2026 Demand Response Request for Proposals

Puget Sound Energy (PSE) seeks qualified respondents to supply demand response (DR) resources to help fulfill the 2024 Decarbonization Act for Large Combination Utilities (DALCU) compliance requirements. DALCU requires PSE to achieve a load flexibility portfolio accounting for 10% of peak load beginning in 2030, or the maximum amount deemed technically and commercially feasible by the Washington Utilities and Transportation Commission (UTC). PSE estimates it will need approximately 500 MW of DR capacity year-round by 2030 to meet this requirement and currently has 129 MW of DR capacity in its portfolio.

Proposals must provide complete, turnkey DR programs that include customer acquisition, technology deployment, ongoing operations, reporting, and performance delivery. Respondents assume full performance risk and accountability for delivering contracted DR capacity, with payment contingent on verified performance during dispatch events. Proposals must demonstrate the ability to deliver a minimum of 50 MW of net-new capacity by 2030, with capacity availability preferred to start in mid-2027. Multi-aggregator proposals must identify a single primary contract owner responsible for coordinating sub-aggregator performance. Proposals may address single or multiple complete DR programs encompassing residential, commercial, and industrial customer segments. All proposals must clearly demonstrate how they provide net-new growth complementary to PSE's existing DR program portfolio without duplicating customer participation.

Key dates include Intent to Bid and Questions Due on April 30, 2026; PSE Responses to Questions on May 15, 2026; Proposals Due on June 1, 2026; and Target Contract Execution on December 15, 2026. Respondents must meet minimum qualifications including three years of DR program delivery experience, demonstrated financial capability with audited financial statements for three years, investment-grade credit rating or acceptable credit support, professional liability insurance minimum $2 million per occurrence, general liability insurance minimum $5 million per occurrence, and customer satisfaction rating minimum 4.0/5.0. Technical qualifications require demonstrated experience with utility-scale DR programs (minimum 5 MW delivered capacity), SOC II Type II certifications, proven integration capability with utility dispatch systems, NIST Cybersecurity Framework compliance, and 24/7 operations center capability.

Proposals must include comprehensive customer acquisition and engagement plans addressing marketing, enrollment, ongoing engagement, and equity compliance. Minimum 30% named communities participation and minimum 6% deepest need residential customer participation are required. Proposals must describe integration solutions with PSE's enterprise systems, deliver exceptional customer experiences with multilingual support and ADA-compliant communications, and demonstrate reliable and measurable system peak capacity and energy savings delivery. Performance-based contracts will tie to MW capacity goals, with respondents required to maintain minimum 80% customer retention rate, proven dispatch response time within specified parameters, and successful accuracy in measurement and verification compared to third-party evaluation studies.