Overview

Brief description

This pilot program is designed to test the viability of a new approach to residential load control and demand-responsiveness through the use of internet technology and thermostats to affect HVAC energy use. This program is designed to include approximately 5,000 residential customers in the San Diego Gas & Electric service territory, representing an estimated 4 MW in peak demand reduction, to produce savings before the end of 2002. Consumers will be provided with the necessary technology installation and a small incentive for program participation.

Rationale

We prefer this program to other residential load control program options for the following reasons:

_ Potential for peak demand reduction through control of residential and small commercial HVAC appliances

_ Probability of customer acceptance

_ Utilization of internet platform, which ensures likelihood of forward compatibility of technology

_ Data collection ability for measurement and evaluation purposes

_ Ability to test residential customer response to energy market demand and price fluctuations.

SDG&E will be the administrator of this pilot program.

Objectives

The main objective of this program is to fulfill the statutory requirement of AB970 contained in PU Code 399.15(b) paragraph 5. This paragraph requires the PUC to undertake the following activity: "Evaluation of installing local infrastructure to link temperature setback thermostats to real-time price signals."

This pilot program will accomplish this directive, while simultaneously testing other assumptions of interest to the PUC including:

_ Consumer participation and behavior patterns in the program

_ Consumer satisfaction with newer interactive load control technologies

_ Responsiveness of residential customer load to price or system demand signals

_ Ability of such programs to deliver reliable and verifiable energy and demand savings.