Little Hoover Commission Little Hoover Commission as an

Little Hoover Commission

Little Hoover Commission as an advocate and advisor of change Bipartisan q Independent q Review of executive branch q Four to five policy reviews a year q Advise the Governor and Legislature regarding reorganization plans q

Rewiring California: Integrating Agendas for Energy Reform

Starting Question Can We Achieve the 33% Renewable Portfolio Standard by 2020 with the Existing Governance Structure?

Methodology Public Hearings Public Meetings Expert Interviews Document Review

Governance ”The need for leadership on energy is essential and cannot be ignored. ” LHC: June 2005

Organizations Coordinating Electricity in California

Governance ”Nobody would start off by designing it that way. We’re the leader in renewable energy despite the fact that it’s hard to explain what we do. ” CPUC: November 2011

Governance Despite the dysfunctional structure, California utilities are on track to achieve the RPS goal. Public Hearings: Fall 2011

Governance “Planning is About 100% Better Than it Was Seven Years Ago. ” CPUC: November 2011

RPS Progress Toward Meeting RPS Target Goals 2011 Southern California Edison 21, 10% San Diego Gas & Electric 20, 80% Pacific Gas & Electric 20, 10% 0% 10% 20% 30% Percent of retail sales from renewable sources Sources: California Public Utilities Commission. “Renewable Portfolio Standard Quarterly Report: 1 st and 2 nd Quarter 2012. ”

RPS Progress Electricity Mix for California's 10 Largest Municipal Utilities Renewables 18. 8% 4% 31% Coal 12% Large hydro 2010 19% Natural gas 2003 29% 7% Nuclear 0% 38% 34% 10% 20% 30% 40% Source: Union of Concerned Scientists. July 2012. “The Clean Energy Race: How Do California’s Public Utilities Measure Up? ”

How Much Green Will it Take to Go Green?

Will the Lights Stay On?

Are We Achieving Our Stated Economic and Environmental Policy Goals?

Layers of Policy q RPS (versions 1, 2, & 3)

Layers of Policy RPS (versions 1, 2, & 3) q AB 32 (GHG reduction) q

Layers of Policy RPS (versions 1, 2, & 3) q AB 32 (GHG reduction) q Once-Through Cooling q

Layers of Policy RPS (versions 1, 2, & 3) q AB 32 (GHG reduction) q Once-Through Cooling q Distributed Generation q

Layers of Policy RPS (versions I, II, & III) q AB 32 (GHG reduction) q Once-Through Cooling q Distributed Generation q Delta Flow Criteria q

Unintended Consequences of Legislative Trade-Offs

Intermittency Hourly Breakdown of Renewable Resources 3500 3000 2500 Megawatts a 2000 Geothermal Biosmass 1500 Biogas Small Hydro 1000 Wind 500 0. . . m a. m p. m 0 2 4 6 8 1 1 1 Time of Day a 12 Source: California Independent System Operator

Electricity Demand Hourly Electricity Demand Forecast in California 40000 39000 38000 37400 37000 36000 35000 34000 Megawatts 33000 32000 31000 30000 29000 28000 27000 26000 25000 24000 23000 222000 21000 20000 . a. m 12. p. m 11. p. m 10. . m 9 p. . m 8 p. . m 7 p. . m 6 p. . m 5 p. . m 4 p. . m 3 p. . m 2 p. . m 1 p. p. m 12. a. m 11. a. m 10. . m 9 a. . m 8 a. . m 7 a. . m 6 a. . m 5 a. . m 4 a. . m. 3 a . . m 2 a 1 a Time of Day Source: California Independent System Operator

How Much, in the Aggregate Will Recent Major Policies Related to Energy Affect Electricity Reliability and Rates?

“I Want to Go Beyond 33 Percent, but We Will Not Be Able to Do That If We Break the Bank Beforehand. ” CPUC Commissioner Michel Florio

Demand Response: Smart Consumers behind Smart Meters

Unexpected Complication

Active Agenda, No Plan

Approach Results in Separate GHG, Energy Efficiency & RPS Policies, When Savings May Be Realized if These Policies Were Part of an Integrated Whole. ” CMUA 2011

“This Results in Higher Costs for Consumers. ” CMUA 2011

California Cannot Afford Another Energy Policy Failure!

“If We Fail, We Will Impair Renewables Across the Country for Some Time. ” Bob Foster, Mayor of Long Beach 2012

Little Hoover Commission Recommendations

The Governor, Should Direct the Appropriate Executive Branch Organizations to Determine:

How Much in the Aggregate Will Recent Major Policies Related to Energy Affect Electricity Reliability and Rates, and Are These Policies Achieving the Goals?

The Governor, through a Public Process, Should Establish a Comprehensive Plan to Prioritize Current & Future Energy Goals

Until there is an Overarching Plan: Curb Your Enthusiasm

The Governor & Legislature Should Develop a Plan to Modernize Energy Governance

Little Hoover Commission Next Steps

“Democracy itself is a process of change and satisfaction and complacency are enemies of good government. ”

Little Hoover Commission www. lhc. ca. gov Carole D’Elia, Deputy Executive Director 916 -445 -2124 carole. d’elia@lhc. ca. gov