California utilities have been exploring the use of critical peak pricing (CPP) to help reduce needle peaks in customer end-use loads. Recent experience has shown that customers have limited knowledge of how to operate their facilities to reduce their electricity costs under CPP. LBNL has been conducting research to demonstrate how price-response could be automated using XML-based communication with Energy Information System (EIS) and Energy Management and Control System (EMCS). Fully-automated electric load shedding was demonstrated at 18 sites in summer 2004, with average demand reductions of about 10%. This presentation provides an overview of LBNL fully-automated demand response demonstration, and its strategic application to CPP.