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, the following are eligible for the ADR incentive: Peak Day Pricing Plan, Capacity Bidding ProgramDemand Response Auction Mechanism, and two PG&E DR Pilots (Supply Side Pilot and Excess Supply Pilot).

Business Programs

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 incentives 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.

Aggregator Programs

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 requiring Pacific Gas and Electric Company (PG&E), Southern California Edison Company, and San Diego Gas & Electric Company to design and implement Demand Response Auction Mechanism (DRAM) pilot programs. The 2019 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 2019.

DRAM Sellers bid aggregated Proxy Demand Resources (PDR) and Reliability Demand Response Resources (RDRR) into the CAISO day-ahead energy market. NOTE: ADR customers must enroll as a PDR product with the DRAM Seller, as the RDRR product in DRAM is not eligible for ADR Program incentives. 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.

For more information on the Demand Response Auction Mechanism please visit PG&E’s DRAM website.