San Diego Community Power staff told the board on Dec. 11 that its Smart Home Flex pilot nearly met its thermostat enrollment target and is beginning to enroll heat‑pump water heaters as part of a broader effort to build a virtual power plant.

Nelson Lamelli, senior program manager, said the pilot targeted 2,000 smart thermostats and reached about 1,900 enrollments across six summer events that produced clear reductions in customer load during called events. Based on preliminary analysis and comparators, staff estimated the pilot controls just under 1 megawatt of flexible load from thermostats.

For thermostats, the pilot offered a $50 device enrollment incentive and a $25 participation incentive for allowing the utility to call events. For heat‑pump water heaters, staff offered a $50 enrollment incentive and a $5 per month participation credit (paid twice annually) and is working with the statewide TECH initiative to enroll new installs; staff reported 3–4 Wi‑Fi‑connected water heaters currently under control and plans to expand capacity by shipping universal control modules.

Lamelli said the pilot’s goals are to validate the distributed energy resource management system (DERMS), measure the value to resource adequacy obligations and design an equitable program the agency can scale toward a 50‑megawatt virtual power plant goal. "We're now doing an impact evaluation," he said, and staff will contract an evaluator to quantify savings and participation metrics before returning to the board with a program‑design and budget request during the next budget cycle.

Board members urged staff to prioritize inclusivity and clear public messaging: several directors suggested simpler program names and outreach strategies (texts, direct mail, partnership with regional energy network) to reach renters and lower‑income households that may not own connected thermostats or newly installed water heaters.

Next steps: staff will complete the evaluation, expand water‑heater enrollment via universal control modules, and return with a program design and budget request for fiscal 2026 program launch if the board approves during the budget process.