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Program Strategies and Results for California’s Energy Efficiency and Demand Response Markets
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Global Energy Partners provides a review of California’s strategic approach to energy efficiency and demand response implementation, with a focus on the industrial sector. The official role of the state, through the California Energy Commission (CEC), is presented along with special efforts being made in support of industrial end users. The interrelationship between the CEC and the California Public Utility Commission (CPUC) with regard to advancing demand side programs is highlighted. The specific cost recovery mechanisms put in place by the CPUC is discussed, including California’s experience with revenue decoupling, public purpose funds, and avoided cost calculations. Next, the role as energy efficiency (EE) and demand response (DR) program implementer played by each of the state Investor Owned Utilities (IOUs) is outlined. Each utility is responsible for serving major end use market segments with target programs designed to provide unique value. Within the industrial sector, there is special attention paid to the needs of the various sub-markets such as oil refining, agriculture, food processing, water and wastewater, manufacturing, and others. A review is presented of how EE and DR measures are selected, how incentive values are determined, which customers are eligible for programs, and how programs are evaluated to gage effectiveness. Lastly, mechanisms used by the IOU’s to deliver industrial EE and DR incentive programs are discussed. This includes a review of “core” programs administered by the utilities as well as subcontracted programs administered by “third party” implementers and “local government partners”. Global Energy Partners will offer specific examples of program experience in the oil & gas, agriculture, and food processing sectors, and will also highlight program success within the emerging “automated” demand response market.
Ehrhard, R.; Hamilton, G. (2008). Program Strategies and Results for California’s Energy Efficiency and Demand Response Markets. Energy Systems Laboratory (http://esl.tamu.edu); Texas A&M University (http://www.tamu.edu). Available electronically from