Clean Energy Alliance: Regulatory Update
Tim Lindl – Keyes & Fox LLP
May 30, 2024
Overview
● SDG&E Energy Resource Recovery Account (ERRA) Forecast Case (A.22-05-010) ● Diablo Canyon Forecast Case (A.34-03-018)
● Quick Hits:
○ Resource Adequacy: (A.23-10-011 - Slice of Day framework) ○ Dynamic Rates: (A.22-05-002 – Income-Graduated Fixed Charge) ○ Renewable Portfolio Standard (RPS): (A.24-01-017 – RPS Plans) 2 3
SDG&E ERRA Forecast Case
● Sets the Power Charge Indifference Adjustment (PCIA) rates for 2025 ● Rates currently only include updates to energy prices (not capacity or RPS benchmarks):
○ SDG&E customer generation rates decline by 1.5 cents/kWh compared to current rates.
○ Most forecasted PCIA vintages rates have increased compared to current PCIA rates (only PCIA vintages 2009, 2010, 2022, and 2023 have declined).
● Heads I win, tails you lose: SDG&E’s Proposal to cap the Resource Adequacy Market Price Benchmark
4 Diablo Canyon Forecast Case
● Similar to ERRA Forecast case but specific to Diablo Canyon Non-Bypassable Charges. ● December 2024 Decision required PG&E to allocate RA and GHG-free attributes and settled the methodology to do so.
● PG&E’s application asks the Commission to reconsider and allocate more RA to its own customers than to customers in other service territories
5 Quick Hits
● May 17 Proposed Decision in the Resource Adequacy case would maintain the January 1, 2025 implementation date for the new Slice of Day framework
● AB 205 Fixed Charge Adopted May 9, setting it at approximately $6 (CARE); $12 (FERA); $24 (All other customers)
● Assigned Commissioner’s Ruling sets the deadline for RPS Plans as July 12, 2024.
QUESTIONS?
Tim Lindl
[email protected]
(415) 516-6654
6 PCIA Overview
TOTAL COST
OF SDG&E
PORTFOLIO
MARKET
VALUE OF
SDG&E
PORTFOLIO
INDIFFERENCE
AMOUNT
(PCIA)
RPS ADDER
($/GWH) *
GWh
MARKET
VALUE OF
SDG&E
PORTFOLIO
ENERGY
INDEX
($/GWH) *
GWh
RA ADDER
($/MW) *
MW