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[California Energy Commission Letterhead]
 

In the Matter of: )      Docket No. 06-IEP-1E
  )        
Preparation of the )        
2007 intregrated Energy Policy Report )      NOTICE OF COMMITTEE
(IEPR) )      WORKSHOP
_________________________________________ )       


Notice of Committee Workshop on Demand Response
and the Energy Commission's Load Management Authority

View Workshop Documents

The California Energy Commission's (Energy Commission) Integrated Energy Policy Report (IEPR) Committee and California Public Utilities Commission (CPUC) Commissioner John Bohn will conduct two workshops to obtain input from all interested parties on issues and opportunities associated with California's demand response and load management for the 2007 IEPR. Chairman Jackalyne Pfannenstiel is the Presiding Member and Commissioner John L. Geesman is the Associate Member of the 2007 IEPR Committee. Other Commissioners may attend and participate in this workshop. The first workshop was held on April 19, 2007; the second workshop will be held:

TUESDAY, JUNE 5, 2007
10 a.m.
CALIFORNIA ENERGY COMMISSION
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California
(Wheelchair Accessible)

Note: Audio from this hearing will be broadcast over the Internet.
For details on listening in, please go to: www.energy.ca.gov/webcast/

Parties unable to attend the June 5, 2007 Committee workshop on California's load
management authority will be able to comment by conference call.

The conference call information is: USA Toll Free Number: 800-857-6618,
Passcode: IEPR, Call Leader: Lorraine White

Purpose

As required by Senate Bill 1389 (Stats. 2002, Ch. 568), the Energy Commission conducts "assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices." The Energy Commission uses these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety. (Pub. Res. Code § 25301(a)) The IEPR is adopted every odd-numbered year by the Energy Commission. Every even-numbered year, the Energy Commission is to prepare an energy policy review to update analysis from the previous IEPR or to raise energy issues that have emerged since the previous proceeding. (Pub. Res. Code § 25302(d))

SB 1389 directs state government entities to carry out their energy-related duties and responsibilities using the information and analyses contained in the adopted report. During the proceeding, the Energy Commission will coordinate closely with other agencies to ensure consistency in the underlying information in this report that is to be used by state agencies in their energy policy decisions.

The IEPR Committee issued its 2007 IEPR Scoping Order on August 2, 2006 identifying demand response and load management tools as key topics to be reviewed.

In conjunction with the CPUC, the Energy Commission is investigating opportunities to expand the state's demand response programs and capture greater benefits from such programs. The Energy Commission has the authority to establish load management standards and is considering using that authority to accelerate the current pace of DR implementation. This statutory authority extends to Investor-Owned Utilities (IOUs) regulated by the CPUC and Publicly Owned Utilities (POUs).

The two workshops planned for this process were intended to address two general categories of topics: The April 19, 2007 workshop focused on reviewing the current state of demand response and load management in the state, identifying barriers to achieving the current demand response goals and raising issues concerning the state's demand response policy from both the customer and utility perspectives. The second workshop, scheduled for June 5, 2007, is focused on potential policy directions and implementation strategies for improving the state's demand response capabilities. In particular, the workshop will explore the role of the Energy Commission's load management authority in implementing the state's demand response policy.

A draft white paper discussing the Energy Commission's load management authority and historical load management efforts, the potential value of demand response in California and ways the Energy Commission's load management authority could be used to achieve the state's demand response goals will be released prior to the workshop. This draft white paper is intended to provide a framework for workshop discussions. Written participant comments on this draft white paper are encouraged; a final white paper reflecting public input will be released following the workshop.

Background

The 2005 IEPR found that the state must address increasing peak demand to improve system reliability and moderate electricity price volatility. Demand response programs are the most promising and cost-effective options for mitigating peak demand impacts. Although demand reduction goals for IOUs have been established, the targets have never been met. The 2005 IEPR recommended that the CPUC and the Energy Commission vigorously pursue actions to ensure that the state's demand response goals are met. Among recommended actions were: developing and implementing dynamic rates for large customers; developing an advanced metering infrastructure; and working with publicly owned utilities to ensure statewide demand response efforts.

Public Resources Code § 25403.5 gives the Energy Commission the authority to adopt electricity load management standards for each utility service area. The statute identifies several techniques that the Energy Commission must consider, but it does not limit the Commission's authority to the techniques identified. These techniques include:

  1. Adjustments in rate structure to encourage use of electrical energy at off-peak hours or to encourage control of daily electrical load. Compliance with those adjustments in rate structure shall be subject to the approval of the Public Utilities Commission in a proceeding to change rates or service.
  2. End use storage systems which store energy during off-peak periods for use during peak periods.
  3. Mechanical and automatic devices and systems for the control of daily and seasonal peak load.

The statute requires that the standards be technologically feasible and cost effective when compared to the cost for new electrical capacity. The Commission is allowed to approve a utility's application for an exemption or delay in implementation, but only upon a showing of extreme hardship, technological infeasibility, lack of cost-effectiveness, or reduced system reliability and efficiency. The Commission adopted load management standards in 1979, and amended them in 1982. This workshop will consider further amendments to the standards.

Workshop Participation and Comments

The IEPR Committee is seeking the participation of interested parties in this workshop and proceeding. The Committee encourages interested parties to present their views either orally at the workshop or through written comments. The Committee will take general comment from the public immediately following presentations.

Written comments must be submitted by 5:00 p.m. on June 15, 2007. Include the docket number No. 06-IEP-1E and indicate 2007 IEPR - Demand Response in the subject line or first paragraph of your comments. The Energy Commission encourages comments by e-mail. Please include your name or organization in the name of the file. Those submitting comments by electronic mail should provide them in either Microsoft Word format or as a Portable Document File (PDF) to docket@energy.state.ca.us.

One paper copy must also be sent to the Energy Commission's Docket Unit. If the original is more than 20 pages, please also provide 35 paper copies to:

California Energy Commission
Dockets Office, MS-4
Re: Docket No. 06-IEP-1E
1516 Ninth Street
Sacramento, CA 95814-5512

Participants may also provide an original and 35 copies at the beginning of the workshop. All written materials relating to this workshop will be filed with the Dockets Unit and become part of the public record in this proceeding.

Additional Information

The Energy Commission's Public Adviser's Office provides the public assistance in participating in Energy Commission activities. If you would like information on how to participate in this workshop, please contact the Public Adviser's Office by phone at (916) 654-4489 or toll-free at (800) 822-6228, by FAX at (916) 654-4493, or by e-mail at pao@energy.state.ca.us. If you have a disability and require assistance to participate in this hearing, please contact Lou Quiroz at (916) 654-5146 at least five days in advance.

The service list for the 2007 IEPR and associated key topic proceedings is handled electronically. Notices and documents for these proceedings are posted to the Energy Commission website http://www.energy.ca.gov/2007_energypolicy/. When new information is posted, an email will be sent to those on the energy-policy email list server. We encourage those who are interested in receiving these notices to sign up for the list server through the website http://www.energy.ca.gov/listservers/index.html.

Questions regarding the 2007 IEPR proceeding should be directed to Lorraine White, IEPR program manager, at (916) 654-4075 or by email at lwhite@energy.state.ca.us. Please direct all news media inquiries to Claudia Chandler, Assistant Executive Director, at (916) 654-4989. For technical questions regarding the subject matter of this workshop, please contact David Hungerford by phone at (916) 654-4906, or by e-mail at dhungerf@energy.state.ca.us.

Date: May 22, 2007

commissioner signature
JACKALYNE PFANNENSTIEL
Commissioner and Presiding Member
2007 Integrated Energy Policy Report Committee
commissioner signature
JOHN L. GEESMAN
Commissioner and Associate Member
2007 Integrated Energy Policy Report Committee

Date Posted: May 25, 2007

Note: California Energy Commission's formal name is State Energy Resources Conservation and Development Commission.

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