Incorporating system level or reliability benefits that support the grid as a whole, and do not uniquely accrue to bundled customers, into the PCIA methodology, would result in double counting of this benefit. Storage assets may be able to generate additional value in the near future as greater clarity and guidance on market rules are developed. Including the charging for energy storage in the Indifference Amount may result in double counting of this cost if the charging power costs have already been reflected in the utility portfolio. PG&E’s agreements include a term that the Seller has no stake in (i.e., cost recovery), but which results in PG&E’s ability to terminate the agreement based solely on Commission adoption of an alternative cost recovery methodology. PG&E and SCE have addressed potential safety concerns in a proactive and responsible manner and there are no obvious safety concerns that remain to be addressed. Green Power Institute, Golden Hills Energy Storage, LLC, Energy Nuevo Storage Farm, LLC did not actively participate in these proceedings. Conclusions of Law SCE’s proposed Energy Storage Agreements should be approved. PG&E’s proposed Energy Storage Agreements should be approved. PG&E’s proposed purchase and sale agreements should not be approved. Because we do not approve the PG&E purchase and sale agreements, the issue whether a CEQA review is required for PG&E’s purchase and sale agreements need not be decided.
Incorporating system level or reliability benefits that support the grid as a whole, and do not uniquely accrue to bundled customers, into the PCIA methodology, would result in double counting of this benefit. Storage assets may be able to generate additional value in the near future as greater clarity and guidance on market rules are developed. Including the charging for energy storage in the Indifference Amount may result in double counting of this cost if the charging power costs have already been reflected in the utility portfolio. PG&E’s agreements include a term that the Seller has no stake in (i.e., cost recovery), but which results in PG&E’s ability to terminate the agreement based solely on Commission adoption of an alternative cost recovery methodology. PG&E and SCE have addressed potential safety concerns in a proactive and responsible manner and there are no obvious safety concerns that remain to be addressed. Green Power Institute, Golden Hills Energy Storage, LLC, Energy Nuevo Storage Farm, LLC did not actively participate in these proceedings. Conclusions of Law SCE’s proposed Energy Storage Agreements should be approved. PG&E’s proposed Energy Storage Agreements should be approved. PG&E’s proposed purchase and sale agreements should not be approved. Because we do not approve the PG&E purchase and sale agreements, the issue whether a CEQA review is required for PG&E’s purchase and sale agreements need not be decided.
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