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SCE Assessment of State RD&D Restructuring

SCE Assessment of State RD&D Restructuring. California Senate Hearing on PIER March 1, 2011. Policy and Grid Advances – Drivers*. GHG: 1990 levels. Once Through Cooling. GHG: 80% Below 1990 levels. 500 MW of PV. Most aggressive policies in the United States. 33% RPS. 20% RPS.

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SCE Assessment of State RD&D Restructuring

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  1. SCE Assessment of State RD&D Restructuring California Senate Hearing on PIER March 1, 2011

  2. Policy and Grid Advances – Drivers* GHG: 1990 levels Once Through Cooling GHG: 80% Below 1990 levels 500 MW of PV Most aggressive policies in the United States 33% RPS 20% RPS *This list is not comprehensive. Other energy policies or other drivers, e.g. R.A.M.F.I.T. or DG proposals, will also impact utility planning and operations 1

  3. Significant and complex RD&D is needed. Time is short *Representative Only

  4. SCE’s Guiding Principles for State RD&D for 2011-2020 • State RD&D funding awards should prioritize projects that directly help to meet or support State climate and energy policies and enhance electric system integration of new technologies and other advances • Program planning and administration must be knowledgeable, quick, effective, flexible and responsive to new information, policies, and technologies. • Decision-making should be transparent and inclusive of utilities • Funding for State RD&D should come from all California customers connected to the grid In SCE’s view, State energy RD&D restructuring efforts must incorporate these principles

  5. Assessment of LAO-Proposed Options Using SCE’s Principles LEGEND ? - Uncertain outcome - Principle met ?-TBD ?-TBD ?-TBD ?-TBD ?-TBD ?-TBD 4

  6. Conclusion If properly structured and executed, any of the LAO options could sufficiently restructure State energy RD&D for next ten years Key Provisions 1 2 3 4 Ensure funding for projects that support energy and environmental policy goals Revamp administrative structures and practices to ensure program responsiveness and timeliness Promote transparency and utility-involvement in program direction and project selection Ensure funding for State energy RD&D comes from all energy customers

  7. Appendix

  8. PIER Disbursements by Recipient, 2007-20091,2 3 1. Sources: CEC Annual PIER reports, 2007 – 2009. Records are for disbursements only, not “awards”! 2. $248 million total for three years. Includes electric funding of $192 million, and natural gas funding of $56 million. 3. Out of State awards likely range between 6 – 21% based on CEC reports from previous years and analysis of project lists. Some “out of State” awards likely go to projects conducted in CA.

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