APX to operate new State of California program that boosts business power conservation

SANTA CLARA, Calif., June 20, 2002 — The State of California has selected APX Inc., a provider of electric power transaction processing services, to operate the California Demand Reserves Partnership program that will begin operation in July.

As part of the state’s “Flex Your Power” initiative, this new program will provide businesses with a rapid and efficient means of responding to times of high electric power demand by reducing their usage. This will be the largest demand response program in the U.S. to allow business power reductions to be scheduled and dispatched into the transmission grid, when and where needed.

The California Consumer Power & Conservation Financing Authority (CPA) administers the five-year program in cooperation with the California Department of Water Resources (CDWR). Businesses will 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 U.S., the Demand Reserves Partnership will make available up to 1,000 megawatts of peak capacity. This is enough to keep the lights on in 500,000 California homes with the cleanest power of all and without building 20 more costly peak power plants. Because businesses use about half of the peak electricity during weekday afternoon hours, their reductions have an immediate impact on available supplies.

“This program is a perfect example of the Power Authority’s mission to provide the state with affordable, reliable, and clean reserves,” said Laura Doll, chief executive officer of the CPA.

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, participating businesses will be notified of the need to reduce power usage in advance and will be compensated by the state for standing by with dispatchable, immediately verifiable capacity.

Reductions can be targeted to the geographic areas most impacted by short supplies, and the California Independent System Operator (CAISO) can monitor reductions as they occur to aid electric system reliability. Businesses will access their reduction reports and other information on a program Web site provided by APX.

“APX is pleased to put its California-bred technology and nationwide and international power transaction expertise to work in our home state, where it can help to maintain the stability of energy supplies,” said John Yurkanin, president and CEO of APX, which has unmatched experience throughout the U.S. in power scheduling, demand response services, and developing and operating systems that monitor and report power production.

Said John Melby, APX senior vice president of North America, “This program means that the state can dispatch power reductions just like electricity from a power plant. The power made available by the program will have no construction costs, fuel costs, or pollutants.”

About CPA:

The California Consumer Power & Conservation Financing Authority (CPA) was established in 2001 to foster diverse, economic, and adequate electric power reserves. More information is available at www.capowerauthority.ca.gov/.

About APX Inc.:

An independent transaction processing agent for wholesale electric power markets, APX processes more than 500 million megawatt hours per year for approximately 200 client companies in North America and Europe. Services include trading platforms and brokerages, scheduling, clearing, settlement, and market infrastructure systems. A privately held company, APX has its main office in Santa Clara, Calif., and regional offices in: Long Beach, Calif.; Houston, Texas; Middletown, Conn.; London, England; Oslo, Norway; and Stavanger, Norway. More information is available at www.apx.com.

Author

  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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