Southern California Edison (SCE) has contracted Comverge Inc. to implement a Virtual Peaking Capacity (VPC) program of up to 40 MW. The program will use demand response resources from SCE's commercial and industrial customers to provide the utility with capacity and energy resources for a term of four years.

Under the VPC program, Comverge will build, operate and maintain a demand response system designed to improve electricity reliability during times of peak usage. This fully outsourced, pay-for-performance program allows SCE to call upon needed capacity under the contract that can be dispatched throughout SCE's service territory.

The Comverge VPC program is designed to grow with the needs of SCE and help make the region's existing demand response resources more efficient, reliable and environmentally friendly. This program and contract was restructured pursuant to the California Public Utilities Commission's earlier decision, where the Commission initially denied the original contract as submitted, but recommended the parties resubmit a new agreement as part of the SCE's application for demand response programs in development. This new agreement remains subject to regulatory approval.