The summer season is naturally a time when energy use is at its peak. This increased demand puts a strain on the electrical grid that could result in rolling blackouts and higher energy costs for Southern California Edison customers. Reducing energy load during these critical periods is key to alleviating power shortages, saving money and reducing greenhouse gas emissions.

SCE’s Capacity Bidding Program is an Internet-based program that offers financial incentives to customers agreeing to reduce their energy use when SCE forecasts and calls a critical “event”.

How the Program Works

As a CBP participant, you opt to reduce your facility’s power use during CBP events. Participants make monthly nominations and receive incentive payments based on the amount of capacity reduction elected each month, plus energy payments based on their kilowatt-hour energy use reduction when an event is called. Capacity reduction nominations can be adjusted on a monthly basis.

Depending upon which product you choose, an event can last anywhere from 1–8 hours. You also have the option of choosing whether you are notified the day before or the day of a CBP event. Events can occur Monday through Friday from 11:00 a.m. to 7:00 p.m. excluding holidays from May 1 through October 31.

When and How CBP is called:

• CBP events may be called when SCE would otherwise use supply rated at a thermal unit heat rate of 15,000 btu/kWh on a day-ahead or day-of basis
• Day-Ahead Product —You will be notified by 3:00 p.m. the day prior to the event
• Day-Of Product —You will be notified approximately 3 hours prior to the start of the event
• Official notification occurs via the CBP website, but you can also request courtesy notification via phone, pager, or email.

What You'll Receive

With CBP, you will receive capacity and energy payments. Payments will be made after the meter has been read and capacity and energy payments have been calculated.

• Capacity Payments- the payments SCE pays to have your capacity ready and waiting in case of an emergency.
  • You receive this payment even if no events are called for the month.
  • The capacity payment typically makes up the majority of the total credit.
  • The capacity payment rates per kW drop per month are listed below*: