Locational Net Benefit Analysis Working Group December 13, 2016 Webinar drpwg.org

ICA and LNBA Working Group Background ICA and LNBA WG Purpose - Pursuant to the May 2, 2016, Assigned Commissioner’s Ruling (ACR) in DRP proceeding (R.14-08-013), the Joint Utilities are required to convene the ICA and LNBA WG to: Refine ICA and LNBA Methodologies and Requirements Authorize Demonstration Project A and Project B CPUC Energy Division role Oversight to ensure balance and achievement of State objective (ensure adequate stakeholder representation in consensus statements, keeping WG activities on track with Commission expectations/needs, demonstration project results review, quality control on deliverables) Coordination with both related CPUC activities and activities in other agencies (IDER CSF WG, CEC and CAISO interagency matters, interconnection/Rule 21/SIWG, other proceedings that may impact or be impacted by locational value calculation such as AB 350/IRP and LTPP/TPP/RPS) Steward WG agreements into CPUC decisions when necessary More Than Smart role Engaged by Joint Utilities to facilitate both the ICA & LBNA working groups. This leverages the previous work of MTS facilitating stakeholder discussions on ICA and LBNA topics.

Update on Timelines Date Short Term Long Term Dec. 16 IOU Final Demo B report due* Jan. 6 In-person meeting Determine schedule for discussions up to Q2 2017 Depending on WG availability, begin LT refinement discussions Jan. 11 First draft circulated Jan. 17 First round of edits due Jan. 18-19 Second draft circulated Jan. 20 Webinar Jan. 27 Second and final round of edits due Jan. 31 Report submitted

Review of IOU Demo Project Report and Developing WG ST Final Report Purpose: The final Demo reports are due Dec. 31, 2016 (and may be available as early as Dec. 16). The next WG meetings are scheduled for Jan. 6 and Jan. 20. Given the limited time for WG members to review IOU final Demo reports, it is suggested that the LNBA WG pre-assign volunteer lead(s) for report sections. The volunteer(s) would be responsible as the lead author of the final WG report for WG recommendations on that particular section, receive input and comments from other WG members, and lead discussions on that topic for the two WG meetings in January. MTS will continue to coordinate and facilitate WG input into the final report.

Review of IOU Demo Project Report and Developing WG ST Final Report 1. Demo B Background and Objectives 7. Project Deferral Benefit Calculation 1.1 Definition of LNBA Components for Demo B LNBA Tool Deferral Benefit Calculation 1.2 Definition of Net in Demo B Inputs and Outputs 1.3 LNBA Tool Overview Transmission Benefits 1.4 Heat Map Overview Other LNBA Components Calculation 1.5 CPUC Requirements and Deliverables Sources 2. Electric Services User Inputs in ‘DER Dashboard’ Tab of LNBA Tool 2.1 Services that DERs Can Provide in Demo B LNBA Tool Avoided Energy 2.2 Services that DERs May be able to Provide in the Future Conservation Voltage Reduction LNBA Tool Avoided Generation Capacity 2.3 Services that DERs Cannot Provide LNBA Tool Avoided GHG, RPS, and Ancillary Services 3. Selected Planning Areas 3.1 Planning Inputs: Load LNBA Renewable Integration Cost 3.2 Planning Inputs: DER Forecasts Societal and Public Safety 4. Description of Deferrable Upgrade Projects by Planning Area Lessons Learned, Refinements, and Uncertainties Appendix 1: Heat Map 5. Description of Operations and Maintenance Work by Planning Area Appendix 2: E3 LNBA Tool Documentation Appendix 3: ACR to Final Documents Table 6. Description of Reliability Work by Planning Area