Case Studies

An effective partnership between Gridworks and the New Mexico Public Regulation Commission has made it possible for an under-staffed agency to overcome challenges in its transition to clean energy.

Overview

In 2019 New Mexico adopted the Energy Transition Act, setting a zero-carbon resource standard for investor-owned utilities by 2045. The New Mexico Public Regulation Commission, an under-staffed agency transitioning from elected to appointed Commissioners, faced the challenge of leading utilities toward their ambitious target.

How did the Commission push ahead under challenging circumstances? Through partnerships and effective stakeholder engagement which are led by the Commission and supported by Gridworks.

Approach 

Gridworks partnered directly with Commissioners and staff to design and execute impactful stakeholder engagement. The initiative included:

• The New Mexico Advanced Inverter Working Group which met 12 times over eight months and developed six recommendations. Over 55 individuals representing 25 organizations actively participated.
• A Grid Modernization Workshop Series which consisted of 10 workshops over six months, followed by discussions between 54 organizations.
• A Transportation Electrification Workshop which engaged 17 organizations, and a Transportation Electrification Summit with 66 participants.

Outcomes

These initiatives accelerated New Mexico’s clean energy policy on four fronts:

1. Reform of  interconnection policies speeding clean distributed generation;
2. Introduction of new guidance for utility investment in transportation electrification;
3. A Gridworks report and Commission briefing recommending new utility investment in a modern grid; and
4. A program advancing customer community solar options.

Overview

In 2019, the Hawaii Public Utilities Commission decided to take on advanced rate design in a full-force effort coordinated with DER Program and Technical updates. This case study takes a closer look at Hawaii’s advanced rate design initiative and the role of the 2020 Advanced Rate Design Working Group facilitated by Gridworks.

The Challenge

While Hawaii is home to some of the most progressive clean energy policies, the Hawaiian Electric Companies’ rate design had not significantly changed for a number of years. The Hawaii Public Utilities Commission recognizes that dynamic rate designs are critical to align customer behavior with grid needs and realize the full value of DER.  However, a number of competing priorities must be balanced with new rate design including installation of advanced metering infrastructure across the islands and updates to existing DER program designs.

Approach

To meet Hawaii’s needs, Gridworks designed and facilitated Hawaii’s Advanced Rate Design Working Group.

Over a three month period, the Working Group met to discuss rate design theory, necessary data inputs, and parties’ rate design proposals. In total, the Working Group convened in seven biweekly, three-hour meetings and two supplemental one-hour meetings focused on data.  Meeting subjects included:

• Cost Classification
• Revenue Apportionment
• Utility Cost of Service Study Methods
• Surcharges
• Residential Rate Proposals

• Commercial Rate Proposals
• Electric Vehicle Rates Proposals
• Lessons Learned from Rate Design Pilots
• Marketing, Education, and Outreach
• Commission Guidance

The Working Group hosted industry experts to share experience and lessons learned on different aspects of rate design, including cost classification, revenue apportionment, marketing, and lessons learned from pilots in other jurisdictions. These shared learning opportunities provided the Working Group with a common foundation and consistent language to apply in Working Group discussions.

Throughout the Working Group process, parties presented their principles and ideas for time-of-use rate design, including the appropriate data sources and the availability of those sources. Parties included the Hawaiian Electric Companies (which serves the islands of Oahu, Hawaii, Maui, Molokai, and Lanai), the Consumer Advocate, and DER Parties (a coalition of DER advocates). The Parties’ commitment and dedication to providing detailed proposals was integral to the productivity and success of the Working Group.

Outcomes

The Advanced Rate Design Working Group initiative led to the following outcomes:

• Shared learning among stakeholders and staff on key advanced rate design concepts
• New opt-out time-of-use rates for residential and commercial customers comprised of a:
  • Customer charge to recover customer-specific metering and billing costs
  • Grid access charge to recover costs to connect to the electric grid
  • Time-differentiated energy charge at a 1:2:3 price ratio for overnight, daytime, and peak periods, respectively
• Establishment of a three-phased implementation process:
  • Ramp Up: Finalize the rate design; Evaluation and Assessment plan; Marketing, Education, and Outreach plan; and the utility’s internal preparations (e.g., training Call Center staff, updates to the billing system)
  • Roll Out: One-year study period to track customer behavior, bill impacts, and other issues relating to customer enrollment in opt-out TOU rates
  • Evolve: Implement updates to TOU rate design, inputs, and/or implementation, as needed, prior to broader customer enrollment
• Bill protection for residential customers for bill increases over $10 per bill (for the first six months)
• Reconvening of the Advanced Rate Design Working Group to finalize TOU rate development, monitor implementation progress, and discuss future updates

Overview

In 2020 the Oregon Public Utility Commission partnered with Gridworks to develop a transparent, robust, and holistic regulatory planning process for electric utility distribution system operations and investments. Under the distribution system planning investigation (docket UM 2005), Commission Staff led an inclusive stakeholder process to foster shared learning on distribution system planning practices and develop a common vision and principles for distribution system planning. Gridworks supported the Commission’s success by designing and facilitating a series of 12 workshops and webinars with robust stakeholder participation, and contributing to the resulting guidelines.

The Challenge

Historically, utility investments in the distribution system were determined with little public engagement or oversight. Moreover, those investments were typically engineered to support one-directional flow of power and communication, and serve predictable load patterns. Over the past decade, these historic practices have been challenged as customers increasingly adopt technologies like rooftop solar and electric vehicles, while communities demand more choice in their energy future. These trends have called utilities to open their decision-making processes to the public, while challenging regulators to facilitate more transparent, robust and holistic stakeholder processes.

Approach

Over nine months, Oregon PUC Staff and Gridworks completed the following process to advance the investigation goals.

Outcomes

This initiative led to the following outcomes:

• Broad stakeholder support for new Commission rules stemming from 12 engaging webinars

• Comprehensive, staged approach to Distribution System Planning reform, adopted unanimously by the Oregon Public Utility Commission

• Industry leading Community Engagement Plan, advancing equity and community needs through a new, open distribution system planning process

The outcomes fulfill the Commission’s goal of establishing a transparent, robust and holistic regulatory planning process for electric utility distribution system investment and operations.

Overview

In 2019, California’s energy agencies partnered with Gridworks to facilitate the Vehicle-Grid Integration (VGI) Working Group and advance the adoption of electric vehicles (EVs) and clean energy. As facilitator, Gridworks engaged stakeholders from a variety of agencies and organizations to identify and report on opportunities to use electric vehicles for cost and emissions reductions within the power sector.

Landscape

In pursuit of a carbon-neutral economy, California set a goal to have 5 million zero-emission vehicles on the road and 250,000 charging ports in service by 2030. The state also emphasized that accelerating vehicle grid integration would reduce costs or mitigate cost increases for all ratepayers that might otherwise emerge as a result of increased usage of EVs.

Vehicle Grid Integration offers numerous potential benefits, including:

• Accelerating the adoption of EVs through incentives that lower the total cost of vehicle ownership for both individual owners and fleet operators.

• Reducing costs to electricity ratepayers by reducing power transmission congestion and the need for costly distribution system upgrades, as well as reducing the need to invest in new fossil-fuel electricity generation.

• Incentivizing increased decarbonization of the electric sector by expanding the use of clean energy and providing renewable grid services.

Because VGI represents a historical merging of the clean transport and clean energy sectors, the Working Group needed to build consensus among an extensive group of stakeholders to realize these benefits.

Approach

The VGI Working Group engaged experts from over 80 organizations to identify the value of a wide range of VGI use cases, then to develop and vet policy recommendations. Over a ten-month period, Gridworks—together with the California Public Utilities Commission and the state’s three major utilities—led an intensive series of workshops, subgroups, dialogues, and solicitations of Working Group members.

A central challenge of VGI—the need to integrate across multiple sectors—was reflected in the diversity of the Working Group’s participants, which included electric utilities, community choice aggregators, EV manufacturers, charging providers, government leaders, and advocacy and research groups.

Outcomes

This initiative led to several achievements in support of Vehicle Grid Integration, including:

• Identifying more than 300 different VGI use cases potentially able to provide value by 2022.

• Developing 92 individual recommendations for policy actions to immediately begin realizing the value of VGI.

• Assessing opportunities and stakeholder interests across a full range of sectors and applications

• Influencing a comprehensive, unanimous policy decision by the California Public Utilities Commission that is strongly based on the Working Group’s results, launching California’s VGI future less than six months after the conclusion of the Working Group.

Overview

In 2019, PG&E partnered with Gridworks to facilitate discussion and collaboration among diverse stakeholders, including gas workers and environmental and consumer advocates. This assembly—the Gas Transition Group—worked together to achieve a common goal: a just, measured transition of the gas system that would protect customers from unreasonable cost increases, advance social equity, and ensure the safety of utility workers and the general public.

Landscape

California’s commitment to the decarbonization of its economy by 2045 raises fundamental questions about the future of its utility gas systems, which are the source of at least 50 percent of the state’s annual greenhouse gas emissions. A 2019 analysis performed on behalf of the California Energy Commission warned that without a transition plan for a low carbon future, rates for customers remaining on the gas system could rise from about $1.50 per therm today to as much as $19 per therm by 2050. Compounding the potential for unacceptable rate increases, the lack of a transition plan for the gas system puts the security of low-income customers and critical utility workers at risk.

Approach

Prompted by these circumstances, PG&E, California’s largest gas utility, organized the Gas Transition Group and contracted Gridworks to facilitate discussion, collaboration and the development and distribution of policy recommendations.

Over a six-month period, Gridworks and the Gas Transition Group worked together to:

Outcomes

This initiative led to a number of achievements towards a more equitable, affordable, decarbonized and smaller gas system transition, including:

• Reaching consensus among 14 diverse organizations previously at odds to jointly promote gas transition policies

• Engaging more than 250 thought leaders and policymakers to promote the California’s Gas System in Transition report.

• The California Public Utilities Commission adopting the primary recommendation of our report, the initiation of long-term gas system planning, through policy action in just 4 months.

With ongoing support from Gridworks, PG&E’s Gas Transition Group continues its collaboration and development of regulatory frameworks for long-term integrated gas system planning and targeted electrification, promising continued progress toward its goals.