Integrated Distributed Energy Resources

Since 2007, the Commission has sought to integrate demand side energy solutions and technologies through utility programs offerings. Decision (D.07-10-032) directs that utilities "Integrate customer demand-side programs, such as energy efficiency, self-generation, advanced metering, and demand response, in a coherent and efficient manner." 

The integration of demand side programs and technologies was expected to achieve maximum savings while avoiding duplicative efforts and reduce transaction costs and customer confusion. In short, IDER is a strategy that seeks to provide comprehensive building energy management solutions via the integration of technologies, programs, and strategies to facilitate customer behavior changes that reduce load and grid inefficiencies. 

Despite a long history of CPUC guidance, statewide IDER efforts have had limited success due to a number of factors identified in evaluation efforts. The IDER Proceeding (R.14-10-003) seeks to address some of these lessons learned and barriers.

On December 15, 2016, the Commission adopted D16.-12-036, which approved a competitive solicitation framework and a utility regulatory incentive mechanism pilot which will facilitate on a pilot basis the deployment of DERs to displace or defer the need for capital expenditures on traditional distribution infrastructure.  In order to test the incentive mechanism, the Utilities arae encouraged to select up to three additional projects for piloting.  For the purposes of the Incentive Pilot, the Commission adopted a 4% pre-tax incentive which will be applied to the annual payment for the DERs that are procured as an alternative to traditional distribution project investments.  This decision required the utilities to form a Distribution Planning Advisory Group (DPAG) who will be advising them on selection of distribution deferral opportunities and providing input on the development of competitive solicitation for DERs.  Members of the DPAG will include market participants and one Independent Professional Engineer who is tasked with evaluating distribution plans for the Incentive Pilot.

The decision also re-established the Competitive Solicitation Framework Working Group who along with the CPUC Energy division and an Industry Consultant is tasked with developing a technology-neutral pro forma contract for future use


IDER Related History and Current Activity


IDER Related Publications and Examples (In-State and Out-of-State)


IDER Proceeding Contact

Chari Worster:


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