2017 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.

Key RFO Documents

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

SDG&E’s version of the DRAM PA. 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

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 2017 DRAM RFO. The 2017 DRAM RFO is seeking local, system and flexible Resource Adequacy (“RA”) resources via a standard, non-negotiable Demand Response Auction Mechanism Purchase Agreement (“DRAM PA” or “PA”) for execution in accordance with these 2017 DRAM RFO Participant Instructions (“RFO Instructions”).

Ordering Paragraph (“OP”) 5 and 6 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. Consistent with California Public Utilities Commission (“CPUC”) direction in OP 11 and OP 12 of Resolution (“R.”) E-4728  SDG&E submitted Advice Letter (“AL”) 2796-E on October 9, 2015 with the programmatic details of DRAM in 2017. R.4754 approved AL 2796-E on January 28, 2016 with modifications that were required to be filed in a supplementary AL. Consistent with OP 14 of R.4758 SDG&E filed AL.2796-E-A on February 8, 2016 with the final DRAM 2017 contract and qualitative factors.

SDG&E Electric Rule 32 governs how SDG&E manages third party demand response providers (“DRPs”.) The Commission, in D.15-03-042, authorized SDG&E to put in place certain processes and systems to facilitate a DRP's ability to bid Proxy Demand Resources (“PDRs”) or Reliability Demand Response Resource (“RDRR”) into the wholesale market. D.15-03-042 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 2017 DRAM is a pay-as-bid auction of monthly local, system, and flexible RA for Offerors to bid directly in the California Independent Operator System (“CAISO”) market , with participation from customers in the SDG&E’s service territory. Offerors must bid directly into the CAISO energy market and any resulting revenues or liabilities allocated solely to the Offeror. Offeror’s DR resource shall be comprised of a PDR or Reliability Demand Response Resource (“RDRR”) RDRR or multiple PDRs and RDRRS that aggregate customers within SDG&E’s Sub-LAP. SDG&E has a single Sub-LAP (as opposed to the other California IOUs that have multiple Sub-LAPs) so, in effect, any SDG&E customer, whether receiving commodity service from SDG&E or an Energy Service Provider, is eligible.

The current Commission DR requirements to qualify for local and flexible 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) or RDRR(s) as defined in the CAISO Tariff.

Scheduling Coordinator Request for Information

As part of 2016 DRAM, the IOUs are issued 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 2017 DRAM RFI.

Non-Binding Schedule for the 2017 DRAM

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.

No

Event

Date/Time

1

Launch 2017 DRAM RFO

3/3/2016

2

Pre-Bid Conference

3/15/2016

3

Deadline to submit any questions

4/11/2016

4

Answers to all Questions will be posted

4/14/2016

5

2017 DRAM RFO Offer package due no later than 4 pm PPT on this date

4/18/2016

6

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

4/25/2016

7

Offeror “Cure” period concludes

5/02/2016

8

SDG&E Notifies Offerors of selection

6/24/2016

9

All contracts are executed

7/08/2016

10

Contract collateral due for all contracts

7/18/2016

11

IOU files Tier 1 advice letter seeking CPUC approval of Contracts

7/22/2016

12

Approximate CPUC Contract Approval

8/26/2016

CAISO Bidding Information

DRAM winners or "Sellers" providing RA to SDG&E will need to register their proxy demand resources (PDR) or Reliability Demand Response Resource (RDRR) 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 [email protected] with a CC to [email protected] (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 or offer variations per recipient will be allowed.

The RFO and all subsequent revisions and documents are available for download from the RFO Website and the 2017 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 2017 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 https://www.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 [email protected].

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: 3/15/2016

Time: 10:00 AM - 12:00 PM  PPT

Audience link:  https://engage.vevent.com/rt/pacificgasandelectriccompany1~031516

Toll-Free Dial-in:  (844) 853-2691

Conference ID: 64837077

Pre-bid web conference presentation

Listen to or watch the bidders' conference

Use the original event link:  https://engage.vevent.com/rt/pacificgasandelectriccompany1~031516