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Demand Response and Advanced Metering

What it Does: This proceeding (a multi-agency effort that involves the participation of the California Energy Commission) develops demand response programs and dynamic pricing tariffs as a resource to enhance electric system reliability, reduce power purchase and individual consumer costs, and protect the environment. Through the proceeding, three Working Groups were formed that focused on: (1) overall policy issues; (2) large customer (>200 kW in monthly demand) issues; and (3) small commercial/residential customer issues. The proceeding authorized the State Pricing Pilot (SPP) research project, a two-year pricing research project designed to estimate the demand response and price elasticities for a representative sample of residential and small commercial customers (approximately 2,000 customers) on time differentiated rates (TOU and CPP rates), information, and/or technology treatments. The SPP will also evaluate customers' preferences to different tariff attributes, and market shares for specific TOU and dynamic rates, control technology, and information treatments under alternative deployment strategies. The SPP results will provide key inputs for the Advanced Metering Infrastructure (AMI) business case analysis and rate design options. The proceeding also reviews the utilities' applications for the implementation of an Advanced Metering Infrastructure (AMI) and associated recovery and proposed dynamic pricing tariffs.   

Last Modified: 11/8/2007