Microgrids - - CA Public Utilities

Section § 8370

This section defines key terms used in the chapter related to electric utilities and energy resources. It describes who qualifies as a customer for public and large electric utilities, highlighting those within the service area receiving various services. It also clarifies what constitutes a distributed energy resource, referring to energy generation and storage that meets specific emissions standards. A large electrical corporation is defined as one with over 100,000 service connections in California. Additionally, the term 'microgrid' is defined as a system that incorporates various energy resources to supply power sustainably and can operate independently or alongside the main electric grid.

For purposes of this chapter, the following definitions shall apply:

(a) “Customer” means a customer of a local publicly owned electric utility or of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large electrical corporation.

(b) “Distributed energy resource” means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.

(c) “Large electrical corporation” means an electrical corporation with more than 100,000 service connections in California.

(d) “Microgrid” means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.

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(Added by Stats. 2018, Ch. 566, Sec. 2. (SB 1339) Effective January 1, 2019.)

Section § 8371

This law requires the commission to collaborate with the Energy Commission and Independent System Operator to make it easier for large electrical corporations to implement microgrids by the end of 2020. They need to create service standards, reduce deployment barriers without shifting costs among customers, and set guidelines for necessary impact studies when connecting microgrids to the grid.

They also have to develop separate rates and tariffs that prioritize safety and exclude certain compensation for diesel and natural gas, except under specific circumstances. Additionally, a working group must be formed to establish necessary standards and protocols, and they should develop a standard for direct current metering to lower interconnection costs.

The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:

(a) Develop microgrid service standards necessary to meet state and local permitting requirements.

(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.

(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.

(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.

(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.

(f) Develop a standard for direct current metering in the commission’s Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.

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(Amended by Stats. 2019, Ch. 497, Sec. 248. (AB 991) Effective January 1, 2020.)

Section § 8371.5

This law makes it clear that nothing in this chapter should be interpreted in a way that would discourage or prevent an electrical company from developing or owning a microgrid.

Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.

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(Added by Stats. 2018, Ch. 566, Sec. 2. (SB 1339) Effective January 1, 2019.)

Section § 8372

This law requires local publicly owned electric utilities in California to create a clear, standardized process for connecting customer-supported microgrids within 180 days of a request. This process includes establishing specific electricity rates and tariffs for microgrids.

Importantly, the law prohibits compensating customers for using diesel backup or natural gas, except under specific circumstances listed in another part of the law. Additionally, the rates and charges for microgrids should be fair to both microgrid users and those who are not part of a microgrid, ensuring no unfair cost shifts between the two groups. It also mandates compliance with relevant regulatory requirements.

(a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.

(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utility’s applicable regulatory requirements.

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(Added by Stats. 2018, Ch. 566, Sec. 2. (SB 1339) Effective January 1, 2019.)