2016 Demand Response Auction Mechanism (DRAM)

Latest News & Update

Respondents are encouraged to check this RFO Website periodically for updates, notices, and postings.  SDG&E, at its sole discretion, pursuant to orders from the CPUC, may change the terms, requirements and schedule of this solicitation. Respondents should monitor the RFO Website for announcements regarding any updates or changes including posted questions & answers.  SDG&E will post all solicitation announcements, including scheduling changes or RFO amendments to this website.  In particular, check the RFO website for (i) details on the pre-bid conference call and (ii) posting of answers to submitted questions.  

  • 10/23/2015 - Posted the third set of Q&As

  • 10/21/2015 - Posted the second set of Q&As

  • 10/16/2015 - Posted a corrected bidder’s conference Q&As

  • 10/15/2015 - The Q&As for the Bidder’s conference and all questions received through Monday 10/12 are now available

  • 10/07/2015 - For reference, here is the link to SDGE’s CISR form that needs to be filled out and signed by each customer and can be mailed to cisr-drp@semprautilities.com.

  • 10/07/2015 - DRAM Pilot Participant Survey: Please take a moment to respond to the survey questions provided in the link below. The survey will also be available on each IOU’s RFO website.  It should take less than five minutes to complete.

    The survey will close October 13, 2015.

    https://www.surveymonkey.com/r/YHPBDV5

  • 10/07/2015 - Pre-bid web conference presentation

  • 09/30/2015 - SDG&E’s version of the DRAM PA filed on August 24th as part of AL 2729-E-A is now available for download and review.  To be clear, Offerors do not need to submit this with their Offer, it is for informational purposes only at this point in the process.  For each Shortlisted Offer, SDG&E intends to send the Offeror a redlined version for execution.

Overview

This website provides an overview of the market solicitation.  Respondents must read the RFO Description document to fully understand all aspects of this RFO.

Read the RFO Description document

In accordance with Decision (“D.”) 14-12-024 – Decision Resolving Several Phase Two Issues and Addressing the Motion for Adoption of Settlement Agreement on Phase Three Issues (“DR Phase Two and Three Decision”) approved on December 4, 2014 by the California Public Utilities Commission (CPUC or Commission), San Diego Gas & Electric Company (“SDG&E”) is issuing its 2016 Demand Response Auction Mechanism Request for Offers (referred to herein as the “RFO” or “DRAM RFO”).  This DRAM RFO is seeking Demand Response Resource Adequacy (RA) resources via a standard, non-negotiable purchase agreement (“DRAM PA” or “PA”) for execution in accordance with these DRAM RFO Participant Instructions (“RFO Instructions”). 

Ordering Paragraph 5 of the DR Phase Two and Three Decision ordered the California Investor-owned utilities, including SDG&E, to file an advice letter with a standard contract (the PA) outlining the parameters of the DRAM pilot.  Advice Letter 2729-E was filed on April 20, 2015 containing this information. This advice letter was approved, with certain modifications, on July 23rd, 2015 in the Resolution E-4728.  As ordered, a supplemental Advice Letter (AL 2729-E-A) was then filed on August 24th, 2015 with further modifications to the PA and SDG&E’s DRAM pilot program. 

SDG&E Electric Rule 32 governs how SDG&E interacts with third party demand response providers (DRPs.) The Commission, in D.15-03-042, authorized SDG&E to put into place certain processes and systems to facilitate a DRP's ability to bid Proxy Demand Resources (PDRs) into the wholesale market. However, this Decision also establishes process, timeframe, and volume limits which pertain to the implementation of Rule 32. The DRAM PA that SDG&E and Offeror will enter into is subject to the provisions of Rule 32 and any limitations authorized by the Commission relative to its implementation, including a limit of 7,000 customer registrations in total.

The DRAM is a pay-as-bid auction of monthly system RA for Offerors to participate directly in the California Independent Operator System (CAISO) market comprising customers in the SDG&E’s service territory.  Offerors must bid directly into the CAISO day-ahead energy market and any resulting revenues or liabilities shall solely be that of the Offeror. Offeror’s DR resource shall be comprised of a PDR or multiple PDRs that aggregates customers within SDG&E’s Sub-LAP.   SDG&E only has one Sub-LAP, as opposed to the other California IOUs, so in effect any SDG&E customer, whether they receive commodity service from SDG&E or another Energy Service Provider, is eligible.  Capacity quantity may vary by month and may be offered during one or more months from June to December 2016.

The current Commission DR requirements to qualify for system RA mandate the DR resource to bid into the CAISO energy market under the CAISO Must-Offer Obligation (MOO) for DR as one or more PDR(s) as defined in the CAISO Tariff (See CPUC decisions D.15-06-063 and D.14-06-050).

Scheduling Coordinator Request for Information

As part of DRAM, the IOUs are issuing a Request for Information from Scheduling Coordinators open to providing SC services to demand response aggregators. Information provided in response to the RFI will be made public as part of the upcoming 2016 DRAM RFO.

Expected Schedule for DRAM Phase 1

The following schedule and deadlines apply to this RFO.  SDG&E reserves the right to revise this schedule at any time and in SDG&E’s sole discretion.  Respondents are responsible for monitoring the RFO Website for updated schedules and possible amendments to the RFO or the solicitation process.

Event

Date/Time

Issue Scheduling Coordinator RFI

8/11/15

RFI Packages submitted

9/10/15

Launch DRAM RFO

9/28/15

Pre-Bid Conference

10/06/15

Deadline to submit any questions

10/19/15

Answers to all Questions will be posted

10/23/15

DRAM RFO Offer package due no later than 4 pm PPT on this date

10/26/15

IOUs Notifies non-conforming Offerors (request to “cure”)

10/30/15

Offeror “Cure” period concludes

11/6/15

SDG&E potentially presents short listed Offerors to PRG for review and approval

11/20/15

SDG&E Notifies Offerors of selection and sends final contract for execution

11/30/15

Awarded Offerors’ PA Execution due to back to SDG&E by this date or sooner with collateral as described in Section 5 of the PA

12/11/15

IOU files Tier 2 advice letter seeking CPUC approval of Contracts

1/8/16

Energy Division gives notice of approves or other action

2/8/16

CAISO Bidding Information

DRAM winners or "Sellers" providing RA to SDG&E will need to register their proxy demand resources (PDR) at the CAISO. An initial step of this process is to input customer location information into the CAISO demand response system. SDG&E requires that the Seller obtain customer authority to access historical and ongoing customer specific information which is needed for this CAISO registration process and for energy settlements.

Electric Rule 32 governs how SDG&E interacts with 3rd party demand response providers (DRPs.) The Commission (See CPUC decisions D.15-06-063 and D.14-06-050) authorized SDG&E to put into place certain processes and systems to facilitate a 3rd party DRP's ability to bid PDR into the wholesale market. However, this Decision also establishes process timeframes and volume limits which pertain to the implementation of Rule 32. The DRAM pilot is subject to the provisions of Rule 32 and any limitations authorized by the Commission relative to its implementation.

Contact Information

All questions or other communications regarding this Resource Adequacy RFO must be submitted via email to BOTH DRAMRFO@semprautilities.com with a CC to waynejoliver@aol.com (Independent Evaluator).

All questions and their answers will be posted publically on this website anonymously soon after receipt.  We cannot respond directly to or confidentially to any questions.

Registration and Submission Information

A maximum of 20 offers per recipient will be allowed.

The RFO and all subsequent revisions and documents are available for download from the RFO Website (http://www.sdge.com/2016DRAM) and the 2016 DRAM RFO event on the PowerAdvocate® website.  Potential Offerors are responsible for monitoring the RFO Website and PowerAdvocate® for subsequent updates, notices and postings.

The 2016 DRAM RFO event on the PowerAdvocate® website contains the following: required RFO forms, documents, and schedule.  Offerors intending to submit an Offer but who do not yet have an existing account with PowerAdvocate® must first register to create a username/password in order to receive access to the event. See below for instructions to log in/register:

Logging In to PowerAdvocate

You can access the PowerAdvocate platform via a web browser.

  1. Open a web browser and go to http://poweradvocate.com

    PowerAdvocate functions in most web browsers; however, using browsers other than Internet Explorer version 6 or higher may cause certain functionality to work unexpectedly. Should you encounter problems, PowerAdvocate support may be unable to provide assistance until the issue has been replicated in a supported version of Internet Explorer.

  2. Click Login

    Login page appears; you may wish to bookmark it for quick access.

  3. Enter your account User Name and Password.

    Both are case-sensitive.

    If you do not have an account, go to http://marketing.poweradvocate.com and click the Registration link at the top of the page. If you have an account but do not remember your user information, click Forgot User Name or Forgot Password and they will be emailed to you.

  4. Click Login.

First-time users must register as a Supplier using the instructions above and the Referral information below to access the RFO event:

Please note that no late bids will be accepted.

Participation from Diverse Business Enterprises

SDG&E encourages Diverse Business Enterprises (“DBEs”), “Women-Owned Businesses” or “Minority-Owned Businesses” or “Disabled Veteran Business Enterprises” as defined in G.O. 156[1], to participate in this All Source RFO. 

Furthermore, SDG&E encourages developers to utilize DBEs during various stages of project development and construction. As a part of G.O. 156, SDG&E will require developers to identify and verify their DBE contractor/subcontractor spending if any.

Additional information on SDG&E’s DBE program and utilizing DBEs can be found at:

http://www.sempra.com/about/supplier-diversity/

http://www.cpuc.ca.gov/puc/supplierdiversity/

SDG&E’s DBE Program representatives will provide a presentation during the bidders outreach event.  DBEs can request additional information by contacting SDG&E at vendorrelations@semprautilities.com.

Solicitation Submittal Documents

Frequently Asked Questions

Pre-Bid Conference Call

SDG&E, SCE, and PG&E will be hosting a conference call for those considering making an offer into this solicitation.  Participation in the conference call is not mandatory for those ultimately submitting a proposal.

When: 10/06/15

Time: 9:00 AM - 12:00 PM  PPT

Audience link: https://sce.webex.com/sce/onstage/g.php?d=804477012&t=a

Participant dial in (toll-free): 804 477 012

Conference ID: dram

Pre-bid web conference presentation

Please note that an SDG&E attorney and the Independent Evaluator will be present on the call as well as representatives from SCE and PG&E.