Section 1622 - Residential Load Management Standard(a) Application. The provisions of this section are applicable to residential electric water heaters and electric central air conditioners.(b) Peak Load Cycling Program. The utility shall carry out a peak load cycling program, if such a program has been found to be cost effective for the utility. Under this program, the utility shall offer to install remote load switches in those identified residences in the utility's service area which contain electric water heaters or central air conditioners. The switches shall allow the utility to cycle any of these electric appliances.(c) Program Implementation. The utility's peak load cycling program shall consist of three phases as follows: (1) Peak Load Cycling Plan Development Phase. The purpose of this phase is to allow the utility to develop a Peak Load Cycling Plan which will accomplish the program goals set forth in subsection (d) below. The requirements for the plan are specified in subsection (e) below. The utility may conduct experimental Peak Load Cycling Programs prior to approval of its Peak Load Cycling Plan by the Commission. Any such program shall, to the maximum extent feasible, be consistent with the provisions of the Peak Load Cycling Plan which is being developed by the utility or which has been submitted pursuant to Section 1621(d). Any expenditure which the utility makes in connection with any such experimental program prior to the approval of its Peak Load Cycling Plan shall be subject to the approval of the utility's rate-approving body.(2) Testing and Evaluation Phase. The purpose of this phase is to allow the utility to conduct detailed testing and evaluation of alternative technologies for peak load cycling, of customer acceptance of peak load cycling, and of the benefits of peak load cycling in terms of reduced peak demand, at a low level of implementation. The testing and evaluation phase shall commence as soon as the Commission has approved the utility's Peak Load Cycling Plan and the utility's rate-approving body has approved program-related tariffs and a method for recovering the cost of the program. Once this phase has commenced, it shall last for 28 months.(3) Systemwide Implementation Phase. The purpose of this phase is to achieve the maximum feasible level of system load reduction in the utility's peak load cycling program. This phase shall commence after the Commission takes action pursuant to subsection (h) below. While the utility is carrying out these phases of its peak load cycling program, it shall cooperate on an ongoing basis with the Commission Staff in evaluating the relative merits of alternative hardware systems, in determining the optimal approaches for obtaining maximum customer participation in peak load cycling programs, and in improving and refining methodologies for calculating the cost-effectiveness of peak load cycling programs and other load management programs.
(d) Program Goal. The utility's peak load cycling program shall be designed and carried out t achieve the following goals:(1) By the end of the testing and evaluation phase, the utility shall have installed remote load switches on approximately 8 percent of the total of all identified residential central air conditioners in the utility's service area, except that a utility may install switches on a greater or lesser percentage of those appliances, if, in its peak load cycling plan, the utility provides information which demonstrates that a program goal of more or less than eight percent will be more cost-effective for the utility to implement, and if the Commission approves the utility's plan. The utility shall maintain a level of implementation according to an approved Peak Load Cycling Plan.(2) By the end of the testing and evaluation phase, the utility shall have installed remote load switches on a sufficient number of residential electric water heaters in the utility's service area to allow the Commission to determine whether it would be cost-effective for the utility to implement a peak load cycling program for residential electric water heaters on a system-wide basis. The utility shall indicate the number of residential electric water heaters which will be subject to this experimental program in its peak load cycling plan as well as the test program methodology for determining cost effectiveness. In carrying out its peak load cycling program for such appliances, the utility shall maintain the level of implementation set forth in its peak load cycling plan.(e) Peak Load Cycling Plan. No later than eight months after this article becomes effective, the utility shall submit a Peak Load Cycling Plan. This Plan shall show how the utility intends to meet the goal set forth in subsection (d) above. This plan shall, as a minimum, include the following elements of a peak load cycling program. (1) Objectives--The plan shall describe, in detail, the utility's objectives in pursuing the peak load cycling program. The Plan shall include an assessment of the impact of the peak load cycling program on system reliability, need for new capacity, fuel efficiency, and overall costs.(2) Organization--The plan shall describe how the utility will organize and manage the peak load cycling program. It shall include organization charts, qualifications for each position and the reporting relationship of the effort to the President or General Manager of the utility. The plan shall describe how the utility intends to recruit and hire the personnel needed to staff the proposed organization.(3) Schedule and Budget--The plan shall include a detailed schedule for each of the program elements during the testing and evaluation phase. The schedule shall indicate each task required to complete each element, the level of effort assigned to each task, and the beginning and ending dates of each task. The plan shall include the utility's detailed budget for carrying out all elements of the peak load cycling program. It shall display dollars budgeted over time, by task, for personnel, equipment, and outside contractors.(4) Customer Identification--The plan shall describe how the utility intends to identify those residences in its service area which are equipped with electric water heaters and central air-conditioners. The plan shall also set forth the utility's determinations as to which segment or segments of its customers, and which locations will be selected for inclusion in the testing and evaluation phase of the utility's peak load cycling program. Such determinations shall be based on an analysis of the mix of appliances and those locations for which the peak load cycling program carried out during the testing and evaluation phase will provide the most cost-effective reductions in peak system load. This analysis shall utilize a sampling technique which assumes that the results of the testing and evaluation phase will serve as an adequate basis for identifying the probable effects of systemwide implementation. The results of this analysis shall be submitted with the plan.(5) Customer Acceptance--The plan shall describe how the utility intends to assess customer attitudes toward participation in the peak load cycling program. It shall describe how the utility will use this information to tailor both the peak load cycling program and the public education element to encourage customer participation. The plan shall describe how the utility intends to estimate the various levels of customer participation that will occur with various levels of interruptible tariff. This element of the plan shall draw upon the experiences of other utilities in similar programs as well as any primary research that the utility may propose.(6) Interruptible Tariffs--The plan shall describe how the utility intends to develop and propose interruptible tariffs which will encourage its residential customers to participate in the peak load cycling program. The value of the customer incentives contained in such tariffs shall not exceed the et cost savings to the utility from the customer's participation in the program. These tariffs shall prescribe alternative rates which correspond to different cycling schedules. In addition, the plan shall indicate how the utility, during the testing and evaluation phase, intends to investigate and evaluate alternative methods for recovering the costs associated with the installation of remote load switches on a systemwide basis. Interruptible tariffs which are offered to customers who participate in the program should reflect the differences, in terms of costs to the utility, of any such alternative methods. When the utility submits its Peak Load Cycling Plan, it shall also include its proposed interruptible tariff schedule.(7) Public Education--The plan shall describe how the utility will inform the public about the peak load cycling program.(8) Equipment Selection--The plan shall describe how the utility intends to select the equipment needed to carry out the peak load cycling program. It shall describe how the utility will review and evaluate the various types of equipment that are available and how a selection will be made. It shall describe how the utility intends to stay abreast of the state-of-the-art and incorporate technological improvements and cost reductions into its equipment system as these become available. The plan shall describe the steps that the utility will take to assure that the selected equipment is delivered in time to meet specified program goals.(9) Customer Sign-Up--The plan shall describe the procedures which the utility intends to utilize to solicit customer participation in the peak load cycling program. The plan shall describe how these procedures are reasonably related to the specified program goals.(10) Equipment Installation and Maintenance--The plan shall describe how the utility intends to install and maintain equipment (including remote load switches) in an economical and professional manner that causes minimum inconvenience and disruption to customers.(11) Program Operations--The plan shall describe how the utility intends to use remote load switches to meet the purposes in Section 1621(a). It shall describe how the switches will coordinate with system dispatching procedures and equipment. The plan shall describe how the utility intends to respond to customer questions, problems, or complaints about the program.(12) Program Evaluation--The plan shall describe how the utility intends to evaluate, on an ongoing basis, the quality and performance of each element of the peak load cycling program. It shall describe how evaluations will be made and the results fed back into each element to improve the program on a regular basis. The plan shall include an outline of the reporting formats that the utility intends to use for progress reports to the Commission, and it shall show how the Commission will be notified, in a timely manner, of unexpected delays or difficulties in implementing the program.(13) Other Information--The plan shall include any other information that the utility deems appropriate for Commission consideration in relation to the peak load cycling program. Review and approval of Peak Load Cycling Plans shall be carried out in accordance with the provisions of Section 1621(d).
The utility's peak load cycling program shall be carried out in accordance with the provisions of an approved Peak Load Cycling Plan. No later than one month after the Commission has approved a utility's Peak Load Cycling Plan, the utility shall ask its rate-approving body to grant the proposed interruptible tariffs and to approve a method for recovering the costs of the program.
(f) Progress Reports. Within 18 months and within 30 months after the testing and evaluation phase commences pursuant to Section 1622(c)(2), the utility shall submit Progress Reports to the Executive Director. These Reports shall specify the number of appliances subject to this standard, the number of appliances with remote load switches, and the number of appliances on each peak load cycling schedule, and it shall include an evaluation of the technical performance of the remote load switches, an evaluation of the observed impacts, if any, of the use of these switches on utility system operations and on the appliances to which they are connected. These Reports shall indicate the impact of this program on the utility's load duration curve for the previous 12-month period. For each day of the previous year, these reports shall also indicate at what times, how often, and for how long the utility used remote load switches. The second of the two Progress Reports shall recommend to the Commission how the utility's peak load cycling program should be modified, for the purposes of systemwide implementation, in terms of hardware systems, alternative tariff schedules, the mix of appliances subject to this standard, the implementation schedule, long-term program goals, and any other appropriate considerations. The second Progress Report shall also analyze the anticipated impact of systemwide implementation of peak load cycling on the utility's resource plan.(g) Executive Director's Report. Within two months of receipt of the utility's second Progress Report, the Executive Director shall submit to the Commission a Report on that utility's peak load cycling program, which contains the following information: (1) The Executive Director's evaluation of the information contained in the utility's two Progress Reports, including the recommendations set forth in the second Progress Report; and(2) The Executive Director's recommendations with respect to the expanded implementation or termination of remote load switching for each of the two kinds of appliances which are subject to this standard.(h) Long Range Programs. Within two months after it receives the Executive Director's Report on a utility's peak load cycling program, the Commission shall hold a public hearing to review the utility's two Progress Reports and the Executive Director's Report. Following this hearing, the Commission shall undertake one or more of the following actions:(1) Expand the level of implementation of remote load switching for one or both of the kinds of appliances subject to this standard to a level which the Commission determines to be feasible and cost-effective;(2) Terminate the remote load switching program for one or both of these kinds of appliances; or(3) Undertake such additional actions which the Commission determines to be necessary and practical to implement the utility's peak load cycling program.(i) Compliance. A utility shall be in compliance with this standard if:(1) The Commission has approved the utility's Peak Load Cycling Plan;(2) The utility is conducting a peak load cycling program in conformance with the provisions of its approved Peak Load Cycling Plan and the provisions of subsection (d) above; and(3) The utility submits all reports required by this section in a timely manner.Cal. Code Regs. Tit. 20, § 1622
1. Change without regulatory effect amending subsections (g)(1)-(2) filed 8-24-2022 pursuant to section 100, title 1, California Code of Regulations (Register 2022, No. 34). Note: Authority cited: Sections 25213 and 25218(e), Public Resources Code. Reference: Section 25403.5, Public Resources Code.
1. Change without regulatory effect amending subsections (g)(1)-(2) filed 8-24-2022 pursuant to section 100, title 1, California Code of Regulations (Register 2022, No. 34).