Informing Scheduling Coordinators (SCs) about a new Demand Response Auction Mechanism (DRAM) pilot

Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas and Electric Company (SDG&E) are issuing this Request for Information (RFI) to inform Scheduling Coordinators (SCs) about a new Demand Response Auction Mechanism (DRAM) pilot ordered by the California Public Utilities Commission (Commission.) This RFI is intended to collect pertinent information for SCs and make this information readily available to DRAM Request for Offers (RFO) participants scheduled to be issued on September 21, 2015. The RFI information is intended to help facilitate interactions between market players. There are no restrictions placed on the Demand Response Provider (DRP) or Aggregator (Sellers) by the IOUs as to their choice of SC, and the SCs for the DRAM RFO winning bidders are not required to have participated in this RFI.


The DRAM is a Commission approved pilot in which IOUs retain authorized Sellers to obtain IOU system resource adequacy credits by requiring their resources to be bid as Proxy Demand Resources (PDR) into the California Independent System Operator's (CAISO's) wholesale energy market. The pertinent Resolution E-4728 adopting the DRAM requires the IOUs hold this RFI prior to the DRAM RFO to build intelligence on CAISO-certified SC availability and willingness to provide services to DRAM Sellers.


The "informational packets" the SCs are asked to provide in this RFI are intended to frame market intelligence for the DRAM Bidders and reduce the burdens to bidding into the CAISO energy market by potential Sellers. This will allow Sellers to focus on a set of SCs willing to provide the new service and consider SC vendors and their service options early in the process. The scope and requirements of this RFI are more specifically described in Article Two of the RFI Participant Instructions below.


The DRAM RFO will require DRAM bidders to identify and separate their proposed capacity prices from the costs they expect to pay for a prescribed set of SC services. Following the execution and Commission approval of DRAM contracts, the IOUs will reimburse the Sellers for the prescribed set of SC expenses monthly, specified by the Seller in its bid. These expected SC costs will be included in the evaluation of the price, incentivizing the Sellers to seek cost-effective SC service providers.

PG&E's Schedule for SC RFI and DRAM Phase 1

EventDate/Time

PG&E issues Scheduling Coordinator RFI

8/11/15

SC RFI Conference Call*

8/26/15

RFI Packages submitted to PG&E

9/10/15

Target timeframe for issuing DRAM RFO

9/21/15

* At this time the IOU's will not be holding a conference call, pending further questions.



SC RFI documents


Demand Response Auction Mechanism

Details on the Demand Response Auction Mechanism pilot program can be found on PG&E's DRAM website.
Visit Demand Response Auction Mechanism (DRAM)


Contact and registration information

For information or questions about PG&E's DRAM RFO please email DRAMRFO@pge.com.


Please register for the SC RFI or PG&E's Demand Response Auction Mechanism RFO:
Visit Demand Response Auction Mechanism RFO Registration