CAISO Demand Response Programs

Programs Offered

PARAMETERS PG&E BIP PG&E CBP SCE AMP SCE CBP SDG&E CBP

PRODUCT OPTIONS Day Of (30 Min) Day Of (3 Hr) Day Of (1 Hr) Day Of (1 Hr) Day Of (2 hr)

COMMITMENT PERIOD Annual (Jan-

Dec) Summer (May-Oct) Summer (May- Oct) Annual (Jan-Dec) Summer (May-Oct)

COMMITMENT HOURS 24/7/365

11AM - 7PM 12PM-6 PM 11AM - 7PM 11AM - 7PM

(Mon-Fri, Except Holidays*)

(Mon-Fri, Except Holidays*)

(Mon-Fri, Except Holidays*)

(Mon-Fri, Except Holidays*)

MAX. # EVENTS/DAY 1 1 1 1 1

CALLABLE HOURS/EVENT Maximum 4 Hrs 1-4 Hrs 1-5 Hrs 1-4 Hrs 1-4 Hrs

LOCAL DISPATCH** Yes Yes Yes Yes No

MINIMUM SIZE 100kW No No No 20 kW

MAX. HOURS / MONTH 40 Hrs 30 Hrs 30 Hrs 30 Hrs 44 Hrs

MAX. HOURS / YEAR 180 Hrs 120 Hrs 180 Hrs None None

# TESTS / YEAR*** Up to 2 Up to 2 Up to 2 Up to 3 Up to 2

BASELINE Average usage of each hourly interval out of 10 previous eligible weekdays. Customer can choose baseline with day-of adjustment

COMPENSATION Capacity Payment: Monthly payment based on customer’s monthly nominated kW or average performance in latest event/test.

SETTLEMENTS Customers receive seasonal payments based on their monthly kW curtailment nomination, adjusted by performance.

COMPLIANCE Customers are required to comply with all relevant rules and regulations.

UNDER AND NON-PERFORMANCE Underperformance varies by Utility and Program. (Please refer to table below for details). Any underperformance penalties will be

ENROLLMENT DEADLINE Contract must be finalized by the 1st day of the month prior to the operating month. Actual deadline varies by utility.

METERING Each account must have an approved 15-minute interval meter or Smart Meter and approved meter communications equipment

BACK-UP GENERATION SDG&E does not allow use of back-up generation for participation in Demand Response.

CPOWER APP REQUIREMENTS

If curtailable load per account is less than 500kW, the CPower App is optional and customer may request to install it at their cost. In addition, CPower can still choose to install the CPower App at our cost. If curtailable load per account is in excess of 500kW, the CPower App is required and CPower shares the cost with customer.

Other Common Parameters (AMP & CBP)

1. Aggregator Managed Portfolio (AMP) –SCE Only

2. Base Interruptible Program (BIP) – Only available in PG&E Service Territory

3. Capacity Bidding Program (CBP) – Available in SCE, SDG&E and PG&E Service Territory

Program Parameters in the CAISO Region

BASELINE

Summer Potential Load Reduction (PLR) is based upon the average monthly demand during On-Peak hours (on-peak kWh divided by on-peak hours) excluding any days where customers participated in a DR event. Winter Potential Load Reduction (PLR) is based upon the average monthly demand during Partial-Peak hours (partial-peak kWh divided by partial-peak hours) excluding any days where customers participated in a DR event.

COMPENSATION Capacity Payment: Seasonal payment based upon the difference between the applicable Summer or Winter monthly PLR and the Firm Service Level.

SETTLEMENTS Customers receive seasonal payments based on the difference between their seasonal baseline value and their Firm Service Level (FSL) kW, adjusted by performance.

COMPLIANCE Customers are required to comply with all relevant rules and regulations.

UNDER AND NON-PERFORMANCE

Failure to reduce usage below FSL results in penalty payments back to PGE at a specified $/kWh amount. Penalty payments will be netted against customer payments to reduce risk of out of pocket expenditures.

ENROLLMENT DEADLINE Contract must be finalized by the two months in advance of first performance month.

METERING Each account must have an approved 15-minute interval meter and approved meter communications equipment installed and operating at least 10 days prior to participating in the programs in order to establish a valid baseline.

BACK-UP GENERATION In PG&E territory, customers may achieve load reduction by operating back-up or onsite generation if they can meet all environmental and other regulatory requirements for the operation of such generation.

CPOWER APP REQUIREMENTS

If curtailable load per account is less than 500kW, the CPower App is optional and customer may request to install it at their cost. In addition, CPower can still choose to install the CPower App at our cost. If curtailable load per account is in excess of 500kW, the CPower App is required and CPower shares the cost with customer.

Adjusted Capacity Payment Calculations

Parameters Applicable to PG&E BIP

Local Dispatch

SCE’s AMP and CBP programs can be dispatched either at system-wide level or sub-zonal level.

Similarly, PG&E’s CBP program can be dispatched either at system-wide level or sub-zonal level. Note: SDG&E CBP program can

only be dispatched at system-wide level.

Testing Requirements

Event History (2013-2015)

Per CPUC guidelines SCE is required to call an event for the AMP program – they usually call in May. Poor test results from

weather sensitive customers usually lead to a second Cpower called test in late June. No CBP programs have such mandatory

requirement.