Presentation - Heschong Mahone Group

CALIFORNIA STATEWIDE UTILITIES CODES AND STANDARDS PROGRAM10Background● Why Demand Response?● Enhance grid reliability and prevent rolling blackouts● DR is more cost effective than building additional powerplants to meet peak demand (only a few hours annually)● California utilities are moving towards Peak Day pricing● Pass high cost of delivering power during critical periods on tocustomers, rather than average into summer rates● Creates an opportunity for consumers to manage their bills● Studies show that enabling technology provides ~2x theload impact as DR using pricing or incentives alone 1● Customer participation in DR programs and events areVOLUNTARY1. Faruqui and Sergici, “Household Response to Dynamic Pricing of Electricity:A Survey of the Experimental Evidence,” February 15, 2010UST Stakeholder Meeting - WebinarJune 1, 2011