Demand response is a resource that allows end-use electric
customers to reduce their electricity usage in a given time
period, or shift that usage to another time period, in response
to a price signal, a financial incentive, an environmental
condition or a reliability signal. Demand response saves
ratepayers money by lowering peak time energy usage, which are
high-priced. This lowers the price of wholesale energy, and in
turn, retail rates. Demand response may also prevent rolling
blackouts by offsetting the need for more electricity generation
and can mitigate generator market power. Currently, demand
response programs are administered by California’s three
regulated investor-owned utilities: PG&E, SCE, and SDG&E. Most
of the utility demand response programs target large commercial
and industrial customers that are equipped with meters that are
capable of measuring and reporting energy usage in one hour
intervals or less. Customers without an interval meter
(essentially residential and small commercial custo