Overview

Brief description

This pilot program is designed to test the viability of a new approach to small commercial 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 small commercial customers in the Southern California Edison 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 chose this program over other small commercial load control program options for the following reasons:

_ Potential for peak demand reduction through control of 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 customer response to energy market demand and price fluctuations.

We direct that SCE implement 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) paragraphs 4, 5, and 6 to "equip commercial buildings with the capacity to automatically control thermostats...", "evaluate installation of local infrastructure," and provide "incentives for load control." This pilot program will accomplish these directives, 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 small commercial customer load to price or system demand signals

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