operational requirements. The Commission initiated the rulemaking with the intention of retooling demand response to align with the grid’s needs while enhancing the role of demand response in carrying out California’s energy policies. The first major decision of this proceeding occurred in December 2014 when the Commission approved Decision (D.) 14-12-024, requiring bifurcation of demand response programs and integration of supply side resources into the California Independent System Operators (CAISO) energy market by the year 2018. Relevant to this Decision, D.14-12-024: 1) adopted a competitive neutrality cost causation principle, 2) directed Commission staff to study the potential of demand response in California (Potential Study), and 3) established a working group to develop the Demand Response Auction Mechanism Pilot (Pilot). On April 1, 2016, Lawrence Berkeley National Laboratory (Contractors) delivered its interim report on Phase I results of the Potential Study. The interim results focused on existing programs and stated that the second phase of the Potential Study would focus on newer models of demand response. In the Commission established guidance to Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE), (jointly, the Utilities) regarding existing models of demand response programs for 2018 and beyond and determined that a second decision would focus on new models of demand response programs, which would be developed following the delivery of the second phase of the Potential Study. The Contractors provided the second phase of the Potential Study on March 1, 2017.
operational requirements. The Commission initiated the rulemaking with the intention of retooling demand response to align with the grid’s needs while enhancing the role of demand response in carrying out California’s energy policies. The first major decision of this proceeding occurred in December 2014 when the Commission approved Decision (D.) 14-12-024, requiring bifurcation of demand response programs and integration of supply side resources into the California Independent System Operators (CAISO) energy market by the year 2018. Relevant to this Decision, D.14-12-024: 1) adopted a competitive neutrality cost causation principle, 2) directed Commission staff to study the potential of demand response in California (Potential Study), and 3) established a working group to develop the Demand Response Auction Mechanism Pilot (Pilot). On April 1, 2016, Lawrence Berkeley National Laboratory (Contractors) delivered its interim report on Phase I results of the Potential Study. The interim results focused on existing programs and stated that the second phase of the Potential Study would focus on newer models of demand response. In the Commission established guidance to Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE), (jointly, the Utilities) regarding existing models of demand response programs for 2018 and beyond and determined that a second decision would focus on new models of demand response programs, which would be developed following the delivery of the second phase of the Potential Study. The Contractors provided the second phase of the Potential Study on March 1, 2017.
198319901.docx