Energy Storage 
2014 – 2015 PG&E Solicitation 

 

 

Background 

In December 2015, PG&E filed an Application requesting CPUC approval of contractual agreements resulting from its 2014-2015 Energy Storage solicitation. The solicitation results from the CPUC’s authorization for utilities to procure energy storage resources as part of their 2014 Biennial Procurement Plans.  

PG&E requested cost recovery for seven energy storage contracts. 
 

  • 5 contracts are energy storage agreements with third-party sellers who will provide storage services to PG&E.    

 

  • 2 contracts are Purchase and Sales Agreements (PSA), which third-parties will develop and construct energy storage facilities and bring them to commercial operations, at which time PG&E will assume ownership.   

PG&E asserts that the Purchase and Sales Agreements will defer investments in traditional distribution substation transformer upgrades.   

  

 

ORA Position 

ORA’s analysis found that PG&E’s proposed Purchase and Sales Agreements are not reasonable investments and may subject customers to unnecessary reliability risks compared to the traditional distribution substation transformers for which they are intended to defer.  Accordingly, ORA recommends that the CPUC deny PG&E’s request for these two Purchase and Sales Agreements (PSAs) because:  
 

    

  • The PSAs received poor economic evaluations under both PG&E’s proprietary evaluation methodology, as well as a methodology applied by all large investor-owned energy utilities. 

 

  • The “learning experiences” asserted by PG&E are better evaluated in the CPUC’s Electric Program Investment Charge (EPIC) Program.  

 

   

 See ORA’s April 25, 2016 Testimony with its full analysis of PG&E’s Application. 

  

  

Proceeding Docket

See the CPUC Proceeding docket. 

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