Without Critical Reforms, Demand Response Programs are Not Ready to Scale

Overview

After a thorough review of California’s demand response performance to date and program requirements, the Public Advocates Office concludes that the state’s current demand response portfolio may erode grid reliability, unnecessarily raise customer bills, and negatively affect local air pollution in communities. We recommend that policymakers: (1) align demand response programs with minimum reliability requirements established by the state’s grid operator, (2) eliminate payments to non-compliant demand response providers and phase out ratepayer funding of cost-ineffective programs, and (3) establish stronger protocols to ensure that demand response does not increase local air pollution through the use of more on-site diesel or other fossil fuel backup generator use.

Download: Without Critical Reforms, Demand Response Programs are Not Ready to Scale