Dispatches from the Front: The Campaign to Reduce California’s Peak Demand

Julia Curtis, Nexant, Inc.
Monica Rudman, California Energy Commission

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Abstract

The winter of 2000 and 2001 produced the most prolific and severe electricity service disruptions in the history of California. In December 2000 and January 2001 alone, there were 40 days of declared electricity emergencies, including 3 days when rotating outages were required to maintain power system stability. The situation was so severe that Governor Gray Davis declared an energy State of Emergency on January 17, 2001. In response to the crisis, the California State Legislature approved AB970, AB 29x, and SB 5x, which in total provided nearly $900 million dollars to reduce peak demand within the state. Of this total, approximately $537 million went to the California Energy Commission, with $336 million earmarked for demand reduction projects and the remainder to be used to promote renewable energy sources. This paper will summarize the savings from this historic and unique campaign to reduce peak demand and give some indication of the future program evaluation activities planned.