Direct Participation Demand Response Tariffs

1. Direct Participation Demand Response Tariffs Demand Response Phase IV Workshop March 21, 2011

2. What Is Covered In Rule 24?

3. Section A – Applicability • Generally describes the purpose of the rule and its intended audience. • PG&E customers who are participating in the direct participation wholesale market. • Load Serving Entities (LSEs) – PG&E, Energy Service Providers (ESPs) and Community Choice Aggregators (CCAs) • Demand Response Providers (DRPs)

4. Section B – General Terms • Generally used definitions within the rule. • Broad description of the role to be played by the various entities, their general obligations and liabilities connected with providing demand response activity services. • Defines metering and meter data management requirements.

5. Section C – Accessibility Of Customer Data* • Requirements for the release of confidential customer information to potential DRPs. • Allows for the on-going release of customer-information to their DRP without further authorization from the customer. • Treatment of customer inquiries regarding charges from the various entities, emergency situations or outages. • * To be determined based on the forthcoming Commission decision on customer privacy standards and protections in Smart Grid OIR, R. 08-12-009. Proposed Decision expected by end of March, 2011

6. Section D - DRP Service Establishment • Closely follows the model established by the Commission for ESPs. • Requires the DRP to register with the Commission. • Requires the DRP to execute a service agreement with the utility distribution company (UDC) and complete EDI testing. • Requires the DRP to establish the credit with the UDC.

7. Section E - Demand ResponseService Request (DRSR) • Closely follows the model established for the Direct Access market. • DRSRs are used by DRPs to electronically enroll and unenroll customers from a demand response program. • Describes the process for DRSR submittal and acceptance.

8. Section F- Independent Verification • Follows the model established for the Direct Access market. • Requires DRPs to use an independent verification process prior to enrolling residential and small commercial customers.

9. Section G – Metering Services • Metering Services are defined as Meter Ownership, Meter Services (installation, maintenance, and testing), and MDMA services. • Rule maintains current metering service relationships for customers.

10. Section H – Involuntary Service Changes • Addresses service election changes due to either the DRP’s or customer’s failure to meet its obligations under defined circumstances and potential remedies.

11. Section I - Service Disconnections And Reconnections • Generally addresses issues related to a customer having their service disconnected for non-payment under the UDC’s tariffs (ref. Rule 8 - Notices, and Rule 11 - Discontinuance and Restoration of Service).

12. Section J – Credit Requirements • Requirements for establishing or reestablishing credit with the UDC. • Credit may be established through a Credit Evaluation or a Security Deposit. • Security Deposits may take different forms including cash deposits, letters of credit, surety bonds or the use of a guarantor.

13. Section K - Financial Settlements • Primarily talking points. • Would require the DRP to compensate the Utility, if acting as the LSE, for any CPUC-approved financial charges incurred as a result of Demand Response participation in the CAISO markets. • Drafted prior to the recent FERC Order 745 on Demand Response Compensation In Wholesale Markets.

14. DRP Service Agreement • Modeled On the ESP Service Agreement. • Most of the terms and conditions for program participation are covered in the Rule. • The service agreement establishes a contractual arrangement between the parties in the event of a dispute.

15. Questions?