Clean capacity provider Comverge has entered into a new contract with Southern California Edison to implement a virtual peaking capacity program of up to 40MW.

The program will utilize demand response resources from Southern California Edison’s (SCE) commercial and industrial customers to provide the utility with capacity and energy resources for a term of four years.

Under the virtual peaking capacity (VPC) program, Comverge will build, operate and maintain a demand response system designed to improve electricity reliability during times of peak usage. This fully outsourced, pay-for-performance program will allow SCE to call upon needed capacity under the contract that can be dispatched throughout its service territory.

This program and contract was restructured pursuant to the California Public Utilities Commission’s earlier decision, where the commission initially denied the original contract as submitted, but recommended the parties resubmit a new agreement as part of the SCE’s application for demand response programs in development.

Lisa Cagnolatti, SCE vice president of business customer division, said: SCE relies on innovative companies such as Comverge. We appreciate technology that further enhances the reliability of the electric grid, and helps our company meet its goals of providing cleaner, greener energy solutions.