Keeping it Local: PUC to Examine Distribution System Planning
Posted on July 9, 2019 by Mike Goetz
Tags, Energy
On March 22, 2019, the Oregon Public Utility Commission (PUC) finalized an order to open an investigation into Distribution System Planning (DSP), and what it would mean for Oregon’s largest regulated electric utilities. At CUB, we believe paying more granular attention to how utilities plan at the distribution level makes a lot of sense, as times in the energy sector are changing. Across the nation, large, centralized generation and transmission projects have been deferred due to increased flexibility and capacity coming out of the distribution system. With the proliferation of new technologies like electric vehicles, home and rooftop solar, and distributed energy storage; and smart policies like peak time rebates and time-of-use rates, utilities are able to create incredible flexibility in the existing distribution system. Key to optimizing the benefits of this system will be careful planning to ensure that the right utility investments are made, and the right price signals and incentives are put in place.
Enter the PUC’s investigation into DSP. Historically, Oregon utilities have engaged in large, system-wide planning processes called Integrated Resource Plans (IRPs) to look at the needs of their system and make investments in the generation, or transmission system as needed. Since 2012, Oregon’s electric utilities have been required to file Smart Grid Reports that largely investigated rolling out smart meters and other distribution-level grid modernization measures. In recent years, PUC Staff has advocated for an increased level of distribution system planning on the part of the utilities, as their IRPs focus on large, system-related updates. This focus on distribution-level upgrades aligns with Governor Kate Brown’s November 28, 2018 Oregon Climate Agenda, which specifically references grid modernization, EV expansion, energy efficiency, and customer access to clean energy services as necessary to decarbonize the electric sector.
As detailed previously on the CUB Blog, Portland General Electric is beginning to take a hard look at the benefits and capacity that its distribution system can provide. Increased planning and focus at the distribution level will likely lead to significant cost and carbon savings. To CUB, a world where customers can sell utilities energy products, like curtailing use at peak times, is far superior to one in which new fossil fuel generation is built and lines shareholders’ pockets with profits. The technology to allow for a flexible, clean, efficient distribution system appears to largely be in place. Look for CUB to advocate for policies that effectuate that future throughout the PUC’s investigation.
At this time, the investigation is still in its infancy. There will be an ongoing series of workshops in October 2019 to help set the baseline for the investigation before it continues into 2020.
To keep up with CUB, like us on Facebook and follow us on Twitter!
07/09/19 | 0 Comments | Keeping it Local: PUC to Examine Distribution System Planning