New Rulemaking

On July 21, 2017, the CPUC issued a Rulemaking (R.17-07-007) to streamline interconnection of distributed energy resources (DERs) and to make improvements to Rule 21. Potential revisions include, but are not limited to, the following topics:


  • Incorporating the results of the Integration Capacity Analysis, a method that helps to determine the optimal location for DERs on the grid, under development in Rulemaking (R.14-08-013);
  • Resolving issues related to interconnection of storage (particularly exporting storage);
  • Further development of “smart” inverters – smart inverters are devices which enable these ‘direct current’ resources to connect to the ‘alternating current’ grid;
  • Transmission cluster study thresholds; and
  • Timelines and cost allocations for grid upgrades.


The proceeding includes 6-8 working groups to discuss the issues above. As penetration of DERs continues to rise alongside the goal of interconnecting more resources, the Commission identified a need for these issues to be resolved to keep up with the rapidly changing grid.

On August 25, 2017, ORA issued reply comments in support of the scope of the Rulemaking to have four tracks and 22 issues, but ORA recommended that the Rulemaking be split into two proceedings: one for matters related to rate-setting and one for quasi-legislative matters.

On October 2, 2017, the CPUC issued a scoping memo outlining a schedule and the topics that the working groups will discuss in detail. Three phases were identified: Phase 1 will address the majority of the urgent and major issues above; Phase 2 will be categorized as rate-setting and will address cost allocation issues; and Phase 3 will address any revisions to Rule 21 for small and multi-jurisdictional utilities. The Commission is scheduled to make, adopt, modify or deny the working groups’ proposals in June of 2019.


CPUC Proceeding Docket

See the R.17-07-007 Proceeding docket.