7. Comments on Proposed Decision

SCE's Petition for Modification, as amended in its August 16, 2010, filing, is uncontested and this decision grants the relief requested. Accordingly, as provided by Rule 14.6(c)(2) of our Rules of Practice and Procedure, we waive the otherwise applicable 30-day comment period for this decision.

1. D.09-08-027 approved a request by SCE to discontinue the Capacity Bidding and Demand Bidding Programs in early 2010, and transition participants in these programs into a new Energy Options Program.

2. D.09-08-027 provided budgets to continue the Capacity Bidding and Demand Bidding Programs through 2009 and early 2010, until the Energy Options Program was to be implemented.

3. When SCE proposed the Energy Options Program in A.08-06-001, CAISO had not yet launched its new market structure, and had not yet developed its Proxy Demand Resource product.

4. The final rules for the CAISO's Proxy Demand Resource tariff were not available at the time SCE submitted A.08-06-001.

5. Understanding of the operational requirements for Proxy Demand Resource has changed greatly since the adoption of D.09-08-027.

6. D.09-08-027 emphasizes the importance of participation in Proxy Demand Resource by utility demand response activities.

7. D.09-08-027 approved funding for computer system support and related activities, including $2,535,000 for a new Demand Response Portal and $1,000,000 for tracking customer locations in the SCE customer service system.

8. Some of the functionality originally envisioned for the Demand Response Portal can be incorporated into other SCE computer systems to support Proxy Demand Resource activities.

9. Customer location mapping and tracking activities approved in D.09-08-027 can support Proxy Demand Resource activities.

1. 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.

2. Given the elimination of Energy Options, it is reasonable to continue the Capacity Bidding Program and Demand Bidding Program, and to ensure that those programs have budgets adequate to support operation through 2011.

3. Given changes in circumstances, including changes in understanding of Proxy Demand Resource participation requirements, it is reasonable to reduce funding for the Demand Response Portal and customer tracking and mapping activities.

4. It is reasonable to redirect funding from the Demand Response Portal and customer tracking and mapping activities to support computer system changes that will facilitate participation in Proxy Demand Resource activities.

ORDER

IT IS ORDERED that:

1. The request of Southern California Edison Company to eliminate its Energy Options Program authorized in Decision 09-08-027 is approved.

2. The request of Southern California Edison Company to shift $2,026,028 approved in Decision 09-08-027 for its Energy Options Program to its Capacity Bidding Program is approved.

3. The request of Southern California Edison Company to shift $3,558,203 approved in Decision 09-08-027 for its Energy Options Program to its Demand Bidding Program is approved.

4. The request of Southern California Edison Company to shift $3,525,000 authorized in Decision 09-08-027 for its Demand Response Portal and customer support computer system activities to system development activities in support of Proxy Demand Resource is approved.

5. Applications (A.) 08-06-001, A.08-06-002 and A.08-06-003 are closed.

This order is effective today.

Dated December 16, 2010, at San Francisco, California.

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