California PUC approves rules for Microgrid Incentive Program
The California Public Utilities Commission (CPUC) approved rules for a new Microgrid Incentive Program for three utilities: Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E).
The Microgrid Incentive Program is a $200 million initiative authorized by the CPUC to support the development of community microgrids in disadvantaged and vulnerable communities. Of that total, $79.2 million will be allocated for PG&E, while SCE will get $83.3 million, and SDG&E will receive $17.5 million. The money is for microgrid projects in disadvantaged and vulnerable communities.
Projects selected under the program can receive up to $15 million in award funding.
“The Microgrid Incentive Program will provide valuable support to disadvantaged and vulnerable communities towards ensuring they are not left behind in the broader statewide resiliency effort,” CPUC Commissioner Genevieve Shiroma said. “These communities tend to be located in more electrically isolated areas with greater distances to essential services, experience more outages, and have less accessibility to entities with backup power. This program will also provide the funding and education many communities need to meaningfully participate in the program.”
As part of its approval of the rules, CPUC is requiring the utilities to create and post a handbook to utility webpages within 180 days. The handbook will guide applicants through the program and explain how potential projects will be evaluated.
“The Microgrid Incentive Program is a huge win for Californians, clean energy, and the advancement of equity,” CPUC President Alice Reynolds said. “It’s strategically designed such that the benefits of large-scale, complex, and clean microgrids can be brought, in a targeted fashion, to the communities and areas that need them the most.”
