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

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3500

WindSmall HydroBiogasBiosmassGeothermala

Time of Day

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awatt

s

Source: California Independent System

Operator

Electricity Demand

Source: California Independent System

Operator 1 a

.m.

2 a

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21000

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35000

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22200

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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’elia@lhc.c

a.gov