CALIFORNIA PUBLIC UTILITIES COMMISSION
CPUC Continues To Plan For Southern California Energy Reliability By Approving Storage Procurement For Edison

The California Public Utilities Commission (CPUC) continued its efforts to ensure reliable natural gas and electricity supply to areas impacted by Southern California Gas Company's Aliso Canyon Storage Facility leak by authorizing another utility company serving the area, Southern California Edison, to expedite its purchase of energy storage.

In support of Governor Brown's State of Emergency Proclamation, the CPUC is pursuing activities that could be quickly implemented to alleviate the electric reliability risks to the Los Angeles Basin, such as the expedited procurement authority granted to Edison today (5/26).  The CPUC identified energy storage systems as one potential solution because they can be fast-responding, firm, and dispatchable. Energy storage resources can be potentially constructed, interconnected, and deployed on a short timeline.  Under current conditions, energy storage systems may help alleviate the reliability risks associated with the partial shutdown of Alison Canyon.

Said CPUC President Michael Picker, "Southern California faces a number of energy reliability challenges - for electricity and for residential heating - this summer, next winter, and at least for the next summer after that - all related to the loss of gas storage at Aliso Canyon. Historically, our energy system in the L.A. Basin was built around that facility.  Now we're doing what we can to expedite the next generation of energy solutions in that very constrained piece of California's infrastructure.  This is one important part of the overall effort."

Added Commissioner Mike Florio, "The CPUC will leave no stone unturned in seeking solutions to the reliability crisis caused by the Aliso Canyon incident. It will take a widespread effort and wise planning to get us through this without suffering unplanned service outages in the L.A. Basin."

Edison's storage contracts will count towards its overall storage mandate and meet its local capacity requirement needs. Resources procured in Edison's solicitation must be price-competitive with previous solicitations in which Edison has awarded contracts to comparable energy storage resources.  Further, Edison must ensure that any contracts entered into provide that sellers operate the energy storage facilities in accordance with prudent and safe electrical practices.

The proposal voted on is available at: http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M162/K427/162427521.PDF.