Transcript CUSTOM ACCOUNTS MARKETING PLAN PRESENTATION …

Schedule Experimental
Energy Reduction
(EER)
updated 2005
Note: This program is available to qualified participants
within the EntergyArkansas, Inc., Entergy Gulf States (LA) Inc.,
and Entergy Louisiana, Inc. jurisdictions ONLY
Page 1
The Experimental Energy Reduction Program (EER):
What Is The EER Program, and Why Is Entergy Pursuing This?
• The EER Program is designed to enable the market mechanics necessary to permit a broader range of
customers to participate in a curtailment program.
•The EER Program provides an economic incentive to qualified customers to release Entergy from its obligation
to supply during periods of highly volatile market prices, or when supply is severely constrained (< 15 days).
•EER offers another layer of protection for Entergy’s customers against the risks of exposure to higher fuel costs.
$2,000
$1,800
Day Ahead
Energy ($/MWH)
$1,600
$1,400
This chart illustrates the escalation in price for
“day ahead” on peak purchased power (6:00 AM –
10:00 PM) during the summer of 1999.
$1,200
$1,000
$800
$600
$400
85
81
77
73
69
65
61
57
53
49
45
41
37
33
29
25
21
17
13
9
5
$0
1
$200
Highest to Lowest Summer Weekday
Note: This program is available to qualified participants within the
Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc.,
and Entergy Louisiana, Inc. jurisdictions ONLY
Page 2
The Experimental Energy Reduction Program (EER):
Program Features
• The program hours are the 4 hour "super peak” in summer and winter
• 2PM - 6 PM CDT May – September
•5 PM – 9 PM prevailing time January – April & October – December
• The Customer must participate all 4 hours and at the same pledged demand
during each hour (minimum pledge is 150 kW).
• Entergy’s posted price will be the same for all 4 hours.
• Market Replacement Charges (penalties at a rate of 2 X posted prices) apply
for each kW that is 90% below pledged demand, measured during each
hourly interval.
• Entergy provides the opportunity for a waiver from Market Replacement Charges,
through a “Relief From Operational Failure” provision (2 waivers per program period).
The waiver applies to the entire four hour period, and if exercised the customer also
forgoes the credit.
• There are Maximum Energy Reduction Payments of 130% of pledged
demand. The customer receives no further credit after surpassing 130% of
Note: measured
This programduring
is available
to qualified
their pledged energy reduction, also
each
hourlyparticipants
interval.
within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc.,
and Entergy Louisiana, Inc. jurisdictions ONLY
Page 3
The Experimental Energy Reduction Program (EER):
How the EER Program Operates
• Entergy implements EER by posting energy prices on a web page by 8:00 AM,
day-ahead of the proposed curtailment. The customer is notified to review the offer
via email, phone call, or fax.
• The customer elects participation by pledging their demand reduction for all
four hours using the web interface, and must make the commitment by
11:00 AM day-ahead.
• Entergy provides confirmation no later than 10:00 AM, day-of.
• The energy reduction is measured by comparing the previous normal
business day interval metering data within the program hours with the day-of
interval metering data for those same hours (2:00 PM - 6:00 PM or 5:00 PM – 9:00 PM).
• Entergy will calculate the energy reduction credit / debit and will post the net
result on the customer’s bill, usually within the next available billing cycle.
Note: This program is available to qualified participants
within the Entergy Arkansas, Inc., Entergy Gulf States (LA)
Inc., and Entergy Louisiana, Inc. jurisdictions ONLY
Page 4
The Experimental Energy Reduction Program (EER):
Example - Market Replacement Charges and Maximum Payment Provisions
EER Program Example Illustration
Assumption: Customer Pledges 500 kW Reduction
Variables
Pledged or
Minimum Hourly
EMO posted price Curtailable Demand Energy Reduction
Maximum Hourly
Energy Reduction
$0.50
500
90%
130%
hour 1
hour 2
hour 3
hour 4
1200
850
350
450
650
1300
750
550
450
650
1250
750
500
450
650
1275
550
725
450
650
Results:
Prior Normal Business Day hourly kW
Day Of hourly kW
Net Hourly Energy Reduction
Minimum Energy Reduction (90% of Curtailable Demand)
Maximum Energy Payment (130% of Curtailable Demand)
Calculation:
*hour 1
hour 2
hour 3
**hour 4
Credit Calculation
Credit Amounts
Penalty Calculations
350 kW X $.50
550 kW X $.50
500 kW X $.50
650 kW X $.50
$175.00
$275.00
$250.00
$325.00
100 kW X (2 X $.50)
none
none
no credit > 130%
Market Replacement
Charge
Net
Results
$100.00
$0
$0
$0
$75.00
$275.00
$250.00
$325.00
Total Credit
$925.00
* Customer fails to meet the minimum hourly energy reduction of 450 kW (90% of Pledge) by 100 kW. Incurs a penalty.
** Customer exceeds the maximum hourly energy payment (130% of Pledge or 650 kW) by 75 kW, receives credit only for maximum allowable.
Note: This program is available to qualified participants
within the Entergy Arkansas, Inc., Entergy Gulf States (LA)
Inc., and Entergy Louisiana, Inc. jurisdictions ONLY
Page 5
The Experimental Energy Reduction Program (EER):
Example - Market Replacement Charges and Maximum Payment Provisions
Example: Customer Pledges 500 kW Hourly Energy Reduction
800
Customer Incurs penalty
based on 100 kW shortfall
700
Customer’s maximum payment
is 130% of pledged demand,
forgoes 75 kW
Energy kW
600
500
Net Hourly Energy Reduction
400
300
Minimum Energy Reduction
(90% of Curtailable Demand)
200
Maximum Energy Payment
(130% of Curtailable
Demand)
100
0
Program Hour
1
2
3
4
Note: This program is available to qualified participants
within the Entergy Arkansas, Inc., Entergy Gulf States (LA)
Inc., and Entergy Louisiana, Inc. jurisdictions ONLY
Page 6
The Experimental Energy Reduction Program (EER):
Minimum Criteria To Participate
•
Customers wishing to participate must be willing to execute an Enabling
Agreement with Entergy.
•
Customers must have interval metering at their site, or be willing to pay to
have interval metering installed.
•
Customers will be asked to participate in a “fire drill” to determine the level
of operational flexibility as needed to reduce electric loads by a minimum
of 150 kW during all participating hours prior to an actual curtailment.
•
Participating accounts must be firm (i.e., interruptible load is not eligible to
participate in EER)
•
The customer must have internet access, and be willing to pay any and all
associated fees for this service.
•
If back-up generation is to be used, the customer must comply with
Entergy distribution standards for wiring configuration.
Note: This program is available to qualified participants
within the Entergy Arkansas, Inc., Entergy Gulf States (LA)
Inc., and Entergy Louisiana, Inc. jurisdictions ONLY
Page 7