8. Assignment of Proceeding

Rachelle B. Chong is the assigned Commissioner and Jessica T. Hecht is the ALJ in this proceeding.

1. Load impact estimates are necessary for analysis of the cost-effectiveness of DR programs, and for long-term resource planning.

2. Load impact protocols improve consistency and accuracy in the calculation of DR load impact estimates.

3. The variety of potential DR resource activities to be covered by the protocols requires a broad set of evaluation tools and methods.

4. Each different type of DR activity will require different input data, produce different output information and require an evaluation approach that takes into account unique elements of that DR resource.

5. It is not possible to provide a comprehensive list of baseline estimation methodologies that are appropriate for each possible type of DR program.

6. There is a relative absence of research on the accuracy of many baseline methodologies in different circumstances, so it is not yet possible to determine whether there are methodologies that are better or worse in any or all situations.

7. Flexibility in load impact protocols will allow evaluators to take advantage of new knowledge and improve estimates over time.

8. Load impact estimation methodologies appropriate for long-term resource planning are not necessarily appropriate for use in determining program settlement methods and terms.

9. The flexibility to choose appropriate methods and define additional purposes and needs beyond the minimum is appropriate in an area of M&E that is relatively new and does not yet have established best practices.

10. To the extent possible, estimates of the future impacts of DR programs should be informed by actual past performance of similar programs.

11. Settlement terms, including settlement baselines, are appropriately determined along with other specific elements of DR activities when the activities are adopted by the Commission.

12. Choice among possible baseline (and other) methodologies used in load impact estimation according to this protocol should be based on research into the accuracy of the available options.

13. Annual evaluation reports on the load impact of DR activities based on these protocols will provide information that may be of use in several Commission proceedings.

1. The Commission requires load impact information on DR programs for long-term resource planning and other purposes.

2. It is reasonable to allow flexibility on the part of load impact evaluators to choose methodologies feasible for and suitable to a particular type of DR activity.

3. It is reasonable to allow flexibility on the part of load impact evaluators to define additional purposes and needs beyond the minimum required in these protocols.

4. Settlement procedures and other program design issues, including settlement baselines, are outside the scope of this proceeding.

5. It is reasonable to require evaluators to offer a clear and research-based rationale for their chosen methodologies, and get input from stakeholders on possible alternative methodologies.

6. The DR Load Impact Estimation Protocols in Attachment A should be adopted for use by SCE, SDG&E, and PG&E.

7. These protocols should be used in future formal program evaluations, in the preparation of the IOUs' Applications for 2009-2011 Activities and Budgets, currently due June 1, 2008, and in other Commission proceedings, as appropriate.

ORDER

IT IS ORDERED that:

1. The Demand Response (DR) Load Impact Estimation Protocols in Attachment A (Adopted Protocols) are adopted for use by Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E), and Pacific Gas and Electric Company (PG&E).

2. Within 90 days of the date of this decision, SCE, SDG&E, and PG&E shall file initial evaluation plans on all DR activities for the year 2008.

3. SCE, SDG&E, and PG&E shall follow adopted protocols 1 through 26 in preparing load impact estimates to be filed in their 2009-2011 DR Applications on June 1, 2008.

4. SCE, SDG&E, and PG&E shall perform annual studies of their DR activities using the adopted protocols, and shall file reports consistent with Protocol 26 annually on April 1 of each year in this or a successor proceeding. If this and all successor proceedings are closed, the utilities shall file these reports with the Commission's Energy Division and serve them on the most recent service list for this, or a successor proceeding. The information contained in those reports may be used in other Commission proceedings, as appropriate.

5. SCE, SDG&E. and PG&E shall use the adopted protocols to estimate DR load impacts for long-term procurement planning and resource adequacy purposes, unless otherwise directed by the ALJ or Assigned Commissioner in the relevant Commission proceeding.

This order is effective today.

Dated April 24, 2008, at San Francisco, California.

Previous PageTop Of PageGo To First Page