4. Summary of the Cost-Effectiveness Protocols

This section outlines the requirements of the 2010 Protocols.²³ The 2010 Protocols are based largely on three previous proposals filed in this Rulemaking: the cost-effectiveness framework submitted by the utilities in September 2007,²⁴ the Consensus Framework filed by numerous parties in November of 2007,²⁵ and the 2008 Staff Proposal distributed as Attachment A of the April 4, 2008 ALJ ruling in this proceeding.²⁶ The final 2010 Protocols incorporate numerous changes that address party comments on all of the above documents, especially the 2008 Staff Proposal. In addition, we will allow parties an opportunity to comment on these protocols, along with the inputs and results, whenever final cost-benefit analyses are submitted. At that time, we will accept suggestions for refinements or alterations to data or methods used in the analysis. The ALJ and/or assigned Commissioner may then hold further workshops or hearings as deemed necessary.

The 2010 Protocols are designed for use by the utilities. Nevertheless, these protocols may be applicable to demand response activities developed by any LSE, though LSEs other than the utilities may require additional guidance. The protocols are divided into three broad sections. Section 1 provides general guidance on the types and applicability of analyses required by the protocols. Section 2 of the protocols provides specific direction on using the modified versions of each of the tests required in the SPM. Section 3 provides a detailed discussion of each cost and benefit input to the SPM tests.

²³ If this discussion in this decision differs from the specifics of the protocol in Attachment 1, the full protocol is correct and should be followed.

²⁴ Revised Straw Proposals For Demand Response Load Impact Estimation And Cost Effectiveness Evaluation Of Pacific Gas and Electric Company (U39M), San Diego Gas & Electric Company (U902E) and Southern California Edison Company (U338E), filed September 10, 2007 ( http://docs.cpuc.ca.gov/efile/REPORT/72728.pdf).

²⁵ Joint Comments Of California Large Energy Consumers Association, Comverge, Inc., Division Of Ratepayer Advocates, EnergyConnect, Inc., EnerNoc, Inc., Ice Energy, Inc., Pacific Gas and Electric Company (U39M), San Diego Gas & Electric Company (U902E), Southern California Edison Company (U338E) and The Utility Reform Network Recommending a Demand Response Cost-Effectiveness Evaluation Framework, filed September 19, 2007 ( http://docs.cpuc.ca.gov/efile/CM/75556.pdf).

²⁶ Draft Demand Response Cost Effectiveness Protocols http://docs.cpuc.ca.gov/efile/RULINGS/80858.pdf.