4.1.5. Section 1.E: Relationship to the Planning Reserve Margin and Resource Adequacy

This section discusses the interaction between the Commission's resource adequacy requirements and the cost-effectiveness of demand response programs. The protocols note that a demand response program may avoid the need for generation capacity to the extent that it meets RA requirements established by the Commission. The protocols also provide that at this time, the value of the capacity avoided by a demand response program need not take into account whether a region already has sufficient resources to meet RA requirements, though this approach may be modified is appropriate based on future developments.