Joint CPUC-CAISO Workshop: IOU Energy Storage Track 2, R May 2, 2016 STATION POWER Gabriel Petlin/ Manisha Lakhanpal Grid Planning and Reliability, Energy Division, California Public Utilities Commission

Safety and Emergency Information In the event of an emergency, please proceed calmly out the exits. The Temporary Evacuation Location has been relocated to the Civic Center Plaza. It is located on the other side of City Hall. Exit the building at Van Ness and McAlister streets and walk past City Hall. 2

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Other Information Call in information: Conference phone line: Participant code: WebEx : Join WebEx meetingJoin WebEx meeting Meeting number: Meeting password: !Energy1 WiFi Access: login: guest password: cpuc42916 Restrooms: out the Hearing Room doors and down the far end of the hallway. Energy Storage Website: Workshop Material will be posted on the Energy Storage website 4

Objective of station power workshop: 1.Develop common understanding of station power, and how it has been resolved for conventional generating resources 2.Understand how energy storage is different from conventional resources; identify the new energy uses it involves that need to be categorized as either station power (retail) or wholesale 3.Describe the specific energy uses of storage facilities and hear alternative views on whether to classify them as components of station power 4.Identify measurement issues associated with the station power 5

Agenda Welcome, safety protocol & Updates 1.Storage OIR (R ) 2.ESDER Initiative 1:00- 1:30PM Station Power – Presentations Speakers: CAISO, SCE - Develop common understanding of what station power is, and how it has been resolved for conventional generating resources a)Background b)Current Protocols and tariffs c)Current Energy Storage Agreements 1:30- 2:15PM Break2:15- 2:30 PM Presentations and Panel Discussion Speakers –SCE, LS Power, Amber kinetics, Imergy, Powertree, Calpine, Megawatts Moderator – CAISO 1.How is energy storage different from conventional resources? 2.Identify the new energy uses it involves that need to be categorized as either station power (retail) or wholesale 3.What principles should be in place to categorize station power versus wholesale consumption for resale? 4.Identify measurement issues associated with the components of station power 5.Do these rules differ between IFOM and BTM? 2:30- 4:15 PM Wrap up 4:15-4:30 PM

Current Proceeding R Ongoing implementation of legislation Assembly Bill 2514 & refine policies and program details. Track 1 - issues that must be expeditiously resolved prior to the 2016 procurement solicitations & January 1, 2015 required Tier 2 AL filings of ESPs and CCAs Track 2 - additional issues to continue to refine policies and program details 7

Track 1- D Allowed flexibility for customer-connected projects – can be procured up to a “ceiling” of 200% of the existing customer domain targets. Did not modify the RFO process to require additional operational need or location. DC-based storage for DC microgrid – eligible Hydrogen based P2G – ineligible SGIP funded storage projects – spilt credit between unbundled customer’s IOU and CCA/ESP Voluntary ES deployments count towards the storage target of the customer’s LSE. Extends the authorization of the PCIA mechanism to recover potential above-market costs associated with departing load for market/”bundled” energy storage services procured via the 2016 solicitation. Deferred PCIA extension to the life of the contract to the Application process when the Joint IOU Protocol is addressed along with the results of the 2014 RFO solicitation. 8

Track 2 1.Revision of Energy Storage Procurement Targets 2.Eligibility (Phase 2) 3.Multiple Use Applications of Energy Storage 4.Station Power 5.Community Storage 9

Next Steps May 13, 2016 Comments filed May 20, 2016 Reply Comments filed June 15, 2016 Workshop Report filed Parties may identify and comment on issues beyond the questions listed in the Issue Paper. Commenters doing so should clearly identify and explain the relevance of any additional issue.Issue Paper 10

Thank You! Formal proceeding documents are found using the Rulemaking number R Other documents, including workshop presentations, staff reports, cost-effectiveness analysis, and other background papers are on the CPUC web site: Gabe Petlin - or Manisha Lakhanpal – or CPUC 11