CPUC Direct Participation Workshop Consumer Protection

1. CPUC Direct Participation WorkshopConsumer Protection Mona Tierney-Lloyd January 21, 2011

2. D.10-12-060, Order on Rehearing of D.10-06-002 • Finding of Fact #5 • The Commission will consider what, if any, consumer protection policies should be developed for DRP retail residential and small commercial DR load and services in a subsequent proceeding or phase of this proceeding. • Finding of Facts #11, 12, 13 • The Commission has authority under PU Code Sections 761, 768, 770 for the safety, reliability and maintenance practices that impact public utility service. • The Commission exercises authority over residential and small commercial ESP customers subsequent to PU Code Section 394 • The Commission exercises consumer protection generally under PU Code Sections 451 and 701. • Conclusion of Law #5 • The Commission will consider whether it is reasonable to require the development of consumer protections for residential and small commercial IOU customers that receive DR services from DRPs in connection with the Commission’s statutory authority to ensure the safety and reliability of practices impacting public utility service. • Ordering Paragraph #3 • The demand response load of IOU residential and small commercial retail customers that receive demand response service from DRPs shall not be bid directly into the CAISO’s wholesale market until the Commission either adopts consumer protections, or determines that none are needed. An exception may be made where bidding of the retail DR is allowed as part of a Commission-authorized pilot program.

3. Consumer Protections • CAISO Registration Requirements for DRPs to Participate in PDR • Sign a PDR Agreement (PDRA) with CAISO • Agree to abide by the Tariff; Post Credit • Attest that the RERRA has not prohibited DRP Participation and that the DRP has met any requirements set by the RERRA as a precondition to participate in PDR • CAISO has the ability to terminate for material breach that is not remedied • CAISO can enforce penalties or sanctions/take corrective measures • Identify the associated LSE; Approval of enrollment • Identify the SC • Provide collateral and prove creditworthiness • Knowingly submitting false data or failure to submit meter reads is a breach of CAISO’s Tariff and is a “fraudulent scheme or artifice committed with scienter in connection with a jurisdictional transaction in violation of 18 C.F.R. § 1c.2 (2010)” FERC Order in Docket # IN09-6-000 • Legal recourse through civil courts for contract disputes • PU Code 8380 specifies access to customer data (SB 1476)

4. Consumer Protections • What additional consumer protections are necessary for residential and small commercial customers? • Provide information to consumers about their choices • Refer consumers to a list of registered DRPs at CAISO • Develop complaint resolutions processes • Not apparent the value of duplicative registration requirement at the CPUC in addition to CAISO • No additional consumer protections are necessary to be administered by the CPUC for medium-to-large commercial, industrial or agricultural customers. • Rule 22 • Specifies the relationship and responsibilities between ESPs and IOUs • Commence or terminate service • Metering/billing responsibilities • Allocation of partial payments/service disconnections • Could be value in a similar process for direct participation purposes

5. Mona Tierney-Lloyd P. O. Box 378Cayucos, CA 93430Tel: 415.238.3788Email: mtierney-lloyd@enernoc.com