2022 DRAM RFO

Overview 

In accordance with Decision (“D.”) 19-07-009 – Decision Addressing Auction Mechanism, Baselines, and Auto Demand Response For Battery Storage issued on July 12, 2019 by the California Public Utilities Commission (CPUC or Commission), San Diego Gas & Electric Company (“SDG&E”) has been authorized to issue its 2021 DRAM RFO. The 2021 DRAM RFO is seeking System, Local and Flexible Resource Adequacy (“RA”) resources via a standard, non-negotiable Demand Response Auction Mechanism Purchase Agreement (“DRAM PA” or “PA”) for execution in accordance with the Request for Offer (RFO) Protocols.

Decision (“D.”) 19-12-040 – Decision Refining the Demand Response Auction Mechanism, issued on December 23, 2019 by the Commission, ordered the Utilities to submit a Tier 2 Advice Letter with a standard contract (the PA) and RFO Guidelines outlining the parameters of the 2022 DRAM pilot. Advice Letter 3608-E was filed on September 15, 2020 followed by Supplemental Advice Letter 3608-E-A on October 19, 2020. Both were approved. Resolution E-5110 issued on December 18, 2020 approved the 2022 DRAM RFO and directed the IOUs to submit a Tier 1 Advice Letter incorporating modifications and including the modified DRAM pro forma. Advice Letter 3674-E was filed on January 19, 2021 and accepted on February 9, 2021.

SDG&E Electric Rule 32 governs how SDG&E manages third party demand response providers (“DRPs”.) The Commission, in D. 19-07-009, has made significant modifications to the past DRAM decisions, which has again authorized SDG&E to put in place certain processes and systems to facilitate a DRP's ability to bid Proxy Demand Resources (PDRs) into the wholesale market. The DRAM PA is subject to the provisions of Rule 32 and any limitations authorized by the Commission relative to its implementation.

The DRAM is a pay-as-bid auction of monthly system, and flexible (with system) RA for Offerors to bid directly in the California Independent Operator System (“CAISO”) market, with participation from customers in the SDG&E’s service territory. Offerors must bid directly into the CAISO energy market and any resulting revenues or liabilities allocated solely to the Offeror. Offeror’s DR resource shall be comprised of a Proxy Demand Resource (PDR) or multiple PDRs that aggregate customers within SDG&E’s Sub-LAP. SDG&E has a single Sub-LAP (as opposed to the other California IOUs that have multiple Sub-LAPs) so, in effect, any SDG&E customer, whether receiving commodity service from SDG&E or an Energy Service Provider, is eligible.

Scheduling Coordinator Request for Information

As part of 2016 DRAM, the IOUs were issued a Request for Information from Scheduling Coordinators open to providing SC services to demand response aggregators. Information provided in response to the RFI, and subsequent updates since, have been made public as part of the 2022 DRAM.

• Scheduling Coordinator Request for Offers (SC RFI)