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CPUC Avoided Transmission and Distribution Cost Study to Support the Avoided Cost Calculator: Avoided Transmission Costs Draft Research Plan

Pacific Northwest National Laboratory (PNNL) and Lawrence Berkeley National Laboratory (LBNL) have been contracted by the California Public Utilities Commission (CPUC) Energy Division (ED) to perform a study which explores and selects an improved methodology to estimate avoided electricity transmission and distribution (T&D) infrastructure costs that can be attributed to the presence of distributed energy resources (DERs). PNNL is performing the study for avoided electricity transmission infrastructure costs and LBNL is performing the study for avoided electricity distribution infrastructure costs. This document summarizes CPUC’s research questions related to avoided transmission infrastructure costs and PNNL’s proposed technical approach to answer these questions.

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Electric Utility Distribution Costs: Scoping Study on Trends, Drivers, and Possible Response Strategies [Slides]

This scoping study synthesizes information that will help stakeholders understand the scope, scale, and drivers of recent increases in investor-owned utility (IOU) expenditures on local distribution power grids, while providing regulators and other decision-makers with potential strategies to keep electricity bills down. The study includes five distinct components. Drawing first on data from FERC Form 1, it summarizes key trends in past and recent IOU distribution costs. Next, through a review of a sample of distribution-system plans, it characterizes material drivers of planned distribution expenditures. Ultimately, regulators must approve cost recovery for IOU expenditures, including those for the distribution system. The study therefore also: examines trends in utility requests and regulatory approvals related to changes in retail rates and return on equity; identifies areas where utility shareholder and customer incentives may be misaligned; and develops a menu of options that state regulators might consider to optimize distribution system expenditures. Some of the key findings include: - IOU distribution spending at a national level has grown by 6%/yr since 2014 in real dollar terms, 4x faster than in the prior 20 years and consisting mostly of capital (not operating) expenditure. - On a per-kWh basis, increases in IOU distribution costs since 2014 represent over 30% of the overall national-average increase in retail electricity rates. - Regional spending growth has ranged from 2-8%/yr, with larger estimated rate impacts in CAISO, then NYISO & ISO-NE, and then the Southeast, MISO & PJM (see figure). - Some utilities are planning for significantly increased distribution system spending. Planned spending on managing the existing system (asset replacement, safety & reliability, and resilience are all important drivers) exceeds that for capacity expansion. - IOU rate increase requests ($18 billion in 2025) and public utility commission (PUC) approval levels (average of 64% of requested amounts from 2021-2025) have recently hit multi-decadal highs. - PUCs in New England and the Southeast have recently approved a greater fraction of rate requests (>75%, on average) than in ther regions, while PUCs in California and the Southeast have generally authorized higher equity returns than in other regions. - Regulators have many tools to tackle potential misalignments between utility and customer interests and, more specifically, to optimize and reduce distribution costs. Shorter-term options include those related to return on equity, capital structure, depreciation, trackers, construction work in progress, and securitization. Longer-term options include performance-based regulation and a wide variety of planning-related requirements. All options embed important tradeoffs.

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Game Theory Approaches for System-level Incentive Design

This report presents a generalized Stackelberg game framework for designing and evaluating financial incentives that enhance power system resilience through strategic deployment of distributed energy resources(DERs) under various contingencies. The proposed approach addresses the challenge of coordinating individual community investment decisions to meet system-wide resilience objectives. The framework is demonstrated in a three-community test system subjected to two transmission contingency scenarios: inter-community line failure (Case 1) and complete main grid disconnection (Case 2). In both cases, three incentive levels are compared: a Base case with no financial incentives, and low and high incentive cases. In Case 1, the Base case (no incentives) results in a total installed DER capacity of 217.2 MW, with no load shedding due to alternative routing, but community costs remain high. Increasing incentives raises DER deployment to 286.9 MW, lowers aggregate community costs by $22M annually, and completely avoids the need for costly new transmission line construction. In Case 2, the Base case results in 24.3 MWh of unserved load; introducing incentives eliminates all load shedding and ensures up to 89 MWh of battery storage is available for emergency reserve. These results demonstrate that targeted incentives can dramatically improve grid resilience and cost-effectiveness. The framework thus offers policymakers and system planners a robust tool to quantify and compare the effectiveness of incentive programs for multi-community transmission networks behavior, system resilience, and economic efficiency.

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Strategic Planning for Energy-Resilient Communities

Distributed energy resources (DERs) offer flexibility and community benefits in both blue- and black-sky conditions. Outside of a power disruption, they can provide significant cost savings and reduce grid stress during times of high demand. During a disruption to the central grid, these technologies can meet critical energy needs through the use of battery storage. However, communities must consider many planning and design dimensions and tradeoffs to integrate energy systems that meet financial and resilience goals. This presentation, given at the 2026 State Energy Conference of North Carolina, defines resilience in an energy context, discusses strategies and best practices for planning resilient energy systems and sites, including resilience hubs and microgrids, highlights NLR tools and capabilities for helping communities in this space, and features successful case studies in North Carolina related to energy resilience.

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Space Shuttle Upgrades Advanced Hydraulic Power System

Three Auxiliary Power Units (APU) on the Space Shuttle Orbiter each provide 145 hp shaft power to a hydraulic pump which outputs 3000 psi hydraulic fluid to 41 hydraulic actuators. A hydrazine fuel powered APU utilized throughout the Shuttle program has undergone many improvements, but concerns remain with flight safety, operational cost, critical failure modes, and hydrazine related hazards. The advanced hydraulic power system (AHPS), also known as the electric APU, is being evaluated as an upgrade to replace the hydrazine APU. The AHPS replaces the high-speed turbine and hydrazine fuel supply system with a battery power supply and electric motor/pump that converts 300 volt electrical power to 3000 psi hydraulic power. AHPS upgrade benefits include elimination of toxic hydrazine propellant to improve flight safety, reduction in hazardous ground processing operations, and improved reliability. Development of this upgrade provides many interesting challenges and includes development of four hardware elements that comprise the AHPS system: Battery - The battery provides a high voltage supply of power using lithium ion cells. This is a large battery that must provide 28 kilowatt hours of energy over 99 minutes of operation at 300 volts with a peak power of 130 kilowatts for three seconds. High Voltage Power Distribution and Control (PD&C) - The PD&C distributes electric power from the battery to the EHDU. This 300 volt system includes wiring and components necessary to distribute power and provide fault current protection. Electro-Hydraulic Drive Unit (EHDU) - The EHDU converts electric input power to hydraulic output power. The EHDU must provide over 90 kilowatts of stable, output hydraulic power at 3000 psi with high efficiency and rapid response time. Cooling System - The cooling system provides thermal control of the Orbiter hydraulic fluid and EHDU electronic components. Symposium presentation will provide an overview of the AHPS upgrade, descriptions of the four hardware elements, and a summary of development results to date.

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Plug-in Electric Vehicle Charging Response Characterization for Grid Integration: Implications for Smart Charge Management

The rapid expansion of plug-in electric vehicles (PEVs) has created a unique challenge for electrical grids due to their significant power demand. At the same time, PEVs also create a unique opportunity to ease their own burden on the power grid, as they create a growing fleet of distributed energy resources capable of providing grid services such as demand response, frequency regulation, and renewable balancing. For aggregators and grid operators to effectively integrate PEVs into grid management, it is essential to first understand and characterize how they would respond in such situations. This study examines 25 models of PEVs across 25 makes, spanning model years from 2013 to 2025, to characterize their responses to the basic controls used in vehicle-grid integration (VGI): stopping, starting, and modulating the charge rate. Each vehicle was tested in a controlled laboratory setting to evaluate its performance in response to varying the maximum allowable current via the SAE J1772 control pilot signal, as well as its response to wake-up commands outlined in SAE J1772. Results show measurable differences across vehicle makes in the accuracy, latency, and precision with which PEVs respond to changes in ampacity, as well as varying sleep and wake-up behavior. The test results show that all vehicles respond to changes in ampacity, though with varying accuracy, precision, latency, and resolution. Wake-up behavior also differs across makes and models. These findings indicate that effective grid integration strategies must account for these differences. The results provide a foundation for understanding current vehicle behavior and advancing smart-charging methods while also highlighting the need for further testing, broader standardization, and manufacturer collaboration to ensure the successful integration of PEVs into the electrical grid.

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Digital Grid Twin–Direct Communication Scheme Test Bed for Assessing Relay-to-Relay Radio Antenna and Optical Fiber Performance and Misoperations

This study introduces a novel “Digital Grid Twin–Direct Communication Scheme” test bed. This advanced platform evaluates point-to-point communication between transmitter and receiver relays with optical fiber and radio omnidirectional antenna systems, implemented at the Advanced Protection lab in the Grid Research Innovation and Development Center at Oak Ridge National Laboratory. The increased diversity of energy sources has led to more protective relay misoperations. In North America, microgrid protection schemes now use point-to-point communication along distribution lines between relays to implement advanced logic in nonradial grids that include both high- and low-inertia generators. This trend challenges utilities to minimize misoperations while ensuring rapid fault clearance and accurate selectivity coordination between primary and backup relays. This study assesses relay-to-relay communication schemes by introducing an advanced testing platform based on a digital grid twin protection test bed using a synchronized time source system. The platform evaluates the communication system using radio antennas or optical fiber links by integrating protective relays that operate breakers within the digital twin and record relay events and communication signals. In the experiments, transmitter and receiver relays were configured with inverse time overcurrent and breaker trip detection logic to assess the total time of the communication protection schemes based on the sum of the relay protection element operating time, radio latency, propagation delay, baud rate delay, and relay processing time. These delays were derived from recorded relay events and communication signals from the interface of a real-time simulator set as a digital grid twin. The test bed successfully simulated various electrical faults along a distribution line while ensuring effective and reliable point-to-point communication between transmitter and receiver relays. The radio antenna communication system exhibited latency because of the radio. This latency depends on the baud rate setting and type of radio application; in general, the higher the baud rate, the lower the radio latency. The measured radio latency (for Mirrored Bits with an encryption card at 9,600 bps) was about 9–10 ms. Additionally, calculated propagation delay per mile for radio antennas and optical fiber was 5.36 µs/mi and 8.04 µs/mi, respectively. Optical fiber communication did not demonstrate radio latency. Instead, the protection element operating time depends mainly on the protection logic function set in the relay, and the relay processing time depends on the processing rate of the relay in samples per power system cycle.

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Distribution System Plan Template and Guide for Electric Utilities for Adaptation by States and Utilities [Slides]

LBNL researchers developed a template and companion guide for structuring distribution system plans. The template covers 10 key sections in utility distribution system plans and underlying topics: -Executive Summary -Planning Objectives -Current Distribution System -Planning Approach -Asst Management, Reliability and Resilience -O&M Expenses -Capacity Expansion Planning -Solution Identification -Cost-effectiveness -Implementation For each section in the template, the companion guide provides: a description of the topics covered and their importance; the type of content to include in the plan; an example utility approach; and references to other utility plans that serve as models for the topic.

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Cybersecurity Risk Profiles for Distributed Energy Resource Management Systems

Managing the digitalization of increasingly diversity energy resources is a complex challenge for energy systems planners and managers. As the penetration of solar photovoltaics (PV) and other distributed renewable energy resources (DERs) expands, distributed energy resource management systems (DERMS) will play an increasingly important role in managing, monitoring, and controlling DERs as electric systems before more distributed, interconnected, and networked. However, the cybersecurity implications of DERMS deployments are not well understood today. A lack of understanding around the cybersecurity implications of DERMS deployments and variability in the security posture of DERMS vendors, owners, and operators could introduce new security risks to evolving electric power systems. This paper describes cybersecurity attack scenarios on DERMS, identifies related cybersecurity standards and guidelines, reviews the security features of state-of-the-art DERMS solutions, and offers cybersecurity guidance for DERMS vendors, owners, and operators to protect DERMS' unique capabilities. Standardizing cybersecurity requirements for DERMS could help improve the security of DERMS integrations and improve innovations that are more secure by design. The cybersecurity guidance found in this paper is intended to offer a unified approach and lay the foundation for future standardization of DERMS cybersecurity to reduce risk to the solar industry and other renewable energy stakeholders when integrating these technologies with electric power systems.

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Safe Deep Reinforcement Learning for Active Distribution System Model Predictive Control with EVs and DERs

The temporal and spatial mismatch between PV generation and electric vehicle (EV) charging and discharging may cause voltage violations in active distribution networks. Despite the widespread use of deep reinforcement learning (DRL) in power system optimization and control, it lacks guarantees on constraint satisfaction during both training and deployment. This paper proposes a Lagrangian-based safe DRL approach for model predictive control (MPC) of active distribution systems with large-scale integration of PVs, EVs, and energy storage systems (ESSs). A Transformer-LSTM time-series model is proposed to forecast EV charging demand, which is then formulated as a constraint to ensure charging requirements are met. Using this prediction, a Lagrangian-based safe soft actor-critic (SAC) framework is developed for real-time control in a three-phase unbalanced distribution system, enforcing voltage safety constraints while optimizing the cumulative net reward. By integrating the forecasting model with multi-period constraints, the proposed framework jointly coordinates PV systems, EV charging and discharging, and ESS scheduling within the MPC horizon. Numerical experiments on a modified IEEE 123-bus system with real-world data show that, under a high PV penetration scenario, the proposed method increases the net reward by 30.74% and reduces average voltage violations from 0.0011 p.u. to 0.0002 p.u. compared with standard SAC. Compared with the optimal power flow (OPF) approach, it achieves similar voltage security while yielding lower line losses. It also maintains real-time control capability, reducing operation latency to 53.21 ms per 15-minute control interval. The proposed method remains effective under varying PV/EV penetrations and load conditions.

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Differential Privacy in Grid Kitchen: Implementation & Software Documentation

Sharing of power grid feeder models faces significant challenges due to the potential risk of exposing sensitive operational information. Traditional anonymization techniques have shown notable limitations in other sensitive domains, as evidenced by documented re-identification attacks that combine supposedly anonymized datasets with auxiliary information, raising concerns that similar vulnerabilities could affect power grid data. Consequently, there is a pressing need for a more rigorous privacy protection strategy that not only delivers formal mathematical guarantees but also preserves the analytical value of the shared models. To address this challenge, we have enhanced the Grid Kitchen framework by implementing differential privacy mechanisms within the distribution model dehydration pipeline. This implementation carefully calibrates and applies noise to sensitive attributes in feeder models according to configurable privacy levels—low, moderate, and high—each offering different balances between data utility and privacy protection. Our approach uses established noise functions (Gaussian for continuous data and Discrete Laplace for integer values) with parameters carefully calibrated so that the impact of individual data points is effectively masked in the final output. The integration leverages our Noise Catalog, which we developed to categorize feeder model properties by component type, data type, and sensitivity. This catalog guides the application of appropriate noise functions and privacy parameters ($\varepsilon$ and $\delta$) to each attribute, ensuring consistent privacy protection across the model while maintaining its structural integrity and analytical usefulness. This implementation also includes evaluation tools that allow model owners to assess the impact of privacy-preserving transformations before sharing data with external parties. This report provides documentation for the differential privacy capabilities added to the Grid Kitchen project. It includes a primer on differential privacy concepts and their importance in modern data sharing, details the architecture of our implementation, explains the privacy modes and parameter configurations, and offers practical guidance on using the code for applying differential privacy to grid feeder models. Through examples and code snippets, we demonstrate the effective application of these privacy-enhancing technologies, enabling utility operators and researchers to confidently share grid data while protecting sensitive information.

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Virtual Power Plant Profiles and Inventory

Increased adoption of distributed energy resources (DERs), growing quantities of renewable energy on the grid, and load growth from buildings, industry, and data centers are driving the need for increased demand flexibility and solutions to reliably and cost-effectively balance electricity supply and demand. In order to deploy DERs on a similar scale as conventional supply-side resources, utilities and state decision-makers are exploring a range of programmatic approaches and market designs, including Virtual Power Plants (VPP). Based on interviews with more than twenty subject matter experts on VPPs, the Insights into Scaling Virtual Power Plants report and appendix outlines actions that utilities and regulators can take to expand VPPs, organized around successful VPP designs, deployment, and operation. The companion report, Virtual Power Plant Profiles and Inventory describes three conceptual profiles that can be used as a starting point to facilitate clear discussions among regulators, utilities, solution providers, and stakeholders about various VPP strategies. It also includes details on more than 790 demand response programs and net energy metering solar plus battery programs, and 180 VPP programs. The Inventory is provided below as a separate file.

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Economic Evaluation of Modernization Expenditures for Electric Utility Distribution Systems: A Guide for Utility Regulators

Cost-effectiveness evaluation of potential grid modernization solutions is integral to integrated distribution system planning (IDSP). This report synthesizes and updates prior cost-effectiveness approaches identified by the U.S. Department of Energy for grid modernization investments, incorporating multi-objective decision-making. The structure of the report follows the IDSP process, from identifying objectives and priorities to prioritizing grid solutions. The report details two methods for conducting initial cost-effectiveness screening of individual and interdependent grid components: (1) Lowest Reasonable Cost and (2) Benefit-Cost Analysis. Drawing on solutions that passed the initial cost-effectiveness screen, the utility prioritizes grid solutions based on policy objectives and priorities, regulatory compliance, operational efficiencies, and other factors to develop a portfolio of distribution solutions. The utility uses multi-objective decision-making to assess each proposed expenditure against each objective and respective metric. The utility applies a weighting factor, reflecting the priority ranking of the objective, to the total numerical “score” based on the contribution of the proposed solution to addressing each objective. Ultimately, the utility ranks each expenditure from highest to lowest priority using the final score for each solution as well as its cost. The report includes examples of emerging best practices for states and utilities and a cost-effectiveness process checklist.

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Integrated Multi-Fidelity Model and Co-Simulation Platform for Distribution System Transient and Dynamic Analysis—DistribuDyn

As inverter-based, distributed energy resources (DERs) and variable loads continue to proliferate across distribution systems, it is increasingly important to understand their impacts on system stability and reliability. However, most commercially available simulation tools for distribution planning primarily focus on steady-state and quasi-steady state analysis, offering limited capabilities to study transient and dynamic behaviors.

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State Requirements for Electric Distribution System Planning

Utilities have conducted distribution planning since they first began building and operating electricity systems. But filing these plans for regulatory and stakeholder review is a relatively recent phenomenon. This report summarizes legislative and regulatory requirements for regulated electric utilities to file some type of distribution system plan in 20 U.S. jurisdictions. Some plans focus on expedited cost recovery for certain types of distribution system improvements; other plans focus on investments for grid modernization or distributed energy resources. Increasingly, states are adopting requirements for Integrated Distribution Plans. Such plans provide holistic grid investment strategies that address state and local policies and increasing complexity at the grid edge. The report covers the following topics for distribution system plans, highlighting advanced practices: -State goals and objectives -Procedural requirements -Forecasting loads and distributed energy resources -Hosting capacity analysis -Baseline information requirements -Grid modernization strategy -Grid needs assessment -Non-wires solutions -Reliability and resilience analyses -Stakeholder engagement -Equity -Pilots -Coordination with other planning processes The report includes links to legislation; regulatory requirements, proceedings, and orders; and filed utility plans. The U.S. Department of Energy’s Office of Electricity provided funding support.

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Master Services Agreement - Flexible Feeder/Distribution System Support: Cooperative Research and Development (Final Report)

PGE will engage NREL on a broad range of projects related to the integration of distributed energy resources (DERs) into the utility's operations. This portfolio of work could include projects focused on DER adoption models, advanced distribution management system (ADMS) and distributed energy management system (DERMS) design, DER dispatch strategy development, and DER valuation framework development. Additional topics could include long-term energy planning, renewable energy, energy efficiency and demand-side management. As well as technology evaluations and design guidance for building retrofits and new construction projects, energy and energy infrastructure planning, policies, and markets (and their analysis), energy storage, energy security and resilience (including energy system-related cybersecurity), transportation and mobility, technology integration analysis. Additionally, other assistance as requested by PGE consistent with NREL’s expertise.

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Feasibility Analyses for the Microgrid of the Mountain in the Cordillera Central Region of Puerto Rico

Distributed energy resource (DER) development can benefit communities through improvement of access to reliable electricity and a resilient energy system. Many place-specific considerations must be accounted for when designing electrical systems with co-located generation and loads. This paper presents an overview of four studies focusing on different aspects for regional DER development in the Cordillera Central region of Puerto Rico, including a grid and load stability study with the introduction of solar energy generation, microgrid design based on the solar resource in the area, resilience considerations during power outage scenarios, and qualitative risk aspects for components in the microgrid. Additionally, a conceptual substation microgrid analysis is conducted using the Microgrid Design Toolkit (MDT) to evaluate trade-offs between cost and energy availability, providing insights into optimal design strategies. A microgrid resilience assessment is performed using the Resilient Nodal Cluster Analysis Tool (ReNCAT) to identify critical loads and evaluates their accessibility during outages, emphasizing the importance of community needs. Finally, a qualitative risk assessment utilizing Hazard and Operability Analysis (HAZOP) methods highlights potential hazards and mitigations for microgrid components, ensuring robust system design and operation.

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A Data-Driven Voltage Control Strategy for Distribution Grids With Distributed Energy Resources

Traditionally, distribution system control approaches have been model-based. The deployment of advanced metering infrastructure has provided electric utilities with the capability of data-driven control with real-time measurements. The shift from model-based to data-driven control represents a significant advancement in the management of distribution systems, offering a more adaptive approach to system control because of the ability to dynamically adapt to changing conditions without the need for system modeling. Here, in this paper, a behavioral data-driven control method is developed to provide voltage regulation to an actual distribution system by controlling the legacy devices and distributed energy resource (DER) assets. The studied distribution system has a load tap changer and three capacitor banks as the legacy devices and photovoltaic systems as the DERs. The performance of the proposed control algorithm is validated using a laboratory test bed setup considering multiple scenarios. The results show that the proposed control achieved 99% voltage regulation.

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