CPUC approves continuation of Southern California Gas Company smart thermostat program

The California Public Utilities Commission (CPUC) recently authorized Southern California Gas Company to continue its thermostat-based natural gas demand response program.

Following a previous CPUC order directing SoCalGas to address the ongoing natural gas reliability concerns related to the Aliso Canyon Natural Gas Storage Facility, the company implemented a thermostat-based load control demand response program for the winter seasons of both 2017-2018 and 2018-2019. The recent CPUC decision approves a budget of up to $5.87 million for SoCalGas to operate the program for the 2018-2019 winter season.

The program provides incentives to residential customers who allow SoCalGas, through thermostat vendor partners, to adjust their thermostats when the system is constrained. The program will adjust participants’ thermostats by no more than four degrees during peak events. The program provides a $50 enrollment incentive to new participants, and all participants who stay in the program until the end of March 2019 will receive an additional $25.

“We know that because of ongoing limits on the backbone pipeline system in Southern California and the diminished availability of Aliso Canyon, SoCalGas remains unable to meet its 1-in-10-year peak cold day forecast gas demand,” Commissioner Liane M. Randolph said. “This program directly addresses that problem. Thank you to all of the customers who will sign up and do your part. By reducing the amount of gas you use, you are part of the energy reliability solution in Southern California.”

The CPUC directed SoCalGas to evaluate its 2018-2019 winter program and identify, as possible, additional metrics to measure program success and value.