Document Type


Publication Date



This article examines CAISO’s DER program after its first year of operation. It draws on written comments submitted to CAISO in the course of program development and on interviews the authors conducted with stakeholders – including active and potential DERPs, investor-owned utilities, and customer groups – to identify “barriers” to program participation. Irrespective of whether these barriers are appropriate – e.g., to ensure continued wholesale system reliability as DER penetration increases – they have clearly prevented the DER program fulfilling CAISO’s stated goal. The barriers should, therefore, be considered by other ISO/RTOs in developing programs with similar goals. The authors identify six key lessons that other ISO/RTOs and regulatory authorities can learn from CAISO’s experience.


Environmental Law | Law