AUTHORITY - 1810.2

Executive Order B-18-12 mandates that state agencies participate in “demand response” programs to obtain financial benefits for reducing peak electrical loads when called upon, to the maximum extent that is cost-effective for each state-owned or leased facility, and does not materially adversely affect agency operations.

Federal law requires that the California Independent System Operator (CAISO) maintain specified levels of energy reserves available to the electrical grid. When reserves reach dangerously low levels because electrical demand is high, the CAISO may declare a Stage 1 Electrical Emergency to bring about a reduction in demand. The CAISO can escalate the emergency to Stage 2 and then Stage 3 if curtailment measures do not successfully reduce demand. Finally, the CAISO may use rotating outages to balance the demand for electricity to the available supply.