California’s SB 1339 (2018) requires the CPUC to develop regulations, standards, and guidelines by December 1, 2020, to facilitate the commercialization of microgrids for customers of large electric utilities. To that end, SB 1339 directs the CPUC to address the following key issues: (1) how microgrids operate and their value; (2) improving the electrical grid with microgrids; (3) how microgrids can play a role in implementing policy goals; (4) how microgrids can support California’s policies to integrate a high concentration of distributed energy resources on the electrical grid; (5) how microgrids operate in the current California regulatory framework; and (6) microgrid technical challenges.
The responsive CPUC proceeding is docketed at R1909009. On June 11, 2020, the ALJ issued Decision D2006017 adopting short-term actions to accelerate microgrid deployment and related resiliency solutions. This decision requires investor-owned utilities to develop and implement standardized system designs for interconnection and increase simplicity and transparency of this process; modernizes tariffs to maximize social resiliency benefits including requiring large investor-owned utilities to modify their net energy metering tariffs to allow storage devices to charge from the grid during the pre-public safety power shut off window, and to remove storage sizing limits; and approves an array of resilience proposals set forth by Pacific Gas and Electric Company and San Diego Gas & Electric Company.