17
See Goldman et al. [8].
A second factor to keep in mind is that the same pool of
customers from which CPP participants are drawn have the
alternative option of participating in other demand response
programs and receiving financial payments for load
reductions on event days.
18
Thus, if a utility outside of
California were to offer CPP in the absence of alternative DR
programs, it would likely see a different rate of participation
and degree of price responsiveness. However, a number of
utilities operate in the footprint of organized wholesale
markets such as PJM, New York ISO, and ISO New England,
which operate a range of DR programs.
18
In most cases, consumers are not allowed to participate in both CPP and
a DR program, where events are likely to be called on the same days.
Exceptions are some emergency or reliability-based DR programs that
are expected to be called infrequently.
To illustrate how the CPP findings in California depend upon
the alternative DR programs, consider the following
enrollment and load impact information. In 2009,
approximately 2,600 customer accounts participated in CPP at
the three utilities. In 2010, enrollment grew to about 7,100
accounts with the transition to default CPP at PG&E and
SCE.
19
At the same time, aggregator-managed DR programs
in 2010 enrolled more than 5,000 customer accounts, and
SCE and PG&E enrolled 2,500 customer accounts in their
demand-bidding programs (DBP), all from the same pool of
large commercial and industrial customers from which CPP
draws. That is, approximately equal numbers of customers
participated in CPP and in DR programs in 2010.
19
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