ISO DISCRETIONARY LOAD CURTAILMENT PROGRAM ,
 FYI.  Should be of interest.
Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 03/12/2001 10:04 AM -----


DISCRETIONARY LOAD CURTAILMENT PROGRAM

The California Independent System Operator (ISO) has created the=20
Discretionary Load Curtailment Program (DLCP) to provide additional resourc=
es=20
to the grid for the management of potential system emergency conditions. =
=20
This program provides an energy-only payment and gives Loads total control=
=20
over their curtailments, the control that many need to feel comfortable=20
participating in a demand response program. =20
The DLCP consists of two parts:=20
? a Day Ahead Request, and=20
? a Day Of Request for curtailment. =20
The ISO will pay Load Aggregators $500/MWh for Demand they offer and curtai=
l=20
in the Day Ahead portion, and $750/MWh for Demand they offer and curtail on=
=20
the Day Of portion. =20
This program will act as an umbrella for certain UDCs=01, programs under=20
Assembly Bill AB31x and also attracts any other aggregator that can bid loa=
d=20
curtailments into the program.  A Load Aggregator (LA) can be any company w=
ho=20
enters into a DLCP Agreement with the ISO.  Because AB31x provides payments=
=20
for the bundled customers that are aggregated by the UDCs, an alternate=20
agreement will be made with them regarding procedures of operation.  Non-UD=
C=20
Load Aggregators will receive the performance payments from the ISO through=
=20
their elected Scheduling Coordinator. =20
The DLCP will operate year-round during the hours of 7:00AM until 8:00PM fr=
om=20
now until December 31, 2001.  The need for this program will be evaluated=
=20
throughout 2001 and implemented for 2002 if needed. Some provisions includi=
ng=20
trigger mechanisms and payments may be re-evaluated and changed based on=20
Summer 2001 experience. =20
The ISO is accepting proposals from those interested in being a Load=20
Aggregator, starting on March XX, 2001 and continuing until the end of this=
=20
program. For more information and a copy of the Request for Proposals, plea=
se=20
visit our web site (www.caiso.com/clientserv/load) (this will be posted aft=
er=20
the DLCP is approved).
The DLCP is intended to provide the ISO with Demand curtailment from Loads=
=20
that may not be able to participate in the ISO=01,s Participating Load Prog=
ram=20
(Ancillary Services and Supplemental Energy) or the ISO=01,s Summer 2001 De=
mand=20
Relief Program.  However, contracted DRP Loads may participate in the DLCP=
=20
during months outside of the DRP period. Additionally, existing UDC=20
interruptible customers that have met their yearly contractual obligation m=
ay=20
participate. This new program is intended to allow end-use Loads to=20
participate, through a Load Aggregator, in a curtailment program while givi=
ng=20
those Loads total discretion whether to participate in any day the program =
is=20
activated by the ISO.




Key Features of the DLCP
Feature=09
DLCP Availability=09March XX, 2001 =01) December 31, 2002
Minimum Load Aggregator Portfolio=091MW
Curtailed Energy Payment=09Day Ahead: $500/MWh
=09Day Of:        $750/MWh=20
Curtailment Window=097:00 AM =01) 8:00 PM
DLCP Request=09Day Ahead Request:
=09Upon ISO projecting a need for demand response (the ISO may call on this=
=20
program based upon the best available temperature, load, and resource=20
forecast information) for specified hours of the next day.  The DLCP Day=20
Ahead Request will be issued by 4:00PM
=09Day Of Request:
=09Upon ISO projecting a need for demand response (the ISO may call on this=
=20
program based upon the best available temperature, load, and resource=20
forecast information) for specific hours on that day.  The DLCP Day Of=20
Request will be issued by 8:00AM. =20
DLCP Offer=09LAs shall respond to the DLCP Day Ahead Request by 6:00pm of t=
he day of=20
the DLCP Request.=20
=09
=09LAs shall respond to the DLCP Day Of Request by 9:00AM.   =20
DLCP Confirmation =09The ISO will issue a DLCP Day Ahead Confirmation notic=
e to=20
the LAs no later than 7:00 PM of the day before the curtailment.  =20
=09
=09The ISO will issue a DLCP Day Of Confirmation notice to the LAs no later=
 than=20
9:30AM of the day of the curtailment. =20
DLCP Curtailment=09The LA shall assure that the Load is notified and curtai=
ls in the=20
hour(s) as per the DLCP Confirmation notice.  =20
Use of Generation=09Less than 1MW total behind each interval meter, with ap=
proval from=20
AQMD.
Order / Timing of Curtailment=09Because the DLCP Curtailment will be based =
on the times=20
identified in the DLCP Confirmation notice the curtailments could occur=20
irrespective of the Emergency Status.


Eligibility
DLCP Load Aggregator
In order to be eligible for the DLCP, Load Aggregators (including UDCs):
1. Must be able to provide a portfolio that contains a net reduction in=20
Demand of at least 1MW, either alone or when aggregated with other customer=
s,
2. Must sign a DLCP Agreement,
3. Must have an ISO approved performance measurement process,=20
4. Must be capable of interacting with the ISO=01,s DLCP infrastructure as =
well=20
as communicate with the end-use Load customer,
5. Must nominate an SC for settlement transactions with the ISO.

DLCP End-Use Load Customer
In order to be eligible for the DLCP, an end-use Load customer:
1. Must be able to provide a net reduction in Demand that meets the criteri=
a=20
of the LA, or the Local Regulatory Authority,
2. Must have an interval meter approved by the Local Regulatory Authority, =
or=20
have the appropriate measuring device(s) as required by the approved LA=01,=
s=20
performance measurement process,
3. Must be located inside the ISO Control Area (ask your LA, if you are not=
=20
sure),
4. Must not concurrently participate in the ISO=01,s Summer 2001 DRP, howev=
er=20
may participate during months outside of the DRP contracted period (May=20
15-September 30, 2001),=20
5. If the end-use load is a UDC interruptible customer, the customer may=20
participate in the DLCP as long as the customer has met all the contractual=
=20
obligations of an interruptible customer,
6. Must not have a Participating Load Agreement (PLA) with the ISO for the=
=20
same Load offered under the DLCP,
7. Must obtain and provide positive proof of all necessary permits of=20
operation or approvals from the local Air Pollution Control District or Air=
=20
Quality Management District for each individual Generating Unit designated=
=20
for participation in the DLCP.=20

DLCP Process:
? DLCP Request
1. DLCP Day Ahead Request:
The ISO will project the need for demand response. The ISO may call on this=
=20
program based upon the best temperature, load, and resource forecast=20
information available by 4:00PM the day ahead.  The ISO will issue a DLCP D=
ay=20
Ahead Request by e-mail to all contracted Load Aggregators.  The e-mail=20
notice will request the curtailment amounts for two-hour blocks within the=
=20
ISO specified curtailment timeframe.  The ISO will provide any constraints =
in=20
the notice.
2. DLCP Day Of Request:
The ISO will project the need for demand response.  The ISO will base this=
=20
projection upon the best temperature, load, and resource forecast informati=
on=20
available by 8:00AM of the day of the request. The ISO will issue a DLCP Da=
y=20
Of Request by e-mail to all Load Aggregators.  The e-mail notice will reque=
st=20
the curtailment amounts for each two-hour block requested.  The ISO will=20
provide any constraints in the notice.

? DLCP Offer
1. By 6:00PM on the Day Ahead, the Load Aggregators will submit to the ISO,=
=20
through the ISO DLCP website, their committed amounts of Load Curtailment. =
=20
The ISO expects that the Load Aggregators will have contacted the End-Use=
=20
Loads in their program to determine how much curtailment will be available=
=20
and for which hours of the day.=20
2. By 9:00AM of the Day Of, the Load Aggregators will submit their committe=
d=20
amounts of curtailment. =20

? DLCP Confirmation
Once the ISO reviews submitted DLCP Offers, ISO Operations will issue an=20
e-mail notice to both the Load Aggregators and their Scheduling Coordinator=
s=20
accepting specific DLCP Offers.  The ISO will issue the DLCP Confirmation=
=20
notice by 7:00PM on the day the Day Ahead Request was made and by 9:30AM fo=
r=20
the Day Of Requests. These confirmation notices will request that the Load=
=20
Aggregators communicate to the End-Use Loads the required curtailment amoun=
t=20
and duration.  This will be the only communication (dispatch) to the Load=
=20
Aggregators detailing the curtailment. =20
? DLCP Performance
The effectiveness of the DLCP will be based on the performance of each=20
End-Use Load in curtailing their confirmed curtailment amount. The ISO=20
expects that the committed curtailment will occur based on the hours as=20
confirmed through the DLCP Confirmation notices.  An aggregator has the=20
responsibility to produce the demand reduction it confirms.  There is no se=
t=20
penalty, except that continued poor performance could result in revocation =
of=20
the DLCP Agreement. =20

? Performance Measurement Guidelines
The measurement of performance for each End-Use Load will be performed by t=
he=20
Load Aggregators.  Each Load Aggregator will have an ISO approved performan=
ce=20
measurement plan, which will be used to calculate the DLCP performance.  Th=
e=20
performance measurement plan shall include the following:
? For interval metered End-Use Loads the Load Aggregator will calculate a=
=20
baseline Load profile.  DLCP performance will be measured by the difference=
=20
between baseline Load profile and the meter read for the hour(s) of=20
curtailment. =20
? For non-interval metered Loads, DLCP performance will be calculated by=20
using a combination of sample measurements, historic data, process controls=
,=20
use of data loggers, and any other performance measurement method approved =
by=20
the ISO.  Load Aggregators shall obtained ISO approval prior to offering DL=
CP=20
for non-interval metered End-Use Loads.  (It should be noted that the ISO=
=20
favors interval meters.)
? DLCP Settlement
Each DLCP Offer for which a DLCP Confirmation was issued by the ISO shall b=
e=20
uniquely identified.  Therefore, DLCP Day Ahead and DLCP Day Of offers must=
=20
be separately identified. The Load Aggregators (except for the UDCs) shall=
=20
submit the DLCP Performance Measurement for each confirmed offer by using t=
he=20
DLCP website no later than 45 days following the operating day of the DLCP=
=20
Curtailment.  The ISO will calculate the performance payment by simply=20
multiplying the DLCP energy price ($500/MWh for DLCP Day Ahead and $750/MWh=
=20
for DLCP Day Of) by the amount of DLCP (in MWs) for each hour of confirmed=
=20
curtailment. For each month the performance payments will be summed up for=
=20
all the confirmed curtailments and paid to the Load Aggregator=01,s nominat=
ed=20
Scheduling Coordinator.  The payment will be made to the Scheduling=20
Coordinator in accordance to the ISO Payment Calendar timeline. =20
The ISO recognizes that UDCs acting as Load Aggregators will have specific=
=20
rules to follow for the settlement of the dispatched curtailment.  The UDCs=
=20
will be responsible for following the settlement rules and regulations set=
=20
forth by the CPUC for the End-Use Loads. =20

How to enroll in the DLCP:
Load Aggregator
1. For a Load Aggregator, contact the ISO.  The DLCP Request for Proposal=
=20
(RFP) and Agreement are posted on the ISO website:=20
www.caiso.com/clientserv/load,
2. Contact the ISO.  The ISO contact for the DLCP is:
Glen Perez, Manager Data Quality
California ISO
gperez@caiso.com
3. Submit a proposal and enter into a DLCP Agreement.  Responses to the RFP=
=20
should be submitted to:
California Independent System Operator
151 Blue Ravine Road
Folsom, CA 95630

Attention:  John Counsil, Contracts=20

End-Use Customers
1. Contact a Load Aggregator.  A list of approved Load Aggregators will be=
=20
posted on the ISO website: www.caiso.com/clientserv/load,
2. Contact your UDC.  They may have an enrollment process to be followed. =
=20
3. Any questions contact the ISO.  The ISO contact for the DLCP is:

Glen Perez, Manager Data Quality
California ISO
gperez@caiso.com
laura.ipsen@enron.com, lgoldseth@svmg.org