energia.pr.gov · 4 preliminary draft – for discussion purposes only regulation for demand...

GOVERNMENTOFPUERTORICOPublicServiceRegulatoryBoardPuertoRicoEnergyBureau

PRELIMINARYDRAFT–FORDISCUSSIONPURPOSESONLY

REGULATIONFORDEMANDRESPONSE

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TABLEOFCONTENTS

ARTICLE1. GENERALPROVISIONS...........................................................................................................4

Section1.01 Title...........................................................................................................................................4 Section1.02 LegalBasis..............................................................................................................................4 Section1.03 PurposeandExecutiveSummary................................................................................4 Section1.04 Applicability..........................................................................................................................4 Section1.05 Interpretation.......................................................................................................................5 Section1.06 ProvisionsofOtherRegulations...................................................................................5 Section1.07 UnforeseenProceedings..................................................................................................5 Section1.08 DatesandTimePeriods...................................................................................................5 Section1.09 Definitions..............................................................................................................................5 Section1.10 ControllingVersion............................................................................................................8 Section1.11 Severability............................................................................................................................8 Section1.12 Forms.......................................................................................................................................9 Section1.13 ModeofSubmission...........................................................................................................9 Section1.14 EffectofSubmission..........................................................................................................9 Section1.15 ConfidentialInformation.................................................................................................9 Section1.16 Validity.................................................................................................................................10 Section1.17 CompliancewithOtherApplicableLegalRequirements................................10

ARTICLE2. DEMANDRESPONSESERVICES.......................................................................................10

Section2.01 DemandResponseRoles...............................................................................................10 Section2.02 CertificationofDemandResponseAggregators.................................................11 Section2.03 CustomerParticipation.................................................................................................12 Section2.04 DispatchingDemandResponseResources...........................................................14

ARTICLE3. DEMANDRESPONSEPROGRAMSANDPLANS.........................................................15

Section3.01 DemandResponsePrograms......................................................................................15 Section3.02 DemandResponseProgramsDuringEmergencySituations........................16 Section3.03 DemandResponsePlans...............................................................................................17

ARTICLE4. COSTEFFECTIVENESS.........................................................................................................20

Section4.01 InterimCostBenefitTest..............................................................................................20 Section4.02 PuertoRicoTest...............................................................................................................21

ARTICLE5. REPORTING,MEASUREMENT,EVALUATION,ANDVERIFICATION...............22

Section5.01 Reporting.............................................................................................................................22 Section5.02 MeasurementandVerification...................................................................................22

ARTICLE6. PRIVACY,CUSTOMERDATA,ANDCOMPLAINTS....................................................23

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Section6.01 CustomerInformation...................................................................................................23 Section6.02 SharingCustomerUsageData....................................................................................24 Section6.03 ComplaintProcedure.....................................................................................................26

ARTICLE7. RATEDESIGN...........................................................................................................................26

Section7.01 RateDesigns.......................................................................................................................26

ARTICLE8. RESOURCEANDGRIDPLANNING..................................................................................27

Section8.01 ResponsibilitiesofPREPA............................................................................................27

ARTICLE9. RECONSIDERATIONANDJUDICIALREVIEW............................................................28

Section9.01 Reconsideration................................................................................................................28 Section9.02 JudicialReview..................................................................................................................28

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REGULATIONFORDEMANDRESPONSE

ARTICLE1. GENERALPROVISIONS

Section1.01 Title.

ThisRegulationshallbeknownastheRegulationforDemandResponse.

Section1.02 LegalBasis.

ThisRegulationisadoptedpursuanttotheprovisionsofAct57-2014,asamended,knownas thePuerto Rico Energy Transformation and RELIEF Act (“Act 57-2014”); Act 17-2019,known as thePuerto Rico Energy Public Policy Act (“Act 17-2019”); andAct 38-2017, asamended,knownastheUniformAdministrativeProcedureActoftheGovernmentofPuertoRico (“LPAU”, for its Spanish acronym). Specifically, Section 6.29A of Act 57-2014, asamendedbyAct 17-2019, requires theEnergyBureau todevelop guidelines for demandresponseprogramsandrequireselectricpowerservicecompaniestosubmitproposedplansondemandresponseinaccordancewiththeestablishedguidelines.

Section1.03 PurposeandExecutiveSummary.

Demandresponsehasasignificantroletoplayinrebuildingastrongerenergysystemthatisresponsivetocustomers’needs.Thedevelopmentofdemandresponseprogramscanhelpreduce the cost of capacity, energy, and other energy services for all customers whileincreasing system flexibility and allowing for better integration of renewable resources.Customers participating in demand response programs will benefit through havingopportunitiestoreducetheirenergycostsbybettermanagingtheirusage.

Section1.04 Applicability.

ThisRegulationshallapplytothefollowing:

A) PREPA,itssuccessorandtheoperatoroftheTransmissionandDistributionSystem;

B) All Independent Power Producers engaged in Wheeling, as well as IndependentPowerProducersthatintendtoengageinWheeling;

C) EnergyCooperativesasdefinedinRegulationNo.9117.1

D) AllDemandResponseAggregatorsthatofferdemandresponseservicetocustomersandparticipateindemandresponseprogramsofferedbyPREPA,itssuccessorortheoperator of the Transmission and Distribution System, aswell as companies that

1RegulationonEnergyCooperativesinPuertoRico.

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intendtooperateasDemandResponseAggregatorsinPuertoRico.

Section1.05 Interpretation.

ThisRegulationshallbeinterpretedinawaythatpromotesthehighestpublicgoodandtheprotectionoftheinterestsoftheresidentsofPuertoRico,andinsuchawaythatproceedingsarecarriedoutrapidly,justly,andeconomically.

Section1.06 ProvisionsofOtherRegulations.

The provisions of this Regulation may be supplemented by the provisions of otherregulationsofthePuertoRicoEnergyBureauthatarecompatiblewiththeprovisionsofthisRegulation.

Section1.07 UnforeseenProceedings.

WhenaspecificproceedinghasnotbeenplannedforinthisRegulation,theEnergyBureaumayattendtoitinanywaythatisconsistentwithAct57-2014.

Section1.08 DatesandTimePeriods.

In computing any time period established in this Regulation, or by order of the EnergyBureau,thedayoftheoccurrenceoftheact,event,ornoncompliancethattriggerstheperiodshallnotbecounted,andtheestablishedperiodshallbegintoelapseonthefollowingday.Wheneveraduedate fallsonaSaturday,Sunday,or legalholiday, saidduedateshallbeextendeduntilthenextworkday.

Section1.09 Definitions.

A) ThesedefinitionsaretobeusedforthisRegulationandarenotintendedtomodifythedefinitionsusedinanyotherEnergyBureauregulationororder.

B) For the purposes of this Regulation, the following terms will have the meaningestablishedbelow,exceptwhenthecontextorthecontentofanyprovisionclearlyindicatessomethingelse:

1) “AnnualDemandResponsePlan”or“AnnualDRPlan”meansaplanfiledbyaDRProgramProviderregardingitsplansforprogramsandinitiativesinthecomingyear.TheAnnualDRPlanincludesandidentifiesanychangesfromtheapprovedThree-YearDRPlanasapplicable.

2) “AnnualReport”meansareportfiledannuallybyaDRProgramProviderthatincludesinformationregardingtheprogramsimplementedintheimmediatelyprecedingyearandtheimpactsofthoseprograms.

3) “Demand Response Aggregator” or “DR Aggregator” means any companyauthorizedtoactasaninterfacepartybetweenPREPAandend-usecustomerstodeliverdemandresponseresourcestoPREPA,itssuccessorortheoperator

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of the Transmission and Distribution System. DR Aggregators are ElectricPowerServiceCompanies.

4) “Customer”meansanyPersonwhoreceivesElectricServices.

5) “CustomerClass”meanstheclassificationofacustomer inaccordancewithPREPA’stariffprovisionsthatdefineapplicabilityandrates.

6) “Demand Response” or “DR” means changes in electric usage by end-usecustomersfromtheirnormalconsumptionpatternsinresponsetochangesinthepriceofelectricityovertime,ortoincentivepaymentsdesignedtoinducelower electricity use during periods when system costs increase or whensystemreliabilityisjeopardized.

7) “DemandResponseProgramProvider”or“DRProgramProvider”meansanyElectricPowerServiceCompany thatoffersdemandresponseservice to itscustomers. PREPA, its successor, the operator of the Transmission andDistributionSystem,andallDRAggregatorsareDemandResponseProgramProviders.

8) “Distributed Energy Resource” means Distributed Generation, EnergyStorage,Microgrids,oranyotherresource,includingbutnotlimitedtoenergyefficiencyordemandresponse, that isconnectedto thedistributionsystemandthatassistsinmeetingatleastoneCustomer’selectricalload.

9) “DistributedGeneration”meansanelectricpowergenerationfacilityinPuertoRicoconnectedtothedistributionsystemandproducingpowerforself-supplyorsale.

10) “ElectricPowerGrid”meanstheelectricpowertransmissionanddistributionsystemofPuertoRico.

11) "ElectricPowerServiceCompany”or”EPSC”meansanynaturalor juridicalpersonorentity,includingenergycooperatives,engagedintherenderingofenergygeneration,transmission,anddistributionservices,billing,wheeling,gridservices,energystorage,theresaleofelectricpower,aswellasanyotherelectricpowerserviceasdefinedbytheEnergyBureau.

12) “EmergencySituation”referstoeventssuchasblackoutsforperiodslongerthan 24 hours or prolonged interruptions of electric service caused by anatmosphericphenomenon,aswellasanyothereventthathasbeendeclaredanemergencysituationbytheGovernorofPuertoRico,throughanExecutiveOrder.

13) “Energy Bureau” means the Puerto Rico Energy Bureau, a specializedindependent entity in charge of regulating, supervising, and enforcing theenergypublicpolicyoftheGovernmentofPuertoRico,createdbyAct57-2014

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and renamed and reorganized by virtue of the Reorganization Plan of thePuerto Rico Public Service Regulatory Board and Act 211-2018, formerlyknownasthePuertoRicoEnergyCommission.

14) “EnergyCooperative”meansacooperativeorganizedinaccordancewithAct258-2018;withthepurposeofsatisfyingtheindividualandcommonneedsofelectric energy services of itsmembers and/or their communities, throughelectricpowergeneration,transmission,anddistribution,inaccordancewithEnergyBureauRegulations,includingEnergyBureauRegulationNo.9117.

15) “Energy Storage” means any resource that is capable of receiving electricenergy from theElectric PowerGrid or any other generation resource andstoringitforlaterinjectionofelectricitybacktotheElectricPowerGridortoserveanyload.

16) “IndependentPowerProducer”or“IPP”meansanElectricPowerGenerationCompanythatdoesnothaveaProviderofLastResortobligation.

17) “Meter” means the equipment used to measure consumption and/orgeneration of energy at the point of connection between an individualCustomerandthedistributionsystemaswellasassociatedcommunicationsandcontrolcapabilities.

18) “Microgrid”meansa groupof interconnected loads andDistributedEnergyResourceswithinelectricalboundariesclearlydefinedbytheEnergyBureauthatactsasasinglecontrollableentitythatcanconnectanddisconnectfromtheElectricPowerGridtoenableittooperateineithergrid-connectedoroff-the-grid(islanded)mode.

19) “Municipality”meansthelocalgovernmentlegalentityorganizedandexistingpursuanttoArticleVI,§1oftheConstitutionoftheCommonwealthofPuertoRico and Act No. 81 of August 30, 1991, as amended, known as theAutonomousMunicipalityActoftheCommonwealthofPuertoRico.

20) “Person”meansanaturalperson;alegalentitycreated,organized,orexistingunder the laws of the Commonwealth of Puerto Rico, the United States ofAmerica,anystateoftheunion,oranyforeignstateorcountry;aMunicipalityoraconsortiumofMunicipalities;oragovernmententity(otherthanPREPA).

21) “Power Purchase Agreement” or “PPA” means any agreement or contractapproved by the Energy Bureau, whereby an Electric Power GenerationCompany is bound to sell electric power, at a just and reasonable rate, toanothernaturalorjuridicalperson,andsuchotherpersonis,inturn,boundtoacquiresaidpower.

22) “PREPA”meansthePuertoRicoElectricPowerAuthority,acorporateentitycreatedbyvirtueofActNo.83ofMay2,1941,asamended,andanysuccessor

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distribution,transmissionorgenerationowneroroperator.

23) “ProviderofLastResort”or“POLR”meanstheentitymaintainingtheprimaryresponsibilityforprovidinganyofthegeneration,transmission,distribution,commercialization, and operating functions of the electrical system. TheProviderofLastResortshallbePREPAoritsagentorsuccessor.

24) “Puerto Rico Benefit Cost Test” or “PR Test” means a cost-effectivenessscreeningtestdevelopedinaccordancewiththisRegulation,reflectingPuertoRico public policy and used to evaluate whether proposed or actual DRprogramsorinitiativesprovidegreaterbenefitsthantheircosts.

25) “Three-Year DR Plan” means a plan filed by an Electric Power ServiceCompany, and subject to review and approval by the Energy Bureau, thatidentifiestheproposedDRprogramsandgoalsforathree-yearperiod.

26) “UtilityCostTest”meansacost-effectivenessscreeningtestusedtoevaluatewhether proposed or actual DR programs or initiatives provide greaterbenefitsthancoststothePuertoRicoelectricsystem.

27) “Wheeling”meansthetransmissionofelectricityfromanIndependentPowerProducertoaWheelingCustomerthroughtheElectricPowerGridandwhichdoes not constitute distributed generation through any net meteringmechanism.

28) “WheelingCustomer”meansanElectricPowerServiceCompany,Microgrid,EnergyCooperative,MunicipalVenture,largescaleindustrialandcommercialcustomer,orcommunitysolarandotherdemandaggregatorthatentersintoaPowerPurchaseAgreementwithanIndependentPowerProducer.

C) EverywordusedinthesingularinthisRegulationshallbeunderstoodtoalsoincludethepluralunlessthecontextindicatesotherwise.

Section1.10 ControllingVersion.

Should anydiscrepancy between the Spanish version and the English version of thisRegulationarise,theprovisionsoftheEnglishversionshallprevail.

Section1.11 Severability.

Ifanyarticle,provision,word,sentence,paragraph,subsection,orsectionofthisRegulationisdisputed,foranyreason,beforeacourtanddeclaredunconstitutionalornullandvoid,suchrulingshallnotaffect,damage,orinvalidatetheremainingprovisionsofthisRegulation,rather the effect shall be limited to the article, provision, word, sentence, paragraph,subsection,orsectionthathasbeendeclaredunconstitutionalornullandvoid.Thenullityorinvalidityofanyarticle,word,sentence,paragraph,subsection,orsection,inanyspecific

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case,shallnotaffectorjeopardizeinanywayitsapplicationorvalidityinanyothercase,exceptwhereithasbeenspecificallyandexpresslyinvalidatedforallcases.

Section1.12 Forms.

TheEnergyBureaushallestablishtheformsitdeemsnecessarytoconducttheproceedingspursuant to thisRegulation and shall inform thepublic via itswebsite. The fact that theEnergyBureauhasnotadoptedoneormoreforms,isintheprocessofreviewingthem,ortheInternetwebsiteisoutofservice,shallnotrelieveanypartyofitsobligationtocomplywiththeprovisionsstatedherein,providetheinformationrequiredbythisRegulation,orotherwisecomplywithanyapplicableEnergyBureauorder.

Section1.13 ModeofSubmission.

Theforms,documents,andappearancesrequiredbyvirtueofthisRegulationoranyorderof the Energy Bureaumust be submitted before the Energy Bureau in electronic formataccording to the instructions which, from time to time, the Energy Bureau establishesthroughanorderinrelationtotheelectronicfilingsystem.

If the electronic filing system is temporarily not operating or functioning, the forms,documents,andappearancesrequiredbyvirtueof thisRegulationorbyanyorderof theEnergy Bureau shall be submitted before the Energy Bureau in accordance with anyinstructionsthattheEnergyBureaushallprovideatthattimethroughanorder.

Section1.14 EffectofSubmission.

In filinganydocumentbefore theEnergyBureau, thepartyundersigningsuchdocumentshall be deemed to have Certified that the content of said document is true and that,accordingtothesigner’sbestknowledge,information,andbelief,formedafterreasonableinquiry,thedocumentisbasedonreliableandtrustworthyfacts,arguments,judicialsources,andinformation.

Section1.15 ConfidentialInformation.

IfincompliancewiththeprovisionsofthisRegulationoranyoftheEnergyBureau’sorders,a Person has the duty to disclose information to the Energy Bureau considered to beprivileged, pursuant toapplicable evidentiary privileges, said Person shall identify theallegedprivilegedinformationandrequest inwritingfortheEnergyBureautotreatsuchinformationasconfidential,pursuanttoArticle6.15ofAct57-2014.Inidentifyingprivilegedinformation and requesting confidential treatment by the EnergyBureau, the requestingpartyshallfollowtherulesandproceduresestablishedbytheEnergyBureauinResolutionCEPR-MI-2016-0009,assuchresolutionmaybeamendedfromtimetotime,forthefiling,handling, and treatment of confidential information.Except in the case of informationprotectedundertheattorney-clientprivilege,theclaimofconfidentialtreatmentshall,undernocircumstances,begroundsfordenyingsuchinformationfrombeingfiledwiththeEnergyBureau.

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Section1.16 Validity.

Pursuant toSection 2.8 of the LPAU, this Regulation shall enter into effectthirty (30)daysafteritssubmissiontotheDepartmentofStateandtheLegislativeLibraryoftheOfficeofLegislativeServices.

Section1.17 CompliancewithOtherApplicableLegalRequirements.

CompliancewiththisRegulationshallnotrelieveanypartyaffectedbythisRegulationfromfully complyingwithotherapplicable legalandregulatoryrequirementsenforcedbyanyothergovernmententity.

ARTICLE2. DEMANDRESPONSESERVICES

Section2.01 DemandResponseRoles.

A) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshalldevelopandofferDemandResponseprograms.

B) Customersmayparticipatedirectly inPREPA’sDRprograms if the customer’sDRresourcehasacapacityinexcessof50kW.

C) Demand Response Aggregators shall aggregate the Demand Response resourcesprovidedbyoneormorecustomersandenrolltheaggregatedresourceorresourcesin the DR programs offered by PREPA, its successor or the operator of theTransmissionandDistributionSystem.

D) CompaniesthatofferDRprogramstoCustomersshallbereferredtoas“DRProgramProviders”.PREPA,itssuccessor,theoperatoroftheTransmissionandDistributionSystemandallDRAggregatorsareDRProgramProviders.

E) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshall pursue all available cost-effective Demand Response resources, includingdiverse technologiesandvariousservicesprovided, through itsownDRprogramsandratedesigns,andthroughDRAggregators.

F) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshalldispatchtheDRresourcesthatparticipateinitsprograms,whetherdirectlyorthroughDRAggregators, inamannerthatsupports the leastcostoperationof thePuertoRicoelectricsystem,whenviewedfromatotalsystemperspective.

G) AnIndependentPowerProducer(“IPP”)thatengagesinWheelingshalleither:

1) developandoffer cost-effective, feasibleDemandResponseprograms to itsWheelingCustomers,andaggregatetheseresultingresourcestoparticipateinPREPADemandResponseprograms(thatis,becomeaDRAggregator);or

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2) facilitatetheenrollmentofitsWheelingCustomersintheDemandResponseprogramsofferedbyPREPAorDRAggregators.

H) AnEnergyCooperativeshalleither:

1) developandoffer cost-effective, feasibleDemandResponseprograms to itscustomers,andaggregatetheseresultingresourcestoparticipateinPREPA,its successor or the operator of the Transmission and Distribution SystemDemandResponseprograms(thatis,becomeaDRAggregator);or

2) facilitatetheenrollmentofitsCustomersintheDemandResponseprogramsoffered by PREPA, its successor, the operator of the Transmission andDistributionSystemorDRAggregators.

Section2.02 CertificationofDemandResponseAggregators.

A) TheEnergyBureaushallbethesolecertifyingentityforapprovedDemandResponseAggregators.

B) DemandResponseAggregators shall be certified by the EnergyBureau under theprocessesestablishedinEnergyBureauRegulation87012,oritssuccessor.

1) AspartoftheoperationalreportsubmittedtotheEnergyBureaupursuanttoRegulation8701,theDRAggregatorshallincludeacopyoftheAnnualReportasspecifiedinSection5.01ofthisRegulation.

2) InitsRequestforCertificationunderRegulation8701,aDRAggregatorshall,inadditiontomeetingtherequirementsofRegulation8701:

a) describethetypeofDRresourcesitseekstodevelopandaggregate;

b) identifytheDRprogramorprogramsofferedbyPREPAthatitintendstoutilizeonbehalfofitscustomers;

c) providetheprivacyanddatasecuritypolicyrequiredbySection6.01ofthisRegulation;and

d) iftheDRAggregatorintendstoserveresidentialorsmallcommercialcustomers, provide the standard form letter or electroniccommunication and agreement to be submitted to each customerexplainingthetermsandconditionsofparticipatingintheDRserviceasrequiredbySection2.03ofthisRegulation.

2Amendment toRegulationNo.8618onCertification,AnnualFees,andOperationalPlans forElectricServiceCompaniesinPuertoRico.

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C) PREPAneednot acceptDR resourcesofferedbyaDRAggregator if the aggregateresourcesofferedbytheDRAggregatorhaveacapacityoflessthan50kW.

D) TheEnergyBureaushallmaintain,andpublishonitswebsite,alistofcertifiedDRAggregators,includingcontactinformationforeachDRAggregator.

Section2.03 CustomerParticipation.

A) CustomersservedbyPREPAmaychooseto:

1) participateintheDRprogramsofferedbyaDRAggregator;

2) participate directly in PREPA, its successor or the operator of theTransmissionandDistributionSystem’sDRprograms, if the customer’sDRresourcehasacapacityinexcessof50kW;or

3) notparticipateinDRprograms.

B) EachWheelingCustomermaychooseto:

1) ifitsIPPisaDRAggregator,participateintheDRprogramsofferedbyitsIPP;

2) selectadifferentDRAggregatorandparticipateinitsprograms;



C) CustomersofEnergyCooperativesmaychooseto:

1) ifitsCooperativeisaDRAggregator,participateintheDRprogramsofferedbyitsEnergyCooperative;

2) ifitsCooperativeisnotaDRAggregator,selectadifferentDRAggregatorandparticipateinitsprograms;



D) Each service account may participate in the programs of only one DR ProgramProvider.

1) EachDRProgramProvidershallmaintainanaccurateanduptodatelistofthe

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serviceaccountsthatparticipateinitsDRprograms,andprovidesuchlisttoPREPA, its successor or the operator of the Transmission andDistributionSystematleastonceperquartertoensurenodoubleparticipation.

2) IntheeventthatPREPA,itssuccessorortheoperatoroftheTransmissionandDistribution System identifies that a service account is participating orrequestingtoparticipateinprogramsofferedbymorethanoneDRProgramProvider, PREPA, its successor or the operator of the Transmission andDistributionSystemshall informtheDRProgramProvidersinquestionandthecustomershallberequiredtoselectoneDRProgramProvider.

E) DRProgramProvidersshallexerciseduediligenceinmeetingobligationsunderthisregulationsoastofacilitateacustomer’selectiontoparticipateinDRprogramsasquicklyaspossible.

1) PREPA, its successor or the operator of the Transmission andDistributionSystem shall provide any requested information it is obligated to provideunder Section 6.02, in a timely fashion, to an inquiring DR Aggregator tofacilitateacustomer’senrollmentorparticipationinaDRprogram.TheDRAggregatorshalldemonstratethatthecustomerauthorizesthisdatarequestby either (i) providing the appropriate form under Section 6.02 with thecustomer’ssignatureor(ii)demonstratingthatthecustomerisenrolledintheDRProgramProvider’sDRprogram(s).

F) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemmaynotdisrupt,disturb,orinterferewithanycustomer’srelationshipwithanyIPPorDRAggregatorregardingDRservices.

G) PriortoenrollingacustomerinDRservice,anyDRProgramProvidermustobtainthecustomer’s written consent for the enrollment in DR service and ensure that thecustomerhasnotandwillnotenroll inanotherDRProgramProvider’sDRserviceduringthetermofitsagreementwithitsDRProgramProvider.

H) PREPA,itssuccessor,theoperatoroftheTransmissionandDistributionSystemandanyDRAggregatorsintendingtoenrollresidentialandsmallcommercialcustomersinDRprogramsarerequiredtomeetthefollowingadditionalrequirements.

1) PREPA, its successor, the operator of the Transmission and DistributionSystem and such DR Aggregators must obtain approval from the EnergyBureauforastandardformletterorelectroniccommunicationandagreementto be submitted to each customer explaining the terms and conditions ofparticipatingintheDRservice.

2) PREPA, its successor, the operator of the Transmission and DistributionSystem and such DR Aggregators must transmit each standard letter orelectroniccommunicationtothecustomerwithinfive(5)businessdaysofthecustomer’sagreementtoparticipateintheDRservice.PREPA,itssuccessor,

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the operator of the Transmission and Distribution System and such DRAggregatorsshallthenprovidesuchcustomerfive(5)businessdaystoopt-out of such participation through written response or electroniccommunication.

I) IntheeventthattheEnergyBureauterminatesorrevokesaDRProgramProvider’scertificationororderstheterminationofaDRProgramProvider’sDRservices,theDRProgramProvidershallnotifyeachaffectedcustomerandPREPA,itssuccessorortheoperatorof theTransmissionandDistributionSystemwithin five(5)businessdays.

J) In the event of a discontinuation of a DR service or program by a DR ProgramProvider:

1) TheDRProgramProvidermustun-enrolltheaffectedcustomer(s)fromtheDR program and inform PREPA, its successor or the operator of theTransmissionandDistributionSystem.

2) The customer shall thereafter be eligible andhave the right at any time toenroll in another DR service or program(s) pursuant to this regulation,operatedbyanyDRProgramProvider.IntheeventofthediscontinuanceofaDRservice,theDRProgramProvidershallprovideitscustomerswithwrittennoticewithinfivedaysoftheOrderondiscontinuancethatshallexplainthediscontinuance and provide the customer with information on PREPA, itssuccessor or the operator of theTransmission andDistribution SystemDRprograms,approvedDRAggregators,andanyother informationtheEnergyBureaurequiresinitsOrderonthediscontinuance.

K) ADRProgramProvidershallnotcreateanyunlawfulbarrierstopreventacustomerfromleavingitsDRprogramsorservice.

L) DRProgramProvidersshallbesolelyresponsibleforhavingappropriatecontractualor other arrangements with their customers necessary to implement DR serviceconsistentwithallapplicablelaws,EnergyBureaurequirements,andthisregulation.

M) CustomerinquiriesconcerningaDRProgramProvider’schargesorservicesshouldbedirectedtotheDRProgramProvider.

N) TotheextentthatacustomertakesservicefromanIPP,EnergyCooperative,orDRAggregator, PREPA, its successor or the operator of the Transmission andDistributionSystemshallhavenoobligationstothecustomerwithrespecttotheDRservicesprovidedbytheIPP,EnergyCooperative,orDRAggregator.

Section2.04 DispatchingDemandResponseResources.

A) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshallmaintaintheabilitytodispatchDRresourcesmadeavailablebyparticipantsin

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itsprograms,includingDRAggregators.

B) When dispatching DR resources, PREPA, its successor or the operator of theTransmissionandDistributionSystemshallnotdiscriminateamongtheresourcesofferedbyanyDRProgramProvider(includingitself),onanybasisotherthanthecosttoratepayersfortheperformance(includinganytemporalorlocationalvalue)delivered.

C) EachDRAggregatorshallmakethedemandresponseresourcesthatithasacquiredavailabletoPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystemfordispatchinaccordancewithPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’soperatingprocedures,asapprovedby theEnergyBureau.

D) EachDRProgramProvidershallverify,orfacilitatetheverificationof,thereliabilityofeachDRresourceoraggregatedcollectionofDRresourcesitenrolls inPREPA’sprogramsinaccordancewithPREPA’soperatingprocedures.

E) DRProgramProvidersshallcompensatethecustomerswhoprovideDRresourcesbased on the resources’ performance, dispatch, and availability. CompensationmechanismsaresubjecttoEnergyBureaureviewandapproval.

ARTICLE3. DEMANDRESPONSEPROGRAMSANDPLANS

Section3.01 DemandResponsePrograms.

A) PREPA,itssuccessor,theoperatoroftheTransmissionandDistributionSystemandDR Aggregators (that is, DR Program Providers) shall develop demand responseprogramsthatseektoprovidethemostcost-effectiveDemandResponseresourcesovertime.

B) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshall develop and offer DR programs that offer standardized, cost-effectivecompensationinexchangefordispatchableDR.PREPA,itssuccessorortheoperatorof the Transmission and Distribution System shall submit these programs to theEnergyBureauforapproval,rejection,ormodification.

1) WhenconsideringPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’sproposedprograms,theEnergyBureaushallensurethecompensationofferedtoparticipatingDRresourcesisbasedonthevalueoftheDRresourcestothePuertoRicoelectricsystem.

C) PREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem,initsoperatingprocedures,andallDRProgramProviders,intheirDRprogramdesigns,shall differentiate among types of DR resources in a manner befitting thecharacteristicsoftheresourcesandtheservicestheresourcescanprovide.

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1) PREPA, its successor or the operator of the Transmission andDistributionSystemshall,inthedevelopmentofstandardizedDRprograms,considerDRprogramsthatdispatchwithdifferentfrequencyandwhichmaybewellsuitedtodifferenttechnologies,includingthosewhichmightdispatchdaily(andarewellsuitedtoEnergyStorage),thosewhichdispatchoccasionally(afewtimesperyear),andthosewhichdispatchonlyinEmergencySituations.

D) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshall develop and implement a process whereby an individual customer or a DRAggregator may propose alternative custom-tailored arrangements to providePREPA, its successoror theoperatorof theTransmissionandDistributionSystemwithaDRresourcethatdoesnotfitwellinPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’sstandardizedDRprograms.

1) Once PREPA, its successor or the operator of the Transmission andDistribution System and the customer or DR Aggregator have come to anagreement regarding the custom-tailored arrangement, PREPA and DRAggregator shall jointly file the proposed planwith the Energy Bureau forapproval,rejection,ormodification.

2) IntheeventthatPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystemandthecustomerorDRAggregatorarenotabletocometoanagreementregardingacustom-tailoredarrangement, thecustomerorDR Aggregator may request the Energy Bureau an appropriate process toresolvethedifferencesbetweenPREPA, itssuccessorortheoperatoroftheTransmissionandDistributionSystemandthecustomerorDRAggregator.

3) ForthepurposesofthisRegulation,suchcustom-tailoredarrangementsshallbe considered to be a part of PREPA, its successor or the operator of theTransmissionandDistributionSystem’sDRprograms.

E) DRAggregatorsshallaggregateDRresourcesfromoneormorecustomersandenrollthe aggregate resource in PREPA’s standardized programs or develop a customprograminassociationwithPREPA.

F) Fossil fueledbackupgeneratorsmayparticipateonly inDRprograms that call fordispatch only in power supply or grid contingency situations inwhich customerswouldloseelectricservicewithouttheuseofsuchresources.

Section3.02 DemandResponseProgramsDuringEmergencySituations.

A) IntheeventofanEmergencySituationthataffectstheprovisionofelectricservicefrom PREPA, its successor or the operator of the Transmission and DistributionSystem,toitscustomers,PREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem,motuproprioorpursuanttoanEnergyBureau’sorder,maydevelopandofferDRprogramstoindividualcustomersormembersofaCustomerClass,forthepurposesofprovidingcontinuousandreliableelectricservice.

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B) PREPA, itssuccessorortheoperatoroftheTransmissionandDistributionSystem,shall submit such programs to the Energy Bureau for approval, rejection, ormodification.TheEnergyBureauwillreviewtheseprogramsinanexpeditedmannerandissueanyResolutionaccordingly.However,theEnergyBureaushallensurethecompensationofferedtoparticipatingDRresourcesisbasedonthevalueoftheDRresourcestothePuertoRicoelectricsystemduringtheEmergencySituation.

Section3.03 DemandResponsePlans.

A) DRProgramProvidersarerequiredtofileThree-YearDRPlansandAnnualDRPlansinaccordancewiththisSection.

B) Each IPPandEnergyCooperative that isnotaDRAggregatormust fileannuallyadescriptionoftheprocesstheIPPorEnergyCooperativeusestorefercustomerstoDRprogramsofferedbyPREPA,itssuccessorortheoperator,theTransmissionandDistributionSystemand/orDRAggregators.

C) ADRProgramProvidermay request to theEnergyBureau that someor all of itsThree-YearDRPlanorAnnualPlanbetreatedasconfidentialbusinessinformation.

D) TheEnergyBureaushallpublishthenon-confidentialversionofeachThree-YearDRPlanandAnnualDRPlanonitswebsite.

E) EachThree-YearDRPlanfiledbyaDRProgramProvidershallinclude,butneednotbelimitedto:

1) TheProvider’stargetsfortheacquisitionofcost-effectivedemandresponseresources;

2) Planned programs and/or DR rate offerings to acquire demand responseresources;

3) Adefinedcalendarforofferingsuchprogramsand/orDRrates;

4) Justificationfortheprogramand/orratedesignsbasedoncost-effectivenesstothePuertoRicoenergysystem;

5) Three-andfive-yearplansforeachidentifiedprogramorDRrate;and

6) Identificationof theCustomerClasses tobe servedbyeachprogramorDRrate.

F) TheThree-YearDRPlanproceduralscheduleforPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystemshallbeasfollows.

1) TheEnergyBureaushallestablishthefilingdeadlineforPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’sThree-YearDRPlanbyorderorresolution.

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2) PREPA, its successor or the operator of the Transmission andDistributionSystemshallpresentitsdraftThree-YearPlantoanopenmeetingofinterestedstakeholdersandmembersofthepublicnolaterthanninety(90)daysbeforethefilingdeadlineandmakethewrittendocumentpubliclyavailableatthattime.

a) PREPA, its successor or the operator of the Transmission andDistribution System shall solicit feedback from stakeholders inmeetingsandviawrittencomments.

b) PREPA, its successor or the operator of the Transmission andDistributionSystemshallendeavortosolicitstakeholderparticipationandinputfromdiverseperspectivesincluding,butnotlimitedto,thefollowing:

i. Residentialconsumers;

ii. Lowincomeconsumers;

iii. Smallbusinesses;

iv. Largecommercialconsumers;

v. Manufacturers;

vi. Environmentalorganizations;

vii. Organizedlabor;

viii. TheIndependentConsumerProtectionOffice;

ix. EnergyPublicPolicyProgramoftheDepartmentofEconomicDevelopmentandCommerce;

x. Municipalities;

xi. Otherpublicinterestorganizations;and

xii. CertifiedorpotentialDRAggregators.

c) PREPA, its successor or the operator of the Transmission andDistributionSystemshallprepareasummaryoffeedbackreceivedandadiscussionofhowthefeedbackhasorhasnotbeenincorporatedintotheThree-YearDRPlan,andfilethisdocumentaspartofsubmissionoftheThree-YearDRPlantotheEnergyBureau.

3) UponofthefilingofPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’sThree-YearDRPlan:

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a) The Energy Bureau shall initiate a proceeding to evaluate the filedThree-YearDRPlan,alongwithitsassociatedbudgetandperformanceobjectives.

b) TheEnergyBureaushallsolicitcommentsonthefiledThree-YearDRPlan from stakeholders and the public, and specifically invite theparticipation of stakeholders who provided feedback on the draftThree-YearDRPlan.

c) The Energy Bureau need not require formal testimony or anadjudicative process, although it may use such processes at itsdiscretion. The Energy Bureau shall provide an opportunity forinterestedpartiestobeheardinapublichearing.

G) TheThree-YearDRPlanproceduralscheduleforDRAggregatorsshallbeasfollows.

1) EachDRAggregatorshallfileitsfirstThree-YearDRPlanwithinninety(90)daysofthecompany’scertificationunderRegulation8701.

2) UponofthefilingofanDRAggregator’sThree-YearDRPlan:

a) The Energy Bureau shall initiate a proceeding to evaluate the filedThree-YearDRPlan.

b) TheEnergyBureaushallsolicitcommentsonthefiledThree-YearDRPlanfromstakeholdersandthepublic.

c) TheEnergyBureauneednotrequireformaltestimonyoradjudicativeprocess, although it may use such processes at its discretion. TheEnergy Bureau may, at its discretion, provide an opportunity forinterestedpartiestobeheardinapublichearing.

H) The Energy Bureau shall issue a decision on each filed Three-Year DR Plan. TheEnergy Bureau shall approve each Three-Year DR Plan, reject and require theresubmissionofthePlan,oracceptthePlaninpartandrequireresubmissionwithinstructionsonotherpartsofthePlan.

I) AnnualDRPlans.

1) IneachofthefirstandsecondyearsofimplementationofeachThree-YearDRPlan,theDRProgramProvidershallfileanAnnualDRPlanwiththeEnergyBureau on the schedule established by the Energy Bureau in its order orresolutionapprovingtheThree-YearDRPlan.

2) The Annual DR Plan shall describe in detail changes that the DR ProgramProvider Aggregator proposes to make to the Three-Year DR Plan forimplementationinthecomingyear(yearstwoand/orthreeoftheThree-Year

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DRPlan).

3) PREPA, its successor or the operator of the Transmission andDistributionSystemshallpublishadraftAnnualDRPlanforstakeholderfeedbacknolaterthanninety(90)daysbeforethefilingdeadlinefortheAnnualDRPlan,andwelcome stakeholder feedback within thirty (30) days to facilitateincorporationofresponsestothisfeedbackinPREPA’sAnnualDRPlanfilingtotheEnergyBureau.

4) InPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’sAnnualDRPlan:

a) PREPA, its successor or the operator of the Transmission andDistribution System may request changes to its DR programs’performancemetricsortargets;

b) PREPA may make changes to the program offerings based on dataevaluated from a program or other circumstances, with associatedchangesintheDRbudget.

5) TheEnergyBureaushallconsidereachfiledAnnualPlan.

a) The Energy Bureau shall solicit stakeholder comments on the filedAnnualDRPlantoinformitsdecision.

b) TheEnergyBureaumay, at itsdiscretion,openaproceeding for thepurposeofevaluatinganyproposedAnnualPlan.

6) TheEnergyBureaushallapproveeachAnnualDRPlan,rejectandrequiretheresubmissionofthePlan,oracceptthePlaninpartandrequireresubmissionwith instructionsonotherpartsof thePlan.EachapprovedThree-YearDRPlan,asmodifiedbyanypastapprovedAnnualPlans,remainsineffectuntilanorderapprovingtheAnnualDRPlanisissued.

ARTICLE4. COSTEFFECTIVENESS

Section4.01 InterimCostBenefitTest

A) Thecostbenefit testdefined in thisSectionshallbeuseduntil theEnergyBureauestablishesthePuertoRicoTestbyorderorresolution,asdescribedinSection4.02.

B) DRProgramProvidersandtheEnergyBureaushallassessthecost-effectivenessofDRprogramsaccordingtotheUtilityCostTest.TheUtilityCostTestmeasurescost-effectivenessfromtheperspectiveofthePuertoRicoelectricsystem.

C) Thecostsincludedinthistestshallbe:

1) Programcosts

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2) Incentivepaymentstoparticipants

D) Thebenefitsincludedinthistestshallbe:

1) Avoidedenergycosts

2) Avoidedgenerationcapacitycosts

3) Avoidedtransmissionanddistributioncapacitycosts

4) Avoidedlinelosses

5) Avoidedenvironmentalcompliancecosts

E) InitsThree-YearDRPlan,PREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystemshalldescribeindetailthemethodologiesusedtocalculatethecostsandbenefitsofitsDRprograms,andprovidetheunderlyingdata.

F) DRAggregatorsmayusethemethodologiesanddataprovidedbyPREPAinitsmostrecentapprovedThree-YearDRPlantoconducttheircost-effectivenessanalyses.

1) ADRAggregatorthatchoosestopresentdifferentmethodologiesordatafortheevaluationofcostsandbenefitsshalldescribeindetailthemethodologiesusedtocalculatethecostsandbenefitsofitsDRprograms,andprovidetheunderlyingdata.

Section4.02 PuertoRicoTest

A) ThePuertoRicoTestshallreflectthepolicyobjectivesofPuertoRicowithregardtoenergy,environmental,andsocietalimpacts.

B) TheEnergyBureaushalldevelopthespecificbenefitsandcoststobeincludedinthePuertoRicoTest,informedbystakeholderinput.

C) The Energy Bureau shall include in the Puerto Rico Test all relevant generation,transmission,anddistributionimpacts,reliabilityandresilience,otherfuelimpacts,andenvironmental impacts, andmay includeothernon-energy impacts, economicdevelopmentimpacts,andsocialequityimpacts.Theaccrualofspecificnon-energyimpacts to certainprogramsor technologies, such as income-eligibleprogramsorcombinedheatandpower,maybeconsidered.

D) TheEnergyBureaushallinitiateaproceedingtodefinethePuertoRicoTestwithintwelve(12)monthsoftheeffectivedateofthisRegulation.

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ARTICLE5. REPORTING,MEASUREMENT,EVALUATION,ANDVERIFICATION

Section5.01 Reporting.

A) OnanannualscheduleestablishedbytheEnergyBureau,eachDRProgramProvidershall report to the Energy Bureau a description of the DR Program Provider’scompleteactivities,aswellasanyothersuchinformationastheEnergyBureaushalldeterminebyorderorresolution.

B) Each DR Program Provider shall provide quarterly public reports to the EnergyBureau.Thesereportsshallbefiledwithinthirty(30)daysoftheendofeachquarter.InthecaseofPREPA,itssuccessor,theoperatoroftheTransmissionandDistributionSystemoranIPPthatisaDRAggregator,thereportsshallincludeadescriptionoftheCompany’sprogress in implementing theThree-YearandAnnualDRPlans.AllDRProgramProviders shall submit a summaryof theDR resources acquired, theDRprogramsinwhichtheyareenrolled,performanceoftheirresourcesduringeventswhenDRhasbeendispatched,andothersuchinformationastheEnergyBureaushalldetermineandestablishbyorderorresolution.

C) ADRProgramProvidermay request to theEnergyBureau that someor all of itsannualorquarterlyreportsbetreatedasconfidentialbusinessinformation.

Section5.02 MeasurementandVerification.

A) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshalladopt,subjecttoapprovalbytheEnergyBureau,procedurestomeasureandverifytheDRresourcesprovidedbyallDRProgramProviders(includingPREPA,itssuccessoror theoperatorof theTransmissionandDistributionSystemitself).TheEnergyBureaushallestablishadeadline,byorderorresolution,fortheadoptionoftheseprocedures.PREPAmayoffermultiplemodels tomeasureand/orverifyDRresourcesandmayassignaDRresourcetouseaparticularmethodologybasedonitsparticular characteristics, or allow the customer’s DR Program Provider or thecustomerprovidingtheDRresourcetoselectthemethodology.

B) PREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem’sprocedurestomeasureandverifyDRresourcesshallinclude:

1) Howtoestablish thebaseline load, towhichchanges in loadare comparedwhenmeasuringDRresourcesdelivered,forDRresourcesthatdonotincludedispatchableelectricEnergyStorage;

2) HowtomeasuretheperformanceofDRresourcesthatincludedispatchableelectricEnergyStorage;and

3) AprocesstotestthedeploymentofeachDRresourceoraggregatedsetofDRresourcesprovidedbyaDRProgramProvideronaregularbasis(suchastwiceperyear).MeasureddispatchoftheresourcebyPREPA,itssuccessororthe

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operatoroftheTransmissionandDistributionSystemaspartofstandardgridoperationsshallbeanallowedmechanismtoverifytheresource.

C) Such procedures and baseline calculations shall be determined by PREPA, itssuccessor or the operator of the Transmission and Distribution System and theEnergyBureautobebothreliableandfeasible.Reliableproceduresandcalculationsprovide trust that reductions procured in the DR program are being deliveredaccurately. Feasible procedures and calculations are implementable byPREPA, itssuccessor,theoperatoroftheTransmissionandDistributionSystemandDRProgramProvidersat reasonablecostusingavailable technology thatdoesnot significantlydisruptcustomeroperations.

ARTICLE6. PRIVACY,CUSTOMERDATA,ANDCOMPLAINTS

Section6.01 CustomerInformation.

A) Each DR Program Provider shall adopt andmaintain a privacy and data securitypolicythatdescribesandgovernshowitstores,safeguards,andlimitsdisclosureofcustomerinformation.

B) EachDRProgramProvider’sprivacyanddatasecuritypolicyissubjecttoreviewandapprovalbytheEnergyBureau.

C) TheEnergyBureaumayauditeachDRProgramProvider’sproceduresandpracticestoensureconsistencywithitsprivacyanddatasecuritypolicy.

D) Each DR Program Provider’s privacy and data security policy shall ensure at aminimumthat:

1) Thecompanymaynotsellprivateorproprietarycustomerinformation.

2) Thecompanymaynotdiscloseprivateorproprietarycustomerinformationwithortoitsaffiliates,subsidiaries,oranyotherthirdpartyforthepurposesofmarketingservicesorproductofferingstoaretailelectriccustomerwhodoesnotalreadysubscribetothatserviceorproduct,unlessthecompanyhasfirstobtainedthecustomer'swrittenorelectronicpermissiontodoso.

c) The DR Program Provider shall be allowed to share customerinformationwith itsDRvendors,verifiers, andevaluators,withdatasharinglimitedtothatwhichisnecessaryfortheeffectiveoperationofeach vendor’s DR program or programs or the verification orevaluationofsuchprograms.

3) TheDRProgramProvidermust:

a) Obtainaretailelectriccustomer'spriorpermissionforeachinstanceofdisclosureofhisorherprivateorproprietarycustomerinformationto

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anaffiliate,subsidiary,orotherthirdpartyforpurposesofmarketingservicesorproductsthatthecustomerdoesnotalreadysubscribeto;and

b) Maintainarecordforeachinstanceofpermissionfordisclosingaretailelectriccustomer'sprivateorproprietarycustomerinformation.

4) The DR Program Provider must retain the following information for eachinstance of a retail electric customer's consent for disclosure of his or herprivateorproprietarycustomerinformationifprovidedelectronically:

a) The confirmation of consent for the disclosure of private customerinformation;

b) Alistofthedateoftheconsentandtheaffiliates,subsidiaries,orthirdpartiestowhichthecustomerhasauthorizeddisclosureofhisorherprivateorproprietarycustomerinformation;

c) Awrittenacknowledgementsignedbyallemployeesoftheaffiliates,subsidiaries,or thirdpartieswhowillhaveaccess to theCustomer’sprivate or proprietary information that it will not disclose suchinformationtoanyotherpersonorentity;and

d) A confirmation that the name, service address, and account numberexactlymatchesthecompany’srecordforsuchaccount.

5) ThissectiondoesnotrequirecustomerpermissionfororpreventdisclosureofprivateorproprietarycustomerinformationbytheDRProgramProvidertoathirdpartywithwhichtheDRProgramProviderhasacontractwheresuchcontractisdirectlyrelatedtoconductoftheDRProgramProvider’sbusinessandtheservicesbeingprovided,providedthatthecontractprohibitsthethirdpartyfromfurtherdisclosingorsellinganyprivateorproprietarycustomerinformationobtainedfromtheDRProgramProvidertoapartythatisnottheDRProgramProviderandnotaparty to thecontractwith theDRProgramProvider.

6) A DR Program Provider may collect and release retail electric customerinformation inaggregate formif theaggregated informationdoesnotallowanyspecificcustomertobeidentified.

Section6.02 SharingCustomerUsageData.

A) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshalldevelopandpublish,subjecttoapproval fromtheEnergyBureau,astandardform that will allow for customer authorization to share customer-specificinformationandusagedatawithaDRAggregator,IPP,orEnergyCooperative.PREPA,its successor or the operator of the Transmission and Distribution System will

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provide confidential customer-specific information and usage data to partiesspecifiedby the customer, if thosepartieshave customer authorizationusing thisform.

B) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshallensurethattheMeterdatathatitprovidestoIPPs,EnergyCooperatives,andDRAggregatorsisaccurate.PREPA,itssuccessorortheoperatoroftheTransmissionandDistribution System must transfer the data required to evaluate DR eventperformancewithinareasonableperiodoftime(24hours)followingtheevent.

1) PREPA, its successor or the operator of the Transmission andDistributionSystemshallestablishasimpleprocessusingtheapprovedstandardizedformfor requests of DR-relevant customer data by DR Program Providers andcustomers.Datashallinclude:twelve(12)monthsofhistoricalusagedataifavailable,theMeterandserviceaccountnumbers,thelocationofthecustomeron the grid, and whether the customer is currently enrolled in any DRprograms(andwithwhichDRProgramProvider).

2) IfthecustomerisenrolledinaDRprogramprovidedbytheDRAggregator,PREPA, its successor or the operator of the Transmission andDistributionSystemshallfurtherprovide,uponrequest,ongoingusagedataasrequiredbythe DR Aggregator for billing and settlement at aminimum of fifteen (15)minutes interval data,within twenty-four (24)hours from the timePREPAacquires the usage data, or as mutually agreed to by PREPA and DRAggregator,orasfrequentlyandattheintervalorderedbytheEnergyBureau.

C) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshall ensure that customers wishing to participate in DR services have theappropriate metering devices, and shall respond to requests by customers forappropriate metering equipment on a timely basis. PREPA, its successor or theoperatoroftheTransmissionandDistributionSystemmaychargethecustomerorDRProgramProvider for thecostdifference foradevicethat isdifferent fromthemeteringequipmentthecustomerwouldotherwisehavebeenprovided.

1) Withapprovalandauthorizationfromthecustomer,aDRProgramProvidermayinstallanduseatelemetrysolution(e.g.,aKYZpulsedeviceormeteringincorporatedinaninverterorothercontrolelectronics)thathastheconsentofPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem.ThedatafromthetelemetrysolutioncanbeusedbytheDRProgramProvider inmeasuringcustomerperformanceandmeetingrequirementsofPREPA, its successor or the operator of the Transmission andDistributionSystem.TheDRProgramProvidershallberesponsiblefortheinstallationcostofthetelemetrysolution.

2) IntheeventthataMeterchangeisrequired(i.e.theexistingMeterisnotanappropriate intervalMeter), if the customerhas the optionof aMeter that

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wouldprovide the appropriate interval informationaspart of aPREPA, itssuccessor or the operator of the Transmission and Distribution Systemdeployment of suchmetering, the customer andDR Program Provider canelecttobeginDRservicesaftertheMeterinstallationdate.

D) IfDRparticipationrequiresaMeterortelemetrysolutionthatwouldnototherwisebe installed at no charge to the customer, the customer may elect to have thenecessarymeteringequipmentinstalledbyPREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystem.PREPA, itssuccessorortheoperatoroftheTransmissionandDistributionSystemshallchargetheDRProgramProviderforthe costof this equipment.Nothing in this regulation is intended toprevent aDRProgramProviderand its customer fromagreeing toallocate these costsbetweenthem.

Section6.03 ComplaintProcedure

A) DR Program Providers shall develop and publish a procedure for addressing anycomplaintsaCustomermayhavewithregardstotheDRservicesorcompensationprovidedtotheCustomer.TheprocedureshallclearlydescribetheprocessthroughwhichaCustomermayfileanycomplaintorgrievancewiththeDRProgramProviderandtheprocessthroughwhichtheDRProgramProviderwilladdresssaidcomplaintorgrievance,includingthetimeperiodwithinwhichsuchcomplaintsorgrievanceswillbeaddressed.

B) TheproceduremustincludeprocessesforinvestigationandresolutionofcomplaintsbyaCustomerwhoseprivateorproprietaryinformationmayhavebeensoldbytheDRProgramProviderordisclosedbytheDRProgramProviderforthepurposesofmarketingservicesorproductofferingsinviolationofthisArticle.

C) AnyCustomerdissatisfiedwithadeterminationmadebytheDRProgramProviderinrelation to a complaint or grievance made pursuant to this Section may file acomplaint with the Energy Bureau for review of such determination by the DRProgramProvider.SuchcomplainshallbefiledpursuanttoRegulation8543.

ARTICLE7. RATEDESIGN

Section7.01 RateDesigns.

A) PREPA, its successoror theoperatorof theTransmissionandDistributionSystemshalldevelopfortheEnergyBureau’sapproval,ratedesignsthatareconsistentwithcustomerimplementationofcost-effectiveDRresources.

1) PREPA, its successor or the operator of the Transmission andDistributionSystem may develop and implement time-varying rates and/or demandcharges that are informed by the costs of distribution or transmissioninfrastructure. Any such rate structure must be cost-based and must notdiscouragebeneficialelectrificationorthemoreefficientuseofthegrid.

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2) PREPA, its successor or the operator of the Transmission andDistributionSystem may develop and implement time-varying rates and/or demandcharges that are informed by the costs of energy supply. Any such ratestructure must be cost-based and must not discourage beneficialelectrification.

ARTICLE8. RESOURCEANDGRIDPLANNING

Section8.01 Responsibilities of PREPA, its successor or the operator of theTransmissionandDistributionSystem.

A) Aspartofitsresponsibilitiesforplanningforanddevelopingaleastcostreliableandefficientelectricgrid,PREPA,itssuccessorortheoperatoroftheTransmissionandDistribution System shall include in all planning processes the changes in energyconsumptionandpeakloadthatresultfromtheactivitiesofPREPA,itssuccessor,theoperatoroftheTransmissionandDistributionSystemandDRAggregators.

1) In developing the IRP, PREPA, its successor or the operator of theTransmission and Distribution System shall include the projected DRresourcesavailabletoPuertoRicooverthetwenty(20)yearplanninghorizon,includingtheimpactofmarkettransformationandcodesandstandards,thathavebeenidentifiedandapprovedbytheEnergyBureauinthemostrecentsetofThree-YearPlans,AnnualPlans,orotherproceeding.

a) PREPA, its successor or the operator of the Transmission andDistributionSystemshallidentifywhetherachievableincreasesintheprojectedDR resources,when considered alongside development ofotherDistributedEnergyResources,couldavoidspecificinfrastructureinvestments (including generation investments) or other costs toratepayers.

b) PREPA, its successor or the operator of the Transmission andDistribution System shall consider DR resources acquired by DRAggregators.PREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystemshallfurtherconsidertheachievablepotentialfordemandresponse identified inanyrelevantstudiesconducted inPuerto Rico on behalf of PREPA, its successor, the operator of theTransmissionandDistributionSystemortheEnergyBureau.

2) Indevelopingtransmissionordistributionplans,PREPA,itssuccessorortheoperator of the Transmission and Distribution System shall include thepotentialfordevelopmentanddeploymentofDRresourcestoavoidordefertheneedfortransmissionordistributioninvestment.

a) In the event that PREPA, its successor or the operator of theTransmissionandDistributionSystemidentifiesopportunitieswhereDRresourcesmaycost-effectivelyavoidordefertheneedtoconstruct

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transmissionordistributioninfrastructure,PREPA,itssuccessorortheoperatoroftheTransmissionandDistributionSystemshalldevelopaplanofactionthatmaintainsreliabilityatleastcosttoratepayersandsubmitittotheEnergyBureauforapproval,rejection,ormodification.Such a plan may include the offering of geographically- and/ortemporally-targetedDRprograms.

3) PREPA, its successor or the operator of the Transmission andDistributionSystemshallrequestfromtheIPPsandDRAggregators,andtheIPPsandDRAggregatorsshallprovide,anyinformationnecessaryforanaccurateanduptodateassessmentofdemandsideresourcesintheIRPoranytransmissionordistributionplanningprocesses.

ARTICLE9. RECONSIDERATIONANDJUDICIALREVIEW

Section9.01 Reconsideration.

Any personwho is not satisfiedwith a decisionmade by the Energy Bureau under thisRegulationmayfile,withinthetermoftwenty(20)daysfromthedatecopyofthenoticeofsuchdecisionisfiledbytheEnergyBureau’sClerk,arequestforreconsiderationbeforetheEnergy Bureau wherein the petitioner sets forth in detail the grounds that support therequestandthedecisionsthat, intheopinionofthepetitioner,theEnergyBureaushouldreconsider.

Section9.02 JudicialReview.

AnypersondissatisfiedwithafinaldecisionoftheEnergyBureauunderthisRegulationmay,withinthirty(30)daysfromthedatecopyofnoticeofafinaldecisionaddressingarequestforreconsiderationisfiledbytheEnergyBureau’sClerk,orwithinthirty(30)daysfromthedatecopyofthenoticeofanEnergyBureaufinaldecisionisfiledbytheEnergyBureau’sClerk,ifarequestforreconsiderationhasnotbeenfiled,appearbeforethePuertoRicoCourtof Appeals by way of writ of judicial review, pursuant to Section 4.2 of LPAU and theapplicableRulesoftheCourtofAppeals.

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