Frequently Asked Questions

General Questions

What is DSGS?
Who is Olivine?

Olivine is a California-based company focused on helping the state meet its ambitious renewable energy and greenhouse gas reduction goals. Olivine, Inc. is the Program Administrator for the California Energy Commission’s DSGS Program, providing the program’s infrastructure and program management. To learn more about Olivine, please visit www.olivineinc.com.

Program Questions

How long is each program season in DSGS?
What is the total duration of the DSGS Program?

DSGS Program funding is authorized under AB 205 (Ting, Chapter 61, Statutes of 2022), AB 102 (Ting, Chapter 28, Statutes of 2023), and SB 101 (Skinner, Chapter 12, Statutes of 2023) with an overall budget of $314 million through June 30, 2027. There is no specific restriction on annual spending or set-aside allotments for enrolled DSGS providers. Incentive payment is available on a first-come, first-served basis. The CEC will provide estimates and updates of DSGS Program expenditures and available funding annually once activity is reconciled.

Enrollment Questions

Am I eligible to participate in DSGS as a customer?
Eligible participants are:
All customers of Publicly Owned Utilities (POUs)
All customers of Federal Power Marketing Administrations (FPMAs)
The following customers of Community Choice Aggregators (CCAs), energy service providers, and electrical corporations:
Customers participating with backup generators.
Customers participating through incentive Option 2 or Option 3 described in the Program Guidelines Chapter 4 and Chapter 5.
Water agencies, which include water utilities, wastewater facilities, and irrigation districts.
A participant is not eligible to enroll in DSGS and receive incentives if the participant’s resource with the DSGS provider is:
Enrolled in the Emergency Load Reduction Program or the Base Interruptible Program
Receiving payment or accounting for the same reduction in use of electricity, including energy export, through any other utility, CCA, or state program.
A cogeneration facility with a Power Purchase Agreement (PPA).
DSGS providers may include additional eligibility requirements for their participants.
A customer participating through Incentive Option 3 must also meet the eligibility requirements described in the FAQ question “Are there additional DSGS Participant eligibility requirements for each Incentive Option?”.
Are there additional DSGS Participant eligibility requirements for each Incentive Option?
Additional participant and VPP aggregation eligibility requirements apply for Incentive Option 3.
Additional Option 3 Participant Requirements:
At a minimum, each individual customer site participating in a DSGS BTM storage VPP must:
Have an operational stationary battery system capable of discharging at least 1 kW for at least 2 hours.
Provide no more than 1,000 kW during any hour of any DSGS program event.
Have permission to operate from the host utility (for example, under a Rule 21 tariff) and operate in a manner compliant with existing rules and tariffs applicable to the site.
Not be participating in a CAISO Proxy Demand Resource (PDR) or Reliability Demand Response Resource (RDRR), unless the participant’s customer energy baseline reflects total gross consumption (that is, consumption independent of any energy produced or consumed by behind-the-meter battery storage) consistent with California ISO tariff Section 4.13.4.
Additional Option 3 VPP Aggregation Requirements:
Consist of storage paired with net-energy metering (NEM) solar or stand-alone storage or both deployed with residential (bundled or unbundled) or nonresidential (bundled or unbundled) customers or both.
Consist of customer sites located within the same utility service territory.
Consist of storage assets nominated for the same duration.
Have a total minimum nominal power rating of 100 kW for aggregations consisting of customers from a single POU or CCA and 500 kW for aggregations consisting of customers from a single IOU. The total nominal power rating is determined by summing the nominal continuous power rating (kW) from the specification sheets of the individual storage devices comprising the aggregation.
Am I eligible to participate in DSGS as a program provider?
Eligible DSGS Providers include:
Retail suppliers as defined in Public Utilities Code (PUC) Section 398.2
FPMAs
Aggregators of customers
Before enrolling customers in the service territory of a local POU, aggregators of customers must complete the following:
Notify each POU of their intent to enroll customers within their service territory by providing the information required below
The aggregator’s name.
Which DSGS incentive option(s) the DSGS provider will offer to participants.
A description of the types of customers (such as residential, commercial, industrial, and so forth) and load reduction resources the aggregator plans to enroll in each incentive option.
Obtain a written statement from each applicable POU that the POU:
Does not object to the aggregator enrolling the POU’s customers to participate in the DSGS Program.
Will provide the aggregator the data necessary for the aggregator to administer the DSGS Program, as determined by the POU, subject to the aggregator (1) receiving authorization from participants and (2) entering into a data sharing agreement with the POU, if required.
Understands it can be reimbursed for its costs associated with the DSGS Program pursuant to Chapter 6, Section B.
Aggregators must provide the CEC a copy of this statement within 5 business days of receipt by the aggregator. POUs may establish terms and conditions for aggregators to enroll the POU’s customers to participate in the DSGS Program, including protocols for communicating and coordinating with the POU regarding program events and the circumstances under which the POU may grant or revoke the aggregator’s ability to enroll the POU’s customers in the DSGS program.
Aggregators of customers must notify IOUs and CCAs in writing of their intent to enroll customers within their service territory. The notice shall include:
The aggregator’s name.
Which DSGS incentive option(s) the DSGS provider will offer to participants.
A description of the types of customers (such as residential, commercial, industrial, and so forth) and load reduction resources the aggregator plans to enroll in each incentive option.
Aggregators must provide the CEC evidence of this notice within 5 business days of sending to the IOU or CCA.
Incentive Options 2 and 3 include additional DSGS provider eligibility requirements.
Are there additional DSGS Provider eligibility requirements for each Incentive Option?
Additional eligibility requirements apply for Incentive Options 2 and 3:
Option 2: To be considered a Demand Response (DR) provider and eligible to administer Incentive Option 2, a DSGS provider, or its authorized third party, must:
Be a third-party demand response (DR) aggregator or POU
Operate within the California ISO balancing authority area
Have at least one proxy demand resource (PDR) registered to participate
Option 3: To be considered a behind-the-meter (BTM) virtual power plant (VPP) eligible to administer Incentive Option 3, a DSGS provider, or its authorized third party, must:
Be a third-party battery provider, POU, or CCA
POUs and CCAs may serve only customers for which they serve as the LSE or retail provider
Send dispatch signals or directly control individual batteries.
Collect and provide hourly or subhourly charge/discharge interval data from a battery inverter or submeter to the CEC.
Receive authorization from participants allowing for use of their device for the purposes of DSGS Program participation.
Comply with the participants’ interconnection agreements (for example, a Rule 21 tariff) if the participant plans to export under the DSGS Program. Dispatch in violation of an interconnection agreement is not eligible for incentive payments.
What information do I need to enroll in DSGS as a customer?
Incentive Option 1: Standby and Energy Payment
Eligible participants must enroll to participate under Incentive Option 1 by submitting the following information in a format provided by the DSGS provider, if enrolling with a DSGS provider, or the CEC, if enrolling directly with the CEC. If enrolling directly with the CEC, utilize the DSGS Direct Enrollment Application Template.
Legal name of the participant.
Participant contact’s name, title, email address, and phone number.
If enrolling with an aggregator or the CEC: utility distribution company, load-serving entity, customer identification number (such as service account identification number), phone number on file with the load-serving entity, or any other information necessary to verify participant eligibility with the load-serving entity, as appropriate.
Information on the load-reduction resources the participant will use during a DSGS Program event, including:
Types of available resources, including the applicable loading order category (for example, demand response, renewable or zero-emission resource, near zero-emission resource, biomethane or natural gas resource, or diesel backup generator or other conventional resource, or any combination of the above).
Address and customer identification number where participant will deploy each resource.
Expected minimum and maximum load-reduction capacity (in kilowatts [kW]) for each resource.
Whether the resource may require a 202(c) emergency order pursuant to the Federal Power Act to participate in the DSGS Program.
Verify in writing that:
The participant meets the eligibility requirements of the DSGS Guidelines to the best of their knowledge.
The participant will allow the CEC access to all documentation to verify compliance with the program.
The information submitted is accurate and complete.
The participant agrees to the terms and conditions of the program.
Any other information the DSGS provider or CEC deems necessary.
Incentive Option 2: Incremental Market-Integrated Demand Response Capacity
Eligible participants must be enrolled in a PDR within the California ISO to participate under Incentive Option 2.
DR providers must collect and retain participant information, which may be reviewed by the CEC in an audit, as described in Chapter 7, Section D of the DSGS Program guidelines.
Incentive Option 3: Market-Aware Behind the Meter Battery Storage
Eligible participants must enroll to participate under Incentive Option 3 by submitting to the VPP aggregator the following information in a form provided by the VPP aggregator:
Legal name of the participant.
Participant contact’s name and title (if contact name is different from legal name) and email address.
If enrolling with an aggregator as the DSGS Provider: utility distribution company, service account address, phone number on file with the utility distribution company, or any other information necessary to verify participant eligibility with the utility distribution company, as appropriate.
Authorization from the participant allowing for the use of their device or site electric load data or both for purposes of program participation.
Acknowledgement and agreement from the participant that:
The participant meets the eligibility requirements of the DSGS Guidelines to the best of their knowledge.
The participant will allow the CEC access to all documentation to verify compliance with the program and program performance.
The information submitted is accurate and complete.
The participant agrees to the terms and conditions of the program.
If claiming a baseline of zero (see Chapter 5.E, Section E in the DSGS Program Guidelines): the permission to operate date is after July 1, 2023, and the participant has not received and will not apply for SGIP incentives.
Any other information the VPP aggregator deems necessary.
VPP aggregators must collect and retain participant enrollment information, which may be reviewed by the CEC in an audit as described in Chapter 7, Section D in the DSGS Program guidelines.
What information do I need to enroll in DSGS as a program provider?
DSGS providers must submit to the CEC the following information through the DSGS Provider Application Template:
Legal name of the DSGS provider.
DSGS provider’s contact name, title, address, email address, and phone number.
Description of how the DSGS provider will verify which load-reduction resources are used by participants.
Description of how the DSGS provider will verify participant eligibility prior to enrollment of participants.
Which DSGS incentive options the DSGS provider will offer to participants.
If offering Incentive Option 1:
Description of how the DSGS provider will implement the dispatch loading order requirements described in Chapter 3, Section D of the DSGS Program Guidelines.
Description of how the DSGS provider will verify actual incremental load reduction amounts, including the DSGS provider’s method for determining energy use baselines and actual energy usage during a DSGS Program event.
Indication of which administrative cost structure described in Chapter 6, Section B, the DSGS provider has chosen.
If offering Incentive Option 2 or Incentive Option 3:
Description of how the DSGS provider meets the eligibility requirements specific to the incentive option and how the DSGS provider plans to implement the program under the incentive option structure, including how the DSGS provider plans to allocate incentives to participants.
If the DSGS provider is an aggregator of customers:
A description of the types of customers (such as residential, commercial, industrial, and so forth) and load reduction resources the DSGS provider plans to enroll and the utility territories in which the DSGS provider plans to operate.
Verify in writing the accuracy and completeness of the information submitted and agreeing to the terms and conditions of the DSGS Program guidelines.

Is there a list of approved DSGS Providers?

Yes. The list of approved DSGS Providers include:

DSGS Provider	Incentive Options Offered	Contact Information	Customer Type	Utility Territories	Description
OhmConnect	2, 3	Name, Title: Sarah Millar, Director of VPP Operations Phone: (844) 646-2664 Email: sarah.millar@ohmconnect.com	Residential, Small Commercial	Pacific Gas & Electric Southern California Edison San Diego Gas & Electric	OhmConnect is a no-cost, no-risk service that notifies you when electricity prices spike in your neighborhood and pays you to save energy during those times. Lower your bills and get paid at the same time.
Sunrun, Inc.	3	Name, Title: Yang Yu, Senior Business Development Manager Email: yang.yu@sunrun.com	Residential customers paired with solar charging batteries	Pacific Gas & Electric Southern California Edison San Diego Gas & Electric
Olivine, Inc (ClimateResponse® VPP)	1, 2	Name, Title: Vasudha Lathey, Vice President Phone: (925) 886-9222 Email: ask@climateresponse.com	Nonresidential with offerings for other customer types	Pacific Gas & Electric Southern California Edison Western Area Power Administration (WAPA) Pomona Choice Energy Lancaster Energy San Jacinto Power Rancho Mirage Energy Authority Pico Rivera Innovative Municipal Energy Energy for Palmdale’s Independent Choice Apple Valley Choice Energy City and County of San Francisco	Join Olivine’s ClimateResponse Virtual Power Plant (VPP) to earn revenue while mitigating the grid impacts of climate change. It’s free to join, there are no penalties, and you remain in control of your buildings. We are a certified woman-owned Disadvantaged Business Enterprise, transforming DER management by implementing innovative programs. We currently administer grid emergency programs across California under our Utility Services business, which is strictly firewalled from our VPP.
Leap	3	Email: partners@leap.energy	Commercial & Industrial, Residential	Pacific Gas & Electric Southern California Edison San Diego Gas & Electric	The Leap Platform streamlines integration with DSGS for commercial and residential battery storage systems. Through its software-only solution and universal API, Leap enables fast, automated participation in DSGS and other energy market revenue opportunities for technology providers and operators. By aggregating the devices enrolled on its platform, Leap supplies virtual power plants (VPPs) to support the grid.
Burbank Water & Power	1	Name: Myles Collins Phone: (818) 238-3561 Email: mcollins@burbankca.gov Name: Drew Kidd Phone: (818) 238-3653 Email: dkidd@burbankca.gov	Only City of Burbank accounts	Burbank Water & Power	Burbank Water & Power is encouraging large commercial customers to enroll directly through the CEC.
Power and Water Resources Pooling Authority (PWRPA)	1	Name: Lauren Schultis Phone: (804) 426-3466 Email: ls@pwrpa.org Name: Cori Bradley Phone: (916) 600-3443 Email: cb@pwrpa.org	Municipal Water and Irrigation Districts	PWRPA/PG&E	Currently, we have one participating water district with availability to shed load of 750kW to 1.5MWs. Two more districts are evaluating participation.
Generac Grid Services, LLC	1	Email: programs@generacgs.com	Commercial & Industrial	Central Coast Community Energy (CCCE) Clean Energy Alliance (CEA) Clean Power Alliance (CPA) CleanPowerSF Desert Community Energy (DCE) East Bay Community Energy (EBCE) MCE Orange County Power Authority (OCPA) Pacific Gas & Electric (PG&E) Peninsula Clean Energy (PCE) San Diego Community Power (SDCP) San Diego Gas and Electric (SDG&E) San Jose Clean Energy (SJCE) Silicon Valley Clean Energy (SVCE) Sonoma Clean Power (SCP) Southern California Edison (SCE) Valley Clean Energy (VCE)	Generac and Energy Systems is offering a turnkey solution to backup generator owners to enhance gride reliability through load reduction during extreme events. The solution delivers a host of benefits to support the DSGS program through asset connectivity and monitoring, event dispatch, and event payment.
Sacramento Municipal Utility District	1	Name, Title: Denver Hinds, Senior Electrical Engineer Email: Denver.hinds@smud.org	Commercial & Industrial	Sacramento Municipal Utility District	Sacramento Municipal Utility District is coordinating participation of load reduction and back up generator resources for our large commercial and industrial customers.
PowerFlex Systems, LLC	3	Email: info@powerflex.com	Commercial & Industrial	San Diego Gas & Electric San Diego Community Power
Flip Energy, Inc.	3	Email: hello@flip.energy	Residential Small & Medium Business	East Bay Clean Energy
Lunar Energy, Inc	3	Roland Dooruyn, Commercial Head US	Residential ESS	Pacific Gas & Electric (PG&E) Silicon Valley Clean Energy (SVCE) Peninsula Clean Energy (PCE) San Jose Clean Energy (SJCE)
Silicon Valley Power	1	Basil Wong Electric Division Manager Email: bwong@santaclara.gov	Industrial	Silicon Valley Power	SVP will coordinate and select customers for participation. Participant must have at least 1 MW of load to participate.
Sunnova Energy International Inc	3	Email: energyservicesmanagement@sunnova.com	Residential	Pacific Gas & Electric Southern California Edison	Enrollment is expected to open in Q1 2024.
Enersponse, LLC	More information coming soon
Everbright, LLC	More information coming soon
TotalEnergies Renewable USA, LLC dBa TotalEnergies Distribute Generation USA, LLC		Email: Energysolutions@totalenergies.com	Small / Medium Business, Commercial & Industrial	Southern California Edison Pacific Gas & Electric San Diego Gas and Electric	As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 GW. TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
Stem, Inc.	3	Email: support@stem.com	Small/Medium Business, Commercial & Industrial	Southern California Edison Pacific Gas & Electric San Diego Gas and Electric

Please check back regularly for updates on new DSGS Providers.

What are the reporting requirements?
DSGS providers must submit the following reports on enrolled participation and backup generation:
Enrolled Participation Reports
Within 10 business days of the DSGS provider’s enrollment, or as soon as practicable, DSGS providers must submit to the CEC an initial report on enrolled participation with the information specified below for each Option. Additionally, DSGS providers must submit to the CEC updated enrolled participation reports in a format provided by the CEC to identify changes to participation as follows:
Incentive Option 1: Within 5 business days after any changes to participants enrolled or expected load reduction resources.
Incentive Option 2: Before the first day of each month.
Incentive Option 3: Before the first day of each month the VPP participates in the DSGS Program.
Enrolled Participation Report for Incentive Option 1.
The initial report must include the following information on each participant enrolled under Incentive Option 1, segmented by host balancing authority, in a format provided by the CEC:
Name of the participant.
Participant contact’s name, title, email address, and phone number.
Information on the load reduction resources the participant will use during a DSGS Program event, including:
Types of available resources, including the applicable loading order category (for example, demand response, renewable or zero-emission resource, near zero-emission resource, biomethane or natural gas resource, or diesel backup generator or other conventional resource, or any combination of the above).
Address and customer identification number where the participant will deploy each resource.
Expected minimum and maximum load reduction amount (in kW) for each resource.
Whether the resource may require a 202(c) emergency order pursuant to the Federal Power Act to participate in the DSGS Program.
Enrolled Participation Report for Incentive Option 2.
California ISO Resource ID(s) for all resources under the aggregator enrolled in DSGS.
Number of end-use customers and customer class, sector, or load type of customers for each Resource ID.
Enrolled Participation Report for Incentive Option 3.
The utility distribution company service territory and nominated duration for each aggregation participating in the DSGS Program. DSGS providers should submit no more than one entry for each combination of utility distribution company and nominated duration.
Information on each participating site, including a unique identification number, legal name of participant, contact name and title (if contact name is different from participant name), service account address, phone number, UDC, nominal battery power rating (kW), nominal storage energy capacity (kWh), and nominated duration (hours).
If available: customer identification number (for example, service agreement ID) and LSE, included with above.
If claiming a baseline of zero (see Chapter 5, Section E): A field indicating the customer has attested that the relevant resource is not and will not receive Self-Generation Incentive Program (SGIP funding) and the permission-to operate date is on or after July 1, 2023.
Backup generation reports:
Please see the FAQ question “What are the CARB reporting requirements for combustion resources?” for more information about backup generation reports.
All reports can be submitted by uploading them here.
What are the Terms and Conditions?
How do I disenroll from DSGS?

DSGS providers can voluntarily withdraw from the program at any time by emailing dsgs-support@olivineinc.com. Voluntary withdrawal from the program does not preclude the DSGS provider from reapplying in the future. Withdrawal from the program will remove all of the DSGS provider’s enrolled DSGS participants from the program. DSGS providers that withdraw are still eligible to submit claims for events that occurred during their enrollment period.
DSGS participants can voluntarily withdraw from the program at any time by notifying their DSGS provider or emailing dsgs-support@olivineinc.com if directly enrolled in the program. Voluntary withdrawal from the program does not preclude the participant from reapplying in the future. Participants are still eligible to receive payment for events that occurred during their enrollment period.

Backup Generator Questions

Is the use of combustion resources to respond to a DSGS event permitted?

Participants enrolled in Option 1: Standby and Energy Payment may dispatch combustion resources during an EEA level of EEA 2 or higher if the Governor issues an emergency proclamation. Participants may only dispatch at a lower EEA level (Watch or EEA 1) if explicitly authorized by the Governor Emergency Proclamation. Participation in the program does not waive any air or operation permit requirements.

Participants that receive a controllable generation incentive may not dispatch at an EEA level lower than EEA 2, regardless of any emergency proclamation. DSGS providers and direct participants will be notified of any change in the EEA level at which combustion resources may be dispatched.

Participants utilizing combustion resources must submit reports to CARB on the use of their backup generation as a precondition to receiving incentive payments.
What are the CARB reporting requirements for combustion resources?
Within 10 business days after the end of each month in which a DSGS Program event occurred, DSGS providers or participants participating in Incentive Option 1 must submit a California Air Resources Board (CARB) Report with the following information regarding backup generation participants used during a DSGS Program event. DSGS providers and participants can submit CARB Reports by uploading them here.

The address or GPS coordinates where such backup generation occurred

Information on whether the backup generation is portable or stationary

The engine size, age, rated horsepower, and federal emissions tier for each generator dispatched under the program

The type and amount of fuel used by each generator dispatched under the program

The hours of operation on each day with a program event of each generator dispatched under the program

The program team will share all reports with CARB.

DSGS providers must determine with their participants who is responsible for submitting the reports. Participants enrolled directly with the CEC are responsible for submitting the reports.

The CEC will not approve requests for incentive payments for backup generation until CARB receives the report associated with that backup generation for each month in which the backup generation participated.
What are the requirements for a Backup Generator to be eligible for the Controllable Generation Incentive?
Participants using backup generators powered by biomethane, natural gas, or diesel that are remotely controllable shall receive a one-time bonus incentive of $2.00/kW or $1.50/horsepower (HP), as defined on the specification sheet of the generator. To be considered remotely controllable, the backup generator must be:

Able to start and stop operation without physical intervention on site.

Connected to controls by the internet, a local area network, or similar on-site network.

Capable of ramping to the full power output (kW or HP) capacity within 15 minutes.

Able and programmed to log and record generator runtime, fuel consumption, or electric generation in hourly or subhourly increments.

Participants may receive this controllable generation incentive after the system is installed and operational.

Backup generators receiving the controllable generation incentive are subject to additional dispatch limitations described in Chapter 3.E of the DSGS Program Guidelines.

The total amount of incentives paid under this section shall be limited to $2,000,000 and may be paid from funds from the Distributed Electricity Backup Assets Account.
Can I export energy during a DSGS event?

Exports are allowed and compensated for customers with interconnection agreements participating in Incentive Option 1: Standby and Energy Payment and Incentive Option 3: Market-Aware Behind-the-Meter Battery Storage Pilot. Participants must comply with their interconnection agreement. Dispatch in violation of an interconnection agreement is not eligible for incentive payments.

Event Questions

When will a DSGS event occur?
Incentive Option 1: Standby and Energy Payment

Resources enrolled in Incentive Option 1 are dispatched to reduce electric load in response to Energy Emergency Alert (EEA) Watch, EEA-1, EEA-2, or EEA-3 notices issued by any California balancing authority. If the start time or end time identified in the EEA notice is not hour-aligned, participants may dispatch resources for the full hour, unless the notice is within 10 minutes of the end of the current hour, in which case the start time of the dispatch period is the beginning of the next hour.

DSGS Option 1 dispatch periods can occur during the program season from May 1st to October 31st of each year. Dispatch periods are not anticipated to take place outside of the 3:00 p.m. to 10:00 p.m. timeframe but may vary depending on grid conditions.

Participants may respond to an EEA issued by any California balancing authority at the discretion of the DSGS provider, or for direct participants, at the discretion of the CEC in coordination with the balancing authority issuing the EEA and the participant’s host POU. If two or more California balancing authorities issue an EEA during the same time frame, participants shall prioritize providing load reduction to the balancing authority area in which the participant is located.

Incentive Option 2: Incremental Market-Integrated Demand Response Capacity

Demonstrated capacity will be calculated based on resource availability and performance during a defined daily availability window. For a resource with a capacity obligation on a monthly resource adequacy (RA) showing, the RA availability and bidding rules take precedence over DSGS on days when the must-offer obligation of a resource is subject to the Resource Adequacy Availability Incentive Mechanism (RAAIM)*.

On days when a shown DR resource must-offer obligation is not subject to RAAIM and for all days for resources that are not shown on a supply plan, the resource must bid or self-schedule for at least three consecutive hours between 4:00 p.m. and 10:00 p.m. However, unlike the must-offer obligation under the RA program, DSGS does not require offering any minimum amount (MWh). Instead, the DR provider may determine the appropriate amount to offer; this amount may factor into demonstrated capacity if dispatched. If the DR provider does not bid (or self-schedule) during these hours, a value of zero will be utilized for the performance calculation.

* Resource adequacy resources generally have a 24×7 must-offer obligation, unless otherwise specified by the CAISO Tariff.

Incentive Option 3: Market-Aware Behind the Meter Battery Storage

Participants in Incentive Option 3 may be dispatched 7 days a week between 4:00 p.m. and 9:00 p.m. from May 1 to October 31. An event may last from one hour to the maximum resource duration.

Option 3 events are called based on California ISO day-ahead local marginal prices (LMP) for the default load aggregation point (DLAP) of the host UDC, or the Path 15 zone of the host UDC if a DLAP is not available*. An event is defined by any hour that meets both of the following two price-based criteria within the program hours:

Absolute Price Trigger: The LMP must be greater than or equal to $200/MWh. If no hours within the program window meet this threshold, no event shall be called.

Nonconsecutive Prices ≥$200/MWh: If multiple hours within the program window meet the absolute price trigger but are not consecutive, the hour or hours in between shall also be considered to meet this criterion.

Relative Price Trigger: The hours with the highest mean consecutive LMP over the duration of the 2-, 3-, or 4-hour capacity commitment. If the number of hours where the day-ahead LMP ≥$200/MWh exceeds the nominated capacity duration, only those consecutive hours with the highest mean LMP shall be considered event hours.

Equal Values: If the highest mean consecutive hourly price applies to more than one set of hours (that is, if there is a tie), the event will be the first (that is, earliest) set of hours meeting these conditions.

There is a maximum of 35 events per program season and a minimum of 1 event per month. If the events called in a month bring the total for a given resource called to more than 35, events for that program year, the events in that month with the highest performance shall be included in the 35-event maximum and used to determine demonstrated capacity. Participation in more than 35 events is not required. If there is not a DSGS Program event called in a given month, the VPP aggregator can call a test event. Test events do not count toward the maximum number of DSGS events. For more information on test events, reference the FAQ.

* The UDCs and corresponding aggregate pricing node IDs are Pacific Gas and Electric (“DLAP_PGAE-APND”), Southern California Edison (“DLAP_SCE-APND”), San Diego Gas & Electric (“DLAP_SDGE-APND”), and the POUs of Anaheim, Azusa, Banning, Pasadena, Riverside, and Vernon (SP15, “TH_SP15_GEN-APND”).
What do I need to do to get a Standby Payment?

When a California balancing authority issues an EEA Watch or an EEA 1, DSGS providers, or the CEC for direct participants, will notify all participants with combustion resources of a DSGS standby event and to be ready to potentially dispatch if a DSGS dispatch event is issued. DSGS providers and direct participants must determine the amount of incremental load reduction that would be available from combustion resources during each hour of the EEA Watch or EEA 1 time frame (standby commitment). Participants are not required to provide a standby commitment, but must provide a standby commitment to be eligible for a Standby Payment. Participants must provide a standby commitment in response to each DSGS standby event. Standby commitments are specific to a single DSGS standby event and are not carried over to subsequent DSGS standby events.

DSGS providers, or the DSGS provider’s balancing authority, shall report to the applicable balancing authority and the CEC the amount of incremental load reduction committed to be available during the EEA Watch or EEA 1 time frame within one hour or as quickly as feasible after the balancing authority issues the EEA Watch or EEA 1, but before the event start time.

DSGS providers and direct participants shall provide to the CEC any updates to the standby commitments as soon as practicable.
Can I be reimbursed for costs incurred for participating in DSGS?
Incentive Option 1 Participants: Participants can be reimbursed for incremental increases in customer demand charges that result from participation in the program and are incurred during the billing period in which a DSGS Program event occurred, if any.

Option 1 DSGS Providers: The CEC reimburses each DSGS provider for up to $1 million per year in administrative costs associated with implementing Incentive Option 1 based on the administrative cost structure identified in the initial application. The Option 1 DSGS provider shall select one of the following administrative cost structures:

Actual incremental costs incurred in administering the program, such as costs derived from employee timesheets or invoices from third-party contractors, pending specified conditions, and for indirect/overhead costs (not to exceed 10 percent of actual incremental costs).

10 percent of incentive payments provided to participants under Incentive Option 1, or if an electrical corporation, 5 percent of incentive payments provided to participants under Incentive Option 1.

Non-Provider Utilities: The CEC shall also reimburse utilities not enrolled as DSGS providers for actual incremental costs incurred in facilitating an aggregator’s administration of the program in the utility’s service territory and a direct participant’s participation in the program. Each utility not enrolled as a DSGS provider is limited to reimbursement of up to $250,000 each year in actual incremental costs.

To receive a reimbursement for administrative costs, submit a claim to the CEC. More information about claim templates and submission process will be made available at a later date.
Are there test events?

Incentive Options 1 & 2: There are not any test events.

Incentive Option 3: In the absence of a program event during a participation month, a VPP aggregator must define one or more test events to substantiate a demonstrated capacity value. The VPP aggregator must communicate test event details such as date, start time, and end time to the CEC. The test hours must be consistent with the relative price trigger (that is, must occur during hours with the highest consecutive LMPs within the program hours) and last for the duration of the capacity commitment. A VPP aggregator may take the highest performance of multiple test events as the demonstrated capacity. Test events do not count toward the maximum number of DSGS events.
When and how will I be notified of a DSGS event?
Can DSGS events be modified or canceled?

Incentive Option 1: A DSGS event may be modified or canceled in response to subsequent balancing authority Energy Emergency Alert (EEA) notices. DSGS Providers and directly enrolled participants will be notified of any event updates or cancelations. DSGS Providers are responsible for notifying their participants of event updates or cancelations.

Incentive Options 2 & 3: DSGS events are not modified or canceled.

Incentive Payment Questions

How much money will Incentive Option 1: Standby and Energy Payment participants earn?
Participants enrolled in Incentive Option 1 are eligible to receive the following payments:

Energy Payment: Participants will earn an incentive of $2 for each kilowatt-hour (kWh) of load reduction relative to their resource’s typical energy usage during DSGS dispatch events.

Standby Payment: Participants using combustion resources that provide a standby commitment identifying their available combustion capacity upon notice of a DSGS standby event receive a standby payment of $0.25 per kWh for each hour their resource is not dispatched. The standby payment will be based on the standby commitment. If the actual average load reduction during the dispatch period is less than the standby commitment, the standby payment is prorated to reflect the actual average load reduction demonstrated by the resource.

Increased Customer Demand Charge: Participants can also be reimbursed for incremental increases in customer demand charges that result from participation in the program and are incurred during the billing period in which a DSGS Program event occurred, if any.

Controllable Generation Incentive: Backup generators powered by biomethane, natural gas, or diesel that are remotely controllable can receive a one-time bonus incentive of $2.00/kW or $1.50/horsepower (HP), as defined on the specification sheet of the generator.

The default load reduction compensated by the Energy Payment is calculated as follows. DSGS providers may propose an alternate method of calculating verified incremental load reduction in their application. DSGS providers are responsible for calculating performance and payments for their Option 1 participants.

Step 1: Calculate the energy baseline (EB). A service account must have at least 10 similar days of interval meter data available to have a valid baseline.

Step 2: The EB and adjusted energy baseline (AEB) will all be calculated at the service account level. The EB and AEB will be calculated on an hourly basis using the average of the preceding similar days.

Step 3: Calculate the day-of adjustment value (DOAV). A DOAV shall not be less than 0.60 or greater than 1.40. The DOAV is a ratio of (a) the average load of the first three hours of the four hours prior to the event to (b) the average load of the same hours from the days selected in accordance with Step 2 above. If either (a) or (b) are negative, the DOA is 1.0.

Step 4: Calculate the adjusted energy baseline (AEB). – When the EB is greater than zero, a service account’s AEB for a DSGS event is calculated by multiplying the EB by the DOAV. If this value is less than zero in an hour, the AEB shall be considered zero for that hour.

Step 5: Calculate the incremental load reduction. The incremental load reduction for each hour is the AEB minus the actual event load. If this value is negative, the incremental load reduction in that hour shall be considered zero.

If the participant has an interconnected device with export capability under the interconnection agreement, the participant may choose to count exported energy, up to their export rating, in the incremental load reduction calculation. In that case, the baseline is modified to account for exported energy during non-event days and count exported energy in the incremental load reduction.
How much money will Option 2: Incremental Market-Integrated Demand Response Capacity Pilot participants earn?

DR providers enrolled in Option 2 receive incremental DR capacity incentive payments based on demonstrated capacity in excess of resource adequacy capacity commitments. DR providers shall allocate incentive payments between the DR provider and its participants pursuant to the terms and conditions agreed upon by the DR provider and participants. Demonstrated capacity is calculated based on resource availability and performance during a defined daily availability window. The DSGS incremental DR capacity prices vary by month, as shown in the following table.

Incremental DR Capacity Prices by Month ($/MW)

Month Capacity Value

May $9,000

June $9,300

July $16,800

August $18,000

September $19,200

October $10,500

Season Total $82,800

Reference Chapter 4 Section E of the DSGS Guidelines for more information on incremental demonstrated capacity calculations.

Bonus Payment: DR providers will be awarded an additional 30 percent bonus applied to capacity incentives for program years 2023 and 2024 for early participation in the program. Additional bonuses in future years may be provided at CEC discretion.

Additionally, DR providers are eligible to receive incentives for the months of May, June, and July 2023 on the condition that DR performance data from each month is included in the calculation of demonstrated capacity.

Month	Capacity Value
May	$9,000
June	$9,300
July	$16,800
August	$18,000
September	$19,200
October	$10,500
Season Total	$82,800

How much money will Option 3: Market-Aware Behind-the-Meter Battery Storage Pilot participants earn?

VPP aggregators receive incentive payments based on demonstrated battery capacity of an aggregated VPP. VPP aggregators shall allocate incentive payments between the VPP aggregator and its participants pursuant to the terms and conditions agreed to between the VPP aggregator and participant. Different levels of incentives are available for VPPs of varying durations (i.e. 2, 3, or 4 hours). Aggregators are eligible for a payment for demonstrated capacity at the varying monthly rates in the following table based on the capacity (kW) and duration (hours) demonstrated by the aggregator in each month.

Monthly BTM Storage Capacity Prices by Month ($/kW)

Month	4-Hour	3-Hour	2-Hour
May	$9.00	$8.10	$6.75
June	$9.30	$8.37	$6.98
July	$16.80	$15.12	$12.60
August	$18.00	$16.20	$13.50
September	$19.20	$17.28	$14.40
October	$10.50	$9.45	$7.88
Annual Total	$82.80	$74.52	$62.10

Reference Chapter 5 Section E of the DSGS Guidelines for more information on how battery performance is measured.

Bonus Payment: VPP aggregators will be awarded an additional 30 percent bonus applied to capacity incentives for program years 2023 and 2024 for early participation in the program. Additional bonuses in future years may be provided at CEC discretion.

Additionally, VPP aggregators shall receive incentives for the months of May, June, and July 2023 based on their highest monthly demonstrated capacity shown in program year 2023.

How and when will I get paid?
DSGS Providers, customers directly enrolled with the CEC, and non-Provider POUs must submit claims for administrative costs (Option 1 DSGS Providers and POUs only) and incentives. The CEC reviews claims on a first-come, first-served basis.

The date and time of the electronically submitted completed claim will establish the order for the queue for review of claims.

The CEC shall notify claimants if claim packages are incomplete. The claimant shall supplement the incomplete claim within 10 business days. Failure to respond within the 10 business days will result in the cancellation of the claim.

The cancellation of a claim does not preclude a claimant from resubmitting a claim, but the date and time of the electronic resubmission will determine the order of review of the claim.

More information about the claim submission template and process will be made available at a later date.