White Paper by CPUC Staff

Published: September 20, 2022

California’s electricity system is undergoing rapid transformation on the pathway to 100% renewable power, with the expected high penetration of renewables, electrification of buildings and transportation, and deployment of behind-the-meter (BTM) distributed energy resources (DERs). Many stakeholders are concerned about potential adverse impacts of these trends on the State’s power grid (see section 3.1) and agree that going forward it is essential for California to leverage demand response (also referred to as load or demand flexibility management) as a critical resource in integrated resource planning (IRP) to meet the State’s aggressive GHG emissions reduction targets.

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Advanced Strategies for Demand Flexiblity Management and Customer DER Compensation

California’s electricity system is undergoing rapid transformation on the pathway to 100% renewable power, with the expected high penetration of renewables, electrification of buildings and transportation, and deployment of behind-the-meter (BTM) distributed energy resources (DERs).

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The middle row shows the tendered retail electricity price in $/kWh for the next 5-minute, 15-minute and one-hour intervals up to the last hour of tomorrow. The start time for each interval is shown in the top row. The prices use current wholesale California ISO locational prices for the Moorpark Southern California Edison transmission substation augmented by scarcity prices for distribution, resource adequacy and flexible resource adequacy based on an experimental tariff. The bottom row shows the forecasted marginal Lbs of CO2 or Green House Gases (GHG) released per kWh for the same intervals. The CHG estimates are from WattTime.org. The ticker automatically updates from time to time based on the California ISO publication schedule.