4.2.3. Revenue from CAISO Market Participation
Revenue, if any, from participation in CAISO markets,32 should be included as a benefit in the TRC, RIM, and PAC tests. Revenue from CAISO market participation refers to any revenue that a demand response program receives in return for providing demand response services to the CAISO, for example as Ancillary Services or a Proxy Demand Resource. In order to qualify as ancillary services under CAISO rules, a program must be available to be called on short notice (usually with less than 10 minutes notice) and the load drop from the program must be accompanied by certain required telemetry, consisting of specific communications and measurement equipment that ensures performance. Proxy Demand Resource activities similarly provide information to CAISO about the load drop in a particular situation. This benefit is not listed in the original SPM tests, but payment received by a demand response program (or a generator) that provides such services is an additional revenue stream that will be considered as a benefit in the cost-effectiveness calculation.
32 For example, from provision of ancillary services or Proxy Demand Resource services.
