380.6.
(a) (1) For purposes of this section, the following terms have the following meanings:(A) “Appropriate valuation” has the same meaning as that term is used in subdivision (j) of Section 380.
(B) “Base interruptible program” means the voluntary demand response program administered by the large electrical corporations that offers participating customers a monthly capacity bill credit for committing to reduce their electricity use to a minimum predetermined level within an hour after receiving notice during emergency situations.
(C) A “demand response resource” is a resource used to respond to conditions of elevated load, which can be either of the following:
(i) A supply resource that is integrated into the Independent System Operator energy markets that provides local, flexible, or system capacity that is triggered when needed, and where needed, in response to elevated load.
(ii) A load-modifying resource that reshapes or reduces the net load curve of an electrical corporation to manage load given the prevailing supply conditions.
(D) “Large electrical corporation” has the same meaning as defined in Section 3280.
(E) “Load-modifying demand response resource” means a demand
response resource as defined in clause (ii) of subparagraph (C).
(F) “Load-serving entity” has the same meaning as defined in Section 380.
(G) “Supply resource demand response” means a demand response by a demand response resource as defined in clause (i) of subparagraph (C).
(b) (1) The commission’s authority pursuant to Section 380 to establish resource adequacy requirements and to ensure appropriate valuation of demand response resources while considering how the demand response resources further the reliability of the state’s electrical grid and the state’s goals for reducing emissions of greenhouse gases is determinative, and the Independent System Operator’s role pursuant to Section 380
is advisory only.
(2) This subdivision is declaratory of existing law.
(c) (1) The base interruptible program shall be administered by the large electrical corporations and available to qualifying commercial and industrial
customers regardless of the load-serving entity that is that customer’s supplier of electricity.
(2) The minimum incentive levels pursuant to the base interruptible program for the 2023 calendar year shall be those applicable within the service territory of each large electrical corporation during 2018, adjusted for inflation using a price index determined by the commission to be appropriate. The Beginning January 1, 2024, the commission may approve increased or decreased incentive levels
if the commission determines that those increased incentives are reasonably necessary to ensure continued participation by eligible customers, within the
upper limits established by the commission, and are sufficient to ensure continued delivery of resource adequacy and adequacy, and to ensure expected ratepayer benefits. The commission may approve decreased incentive levels if the commission determines that those decreased incentives are reasonably necessary to ensure continued expected ratepayer benefits, within lower limits established by the commission, and are sufficient to ensure continued participation by eligible customers.
(3) (A) The commission shall ensure appropriate
valuation of the base interruptible program through continued use of the load impact protocols or a similar, rigorous methodology that takes into
consideration actual, historical performance.
(B) The commission shall consider revising the categorization of the base interruptible program from a supply resource demand response to a load-modifying demand response resource by September December 31, 2022. If the commission revises the categorization of the base interruptible program, the commission may adjust incentives and the incentive structure, if determined to be appropriate for a load-modifying resource.
(C) The commission shall address customer fatigue as it pertains to
continued participation in the base interruptible program either with authorization of higher incentives for events called on three or more consecutive days, or reinstatement of the prohibition of more than three consecutive days with base interruptible program events by September 31, 2022, or other measures determined to be reasonable by the commission.
(d) The commission shall implement a pilot economic demand response program or optional rate design, to be administered by the large electrical corporations, in which base interruptible program participants may elect to
participate. The pilot program shall be designed as part of an electrical corporation’s Phase II application for its general rate case or rate design window application, and made operational for a three-year period. The commission shall ensure that participation in the pilot program comports with reasonable dual participation rules to prevent double payments for the same demand response if events overlap. The pilot program shall be conducted in compliance with the requirements of Section 380.5.
(e) This section shall not apply to a large electrical corporation that had less than a five-megawatt load reduction from enrolled base interruptible program customers as reported by the electrical corporations in their program year 2019 ex-post load impact reports filed April 1, 2020.