DSIP – Distribution System Planning June 2, 2016

Integrated Distribution Planning Data is at the center of SolarCity’s vision for Integrated Distribution Planning Integrated Distribution Planning

The Need for Data Transparency Data sharing informs DER industry business decisions Should customers and DER providers pursue projects on a specific feeder? Do DER providers have enough business runway to retain local employees? Should DER providers open a warehouse/office in a specific geographic area? Data sharing supports industry innovation Data sharing unlocks third party engagement, dramatically increasing pace of innovation Third parties have and can obtain knowledge to engage in and improve distribution planning, particularly in new skillsets that are not traditional utility strengths (i.e. data analysis, new product development, software development, etc) Data sharing enables efficient planning and unlocks commercial opportunities Data sharing enables informed scrutiny of utility investment plans and improved screening criteria; which ultimately manifests in identification of commercial opportunities for DERs Solely publishing outcomes of analyses (i.e. hosting capacity analyses) does not enable sufficient scrutiny of utility methodology/decision making

Grid Needs and Planned Investments

Hosting Capacity Data

Locational Value Data

Data Standardization and Machine – Readable Formats General Rate Case Worksheet PDF Standard Format Text File (e.g. JSON) Information should be in a standardized format, downloadable in bulk, and be machine readable Access to information through online maps alone is not enough if it does not meet the criteria above

Responses to Suggested Questions – 1 of 3 Discuss the types of grid needs that can best be met through NWA solutions. Load relief Reliability Resiliency New Customer Load/Service Asset replacement Voltage and power quality Increase hosting capacity / renewables integration System continuity

Responses to Suggested Questions – 2 of 3 What are the suitability criteria for non-wires alternatives? / What is the time frame to implement non wires solutions? Time to when traditional investment would need to be made: Driven by sourcing mechanism and implementation time. Sourcing can be sped up by standardizing and streamlining more of the process for competitive solicitations. Complementary to competitive solicitations, include a tariff-based sourcing mechanism, for DERs that can provide system-wide benefits and build on positive network effects. Implementation time could be very fast if just sending new control signals to existing assets. For the near-term 18 months may be a reasonable threshold (e.g. ~6 months for sourcing, ~12 months to deploy solution), but a goal should be to further reduce this threshold over time. Ability of NWA to meet grid need: Often best determined through a solicitation process. Cost-effectiveness of NWA: Conduct BCA of best portfolio of solutions obtained through solicitation process and rely on the Societal Cost Test, per PSC guidance.

Responses to Suggested Questions – 3 of 3 What are the characteristics of a solicitation process for non-wires solutions? One possible approach: Specify grid need (include detailed information about the need, e.g. statistics about the frequency and shape of overloads by year) Estimate cost of traditional solution Solicit proposals for non-wires solutions Provide data to respondents, including the nature of the grid need,  the traditional solution cost, and additional info to support BCA calculation estimate Respondents propose solutions Combine proposed solutions into best portfolio Conduct BCA of best NWA portfolio versus traditional solution Deploy NWA if cost-effective What are the value components of NWA - what are the benefits (and ways to quantify) to the overall system? Refer to the BCA Order