CA SB1414

Requires load-serving entities to maintain both physical generating capacity and electrical demand response adequate to meet load requirements, including peak demand and operating reserves.

Establishes demand response products and tariffs as an objective for resource adequacy requirements, allowing demand response to meet or reduce resource adequacy obligations as determined by the Public Utilities Commission.

Mandates the Public Utilities Commission ensure appropriate valuation of demand response resources and establish a mechanism to value their ability to meet distribution needs, transmission needs, and reduce resource adequacy obligations.

Requires the Public Utilities Commission, State Energy Resources Conservation and Development Commission, and Independent System Operator to expeditiously reflect changes in demand from demand response in energy forecasts, planning proceedings, and grid operations.

Establishes rules for demand response programs including customer protections for residential customers, backup generation regulations, metering policies, and methods to calculate customer load shifts for program payments.