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California Demand Response Programs: Achieving 5% Reduction Through Innovative Solutions

This document outlines California's Demand Response Programs aimed at achieving a 5% reduction in peak energy demand. It includes various strategies such as Critical Peak Pricing (CPP), Demand Bidding Programs, and Direct Load Control, all designed to incentivize energy conservation during peak periods. The programs utilize third-party management and offer financial incentives to residential and commercial participants. Key components include discounted rates, automatic controls for energy-consuming devices, and innovative partnerships focused on clean backup generation and community awareness.

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California Demand Response Programs: Achieving 5% Reduction Through Innovative Solutions

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  1. 2005 Demand Response ProgramsBackup Material

  2. Day-Ahead Programs CPUC Goal – 5% 2007 • Critical Peak Pricing (CPP) • Discounted rates during non-CPP event periods • Higher rates during CPP event periods • California Power Authority - Demand Reserves Partnership • Capacity + Energy payments for demand response • Managed through third-parties • Demand Bidding Program (DBP) • Financial incentives ($/kWh) for demand response • C/I 20/20 Peak Day • 20% bill discount for 20% load reduction during peak days

  3. Day-Of Programs • AL-TOU-CP • Discounted rates during non-AL-TOU-CP event hours • Higher rates during AL-TOU-CP event hours • 15-minute notification • Direct Load Control – Comverge • Automatic control of A/C, water heaters and/or pool pumps • Clean Back-up Generation – Celerity • Utilizes retrofitted or clean-burning back-up generators • Base Interruptible Program (BIP) • Capacity payments for committed load reduction • Penalties may apply • 15-minute notification • Residential Smart Thermostat • Automatically raises thermostat during critical events • Statewide Pricing Pilot (SPP) • Pilot to determine price elasticity • Rolling Blackout Reduction Program (RBRP) • Utilizes back-up generation during CAISO Stage 3 Emergencies

  4. Demand Bidding Program Critical Peak Pricing (Proposed) California Power Authority DRP C/I Peak Day 20/20 Residential & Small Commercial 20/20 Technical Assistance / Technology Incentives 1 MW 25 MW 5 MW 15 MW 7 MW 15 MW 68 MW Day-Ahead Programs

  5. Day-Of Programs • Commercial/Industrial : ~47 MW • AL-TOU-CP 2 MW • Clean Back Up Generation Program – Celerity 10MW • Direct Load Control – Comverge 7 MW • Rolling Blackout Reduction Program 24MW • Base Interruptible Program 6 MW • Critical Peak Priding – Emergency (Proposed) 5 MW • Residential: ~4 MW + Conservation Cushion • Direct Load Control – Comverge 2 MW • Smart Thermostat Program 2 MW • Community Awareness Campaign • Flex Your Power NOW! • Emerging Markets • Community Partnerships • Water District Partnership – Analysis

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