One Common Framework for Rooftop Solar, Batteries and EVs: CPUC Orders California's Three Big Utilities to Propose a Coordinated DER Plan

San Francisco — The California Public Utilities Commission (CPUC) on October 29 directed Pacific Gas and Electric Company (PG&E), Southern California Edison, and San Diego Gas & Electric to propose a coordinated framework for managing distributed energy resources (DERs), including customer-sited batteries, electric vehicles, and other technologies that can adjust when and how electricity is used.
The common DER orchestration framework will allow the coordinated management of DERs using visibility, forecasting, and scheduling tools to identify location- and time-specific distribution needs and signal eligible DERs to deliver verifiable services that align with those needs.
The CPUC said the decision aims to help California make better use of these resources to meet local electricity needs, advance electrification and decarbonization, support a reliable grid, and potentially reduce or defer the need for costly infrastructure upgrades. The decision also requires utilities to strengthen their distribution planning by evaluating how flexible electricity demand can help address grid constraints and support California's continued electrification, with the potential to create savings for ratepayers.
DERs are small-scale, local power generation, storage, and demand management devices connected directly to utility distribution wires or located behind customer meters. They can generate, store, or adjust electricity use closer to where energy is consumed; examples include rooftop solar paired with batteries, electric vehicle charging that can be shifted to different times, and flexible building energy systems. DER orchestration is the coordinated management of DERs by a distribution system operator — in this case the utilities acting in that role. When coordinated, these resources may help manage periods of high demand, address local grid constraints, support service restoration and outage mitigation, and reduce the need for certain traditional infrastructure investments.
Under the decision, the three utilities must work with stakeholders through a working group process to develop a common framework proposal. The framework must address open and interoperable communications, data sharing, cybersecurity, customer protections, and clear participation pathways, and must address how customers, energy service providers, community choice aggregators, and other resource providers can participate without unnecessary barriers or duplicative compensation. The utilities' implementation proposals will be assessed subsequently, allowing a common set of statewide rules to be established first, with incremental progress reflecting each utility's technology readiness.
Commissioner Darcie L. Houck, who is assigned to the proceeding, said California's grid is evolving, with investments in resources like batteries, electric vehicles, and distributed solar. When coordinated effectively, she said, these resources can help support the electric system's needs, grid reliability, and climate goals, and reduce electric system costs for ratepayers. She said the decision moves the state toward a common framework for the utilities to manage and forecast DERs, and creates visibility for the California Independent System Operator.
CPUC President John Reynolds said he was pleased to be laying the groundwork for DER orchestration, that there is more work ahead in building a future grid that works for everyone, and that he will be particularly interested in proposals regarding affordability and competitive neutrality when utility applications are reviewed.
The decision also directs the utilities to develop new load flexibility scenarios for their annual distribution planning process, beginning with the 2028-2029 planning cycle. The new scenarios will help utilities evaluate how changes in electricity demand — including shifting electric vehicle charging or using batteries and other flexible resources — could affect the need, timing, and size of grid upgrades, complementing the existing low-, base-, and high-demand planning scenarios, with the potential for significant ratepayer savings.
Commissioner Christine Harada said making better use of the grid California already has can help connect customers sooner and keep costs down, and that the decision gives families and businesses more options to charge a car, electrify a home, or expand operations while reducing the need for costly upgrades. She said those options need to be easy to understand and easy to use, and must deliver real savings for ratepayers.
Source: GSM · USA (original Chinese edition)
Photo: 图:加州公用事业委员会(CPUC)总部所在的旧金山州办公大楼(Governor Edmund G. Pat Brown Building),Wikimedia Commons,CC BY-SA 4.0;GSM 自家图库加州包 ca-cpuc-building。 / Photo: The San Francisco state office building (Governor Edmund G. Pat Brown Building) housing the California Public Utilities Commission headquarters. Wikimedia Commons, CC BY-SA 4.0; GSM California asset pack ca-cpuc-building.

