Aggregator / DRP Frequently Asked Questions (FAQ)
Information in this Emergency Load Reduction Program (ELRP) FAQ may change, in whole or in part, subject to California Public Utilities Commission (CPUC) approval.
General Questions
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Southern California Edison’s (SCE) Emergency Load Reduction Program (ELRP) is a flexible Demand Response (DR) program. When you participate in ELRP, not only do you conserve energy and help the environment, but you also receive financial incentives to use less energy during grid emergencies. While you’re relieving stress on the grid to help prevent power shortages in your community, you’ll earn $2 per kilowatt-hour (kWh) reduced during ELRP events, with zero penalties if you can’t participate.
ELRP is unique in that it allows dual participation for non-residential and certain residential* customers with third-party DR providers (DRPs) as well as those enrolled in:
- Agricultural & Pumping Interruptible (AP-I)
- Summer Discount Plan Program (SDP)*
- Smart Energy Program (SEP)*
- Critical Peak Pricing (CPP)
- Real Time Pricing (RTP)
- Base Interruptible Program (BIP)**
- Capacity Bidding Program (CBP)***
* The option to enroll in ELRP through an aggregator while also enrolled in SDP or SEP is only available to residential customers participating in the virtual power plant or vehicle grid integration aggregations that utilize sub-metered data to calculate performance. Non-residential customers directly enrolling in ELRP (A.1) may also be enrolled in SDP-Commercial, BIP, AP-I, CPP, and RTP, see Direct Customer FAQs for more information.
** If you are enrolled in the Base Interruptible Program (BIP) through an aggregator and they choose to not enroll in ELRP, you will only be able to enroll in ELRP A.1. as long as your Firm Service Level can be determined.
***If your CBP aggregator has enrolled in ELRP, you will be eligible to participate through your CBP aggregator. If you are enrolled in CBP directly through SCE, you will not be able to participate in ELRP.
Eligible Net Energy Metering (NEM) customers that can export energy and have existing Rule 21 export permits may be eligible for incremental load reduction during ELRP events.
ELRP also allows dual participation for customers if they are enrolled in CPP or RTP. Customers cannot dual-participate if they are already enrolled in a Demand Response program through a third party DRP.
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ELRP is divided into two groups, Group A and Group B. As listed below, Group A has six sub-groups, and Group B has two sub-groups. Please refer to the “Who is eligible for ELRP?” question for more information about program eligibility requirements.
Each sub-group has different eligibility criteria, giving customers different channels for ELRP participation; however, customers can only participate in one sub-group at a time.
Group A includes participation options for customers and aggregators:
- Non-residential customers (A.1) – Non-residential (commercial, industrial, and agricultural) individual SCE bundled-service customers, Community Choice Aggregation (CCA) Service customers, and Direct Access customers. Dual participation allowed with: BIP, AP-I, SDP-Commercial, CPP, and RTP.
- Non-residential aggregators (A.2) – Third-party, non-residential aggregators—including those participating in SCE’s BIP.
- Rule 21 exporting DERs (A.3) – Non-residential (commercial, industrial, and agricultural) individual SCE bundled-service customers, Community Choice Aggregation (CCA) Service customers, and Direct Access customers with a Rule 21 Exporting Distributed Energy Resource (DER).
- Virtual Power Plant (VPP) aggregators (A.4) – Third-party aggregators managing a behind-the-meter (BTM) hybrid Virtual Power Plant (VPP) consisting of storage paired with NEM solar or stand-alone storage deployed with residential (bundled or unbundled) or non-residential (bundled or unbundled) customers. Dual participation allowed with SDP-Residential and SEP when using sub-metered data to calculate performance.
- Vehicle Grid Integration (VGI) aggregators (A.5) – An aggregation consisting of any combination of electric vehicles and charging stations, also known as Electric Vehicle Supply Equipment (EVSE) – including those that are capable of managed one-way charging (V1G) and bi-directional charging and discharging (V2G) deployed with residential (bundled or unbundled) or non-residential (bundled or unbundled) customers. Dual participation allowed with SDP-Residential and SEP when using sub-metered data to calculate performance.
- Power Saver Rewards Program for Residential Customers (A.6)
Group B includes DR providers participating in market-integrated supply-side DR programs
- Third-party DRPs (B.1) – Third-party Demand Response Providers (DRP) with a market-integrated Proxy Demand Resource (PDR).
- CBP aggregators (B.2) – Third-party aggregators (Aggregators) participating in SCE’s Capacity Bidding Program (CBP).
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Olivine, Inc. is a California-based company focused on helping the state meet its ambitious renewable energy and greenhouse gas reduction goals. Olivine is the ELRP Program Implementer, providing the pilot’s infrastructure and program management. To learn more, visit olivineinc.com
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Base Interruptible Program (BIP), Capacity Bidding Program (CBP) aggregators, and third-party demand response providers (DRPs) with market-integrated Proxy Demand Resources (PDRs) are eligible to participate in ELRP. In addition, there are several non-market-integrated participation options available to aggregators, such as the following.
Virtual Power Plant (VPP) aggregators who manage stand-alone and / or solar paired behind-the-meter batteries are eligible to participate as a Virtual Power Plant aggregator. Aggregators must meet the following criteria:
- The virtual power plant or any site within the aggregation is not simultaneously enrolled in a market-integrated demand response (DR) program, except for sites that are enrolled in the Summer Discount Plan (SDP) or Smart Energy Program (SEP) and are using sub-metered data to measure performance in ELRP.
- All sites in the aggregation are located in SCE’s service territory.
- The virtual power plant’s aggregated behind-the-meter storage capacity meets or exceeds 500 kW; virtual power plant size is determined by the summation of the Rule 21 interconnected capacity of the individual storage devices comprising the aggregation.
- Each site in the aggregation has a Rule 21 permit and operates in a manner compliant with existing rules and tariffs applicable to the site. This is determined by summing EVSE nameplate capacity.
Vehicle-grid integration (VGI) aggregators consisting of any combination of electric vehicles and charging stations, including those capable of managed one-way charging (V1G) and bi-directional charging and discharging (V2G), deployed with bundled or unbundled residential and/or non-residential customers that meet the following criteria, are eligible to participate in the program:
- The aggregation, or any customer site within the aggregation, is not simultaneously enrolled in a market-integrated DR program, except for sites that are enrolled in the Summer Discount Plan (SDP) or Smart Energy Program (SEP) and are using sub-metered data to measure performance in ELRP.
- All sites in the aggregation are located in SCE’s service territory.
- The aggregation is able to contribute incremental load reduction (ILR) equal to or greater than 25 kW for a minimum of one hour during an ELRP event.
All other non-residential aggregators with aggregated bundled or unbundled non-residential customer resources meeting the following criteria are eligible to participate in the program:
- The aggregated resource, or any site within the aggregation, is not simultaneously enrolled in a market-integrated DR program.
- All sites in the aggregation are located in SCE’s service territory.
- The aggregated resource capacity meets or exceeds 500 kW.
Program Questions
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ELRP participants reduce energy when stress on the grid is at emergency levels. The program is designed to respond to system-wide California Independent System Operator (CAISO) grid reliability requirements – not to SCE’s local transmission and distribution grid needs.
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The ELRP program duration is five years (2021-2025).
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Prohibited Resources can only be used during ELRP events when permitted by a Governor’s Executive Order. Non-residential ELRP customers located in a disadvantaged community (DAC), as designated by SB 535, cannot use PR under the current program rules, unless specifically overridden by a Governor’s Executive Order. Under emergency situations, regulations may be temporarily lifted by a Governor’s Order to meet grid reliability needs; this was the case during the September 2022 heatwave. SCE will follow applicable California Public Utilities Commission (CPUC) and/or Governor orders during these events.
Non-residential ELRP participants who are dually enrolled in another DR program may use prohibited resources during ELRP events, but only to achieve ILR beyond any existing commitments when specifically permitted by a Governor’s Executive Order.
These resources are defined as prohibited, in either topping cycle Combined Heat and Power (CHP) or non-CHP configuration:
- Distributed generation technologies using diesel
- Natural gas
- Gasoline
- Propane
- Liquefied petroleum gas
Although prohibited resources may be used by eligible non-residential participants to respond to ELRP events (when permitted by a Governor’s Executive Order and in compliance with Rule 21 and other applicable regulations and permits), it is important to note that stationary back-up generators are often subject to air district requirements, which vary by air district and may include permitting requirements, emission limits, and operational restrictions. ELRP participants are solely responsible for all environmental and other regulatory requirements associated with operating their prohibited resources.
Disadvantaged communities are defined as (1) areas disproportionately affected by environmental pollution and other hazards that may lead to negative public health effects, exposure, or environmental degradation; and (2) areas with concentrations of people who are of low income, high unemployment, low levels of homeownership, high rent burden, sensitive populations, or low levels of educational attainment. CalEnviroScreen, an analytical tool created by the California Environmental Protection Agency (CalEPA), combines different types of census tract-specific information into a score to determine which communities are the most burdened or “disadvantaged.” The Disadvantaged Communities Map shows areas classified as such by CalEnviroScreen. Disadvantaged communities are defined as the top 25% scoring areas from CalEnviroScreen, along with other areas with high amounts of pollution and low populations.
Using prohibited resources during test events is not permitted and will not be compensated.
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If a service account has a behind-the-meter Rule 21 interconnected device with export capability and permit, and the participant specifies they want to be compensated for exports, their exported energy will be counted in baselines and load reduction.
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In addition to helping the grid when needed, aggregators and third-party demand response providers (DRPs) may earn $2 per kWh of incremental load reduction beyond any existing commitments during ELRP events. Base Interruptible Program (BIP) aggregators are only eligible to be compensated for overlapping ELRP/BIP event periods, and only the incremental reduction below the BIP pre-committed Firm Service Level (FSL) during the overlapping event period is compensated.
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Enrolled non-BIP and non-CBP aggregators and participating third-party demand response providers may end participation in the ELRP at any time by sending written notice to support@elrp.sce.com. Your disenrollment will be effective within 20 business days after the written notice is received.
Enrollment Questions
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Direct enrollment refers to customers who initiate and complete the ELRP enrollment process with SCE directly. The General Questions section of the Customer FAQ covers direct enrollment eligibility requirements. Direct-enrolled customers receive notifications and any payments directly from the program. Aggregators and third-party demand response providers (DRPs) may also enroll their aggregations in ELRP. Customers that are enrolled with an aggregator or third-party DRP, should contact their aggregator for information about the program. If you are enrolled in the Base Interruptible Program (BIP) through an aggregator and they choose to not enroll in ELRP, you will not be able to directly enroll.
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Any interested aggregators and third-party DRPs may email support@elrp.sce.com to start their enrollment. Aggregators interested in enrolling under A.2 (non-BIP), A.4, or A.5 sub-groups must review and electronically sign SCE’s aggregator agreement, execute add/delete forms for each customer they intend to enroll, complete the add/delete excel template, and acknowledge the applicable program Terms and Conditions. Existing BIP and CBP Aggregators and third-party DRPs are required to acknowledge program Terms and Conditions. Once aggregators or third-party demand response providers (DRPs) have signed the necessary agreement, they will be asked to provide at least one email address for event notifications.
Aggregators and third-party demand response providers (DRPs) must provide SCE with load reduction nominations (estimated incremental ELRP event load reduction quantities [kW]) for aggregations and when application individual customers. Base Interruptible Program nominations must be provided by sub-LAP for each BIP aggregated group, DRPs must provide aggregated load reduction nominations by CAISO Resource ID, and CBP aggregators are required to provide weekday and weekend/holiday load reduction nominations by aggregation.
Additionally, aggregators and third-party DRPs will need to provide information about prohibited resources of customers located in disadvantaged communities. Otherwise, ELRP compensation may be withheld until applicable information is given. This information could include the whether the generator(s) were used during ELRP events, the locations (addresses) of the generator(s), type(s) of fuel used, and capacity of the generator(s).
SCE also offers a service provider option for virtual power plant and vehicle-grid-integration sub-groups. Please contact support@elrp.sce.com for more information.
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A nomination is the estimated target load reduction quantity (kW) for an ELRP event incremental to any existing commitments. Participation in ELRP events is entirely voluntary, and no financial penalties will result from not meeting or exceeding the nomination. Starting in the 2022 ELRP season, compensation for an event is not impacted by the load-reduction nomination. Nominations are used to estimate the total expected load reduction. Base Interruptible Program (BIP) aggregators are required to provide load reduction nominations for each aggregated group. Nominations for BIP aggregators should be the aggregate estimated incremental load reduction below the aggregate Firm Service Level (FSL). Non-residential, Virtual Power Plant (VPP), and Vehicle-grid integration (VGI) aggregators are required to provide load reduction nominations at the aggregation level. Third party DRPs are required to provide nominations at the CAISO Resource ID. CBP aggregators will be asked to provide nominations incremental to their CBP nomination. Aggregators may update their nominations at any time by emailing support@elrp.sce.com.
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Vehicle Grid Integration (VGI) aggregators participating in the A.5 Subgroup may elect to use virtual aggregation for some or all the sites in the aggregation when enrolling.
A virtual aggregation permits separately metered EVSE that have a Rule 21 Interconnection Agreement to be aggregated with other load and generation at an electrically contiguous host site. This aggregation will allow export from the EVSE to reduce the host site’s load. Such aggregation will permit an amount up to the sum of the net exports allowed by all available Rule 21 Interconnection Agreements pertaining to the EVSE site and the host site.
Two sites are considered electrically contiguous when they have electric service derived from the same utility distribution transformer secondary and there are no devices on the utility distribution system that can interrupt power flow to only one site.
If you are interested in virtually aggregating electrically-contiguous service accounts, please complete the aggregator enrollment steps and send an email to support@elrp.sce.com stating your interest. The ELRP team will contact you with more information.
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Enrolled BIP, non-BIP and non-CBP aggregators and participating third-party demand response providers (DRPs) may send written notice to support@elrp.sce.com asking to disenroll. The disenrollment will become effective within 30 days after the written notice is received. Through written notice, CBP aggregators can request disenrollment at any time but will remain enrolled through the end of the operating month the disenrollment request is received.
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The Terms and Conditions for Base Interruptible Program, virtual power plant, vehicle-grid-integration and other non-residential aggregators are available here:
The Terms and Conditions for Capacity Bidding Program aggregators and third-party demand response providers are available here:
Questions about ELRP Events
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Events are triggered by the “Energy Emergency Alert (EEA)” process defined by the California Independent Service Operator Operating Procedure 4420.
Day-ahead events are triggered by CAISO EEA Watch notifications, and Day-of events are triggered by CAISO EEA Watch and EEA-1, EEA-2, or EEA-3 notifications. Base Interruptible Program participants are only eligible for compensation for ELRP events that overlap with BIP event periods, and only the incremental reduction below the BIP pre-committed Firm Service Level (FSL) during the overlapping event window is compensated under the ELRP.
SCE reserves the right to dispatch virtual power plant, vehicle-grid-integration, and non-residential aggregations outside of the EEA system in response to forecasted or anticipated grid stress conditions to meet the minimum event hour requirements for these subgroups.
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Event notification emails list the service accounts you enrolled in ELRP, and the event date and time. The exact email message may differ based on the participant and their sub-group. For example, the email to direct-enrolled Base Interruptible Program (BIP) customers and aggregators reminds them they are only compensated for overlapping ELRP/BIP events, and the email to third-party demand response providers (DRPs) states it is a courtesy notification. Customers provide an email address at the time of enrollment for event notifications. For more convenience, download SCE’s free demand response (DR) Alerts application to receive event notifications.
Email event notifications are sent from email@elrp.sce.com, as shown in the sample email notification below:
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Participation in ELRP events is entirely voluntary and no financial penalties will result from not meeting or exceeding your nomination.
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The annual dispatch limit is 60 hours per year. The ELRP program availability is from May 1 through October 31 each year, seven days a week, from 4 p.m. 9 p.m. Events can last anywhere from one hour to five hours and may be called on consecutive days, depending on grid conditions.
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There are no compensated test events for aggregators or third-party DRPs.
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Aggregators and third-party demand response providers (DRPs) will typically be notified of Day-Ahead events by 5 p.m. the day prior, and of Day-Of events shortly after the California Independent System Operator (CAISO) notice is issued.
Virtual power plant, vehicle-grid-integration, and non-residential aggregations have minimum dispatch hours and may be notified day-ahead or day-of in response to other forecasted or anticipated grid stress conditions, such as high locational marginal prices in the CAISO markets and extreme heat waves, to achieve the minimum dispatch hours.
Third-party DRP and Capacity Bidding Program (CBP) aggregator notifications are courtesy notifications. Third-party DRPs and CBP aggregators are solely responsible for monitoring CAISO notices themselves if they plan to participate.
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An ELRP event may be modified or cancelled in response to subsequent CAISO notices. SCE follows the hours specified in California Independent System Operator (CAISO) notices to determine ELRP event hours. Aggregators and third-party demand response providers (DRPs) will be notified of any event updates or cancellations by email and/or text message.
Third-party DRP and Capacity Bidding Program (CBP) aggregator notifications are courtesy notifications. Third-party DRPs and CBP aggregators are solely responsible for monitoring CAISO notices themselves if they plan to participate.
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Aggregators and third-party demand response providers (DRPs) will be notified of events by email and/or text. Capacity Bidding Program (CBP) aggregator and third-party DRP notifications are courtesy notifications. After third-party DRPs have affirmed their intent to participate in ELRP by signing any required agreements and providing contact information for notifications, prior to the event, third-party DRPs will receive these courtesy notifications. Third-party DRPs and CBP aggregators are solely responsible for monitoring California Independent System Operator (CAISO) notifications themselves, if they plan to participate.
Aggregators and third-party DRPs are responsible for notifying their customers of events. Base Interruptible Program (BIP) aggregators may want to notify their customers only of overlapping ELRP/BIP events and may want to restrict any ELRP-specific dispatches to the overlapping event window.
If you are interested in receiving event notifications via OpenADR or any of Olivine’s other dispatch APIs, send a request to support@elrp.sce.com.
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Yes, there are minimum dispatch hours for specified aggregator subgroups. The non-residential aggregator sub-group will be dispatched a minimum of 10 hours per season*. The Virtual Power Plant (VPP) aggregator sub-group will be dispatched a minimum of 20 hours per season*. The Vehicle-grid integration VGI aggregator sub-group will be dispatched a minimum of 30 hours per season*. *Note: Dispatch minimums are not for any particular aggregator. There are no minimum dispatch hours for any other aggregator subgroup.
Questions about Payments
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During ELRP events, aggregators may earn $2 per kWh of incremental load reduction beyond any existing commitments.
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For Vehicle-grid integration (VGI) aggregators, baseline calculations may be used with sub-metered data once the California Public Utilities Commission (CPUC) has approved submetering protocols. Otherwise, the use of sub-metered data will be approved by SCE on a case-by-case basis. Aggregators who elect to use sub-metered data for settlement purposes shall also comply with approved submetering services, as outlined in the Aggregator Participation Agreement. The election to use sub-metered data will apply to all locations in the aggregation.
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Base Interruptible Program aggregator performance payments are calculated at the sub-Load Aggregation Point (sub-LAP) level by multiplying the incremental load reduction (ILR) by the Energy Compensation Rate, which is set at $2/kWh.
The ILR for Base Interruptible Program aggregations is calculated at the sub-LAP level by subtracting the aggregate load during the overlapping event window from the aggregate pre-committed Firm Service Level.
Base Interruptible Program participants are only eligible for ELRP compensation for ELRP event periods that overlap with Base Interruptible Program event periods and only the incremental reduction below the Base Interruptible Program pre-committed Firm Service Level during the overlapping event window is compensated under ELRP.
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Compensation for load reduction delivered during an ELRP event is determined by multiplying the Incremental Load Reduction (ILR) by $2/kWh, then subtracting any CBP Energy payments for any portion of the load reduction counted in the ILR. The ILR is calculated by subtracting the CBP nomination from the CBP aggregation’s ELRP event performance.
The ELRP baseline used to calculated ELRP Event Performance is determined by modifying the applicable CBP baseline to account for the following:
- If elected, count net exports to the distribution grid by customer locations within the CBP sub-LAP aggregation that comply with Rule 21 and other applicable permits
- Exclude prior days with other ELRP events when selecting the set of “non-event, but similar” days when calculating the baseline
- Exclude applicable preceding hours with either CBP retail events or another ELRP event on the day of the ELRP event when calculating the same-day adjustment (SDA) to the calculated baseline in step 2
For more information on the performance and incentive calculations, reference section 3 of the Group B Terms and Conditions.
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Compensation for load reduction delivered during an ELRP event is determined by multiplying the Incremental Load Reduction (ILR) by $2/kWh, then subtracting any California Independent System Operator for any portion of the load reduction counted in the ILR and the California Independent System Operator Opportunistic Revenue. The ILR is calculated by subtracting the California Independent System Operator scheduled award quantities, inclusive of day-ahead market (DAM) and real-time market (RTM), from the Proxy Demand Resource’s ELRP event performance.
The ELRP baseline used to calculated ELRP Event Performance is determined by modifying the applicable California Independent System Operator baseline to account for the following:
- If elected, count net exports to the distribution grid by customer locations within the Proxy Demand Resource aggregation that comply with Rule 21 and other applicable permits
- Exclude prior days with other ELRP events when selecting the set of “non-event, but similar” days when calculating the baseline
- Exclude applicable preceding hours with either California Independent System Operator market awards or another ELRP event on the day of the ELRP event when calculating the same-day adjustment (SDA) to the calculated baseline in step 2
- Allow the SDA in step 3 to +/- 100%
For more information on the performance and incentive calculations, reference section 3 of the Group B Terms and Conditions.
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ELRP performance and payments are calculated for aggregators at the aggregate level. ELRP compensation for load reduction delivered during an event is determined by multiplying the aggregate Incremental Load Reduction (ILR) by $2/kWh. The ILR is the aggregate baseline minus the aggregate net energy.
The baseline specified in section 3.2.1.1 of the Group A Terms & Conditions will be utilized, accounting for any applicable special conditions described in section 3.2.1.2.
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Third-party demand response providers (DRPs) will be paid by check or ACH/wire transfer after the invoice is accepted and approved. SCE will issue payments within 60 days of the invoice date, absent the need for additional information, which would set the 60 days from the time all additional information is received, accepted, and approved, to process the invoice. In case of an audit, the 60-day period is frozen until there is resolution to SCE’s satisfaction.
Capacity Bidding Program (CBP) and Base Interruptible Program (BIP) aggregators will receive ELRP payments through the same process CBP and BIP payments are made, respectively. Virtual Power Plant (VPP), Vehicle-grid integration (VGI), and non-residential aggregators will be paid by check or ACH/wire transfer. Aggregators will receive compensation for the ELRP season on or before March 31 of the following year.
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To receive ELRP compensation, the third-party demand response provider (DRP) shall submit an aggregate invoice for the Cumulative Portfolio Level Net Event Compensation of each Proxy Demand Resource (PDR) Portfolio for the May/June/July period by September 30, and for the August/September/October period by December 31 of the program year. To request the most recent version of the Third Party DRP Invoice Template and submission instructions, please send an email to elrp-general@olivineinc.com. The Cumulative Portfolio Level Net Event Compensation of a PDR Portfolio over one period is determined by summing the Portfolio Level Net Event Compensation across all ELRP events in that period.
The invoice shall be accompanied with the supporting data for each event, including (but not limited to) PDR-specific ELRP Event Performance, California Independent System Operator (CAISO) market event performance, Day Ahead Market (DAM) and Real Time Market (RTM) prices, incremental load reduction (ILR), applicable market awards during the event, applicable CAISO market payments for load reductions counted in the ILR, and ELRP event compensation.