How to unleash DER in CA by fixing transmission cost allocation distortions [WEBINAR] - 5/10/18

How to unleash DER in CA by fixing transmission cost allocation distortions [WEBINAR] - 5/10/18

🎙 Doug Karpa (Clean Coalition) 👥 249 📅 May 11, 2018 ⏱ 68 min 👁 167 📄 expert opinion 🧭 2026-10-10
Available in: English (current) Français

Keywords

transmissiondistributed generationrate designCAISOwholesale DER

Summary

This webinar, presented by Doug Karpa of the Clean Coalition, addresses the distortions in California transmission cost allocation that penalize distributed energy resources (DER). Karpa argues that transmission costs are rising rapidly, and that well-placed distributed generation can reduce peak loads and avoid expensive transmission investments, saving ratepayers billions. He explains two different transmission charge formulas used in California: one charges based on energy crossing the transmission-distribution interface (used by municipal utilities), the other charges on all customer energy (used by investor-owned utility territories), creating an unfair disadvantage for wholesale DER in PTO territories. Using FERC rate design principles (historical cost drivers, current beneficiaries, and market incentives), he evaluates which formula is fairer and more efficient. He concludes that the current system underestimates DER benefits, misallocates costs, and hinders the transition to clean energy. The presentation includes economic comparisons showing that when full delivery costs are included, distributed generation can be more economical than remote transmission-connected generation. He also discusses reliability benefits, citing the Thomas fire as an example of transmission vulnerability. The webinar ends with recommended next steps to fix the allocation method and promote DER.

187 words

Critical Evaluation

Value of the Information & Strength of the Argument

The presentation offers substantial value by quantifying the impact of transmission cost allocation on DER economics, including a specific claim of a 3 cents per kWh distortion. It systematically applies FERC rate design criteria, presents clear examples (e.g., load pocket reliability with solar+storage against transmission lines), and uses real data to illustrate peak shaving potential. The argumentation is logical, addressing counterpoints like the cost-effectiveness of transmission by including full lifecycle costs. However, it is advocacy-driven, with a clear conclusion favoring DER, and may overstate benefits while dismissing potential downsides of distributed generation (e.g., integration costs). The reasoning is strong overall, but the analysis is one-sided.

Scientific Rigor, Source Quality, Title Accuracy

The scientific rigor is decent: the presenter uses public data from EIA and CAISO, references FERC legal standards, and provides slides for further detail. The quality of sources is acceptable, though as an advocacy group, the Clean Coalition has a vested interest in DER expansion, which may bias interpretation. The title perfectly matches the content, which is a technical webinar about fixing transmission cost allocation to enable DER. The presentation does not include any advertising or sponsored segments. The described content is aligned with the actual presentation, and the webinar recording and slides are archived as stated.

217 words

Title / Content Match

The title accurately reflects content: the webinar explains how distorted transmission cost allocation hinders DER in California and proposes fixes.

Quality & Reliability

7/10

The presentation is technically detailed, based on public data (EIA, CAISO), and uses FERC standards, but it is advocacy from the Clean Coalition, so a neutral reliability score is moderate.

Key Moments

Cited Sources

Concurring Sources

  • U.S. Energy Information Administration (EIA) — Data on transmission investment growth and electricity market trends cited in the presentation.
  • Federal Energy Regulatory Commission (FERC) — FERC rate design standards and factors used to evaluate transmission charge methodologies.

Contribution & Novelties

The webinar contributes an accessible yet technically detailed analysis of how transmission cost allocation distort DER economics, specifically in California. It frames the issue using FERC rate design principles and provides a quantitative comparison of two rate formulas, highlighting a hidden 3 cents/kWh penalty on wholesale DG. The presentation also introduces the concept of full-cost comparison, including delivery costs and resilience, to argue for DER adoption.

Pour aller plus loin :

111 words

Radar Profile

The radar profile shows high scores in quantity and technical level, with moderate reliability and quality. This suggests a technically rich and information-dense presentation, but with a potential bias due to advocacy, reflected in the lower reliability score.

Reliability 7/10