Capacity Bidding Program

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 load (capacity) reduction elected each month, plus payments for actual energy reduction, based on kilowatt hours (kWh), 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*:

*Directly enrolled customers only receive 80% of the above prices while CSPs receive 100%. Prices are intended to remain fixed for two years.

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  • Actual capacity payments will vary each month as your nomination and/or performance changes. See the following chart to determine how your performance will affect your capacity payment.

• Energy Payments — payment for your actual reduction
  • Energy payments are based on your actual kilowatt-hour energy use reduction when an event is called. See the following chart to determine how your performance will affect your energy payment.

Determining Actual Reduced Energy:

• SCE determines the amount of energy you actually reduce in each hour of a CBP event by comparing the load during an event to either your Customer Specific Energy Baseline (CSEB) (for customers directly enrolled) or your Aggregated Group Energy Baseline (AGEB) (for load nominated by CSPs), whichever is applicable.
• SCE employs the "10-Day Rolling Average" energy use methodology to calculate CSEB and AGEB baselines by taking the average energy usage for the three highest energy use days of the immediate past 10 weekdays prior to a CBP event, excluding holidays and other CBP event days.

Who Can Participate

CBP is open to all business customers who meet the following conditions:

• Rely on SCE for generation, transmission, and distribution of electric service (bundled service customers), or
• Are a Direct Access Customer, or
• Are a Community Choice Aggregation customer, or
• Are a CSP of such customers
• Are not participating in any other Demand Response program (except OBMC)

What Is Needed

To participate in the CBP, your facility(ies) must be equipped with:

• An SCE-approved communicating interval metering system capable of recording usage in 15-minute intervals
• Internet access for CBP event information, nominating capacity each month and updating contact information

Easy To Participate

You may enroll directly with SCE through your SCE account representative or indirectly with a CSP. Terms, conditions, and payments may vary per CSP.

For more information or to enroll in the Capacity Bidding Program, contact your SCE account representative or call the Demand Response Helpline at (866) 334-7827.

For additional information about the Capacity Bidding Program, please see:

• CBP Registration Information
• CBP Forms, Brochures, and Other Information
• CBP List of CSPs