Demand Response

Demand Response is a set of actions taken to reduce electric loads during times of emergencies, extremely high energy prices, or grid congestion, in order to: 

  • Balance supply and demand such that demand does not exceed supply - or  
  • Alleviate rising electric supply costs 

See Demand Response History for more background. 


Rulemaking for Future Demand Response Policies

In September 2013, the CPUC opened a Rulemaking for the purpose of enhancing the role of Demand Response in meeting the state’s resource planning needs. The CPUC divided the Rulemaking into four phases: 


Phase 1: 2015-2016 Demand Response Programs

The CPUC authorized bridge-funding for 2015-2016 Demand Response portfolios. 


Phase 2: Foundational Issues

The CPUC determined it would bifurcate Demand Response into individual Supply-side and Load Modifying program strategies, and also address Demand Response Auction Mechanism (DRAM), cost allocation/recovery, and back-up generation. 


Phase 3: Program Design

The CPUC will review Demand Response Goals related to Resource Adequacy, CAISO Market Integration Costs, supply and load modifying resources, and future DR program budgets. 


Phase 4: Demand Response Roadmap

Not Yet Opened.

The CPUC will develop a plan to coordinate with other CPUC proceedings and state on Demand Response issues, to commence after Phase 3 issues are resolved.   


Implementation of Direct Participation in CAISO Markets 

Sets rules for implementing the direct participation of Demand Response providers in the CAISO energy markets.  



Demand Response Archives

2012-2014 Demand Response Programs 

Utility managed programs that reduce electric loads during times of emergencies or grid congestion, in order to: 1) Balance supply and demand such that demand does not exceed supply or 2) Alleviate rising electric supply costs. Current budget: approximately $450 million.