Little Hoover
Commission
Little Hoover Commission
as an advocate and advisor of change
Bipartisan Independent Review of executive branch Four to five policy reviews a year 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 HearingsPublic MeetingsExpert InterviewsDocument 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
Pacific Gas & Electric
San Diego Gas & Electric
Southern California Edison
0% 5% 10% 15% 20% 25% 30% 35%
20.10%
20.80%
21.10%
Progress Toward Meeting RPS Target Goals 2011
Percent of retail sales from renewable sources
Sources: California Public Utilities Commission. “Renewable Portfolio Standard Quarterly Report: 1st and 2nd Quarter 2012.”
RPS Progress
Nuclear
Natural gas
Large hydro
Coal
Renewables
0% 5% 10% 15% 20% 25% 30% 35% 40%
10%
29%
19%
38%
4%
7%
34%
12%
31%
18.8%
Electricity Mix for California's 10 Largest Municipal Utilities
2010
2003
Source: Union of Concerned Scientists. July 2012. “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 RPS (versions 1, 2, & 3)
Layers of Policy RPS (versions 1, 2, & 3) AB 32 (GHG reduction)
Layers of Policy RPS (versions 1, 2, & 3) AB 32 (GHG reduction) Once-Through Cooling
Layers of Policy RPS (versions 1, 2, & 3) AB 32 (GHG reduction) Once-Through Cooling Distributed Generation
Layers of Policy RPS (versions I, II, & III) AB 32 (GHG reduction) Once-Through Cooling Distributed Generation Delta Flow Criteria
Unintended Consequences of Legislative
Trade-Offs
IntermittencyHourly Breakdown of Renewable Resources
12 a.m.2 a.m
.4 a.m
.6 a.m
.8 a.m
.
10 a.m.
12 p.m.2 p.m
.4 p.m
.6 p.m
.8 p.m
.
10 p.m.
0
500
1000
1500
2000
2500
3000
3500
WindSmall HydroBiogasBiosmassGeothermala
Time of Day
Meg
awatt
s
Source: California Independent System
Operator
Electricity Demand
Source: California Independent System
Operator 1 a
.m.
2 a
.m.
3 a
.m.
4 a
.m.
5 a
.m.
6 a
.m.
7 a
.m.
8 a
.m.
9 a
.m.
10 a
.m.
11 a
.m.
12 p
.m.
1 p
.m.
2 p
.m.
3 p
.m.
4 p
.m.
5 p
.m.
6 p
.m.
7 p
.m.
8 p
.m.
9 p
.m.
10 p
.m.
11 p
.m.
12 a
.m.
20000
21000
22000
23000
24000
25000
26000
27000
28000
29000
30000
31000
32000
33000
34000
35000
36000
37000
38000
39000
40000
22200
37400
Hourly Electricity Demand Forecast in California
Time of Day
Megaw
att
s
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 CommissionNext Steps
“Democracy itself is a process of change and
satisfaction and complacency are enemies of good
government.”
Little Hoover Commission
www.lhc.ca.gov
Carole D’Elia, Deputy Executive
Director
916-445-2124carole.d’[email protected]
a.gov