Demand Response is a set of actions taken to reduce electric loads during times of emergencies, extremely high energy prices, or grid congestion, in order to:
- Balance supply and demand such that demand does not exceed supply - or
- Alleviate rising electric supply costs
See Demand Response History for more background.
Rulemaking for Future Demand Response Policies
In September 2013, the CPUC opened a Rulemaking for the purpose of enhancing the role of Demand Response in meeting the state’s resource planning needs. The CPUC divided the Rulemaking into four phases:
The CPUC authorized bridge-funding for 2015-2016 Demand Response portfolios.
The CPUC determined it would bifurcate Demand Response into individual Supply-side and Load Modifying program strategies, and also address Demand Response Auction Mechanism (DRAM), cost allocation/recovery, and back-up generation.
The CPUC will review Demand Response Goals related to Resource Adequacy, CAISO Market Integration Costs, supply and load modifying resources, and future DR program budgets.
Phase 4: Demand Response Roadmap
Not Yet Opened.
The CPUC will develop a plan to coordinate with other CPUC proceedings and state on Demand Response issues, to commence after Phase 3 issues are resolved.
Sets rules for implementing the direct participation of Demand Response providers in the CAISO energy markets.
Demand Response Archives
Utility managed programs that 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. Current budget: approximately $450 million.