Southern California Edison is soliciting bids from electricity providers for its demand-response resource-adequacy program.

SCE on Oct. 11 issued a request for offers for its demand-response auction mechanism, which is a bid-solicitation tool that SCE uses to help meet monthly demand-response needs, along with local and flexible capacity requirements, according to the California Public Utilities Commission.

As part of the auction process, a demand-response resource seller aggregates its demand-response capacity, and then places a bid directly into the California Independent System Operator market. Ten percent of SCE's DR resource-adequacy supply must come from new sellers.

The CPUC created the demand-response auction program as a tool to encourage new participation in the DR market and to help ensure grid reliability. The program is intended to help California meet its environmental objectives, cost-effectively meet the needs of its grid, and spur innovation and growth of a competitive third-party electricity provider market, the commission wrote in a July decision.

A CPUC decision last year considered adding battery storage to automatic control DR policies, however the CPUC ruled in July that battery storage controls are "not eligible for auto DR control incentives."

Auto DR refers to automated technology that allows a customer's equipment or facilities to reduce demand automatically in response to a DR event or price signal, without the customer taking individual action, the CPUC said. Battery storage technology was not available on the market at the time auto DR policies were established, according to the CPUC.

SCE's budget for its 2019 demand-response auction program is about $5.2 million, increasing to $6 million for years 2020, 2021 and 2022. Bids are due by Nov. 18 and awards are to be issued on Dec. 10.

Staff Writer

David Krause is an energy reporter covering the California Energy Commission and Air Resources Board. He writes about transportation, climate change, utilities, and wildfires. He has an MFA in Writing, an MA in English, and a BS in Civil Engineering.