California PUC Uses SCC to Help Determine Value of DERs
Evaluation of Distributed Energy Resources
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.
e.g. $123/Mt CO2e for 2020 emissions (2016 IWG SCC high-impact values, 3% discount rate). 1
Rulemaking 14-10-003: Order Instituting Rulemaking to Create a Consistent Regulatory Framework for the Guidance, Planning and Evaluation of Integrated Distributed Energy Resources.
The CPUC ALJ ruling and staff report are currently awaiting formal adoption by the Commission.
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