At Southern California Edison (SCE), we are fully committed to keeping electricity safe, reliable, and affordable for every customer, every day. To better manage energy consumption during periods of high demand on the electric grid (DR events), we offer incentive programs to reduce energy use in return for lower energy costs.
We’ve included our portfolio of DR programs in this fact sheet for you to consider, and you can participate in more than one. Your SCE Account Manager will work closely with you to identify those that best fit your business, minimizing the effect on your operations, as well as your budget.
The benefits to your business include:
- Receiving discounted rates, incentives, or bill credits for participation
- Personalized consultation to identify solutions that are ideal for your business
- Advance notification of DR events to mitigate the impact on your operations
A win-win opportunity for everyone.
When you participate in DR, you don’t just save money, you make a difference. By reducing your energy consumption during hours of peak demand, you relieve stress on the grid to help prevent power shortages in your community and preserve the environment for all of us.
Technology makes participation easier.
In addition, we offer incentives for the purchase and installation of technologies that enable your business to automatically reduce energy load when DR events are called and realize the maximum incentive benefit from participating in DR programs.
Automated Demand Response (Auto-DR) Control Incentive
Auto-DR allows enabled customers to participate in our DR programs utilizing a load-control device or Energy Management System (EMS) that automatically initiates load reduction activities based upon settings you establish in advance. This eliminates the need to turn off or adjust equipment manually when events occur. Incentives are based upon your achieved energy reductions.
Depending on your situation and the size of your electrical load, Auto-DR offers two incentive options:
- Auto-DR Express — incentive for systems that control standard technologies, such as dimmable ballasts, temperature reset controls for HVAC, and duty-cycling of HVAC compressors and fans that automatically reduce load during DR events.
- Auto-DR Customized — incentive for the purchase and installation of remotely-activated equipment that facilitates sitewide, automatic load reduction, such as controls for lighting, motors, pumps, fans, air compressors, process equipment, HVAC load control devices, and more.
To qualify, you must enroll and participate in at least one eligible DR program for a minimum of 36 consecutive months. (Eligible DR programs are flagged with a footnote below)
DR Event Notifications
Receive event notifications via phone, email, and/or text. Simply, log into My Account to set up or update your alert preferences.
For added convenience, download our free SCE Demand Response Alerts Mobile App to have notifications sent straight to your smartphone.
Demand Response Programs
Agricultural & Pumping Interruptible | Capacity Bidding Program Elect (CBP-E) | |
| Overview | Receive year-round, monthly bill credits for allowing SCE to temporarily interrupt electric service to your pumping equipment. | Flexible bidding program providing monthly incentives for reducing energy when events are called. Each month, you choose how much your business can reduce its energy use during an event. When self-aggregating, you have the flexibility to change your commitment on a month-to-month basis. If participating through a third-party DR aggregator, participation and incentives are provided by the DR aggregator. |
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| When It’s in Effect | Events can occur anytime year- round, but are limited to:
| Events can be called May - October, any day of the week, but are limited to:
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| Penalties | None | If actual reduction is <75% of your bid on an hourly basis, capacity incentives will be reduced. |
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| Prohibited Resources | PR Attestation form required before enrollment. | PR Attestation form required before enrollment. |
Critical Peak Pricing (CPP) | Emergency Load Reduction Program (ELRP) | |
| Overview | Receive monthly bill credits from June through September in exchange for paying higher electricity prices during a CPP event. | Earn annual bill credits for reducing energy usage during an event. There are no penalties if you are not able to participate in an event. ELRP DR events can be called on a day-ahead and day-of basis. |
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| When It’s in Effect | Events may be called year-round, including weekends and holidays, but are limited to:
| Events may be called May 1 to October 31, but are limited to:
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| Penalties | None, but energy rates are significantly higher during CPP events. | None |
| Event Trigger |
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| How You’re Notified | Event notification sent one day in advance of scheduled DR event:
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| Eligibility | Residential and Non-residential Bundled Service customers |
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| Prohibited Resources | Not applicable | Backup generators not utilizing Prohibited Resources can be used during an ELRP event. Prohibited Resources can only be used during ELRP events when permitted by a Governor’s Executive Order. ELRP customers located in a disadvantaged community (DAC) cannot use Prohibited Resources under the current program rules, unless specifically overridden by a Governor’s Executive Order. Under emergency situations, it is unclear what regulations, if any, may be lifted by a Governor’s Order to meet grid reliability needs. SCE will follow applicable CPUC and/or Governor orders. |
Real-Time Pricing (RTP) | Smart Energy Program (SEP) | |
| Overview | Lower energy costs when you reduce energy usage during hours with higher temperature-driven prices and/or shift usage to lower-priced hours. | Receive bill credits for allowing SCE to temporarily adjust the temperature setpoint on your thermostat when events are called. Participants always have the capability to override any temperature adjustments. |
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| Requirements | 12-month program commitment |
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| When It’s in Effect | Available year round | Events may be called year-round, but are limited to:
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| Penalties | None, but energy rates will increase with higher temperatures. | None |
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| How You’re Notified | Whenever hourly prices for the following day are expected to exceed the set preferred limit:
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| Eligibility | Non-residential Bundled Service customers |
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| Prohibited Resources | Not applicable | Not applicable |
Summer Discount Plan (SDP) | Time-of-Use Base Interruptible Program (TOU-BIP) | |
| Overview | Receive a monthly bill credit during summer months for allowing SCE to interrupt your air conditioner (A/C) unit temporarily when events are called. | Earn year-round, monthly bill credits for reducing your energy usage during a BIP event to a contracted level within the 15- or 30-minute options. BIP events are called on a day-of basis. |
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| When It’s in Effect | Events may be called year-round, but are limited to:
| Events can be called May - October, any day of the week, but are limited to:
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| Penalties | None. | To avoid Excess Energy Charges, facility’s electrical usage must remain at or below your selected Firm Service Level throughout the event. |
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| How You’re Notified |
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| Eligibility | All Bundled Service, Direct Access (DA), and Community Choice Aggregation (CCA) customers with fully operational central A/C units |
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| Prohibited Resources | Not applicable | PR Attestation form required before enrollment. If prohibited resources are used during events, the FSL must include the size of the resource. |
Third-Party Demand Response Providers: A Collaborative Effort
We contract with several authorized third-party DR Aggregators, who develop and manage their own DR programs which may be available to you. By partnering directly with businesses, DR Aggregators are able to pool or aggregate customers under their DR program to achieve energy reductions. DR Aggregators provide their aggregated DR resources and are responsible for reducing electrical load based on the capacity commitment they have with us.
You will be in a group of customers that participate in a DR program and can be compensated by the DR Aggregator based upon the terms of your agreement with them. Specific programs and terms of your agreement may differ by Aggregator. We have no involvement in the individual agreements between you and the DR Aggregator. You have the option to enroll and participate in a number of DR Aggregator programs including, but not limited to, Capacity Bidding Program Elect (CBP-E), Local Capacity Requirement (LCR), Time-of-Use Base Interruptible Program (TOU-BIP), Emergency Load Reduction Program (ELRP), Preferred Resources Pilot (PRP), and Demand Response Auction Mechanism (DRAM).
Please contact your SCE Account Manager if you have any questions and to help identify all the available DR options to meet your energy needs. A list of available DR Aggregators/Providers in our service territory is available online.
Energy Efficiency: A Powerful Element of Integrated Demand-Side Management
Want to manage your costs all year long? Contact your SCE Account Manager to discuss energy-saving solutions that can help you run a more energy- efficient operation every day.
Note: The CAISO is aligning its Alert, Warnings, and Emergency (AWE) notifications to match the North America Reliability Corporation (NERC) Energy Emergency Alerts (EEA) in an effort to be consistent with the alerts used by other balancing authorities in the Western Electricity Coordinating Council (WECC).
This fact sheet is meant to enhance your understanding of SCE’s Demand Response Programs. It does not replace pricing information contained in the CPUC- approved tariffs. Please refer to the tariffs, which can be viewed online at sce.com/tariffbooks, for a complete list of terms and conditions of services.