2015 Resource Adequacy (RA)
Phase 3: Demand Response Issues

 

Background

On January 6, 2015, the CPUC issued a Scoping Memo in the Resource Adequacy proceeding stating that a Phase 3 may commence to consider Demand Response issues, if warranted. Demand Response programs are designed to reduce the load on the grid when there is a high demand for electricity. Customer participants in Demand Response programs reduce their use when called upon, which can reduce the demand for new power plants and help prevent outages. The Resource Adequacy program modifies the projected electric demand based on estimates of the potential output of Demand Response programs.

In December 2014, the CPUC issued a Decision approving the formation of a Demand Response working group to set the foundation for valuing Demand Response in Resource Adequacy. A stakeholder Demand Response Valuation Working Group is examining Demand Response values for RA and is expected to file a compliance report with the CPUC on May 1, 2015. Depending on the outcome of that compliance report, a Phase 3 of the current Resource Adequacy proceeding may be initiated to modify the current Resource Adequacy capacity credit for Demand Response programs.

 

ORA Position

ORA supports the inclusion of Demand Response in the Resource Adequacy program in order to reduce electric demand and assist in achieving California’s environmental goals. It is important to correctly value the effectiveness of the Demand Response programs to accurately calculate the grid impact of these programs.  

 

Proceeding Docket

See the Proceeding docket.

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Other Resources

CPUC Demand Response Page