DER projects based on the ability to withstand difficultto-predict, yet inevitable outages. This limits the potential to allocate distribution and transmission investment funds toward DER projects to support or construct community microgrids that can offer both resiliency and local capacity for distribution deferral value. Nevertheless, in light of the potential for widespread outages due to PSPS and wildfires, the CPUC set aside significant incentives in its Self-Generation Incentive Program (SGIP) to target higher uptake of customer-sited storage and renewable DERs in vulnerable areas. In a 2019 CPUC decision, the CPUC allocated budgets for two set-aside energy storage programs: US$70 million to the SGIP Equity Program and US$100 million to the Equity Resiliency Program. The SGIP program offered US$850/ kWh for installed capacity for residential and nonresidential customers located in disadvantaged or low-income communities, and the equity program offered US$1,000/kWh to low-income or medical baseline customers in high wildfire risk areas. These incentives were designed to expedite the construction of over 180 MWh of storage statewide. These two incentive tranches in the SGIP budgets were quickly oversubscribed, and there is currently a waiting list of approved projects with no budget available. As more resiliency-focused projects are installed, they will offer the opportunity to collect data to support the development of 2019 400 450 500 100 150 200 250 300 350 50 Hour Ending (Standard Time) 2020 100 150 200 250 300 350 50 1357 911 13 15 17 19 21 23 Hour Ending (Standard Time) Methane Leakage Losses 100 150 200 250 300 350 50 -50 1357 911131517192123 Hour Ending (Standard Time) Ancillary Services Distribution Capacity Transmission Capacity Generation Capacity Energy GHG Adder and Rebalancing Cap and Trade figure 2. The estimated hourly avoided costs of DER programs. (Source: Energy and Environmental Economics, 2021.) march/april 2022 ieee power & energy magazine 29 2021 Losses Ancillary Services Distribution Transmission Capacity Energy GHG Adder Cap and Trade Average Hourly Value of Energy (US$/MWh) Average Hourly Value of Energy (US$/MWh) 1 2 3 4 5 6 7 8 9 Average Hourly Value of Energy (US$/MWh) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24