California PUC Uses SCC to Help Determine Value of DERs

  • Application

    Evaluation of Distributed Energy Resources

  • Date

    March 2018
  • Details

    California Public Utilities Commission (CPUC) is determining its approach for evaluating distributed energy resources (DERs). On March 14, 2018, a CPUC administrative law judge issued a ruling, including a proposed staff report, which, if adopted by the Commission, would require utilities to conduct a societal cost test to determine the cost-effectiveness of DERs. The ruling would require utilities to calculate the climate benefits of DERs by using the Social Cost of Carbon estimate developed by the Interagency Working Group.

  • SCC Value(s)

    e.g. $123/Mt CO2e for 2020 emissions (2016 IWG SCC high-impact values, 3% discount rate). 1

  • Reference

    Rulemaking 14-10-003: Order Instituting Rulemaking to Create a Consistent Regulatory Framework for the Guidance, Planning and Evaluation of Integrated Distributed Energy Resources.

  • Litigation


  • Status

    The CPUC ALJ ruling and staff report are currently awaiting formal adoption by the Commission.

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