Demand Response

Background

Demand Response is a set of actions taken to reduce electric loads during times of emergencies or grid congestion, in order to:

1. Balance supply and demand such that demand does not exceed supply, or
2. Alleviate rising electric supply costs.

The CPUC is currently reviewing the utilities' 2012-14 Demand Response program proposals. A Proposed Decision (PD) was issued on October 28, 2011 that sided with DRA's recommendation to reject several utilities' programs for lack of cost-effectiveness and reduced the utilities' budget request by $76.1 million, which is close to the amount DRA recommended. 

Read more more Background on Demand Response.

DRA’s Policy Position

DRA recommended the CPUC disapprove several Demand Response programs for 2012-2014 unless the utilities improved their cost-effectiveness. Overall, DRA recommended a reduction to the utilities' budget request by approximately $80 million.

Commissioner Mark Ferron issued an Alternate Proposed Decision on March 20, 2012. Although DRA prefers adoption of Administrative Law Judge Hymes’ Proposed Decision, DRA can support the APD with modifications correcting technical and factual errors.

See DRA's filings:

• Comments on April 9, 2012 on the Alternate Proposed Decision
• Comments on September 23, 2011 on proposed Demand Response participation rules.
• Reply Brief on September 9, 2011, recommending the CPUC reject Demand Response programs that are not cost-effective.
• Opening brief on August 22, 2011, opposing the use of ratepayer dollars for the utilities’ proposed $533 million 2012-2014 Demand Response programs because they are not cost-effective. 

Read more about DRA's Policy Position and details of its recommendations to improve DR programs.

Current Proceeding Status

An Alternate Proposed Decision was issued by Commissioner Mark Ferron on March 20, 2012 and comments are being submitted in the proceeding.

• See the proceeding docket.

Other Resources

• See DRA's Demand Response presentation 
• Many of the CPUC's Decisions / Background can be found on the CPUC's Demand Response page.
• California Independent System Operator (CAISO) website describes plans to integrate DR in CAISO’s wholesale markets.