California selected APX Inc. (Santa, Clara, California), a provider of electric power transaction processing services, to operate the California Demand Reserves Partnership program that began operation in July.

As part of the state's “Flex Your Power” initiative, this program provides businesses with a rapid and efficient means to reduce their usage in times of high electric power demand.

The California Consumer Power & Conservation Financing Authority (CPA) administers the five-year program in cooperation with the California Department of Water Resources. Businesses participate in the program through power aggregators that are under contract to the CPA.

Three times larger than any other demand response program in the United States, the Demand Reserves Partnership will make available 1000 MW of peak capacity. Businesses use about half of the peak electricity during weekday afternoon hours, so their reductions have an immediate impact on available supplies.

APX will develop and operate an advanced Internet-based computer system that includes metering communication technology components. When supplies are low due to weather extremes, power plant outages or transmission system bottlenecks, APX will notify participating businesses of the need to reduce power usage in advance and the state will compensate them for standing by with dispatchable, immediately verifiable capacity. APX can target reductions to the geographic areas most impacted by short supplies, and the California ISO can monitor reductions as they occur to aid electric system reliability.
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