California Commission Adopts Improvements to Electric Utility Distribution Planning With Better Use of Customer Information

The California Public Utilities Commission approved a decision to improve long-term distribution planning of electric utilities to ensure a more proactive approach to meet increasing demand. The decision requires electric utilities to use customer data more effectively to better forecast demand when planning electric grid upgrades, ensuring fewer delays for customers.

In the near future, decarbonization measures in California will impact electricity demand and the grid load. For example, building electrification and electric vehicle use are growing rapidly and put increased pressure on the electric grid. The commission seeks to make better use of customer data so that they can forecast such loads and plan for grid upgrades. This data would come from sources such as customer applications and customer energization requests.

The decision also includes extending the distribution planning horizon to a minimum of 13 years, and the utilities’ planning horizon to 10 years. Additionally, it calls for more detailed information in the Distribution Planning Process, such as inclusion of a “pending loads” category in the process and including metrics to evaluate equity.

The commission intends to improve community engagement and outreach to ensure more equitable utility planning. Pursuant to the decision, utilities are required to submit an annual community engagement plan to ensure that they consider the specific needs of different communities and a more equitable utility planning process.

Another key part of the decision is more detailed information from utilities on bridging solutions for customers waiting for grid upgrades. This information includes factors such as load flexibility, temporary solutions, and flexible service connections. This would enable faster connections and lower costs.

Recently, the commission has initiated a rulemaking process for gas utilities for long-term natural gas planning. The proceeding will consider comprehensive long-term natural gas planning approaches and methods including scenario analyses and other actions to ensure a smoother transition for natural gas customers as decarbonization measures are adopted.