Distribution Investment Deferral Framework Standard Offer Contract (“SOC”) Pilot



As of September 6, 2022, SDG&E does not anticipate offering planned distribution upgrades for deferral through the second cycle of the Standard Offer Contract pilot or the 2022 Request For Offer solicitation process.



San Diego Gas & Electric Company (“SDG&E”) seeks to procure in front of the meter Distributed Energy Resources (“DERs”) to avoid or defer utility distribution investments, in compliance with California Public Utilities Commission ("CPUC") Decision 21-02-006

The SOC Pilot is a DER distribution deferral tariff pilot, which involves selecting lowest cost offers from providers of in front of the meter DERs, through a simple auction pricing mechanism, to defer planned distribution infrastructure.  Selected offers will be dispatched to defer the planned distribution infrastructure in accordance with the contractual obligations set forth in the Commission-approved, non-modifiable Technology-Neutral Pro Forma (“TNPF”) contract. 

Products Solicited & Submittal Documents

SDG&E seeks to procure incremental in front of the meter DERs,* to defer planned distribution projects that meet needs that are more than two years in the future. 

This website provides an overview of the market solicitation. Respondents are strongly encouraged to download and thoroughly review the documents pertaining to the resource type(s) that the respondent is interested in providing, available below, to fully understand all aspects of this Pilot.

The planned distribution upgrade that will be offered in the year 1 SOC Pilot will be for the thermal need that is identified in the Grid Needs Assessment (“GNA”) and Distribution Deferral Opportunities Report (“DDOR”) for year 2025 as “GNA_2021_0002” and “DDOR_2021_0002.”  

See the second table in Appendix A (page 59 of PDF and page 19 of report) of SDG&E’s August 16, 2021 “2021 GRID NEEDS ASSESSMENT AND DISTRIBUTION DEFERRAL OPPORTUNITY REPORT OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 E).”  


The thermal need is for 0.86 MW during hours-ending 14-22 in the months of June through October in the year 2025.  There is no associated back-tie need.  

During the subscription period which opens on September 15, 2021, entities may offer to supply all or a portion of this capacity from In-Front-Of-the-Meter (“IFOM”) resources.  Behind-The-Meter (“BTM”) resources may not be used to support offers in the SOC pilot.  SDG&E prefers to meet the entire need from a single offeror; however, SDG&E will consider contracting with more than one offeror if doing so will provide ratepayer savings.

Entities will submit offers in the form of quantities (“MW”) that the offeror is willing to provide at the offeror’s specified percentages of the offer price cap.  The offer price cap, which is the one-year deferral value of the planned distribution upgrade, will be specified in $/kW-month.  Payments will be made on an equal basis after the end of each of the five need months.   

An entity may submit as many offers – quantities at percentages of the offer price cap (up to and including 100%) -- as it chooses.  SDG&E may select any, or all, of the offers submitted by an entity, and the entity must perform on all selected offers.  

SDG&E will select offers on October 15, 2021, at which point the subscription period is closed.  If the cumulative quantity of offers submitted is at least 90% of the need, SDG&E will tender the Technology Neutral Pro Forma (“TNPF”) contract to the selected offers for signature.**   SDG&E will provide two weeks for entities to return the signed TNPF contract and provide the information required by the contract.  Selected offers will be paid for the quantities indicated at the percentages of the offer cap that the offeror submitted.  

If signed contracts cumulate to less than 100% of the thermal need, SDG&E will initiate contingency plans to ensure grid reliability is maintained.

Pricing Sheet: The estimated total deferral value for deferring the selected project by one year in 2025 is $89,417. 

Cost Cap: The cost cap is $20.79/kW-month = $89,417 / (860 kW x 5 months of 2025)

Participation in this Pilot requires the completion of the Offer Form, TNPF Contract populated with required information specific to the proposed DER, and credit application. These documents are available via the links below.  Failure to provide the listed information may result in an offer being deemed non-conforming and thus may disqualify the offer from further consideration. Multiple offers are acceptable; the offeror must perform on all selected offers.***

Offer Form

TNPF Contract

Credit Application

SDG&E strongly encourages Diverse Business Enterprises (“DBEs”), “Women-Owned Businesses” or “Minority-Owned Businesses” or “Disabled Veteran Business Enterprises” as defined in G.O. 156, to participate in this RFO.  Furthermore, SDG&E strongly 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, verify and report their DBE contractors/subcontractor spending if any. 

Additional information on SDG&E’s DBE program can be found at our Supplier Diversity page  or at the CPUC website

D. 21-02-006 sets forth the criteria for determining whether offered resources are “incremental.”

**  “When the 90% acceptance trigger is met, IOUs sign contracts with providers.”  Commission-adopted Energy Division staff proposal a p. 53.

*** Note: only one credit application and TNPF need to be provided if providing multiple offers.

Pilot Schedule

The following are the key deadlines that apply to this Pilot. SDG&E reserves the right to revise this schedule at any time and at SDG&E's sole discretion. Respondents are responsible for accessing the website for updated schedules and possible amendments to the Pilot or the solicitation process.





Launch SOC Pilot

September 15, 2021


Deadline to submit any questions

September 23, 2021


Answers to all Questions will be posted

September 28, 2021


SDG&E selects offers and closes subscription period

October 15, 2021


Contracts for Standard Off Contract pilot tendered

October 27, 2021


Contracted entities to return the signed TNPF contract and provide the information required by the contract

November 10, 2021


All questions or other communications regarding this SOC Pilot must be submitted via email to [email protected].

Submitting Proposals

Proposals must be submitted via PowerAdvocate in accordance with the instructions contained in the RFP Protocols. Please note that no late offers will be accepted.

Respondents intending to offer but who do not yet have an existing account with PowerAdvocate® must first register to create a username/password to receive access to the event (event code 127410). Users with an existing PowerAdvocate® account may request access using: