On April 2, 2015, the California Public Utilities (CPUC
or Commission) opened an Order Instituting Rulemaking (OIR) in response to the
enactment and ongoing implementation of legislation Assembly
Bill 2514 (Skinner, Stats.2010 - Ch. 469) and to continue to refine
policies and program details, which established the Energy Storage
Procurement Framework and Program and approved the utilities' applications in
implementing the program. This rulemaking considers recommendations
included in the California
Energy Storage Roadmap, an interagency guidance document which was jointly
developed by the California Independent System Operator, the California Energy
Commission and the CPUC.
Proceeding information and Comments filed by the parties
in R.15-03-011, can be accessed via Commission's Docket search link.
Chronology of events and
In December 2010, the CPUC opened Rulemaking R.10-12-007
to set policy for California utilities and load-serving entities (LSEs) to
consider the procurement of viable and cost-effective energy storage systems.
Under terms of state law embodied in AB 2514 (Skinner),
by October 1, 2013, the CPUC shall adopt an energy storage procurement target,
if determined to be appropriate, to be achieved by each LSE by December 15,
2015, and a 2nd target to be achieved by December 31, 2020.
In addition, the CPUC should consider a variety of possible
policies to encourage the cost-effective deployment of energy storage systems,
including refinement of existing procurement methods to properly value energy
2013, the CPUC adopted an energy storage procurement framework and established
an energy storage target of 1,325 megawatts for PG&E, Edison, and SDG&E
by 2020, with installations required no later than the end of 2024.
As required by
D.13-10-040, on February 28, 2015, the three Investor Owned Utilities (IOUs) -
PG&E, SCE and SDG&E, filed their Energy Storage (ES) Application
containing a proposal for the first ES procurement period (2014-2016).
On October 16,
2014, the CPUC approved the ES Applications with modifications in D.14-10-045.
The IOUs will
file their Applications with final ES request for offer (RFO) results for CPUC
approval by December 1, 2015.
information regarding IOU RFO Process can be accessed at:
The goal of the California Public Utilities Commission Rule 21 Interconnection Proceeding is to
promote timely, non-discriminatory, cost-effectively, transparent
interconnection of new facilities to the grid. (Order Instituting Rulemaking,
11-09-011, Sept. 27, 2011.) The CPUC determined, in R.10-12-007, that
appropriate interconnection policies are one of the major barriers toward the
deployment of storage. (R. 10-12-007 Energy Storage Phase 2 Interim Staff
Report – January 13, 2014.)
Energy Division of the CPUC staff has issued a
document proposing Issues, Priorities and Recommendations for the
Interconnection of Energy Storage in the interconnection
proceeding in order to develop the record on this topic.
The staff proposal was entered into the Interconnection Proceeding by a Ruling issued July 29, 2014. The Ruling set a
schedule for comments and reply comments and also calendared a prehearing
conference on the document.
Parties to the Interconnection Proceeding may submit
Comments by September 12 and Reply Comments by September 26. The
Prehearing Conference on the document is set for October 2, 2014 at 10 a.m.
For information on becoming a party to
the Interconnection Proceeding or submitting comments, please contact the CPUC Public Advisor.
May 9, 2016: CPUC Workshop on the Market Price Benchmark and the Power Charge Indifference Adjustment (PCIA) mechanism for Energy Storage (A.15-12-003 and A.15-12-004) - Presentations
May 2 - May 3, 2016: Joint CPUC-CAISO Workshop on Energy Storage
- May 3rd Workshop Presentations
- May 2nd Workshop Presentations
April 5, 2016: IOU's 2016 Energy Storage Procurement Plans - Presentations
Useful Background Documents
- Leading the Energy Transition Fact Book, SBC Energy Institute (September 2013)
- Electric Energy Storage: An Assessment of Potential
Barriers and Opportunities, CPUC Policy and Planning Division white paper, (July
- The Power of Energy Storage, Ethan Elkind,
UC Berkeley School of Law's Center for Law, Energy & the Environment, and
UCLA School of Law's Environmental Law Center & Emmett Center on Climate
Change and the Environment (July 2010)
- 2020 Strategic Analysis of Energy Storage in California, California Energy Commission
- Distributed Energy Storage: Serving National Interest, DNV KEMA (April 2012)
- Economic Analysis of Deploying Used Batteries in Power
Systems, Oak Ridge National Laboratory (June 2011)