FAQ - Demand Response Providers (DRPs)/Aggregators

Q: What is a Demand Response Provider (DRP) or aggregator?

A: A DRP/aggregator is a commercial entity that provides demand response programs and services such as assisting retail customers participate in the wholesale energy market (operated by California Independent System Operator, aka CAISO) and with strategies or technology to reduce their electric consumption during times of grid needs in exchange for compensation.

Some entities focus entirely on working with customers to reduce their electric consumption and paying incentives for their reductions. Such entities are often referred to as “aggregators” and will have commercial arrangements with other entities that specialize in interfacing with the wholesale market.

The wholesale-facing entities are called Demand Response Providers (DRPs). The investor-owned utilities (IOUs) also act as DRPs for their own DR programs, in competition with programs offered by independent, third-party DRPs.

Some entities will handle both retail and wholesale transactions. The bidding of retail customers’ load reductions in wholesale markets is often referred to as “Direct Participation”.

Q: Is there a difference between participating in an independent, third-party DRP/aggregator program and participating in the utilities’ DR programs?

A: The general concept in either scenario is basically the same: electric retail customers will be called upon by the utility, acting as the DRP, or the independent, third-party DRP to reduce their electric demand on certain days within certain hour(s), and in exchange for that reduction, the customer can receive a financial incentive. The terms and conditions for participation and incentives will vary, and electric retail customers should fully inform themselves of those details before they enroll in any market-integrated, supply-side DR program.

Please send your updated contact information to CPUC's Energy Division by filling out the Regulatory Contact Info Update Request Form.

List of third-party DRPs/aggregators registered with CPUC:

Q: Does the CPUC have rules for third-party DRPs/aggregators?

A: Yes. The rules for DRPs/aggregators cover a variety of topics many of which are described in more detail below. One of the main rules is that DRPs/aggregators that serve utility bundled customers must register with the CPUC.

Q: Where can I find the third-party DRP/aggregator rules?

A: These rules are referenced as Rule 24 in PG&E’s and SCE’s tariffs and as Rule 32 in SDG&E’s tariffs.

• PG&E’s Rule 24

• SCE’s Rule 24

• SDG&E’s Rule 32

Q: Where can I find a list of third-party DRPs/aggregators registered with the CPUC?

A: All DRPs/aggregators enrolling bundled utility customers must have a valid registration with the CPUC. Customers should confirm a DRP/aggregator is properly registered with the CPUC prior to signing a contract for DR services from a DRP/aggregator. A list of registered DRPs/aggregators can be found in the table above.  

 Q: Can a customer enroll with a third-party DRP/aggregator and a utility DR program?

A: Generally, no. A customer typically may not enroll with a DRP/aggregator while also enrolling in a utility DR program. There are some exceptions. The DRP/aggregator or utility would inform the customer if it cannot proceed with a dual enrollment.

Q: What are the rules to allow third-party DRP/aggregator access to the customer's smart meter usage data?

A: Accessing a customer’s smart meter usage data is a critical requirement for direct participation in any DR program. Third-party DRPs/aggregators must obtain customer authorization in order to access the customer’s electric usage data collected and stored by the utility and other personal information related to the customer’s service account maintained by the utility. The utility does not need specific consent from the customer to access the customer's data.

The customer can authorize a third-party DRP/aggregator to obtain the necessary data from the utility through the utility’s Customer Information Service Request-Demand Response Provider form (aka CISR-DRP form). The form can be accessed at the following links:

• PG&E
• SCE
• SDG&E

The customer may obtain the CISR-DRP form from its utility or third-party DRP/aggregator. The CISR-DRP form also allows the customer to revoke, at any time, any previously granted authorization, subject to any early termination provisions specified in the contract between the DRP/aggregator and customer.

The CISR-DRP form provides the customer with options to authorize its DRP/aggregator to access to meter data, including for a specified period of time or indefinitely, until revoked by the customer. If the customer makes no election, its utility will assume that the customer authorization is for an indefinite period of time. With customer permission, its DRP/aggregator may also act as its agent to automatically revoke data transmittal on the customer’s behalf upon disenrollment from DR Service.

It is important to know that when discontinuing DR Service with a DRP/aggregator, it will be the customer’s responsibility to REVOKE authorization to STOP the transmittal of its energy usage data and other previously authorized personal information from its utility to the DRP/aggregator.

Q: What are CPUC policies on customer privacy?

A: Once a customer authorizes disclosure of its electricity usage data and other personal information to a DRP/aggregator, the DRP/aggregator is required to maintain the privacy and security of that data, subject to the Commission’s privacy policies. The CPUC’s privacy policies can be found in Decisions (D.) 11-07-056. The utility tariffs based on this decision can be found here:

• PG&E Rule 25
• SCE Rule 25
• SDG&E Rule 25

Q: What if I have a complaint against a third-party DRP/aggregator or my utility? What can I do?

A: Customers have the option to file a complaint or action at the appropriate civil court or agency. They may also file a formal complaint, informal complaint, or seek an alternative dispute resolution (ADR) at the CPUC regarding the DR Services.

For up-to-date information on filing an informal complaint, please visit the Consumer Affairs Branch.

Formal Complaint: 

Through the Formal Complaint procedure, the Commission can order the DRP to take corrective action, including reimbursements for non-payment of performance. It is important to note, however, that the Commission is not allowed to award damages for such things as personal injury, property damage, emotional distress, or loss of wages or profits. To request compensation for damages, the customer must file a claim in a civil court.

Privacy Notice:

Whether or not your Formal Complaint is filed in paper form or electronically, Formal Complaints filed with the Commission become a public record and may be posted on the CPUC’s website. Therefore, any information you provide in the Formal Complaint, including, but not limited to, your name, address, city, state, zip code, telephone number, email address and the facts of your case may be available on-line for later public viewing.

A formal complaint must be filed at the Commission. If you need help with or have any questions about filing your formal complaint, contact CPUC’s Public Advisors Office.

The Public Advisor
505 Van Ness Avenue
San Francisco, CA 94102
866-849-8390 (toll free)
415-703-2074
public.advisor@cpuc.ca.gov

For detailed instructions on the filing of an informal or formal complaint can be found here, file a complaint.  

Q: What is Alternative Dispute Resolution Program (ADR)?

ADR commonly describes processes, such as facilitation, negotiation, mediation, and early neutral evaluation to help disputants resolve a conflict without a formal decision by a court or agency. When successful, ADR may achieve results that a court or agency could not order, give the parties more ownership in the result, and reduce litigation and agency costs.

The Administrative Law Judge (ALJ) Division administers the ADR program and trained, experienced ALJs serve as neutrals in the program.

ADR can occur at any time during a formal proceeding. The early use of ADR saves parties time and money and avoids unnecessary escalation of a dispute. On occasion, ADR may be available to help resolve disputes that are still informal and have yet to be filed as formal complaints. Most ADR sessions are completed in ½ to 2 days. Some ADR sessions continue over several weeks, with the parties meeting for a day or two at a time.

For additional information, visit our ADR webpage Alternative Dispute Resolution Program. 

Useful Contact Information 

California Public Utilities Commission

Consumer Affairs Branch Hotline
505 Van Ness Avenue
San Francisco, CA 94102
Call 800-649-7570 (toll free) or 415-703-4973

Energy Division
drp_registration@cpuc.ca.gov