1. California Roundup: Summary of DR Activity in California John Goodin Lead, Demand Response 2008 National Town Meeting on Demand Response June 3, 2008

2. 2 California Energy Action Plan The “loading order” identifies energy efficiency and demand response as the State’s preferred means of meeting growing energy needs. The 2008 Energy Action Plan update lists several key DR related action items: A dopt load-management standards to achieve a demand response infrastructure. Utilize advanced metering, tariffs and automated DR infrastructure in the development of DR programs. More progress on dynamic pricing rate design reform for all customer types. Develop DR load impact and cost-effectiveness protocols. Modify retail programs to more fully participate in the CAISO’s wholesale market structure.

3. 3 Retail Activity CEC Load Management Standards Proceeding CPUC Demand Response Proceeding Utility 2009-2011 DR Program Applications Development of Dynamic Tariffs Large Scale Deployment of AMI

4. 4 Regulatory Proceedings in California- CEC CEC Load Management Proceeding (08-DR-01)  Explore and consider any rate tariffs, equipment, software, automatic technologies, and other measures and regulations that would be appropriate to achieve a price-responsive electricity market  Explore the coordination of regulatory authority of demand response efforts across investor owned and publicly owned utilities in the state

5. 5 Regulatory Proceedings in California- CPUC CPUC Demand Response Rulemaking (R.07-01-041)  Load Impact Protocols Long-term planning and Resource Adequacy purposes Day-to-day operational and procurement needs (CAISO and utility)  Cost-effectiveness Protocols  Goals Proposed decision due out shortly  Integration with CAISO Market Design  Utility DR program applications for 2009-2011 Filed yesterday (June 2 nd )

6. 6 California’s Full Deployment of AMI

7. 7 Wholesale Activity Driving the need for Market Integration Demand Response Working Groups Enhanced Functionality in New Market Design

8. 8 Load Duration Curve: 2007-2008

9. 9 Integrating Intermittent Renewable Resources CAISO Wind Generation July 2006 Heat Wave 0 200 400 600 800 1,000 1,200 07/16/06 07/17/06 07/18/06 07/19/06 07/20/06 07/21/06 07/22/06 07/23/06 07/24/06 07/25/06 07/26/06 MW Wind GenerationWind Generation at Peak Total Wind Generation Installed Capacity = 2,648 MW Wind Generation at Peak

10. 10 Retail – Wholesale Integration in California Five (5) Working Groups and the Lead Agency:  Vision for Demand Resources- CPUC  DR Participation in MRTU Release 1 - CAISO  DR Participation in MRTU Post Release 1- CAISO  Demand Resource Product Specification- CEC  Infrastructure for Demand Resources- CEC

11. 11 Proposed CAISO Market Design Enhancements Model DR with the Flexibility of a Generator

12. 12 Questions? Contact Info: John Goodin (916) 608-7154 jgoodin@caiso.com