8. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Amy C. Yip-Kikugawa is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Assembly Bill 2514 directs the Commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems.

2. Energy storage is multi-functional and can be used at the transmission, generation, and distribution levels.

3. The multi-functional nature of energy storage means that it is subject to regulation from various state and federal agencies.

4. It is not possible to adopt a single, comprehensive energy storage policy that would apply across all storage functions and regulatory agencies.

5. Parties generally agree that any adopted energy storage policy should be technology neutral.

6. Parties identified nine perceived barriers to the more widespread deployment of energy storage systems.

7. The Final Proposal includes a proposed framework to analyze energy storage based on "end uses" for storage and where in the value chain storage is being used.

8. The Final Proposal's analysis approach would consist of four major categories - regulatory framework, cost effectiveness, procurement objectives and energy storage roadmap.

9. The Final Proposal recommends four basic "scenarios" for analyzing energy storage based on existing state and Commission policy objectives.

Conclusions of Law

1. The Final Proposal should be adopted.

2. A second phase of this proceeding should commence as soon as possible to analyze the priority scenarios identified in the Final Proposal.

ORDER

IT IS ORDERED that:

1. The Energy Storage Framework Staff Proposal (Attachment A of this decision) is adopted.

2. Rulemaking 10-12-007 remains open.

This order is effective today.

Dated August 2, 2012, at San Francisco, California.

MICHAEL R. PEEVEY

President