PG&E DR Programs
The ADR Program is an enablement incentive program targeted towards providing an incentive to cover the cost of equipment, controls, or programming to automate the ability of a facility to shed electric load in a demand response event. Therefore, the ADR Program wants to ensure that once a facility has the equipment they do indeed use it during a demand response event.
* To accomplish this, all customers that receive an ADR incentive must also enroll in an eligible PG&E Demand Response Program for three years and are expected to participate in all DR events called by PG&E.
Aggregators are responsible for ensuring that their ADR customers are informed and understand the 36 month minimum DR enrollment requirement, by notifying their ADR customers in writing when their ADR project is approved.
PG&E’s demand response programs offer incentives for business owners who curtail their facility’s energy use during times of peak demand. These ongoing incentives are in addition to the one time ADR equipment incentives. Of the many DR programs offered by PG&E, there are five that are eligible in combination with the ADR incentive: Peak Day Pricing Plan, Capacity Bidding Program, Demand Response Auction Mechanism, and two PG&E DR Pilots (Supply Side Pilot and Excess Supply Pilot).
Peak Day Pricing (PDP)
Customers who participate in Peak Day Pricing will experience between 9 and 15 Peak Day Pricing Event Days annually in addition to time-of-use pricing. On Peak Day Pricing Event Days, a surcharge is added to a portion of the peak period (i.e. from 2 p.m. to 6 p.m.) which customers will pay in addition to their regular peak electric rate.
Peak Day Pricing customers also receive credits for electricity use between May 1 and October 31. Customers who conserve electricity during high demand hours and Peak Day Pricing Event hours can save money on their overall electric bills. To sign up, contact your account representative at PG&E directly. Your ADR Program team is also available to assist.
For more information on the Peak Day Pricing Plan including charges and credits please visit PG&E’s PDP website.
Capacity Bidding Program (CBP)
Receive a monthly incentive to reduce your energy use to a pre-determined amount once an electric-resource generation facility reaches or exceeds heat rates of 15,000 Btu (British thermal units) per kWh. Load reduction commitment is on a month-by-month basis, with nominations made 5 days prior to the beginning of each month. To sign up, customers must enroll with (or as) a third-party aggregator to join the Capacity Bidding Program. An aggregator is an entity appointed by a customer, to act on behalf of the customer with respect to all aspects of CBP, including receipt of notification of an event, receipt of incentive payments and payment of penalties.
For more information on the Capacity Bidding Program as well as a list of eligible aggregators please visit PG&E’s CBP website.
Demand Response Providers (DRPs)
Demand Response Auction Mechanism (DRAM) Pilot
In December 2014, the Commission issued D. 14-12-024 which requires Southern California Edison Company, San Diego Gas & Electric Company and Pacific Gas and Electric Company (PG&E) (collectively, the IOUs) to design and implement Demand Response Auction Mechanism (DRAM) pilot programs in 2015 for 2016 capacity (DRAM I, or 2015 DRAM) and in 2016 for 2017 capacity (DRAM II, or 2017 DRAM). The 2016 DRAM launched on September 28, 2015, and the 2017 DRAM is expected to launch on March 3, 2016.
The 2017 DRAM is a pay-as-bid auction where PG&E is seeking monthly demand response (DR) system capacity, local capacity, and flexible capacity for January – December 2017. Sellers will bid aggregated demand response directly into the CAISO day-ahead energy market, and PG&E will acquire the capacity, but will have no claim on revenues the winning bidders may receive from the energy market. PG&E will reimburse certain scheduling coordinator related costs for winning bidders. The current Commission DR requirements to qualify for Resource Adequacy (RA) can be found in D.15-06-063 and require the DR resource to offer into the CAISO energy market under the CAISO must-offer obligation for DR.
For more information on the Demand Response Auction Mechanism please visit PG&E’s DRAM website.