PG&E Proposes Four New Cost-effective Energy Storage Projects to CPUC

Pacific Gas and Electric Company (PG&E) today requested approval of four
cost-effective energy storage projects totaling approximately 567
megawatts (MW), in a filing at the California Public Utilities
Commission (CPUC).

In January, the CPUC authorized
PG&E to launch an accelerated solicitation for energy storage projects
capable of meeting reliability needs for three specified local sub-areas
in the northern central valley (Pease local sub-area and Bogue local
sub-area) and spanning Silicon Valley to the central coast (South Bay -
Moss Landing local sub-area).

PG&E issued its request for offers on February 28 and received offers
from numerous participants. After careful evaluation, PG&E selected one
offer for a utility-owned project and three offers for third-party owned
projects, all to be located within the South Bay - Moss Landing local
sub-area.

The proposed utility-owned project is a 182.5 MW lithium-ion battery
energy storage system (BESS) located within PG&E’s Moss Landing
substation. This transmission-connected BESS will address local capacity
requirements and will participate in the California Independent System
Operator (CAISO) markets, providing energy and ancillary services.

“Energy storage plays an increasingly important role in California’s
clean energy future, and while it has been a part of PG&E’s power mix
for decades – starting with the Helms Pumped Storage Plant in the 1980’s
– recent decreases in battery prices are enabling energy storage to
become a competitive alternative to traditional solutions. As a result,
we believe that battery energy storage will be even more significant in
enhancing overall grid reliability, integrating renewables, and helping
customers save energy and money,” said Roy Kuga, vice president, Grid
Integration and Innovation, PG&E.

The three contracts awarded for third-party owned projects also are
lithium-ion battery projects.

The projects include: a 10MW aggregation of behind-the-meter batteries
located at customer sites and interconnected to local substations within
the South Bay – Moss Landing local sub-area; a stand-alone,
transmission-connected 75MW BESS located near the city of Morgan Hill;
and a stand-alone, transmission-connected 300MW BESS located in Moss
Landing.

PG&E is implementing transmission solutions, rather than energy storage
contracts, for the Pease and Bogue local sub-areas that would
effectively address capacity shortfalls and alleviate voltage issues in
those areas, respectively.

If approved by the CPUC, the first of PG&E’s proposed projects is
scheduled to come on-line by the end of 2019, with the other projects
scheduled to come on-line by the end of 2020. For details on the four
proposed projects, please refer to the table below.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric energy companies in the United States. Based in San
Francisco, with more than 20,000 employees, the company delivers some of
the nation’s cleanest energy to nearly 16 million people in Northern and
Central California. For more information, visit www.pge.com/
and www.pge.com/en/about/newsroom/index.page.

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