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 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 Response Service 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?