California Public Utilities Commission selects ConsumerPowerline contracts for superior program design and cost-effectiveness
ConsumerPowerline, Inc. (www.consumerpowerline.com), a leading strategic energy asset management firm, today announced that the California Public Utilities Commission (CPUC) has approved its executed contracts for third party demand response resources for Southern California Edison (SCE) in central, coastal and southern California, for the 2008 – 2012 time period. SCE was advised by the CPUC that it had approved ConsumerPowerline's contracts based upon individual cost-effectiveness scores and "pay for performance" demand response business model.
Known as "Ancillary Services Coalition"* in California, ConsumerPowerline is one of the largest non-utility providers of demand response solutions.
The CPUC reviewed eight demand response contract proposals from SCE in January, and scored each contract by how the solutions provided firm, reliable price responsive resources. On March 13, the CPUC filed its final decision approving four of the eight contracts, stating, "We note that the two Ancillary Services Coalition, LLC Contracts have the highest individual cost-effectiveness scores and are structured in a superior way to the other contracts such that a greater portion of incentive monies earned is through program participation performance, as opposed to enrollment of capacity."
With the SCE contracts, ConsumerPowerline will provide demand response services to its electricity customers, enabling customers to participate and reduce their electricity consumption during critical times. This process will help reduce energy usage on the grid, and in return, electricity end-users will receive payments for their participation. "We are extremely pleased that the CPUC has approved these two contracts with ConsumerPowerline," said Lawrence Oliva, SCE director of tariff programs and services. "We are strong supporters of business arrangements with third party providers like ConsumerPowerline as they afford SCE an efficient and cost-effective mechanism to reduce peak energy use while providing customers with adequate compensation for their participation in the program."
The capacity nominations under the SCE and ConsumerPowerline contracts grow over time up to 95 megawatts in the summer of 2012.
"Now that demand response solutions are more widely deployed as critical assets in providing reliability efficiently, the business approach needs to provide cost-effective value to all stakeholders – participants, operators, and most of all, ratepayers," noted Gary Fromer, CEO of ConsumerPowerline. "Our focus is always to deliver innovative solutions that achieve wide participation at the least cost to stakeholders."