Transcript Slide 1

Smart Grid/Smart Home/Smart Customer –
will it create a significant resource strategy?
Presented by:
Presented to:
Harvey Michaels
Restructuring Roundtable
Strategic Consultant
Nexus Energy Software
Wellesley, MA 02481
781-694-3301
Boston, MA
February 29, 2008
A key efficiency/DR Option:
Providing customers with advanced diagnostics and feedback
Gridpoint customer portal
Smart Meter Viewpoints today

Vision:
“Enable responsive, smart energy environments that are
gracefully integrated with people.” *

Economics:
–
Costs $150-$200 per home for smart meters
–
60-100% covered by operating benefits: remote/frequent reads,
monitoring, control.
–
$25-$50 annual resource benefit from hourly pricing.
–
Potential 2x to 4x benefits with analysis, home controls.
–
Typically exceeds all renewable potential.
*6/26/2007
- meeting on Industry standard HAN development
- PG&E, SCE, and SDG&E – presented to CPUC and CEC
Adapted from Texas PUC Smart meter Ruling - May 2007
Some Energy Efficiency/AMI Planning Issues

Do customers really pay attention to diagnostics?

Do we want a Smart Grid, or Smarter Customers?

How will Smart meter and home network technology
make it easier to be a smart consumer?

How large an impact can we expect, and what
information supports might maximize that?
Aclara TWACS solution
Bell Canada EE in a box solution
The Dashboard Concept– proving to be a low-cost way to
improve the cost-responsiveness of energy consumer behavior.
How much do I owe?
How do I view and pay
my bill?
How does my bill
compare to last year?
How does my home
compare?
Why is my bill different than
before?
What do my appliances cost
to run?
How can I control my costs?
When do I use energy? Am I
on the right rate?
What programs does the
utility have for me?
At some utilities, over 30% of all customers are regularly visiting
Utility-provided Web customer dashboards, today.
Strong evidence that Diagnostic support can work…

The methods for creating diagnostic bill analyses are well
understood and tested.

Multiple studies show conclusively that customers want this
information and find it useful.

Incremental customer response remains to be proven,
but meta indicators are a minimum 3-5% direct energy impact.

Reductions in billing and customer service costs offset most or
all of the marginal costs of diagnostic support on the bill.
BUT –
there is much to be learned about how to be most effective.
The Customer Side of AMI: 2 strategies
1: Smarter Customer Strategy

Price-based demand response, using timedifferentiated rates, which requires Fixed Network AMI.

Vision: Customers view data, make choices, in time
automatic response by customers thermostat and
other devices.
2: Smart Grid Strategy

Push-button Control-based demand response – The
Utility monitors and controls end use equipment.

Vision:
–
Generation, transmission, distribution, and end use
equipment as part of a single system.
–
Interval meter reads not essential.
Smart Grid – Private Network Approach – utility
provides meter-to-devices communication
MDM/Head-end
Utility-side
Utility-network
devices in home
Customer
Do we want “Smart Grid” Control?

End use equipment is visible and controllable by utility–

“Smart Grid” is more dispatchable (perhaps) and
therefore can replace spinning reserve
….but some find it kind of scary.
Resistance is Futile
Prepare to be Assimilated
Smarter Customer: AMI/Price option

Theoretically, the same result occurs with price as a
boundary providing some privacy.

Time-based rates are more fair, and some would argue
inevitable.

But, will customers respond?
Or are Time-based rates just too complicated?

Will customers, or their devices, respond?
As the results of each new pricing pilot become available, a
common story is developing:
Customers respond to dynamic price signals
Percent Reduction In
Peak-Period Energy Use
Peak-Period Reduction on Critical Peak Days
14
13.1
11
12
11.9
12
Anaheim Peak
Time Rebate
PSE&G
4.6:1
6:1
10
8
6
4
2
0
CA SPP
Price Ratio:
4.1:1
AmerenUE
4:1
Challenge – How to achieve the really big impacts without buying
the customer displays and controls…
Critical Peak Impacts By Rate Treatment
Average Critical Peak Day – Year 1
47.4%
Peak Load Reduction
50%
34.5%
40%
30%
20%
12.5%
10%
Hottest Critical
Peak Day *
4.1%
TOU
Critical
Peak Fixed
Critical
Peak
Variable
With
Automated
Controls
Critical
Peak
Variable
With
Automated
Controls
0%
Time of Use
TOU
CPP-F
CPP-V
CPP-V
Source: Statewide Pricing Pilot Summer 2003 Impact Analysis, Charles Rivers Associates, Table 1-3, 1-4, August 9, 2004.
2004-2005 CA Internet Dashboard Results

46% stated that they took
actions to reduce peak usage.

Statistical reduction in usage
during the peak period in both
years.
0.1
Load Impact (kW)
0.05
Weekday
0
Event day
Weekend day
Peak Period Start
-0.05
Peak Period End
-0.1
-0.15
0
2
4
6
8
10
12
Time
14
16
18
20
22
24
Next Step – Web Workspace connects to network-enabled
thermostats, water heater, pool pump, on request
Home/Public IP Network Approaches – hourly meters sufficient –
all home network equipment owned by the customer.
Utility’s
Web Workspace
MDM
CRM
Utility-side
Customer-side
Home/Public IP Network Approaches – hourly meters sufficient –
all home network equipment owned by the customer.
Utility’s
Web Workspace
MDM
CRM
Utility-side
Device
Workspace
Customer-side
Applications for the Smart Consumer

Utility, thermostat, appliance, Google, etc.
make app.

View on home PC, work PC, TV, cell phone (at
least until next year).
Application ideas:

Make my AC, water heater, pool pump,
refrigerator use pattern smarter.

Find out what anything costs to run.

Choose the best rate for me.

Choose a theme – understand the
consequences.

Sell a DR option.
What I think *

We urgently need meter systems to be hourly cash registers
–

We can anticipate that the customer’s display of choice will
connect with the Internet.
–

it costs little beyond operating benefits ($2-$3meter/year)
and only time-based pricing makes economic sense
($25-$100 resource benefit per year).
Web systems are low cost, flexible, easily upgraded, promoting OPEN,
Non-obsolescent customer connectivity.
We can count on the market to develop and promote Internetaddressable displays, controls, and home networks.
–
However utility time-based rates, Web-based customer workspaces,
and communicating meters will encourage the market to move faster.