transmission investments, only to Ultimately, the discover the transmission Commission adopted this investments were needed…Both concept after SB 338 was types of errors have associated costs signed into law that and these errors should be required the Commission minimized to the extent possible.” to consider the role of existing clean resources UCAN Comments on TPP Scenario and their attributes when & Assumptions, p. 3, 4, 6 helping to ensure that February 3, 2017 each LSE meet energy also note that during the course and reliability demands. “We of this proceeding, SB 338 (2017, Skinner) was signed into law, which added a requirement to Section 454.52 that the commission consider the role of existing renewable generation, grid operational efficiencies, energy storage, and DERs, including energy efficiency, in helping to ensure that each LSE meets energy needs and reliability needs in hours to encompass the hour of peak demand for electricity, while reducing the need for new electricity generation resources and new transmission resources in achieving the energy goals at state’s least cost to ratepayers. This requirement is implicit in the analysis conducted using the added) RESOLVE model…(emphasis D.18-02-018, p. 35 4. Shadow Prices: As a constrained optimization Noted “In noted above, much of the problem such as the resource work in this IRP planning process, many constraints, proceeding was done however justified, can adversely informally throughout impact the cost minimization 2016 and the first half of objective. The effectiveness of these 2017. UCAN robustly constraints in terms of their impact participated in these on cost minimization is estimated informal discussions by using Shadow “shadow prices.” listening to webinars, prices are the incremental change in attending workshops, and the minimum cost objective providing comments associated with an incremental when appropriate. A key change in the policy
Ultimately, the Commission adopted this concept after SB 338 was signed into law that required the Commission to consider the role of existing clean resources and their attributes when helping to ensure that each LSE meet energy and reliability demands. transmission investments, only to discover the transmission investments were needed…Both types of errors have associated costs and these errors should be minimized to the extent possible.” UCAN Comments on TPP Scenario & Assumptions, p. 3, 4, 6 February 3, 2017 “We also note that during the course of this proceeding, SB 338 (2017, Skinner) was signed into law, which added a requirement to Section 454.52 that the commission consider the role of existing renewable generation, grid operational efficiencies, energy storage, and DERs, including energy efficiency, in helping to ensure that each LSE meets energy needs and reliability needs in hours to encompass the hour of peak demand for electricity, while reducing the need for new electricity generation resources and new transmission resources in achieving the state’s energy goals at least cost to ratepayers. This requirement is implicit in the analysis conducted using the RESOLVE model…(emphasis added) D.18-02-018, p. 35 4. Shadow Prices: As noted above, much of the work in this IRP proceeding was done informally throughout 2016 and the first half of 2017. UCAN robustly participated in these informal discussions by listening to webinars, attending workshops, and providing comments when appropriate. A key “In a constrained optimization problem such as the resource planning process, many constraints, however justified, can adversely impact the cost minimization objective. The effectiveness of these constraints in terms of their impact on cost minimization is estimated using “shadow prices.” Shadow prices are the incremental change in the minimum cost objective associated with an incremental change in the policy Noted
237651177.docx