AMIT-DSWG Workshop ‘AMI’s Next Frontier: Demand Response Part 2’

AMIT-DSWG Workshop‘AMI’s Next Frontier: Demand ResponsePart 2’

2December 16, 2011

Review of Goal

AMIT/DSWG Workshop

See Project Goal document

3December 16, 2011

Update from each group – highlights, review of issues

AMIT/DSWG Workshop

ERCOT / DSWG (ISS-002)

Jay Zarnikau, Frontier Associates

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ERCOT / DSWG assignments

• Update from each group – highlights, review of issues– ERCOT / DSWG (ISS-002)

– Mass Market Loads in Energy & Ancillary Services markets• Enable aggregations of loads with advanced metering to participate as

Load Resources in SCED, and also participate in the Ancillary Services markets and be dispatched economically by SCED.

– Near-term resource adequacy• Create or modify demand side products or services that can make new DR

capacity available quickly and potentially be counted in ERCOT's calculation of planning reserves.

– Lessons from Capacity Markets• Review best practices in capacity markets and modify them for the Energy

Only Market Design.• This recognizes that there is little interest in changing the energy-only

design. Examine how demand resources are purchased in markets with ICAPs, etc.

December 16, 2011 AMIT/DSWG Workshop

5

ERCOT / DSWG assignments - Continued

– Advanced notification of wholesale prices• In the current environment, Load Zone 15 minute prices are known after

the settlement interval has expired. Ideally notification would be at least 90 seconds prior to the interval starting.

– Customer acceptance of DR• Lack of comprehensive knowledge of customer tolerance of Demand

Response (frequency and type of deployments).

– DR products with longer lead times (ramp periods).• Current ERCOT DR products have 10 to 30 minute ramp requirements.• Longer ramp periods could attract more customer participation, especially

for smaller loads.


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ERCOT / DSWG assignments - Continued

– Identify customers participating in DR/price response.• ERCOT & TDSPs could benefit from knowing which customers are enrolled

in DR/price response products.• Could benefit load forecasting and grid operations.

– Effects of price response (voluntary or passive load response)• Need study to obtain a better understanding of existing price responsive

load.


7December 16, 2011


AMIT/DSWG Workshop

Market Design (ISS-005)

Paul Wattles, ERCOT

8

Market Design assignments

• Update from each group – highlights, review of issues– Market Design (ISS-005)

• Fragmented Benefits

– No single entity captures sufficient benefits to justify investment in DR tools.

• Customer Churn (Choice)

– Tendency of retail contracts to be short term (24 months or less) may not allow for REP cost recovery for products and services that include DR/Load management equipment.This barrier does not apply to products and services based purely on price incentives (IE, TOU) that rely on behavioral changes.

• Regulatory and Legislative Environment

– Under PURA, DR-related products cannot be mandated and there is limited ability for policymakers & regulators to affect product design and stimulate DR-related products.


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• Lack of ability for customers to participate directly in wholesale energy market

– Load Participation in SCED/Economic dispatch of Loads, based on energy offers, for ERCOT Ancillary Services would attract new DR participation

• Limits on access to AMI data

– Revised rules for access to SMT data for DR providers and retail aggregators could lead to additional DR-related products

• Lack of tools to maximize DR in the short term for grid reliability

– What incentives can be put in place to attract new DR participation in advance of summer 2012?


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– Any new issues?

• New - Lack of time differentiation in T&D Rate Design

– Current profiled, consumption-based T&D rates do not create incentives for small customer demand response


11December 16, 2011


AMIT/DSWG Workshop

PUC (ISS-001)

Christine Wright, PUC Staff

12

PUC Staff assignments

• Update from each group – highlights, review of issues– PUC Staff(ISS-001)

• Energy Efficiency (SB-1125) and EILS rulemaking

– Issues and language changes will be addressed during the respective rulemakings

• Need a vision on the direction of DR from the commission

– Commissioners have been supportive of DR and believe it is important. They are able to act on individual projects when they come before the commission. The commission can only act on contested cases or by rulemaking.

• Coordinated approach between market participants is supported

• This electric market is a competitive market. The Commission has historically not been in favor of requiring REPs to offer certain products. If the market is competitive, and a product is desired, then REPs will offer it.

• Third Party access to data is being addressed with the SMT efforts underway.


13December 16, 2011


AMIT/DSWG Workshop

AMIT Steering / TDSP (ISS-003, ISS-004, ISS-008, ISS-010)

Andrea O’Flaherty, Project Manager, SMT

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AMIT Steering / TDSP assignments


15December 16, 2011


AMIT/DSWG Workshop

Customer (ISS-006)

Jay Foliano, HAN Development Oversight Coordinator

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Customer subgroup

• Update from each group – highlights, review of issues– Customer (ISS-006)

• Programs and customer acceptance are evolving

• Customer education strategy discussions are beginning, much work to be done in 2012

• Sharing of ideas, many great references are available and being circulated among the group

– 2011 State of the Consumer Report – Smart Grid Consumer Collaboration

– The National Action Plan Communications Umbrella-Action Guide

– 2011 IBM Global Utility Consumer Survey» “This year’s survey points to a need and an opportunity to go back

to basics and educate consumers by using terms that they understand, behavioral triggers and channels they already use. People want to conserve energy; we just need to get better at showing them how.”


17

GE Customer Survey presentation

• Insert J.T. Thompson’s presentation

• GE Appliances and Lighting Home Energy Solutions– Energy Perceptions and Usage Survey Results


18

Comverge Customer Perspectives presentation

• Insert Ed Reyes’ presentation

• Comverge Inc. - – Ideas from Other Markets


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Afternoon session – what to expect

• Difficulty of each recommendation

– High• Examples:

– Requires legislation– Requires PUC Rule– Millions of $– Multi-year development– Etc.

– Medium• Examples:

– Protocol / Guide Revision– Less than 2 years of development– Six Figure $– Etc.

– Low• Examples:

– Tactical– In scope of current market design– Budgeted or minimal $ impact– Etc.


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Afternoon session – what to expect

• Impact of each recommendation

• Impact on the objective: Accelerate the growth of demand response and load management among AMI customers leveraging this environment.

• Context:– 6.5 million meters– 68,000 MW grid

• Impact Options:– Significant– Incremental


21

Break for lunch

• Lunch 11:30 – 1pm

• We will start promptly at 1pm!


22

Review of Recommendations document

• Draft recommendations document – Jenina leads this

• Review approach for the idea of a column for impact on the goal – how do we accelerate the growth of demand response and load management for AMS customers


23

Break

– Break 3pm – 3:15pm


24

Roadmap

• Interim report– White paper and accompanying slide deck

• Overview slides –

• Audience – TAC, Board, PUC

• When – Q1

• Why – outline of recommendations, including those that need direction

– Input from today’s meeting

• Next steps / future activities


AMIT-DSWG Workshop ‘AMI’s Next Frontier: Demand Response Part 2’

Documents

Transcript of AMIT-DSWG Workshop ‘AMI’s Next Frontier: Demand Response Part 2’