The California Public Utilities Commission last week ordered Pacific Gas & Electric and San Diego Gas & Electric to revisit the results of the state's second demand response auction, and procure additional capacity up to budget limitations.

Following the state's second Demand Response Auction Mechanism (DRAM), a group of suppliers complained the utilities examined less than half the bids required and should have acquired more capacity. Comverge, CPower, EnerNOC and EnergyHub, had petitioned the CPUC in August to direct utilities to acquire more capacity. “The Commission has stated that the minimums are just that—a floor, not a ceiling,” the group wrote.

When the auction results were announced in August, the three investor-owned utilities had acquired roughly 81 MW, with Southern California Edison netting 56 MW, PG&E clearing 21.4 MW and SDG&E netting 4 MW. SCE's auction results have already been approved.

PG&E will be required to spend another $6 million, and SDG&E must acquire $1.5 million more in DR resources. They will have 30 days to develop a plan to address the order.