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Agenda Item 35 & 35-a Resolution E-4127/a

Pacific Gas & Electric Company (PG&E) requests approval of its “Cafeteria Style Menu” (CSM) Demand Response program. Agenda Item 35 & 35-a Resolution E-4127/a. February 28, 2008.

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Agenda Item 35 & 35-a Resolution E-4127/a

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  1. Pacific Gas & Electric Company (PG&E) requests approval of its “Cafeteria Style Menu” (CSM) Demand Response program Agenda Item 35 & 35-aResolution E-4127/a February 28, 2008

  2. Item 35 Rejects PG&E’s Cafeteria Style Menu (CSM) Demand Response program, but allows PG&E to re-submit the program in its 2009-2011 DR portfolio Application • Questions regarding Program Design and Integration with ISO’s Market Design would be better addressed in the context of the 2009-11 portfolio: • Program may not be able to enroll the 42 MW of demand response by October 2008 on which it is justified. • Program design is complex and could create customer confusion when combined with PG&E’s existing DR portfolio • Program could cause customer migration from established DR programs, resulting in little net increase in DR capacity for PG&E. • Alignment with MRTU not fully addressed in AL process • CSM requires a significant up-front ($2 million) IT investment. • Cost-effectiveness of the program can be better evaluated in the context of PG&E’s 2009-11 DR portfolio. The CSM program would offer customers the flexibility to choose the DR program attributes (such as event duration, notification time, number of events, and customer commitment level) that they prefer from a menu of options.

  3. Item 35-a Approves PG&E’s Cafeteria Style Menu (CSM) Demand Response program for 2008 Item 35-a would authorize PG&E to implement CSM with the following modifications: • Adds more flexibility to the program design by allowing customers to adjust their capacity commitments on a monthly basis. • The Information Technology (IT) system for CSM must be sufficiently flexible to allow it to be used to manage and operate existing and future DR programs. • PG&E will file monthly reports to Energy Division on program enrollment, customer migration (from other DR programs) and load impacts. • PG&E will perform an evaluation of CSM, focusing specifically on its website interface, its marketing/outreach activities and overall customer satisfaction with the enrollment process and the program.

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