1. Operating a modern renewable-based grid
Mary McDonald
Director, State Affairs
California Independent System Operator
Chile-California Clean Energy Conference
April 18, 2018

2. The California ISO: One of nine grid operators in North America: 2/3 of the U.S. is supported by an ISO
One of 38 balancing authorities in the western interconnection
Uses advanced technology to balance supply & demand every 4 seconds
Operate markets for wholesale electricity & reserves
Manage new power plant interconnections
Plan grid expansions
California ISO is part of the interconnected western electric grid, that includes Canada and Baja Mexico
There are actually 38 Balancing Areas in the west: Each Balancing Area has a responsibility for:
Balancing supply and demand
Ensuring grid is secure in case of a contingency event
Transmission system is operated within limits
Orchestrating restoration in case of a system outage
ISO operates the resources selected by the State as is in their jurisdiction
ISO is regulated by Federal Energy Regulatory Commission (FERC) because of the interstate nature of the grid
California imports and exports energy (Historically we are a net importer)
High technology in grid operations is key because energy is produced and consumed instantaneously at the speed of light, a fast automated dispatch is necessary especially as we continue on our growth with renewables
Interest this high technological tool by other non- ISO utilities in the western grid RTOs Competition (Phil will cover this largely in his statement, so you will not need to spend a lot of time here)

3. 2/15/2017
Electric industry in the midst of unprecedented change Driven by fast-growing mix of interrelated issues
Fossil Plant Revenues; Retirements
Grid Modernization
50% Renewables
Gas Storage Challenges
Community Choice and/or Retail Choice
Fossil Plant Retirements: Between 2011 and 2022, approximately 10,000 MW retired of natural gas and nuclear. New natural gas of approximately 3200 MW in the LA Basin / San Diego area.
Grid Modernization: Synchrophasers (provides faster information and helps identify and predict reliability issues), Smart Wires (non-transmission alternative, essentially a flow controller that can redirect flow if needed).
Gas storage challenges: In 2015, Aliso was authorized to reinject by DOGGR and CPUC up to a certain level to maintain reliability. There are new safety regulations being developed by DOGGR. CEC has called for retirement within 10 years.
Next steps: In SB 380, the CPUC was directed to open a proceeding to examine reducing or eliminating Aliso. There were a number of mitigation measures put into place, through FERC, that limited the amount of gas burn by plants in the LA basin on days when gas supply was in short supply. New CPUC balancing rules have also been helpful.
T-D Systems Interface: Historically the ISO and the utility distribution companies (UDCs) have not had to coordinate their operations because power flow was only one-way – from central station power plants on the ISO system down to end-use customers. But now we’re seeing rapid expansion of distributed energy resources (DERs) – particularly solar PV, battery storage and EV charging – and many DERs are seeking to participate in the ISO markets. This is creating new hard-to-predict impacts on distribution systems that affect the ISO grid at the transmission-distribution interfaces. ISO is working with the distribution utilities to implement new real-time coordination procedures to ensure reliability in a high-DER future.
Regional Collaboration
Consumer-owned Power
Transmission & Distribution Systems Interface

4. Major progress on meeting CA’s renewable goals
Currently Installed:
21,000 MW of large-scale renewables
6,000 MW of rooftop solar
Additional renewables:
3,300 MW for 50% RPS by 2030*
11,400 MW of consumer rooftop solar by 2030**
* 2018 CPUC IRP
**2017 CEC IEPR

5. Net Load of 7,149 MW on February 18, 2018
The duck turns 10 years old: Actual net-load and 3-hour ramps are about four years ahead of the CAISO’s original estimate
Typical Spring Day
Steeper
Ramps
Actual 3-hour ramp
of 14,777 MW on March 4, 2018
Deeper
Belly
Net Load of 7,149 MW on February 18, 2018

6. 2017 Curtailment Percentage of Potential Production
Increasing trend of renewable curtailment varies with seasonal and hydro conditions
2017 Curtailment Percentage of Potential Production
Solar: 2.8%
Wind: 1.3%

7. A suite of solutions are necessary

8. The Modernization of the Western grid
Western Energy Imbalance Market (EIM):
Total savings of $ million since start in Nov 2014
520,417 MWh curtailment avoided, displacing an estimated 222,657 metric tons of CO2
Integration of renewables across a larger geographical area
Enhances reliability with improved situational awareness
Reduces costs through automatic economic dispatch
Balancing authorities maintain control and reliability responsibilities
Entities exploring future participation:
Salt River Project, LADWP, Northwestern Energy, CENACE

9. Sign up for the Daily Briefing at www.caiso.com
THANK YOU
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