III. Utility Applications
A. SCE
SCE's original application states it expects to add 321 megawatts (MW)1 of demand response over the three-year program cycle with a budget of $132.7 million. By the summer of 2008, SCE estimates that it will have a total enrollment of 1,911 MWs in its demand response programs. If the modified settlement is adopted, SCE expects to enroll an additional 252 MW during the program cycle for a total of 1,842 MW by summer 2008. SCE emphasizes its view that the utilities should be encouraged to offer cost-effective demand response programs that involve all types of customers and all types of demand response programs. SCE states its proposals for 2006-2008 are geared to increase customer use of demand response options by making them more understandable and attractive which would in turn improve system reliability and reduce system prices. It would accomplish this by increasing awareness of existing programs, expanding successful programs, and creating a new program and several pilot programs. It plans to integrate its demand response marketing efforts with its energy efficiency marketing programs and more aggressively conduct other outreach efforts with customers.
SCE's proposes to launch a new pilot to test the next generation of communicating thermostats and to continue the following existing programs:
I-6 (Interruptible Tariff)
Base Interruptible Program
Demand Bidding
Voluntary Critical Peak Pricing2
Demand Reserves Partnership (DRP) (and a successor program in 2007)
Air Conditioning Cycling Program
Agriculture and Pumping Interruptible Program
Energy Smart Thermostat Program
Statewide Pricing Pilot rate programs (through 2006)
Technical Assistance/Technical Incentive Program (TA/TI)
Various customer education and marketing programs -
e.g., Flex Your Power Now
SCE also proposes continue to fund promising demand response technologies. SCE will not renew its 20/20 program unless anticipated summer conditions, determined by October of the prior year, warrant a need for it. A table of SCE's proposed and adopted budget for each program element is included as an attachment to the amended settlement. A summary description of each program element is included as Attachment A. Attachments A, B and C are intended to summarize the utility demand response portfolios, some of which are not part of the settlement. To the extent the attachments conflicts with the adopted settlement, the settlement governs.
B. PG&E
PG&E proposes program budget of $158 million over three years and by the summer of 2008, PG&E estimates that it will have a total enrollment of 876 MWs in its demand response programs. Like SCE, PG&E plans to conduct marketing and outreach efforts that are integrated with energy efficiency programs to reduce customer confusion and increase the efficiency of marketing efforts. PG&E proposes to continue the following demand response programs:
Demand Bidding
Community Energy Management Program
Voluntary Critical Peak Pricing Program3 (including Bill Protection)
TA/TI
DRP (and a successor program in 2007)
Various customer education and marketing programs -
e.g., Flex Your Power Now
PG&E would substantially modify its Business Energy Partnership (or Business Energy Coalition) to include a new customer group and increase funding from about $2.5 million to $14.2 million. It also notes that the decision about whether to continue the Base Interruptible Program is under consideration in its 2003 general rate case.
PG&E proposes two new programs. The PEAK program - which is already underway in SDG&E's territory -- would educate California students about energy use and would be supported with a budget over $3.24 million over three years and would provide service to 15,000 students during that period. PG&E proposes a Special Projects Group (SPG) to be funded at $1.3 million. The SPG would develop strategies for long term energy savings. PG&E would eliminate the 20/20 program at the end of 2005 because it is unlikely to be as effective as advanced metering and may penalize those who conserve more than 20% of energy in a single year by making them ineligible for awards in subsequent years.
PG&E would choose not to implement a residential air conditioning cycling program at this time, explaining that it may not be as cost-effective as advanced metering. It requests $1.54 million to administer and decommission the Statewide Pricing Pilot Program in addition to the $2.895 million authorized by the Commission statewide for 2005. Finally, PG&E proposes to eliminate its Scheduled Load Reduction Program (SLRP), which is required by Section 740.10 because it only has one customer subscribing.
A table of PG&E's proposed and adopted budget for each program element is attached to the amended settlement. A summary description of each program element is included as Attachment B.
C. SDG&E
SDG&E proposes a budget of about $56 million for 2006-08 demand response programs. It anticipates a total of 384 MW of demand response by the summer of 2008. SDG&E also emphasizes integrating its demand response programs with its energy efficiency efforts, good marketing and customer education. Its application emphasizes voluntary programs. It proposes to continue the following existing programs in 2006-2008, with minor modifications to some programs:
Voluntary Critical Peak Pricing4
Demand Bidding Program
DRP (with modifications in 2007)
Commercial-Industrial Peak Day 20/20
Emergency Demand Bidding Program
Base Interruptible Program
Emergency Critical Peak Pricing
Residential Smart Thermostat
Summer Saver, Clean Gen, Peak Gen (Rolling Blackout Reduction Program), Optional Binding Mandatory Curtailment, SLRP 5
Various customer education and marketing programs - e.g., Flex Your Power Now!
Like PG&E and SCE, SDG&E will continue to offer TA/TI programs that provide consultation services to business customers about demand response and energy efficiency program options and technologies. It also describes various customer education and outreach programs that are part of its demand response efforts, and proposes an advice letter process whereby it may annually modify its budgeted programs to be more effective. A table of SDG&E's proposed and adopted budget for each program element is included as an attachment to the amended settlement. A summary description of each program element is included as Attachment C.
1 A portion of these additional MWs are attributable to funding approved via SCE's 2003 General Rate Case or D.05-01-056.
2 SCE's voluntary Critical Peak Pricing tariff would be replaced by a new voluntary CPP tariff if approved by the Commission in its default CPP proceeding (A.05-01-016 et. al.).
3 PG&E's voluntary CPP tariff would be replaced by a new voluntary CPP tariff if approved by the Commission in its default CPP proceeding (A.05-01-016 et al.).
4 SDG&E's voluntary CPP tariff would be replaced by a new default CPP tariff if approved by the Commission in its default CPP proceeding (A.05-01-016 et al.).
5 These programs were listed in SDG&E's application for the purpose of showing the complete portfolio of programs, but funding for these programs have already been provided via other Commission proceedings.
