Working Group Meeting #2 Measurement, Metering and Settlement: Storage Behind the Utility Meter D.18-01-003 in R.15-03-011 March 5, 2018 9:30 am to 4 pm

Remote Participation Conference Line: 1-866-830-4003 Participant Code: 9869619 WebEx https://centurylinkconferencing.webex.com/centurylinkconferencing/j.php?MTID=m34e32b8f62d837be4da7fd5d84bc0ef3 Meeting number: 715 054 067 Password: !Energy1

Agenda 9:30 – 10:00 am Introduction & Overview 10:00 – 11:00 am Introductions and Safety Talk Process Update 10:00 – 11:00 am Informal Panel Discussion: Retail and Wholesale Measurement, Metering and Settlement for Storage Behind the Meter PG&E SCE CAISO 11:00 am – noon Informal Panel Discussion: Issues and Recommendations for Modifications to Current Processes Stem CPUC Noon – 1:15 pm LUNCH 1:15 – 2:30 pm Develop List of Issues & Venues 2:30 – 3:45 pm Report Section Writing & Open Discussion 3:45 – 4 pm Wrap up & Next Steps

Safety and Emergency Information In the event of an emergency, please proceed calmly out the exits. The evacuation site is the Garden Plaza area between Herbst Theater and the War Memorial Opera House Buildings, on Van Ness Exit the building at the Main Entrance at Van Ness and McAllister streets, cross McAllister Street, pass Herbst Theater and enter the plaza.

Update – Schedule of Meetings Meeting 3 – March 13th: Appropriate metering, measurement, and accounting for in front of the meter (IFOM) storage resources Meeting 4 – March 28th: Ensuring Resource Performance:  Rules 6 – 10; Enabling Distribution Level Resources to Participate in a DERA Meeting 5 – April 5th: Ensuring Resource Performance:  Rules 6 – 10, changed from April 4th continued; DERA, continued Meeting 6 – April 20th: Incrementality and Compensation:  Rule 11 changed from April 19th Meeting 7 – May 3rd: Incrementality and Compensation:  Rule 11, Continued Meeting 8 – May 17th: TBD Meeting 9 – May 31st: TBD Meeting 10 – June 7th: Report Update Report Schedule First Draft: June 29, 2018 Informal Comments on Report: July 13, 2018 Edited, Final Draft: August 1, 2018 Report due: August 9, 2018

Use Cases BTM storage providing customer level services to the customer BTM as well as providing a load drop to the market, and providing RA to an IOU, as well as distribution level services to a DSO. NEM & Non-NEM. DERP & PDR. BTM storage providing customer level services to the customer BTM as well as selling directly into the market, providing RA to an IOU, as well as distribution level services to a DSO. NEM & Non-NEM. DERP & NGR. BTM storage providing customer level services to the customer BTM as well as providing a load drop to the market, providing RA to an IOU, as well as transmission level services to the ISO. NEM & Non-NEM. DERP & PDR. BTM storage providing customer level services to the customer BTM as well as selling directly to the market, providing RA to an IOU, as well as transmission level services to the ISO. NEM & Non-NEM. DERP & PDR. BTM storage providing customer level services to the customer BTM as well as distribution level service to the DSO and transmission level service to the ISO. NEM & Non-NEM.

Informal Panel Discussion Retail and Wholesale Measurement, Metering and Settlement for Storage Behind the Meter Current Rules and Practices

Panel 1: Current Processes & Configuration Metering, Measurement and Settlement for Behind-The-Meter (BTM) Storage Panel 1: Current Processes & Configuration MUA Workshop – March 5, 2018

Focus on CAISO’s DR Provider Agreement for BTM Storage Wholesale Participation

Current Metering Rules for BTM Storage Participating in DR Retail (CPUC’s jurisdiction) Wholesale DRP-A (CAISO’s jurisdiction) CPUC’s rules to be associated with CAISO’s MGO configuration need to be developed (cf. next panel discussion) CAISO introduced other direct metering / sub-metering configurations for BTM storage with the Metering Generator Output (MGO) models in ESDER phase 1. Both CPUC and CAISO allow metering at the whole premise level with one unique retail revenue meter. -

(CPUC’s jurisdiction) (CAISO’s jurisdiction) Current Measurement / Baseline Rules for BTM Storage Participating in DR Retail (CPUC’s jurisdiction) Wholesale DRP-A (CAISO’s jurisdiction) CPUC-approved alternative retail energy baselines to the 10-in-10 need to be developed (cf. next panel discussion) CPUC retail capacity measurement are approved per DR tariffs and contracts CAISO ESDER phase 2 proposed alternative wholesale energy baselines to the 10-in-10 (FERC’s approval pending) No wholesale capacity measurement Both CPUC and CAISO allow a retail & wholesale energy baseline based on a “10-in-10” methodology.

Current Settlement Rules for BTM Storage Participating in DR Retail (CPUC’s jurisdiction) Wholesale DRP-A (CAISO’s jurisdiction) Settlement with DRP-A is strictly on the dispatched load reduction. The charging and discharging of the BTM battery enrolled in DR remains governed by the customer’s retail rate: DRP-A allows the LSE function to remain intact and eliminates the risk of wholesale / retail bleeding.

R.15-03-011: Storage MUA working group Jill Powers Infrastructure and Regulatory Policy manager 3/5/2018

Topics What is EDAS? ISOME vs SCME Distributed energy resource SCME process and the SQMD plan Sub-metering and the Meter Generator Output performance methodology requirements

What is EDAS? Revenue Metering via: Direct Telemetry via: Energy Data Acquisition Systems Team (EDAS) is responsible for engineering requirements and standards for: Revenue Metering via: Approved CAISO Meters CAISO Inspected and Certified Direct Telemetry via: DNP devices using SSL or Dispersive Technology™ RTUs, PLC’s, Control Systems SSL Terminators e.g. Load balancers Resource Interconnection Fair on March 6, 2018 at its headquarters in Folsom, California.  This event is open to the public

ISO Metered Entity (ISOME) Vs SC Metered Entity (SCME) ISOME: The CAISO directly polls the meters, and the ISO performs the validation, estimation and editing to produce Settlement Quality Metered Data (SQMD). SCME: The Scheduling Coordinator polls the meters, performs the validation, estimation and editing and submits the resulting SQMD to the CAISO. Applies to all demand response and distributed energy resource aggregations

Metering Rules Enhancement (April 2017) Expanded the SCME option to Participating Generators Qualifying Facility Metered Subsystem Utility Distribution Company Tie Point meters EIM entities. Enabled market participants to forego certain costs associated with ISOME Installing ISO Approved meters is not required ISO Metering Inspection services are not required

SCME requirements applicable to distributed energy resource aggregations (DERA) SQMD plan template captures meter devices and configuration with single line drawing data collection process SQMD development process (calculation) Must meet any local regulatory authority (LRA) requirements Follows ISO new resource implementation (NRI) process Modifications to approved SQMD plan require re-submittal Includes additions to a DERA

BPM for Metering includes attachment G: technical metering specifications for DER Devices (if no LRA standards exist) The standards referred to in this section apply when the relevant Local Regulatory Authority (LRA) has not set any standards. General standards revenue quality with 0.2 accuracy class factory calibration test equipment accuracy test safety BPM for Metering http://bpmcm.caiso.com/Pages/BPMDetails.aspx?BPM=Metering

Additional information for SQMD Plan submission SQMD Template http://www.caiso.com/Documents/SQMDPlanTemplate.docx SQMD Template Tutorial http://www.caiso.com/Documents/SQMDResourceTemplateTutorial.pdf Operating Procedure 5750 – Submission and Approval Process http://www.caiso.com/Documents/5750.pdf

For demand response resources, the SQMD plan is met through the registration process Approval required for use of Meter Generator Output options – ensures SCME sub-metering requirements are met

Sub-metering configuration enables use of a MGO performance evaluation method for PDR/RDRR Demand response at the location can be separated into a pure load (facility) response and a behind-the-meter generation device’s response. Measurement of the load’s response would employ a standard ISO Type 1 baseline using N minus G as a derived “virtual” meter quantity. Measurement of the load offset by the generation device would use the MGO method using physical meter G.

Three options are supported with a sub-meter configuration Option 1 – load reduction only Load baseline is established using a derived meter value (N-G) Option 2 – generation offset only Performance is attributed to response of generation device (G) Option 3 – load reduction and generation offset Response of the load and generation device can be measured separately and combined

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Informal Panel Discussion Retail and Wholesale Measurement, Metering and Settlement for Storage Behind the Meter Recommendations for Modifications to Current Processes

Panel 2: Open Issues & Challenges Metering, Measurement and Settlement for Behind-The-Meter (BTM) Storage Panel 2: Open Issues & Challenges MUA Workshop – March 5, 2018

Proposed Approach Identify all/ most open issues on Metering, Measurement and Settlement for BTM storage participating in wholesale market via DRP-A   PG&E has started to identify here some challenges List can be developed further in the afternoon session, with the goal to build consensus on the open issues that need to be addressed Establish where the resolution of the identified open issues should be tackled. Coordination may be required between MUA & other proceedings PG&E has made here an initial straw proposal  Straw proposal can be amended further in the afternoon session, with the goal to build consensus on where to resolve open issues

Metering Open Issues (1/2) CAISO MGO Model A is “essentially identical to today’s PDR / RDRR configuration” and does not sub-meter the BTM storage. CAISO MGO Model B has 3 distinct configurations (B1) where the load reduction only is participating and sub-metered (B2) where the BTM storage only is participating and sub-metered, and (B3) where both load and BTM storage are participating and sub-metered CAISO MGO Model C severs the tie between the storage and the rest of the load on the customer premise, which essentially results into making the previously BTM storage into an IFM storage. The IFM storage then participates as NGR or participating generator.

Metering Open Issues (2/2) Development of CPUC’s rules to be associated with CAISO’s MGO configuration Model B Open Issue Proposed Forum(s) for Resolution Requirements for the sub-meter equipment Rules and responsibilities for the sub-meter equipment Sub-meter data accuracy requirements Certification of the sub-meter Demand Response Proceeding? General Rate Case? Requirements for the sub-metered data Rules and responsibilities for for data collection, vetting / VEE to applicable standards, storage Coordination, management and processing of sub-metered data General Rate Case? Primary retail meter and Sub-meter interactions Reconciliation of meter data management between the sub-meter and the whole meter premise for billing and settlement purposes Enhancements to Utility’s systems Enhancements to billing and other utility systems to provide a new Service Agreement / UUID to tag each BTM storage (and possibly other BTM devices in the future) so that it can be enrolled in CAISO’s DRRS. General Rate Case? Electric Rule 24? Cost Recovery Identification of all related costs to the item listed above Determination of who will bear the costs of direct metering initial implementation Determination of who will bear the costs of direct metering Operations & Maintenance

Measurement Open Issues Development of CPUC’s rules associated with measurement Open Issue Proposed Forum(s) for Resolution FERC’s approval of CAISO’s alternative baseline methods (ESDER2) for energy settlements CPUC’s approval of new wholesale energy baseline to be used for retail settlements Requires FERC approval CPUC DR proceeding Should capacity measurement be different or de-coupled from energy baseline methodology CPUC DR Proceeding

Suggestion for Afternoon Session Brainstorm additional items that require attention and add to the list of open Identify formal forums for resolution

Develop List of Issues and Venues

Use Cases BTM storage providing customer level services to the customer BTM as well as providing a load drop to the market, and providing RA to an IOU, as well as distribution level services to a DSO. NEM & Non-NEM. DERP & PDR. BTM storage providing customer level services to the customer BTM as well as selling directly into the market, providing RA to an IOU, as well as distribution level services to a DSO. NEM & Non-NEM. DERP & NGR. BTM storage providing customer level services to the customer BTM as well as providing a load drop to the market, providing RA to an IOU, as well as transmission level services to the ISO. NEM & Non-NEM. DERP & PDR. BTM storage providing customer level services to the customer BTM as well as selling directly to the market, providing RA to an IOU, as well as transmission level services to the ISO. NEM & Non-NEM. DERP & PDR. BTM storage providing customer level services to the customer BTM as well as distribution level service to the DSO and transmission level service to the ISO. NEM & Non-NEM.

Venues and Issues Venue CPUC-approved contracts CPUC-approved tariffs or program rules CPUC rules & decisions IOU/DSO practices CAISO BPM CAISO Tariff ISO practices Statute

Report Writing Process Format: Report template distributed Friday, March 2nd. Section Draft: Designate 1-2 volunteers to lead drafting report section on issues discussed at this meeting, with input from WG. First draft produced by April 5th meeting; Discuss progress at that meeting, time permitting. Distribute draft to Service List for R.15-03-011 for comments.

Thank You! Rachel McMahon rachel.mcmahon@cpuc.ca.gov 415-703-1606 www.cpuc.ca.gov

D.18-01-003 – Remaining Issues Compensation for CPUC jurisdictional services (narrowed to incrementality by OP 4); Appropriate metering, measurement, and accounting for Multiple-Use Applications beginning with time-differentiated Multiple-Use Application first, then capacity-differentiated and, finally, simultaneous Multiple-Use Application. (WG expected to include BTM storage systems participating in NGR in this discussion.) CPUC-jurisdictional enforcement of Multiple-Use Application rules, beyond that which is stated in this proposal. Such enforcement includes, but is not limited to, contract provisions; Incrementality – any refinements to the preliminary rule set forth in this proposal; Any modifications to CPUC-jurisdictional rules or tariffs in order to actualize the rules and principles set forth in this proposal; Enabling a subset of a distributed energy resource aggregation to provide distribution-level services; and Any other issues within the CPUC’s jurisdiction that the working group identifies.