Little Hoover Commission

Little Hoover Commission as an advocate and advisor of change q Bipartisan q Independent q Review of executive branch q Four to five policy reviews a year q Advise the Governor and Legislature regarding reorganization plans

Rewiring California: Integrating Agendas for Energy Reform

Can We Achieve the 33% Renewable Portfolio Standard by 2020 with the Existing Governance Structure? Starting Question

Public Hearings Public Meetings Expert Interviews Document Review Methodology

”The need for leadership on energy is essential and cannot be ignored.” LHC: June 2005 Governance

Organizations Coordinating Electricity in California

”Nobody would start off by designing it that way. We’re the leader in renewable energy despite the fact that it’s hard to explain what we do.” CPUC: November 2011 Governance

Despite the dysfunctional structure, California utilities are on track to achieve the RPS goal. Public Hearings: Fall 2011 Governance

“Planning is About 100% Better Than it Was Seven Years Ago.” CPUC: November 2011 Governance

RPS Progress Sources: California Public Utilities Commission. “Renewable Portfolio Standard Quarterly Report: 1 st and 2 nd Quarter 2012.”

RPS Progress Source: Union of Concerned Scientists. July “The Clean Energy Race: How Do California’s Public Utilities Measure Up?”

How Much Green Will it Take to Go Green?

Will the Lights Stay On?

Are We Achieving Our Stated Economic and Environmental Policy Goals?

Layers of Policy q RPS (versions 1, 2, & 3)

Layers of Policy q RPS (versions 1, 2, & 3) q AB 32 (GHG reduction)

Layers of Policy q RPS (versions 1, 2, & 3) q AB 32 (GHG reduction) q Once-Through Cooling

Layers of Policy q RPS (versions 1, 2, & 3) q AB 32 (GHG reduction) q Once-Through Cooling q Distributed Generation

Layers of Policy q RPS (versions I, II, & III) q AB 32 (GHG reduction) q Once-Through Cooling q Distributed Generation q Delta Flow Criteria

Unintended Consequences of Legislative Trade-Offs

Intermittency Hourly Breakdown of Renewable Resources Source: California Independent System Operator

Electricity Demand Source: California Independent System Operator

How Much, in the Aggregate Will Recent Major Policies Related to Energy Affect Electricity Reliability and Rates?

“I Want to Go Beyond 33 Percent, but We Will Not Be Able to Do That If We Break the Bank Beforehand.” CPUC Commissioner Michel Florio

Demand Response: Smart Consumers behind Smart Meters

Unexpected Complication

Active Agenda, No Plan

“Today’s Policy Approach Results in Separate GHG, Energy Efficiency & RPS Policies, When Savings May Be Realized if These Policies Were Part of an Integrated Whole.” CMUA 2011

“This Results in Higher Costs for Consumers.” CMUA 2011

California Cannot Afford Another Energy Policy Failure!

“If We Fail, We Will Impair Renewables Across the Country for Some Time.” Bob Foster, Mayor of Long Beach 2012

Little Hoover Commission Recommendations

The Governor, Should Direct the Appropriate Executive Branch Organizations to Determine:

How Much in the Aggregate Will Recent Major Policies Related to Energy Affect Electricity Reliability and Rates, and Are These Policies Achieving the Goals?

The Governor, through a Public Process, Should Establish a Comprehensive Plan to Prioritize Current & Future Energy Goals

Until there is an Overarching Plan: Curb Your Enthusiasm

The Governor & Legislature Should Develop a Plan to Modernize Energy Governance

Little Hoover Commission Next Steps

“Democracy itself is a process of change and satisfaction and complacency are enemies of good government.”

Little Hoover Commission Carole D’Elia, Deputy Executive Director