mp1mlchl22192004.docVIP

MP1/MLC/hl2 2/19/2004 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking on policies and practices for advanced metering, demand response, and dynamic pricing. Rulemaking 02-06-001 (Filed June 6, 2002) JOINT ASSIGNED COMMISSIONER AND ADMINISTRATIVE LAW JUDGE’S RULING PROVIDING GUIDANCE FOR THE ADVANCED METERING INFRASTRUCTURE BUSINESS CASE ANALYSIS Summary This ruling provides policy direction regarding the minimum level of system functionality that should be supported by an advanced metering infrastructure (AMI) for purposes of analyzing full-scale AMI deployment. The ruling also addresses which customer classes should be included in the AMI analysis, clarifies the costs to be included in the base case AMI analysis, directs the Working Group 3 (WG3) moderator to schedule a workshop to review sources of avoided costs for valuing peak demand reductions, seeks input on the need for a workshop on methodologies for estimating demand response, and clarifies the meaning of “out of scope” impacts. Background The purpose of this proceeding is to increase the level of demand response, in particular price responsive demand, “as a resource to enhance electric system reliability, reduce power purchase and individual consumer costs, and protect the environment.” California’s energy agencies have already provided some guidance on the types of rates and technologies to be supported by the AMI system in the vision statement appended to Decision 03-06-032 as Attachment A. The rate options and technology functionalities outlined in the vision statement can be utilized as the framework for the AMI system functionality and business case analysis. Guidance on AMI System Functionality Agency staff from the California Energy Commission (CEC) and this Commission report that participants at the January 28, 2004 AMI workshop requested additional direction on the types of rate structures the AMI system should support and more sp