On December 16, 2010, the Commission opened Rulemaking (R.) 10-12-007 to implement the provisions of Assembly Bill (AB) 2514 (Stats. 2010, ch. 469). AB 2514 directs the Commission to determine appropriate targets, if any, for each load-serving entity (LSE) as defined by Pub. Util. Code § 380(j) to procure viable and cost-effective energy storage systems (ESS) and sets dates for any targets deemed appropriate to be achieved.1 Although AB 2514 directs the Commission to open such a proceeding by March 1, 2012 (§ 2836(a)), the Commission chose to open it sooner, explaining that it "see[s] the enactment of AB 2514 as an important opportunity for this Commission to continue its rational implementation of advanced sustainable energy technologies and the integration of intermittent resources in our electricity grid."2
As stated in the Order Instituting Rulemaking (OIR), the purpose of this proceeding is to:
1. review, analyze and establish, if appropriate, opportunities for the development and deployment of energy storage technologies throughout California's electricity system;
2. remove or lessen any barriers to such development and deployment;
3. review and weigh the associated costs and benefits of such development and deployment; and,
4. establish how those costs and benefits should be distributed.3
The OIR, however, did not establish a precise scope. Rather, parties were directed to file initial comments responding to the guidance provided in the OIR and the Commission's Policy and Planning Division's white paper on Electric Energy Storage.4 These comments, along with an initial workshop, would then serve as the basis for developing a more precise scope of the proceeding.
Pursuant to the OIR, comments were timely filed by: A123, Alliance For Retail Energy Markets (AReM), Beacon Power Corporation (Beacon), Brookfield Renewable Power, Inc. (Brookfield), California Hydropower Reform Coalition, California ISO (CAISO), Calpine Corporation (Calpine), California Energy Storage Alliance (CESA), Consumer Federation of California (CFC), Division of Ratepayer Advocates (DRA), Environmental Defense Fund, Ice Energy, Inc., Marin Energy Authority, Nevada Hydro Company, Pacific Gas & Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), Southern California Edison Company (SCE), Vote Solar Initiative (VoteSolar), Walmart Stores, Inc. & Sam's West, Inc., Western Power Trading Forum, and Xtreme Power.
An initial workshop was held on March 9, 2011. A duly noticed prehearing conference was held on April 21, 2011. The Assigned Commissioner and Administrative Law Judge's (ALJ) Scoping Memo and Ruling (Scoping Memo) was issued on May 31, 2011. The Scoping Memo determined that the proceeding would be divided into two phases - the first phase would develop the overall policies and guidelines for ESS, while the second phase would develop the costs and benefits for ESS and establish how they should be allocated.5
On June 28, 2011, a second workshop was held. The purpose of that workshop was to address ESS currently in use and the barriers and impediments to further widespread use of storage. The workshop presentations were entered into the record on July 21, 2011.6 Comments on the documents were filed on August 29, 2011; reply comments were filed on September 16, 2011.
On December 12, 2012, Commission Staff (Staff) issued its Initial Energy Storage Framework Staff Proposal (Initial Proposal). Comments on the Initial Proposal were filed on January 31, 2012; reply comments were filed on February 21, 2012. Staff issued its Final Energy Storage Framework Staff Proposal (Final Proposal) on April 3, 2012.
1 Unless otherwise stated, all statutory references are to the Public Utilities Code.
2 OIR at 1.
3 OIR at 5.
4 The white paper is Attachment A of the OIR.
5 Scoping Memo and Ruling of Assigned Commissioner and Administrative Law Judge (Scoping Memo), filed May 31, 2011, at 3.
6 See Administrative Law Judge's Ruling Entering Documents into Record and Seeking Comments, filed July 21, 2011 (ALJ July 21 Ruling).