Transcript Demand Response

Demand Response
Implementing Demand Response and
AMR / AMI Systems used by the Electric Cooperatives
of Arkansas
by
Forest Kessinger
Manager, Rates and Forecasting
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Three Requirements for the
Cooperatives’ Demand Response
Program to Succeed
1.
An economic incentive for members.
2.
An information system which provides
current load data to load managers.
3.
A means of either directly interrupting
loads or to confirm that loads have
elected to interrupt (voluntary
interruption).
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Requirement # 1
Economic Incentives
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Economic Incentives to the
Member Cooperatives
Under Arkansas Electric Cooperative Corporation’s (“AECC”)
wholesale rate design, the member cooperatives receive one of the
following incentives to interrupt load:
1. By avoiding a portion of AECC’s peak, a reduced billing demand
is charged to the member cooperative, thus reducing the
member cooperative’s wholesale power bill from AECC.
or
2. The member cooperative receives an interruptible credit for
allowing AECC to interrupt certain industrial retail load. This
credit is currently set at 52% of AECC’s demand charge.
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Economic Incentives to the Retail
Members
Given AECC’s rate design, the member cooperative then designs retail
rates which:
1.
Offers the retail member a credit on his monthly bill for being interruptible.
or
2.
Provides the retail member with a retail rate which mirrors AECC’s
demand charge, i.e. if the retail member is off during AECC’s peak the
retail member avoids the member cooperative’s coincident demand
charge.
The member cooperative’s coincident demand charge is often coupled
with a non-coincident demand charge to recover distribution costs.
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Advantages to all Members
1. A reduced cooperative investment in
peaking generation facilities. This
translates into lower long term costs.
2. A quick and efficient means of curtailing
load during system emergencies.
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Requirement # 2
Information to Predict Peaks
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Time-based Metering
In 1978, AECC installed wholesale metering
which recorded hourly kW demand by
wholesale point of delivery. This hourly data
could be processed into simultaneous hourly
coincident totals for each member
cooperative.
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Time-based Metering
- Continued Data from the time based meters of that
era were physically recovered at the end
of each month.
Because instantaneous load data was not
immediately available to load managers,
there were inherent inefficiencies in the
cooperatives’ demand response programs.
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Early SCADA
AECC’s first System Control and Data
Acquisition (“SCADA”) system dedicated to
providing instantaneous load data became
operational on 1 June 1981.
SCADA information was initially provided to all
member cooperatives. The data was eventually
provided to any retail commercial and industrial
loads willing to sign a confidentially statement.
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Value of the SCADA System
Load managers having actual
instantaneous knowledge of AECC’s
loads can do a more efficient job of
forecasting peaks and calling for
interruptions during periods when
peaks are eminent.
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Protecting Load Data
This confidentiality prevents load
information from being transferred to
wholesale marketing entities.
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Requirement # 3
A Means of Interrupting Loads
or to Confirm that Loads have
Elected to Interrupt
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Loads Controlled Directly by
the Member Cooperatives
Currently approximately 107 MW of
demand is directly controlled by the
member cooperatives using radio tone
load control switches.
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Voluntary Load Control by
Commercial and Industrial Retail
Members
As much as 80 MWs are voluntarily being shed
by C&I retail members.
While the metering technology will vary by
member cooperative, it is necessary for the
member cooperative to demand meter these
loads on an hourly basis to determine the retail
member’s demand at the time of AECC’s peak.
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Approximately 550 MW of Industrial
Load is Controlled Under AECC’s
IC Rider
A separate wholesale metering point is
established for each retail load served under the
IC Rider. Currently there are seven such loads
constituting approximately 550 MWs.
The requested interruption is confirmed using
AECC’s SCADA system.
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Member Cooperatives’
Automatic Meter Reading
(“AMR”) & Automated Metering
Infrastructure (“AMI”)
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AMR Advantages
Reduces estimated billing, enhances
accuracy, and provides a better and more
timely cash flow.
Reduces field staff.
Reduces customer premises problems.
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TWACS, Turtle, and Cannon all use
Power Line Carrier Technology
Data or electrical signals are transformed
into radio frequency or modified wave form
data signals which are superimposed onto
AC power lines by the sender and
retrieved from the AC power lines by the
receiver.
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The Advantage of
AMR Power Line Carrier
Technology
Best AMR technology for low
customer density.
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AMR Power Line Carrier
Disadvantages
Power line carriers are susceptible to
electrical noise.
Filtering this noise is expensive.
Requires significant capital investment.
A more complex technology.
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Member Cooperatives’
AMR & AMI Systems
Woodruff was the first electric cooperative to
install an AMR system in 1997.
Currently eleven of Arkansas’ seventeen electric
cooperatives are using some form of Automatic
Meter Reading (“AMR”) system.
Using these systems, several Automated
Metering Infrastructure (“AMI”) functions are also
utilized.
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AMR Systems Currently in Place by Electric Cooperative
Distribution Control
System’s Inc.
“TWACS”
Two Way Automated
Communications Systems
Hunt Technologies
Turtle System
First
Woodruff
Ozarks
Arkansas Valley
Cannon Power Line
Communications
System
Craighead
Ouachita
C&L
Clay
North Arkansas
South Central
Mississippi
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States with the Highest Percentage
of Advanced Metering Penetration
Pennsylvania
Wisconsin
Connecticut
Kansas
Idaho
Maine
Missouri
Arkansas
Oklahoma
Nebraska
52.5 %
40.2
21.4
20.0
16.2
14.3
13.4
12.9
7.2
6.8
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Cooperatives are using AMR / AMI
for Additional Functions
1. To confirm that radio controlled load
switches are operating (pinging).
2. For reliability – to better locate outages
determine the size of an outage, and to
confirm repairs.
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Cooperatives are using AMR / AMI for
Additional Functions
- Continued 3. To assist with high bill complaints and
energy efficiency by using hourly data to
track a retail member’s usage.
4. To perform remote reads so that power is
never shut off when one member moves
out and another member moves in.
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Cooperatives are using AMR / AMI for
Additional Functions
- Continued 5.
To remotely shut off a service.
6.
To detect theft of services.
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Future AMI Possibilities
The cooperatives continue to use reliable
and economical radio control switches for
demand response but AMR systems are
ultimately transitioning to AMI systems
with demand response capabilities.
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Future AMI Possibilities
- Continued Currently, at least one member
cooperative is evaluating the possibility of
installing an AMR / AMI system with
demand response capabilities for water
heating and space conditioning loads.
The AMR / AMI system might be in place
as early as 2008.
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Questions ?
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