COM/CRC/sid Mailed 12/1/2006
Decision 06-11-049 November 30, 2006
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of PACIFIC GAS AND ELECTRIC COMPANY (U 39-E), for Approval of 2006-2008 Demand Response Programs and Budgets. |
Application 05-06-006 (Filed June 1, 2005) |
Southern California Edison Company's (U 338-E) Application for Approval of Demand Response Programs for 2006-2008 and Cost Recovery Mechanism. |
Application 05-06-008 (Filed June 1, 2005) |
Application of San Diego Gas & Electric Company (U 902-E) for Approval of Demand Response Programs and Budgets for Years 2006 through 2008. |
Application 05-06-017 (Filed June 2, 2005) |
ORDER ADOPTING CHANGES TO
2007 UTILITY DEMAND RESPONSE PROGRAMS
TABLE OF CONTENTS
Title Page
ORDER ADOPTING CHANGES TO
2007 UTILITY DEMAND RESPONSE PROGRAMS 2
I. Summary 2
II. Background 5
III. Demand Response Program Performance in July 2006 7
IV. Policy Issues and Standard of Review 8
V. Summary of Utility Proposals 16
VI. Demand Response Proposals 25
A. Proposals Applicable to Multiple Utilities 25
1. BIP, Non-Firm Service Program, and I-6 25
a) PG&E BIP and Non-Firm Program 25
b) SDG&E BIP 30
c) SCE I-6 and BIP 31
d) Customer Window to Adjust Firm Service Level 33
2. Demand Bidding Program (DBP) 33
a) PG&E 33
b) SDG&E 35
c) SCE 36
d) Discussion 37
3. Air Conditioning (AC) Cycling Programs 38
a) PG&E AC Cycling 38
b) SDG&E Summer Saver Program 41
4. Demand Response Request for Proposals (RFP) 42
5. Technical Assistance/Technical Incentives (TA/TI) 45
6. Automated Demand Response (Auto DR) 46
7. Permanent Load Shifting 49
a) Ice Energy Proposal 50
b) Water Agency Proposal 51
c) Discussion 52
d) Discussion of Water Agency Proposals 53
B. PG&E Proposals and Budget 53
1. Large Customer CPP Program 53
2. Small Customer Aggregation Pilot Program (SCAPP) 54
3. Business Energy Coalition (BEC) 56
4. Back-Up Generators (BUGs) 57
5. Statewide Pricing Pilot (SPP) 59
6. Budget Impact and Cost Accounting 59
C. SDG&E Proposals and Budget 60
1. Commercial and Industrial (C&I) Peak Day Credit Program 60
2. Residential Smart Thermostat Program 61
3. CPP 61
4. In-Home Display Program 61
5. Program Budgets and Accounting 62
D. SCE Proposals and Budget 62
E. TURN's Proposal for Swimming Pool Pumps 63
VII. Comments on Proposed Decision 63
VIII. Assignment of Proceeding 67
Findings of Fact 67
Conclusions of Law 69
2007 UTILITY DEMAND RESPONSE PROGRAMS
I. Summary
This order adopts a number of augmentations and improvements to existing utility demand response programs and budgets originally adopted in Decision (D.) 06-03-024.1 The Commission adopts these changes in order to promote system reliability during the summer peak demand periods of 2007 and 2008. To this end, we adopt the following modifications to the demand response programs of Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E) and Southern California Edison Company (SCE):
A. Programs Common to Multiple Utilities
1. Base Interruptible Program (BIP)
· PG&E: Adopts increased incentives for Option A. Authorizes a new option that offers incentive payments of $0.60/kWh for participation, no capacity payment, no penalty for non-participation, 4 hours notice, and called only when deemed prudent by PG&E. Allows aggregators to participate.
· SDG&E: Adopts penalty reduction of 25%, adds additional triggers, adopts changes to Rule 29, and directs SDG&E to permit aggregators to sign up customers with less than 100 kW loads as long as the aggregated load exceeds 100 kW.
· SCE: Directs SCE to permit third-party aggregator participation.
2. Demand Bidding Program (DBP)
· All IOUs: Adopts a flat rate incentive of $0.50 for day-ahead calls and $0.60 for day-of calls, adopts "soft" triggers, enlarges the bidding windows, and approves enrollment simplifications.
3. Air Conditioning Cycling Programs
· PG&E: Approves in concept a 2007 AC cycling program that would install 5,000 switches using the existing demand response budget and subject to advice letter review of the detailed budget.
· SDG&E: Adopts new options: 100% cycling for residential and 30% cycling for commercial, adopts weekend events, and directs SDG&E to improve its website.
4. Demand Response Request for Proposal (RFP)
· PG&E and SCE: Directs utility to move forward with their proposals to run an RFP or seek bilateral contracts for new demand response programs, and requires the utilities to file applications for Commission approval of specific contracts.
5. Technical Assistance/Technical Incentives (TA/TI)
· All IOUs: Increases per kilowatt TA/TI incentives to encourage customer adoption of demand response enabling technologies.
6. Auto DR
· All IOUs: Authorizes use of existing TA/TI funds and directs the utilities to work with the Demand Response Research Center to develop detailed proposals.
7. Permanent Load Shifting
· All IOUs: Directs each utility to pursue RFPs and bilateral arrangements for permanent load shifting to be implemented by summer 2007, and to file an advice letter with its proposal by February 28, 2007.
8. Critical Peak Pricing:
· PG&E: Eliminates geographic zones, and earlier customer notification.
· SDG&E: Adopts soft triggers and increases event maximum to 15.
B. PG&E Programs
1. Small Customer Aggregation Pilot Program:
· Allows SF Power until June 1, 2007 to reach its 2006 goal of signing up 1 MW, authorizes additional funding when performance goals are met, permits expansion to two additional counties, and authorizes development of a permanent load shifting program.
2. Business Energy Coalition:
· Authorizes PG&E to expand the program to 50 MW in 2007 using the existing demand response budget, and directs PG&E to propose extending the program beyond 2008 in an application.
C. SDG&E Programs
1. Commercial and Industrial Peak Generation Program:
· Restructures the incentive payment format by providing payment for reductions between 10% and 20%, and softening the triggers. For 2007 and 2008.
2. Residential Smart Thermostat Program:
· Extends the program through 2007.
3. In-Home Display Program:
· Implements a new program that will offer residential customers an in-home display device that will provide information to customers on their energy usage and potential cost by the hour, month and month-to-date.
1 "Demand response gives an individual electric customer the ability to reduce or adjust their electricity usage in a given time period, or shift that usage to another time period, in response to a price signal, a financial incentive, or an emergency signal." (D.03-06-032, Attachment A, "California Demand Response: A Vision for the Future (2002-2007)").
