1. Locational Net Benefit Analysis Working Group
January 11, 2017
Webinar
1pm-3pm
drpwg.org

2. Purpose
To continue discussion on the use of LNBA within the context of the planning use case, and provide a demonstration of the LNBA tool

3. 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 ), 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.

4. Updated LNBA timeline Wednesday, 1/11: LNBA webinar (1pm-3pm)
Friday, 1/13: First round of comments, questions, and recommendations due
Thursday, 1/19: First draft of LNBA report circulated
Friday, 1/20: Joint ICA/LNBA meeting to review and form recommendations
At meeting: decide whether to request report extension past 1/31
If no extension, tentative schedule:
Tuesday, 1/24: Second draft of LNBA report circulated
Friday, 1/27: Final round of comments due
Monday, 1/30: Report finalized
Tuesday, 1/31: Report submitted

5. DRP LNBA Demonstration (Demo B) Q&A on Applications in Distribution Planning and Tool Demonstration January 11, 2017

6. Agenda Distribution Planning and LNBA/Demo B
Review LNBA Use Case Discussion
Overview of IOUs’ Proposed Distribution Infrastructure Deferral Framework (DIDF) and Prioritization Process
Other Learnings from Demo B related to Distribution Planning
LNBA Tool Demonstration

7. LNBA Use Cases Refresher
Heat Map of Potential Optimal Locations
Public/Indicative
Generic OR DER Specific
No DER Costs Included
Visual heat map to inform DER providers and stakeholder of locations where DERs may be most valuable.
Prioritization for DER Deferral Opportunities
Confidential/Commercial
DER Costs May Be Included
Use LNBA to identify & prioritize locations for deploying DERs (results may be shared with DPAG non-market-participants)
Future?
Demo B
May not include all the same components and inputs as public LNBA
LNBA uses outputs of the distribution planning process, but is not part of that process.
July 26, 2016 LNBA WG Meeting

8. Proposed DIDF Process
Deferral Framework and IPE/DDAG Review
Planning Activities following application of Deferral Framework
Develop Assumptions and Scenarios
Distribution Planning Assessment
Evaluate Conventional Solutions and determine projects
Apply Deferral Criteria
Incorporate into Future Demand and DER Forecast
Non-deferrable Projects
Implement conventional solution
Planning
Prioriti-zation and selection of projects for RFO
Projects not selected: Reassess next planning cycle
Planning Activities
Potentially Deferrable Projects
Selected Projects: Develop contingency plan
Implement contingency plan (if necessary)
LNBA
Project list drives Public LNBA output
LNBA Activities
Selected Projects: Proceed to RFO
Develop requirements Launch RFO
Receive bids
Least-Cost/ Best Fit Valuation & Selection
Procurement
Select DER Portfolio to meet needs of potentially deferrable projects
Monitor Performance
RFO and IE/PRG
Cost Recovery Mechanism
Cost Recovery for Contingency planning
Cost Recovery for Selected Portfolio
Seek Cost Recovery
December 12, 2016 DRP Workshop

9. Prioritization Process
Process occurs following the identification of DER deferrable candidate projects
Process will determine which potentially deferrable projects should be sourced immediately via RFO, and which projects may be sourced in a future year
Process will consider both Timing of need, as well as Market/Economic Considerations
We envision a “Walk – Jog – Run approach” to sourcing for DER Deferrals (expand scope as knowledge increases)
Projects not selected for current RFO will be reassessed through next year’s planning cycle
Timing Considerations
Higher Priority: Timing of Need is soon (less than 5 years out) with a high certainty of need
Lower Priority: Timing of Need is further out (greater than 5 years) and is relatively uncertain
Market/Economic Assessment
Based on market knowledge gained over time
Likely to be a location-specific benefit analysis that includes some components of LNBA with additional confidential information
December 12, 2016 DRP Workshop

10. Other Demo B Learnings Relevant in Distribution Planning
Different DER Growth Scenarios do impact LNBA results, not always intuitively
Increasing DER growth embedded in forecast can increase or decrease locational T&D benefits of incremental DERs
Level of DER growth assumed in distribution planning can impact the magnitude and timing of a deficiency, however, not always intuitively
Learnings from Load Reduction Requirements Development
New methods to create load reduction requirements for distribution upgrade deferrals in Demo B will be refined/evaluated as DERs are increasingly deployed for this purpose.
Load reduction requirements to mitigate voltage issues are large and very locational
Relatively low cost of voltage support equipment and large amount of load reduction needed in a very small area results in relatively low benefit
Using DERs to reduce load to mitigate voltage issues may not be as successful as using DERs to manage reactive power

11. LNBA Tool Demonstration
Public Version of LNBA Tool and Documentation is available here:

12. Conclusion