Operationalizing a Customer-Driven DSM Portfolio at Entergy€¦ · Operationalizing a...

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www.peakload.org Operationalizing a Customer-Driven DSM Portfolio at Entergy Lessons from the Grid Edge

Transcript of Operationalizing a Customer-Driven DSM Portfolio at Entergy€¦ · Operationalizing a...

Page 1: Operationalizing a Customer-Driven DSM Portfolio at Entergy€¦ · Operationalizing a Customer-Driven DSM Portfolio at Entergy Lessons from the Grid Edge. Overview of Entergy Corporation

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Operationalizing a Customer-Driven DSM Portfolio at Entergy

Lessons from the Grid Edge

Page 2: Operationalizing a Customer-Driven DSM Portfolio at Entergy€¦ · Operationalizing a Customer-Driven DSM Portfolio at Entergy Lessons from the Grid Edge. Overview of Entergy Corporation

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Overview of Entergy Corporation

• 30,000 MW electric generating capacity

• 2.9 million utility customers

• More than $10 billion annual revenues

• 13,000+ employees

Retail-Regulated Utilities

• 5 public utilities

• 4 contiguous states – AR, LA, MS, and TX

• 15,700 miles of high-voltage transmission

• 100,000+ miles of distribution

• ~200,000 natural gas customers in LA

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The Traditional Retail-Regulated Utility

(Prudent) CapEx Investment in:

…delivers a regulatorily-approved construct in which Utilities charge “just and reasonable rates” and provide system reliability (SAIDI, SAIFI, CAIFI, etc.), safety, and power quality

OpEx investment in cost-effectivecustomer programs and projects that deliver “win-win” customer and system benefits

Traditional Retail-Regulated Utility

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A Framework for the Evaluation of Customer-Driven Energy Resources

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Potential Business Model ImplicationsFurther emphasizing the customer domain introduces a number of changes to the traditional DSM business model, including:

• Uncapped enrollment, which drives: • Capitalization of customer driven OpEx through new recovery

models• Contemporaneous recovery in forward looking ratemaking• True-up to FRP (formula rate plan) or rider process

• Push towards Portfolio (vs Program) level cost effectiveness

• A renewed emphasis on Customer Experience (vs. Contract Management), which drives:

• A push to develop internal capabilities (CapEx) for program management

• Focus on Transactional CSAT/NPS; customer satisfaction drives Resource Availability

• Potential for below-the-line revenue development for value-added services, in compliance with Affiliate rules.

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Paradigm Shift in Resource Planning & Operations

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An Introduction to Customer Lifecycle Planning

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Production Adoption: From Potential to Adoption

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Creating Adoption Curves from Propensity Models

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Geographic Adoption

• Once we can identify customers as likely adopters, we can:

• Map to Zip+4• Identify customers on particular feeders using each

adoption scenario

• This information can be helpful to understand locational benefits plus understand any potential clustering that may occur

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Engineering for the Customer Lifecycle

Engagement Enrollment Operation Un-enrollment

Billing Dispatch

Customer Lifecycle

Support

Know where new products will be and plan

for it.

Sign customers up for new programs

How do customer enrollment rates effect

current load shape?

How are these products utilized and how is customer billed? How do we provide continual

support for customer?• Interconnection studies• DER and Interconnection

design• Field/Design Engineering

• System impact studies• Hosting capacity studies• Distribution Planning

• Field Engineering• DOC/TOC• AMI

EM&V

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Customer Product Engineering Workflows

Foundational Process Design &

Standardization

Interconnection Process

Technical Specifications and Standards:

• Product level requirements (DR, Inverter, Battery, PV, BuG, EV, etc.)

• Design Templates & Standards:• Physical layout• Electrical Schematic• Settings• List of Materials

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CPE Workflows

Bottom-up Forecasting and

Scenario Analysis

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New Tools & Analytics for CPE• New technologies means new tools and methods of analysis• New tools are being developed that can capture changing load shapes due to customer offerings and forecasted adoption rates, hosting capacity of

distribution feeders for new DER’s, and allow customers a user friendly application process.• These new tools and analysis can affect how the Entergy Operating Companies plan and design their systems.

DER Cost-Effectiveness / Propensity / Geospatial Analysis

• Engineering analysis including load flow, short circuit, and protection

• Identify grid needs• Understand Grid Impacts of DER

Penetration/Adoption• Risk analysis• Coordinate with T&D Planning

Distribution Planning Tool: Synergi

• Based on customer adoption/propensity research • Historical and real-time data• Build load profiles, create forecast, and develop

planning scenarios • Estimate cost-effectiveness / value of DER (based on

type and location)

Customer DER Valuation Tool:LoadSEER

• Generate DER Hosting Capacity• Prioritize grid and DER activities• Perform locational net benefit analysis• Develop traditional or alternative

solutions

Together

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(Illustrative) Comprehensive DSM Program

• Dispatchable EE programs aligned with DR availability

“Peak Event Notification” = voluntary behavioral

DR program offered

through CEP.

• Backup Generation• DER Product Portfolio

• NWA – targeted Aggregator solutions

• Mass Market Residential and SMB• Mass Market C&I

Centralized Dispatch: “Co-optimized against Utility and Customer use cases.”

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Lessons & Takeaways- Standardize! ….but recognize the unique conditions and commitments

in each Regulatory jurisdiction

- Customer Experience comes first, whether internally or externally managed.

- This is an enterprise change management exercise. Increasing focus on operational value and customer satisfaction touches virtually every business unit within a vertically integrated utility:

- Accounting- Billing- Customer Service- IT- Market Operations- Planning- Regulatory

- This is a marathon. Plan accordingly.

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Thank You!

WE ARE THE CUBE

Dean ChuangSolutions Manager, DR & HA

[email protected]://www.linkedin.com/in/deanchuang

Matt CroucherDirector, Enterprise Analytics

[email protected]://www.linkedin.com/in/matthew-croucher-06850b6b

John BoudreauxDER Engineering

[email protected]://www.linkedin.com/in/john-boudreaux-11252694