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Committee debates virtual power plant models and proxy‑price method that affect competitiveness
Summary
Members discussed whether utilities or third‑party aggregators should run virtual power plants and the measurement changes (AMI, coincident peak) needed to capture value; they also reiterated concerns that the PUC's proxy‑price method has led to systematic undercollections.
Committee members debated two related policy questions: who should operate virtual power plants (utilities versus aggregators using price signals) and how wholesale/retail settlement methods affect the ability of community power and distributed resources to capture full value.
A presenter described tension between a utility‑run VPP model (where the utility dispatches aggregated batteries and controls them as part of system planning) and a market‑based approach that uses dynamic price signals and smart metering to let devices, aggregators and customers respond. He argued that capturing avoided energy, capacity and transmission charges requires coincident‑peak measurement and widespread AMI/smart meters; in their absence, the full value stack is difficult to assign to local distributed resources.
Members linked the measurement conversation to broader regulatory concerns: the committee has been challenging a proxy‑price forecasting method that, staff said, tends to undercollect and produce persistent balances. They said industry and commission rule changes are in process and that their success could make the community power program more competitive starting next February.
No formal policy vote occurred; the committee will continue to monitor regulatory proceedings and utility pilot programs.
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