California regulators order utilities to propose common framework for customer energy resources
- PG&E, SCE and SDG&E must file joint application within 12 months
- Utilities to propose load flexibility planning scenario
- Application-development memorandum accounts capped at $500,000 across three utilities
Photo: Wikimedia Commons - NovoklimovWhat changed The decision adds "safe and reliable grid operation" to the 10 guiding principles proposed in the March 23 Ruling, making 11 guiding principles.
SAN FRANCISCO, Oct 29 — The California Public Utilities Commission (CPUC) on Oct 29 directed Pacific Gas and Electric Company, Southern California Edison and San Diego Gas & Electric to propose a common framework for coordinating distributed energy resources (DERs), such as customer batteries and electric vehicles.2
The utilities must file a joint DER orchestration application within 12 months of the decision's issuance, according to the revised proposed decision of Commissioner Darcie L. Houck in Rulemaking 21-06-017.1 Before filing, the utilities must hire a facilitator within one month to run a working group.1 The facilitator must circulate a draft report within eight months and publish a final report within 10 months.1
The utilities may set up memorandum accounts to track application-development costs, according to the decision.1 Those accounts are capped at $500,000 shared across the three utilities, and recording costs "does not establish their reasonableness or authorize recovery," the decision says.1
The decision also directs the utilities to hold a full-day workshop within 120 calendar days.1 At the workshop, the utilities must present their proposals for a Load Flexibility Scenario as a fourth scenario in their annual distribution planning process.1 A joint Tier 3 advice letter is due within 60 calendar days after the workshop.1 The release says the scenarios begin with the 2028–2029 planning cycle.2
"California’s grid is evolving, with investments in resources like batteries, electric vehicles, and distributed solar," Houck said in the release.2
The utilities' Electrification Impact Study Part 2 reports modeled cost reductions from demand flexibility.1 According to the decision, PG&E's modeled reduction was approximately $1.8 billion through 2040, SCE's was between $0.32 to $1.38 billion, and SDG&E's was approximately $697 million for the 2025-2040 period.1
The commission opened the rulemaking on June 24, 2021.1 A March 23, 2026 ruling focused the proceeding's Track 2 on a DER orchestration framework, and staff held workshops on May 21 and June 5, 2026.1