1. MTS Working Group October 8, 2015

2. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work of CA MTS Working Group - today 2.Push to help other state distribution grid efforts around country 3.Communications & Outreach push for other states to utilize MTS work Areas of Focus Operationalizing distribution grid planning work Funding to be a mix of foundation, membership and state/federal grants Two main MTS forums –MTS Working Group & Regular open webinars Subgroups for quick turn-around as required Subteams 1)Alignment 2)DPP and Data 3)Portfolio Design

3. 3 MTS Working Group Purpose Provide an open, voluntary stakeholder forum to educate and discuss core issues toward identifying potential common ground regarding the evolution of California’s distribution system and the seamless integration of DER to meet customers’ needs and public policy. The discussions will be for the benefit of the participants and may be made public without specific participant attribution

4. 4 More Than Smart Tony Brunello, More Than Smart tbrunello@morethansmart.org tbrunello@morethansmart.org Paul De Martini, MTS/ICF International paul.demartini@icfi.com paul.demartini@icfi.com Laura Manz, MTS/ICF International laura.manz@icfi.com laura.manz@icfi.com Michael Murray, MTS/Mission:Data mmurray@morethansmart.org mmurray@morethansmart.org Deborah Shields, MTS dshields@morethansmart.org dshields@morethansmart.org Annie Howley, MTS ahowley@morethansmart.org ahowley@morethansmart.org MTS meetings, webinars and information exchange are designed solely to provide a forum or means for the expression of various points of view in compliance with antitrust laws. Under no circumstances shall MTS activities be used as a means for competing companies to reach any understanding, expressed or implied, which tends to restrict competition, or in any way, to impair the ability of participating members to exercise independent business judgment regarding matters affecting competition or regulatory positions. Proprietary information shall not be disclosed by any participant during any MTS meeting or its subgroups. In addition, no information of a secret or proprietary nature shall be made available to MTS or its membership. All proprietary information which may nonetheless be publicly disclosed by any participant during any MTS meeting or its subgroups shall be deemed to have been disclosed on a non-confidential basis, without any restrictions on use by anyone, except that no valid copyright or patent right shall be deemed to have been waived by such disclosure

5. 5 Agenda 9:00-9:15 am 9:15–10:15am Introductions Presentations (5-15 minutes each) and group discussion on Subteam Progress to date 1)Lorenzo 2)Ryan 3)Heather 10:15-10:30 am 10:30-11:30 am Break Facilitated discussion to refine scope and definition to assure full coverage and no overlap 11:30 - noon Noon – 2:00 pm 2:00-3:00 pm High level review of CAISO TPP - Lorenzo Working lunch in subteam breakouts Report out and next steps

6. 6 Context: Evolution of DRP Walk Jog Run No. of Benefit Categories & Sophistication of Analysis 2015-1H 20162H 2016-2019 2020+ Visibility & Initial DPA Locational Benefits System-wide DRP including LTPP & TPP locational benefits System-wide DRPs incl. Locational Societal Benefits Discussion framework from Phase 1

7. 7 Subteam Presentations by: Lorezno Kristov, CAISO Ryan Hanley, SolarCity Heather Sanders, SCE

8. 8 Facilitated Discussion of Scope Boundaries

9. 9 Overview of Transmission Planning Process L. Kristov, CAISO

10. 10 There are two aspects to the DRP process alignment 1. Optimally align new DRP cycle with the existing structure of IEPR- LTPP-TPP State agencies & legislature are concerned that all procurement & planning processes utilize consistent & up-to-date assumptions IEPR-LTPP-TPP alignment created in 2013-14 achieves this for those processes DRPs & DER adoption projections & impacts will be key elements of assumptions & scenarios for procurement & planning Many DER types reflected in DRPs are load modifiers that need to go into the IEPR demand forecast A needed next step is to map the content & timing of important inputs & outputs between DRPs & the other processes Page 10

11. 11 Second aspect – 2. Distribution investment proposed in DRPs must be input to utility GRCs Required by PU Code Sec 769 Three IOU GRC cycles are three years long & staggered IOUs perform annual internal distribution planning processes to plan each year’s infrastructure build-out, based on their own latest GRC approved funding What is relationship between existing annual planning process and new DRP cycle? How to define the future DRP cycle to address both aspects of the problem? Page 11

12. 12 Process suggestions Inter-agency group to address first aspect Existing inter-agency process alignment group (CPUC-CEC-ISO) describes & maps most important inputs & outputs Engage broad group of CPUC staff working on various CPUC procurement proceedings (LTPP, RPS, EE, DR, Storage, RA) Present inter-agency work to IOUs for comment & revisions MTS Subgroup to address second aspect Develop initial framework Full MTS working group Reviews draft framework presented by subgroups for feedback Page 12

13. 13 Breakout Session Subteam 1 Subteam 2 Subteam 3

14. 14 Subteam 1 Page 14 Report Out

15. 15 Subteam 2 Page 15 Report Out

16. 16 Subteam 3 Page 16 Report Out

17. 17 WG Deliverables – Process Check Recommendations on an integrated Distribution Planning Process for system-wide implementation by _______. Recommendations to enhance planning scenarios regarding granularity and DER forecasting Recommendations on data sharing and related mechanisms Recommendations on IDPP to CA state-wide planning processes alignment Development of a framework for the intersection of planning and DSR/DER sourcing Development of a framework for “DER alternatives” evaluation and related “merit order ” Page 17

18. 18 Process check Page 18 Integrated Distribution Planning Process (DPP)

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