How the California Independent System Operator and utilities can plan for and remain relevant in a changed energy future given the disconnect between the fast-moving world of consumer technology and plodding regulatory process was the focus of the grid operators’ annual symposium Oct. 22-23 in Sacramento. One of the biggest concerns in the inevitable energy modernization is how to adapt to— and not be displaced by—unanticipated technologies that significantly change the landscape. Specifically, at issue are growing levels of distributed generation and customers growing use of smart technology that allow them to call the shots on their energy use. It was characterized as the “Uber” problem. That phone application car transportation service has significantly displaced centralized taxi services with direct communication with customers. “What is going to catch us flat-footed?” asked Girish Balachandran, Riverside Public Utilities general manager. Balachandran insisted that utilities’ future value lay in their distribution role and as network centers for the two-way flow of data between utilities and customers. “We will be the [independent system operators] of distribution,” he said. Southern California Edison agrees. “Most of our focus is on wires growth,” said Pedro Pizarro, Edison president. With the shut down of San Onofre, Edison owns only 20 percent of its generation resources. The utility is spending $4 billion/year on capital investments, half of that dedicated to the distribution system, according to Pizarro. Kevin Payne, Edison senior vice president, emphasized the importance of the network role. He said it was critical “who interprets the data packages it and takes it to decision makers.” Jessie Knight, San Diego Gas & Electric chair, said the shift towards more distributed energy and unknowns about who will control its flow is a main reason San Diego Gas & Electric is investing heavily in natural gas, including liquefied natural gas. Rolled up in California’s future energy market is how much money to invest in aging infrastructure—from high voltage lines to new natural gas plants. V. John White, Center for Energy Efficiency and Renewable Technologies executive director, urged greater support for energy efficiency and demand response to help ensure a carbon lite economy. “If we don’t start imagining where and how we rely on these resources, we are not going to get there,” V. John White, executive director, Energy Efficiency & Renewable Technologies, warned. Last Friday, Gov. Jerry Brown said he was planning on setting a stringent 2030 carbon emission reduction target.
