California Commission Takes Steps to Ensure Summer Electricity Reliability

The California Public Utilities Commission on Dec. 2 introduced new programs and modifications to existing programs to lower energy demand and increase supply during critical hours to prevent electricity breakdowns during extreme heat events such as the west-wide heat waves of 2020 and 2021.

To protect the grid during extreme weather seasons, the regulator approved steps to boost power generation capacities and encourage consumers to reduce demand. The authority took these actions as part of its ongoing response to Governor Gavin Newsom’s emergency proclamation for all state utility agencies to ensure enough electricity is available to meet demand.

The agency conducted an analysis finding that 2,000 MW to 3,000 megawatts of new supply- and demand-side resources will contribute toward improving grid reliability in extreme weather conditions in 2022 and 2023. The peak demand for the year 2020 was 47,121 megawatts, whereas the peak for this year so far is 43,982 megawatts in September 2021, according to California’s grid operator. To assure utilities are able to serve their customers reliably during periods of severe weather, the agency has already taken a number of significant steps.

With a new program, residential consumers will receive credit for reducing their energy usage at critical times, with a special focus on disadvantaged communities and low-income consumers. This ensures that customers will be rewarded for reducing energy demand during peak times.

The commission modified existing demand response programs to allow participation of customers with electric vehicles by shifting their charging behavior, rewarding customers for saving electricity during grid-stressed conditions. The changes also improve participation and performance of other ongoing demand response programs.

With certain decisions in place, more consumers will have access to programs that reward them if they reduce their electricity use or sell the energy they generate through electric cars when the grid is stressed.               Further, two dynamic rate programs will test how customers respond to rate changes that occur rapidly during grid emergencies. These include rates for agricultural water pumping to shift usage to off-peak evening hours and dynamic rates that affect customer behaviour such as electric vehicle charging.

The commission ordered Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric to procure additional supplies for a total of 2,000-3,000 megawatts for summers 2022 and 2023. Further, the commission expanded authorization to procure additional supply-side resources such as storage, imports, and gas plant efficiencies.

The drought and wildfires in California have left the state without many options for generating electricity, which has led to an increasing reliance on natural gas this year.