5. Assignment of Proceeding

Mark J. Ferron is the assigned Commissioner and David M. Gamson is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. To the extent possible, RA credit rules related to demand response programs should be harmonized with rules related to conventional RA resources so demand response resources can be fully integrated with the CAISO market.

2. The proposed rule that retail demand response resources must be dispatchable locally in order to receive local RA credits is necessary and appropriate to further align the requirements for demand response performance with the RA rules for conventional resources.

3. Dynamic pricing programs cannot be dispatched locally at this time.

4. It is reasonable to create a new MCC bucket for demand response resources starting in 2013.

5. Parties have not shown that registered capacity value is a more accurate and transparent method than the current load impact protocols for measuring the Qualifying Capacity of demand response resources.

6. Allowing the use of fossil-fuel back-up generation as part of a demand response program for RA purposes is not consistent with the Loading Order of the Energy Action Plan.

Conclusions of Law

1. Retail demand response resources should be required to be dispatchable locally in order to receive local RA credits, with the exception of dynamic pricing programs.

2. A new MCC bucket should be created for demand response resources starting 2013.

3. The load impact protocols for demand response resources from D.10-06-036 should continue.

4. There is not sufficient information in the record to adopt specific RA rules regarding fossil-fuel back-up generation.

5. It is reasonable to adopt as a policy statement that fossil-fuel emergency back-up generation resources should not be allowed as part of a demand response program for RA purposes, subject to rules adopted in future RA proceedings.

ORDER

IT IS ORDERED that:

1. The Commission's Resource Adequacy program, as adopted in Decision 11-06-022, is modified as follows:

a. Retail demand response resources are required to be dispatchable locally in order to receive local Resource Adequacy credits starting in the 2013 Resource Adequacy year, except for dynamic pricing programs.

b. A new Maximum Cumulative Capacity bucket is created for demand response resources, subject to the parameters of the bucket to be determined by the Commission for the 2013 Resource Adequacy year.

2. In consultation with Energy Division and coordination with the California Independent System Operator, Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company shall develop detailed mapping of the sub Load Aggregation Points with respect to the Local Capacity Areas in their service territories.

3. In consultation with Energy Division, Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company shall identify data on how customers intend to use back-up generation and identify the amount of demand response provided by back-up generation when enrolling new customers in, or renewing, demand response programs.

4. Rulemaking 09-10-032 is closed.

This order is effective today.

Dated October 6, 2011, at Los Angeles, California.

I abstain.

Previous PageTop Of PageGo To First Page