---------------------- Forwarded by Jubran Whalan/HOU/EES on 03/08/2001 05:21 
PM ---------------------------


Jubran Whalan
03/08/2001 05:20 PM
To: Dennis Benevides/HOU/EES@EES, Dave Roberts/HOU/EES@EES, Neil 
Bresnan/HOU/EES@EES, Tom Riley/Western Region/The Bentley Company@Exchange, 
Jay Ferry/HOU/EES@EES
cc:  
Subject: ISO DISCRETIONARY LOAD CURTAILMENT PROGRAM




DISCRETIONARY LOAD CURTAILMENT PROGRAM

The California Independent System Operator (ISO) has created the 
Discretionary Load Curtailment Program (DLCP) to provide additional resources 
to the grid for the management of potential system emergency conditions.  
This program provides an energy-only payment and gives Loads total control 
over their curtailments, the control that many need to feel comfortable 
participating in a demand response program.  
The DLCP consists of two parts: 
? a Day Ahead Request, and 
? a Day Of Request for curtailment.  
The ISO will pay Load Aggregators $500/MWh for Demand they offer and curtail 
in the Day Ahead portion, and $750/MWh for Demand they offer and curtail on 
the Day Of portion.  
This program will act as an umbrella for certain UDCs, programs under 
Assembly Bill AB31x and also attracts any other aggregator that can bid load 
curtailments into the program.  A Load Aggregator (LA) can be any company who 
enters into a DLCP Agreement with the ISO.  Because AB31x provides payments 
for the bundled customers that are aggregated by the UDCs, an alternate 
agreement will be made with them regarding procedures of operation.  Non-UDC 
Load Aggregators will receive the performance payments from the ISO through 
their elected Scheduling Coordinator.  
The DLCP will operate year-round during the hours of 7:00AM until 8:00PM from 
now until December 31, 2001.  The need for this program will be evaluated 
throughout 2001 and implemented for 2002 if needed. Some provisions including 
trigger mechanisms and payments may be re-evaluated and changed based on 
Summer 2001 experience.  
The ISO is accepting proposals from those interested in being a Load 
Aggregator, starting on March XX, 2001 and continuing until the end of this 
program. For more information and a copy of the Request for Proposals, please 
visit our web site (www.caiso.com/clientserv/load) (this will be posted after 
the DLCP is approved).
The DLCP is intended to provide the ISO with Demand curtailment from Loads 
that may not be able to participate in the ISO,s Participating Load Program 
(Ancillary Services and Supplemental Energy) or the ISO,s Summer 2001 Demand 
Relief Program.  However, contracted DRP Loads may participate in the DLCP 
during months outside of the DRP period. Additionally, existing UDC 
interruptible customers that have met their yearly contractual obligation may 
participate. This new program is intended to allow end-use Loads to 
participate, through a Load Aggregator, in a curtailment program while giving 
those Loads total discretion whether to participate in any day the program is 
activated by the ISO.




Key Features of the DLCP
Feature	
DLCP Availability	March XX, 2001 ) December 31, 2002
Minimum Load Aggregator Portfolio	1MW
Curtailed Energy Payment	Day Ahead: $500/MWh
	Day Of:        $750/MWh 
Curtailment Window	7:00 AM ) 8:00 PM
DLCP Request	Day Ahead Request:
	Upon ISO projecting a need for demand response (the ISO may call on this 
program based upon the best available temperature, load, and resource 
forecast information) for specified hours of the next day.  The DLCP Day 
Ahead Request will be issued by 4:00PM
	Day Of Request:
	Upon ISO projecting a need for demand response (the ISO may call on this 
program based upon the best available temperature, load, and resource 
forecast information) for specific hours on that day.  The DLCP Day Of 
Request will be issued by 8:00AM.  
DLCP Offer	LAs shall respond to the DLCP Day Ahead Request by 6:00pm of the day of 
the DLCP Request. 
	
	LAs shall respond to the DLCP Day Of Request by 9:00AM.    
DLCP Confirmation 	The ISO will issue a DLCP Day Ahead Confirmation notice to 
the LAs no later than 7:00 PM of the day before the curtailment.   
	
	The ISO will issue a DLCP Day Of Confirmation notice to the LAs no later than 
9:30AM of the day of the curtailment.  
DLCP Curtailment	The LA shall assure that the Load is notified and curtails in the 
hour(s) as per the DLCP Confirmation notice.   
Use of Generation	Less than 1MW total behind each interval meter, with approval from 
AQMD.
Order / Timing of Curtailment	Because the DLCP Curtailment will be based on the times 
identified in the DLCP Confirmation notice the curtailments could occur 
irrespective of the Emergency Status.


Eligibility
DLCP Load Aggregator
In order to be eligible for the DLCP, Load Aggregators (including UDCs):
1. Must be able to provide a portfolio that contains a net reduction in 
Demand of at least 1MW, either alone or when aggregated with other customers,
2. Must sign a DLCP Agreement,
3. Must have an ISO approved performance measurement process, 
4. Must be capable of interacting with the ISO,s DLCP infrastructure as well 
as communicate with the end-use Load customer,
5. Must nominate an SC for settlement transactions with the ISO.

DLCP End-Use Load Customer
In order to be eligible for the DLCP, an end-use Load customer:
1. Must be able to provide a net reduction in Demand that meets the criteria 
of the LA, or the Local Regulatory Authority,
2. Must have an interval meter approved by the Local Regulatory Authority, or 
have the appropriate measuring device(s) as required by the approved LA,s 
performance measurement process,
3. Must be located inside the ISO Control Area (ask your LA, if you are not 
sure),
4. Must not concurrently participate in the ISO,s Summer 2001 DRP, however 
may participate during months outside of the DRP contracted period (May 
15-September 30, 2001), 
5. If the end-use load is a UDC interruptible customer, the customer may 
participate in the DLCP as long as the customer has met all the contractual 
obligations of an interruptible customer,
6. Must not have a Participating Load Agreement (PLA) with the ISO for the 
same Load offered under the DLCP,
7. Must obtain and provide positive proof of all necessary permits of 
operation or approvals from the local Air Pollution Control District or Air 
Quality Management District for each individual Generating Unit designated 
for participation in the DLCP. 

DLCP Process:
? DLCP Request
1. DLCP Day Ahead Request:
The ISO will project the need for demand response. The ISO may call on this 
program based upon the best temperature, load, and resource forecast 
information available by 4:00PM the day ahead.  The ISO will issue a DLCP Day 
Ahead Request by e-mail to all contracted Load Aggregators.  The e-mail 
notice will request the curtailment amounts for two-hour blocks within the 
ISO specified curtailment timeframe.  The ISO will provide any constraints in 
the notice.
2. DLCP Day Of Request:
The ISO will project the need for demand response.  The ISO will base this 
projection upon the best temperature, load, and resource forecast information 
available by 8:00AM of the day of the request. The ISO will issue a DLCP Day 
Of Request by e-mail to all Load Aggregators.  The e-mail notice will request 
the curtailment amounts for each two-hour block requested.  The ISO will 
provide any constraints in the notice.

? DLCP Offer
1. By 6:00PM on the Day Ahead, the Load Aggregators will submit to the ISO, 
through the ISO DLCP website, their committed amounts of Load Curtailment.  
The ISO expects that the Load Aggregators will have contacted the End-Use 
Loads in their program to determine how much curtailment will be available 
and for which hours of the day. 
2. By 9:00AM of the Day Of, the Load Aggregators will submit their committed 
amounts of curtailment.  

? DLCP Confirmation
Once the ISO reviews submitted DLCP Offers, ISO Operations will issue an 
e-mail notice to both the Load Aggregators and their Scheduling Coordinators 
accepting specific DLCP Offers.  The ISO will issue the DLCP Confirmation 
notice by 7:00PM on the day the Day Ahead Request was made and by 9:30AM for 
the Day Of Requests. These confirmation notices will request that the Load 
Aggregators communicate to the End-Use Loads the required curtailment amount 
and duration.  This will be the only communication (dispatch) to the Load 
Aggregators detailing the curtailment.  
? DLCP Performance
The effectiveness of the DLCP will be based on the performance of each 
End-Use Load in curtailing their confirmed curtailment amount. The ISO 
expects that the committed curtailment will occur based on the hours as 
confirmed through the DLCP Confirmation notices.  An aggregator has the 
responsibility to produce the demand reduction it confirms.  There is no set 
penalty, except that continued poor performance could result in revocation of 
the DLCP Agreement.  

? Performance Measurement Guidelines
The measurement of performance for each End-Use Load will be performed by the 
Load Aggregators.  Each Load Aggregator will have an ISO approved performance 
measurement plan, which will be used to calculate the DLCP performance.  The 
performance measurement plan shall include the following:
? For interval metered End-Use Loads the Load Aggregator will calculate a 
baseline Load profile.  DLCP performance will be measured by the difference 
between baseline Load profile and the meter read for the hour(s) of 
curtailment.  
? For non-interval metered Loads, DLCP performance will be calculated by 
using a combination of sample measurements, historic data, process controls, 
use of data loggers, and any other performance measurement method approved by 
the ISO.  Load Aggregators shall obtained ISO approval prior to offering DLCP 
for non-interval metered End-Use Loads.  (It should be noted that the ISO 
favors interval meters.)
? DLCP Settlement
Each DLCP Offer for which a DLCP Confirmation was issued by the ISO shall be 
uniquely identified.  Therefore, DLCP Day Ahead and DLCP Day Of offers must 
be separately identified. The Load Aggregators (except for the UDCs) shall 
submit the DLCP Performance Measurement for each confirmed offer by using the 
DLCP website no later than 45 days following the operating day of the DLCP 
Curtailment.  The ISO will calculate the performance payment by simply 
multiplying the DLCP energy price ($500/MWh for DLCP Day Ahead and $750/MWh 
for DLCP Day Of) by the amount of DLCP (in MWs) for each hour of confirmed 
curtailment. For each month the performance payments will be summed up for 
all the confirmed curtailments and paid to the Load Aggregator,s nominated 
Scheduling Coordinator.  The payment will be made to the Scheduling 
Coordinator in accordance to the ISO Payment Calendar timeline.  
The ISO recognizes that UDCs acting as Load Aggregators will have specific 
rules to follow for the settlement of the dispatched curtailment.  The UDCs 
will be responsible for following the settlement rules and regulations set 
forth by the CPUC for the End-Use Loads.  

How to enroll in the DLCP:
Load Aggregator
1. For a Load Aggregator, contact the ISO.  The DLCP Request for Proposal 
(RFP) and Agreement are posted on the ISO website: 
www.caiso.com/clientserv/load,
2. Contact the ISO.  The ISO contact for the DLCP is:
Glen Perez, Manager Data Quality
California ISO
gperez@caiso.com
3. Submit a proposal and enter into a DLCP Agreement.  Responses to the RFP 
should be submitted to:
California Independent System Operator
151 Blue Ravine Road
Folsom, CA 95630

Attention:  John Counsil, Contracts 

End-Use Customers
1. Contact a Load Aggregator.  A list of approved Load Aggregators will be 
posted on the ISO website: www.caiso.com/clientserv/load,
2. Contact your UDC.  They may have an enrollment process to be followed.  
3. Any questions contact the ISO.  The ISO contact for the DLCP is:

Glen Perez, Manager Data Quality
California ISO
gperez@caiso.com