Demand Response Auction Mechanism Evaluation Workshop

Event Number: 2491 164 3872

Event Password: 2022

Call-in Number: 1-855-282-6330 (US Toll Free)

Access Code: 2491 164 3872

Passcode: 2022

Contact: Eleanor Adachi, (415) 703-2150, Eleanor.Adachi@cpuc.ca.gov

This workshop will be held via Webex. All workshop participants will be muted during the presentation. Presenters will pause for questions at several breakpoints during the presentation. To ask a question, participants may use either the “raise your hand” WebEx button online or the Chat window to comment/ask questions. Call-in users may dial *3 to raise their hand.

Although a quorum of Commissioners, their advisors or other decision-makers may be present, no action will be taken at this event.

Background:

The first evaluation of the Demand Response Auction Mechanism (DRAM) was conducted by the Energy Division and focused on the performance of delivery years 2016 and 2017, as well as solicitation processes for 2016 through 2019. The first evaluation determined that DRAM had been successful in engaging new third-party demand response providers (DRPs) and new customers and that the capacity price offers for resource adequacy were generally competitive. However, the Energy Division found that bid prices for DRAM resources in the wholesale energy market were generally not competitive as well as inconclusive evidence of their performance and reliability. The final report was released in January 2019, and based on the findings of the report, the Commission approved the continuation of DRAM through delivery year 2023 in Decision 19-07-009. That Decision also authorized the Utilities, with oversight from the Energy Division, to hire an independent consultant to conduct a second evaluation of DRAM, which would include performance in delivery years 2018 through 2021, as well as the solicitation process for delivery years 2019, 2020 and 2021. Finally, the Decision established that as part of the 2023-2027 demand response application proceeding, the Commission would determine whether the results of the second evaluation were sufficient to permanently adopt the Auction Mechanism and expand its role in meeting the state’s energy needs and environmental objectives.

The second evaluation was conducted by Nexant (now a part of Resource Innovations) in collaboration with Gridwell Consulting (Nexant Team) and the final report was released on June 24, 2022. In addition, the Utilities submitted their applications for 2023-2027 demand response activities and budgets in May 2022, and the proceedings were consolidated under A.22-05-002 et. al. by an ALJ Ruling on May 25, 2022.

Purpose of the Meeting:

In this workshop, the Nexant Team will present its findings and recommendations from the Demand Response Auction Mechanism Evaluation Report for 2018 through 2021 and answer participants’ questions about the Report.