3.
Please provide your organizations comments on the high level technical assessment scenarios, mapping of resources, load forecast and dispatch.
CAISO should focus on transmission needed to deliver renewable resources into Transmission Constrained Load Areas. The analysis presented on January 4 focused on delivering resources from renewable energy areas to the high voltage 500 KV and 230 KV grid. That is only half the story; resources must also be deliverable to transmission constrained load centers.
It is difficult to develop a meaningful transmission road map when resource portfolios developed in CPUC IRP proceedings vary wildly from year to year in terms of renewable technologies and resource locations.
Here are some specific examples from the 20-year outlook resource assumptions for 2045 the CAISO presented in the January 4, 2024 update compared to the CPUC IRP High Gas Retirement Sensitivity portfolio for the 2024-25 TPP for the year 2045:
|
CAISO 20-Year Transmission Outlook Update (1-4-24)
|
CPUC IRP High Gas Retire Sensitivity (1-10-24)
|
Offshore Wind -2045
|
20.0 GW
|
0.0 GW
|
Long duration storage -2045
|
9.0 GW
|
3.7 GW
|
Battery Storage - 2045
|
48.8 GW
|
32.9 GW
|
While the CPUC resource portfolios swing dramatically from year to year, the loads are not going anywhere. State policy [SB100, SB887] clearly requires that dependence on gas fired generation in local areas must come to an end, and in transmission constrained local areas such as West LA, batteries can only provide part of the solution.
The Update to the 20-Year Transmission Outlook must focus on robust transmission solutions for local areas that are transmission constrained. It should cast a wide net and prioritize transmission solutions that meet the resource needs of transmission constrained local areas from a wide range of resources, technologies, and locations. This is especially important given how unstable CPUC Resource portfolios are from year to year.
The PTEP HVDC subsea transmission project from Central California to the LA Basin is a perfect example of the kind of robust transmission solution that can deliver renewable energy to the LA Basin from Central California offshore wind, storage and solar from the Central Valley. A project that can support delivery from a wide range of resource types and locations.
The PTEP HVDC project also injects needed local stability (voltage and frequency support) as well as black start capability to West LA when existing local gas generation is unavailable or is eventually retired in future CPUC resource portfolios.
By focusing on least regrets transmission into local areas that are constrained, the CAISO can avoid a situation where, because of portfolios with shifting resource types and locations, transmission needs identified in a future TPP were not anticipated in the 20-Year Outlook.
5.
Please provide any additional comments your organization has on the 20-Year Transmission Outlook update.
CAISO 20-Year Transmission Outlook Update1/4/24 Stakeholder Meeting
Cal Western Comments
California Western Grid Development LLC, (“Cal Western”) appreciates this opportunity to comment on the January 4, 2024, CAISO 20-Year Transmission Outlook Update.
Cal Western strongly endorses the 20-year transmission outlook update. A conceptual roadmap showing how the grid could be expanded to support California’s decarbonized future is critical to good planning.
Prioritize Transmission Solutions for Transmission Constrained Local Areas.
Cal Western requests the CAISO 20-year transmission outlook update fill an additional void in the California resource and transmission planning process: to evaluate if the CPUC strategy of building more and more system wide renewable energy resources to achieve decarbonization is seriously flawed. Flawed because CPUC models are unable to detect transmission constraints that will force gas plants to be dispatched out of merit order to maintain local reliability.
The CPUC is requesting CAISO provide this leadership and identify transmission needs for transmission constrained local areas. As stated in the recent 1/10/24 CPUC IRP Ruling transmitting Portfolios for the 2024-25 TPP:
“Conducting locational analysis within the context of IRP is difficult, because much of our [CPUC] analysis historically has been focused at the system level. The CAISO, however, has the ability to do much more granular and detailed analysis of local reliability needs. Therefore, we find it prudent to ask the CAISO to conduct this sensitivity analysis for the 2024-2025 TPP.” [1]
The CAISO lead role in identifying transmission needs for local areas should not be limited to the 2024-25 TPP. CAISO leadership on transmission solutions for constrained local areas is an essential part of the CAISO 20-Year Transmission Outlook Update, the 2023-24 TPP and all future TPPs.
The CPUC planning tools RESOLVE and SERVM simply do not have the zonal granularity to determine if the CPUC stated strategy of building ever more system wide renewable resources will work to reduce dependence on fossil generation in major load centers such as the LA Basin and SF Bay area.
This CPUC strategy is stated at page 74 of the January 10, 2024, CPUC IRP ruling. The CPUC is planning ever more renewable resources in an effort to push gas fired resources further up the resource dispatch stack and thereby run at ever decreasing capacity factors. A strategy that is flying blind to transmission constraints that prohibit renewable energy from flowing to major load centers such as the LA Basin. As a result, gas plants in transmission constrained load pockets are likely to operate at ever-increasing capacity factors as local loads grow and perhaps to charge local utility scale batteries—unless and until more transmission is built.
CAISO has the tools and resources to provide the leadership that will allow California to realize the SB100 goals, meet the requirements of SB887, and allow citizens including disadvantaged communities in major load centers such as the LA Basin to benefit from cleaner air.
Additional transmission to relieve constraints into local areas is also needed to allow system resources to compete with local resources in meeting the energy needs of transmission constrained load pockets. New transmission that can enable system resources to compete with local resources will head off the potential dire economic consequences of monopsony pricing by a few fossil generators that are available resources to meet load requirements in local load pockets.
The California Department of Water Resources recently contracted for resources needed to create the AB 205 California Strategic Reserve is a good example of the extraordinary prices that a fossil generator located in the transmission constrained local area could demand for Local RA procured through the CPUC IRP proceeding or procured through the CAISO emergency procurement provisions.
The Dept of Water Resource, the agency responsible for securing California’s strategic reserve resources paid the incredibly high price of nearly $1.2 billion for 2,200 MW of gas plants to be in emergency standby for three years.[2]
This extraordinary cost was surely driven by a number of factors, including the limited supply of uncontracted-for resources with the characteristics necessary to participate in the Strategic Reserve, in other words a lack of competition.
Now let’s consider the LA Basin in the 2030’s. Without new transmission, West LA alone will need 3,000 to 5,000 MW of local gas plants for local RA.[3] The existing plants eligible to supply West LA Basin RA will be 40, 50 and 60+ years old. They were not designed to run that long. Some will fall by the wayside due to mechanical failure, some will be shuttered by ever demanding environmental regulations. The remaining few available plants will be the only game in town available to keep the lights on. One can easily imagine the CPUC regulated LSEs paying more than the cost of new transmission for just a few years of West LA RA service from the remaining local gas plants.
There is an additional reason the CAISO should address transmission needs of location constrained load pockets in the 20-Year Transmission Outlook Update and in the current TPP.
Resource portfolios developed in CPUC IRP proceedings vary wildly from year to year in terms of renewable technologies and resource locations.
Here are some specific examples from the 20-year outlook resource assumptions for 2045 the CAISO presented in the January 4, 2024 update compared to the CPUC IRP High Gas Retirement Sensitivity portfolio for the 2024-25 TPP for the year 2045:
|
CAISO 20-Year Transmission Outlook Update (1-4-24)
|
CPUC IRP High Gas Retire Sensitivity (1-10-24)
|
Offshore Wind -2045
|
20.0 GW
|
0.0 GW
|
Long duration storage -2045
|
9.0 GW
|
3.7 GW
|
Battery Storage - 2045
|
48.8 GW
|
32.9 GW
|
While the CPUC resource portfolios swing dramatically from year to year, the loads are not going anywhere. State policy [SB100, SB887] clearly requires that dependence on gas fired generation in local areas must come to an end, and in transmission constrained local areas such as West LA, batteries can only provide part of the solution.
The Update to the 20-Year Transmission Outlook must focus on robust transmission solutions for local areas that are transmission constrained. It should cast a wide net and prioritize transmission solutions that meet the resource needs of transmission constrained local areas from a wide range of resources, technologies, and locations. This is especially important given how unstable CPUC Resource portfolios are from year to year.
The PTEP HVDC subsea transmission project from Central California to the LA Basin is a perfect example of the kind of robust transmission solution that can deliver renewable energy to the LA Basin from Central California offshore wind, storage and solar from the Central Valley. A project that can support delivery from a wide range of resource types and locations.
The PTEP HVDC project also injects needed local stability (voltage and frequency support) as well as black start capability to West LA when existing local gas generation is unavailable or is eventually retired in future CPUC resource portfolios.
By focusing on least regrets transmission into local areas that are constrained, the CAISO can avoid a situation where, because of portfolios with shifting resource types and locations, transmission needs identified in a future TPP were not anticipated in the 20-Year Outlook.
20-Year Outlook Update Local Area Battery Analysis.
Cal Western strongly endorses the need for CAISO to update its local area battery analysis. Based on comments during the January 4, 2024, Stakeholder meeting, we understand that CAISO has not yet evaluated transmission needs to local areas that will likely emerge as transmission constraints render battery solutions infeasible due to charging limits.
We look forward to the results of that analysis and ask the CAISO to report in detail on situations where batteries in transmission constrained local areas depend on local gas plants for charging.
In cases where batteries meet local reliability requirements by relying on gas generation for charging, those battery solutions should be rejected and replaced by transmission solutions to allow clean system preferred resources meet local reliability needs.
SB 887 requires a substantial reduction in reliance on fossil generation in transmission constrained local areas by 2035. Increasing the use of local area fossil resources to charge local batteries flies in the face of this legislative mandate, which had 100% approval in both the Senate and the Assembly.
Given the Senate Bill 887 focus on reducing reliance on gas-fired resources by 2035, and the 10 year or more lead time for new transmission, this issue must be addressed in the 20-Year Transmission Outlook, and now, starting with the 23-24 TPP.
Respectfully Submitted
Marty Walicki, Managing Member January 18, 2024
Three Rivers Energy Development LLC*
796 Tioga Drive
Ventura, CA 93001
Telephone: (202)243 3052
* Three Rivers Energy Development LLC is developing the Pacific Transmission Expansion Project (“PTEP”) on behalf of California Western Grid Development LLC and is authorized to file these comments on its behalf.
[1] CPUC Proposed Decision Adopting 2023 Preferred System Plan and Related Matters, January 10, 2024, page 80
[2] See Cal Matters article by Rachel Becker dated August 15, 2023 which states: “……..three power plants in Long Beach, Huntington Beach and Oxnard will be kept in reserve for three more years to feed energy into the state’s grid during power emergencies”……” The state agreed to pay the plants’ operating companies about $1.2 billion from 2024 through the end of 2026 to stand by during energy events, such as heatwaves.” https://calmatters.org/environment/2023/08/southern-california-natural-gas-plants-remain-open/
[3] See the 2022-23 TPP Final Transmission Report, Appendix J, Figure J.3.2-77 on page J-112 shows significant West LA reliance on gas plant, summer hours for the year 2032 show West LA loads consistently exceed the transmission capacity into West LA by 3,000 to 5,000 MW.