Findings of Fact
1. Distributed generation will provide end-users with additional choices to supply their electricity needs.
2. California is in the midst of a generation shortage, and new generation, large and small, provides substantial value in addressing that shortage.
3. Section 399.15 directs the Commission to adopt "differential incentives for renewable or super clean distributed generation resources."
4. Current standby rate design differs significantly among utilities and is quite complex.
5. Today a customer who has installed generation (either a QF or a distributed generation customer) is required to take service on one of the utility's standby tariffs, in combination with their otherwise applicable tariff.
6. Net energy metering allows certain wind and solar facilities to avoid standby rates.
7. Physical assurance is the application of devices and equipment that interrupts a distributed generation customer's normal load when distributed generation does not perform as contracted.
8. Standby rates should be cost-based.
9. Supplemental power is supplied by the utility to a customer whose onsite source of generation does not regularly supply all the power necessary at their premises. The utility must plan to serve supplemental power loads.
10. Backup service is supplied by the utility in lieu of generation normally provided by the customer's onsite generation facilities during periods of unscheduled outages.
11. Backup service is available instantaneously and effectively requires the utility to reserve capacity to serve the backup load at all times.
12. Maintenance service is scheduled by the customer with the utility to replace onsite generation when the customer's generating facilities are scheduled to be out of service.
13. Diversity levels represent a statistical assumption that a certain percentage of standby load will be utilizing transmission and distribution service at a particular time.
14. Most distribution system costs to serve backup standby customers are fixed in nature.
15. If a customer is willing to provide physical assurance, infrastructure costs associated with serving that customer will either be very limited or nonexistent.
16. The utility must construct infrastructure to ensure that load from a customer taking on-demand backup service can be served.
17. Service associated with backup and maintenance power is intended to be intermittent in nature.
18. Maintenance service is arranged at a time when capacity is already available, so the utility will not need to build infrastructure to meet maintenance power loads assuming the customer provided physical assurance.
19. It is possible to estimate the probability of multiple distributed generation units being out of service simultaneously.
20. Diversity reduces transmission and distribution infrastructure requirements.
21. There are valid concerns regarding the potential for differences in the diversity on the transmission system compared to the distribution system.
22. It is through adoption of a diversity factor that backup customer will realize a lower rate than full requirements customers.
23. Diversity exists on the distribution system without physical assurance.
24. Public purpose costs are collected volumetrically under current rates.
25. A distributed generation customer taking standby service may not necessarily provide measurable grid benefits.
26. Distributed generation customers providing grid benefits may elect not to take standby service.
27. Solar distributed generation installations under 1 MW impose negligible interconnection costs on the utility system.
28. Small solar generating units will represent far less than one percent of California's peak demand requirements.
29. Reliable solar distributed generation will produce electricity coincident with peak demand for electricity.
30. Increased deployment of solar distributed generation will provide a generation benefit by reducing peak electricity demand.
31. Prevailing market conditions support increased participation in the net energy metering program.
