3. Elimination of the Energy Options Program

In Application (A.) 08-06-001, SCE requested authority to discontinue its Capacity Bidding Program and Demand Bidding Program in early 2010, and to transition the customers on those programs into a new Energy Options Program. D.09-08-027 approved this SCE request, and provided budgets to continue the Capacity Bidding and Demand Bidding Programs through 2009 and early 2010. In addition, that decision authorized a budget of $5,703,864 to implement and support the Energy Options Program in 2010 and 2011. In the petition, SCE notes that when it filed A.08-06-001, CAISO had not yet launched its Market Redesign and Technology Upgrade restructuring its wholesale markets, and had not yet fully developed its Proxy Demand Resource product. According to SCE, implementing the Energy Options Program in 2010, given these additional developments, would be difficult and would significantly increase the costs of the program beyond those approved in D.09-08-027. For these reasons, SCE instead requests to continue the Capacity Bidding Program and Demand Bidding Program through 2011.

It is reasonable to approve the SCE request to eliminate the Energy Options Program given the changed circumstances since SCE filed A.08-06-001, with its original program proposal. We expect SCE to investigate the possibility of implementing Energy Options or a similar program during its next demand response program and budget cycle for 2012-2014. In the meantime, we grant the SCE request to modify D.09-08-027 to eliminate this program for 2010 and 2011.