The state's largest utilities have demand response programs in place, and combined they budget hundreds of millions of dollars towards the initiative. But the programs have stopped growing, are not meeting their potential and, while some do qualify for resource adequacy planning, they are never dispatched except for trial run purposes, according to critics.

In 2012, the CPUC approved demand response programs and budgets through 2014 for Pacific Gas and Electric Co. ($191,886,588), San Diego Gas & Electric Co. ($65,806,526), and Southern California Edison Co. ($196,338,052). But for several years, California missed a goal that demand response would meet 5% of the state's peak demand.

Observers of California's demand response initiatives note the programs may be considered for resource planning at the CPUC but never make the dispatch list for the California ISO. Barriers between the marketing side and operations at utilities make it difficult to implement the programs as well, and some utilities may not have the confidence that program participants will actually curtail demand when asked.

But now the state has lost 2,000 MW due to the closing of the San Onofre nuclear plant. Meanwhile, the state's gas-fired generators are aging, and the State Water Resources Control Board has called for the phased elimination of generating plants that use once-through cooling by 2020 or earlier.

All of this begs the question: Has California reached the point where promoting demand response resources is less about ideology, and more about keeping the lights on?

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