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In December 2014, the California Public Utilities Commission (CPUC) issued Decision (D.) 14-12-024 (PDF), which requires Southern California Edison Company, San Diego Gas & Electric Company and Pacific Gas and Electric Company (PG&E) (collectively, the investor-owned utilities, or IOUs) to design and implement the Demand Response Auction Mechanism (DRAM) Request for Offers (RFO) pilot for 2016 and 2017 capacity (called the 2016 DRAM and 2017 DRAM, respectively). Then D.16-06-029 (PDF) instructed the IOUs to conduct a 2018-2019 DRAM pilot, and D.17-10-017 (PDF) instructed the IOUs to conduct an additional 2019 DRAM pilot. Following the evaluation of the initial DRAM pilots (Final DRAM Evaluation Report (PDF,) and subsequent workshops, the CPUC issued D.19-07-009 (PDF), later modified by D.19-09-041 (PDF), which authorized an auction to take place in 2019 for deliveries between June 2020 and December 2020 ("2020 DRAM"), as well as annual auctions for deliveries in 2021, 2022, and 2023. On December 23, 2019, CPUC issued D.19-12-040 (PDF), which adopted certain recommendations to improve reliability and performance from a stakeholder working group report. These refinements apply to DRAM deliveries beginning in 2021. The findings and recommendations from the DRAM Evaluation Report issued on June 24, 2022, were subsequently presented in a virtual workshop (PDF). On July 5, 2022, a Scoping Memo and Ruling was issued, detailing a phased schedule, with Phase I focusing on a 2024 DRAM Pilot and Phase II addressing the future of DRAM. The Commission issued a Final Decision D.23-01-006 (PDF) on January 13, 2023 approving the 2024 DRAM Pilot with no modifications to the existing DRAM contract and related documents.
The 2024 DRAM is a pay-as-bid solicitation where PG&E is seeking monthly demand response (DR) system, local, and flexible capacity. Sellers will bid aggregated demand response directly into the CAISO day-ahead energy market, and PG&E will acquire the capacity, but will have no claim on revenues the winning bidders may receive from the energy market. The DR resources are required to bid into the CAISO energy market under the CAISO must-offer obligation for DR.
| Event | Date |
|---|---|
| PG&E Issues 2024 DRAM RFO | 02/13/23 |
| DRAM RFO Bidders' Webinar, 10 a.m. (PPT) | 02/21/23 |
| DRAM RFO offer package due by 1 p.m. (PPT) | 03/07/23 |
| PG&E requests that Bidders modify certain non-conforming Offers (Request to "cure") | 03/14/23 |
| Bidder cure period ends | 03/22/23 |
| PG&E notifies Bidders of selection and sends final PA for execution | 04/26/23 |
| Deadline to submit Signed Purchase Agreement(s) to PG&E | 05/03/23 |
| Advice letter submittal for executed PAs | 06/01/23 |
| Event |
|---|
| PG&E Issues 2024 DRAM RFO |
| Date |
| 02/13/23 |
| Event |
|---|
| DRAM RFO Bidders' Webinar, 10 a.m. (PPT) |
| Date |
| 02/21/23 |
| Event |
|---|
| DRAM RFO offer package due by 1 p.m. (PPT) |
| Date |
| 03/07/23 |
| Event |
|---|
| PG&E requests that Bidders modify certain non-conforming Offers (Request to "cure") |
| Date |
| 03/14/23 |
| Event |
|---|
| Bidder cure period ends |
| Date |
| 03/22/23 |
| Event |
|---|
| PG&E notifies Bidders of selection and sends final PA for execution |
| Date |
| 04/26/23 |
| Event |
|---|
| Deadline to submit Signed Purchase Agreement(s) to PG&E |
| Date |
| 05/03/23 |
| Event |
|---|
| Advice letter submittal for executed PAs |
| Date |
| 06/01/23 |