2024 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 2024 DRAM RFO. The 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.”) 23-01-006 – Decision Approving Demand Response Auction Mechanism Pilot for Pilot Year 2024, issued on January 13, 2023, by the Commission, ordered the Utilities to submit a Tier 1 Advice Letter by June 1, 2023 with DRAM executed contracts for 2024 deliveries.
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.
Key RFO Documents
This website provides an overview of the market solicitation. Respondents must read the RFO Protocol document to fully understand all aspects of this RFO.
Offerors do not need to submit SDG&E’s version of the DRAM Purchase Agreement (PA) with their Offer; it is for informational purposes only during the bidding phase. For each Shortlisted Offer, SDG&E intends to send the Offeror a redlined version for execution.
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 2023 DRAM.
Non-Binding Schedule for the 2024 DRAM
The following schedule and deadlines apply to this RFO. SDG&E reserves the right to revise this schedule at any time and in SDG&E’s sole discretion. Respondents are responsible for monitoring the RFO Website for updated schedules and possible amendments to the RFO or the solicitation process.
Schedule
|
Event |
Date |
|---|---|
|
IOUs Launch 2024 DRAM RFO |
February 13, 2023 |
|
Bidder's Conference Webinar |
February 21, 2023 |
|
Deadline for RFO Bid Submissions @ 12 PM PST |
March 7, 2023 |
|
Request to Cure |
March 14, 2023 |
| Cure Period Ends | March 22, 2023 |
| IOUs Notify Shortlisted Bidders of Selection | April 26, 2023 |
| Deadline for Bidders to Sign Contracts | May 3, 2023 |
| IOUs Submit Tier One Advice Letters with Executed 2024 DRAM Contracts | June 1, 2023 |
CAISO Bidding Information
DRAM winners or "Sellers" providing RA to SDG&E will be solely responsible for registering their proxy demand resources (PDR) at the CAISO and acquiring a resource ID. An initial step of this process is to input customer location information into the CAISO demand response system. SDG&E requires that the Seller obtain customer authority to access historical and ongoing customer specific information which is needed for this CAISO registration process and for energy settlements.
Contact Information
All questions or other communications regarding this Resource Adequacy RFO MUST be submitted via email to BOTH DRAMRFO@sdge.com with a CC to MerrimackIE@MerrimackEnergy.com (Independent Evaluator). All questions and their answers will be posted publicly on this website anonymously soon after receipt. We cannot respond directly to or confidentially to any questions.
Registration and Submission Information
A maximum of 20 offers or offer variations per recipient will be allowed. The RFO and all subsequent revisions and documents are available for download from the RFO Website. Potential Offerors are responsible for monitoring the RFO Website for subsequent updates, notices and postings.
Offerors must submit bids into the 2024 DRAM RFO event on the PowerAdvocate® website. Offerors intending to submit an Offer but who do not yet have an existing account with PowerAdvocate® must first register to create a username/password to receive access to the event. Please review the RFO Protocol document for more information.
Please note that no late bids will be accepted.
Participation from Diverse Business Enterprises
SDG&E encourages Diverse Business Enterprises (“DBEs”), “Women-Owned Businesses” or “Minority-Owned Businesses” or “Disabled Veteran Business Enterprises” as defined in G.O. 156[1], to participate in this All Source RFO. Furthermore, SDG&E encourages developers to utilize DBEs during various stages of project development and construction. As a part of G.O. 156, SDG&E will require developers to identify and verify their DBE contractor/subcontractor spending if any.
Additional information on SDG&E’s DBE program and utilizing DBEs can be found at:
https://www.sdge.com/more-information/doing-business-with-us/supplier-diversity
http://www.cpuc.ca.gov/puc/supplierdiversity/
DBEs can request additional information by contacting SDG&E at vendorrelations@sdge.com.
Solicitation Submittal Documents
Frequently Asked Questions
Pre-Bid Conference Webinar
Bidder's Conference Presentation
SDG&E, SCE, and PG&E will be hosting a conference call for those considering making an offer into this solicitation. Participation in the conference call is not mandatory for those ultimately submitting a proposal.
When: February 21, 2023
Time: 10:00 AM - 12:00 PM PPT