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Brea, CA, May 17, 2007 -- In a move state leaders say may well help make California's history of summer blackouts a thing of the past, the state has re-launched and restructured its demand response energy curtailment program, formerly known as the Demand Reserves Partnership (DRP), under the name, Capacity Bidding Program (CBP). Beyond the name change, officials say there has been an effort to rid the program of the inefficiencies and disincentives that plagued it in the past with one goal in mind -- to leverage demand response strategies that have helped other cities and states mitigate power failure.
In New York, Massachusetts and other parts of the country, demand response programs have been credited with helping to avoid blackouts by kicking in needed supply during a power emergency, while also generating revenues totaling millions of dollars for the commercial, industrial and residential buildings that participate.
Armed with a track record in those states, and with a commitment to keep California from going dark, ConsumerPowerline (CPLN), a demand response provider, and Ancillary Services Coalition (ASC), its fully-owned subsidiary, worked with the California Public Utilities Commission (CPUC) and the regional electric utilities to restructure demand response in the Golden State. Among the changes: guidelines that now allow for higher rates, more equitable time notifications, and basic program modifications, such as how often participants can be called upon to "shed load." These changes are modeled after successful programs throughout the country like the one implemented in New York City.
The Capacity Bidding Program offers qualified facilities guaranteed payments for agreeing to reduce load (lighting, HVAC, escalators/elevators, pumps and manufacturing equipment) when a CBP "Emergency Event" is called. Participants make monthly bids/nominations and receive capacity payments based on the amount of electricity available for reduction each month regardless of whether or not an event is called, as well as energy payments based on their kilowatt-hour energy use reduction when an event is called. The amount of capacity reduction can be adjusted on a monthly basis.
Demand Response is an electricity incentive program where large energy consumers are paid to give back a small portion of their non-essential energy supply to the energy grid in an emergency - by strategies such as shutting off non-critical lighting or barely used elevator banks, pre-cooling a building and switching to on-site generators.
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