Minnesota’s Actions and Developments in Distribution System Planning

Tricia DeBleeckere – Planning Director

mn.gov/commerce5/27/2020 1

Overview

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• Commission-led Investigation – Workshops, Reports, Questionnaire

• Opened Individual Investigation Dockets for each of the four-rate regulated utilities

• Distribution Planning Filing Requirements Established by Order

• Integrated Distribution Plans filed in 2018 and 2019

• Evaluation and Improvement of Plans

Distribution Planning in Minnesota | https://mn.gov/commerce

Workshops and Reports

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Questionnaire

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A. How do Minnesota utilities currently plan their

distribution systems?

Establish a baseline understanding of our utility planning processes

B. What does each utilities current year plan look like

and assume?

Understand the current state of plans

C. Are there ways to improve or augment the utilities’ planning

processes?

Provide stakeholders an opportunity to identify potential improvements in

planning processes

Scenario PlanningHosting Capacity

InvestmentsDistributed Resources

Technological Changes

Load Forecasts Risk Analysis

MitigationBudgeting

?

Distribution Planning in Minnesota | https://mn.gov/commerce

State of the State

Goals for Integrated Distribution Planning Process

Minnesota-based Integrated Distribution Plan ‘wants’:• foundational understanding of utility’s long-term distribution plans; • context for individual utility investment requests; • proactive consideration of potential futures and non-traditional

methods of planning;• system reliability, efficient uses of resources, and maximized customer

benefits; and, • public policy goals achievement.

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Distribution System Planning Questionnaire - Takeaways

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Utility Similarities: • Annual distribution system capital budgets; • Metrics for planning;• Low load growth and DER penetration; • Varied system visibility even within distribution systems;• Limited distribution engineering staff; • Limited connection between DSP and IRP/Transmission Planning; and,• DER treatment in forecasts (short term energy vs. long term capacity).

Distribution Planning in Minnesota | https://mn.gov/commerce

Distribution System Planning Questionnaire - Takeaways

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Utility Differences: • Various stages of grid modernization; • Degrees of implemented technology and how used; • Levels of DER-interconnection requests and DER-penetration levels;• Distribution system spend by year (factor of 10);• Geographic region and density;• Occurrences of (and need for) special distribution projects or studies; and,• Age of existing infrastructure.

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Process for Setting Distribution Plan Requirements

Staff Straw Proposals

Commission Review and Approval for

ReleaseComment Period

Commission Decision

April 2018 August 2018

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Planning Objectives

The Commission is facilitating comprehensive, coordinated, transparent, integrated distribution plans to:

• Maintain and enhance the safety, security, reliability, and resilience of the electricity grid, at fair and reasonable costs, consistent with the state’s energy policies;

• Enable greater customer engagement, empowerment, and options for energy services;

• Move toward the creation of efficient, cost-effective, accessible grid platforms for new products, new services, and opportunities for adoption of new distributed technologies; and,

• Ensure optimized utilization of electricity grid assets and resources to minimize total system costs.

• Provide the Commission with the information necessary to understand Xcel’s short-term and long-term distribution system plans, the costs and benefits of specific investments, and a comprehensive analysis of ratepayer cost and value. (Source: IDP Filing Requirements as adopted in 2018)

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Defining DER

Distributed Energy Resources (DER) is defined as “supply and demand side resources that can be used throughout an electric distribution system to meet energy and reliability needs of customers; can be installed on either the customer or utility side of the electric meter.” This definition for this filing may include, but is not limited to: distributed generation, energy storage, electric vehicles, demand side management, and energy efficiency.

(Source: IDP Filing Requirements as adopted in 2018. Based on See Minnesota Staff Grid Modernization Report, March 2016 and ICF Report, Integrated Distribution Planning, August 2016, prepared for Minnesota Public Utilities Commission, Docket No. E999/CI-15-556)

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Integrated Distribution Plan Requirements

1. Administrative Requirements (Timing)

2. Stakeholder Process

3. Filing Requirements

A. Baseline Data

B. Hosting Capacity and Interconnection

C. DER Forecasting

D. Long-Term Distribution Investment Plan

E. Non-Wires Alternatives Analysis

Each Draft-IDP is tailored and specific to each utility and expected to diverge further over time.

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Filling Requirements - Flexibility

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Integrated Distribution Plan Requirements Baseline Data

Baseline Data

System, Financial, DER

Integrated Distribution Plan RequirementsHosting Capacity & Interconnection

Hosting Capacity and Interconnection

Integrated Distribution Plan RequirementsDER Scenario Analysis

DER Scenario Analysis

Integrated Distribution Plan RequirementsGrid Modernization

Long-Term Distribution System Modernization and Infrastructure Plan

Integrated Distribution Plan RequirementsNon-Wires Alternatives

Non-Wires Alternatives Analysis

Integrated Distribution Planning

What we will learn….

What is possible and reasonable?

What progress and investments are worthwhile, in what order? Speed vs. Value

What information will be required to substantiate or support investments?

Where are areas we should push our utilities?

What is needed to advance the distribution system in the public interest?

Distribution Planning in Minnesota | https://mn.gov/commerce

1st Integrated Distribution Plans

Utility Dockets

Xcel Energy 18-251 (2018 IDP); 19-666 (2019 IDP & Advanced Grid Certification Requests)

Minnesota Power 19-684 (2019 IDP)

Dakota Electric Assn. 19-674 (2019 IDP)

Otter Tail Power 19-693 (2019 IDP)

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Integrated Distribution Plan RequirementsWhat Lies Ahead?

How will integrated distribution system planning evolve?

Distribution Planning in Minnesota | https://mn.gov/commerce

Questions?

Tricia DeBleeckere

Tricia.DeBleeckere@state.mn.us

Distribution Planning in Minnesota 21