In December 2014, the Commission issued D. 14-12-024 (PDF, 1.79 MB) which requires Southern California Edison Company, San Diego Gas & Electric Company and Pacific Gas and Electric Company (PG&E) (the IOUs) to design and implement Demand Response Auction Mechanism (DRAM) pilot programs in 2015 (DRAM Phase 1) and 2016 (DRAM Phase 2). The IOUs were ordered to file an advice letter, together with a standard contract, which lays out the parameters of how this DRAM pilot can be effectively put in place and executed. An "open to the public" working group, authorized by Ordering Paragraph 6 of D.14-12-024, actively collaborated on the DRAM pilot design and standard contract language.

The DRAM is a pay-as-bid auction of monthly system Resource Adequacy (RA) associated with a demand response product located in the IOU's service area and where sellers offer directly into the CAISO day-ahead energy market. The IOU only acquires the third party Demand Response Aggregators' (sellers') RA, and has no claim on revenues the winning bidders may receive from the CAISO energy market. PG&E reimburses certain scheduling coordinator related costs for winning bidders. Proposed scheduling coordinator costs for reimbursement were included in the Bidder Offer Sheets.

DRAM bids were evaluated using a bid evaluation template common to the IOUs. At a minimum, PG&E is expected to contract for 10MW of RA, with a least 2MW being attributed to residential customers. Commercial and Residential bids were evaluated separately.

For this first DRAM, the IOUs procured System RA from sellers on a monthly basis. The sellers participated directly in the CAISO wholesale market within the June to December 2016 delivery period of the contract. The current Commission DR requirements to qualify for system RA can be found in D.15-06-063 (PDF, 1 MB) and require the DR resource to offer into the CAISO energy market under the CAISO must-offer obligation for DR.

The DRAM implementation proposal was filed on April 20, 2015 via PG&E Advice Letter 4618-E (PDF, 1.56 MB). This advice letter was later approved, with certain modifications, on July 23rd, 2015 in the Resolution E-4728 (PDF, 770 KB). Modifications to DRAM contracts and related documents in compliance with Resolution E-4728 were submitted on August 24, 2015, with Supplemental Advice Letter 4618-E-A (PDF, 1.45 MB). On September 24, 2015 the Commission approved Supplemental Advice Letter 4618-E-A with this Disposition Letter (PDF, 68 KB).

PG&E's Schedule for DRAM Phase 1




Bidders' Conference for RFO (via webinar)


DRAM RFO Offer package due by 4:00 PM (PPT)


PG&E notifies non-conforming Bidders (Request to "cure")


Bidder cure period ends


PG&E notifies bidders of selection and sends final PA for execution


Advice Letter Filing for executed PAs


Energy Division gives notice of approval or other action


Power advocate instructions and registration information


Important information

All Bidders interested in submitting a bid package into PG&E's DRAM RFO needed to register with Power Advocate before submitting an offer into the RFO. To register at Power Advocate, click on the following link: Power Advocate

Only those bidders that have been accepted through the Power Advocate platform were permitted to bid into this RFO.

We encourage you to register now.


Power advocate instructions

All bid package materials needed to be submitted on the Power Advocate site by the schedule and time indicated above.

Scheduling coordinator request for information

As part of DRAM, the IOUs issued a Request for Information (RFI) from Scheduling Coordinators (SC) open to providing SC services to demand response aggregators. SC information received from this RFI are provided in the "Scheduling Coordinator Request for Information Packets" document in the "Other Information" section of this website.


Scheduling Coordinator Request for Offers (SC RFI).


CAISO bidding information

DRAM winners or "Sellers" providing RA to PG&E will need to register their proxy demand resources (PDR) at the CAISO. An initial step of this process is to input customer location information into the CAISO demand response system. PG&E requires that the Seller obtain customer authority to access historical and ongoing customer specific information which is needed for this CAISO registration process and for energy settlements.

Electric Rule 24 (PDF, 2.08 MB) governs how PG&E interacts with 3rd party demand response providers (DRPs.) The Commission, in D.15-03-042 (PDF, 601 KB), authorized PG&E to put into place certain processes and systems to facilitate a 3rd party DRP's ability to bid PDR into the wholesale market. However, this Decision also establishes process timeframes and volume limits which pertain to the implementation of Rule 24. The DRAM pilot is subject to the provisions of Rule 24 and any limitations authorized by the Commission relative to its implementation.


Other information



Contact information

For information or questions about PG&E's DRAM RFO please email: and the Independent Evaluator, at .


Registration information

You may register to receive email notifications on PG&E's Demand Response Auction Mechanism RFO using the following link: