Station Power Workshop Alex J. Morris, Policy Director May 2, 2016 ©2016 California Energy Storage Alliance

Why Address Station Power? 1 Station power costs, if applied unreasonably, can be detrimental to storage resources  Clear definitions needed, e.g. Station Power vs Auxiliary Loads CPUC/State directing considerations of storage. Storage OIR Guiding Principles 1 include:  Optimization of the grid, including peak reduction, contribution to reliability needs, or deferment of transmission and distribution upgrade investments  The integration of renewable energy  The reduction of greenhouse gas emissions to 80% below 1990 levels by 2015 Storage OIR should address station power:  Per courts, State can direct tariffs for station power. 2 CA is empowered to act.  Rules should explicitly authorize the measurement of loads that are critical to the generation/commitment and should direct correct wholesale rate- treatment, e.g. as part of the round-trip efficiency. 1.R – Scoping Memo and Ruling Seeking Party Comments, January 5, 2016, page 4 2.DC Circuit Ruling on Station Power, 2010

© 2016 California Energy Storage Alliance 2 About CESA Board Members General Members 1 Energy Systems Inc. Alstom Energy Aquion Energy Bright Energy Storage Brookfield Renewables CA Environmental Associates Consolidated Edison Development Cumulus Energy Storage Customized Energy Solutions Demand Energy Dynapower Company Eagle Crest Energy EDF Renewable Energy Electric Motor Werks, Inc. Elevation Solar ELSYS Inc. Energy Storage Systems, Inc. Enphase Energy EV Grid Geli Gordon & Rees Green Charge Networks Greensmith Energy Gridscape Solutions Gridtential Energy Hitachi Chemical Company Ice Energy Imergy Power Systems Invenergy Johnson Controls JuiceBox Energy K&L Gates LG Chem Power LightSail Energy Lockheed Martin AES NEC Energy Solutions OutBack Power Technologies Panasonic Parker Hannifin Corporation Primus Power Princeton Power Systems RES Americas S&C Electric Company Saft America Sharp Electronics Skylar Capital Management Sony Corporation Sovereign Energy Sumitomo Electric SunEdison SunPower Trina Energy Storage Toshiba International Corporation Tri-Technic UniEnergy Technologies Younicos Making energy storage a mainstream energy resource to advance a more affordable, clean, smart, and reliable electric power system in California.