CPUC President: Market should value demand response participants

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The California Public Utilities Commission (CPUC) will prioritize demand response as a utility procured resource, competitively bid into the California Independent System Operator wholesale electricity market, in an effort to enhance the ability of demand response to meet the state's clean energy goals while maintaining grid reliability. California's Energy Action Plan supports energy efficiency and demand response as the preferred ways to meet energy demand.

Through a new proceeding, the CPUC will:

  • Review and analyze current demand response programs to determine how to divide them into demand-side (customer-focused programs and rates) and supply-side resources (reliable and flexible demand response that meets system resource planning and operational requirements).
  • Create an appropriate competitive procurement mechanism for supply-side and demand response resources.
  • Determine program approval and funding cycle.
  • Provide guidance for transition years.
  • Develop and adopt a roadmap with the intent to collaborate and coordinate with other CPUC proceedings and state agencies in order to strategize the future of demand response in California.

"It is my goal for the CPUC to create a thriving demand response marketplace that fairly rewards participants for their contribution, which will result in a net benefit to ratepayers," said CPUC President Michael R. Peevey in a statement.  "Our job as regulators is to fix inefficiencies and waste in the marketplace.  If a commercial customer can dim its lights using new, low-cost control technologies, without affecting its bottom line, while helping the grid, then the market needs to value that. Demand response has incredible potential as a clean resource to maintain grid reliability."

For more:
- see the proposal

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