IDER Workshop – Competitive Solicitations Review of SCE’s LCR RFO March 28, 2016 1 Southern California Edison
LCR Objectives & Procurement Authorization • Primary Objective of LCR RFO • Seek new resources in both West LA Basin and Moorpark • LA Basin has CPUC ‐ defined targets for technology “buckets” • There are no CPUC ‐ defined technology “buckets” for Moorpark • Secondary Objective • Seek to procure MW to support Preferred Resources Pilot (PRP) Johanna and Santiago sub ‐ areas • Improve reliability of Goleta sub ‐ area Target Description LA Basin MW** Moorpark MW Preferred and energy storage range 550 - 1,450 - Energy storage minimum 50 (Separate Requirement) - Gas-fired generation range 1,000 - 1,500 - All ‐ source * range 300 ‐ 500 215 ‐ 290 Total range 1,900 ‐ 2,500 215 ‐ 290 * All ‐ source means all technologies compete against each other with selection awarded consistent with the Loading Order and need assessments ** Procurement authority for both LTPP Track I and Track IV 2 Southern California Edison
RFO Process • 2 step solicitation leveraged • Issued RFO documents to market • SCE hosted bidders conference • Indicative offers submitted to SCE • Shortlisting process completed and notifications made to counterparties • Negotiations completed • Final offers submitted to SCE • Agreements signed by all parties 3 Southern California Edison
LA Basin Final Selection • SCE procured approximately 170 MW less than the Track IV minimum authorization and is working with the CAISO to determine whether additional resources are needed RESOURCE COUNTERPARTY LCR DETAILS TOTAL BUCKET MW LCR MW 640 Combined Cycle, GE 7FA 2X1, ~ 6.8 HR @ Alamitos AES 640 Gas ‐ fired Generation AES 644 Combined Cycle, GE 7FA 2X1, ~ 6.8 HR @ Huntington Beach 644 (GFG) Wellhead (DBE) 98 2LM 6000 Peakers @ Barre (RA ‐ only Contract) 98 TOTAL GFG 1,382 Sun Power 10.32 Behind the Meter (BTM) Solar in J/S* Renewables (RPS) 38 27.6 BTM* Solar in LA Basin Sun Power Ice Bear 28.64 ES BTM Permanent Load Shift Thermal ES in J/S AES 100 Front of Meter (IFOM) 4hr @ Alamitos Energy Storage (ES) 264 Stem 85 BTM 4 hour like DR Hybrid Electric 50 BTM 4 hour like DR 23.36 EE offers in J/S Energy Efficiency Onsite Energy, Sterling Analytics, 124 (EE) & NRG 100.68 EE offers in LA Basin Destributed 70 Distributed BTM generation that functions like DR NRG 70 Generation (DG) Demand Response 5 Traditional DR in LA Basin, at least 4 hour dispatch NRG 5 (DR) TOTAL PREFERRED RESOURCES & ENERGY STORAGE 431 TOTAL 1,813 * Behind the meter energy storage Final list of contracts subject to change 4 Southern California Edison
Moorpark Final Selection • Contract with the GFG resource is in the form of a fixed price RA ‐ only contract to avoid capital lease treatment *This ES offer includes 54 MW of Ellwood GFG enhancement. The 54 MW does not count towards the LCR MW target Final list of contracts subject to change 5 Southern California Edison
LCR RFO Process – What Worked Well • Successfully executed a first ‐ of ‐ its ‐ kind, head ‐ to ‐ head competition of all resource types • Market proposed wide range of innovative products • “Open for business” approach allowed for customized contracts for new products • Developed methodology to determine savings through M&V protocols • Methodologies distinct from DSM program EM&V approaches • Relationship management with bidders • Valuation approach that allowed SCE to compare costs and benefits across resources 6 Southern California Edison
LCR RFO Process – Challenges • Difficult task of creating pro forma contracts for new products like energy storage and aggregated energy efficiency • RFO schedule – there was too little time between RFO launch and indicative offer and the negotiations ultimately drug on too long • Requirements changed– LEFs, updated codes and standards, 20 minute response time, 2 hour vs 4 hour • Accounting concerns caused delays and contracting complexity • Many cross ‐ cutting issues to address, particularly with energy storage but also with PLS and renewable DG • Incrementality – how to prove a resource is incremental to something that has not yet happened; how to ensure incrementality as legislation (e.g. AB 802), proceedings (EE OIR), and building code evolves over time (e.g. Title 24) • Valuation challenges ensuring all products were valued fairly, particularly as it relates to energy storage • Implementation concern about overlapping preferred resource offerings especially in focused local areas resulting in customer offer fatigue and competing objectives (i.e. CPUC EE goal and LCR goal) 7 Southern California Edison
APPENDIX 8 Southern California Edison
LCR Energy Efficiency & Peak Load Shed Contracts Overview Contract Name Type Geographic Area(s) Delivery Total MW # of Term Commitment Agree ‐ ments NRG Energy EE Western LA Basin and May 2016 to 73 MW 4 Efficiency ‐ P LLC Johanna ‐ Santiago Jan 2023 NRG Energy EE Western LA Basin and Jan 2017 to 30 MW 4 Efficiency L ‐ LLC Johanna ‐ Santiago Feb 2025 Onsite Energy EE Western LA Basin, Jul 2017 to 17 MW 17 Corporation Johanna ‐ Santiago, and Mar 2025 Moorpark Sterling Analytics, EE Western LA Basin Mar 2017 to 17 MW 7 LLC Jun 2023 NRG SPV #1 LLC PLS Johanna ‐ Santiago Oct 2016 to 26 MW 16 (Formerly Ice Bear) Dec 2037 Final list of contracts subject to change 9 Southern California Edison
LCR Demand Response & Energy Storage Contracts Overview Contract Name Type Geographic Area Delivery Term Monthly MW Commitment Hybrid Irvine 1 BTM ES Johanna ‐ Santiago Jan 2017 to Dec Initial: 3 MW (AMS) 2027 Peak: 5 MW Hybrid Irvine 2 BTM ES Johanna ‐ Santiago Jan 2017 to Dec Initial: 3 MW (AMS) 2027 Peak: 5 MW Hybrid WLA 1 BTM ES Western Los Angeles Basin Jan 2018 to Dec Initial: 25 MW (AMS) 2027 Peak: 25 MW Hybrid WLA 2 BTM ES Western Los Angeles Basin Jan 2018 to Dec Initial: 15 MW (AMS) 2027 Peak: 15 MW Stem 1 BTM ES Western Los Angeles Basin Jan 2018 to Sept Initial: 8 MW 2026 Peak: 78 MW Stem 2 BTM ES Johanna ‐ Santiago Oct 2016 to Sept Initial: 0.5 MW 2026 Peak: 7 MW NRG Curtailment DR Western Los Angeles Basin Jan 2018 to Dec Initial: 5 MW Specialist 2021 Peak: 5 MW Final list of contracts subject to change 10 Southern California Edison
LCR Demand Response & Energy Storage Contracts Overview Contract Name Type Geographic Area Delivery Term Monthly MW Commitment Solar Star California BTM Goleta Oct 2016 to Sept 1 MW XXXIV, LLC Solar 2031 Solar Star California BTM Johanna ‐ Santiago Oct 2016 to Sept 12 MW XXXV, LLC Solar 2031 Solar Star California BTM Western Los Angeles Basin Jan 2018 to Dec 13 MW XXXVI, LLC Solar 2033 Solar Star California BTM Western Los Angeles Basin Jan 2018 to Dec 5 MW XXXVII, LLC Solar 2033 Solar Star California BTM Western Los Angeles Basin Jan 2018 to Dec 14 MW XXXVIII, LLC Solar 2033 Solar Star California BTM Moorpark Jan 2016 to Sept 5MW XXXIX, LLC Solar 2031 Final list of contracts subject to change 11 Southern California Edison
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