost-effective for the Large POU to implement, or
(D) that despite the Large POU's or the Large
CCA's good faith efforts to implement its load management standard plan, the
plan must be modified to provide a more technologically feasible, equitable,
safe or cost-effective way to achieve the requirements of this article or the
plan's goals.
(3)
Commission Approval of Large POU and Large CCA Plans to Comply with Load
Management Standards and Material Plan Revisions
(A) Within thirty (30) days after adoption of
a plan or material plan revision pursuant to this subdivision, each large POU
and Large CCA shall submit its plan to comply with the requirements of this
Section 1623.1 or material plan revision
to the Executive Director.
(B) The
Executive Director shall review plans or material plan revisions and either
return them to the Large POU or the Large CCA for changes or submit them to the
Commission for review and potential approval. The Executive Director shall make
an initial determination whether the plan or material plan revision is
consistent with the requirements of Section
1623.1(a)(1) and
(2). In reviewing plans and material plan
revisions, the Executive Director may request additional information or
recommend changes to make it consistent with the requirements of Section
1623.1(a) (1) and
(2). The Large POU or Large CCA shall respond
to requests or recommendations within ninety (90) days of receipt from the
Executive Director. The Executive Director shall then submit the plan or
material plan revision to the Commission with a recommendation on whether to
approve it. The Commission may also request additional information and shall
approve plans and material plan revisions which are consistent with Section
1623.1(a)(1) and
(2), and which show a good faith effort to
meet the goals listed in Section
1623.1(a)(1) and
(2). The Commission may place conditions on
its approval of plans or material plan revisions that are necessary to
guarantee that the plan or material plan revision will comply with Section
1623.1(a)(1) and
(2) by a date certain.
(C) Each Large POU and Large CCA shall submit
to the Executive Director annual reports demonstrating their implementation of
plans approved pursuant to this subsection, as such plans may be revised
pursuant to this subsection. The reports shall be submitted one year after
plans are approved pursuant to subsection (2) and annually
thereafter.
(b)
Large POU and Large CCA Marginal Cost-Based Rates and Programs. Each Large POU
and each Large CCA shall develop marginal cost-based rates or public programs
structured according to the requirements of this article.
(1) Total marginal cost shall be calculated
as the sum of the marginal energy cost, the marginal capacity cost (generation,
transmission, and distribution), and any other appropriate time and location
dependent marginal costs, including the locational marginal cost of associated
greenhouse gas emissions, on a time interval of no more than one hour. Energy
cost computations shall reflect locational marginal cost pricing as determined
by the associated balancing authority, such as the Los Angeles Department of
Water and Power, the Balancing Authority of Northern California, or other
balancing authority. Marginal capacity cost computations shall reflect the
variations in the probability and value of system reliability of each component
(generation, transmission, and distribution).
(2) Within two (2) years of April 1, 2023,
each Large POU, and within twenty-seven (27) months of April 1, 2023, each
Large CCA, shall apply to its rate-approving body for approval of at least one
marginal cost-based rate, that meets the requirements of Subsection
1623.1(b)(1).
Large CCAs may apply for approval of marginal cost-based rates that are offered
by the Large IOUs in whose service areas the Large CCAs exist in.
(A) Large POUs and Large CCAs shall apply for
approval of marginal cost-based rates only for those customer classes for which
the rate-approving body determines such a rate will materially reduce peak
load.
(B) Large POUs and Large CCAs
shall provide the Commission with informational copies of tariff applications
when they are submitted to their rate-approving bodies.
(3) No later than eighteen (18) months after
April 1, 2023, each Large POU and each Large CCA shall submit to the Executive
Director a list of load flexibility programs deemed cost-effective by the Large
POU or the Large CCA.
(A) The portfolio of
identified programs shall provide at least one option for automating response
to MIDAS signals for each customer class that the rate-approving body
determines such a program will materially reduce peak load.
(B) The programs shall allow customers to
respond to MIDAS signals indicating marginal cost-based rates, marginal prices,
hourly or sub-hourly marginal greenhouse gas emissions, or other
Commission-approved marginal signal(s).
(4) Within three (3) years of April 1, 2023,
each Large POU, and within fifty-one (51) months of April 1, 2023, each Large
CCA, shall offer to each of its electricity customers voluntary participation
in either a marginal cost-based rate developed according to Subsection
1623.1(b)(2), if
such rate is approved by the Large POU's or Large CCA's rate-approving body, or
a cost-effective program identified according to Subsection
1623.1(b)(3).
(5) Each Large POU and Large CCA shall
conduct a public information program to inform and educate the affected
customers why marginal cost-based rates or load flexibility programs, and
automation are needed, how they will be used, and how these rates or programs
can save the customer money.
(c) Publication of Machine-Readable
Electricity Rates. No later than three (3) months after April 1, 2023, each
Large POU and each Large CCA shall upload its existing time-dependent rates
applicable to its customers to the Commission's Market Informed Demand
Automation Server (MIDAS) database. Each Large POU and Large CCA shall upload
all time-dependent rates, including those approved after April 1, 2023, to
MIDAS prior to the effective date of the time-dependent rates each time a
time-dependent rate is approved by the rate-approving body and each time a
time-dependent rate changes.
The time-dependent rates uploaded to the MIDAS database
shall include all applicable time-dependent cost components, including, but not
limited to, generation, distribution, and transmission. The Commission
maintains public access to the MIDAS database through an Application
Programming Interface (API) that, provided a Rate Identification Number (RIN),
returns information sufficient to enable automated response to marginal grid
signals, such as price, emergency events, and greenhouse gas
emissions.
(d) Enforcement.
The Executive Director may, after reviewing the matter with the Large POU or
the Large CCA, file a complaint with the Commission following the process set
forth in Sections
1233.1 to
1233.4 or seek injunctive relief
if a Large POU or Large CCA:
(1) Fails to
adhere to its approved load management standard plan,
(2) Materially modifies its approved load
management standard plan without approval,
(3) Does not provide information by a
deadline established by the Executive Director or the Commission, or
(4) Violates the provisions of this
article.
(e) There shall
be no reimbursement to local government entities for the costs of carrying out
the programs mandated by these standards, because the Commission has found
these standards to be cost-effective. The savings which these entities will
realize as a result of carrying out these programs will outweigh the costs
associated with implementing these programs.
1. New
section filed 1-20-2023; operative 4-1-2023 (Register 2023, No.
3).
Note: Authority cited: Sections
25213,
25218(e)
and
25403.5,
Public Resources Code. Reference: Sections
25132
and
25403.5,
Public Resources Code.
