1 Southern California Edison Demand Response Programs Join thousands of businesses that work with us to reduce peak electricity use when California needs it most. By participating in Demand Response programs, you can earn rate discounts, incentive payments, bill credits, and more that can help you get the best return out of every energy dollar you spend. Supply Capacity / Customer Demand (MW) 12am 1am 2am 3am 4am Supply Impact of Shifting Load During a Demand Response Event 5am 6am 7am 8am Time of Day 9am 10am 11am 12pm 1pm Electricity Use, No Action 2pm 3pm 4pm 5pm Peak Hours 6pm 7pm 8pm 9pm 10pm Reducing Electricity Use during Peak Hours 11pm FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.
2 price-responsive Program Name Program Description Capacity Bidding Program (CBP) A flexible bidding program in which participants are paid a monthly incentive to reduce load by a pre-determined amount during CBP events with day-of or day-ahead notification. Customers may also participate through a third-party Curtailment Service Provider (CSP). See Programs for Aggregation on the back panel. Critical Peak Pricing (CPP) The CPP rate offers a discount on your monthly on-peak demand charges during the summer months. When electricity demand and prices climb, SCE will activate CPP events, during which your energy charges will increase significantly. However, if you can reduce or reschedule usage to lower-demand times of day during these events, CPP may help lower your electric bill. Eligibility Bundled service, Direct Access and Community Choice Aggregation customers, and third-party CSPs of these customers. Bundled service customers with a maximum demand of greater than 200 kw. Incentive Payment Participants receive a monthly incentive payment based on the amount of load reduction (capacity) nominated each month, plus payments for actual energy reduction, based on kilowatt hours (kwh), when an event is called. Payments vary based on month, product and participation level.*** Participants receive 1) significantly-reduced summertime on-peak demand (kw) charges, and 2) bill protection for the first 12 months. Penalties for Non-Compliance Customers receive a reduced incentive payment (capacity) for less than full load reduction, and penalties apply when the load reduction is less than 50% of nominated load.. However, energy charges are significantly higher during CPP events than during other summer hours. Operating Months May 1 - October 31 June 1 - October 1 Curtailment Window Weekdays from 11:00 a.m. - 7:00 p.m., excluding holidays Weekdays from 2:00 p.m. - 6:00 p.m., excluding holidays Event Trigger When SCE s thermal unit heat rate reaches 15,000 btu/kwh on a day-ahead or day-of basis* When SCE s thermal unit heat rate reaches 15,000 btu/kwh on a day-ahead basis* Event Notification Participants are notified via the CBP Web site by 3:00 p.m. the day before an event, or approximately three hours before a day-of event. Participants may request to receive courtesy notifications by phone, pager or . SCE notifies participants by 3:00 p.m. the day before a CPP event, by phone, pager or . Curtailment Required Limits to the Frequency of Events Not required; however, customers should curtail to the amount of capacity nominated each month, to eliminate penalties and reduced incentives. No more than 1 event per day, and a maximum of 24 hours per month. Not required; however, customers should reduce load during events, to lower the impact of higher energy charges. A minimum of 9 and maximum of 15 events. Term of Commitment Where to Find More Information Enrolled through SCE: 12 months. Enrolled with a third-party CSP: Check with each individual third-party CSP, as they may have different term requirements. * Typically, this forecast occurs when constraints are impacting the system or when there are extreme or unusual temperature conditions. ** SCE can also call an event due to other ISO or SCE system emergencies, which include but are not limited to day-ahead load or price forecasts, supply resource limitations, a generating unit outage, transmission constraints, or for other needs. *** Direct Access (DA) and Community Choice Aggregator (CCA) customers should review the CBP tariff in regards to energy payments. Energy payments are not available for load reductions from DA or CCA customers.
3 programs Demand Bidding Program (DBP) SCE s Demand Response Programs Real Time Pricing (RTP) Pumping & Agricultural Real-Time Pricing (PA-RTP) Agricultural and Pumping Interruptible (API) A voluntary bidding program that offers bill credits for reducing power when a DBP event is called, with either day-ahead or day-of notification (there are no penalties for this program). RTP rates are beneficial to customers who have the flexibility to manage or reduce energy usage based on temperature-driven pricing variations. With Rate Schedule RTP-2, customers are billed hourly electricity prices that vary based on the time of day, season and temperature. Agricultural and Pumping Interruptible rate that offers a monthly credit to customers who allow SCE to temporarily interrupt electric service to their pumping equipment. Bundled service, Direct Access and Community Choice Aggregation customers, whose monthly maximum demand is 200 kw or greater. Customers may have accounts less than 200 kw if they are part of an aggregated group that has at least 1 account that is over 200 kw. Bundled service customers whose monthly maximum demand is greater than 500 kw. Also, all bundled service Agricultural and Pumping customers are eligible for PA-RTP. Bundled service, Direct Access and Community Choice Aggregation customers on an eligible agricultural rate schedule, with an annual demand of greater than 37 kw, or a pumping motor with greater than 50 hp. Due to a program MW cap, new enrollments may be placed on a waiting list and processed on a first-come, first-served basis. Credits offered for fulfilling 50%-200% of bid: $0.50 per kwh reduced for day-ahead events, and $0.60 per kwh reduced for day-of events. See tariff for CCA and DA customers. ; however, hourly energy rates vary by temperature and time of day (please see tariff). Participants receive a year-round monthly bill credit per kwh.. However, energy charges become increasingly higher during peak time periods and when the temperature is high. TOU account participants receive a year-round capacity credit, based on average peak period demand during a billing period (on-peak and mid-peak). Non-TOU Account participants receive a year-round bill credit, per kwh. Weekdays from 12:00 p.m. - 8:00 p.m., excluding holidays 24 hours a day, 7 days a week, 365 days a year 24 hours a day, 7 days a week, 365 days a year Day-Ahead Event: When SCE reaches a thermal heat rate of 15,000 btu/kwh* Day-Of Event: CAISO-issued Stage 1 Emergency event or higher** Day-ahead temperature at Downtown Los Angeles, as recorded by the National Weather Service. When CAISO determines a Stage 1 Emergency is imminent after issuing a warning, or for a Stage 2 Emergency** Day-Ahead Event: By 12:00 p.m. the day before an event. Day-Of Event: After a Stage 1 Emergency event is called, but no later than 6:00 p.m. on the day of an event. Participants are notified of an event via the customer s designated telephone line (as a courtesy, phone, pager, fax or notifications may also be arranged). Customers monitor day-ahead temperatures. Temperature information is available at As a courtesy, phone, pager, fax, , or text messaging notifications may be arranged. To be eligible for incentives, participants are required to reduce a minimum of 30 kw for individual accounts, and a minimum of 100 kw for aggregated groups. Curtailment is at the customer s discretion. Participants are required to reduce 100% of their load during an event. A maximum of 1 event per day (up to 6 hours), 4 events in any calendar week (up to 40 hours per month), and 25 events per calendar year (up to 150 hours). Customers may opt-out of their contract once per year during the annual adjustment window (window runs from November 1 through December 1). select RTP-2 or PA-RTP
4 RELIABILITY programs Time-of-Use Base Interruptible Program (TOU-BIP) Summer Discount Program (SDP) Program Name A program for customers who can reduce their electrical usage to a pre-determined amount, also called the Firm Service Level (FSL), within 15 or 30 minutes of notice. In return, customers receive a monthly capacity credit. Customers may also participate through a third-party CSP. Please see Programs for Aggregation on the back panel. SDP provides a bill credit to customers during the summer season. In exchange, customers allow SCE to temporarily turn off, or cycle their central air conditioner compressor(s) during periods of peak demand, when directed to do so by CAISO or SCE. Program Description Bundled service, Direct Access and Community Choice Aggregation customers, and third-party CSPs of these customers. Customer monthly maximum demand must be greater than 200 kw. Customers must commit to curtail at least 15% of their maximum demand, which shall not be less than 100 kw per period of interruption. Due to a program MW enrollment cap, new enrollments may be placed on a waiting list and processed on a first-come, first-served basis, depending on program availability and the size of a customer s load. Participants receive capacity payments that vary based on the season, time of day (on-peak or mid-peak hours), voltage level, participation option (option A or B) and FSL. The total monthly credit is based on the difference between the customer s average peak period demand during a billing period and their selected FSL. Bundled service, Direct Access and Community Choice Aggregation customers. Enrollment is subject to adequate signal strength of the SDP device, availability of the control device and the air conditioner s acceptable operating condition. Due to a program MW enrollment cap, new enrollments may be placed on a waiting list and processed on a first-come, first serve basis. A monthly credit, based on the tonnage of the air conditioning unit and the selected cycling strategy. Eligibility Incentive Payment Excess energy charges are incurred for failure to reduce to the FSL. Penalties for Non-Compliance June 1 to October 1 Operating Months 24 hours a day, 7 days a week, 365 days a year 24 hours a day, 7 days a week Curtailment Window When CAISO determines a Stage 1 Emergency is imminent after issuing a warning, or for a Stage 2 Emergency** When CAISO determines a Stage 1 Emergency is imminent after issuing a warning, or for a Stage 2 Emergency** Event Trigger Option A: Reduce load within 15 minutes of an event notification. Option B: Reduce load within 30 minutes of an event notification. Participants are notified of an event via Remote Terminal Unit (RTU) and dedicated, unlisted telephone line (as a courtesy, phone, pager, fax or notifications may also be arranged). Event Notification Participants should curtail to their FSL. The SDP device will automatically turn the air conditioner compressor off during events. Curtailment Required A maximum of one event per day, six hours per event, 10 events per calendar month and 120 hours per calendar year. SCE, at its discretion, may call a test event at any time during the calendar year. Customers or third-party CSPs may request to adjust their FSL, change their participation option, or opt out of their contract once per year during the annual adjustment window (the window runs from November 1 through December 1). Base Program = 15 events Enhanced Program = unlimited events Event duration can be up to 6 hours Limits to the Frequency of Events Term of Commitment Where to Find More Information
5 To Learn More SCE offers a variety of Demand Response programs and services that can help reduce your business energy costs, manage your energy consumption and help SCE maintain grid reliability, with little to no impact to your business. For more infomation, contact your SCE account representative today. They ll discuss opportunities for load reduction and help you design an effective electricity reduction strategy that is right for your company. If you re not sure if your business qualifies for these programs, or if you simply have questions, call your SCE account representative or the Demand Response Helpline at (866) You can also read more about SCE demand response programs at Other Demand Response Programs, Rates and Offerings Technical Assistance and Technology Incentives Program (TA&TI) Automated Demand Response (Auto DR) Demand Response Contracts (DRC) A Demand Response incentive program that provides eligible commercial, industrial and agricultural customers free Demand Response facility audits, and reimbursements of up to $250 per kw of verified load reduction, for the purchase and installation of qualifying technologies that reduce electricity usage during Demand Response events. For details, please visit Auto DR is an option within the TA&TI program that allows customers, with a qualifying energy management or automated load control system, to automatically reduce electrical load upon receiving a signal from SCE s Demand Response server. Customers can receive incentives of up to $300 per kw of verified load reduction for Auto DR technology. This option is available to customers who participate in Auto DR-qualifying demand response programs. To find out more, please visit Refers to contracts between SCE and third-party Curtailment Service Providers (CSPs) who develop their own demand response programs and provide load reductions to SCE. When SCE calls a DRC event, third-party CSPs are responsible for dropping electrical load on an aggregated portfolio basis, based on their agreement with SCE. Customers enter into individual arrangements with third-party CSPs, and are compensated by the third-party CSP under the terms of their agreement. Bundled service, Community Choice Aggregation and Direct Access customers on commercial and industrial rates are eligible to participate. Customers must have an interval meter and may not be on any other SCE Demand Response program. Enrollment is available through authorized third-party CSPs, who are responsible for qualifying and enrolling customers to participate in their programs. To see a list of authorized third-party CSPs, please visit Programs for Aggregation Enrollment for the BIP and CBP programs is available through direct enrollment in SCE s tariffed programs, or via third-party CSPs, who offer their own terms and conditions to customers to aggregate customer load and make it available to SCE s BIP or CBP programs for reduction or interruption. The demand of the Aggregated Group must be at least 200 kw for BIP, while for CBP, there is no minimum. During an event when load reductions are requested by SCE, the third-party CSPs must ensure that their Aggregated Groups reduce load in accordance with the BIP or CBP program requirements, or be subject to penalties. If the Aggregated Group performs as required, the third-party CSP receives a payment from SCE. SCE has no involvement in the contractual relationship (including contract terms and conditions) between a third-party CSP and a customer. To see a list of BIP third-party CSPs, please visit and select TOU-BIP Aggregation. To see a list of CBP third-party CSPs, please visit and select CBP List of CSPs. Scheduled Load Reduction Program (SLRP) Provides a bill credit per kwh of qualified load drop to bundled service customers who complete a contract to reduce load by a predetermined amount on pre-selected weekdays, during summer season hours (June 1 through September 30). Customers with average monthly demand of 100 kw or greater must reduce at least 15% of maximum demand (but not less than 100 kw) for each hour during pre-scheduled days and times. Other reduction amounts may be selected from one of three optional timeframes. Customers may only opt out once per year during the November window. For details, please visit Summer Discount Plan (SDP) The Summer Discount Plan (SDP) provides a bill credit to customers during the summer season (June 1 to October 1). In exchange, customers allow SCE to temporarily turn-off, or cycle, their central air conditioner compressor(s) during periods of peak demand, when directed by the California Independent System Operator (CAISO) or SCE. To find out more, please go to
6 Energy Management Tips Commercial Industrial Shopping Hotels/ Agricultural Buildings Buildings Malls Restaurants Motels Hospitals Facilities Turn off decorative lighting Turn off decorative fountains Turn off non-essential lighting Raise thermostat cooling settings Reduce use of multiple elevators Delay dishwashing Delay laundry processes Turn off ice machines Delay use of battery chargers Turn off non-essential pumping 4 4 Glossary A Quick Guide to Demand Response Terms Bundled Service Customers who receive electric power, transmission, distribution, billing, metering and related services from SCE. Capacity The amount of electrical power that can be generated, consumed, or reduced in a moment. Capacity Payment Payments SCE provides to customers in exchange for having capacity available when required. Community Choice Aggregation (CCA) Service In certain areas, customers can elect to allow their cities, counties, or groups of cities and counties, to be responsible for the generation portion of their electric service. Third-Party Curtailment Service Provider (CSP) A third-party contractor authorized to combine the load reduced by multiple enduse customers for their own program. The contractor may also, for an SCE Demand Response program, combine load reduced during periods of peak demand, high wholesale electrical prices, system constraints or emergencies. The contractor then makes it available to SCE for load reduction or interruption. Demand Refers to the highest 15-minute average of electricity used by a customer in a billing period. Also expressed as kw or kilowatt. Direct Access (DA) Refers to customers receiving generation from an Energy Service Provider (ESP) rather than SCE. Firm Service Level (FSL) The amount of electricity a TOU-BIP customer determines is necessary to meet their operational requirements during a TOU-BIP event. Interval Data Recorder (IDR) Meter A meter that measures electrical consumption for specific time increments within a billing cycle. Such meters generally record usage data for 15-minute increments. Kilowatt Hour (kwh) The basic unit of electric energy equal to one kilowatt of power used for a period of one hour. Also expressed as energy. Mid-Peak Typically refers to 8 a.m. to noon, and 6 p.m. to 11 p.m. summer weekdays (except holidays) and 8 a.m. to 9 p.m. winter weekdays, except holidays. During these times, you pay a moderate price per kilowatt-hour. Off-Peak Refers to all hours, other than what is defined as On- and Mid- Peak. During these times, the price of power is lowest. On-Peak Typically refers to noon to 6 p.m. summer weekdays, except holidays. The summer season runs from June 1 through October 1. During these times, you pay the highest price per kilowatt hour. This fact sheet is meant to enhance your understanding of SCE s demand response programs. It does not replace pricing information contained in the CPUC-approved tariffs. Please refer to the tariffs, which can be viewed online at for a complete list of terms and conditions of service. Printed on recycled paper NR-576-V