Electricity: demand response resources and programs.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law requires each load-serving entity, including an electrical corporation, to maintain physical generating capacity and electrical demand response adequate to meet its electrical demand requirements. Existing law requires the PUC, in establishing a demand response program, to take certain actions, including ensuring that the program approved for resource adequacy requirements delivers the expected results and provides ratepayer benefits. This bill would require the PUC, by January 31, 2022, to open an investigation into the root causes of demand response market failures and why demand response has not reached its potential and make recommendations for policy changes aimed at ensuring those market failures are not repeated. The bill would require that the investigation include public participation and be concluded by September 30, 2022. The bill would require that the investigation assess the market failures that have led to the underutilization of demand response resources during the 5-year period beginning January 1, 2016, and include detailed and specific recommendations to the PUC for suggested revisions to existing PUC policies governing the use of demand response resources. The bill would require that the PUC, the State Energy Resources Conservation and Development Commission (Energy Commission) , and the Independent System Operator (ISO) identify and develop initiatives to achieve all cost-effective demand response by 2030, with expanded demand response programs that improve reliability of the electrical grid, avoid increasing emissions of greenhouse gases, and include optional participation by residential customers. The bill would require that the PUC, the Energy Commission, and the ISO identify barriers that limit the ISO's ability to plan for and utilize demand response.