The PD adopts PG&E's "Slice-of-Day" proposal as the restructuring proposal that should be further developed over the next six months for adoption in 2023 for the 2024 RA compliance year. Accordingly, the PD directs parties to develop a final restructuring proposal that follows PG&E's proposal and also includes a hedging component to ensure that RA is linked with energy bidding behavior in order to balance reliability with minimizing costs to customers. Parties will develop a final restructuring proposal through a minimum of five workshops conducted over the next six months.
PG&E's Slice-of-Day proposal establishes RA requirements based on a “slice-of-day” framework, which seeks to ensure load will be met in all hours of the day, not just during gross peak demand hours. Using this framework, parties are directed to conduct a series of workshops that cover the following implementation details: (1) Structural Elements; (2) Resource Counting; (3) Need Determination and Allocation; (4) Hedging Component; and (5) Unforced Capacity Evaluation (UCAP) and Multi-Year Requirement Proposals.
See below for an outline of the proposal's major points:
PG&E proposes that system requirements be determined for each slice-of-day based on the maximum level of demand for the particular slice-of-day for the season, with two potential periods for the duration of the slice-of-day: six four-hour slices or four six-hour slices.
PG&E provides three seasonal options:
PG&E asserts that an exceedance-based approach is the best way to meet these objectives for most resources.
Storage resource would still be linked to capacity to produce energy during another slice-of-day, but the storage device would not be required to charge during that slice, but could charge during any slice it was not counting for RA.
