Transcript Regional Demand Resource Policy Development

Regional Demand Resource
Policy Development:
MWDRI and MADRI
Demand Response Town Meeting
June 3, 2008
Richard Sedano
The Regulatory Assistance Project
50 State Street, Suite 3
Montpelier, Vermont USA 05602
Tel: 802.223.8199
Fax: 802.223.8172
27 Penny Lane
Cedar Crest, New Mexico USA 87008
Tel: 505.286.4486
Fax: 773.347.1512
Website: http://www.raponline.org
110B Water Street
Hallowell, Maine USA 04347
Tel: 207.623.8393
Fax: 207.623.8369
Introduction
Regulatory Assistance Project
RAP is a non-profit organization, formed in 1992, that
provides workshops and education assistance to state
government officials on electric utility regulation. RAP is
funded by the Energy Foundation, US EPA & US DOE.
Richard Sedano was Commissioner of the Vermont
Department of Public Service, 1991-2001
The
Regulatory Assistance Project
 RAP Mission:
RAP is committed to fostering regulatory
policies for the electric industry that encourage
economic efficiency, protect environmental
quality, assure system reliability, and allocate
system benefits fairly to all customers.
Midwest Demand Resources
Initiative -- MWDRI
The “retail demand response committee
within Organization of MISO States (OMS)
– Bob Lieberman (IL) is lead commissioner
Complements MISO DR working group
– DR program attribute education for all
Bring demand response beyond direct load
control
Connect demand side to resource adequacy
MWDRI Activities
Established Principles for demand response
http://misostates.org/DRPrinciplesApproved8November20
07.pdf
Coordinating with OMS Resource
Adequacy WG
Experimental Economics
Dynamic Pricing
– States want models to consider
More education
Experimental Economics
MISO has asked George Mason University
to develop a wholesale market model
– Model allows “players” to make strategic
investments in resources in an accelerated way
– The experiment is getting motivated individuals
to demonstrate how a market works, rather than
relying solely on theory
– Reveals insights, unexpected outcomes
– Expect it will show value of demand side to
OMS members and others
MWDRI
Experimental Economics opportunities will
emerge later in the year
Next MWDRI meeting will be scheduled
post-NARUC
Smart Grid workshop for OMS in
September
Distribution list maintained by OMS
(contact [email protected])
Mid-Atlantic Distributed
Resources Initiative - MADRI
MADRI focuses on five states, DC, MD, DE, PA, NJ
– Allen Freifeld (MD) is lead commissioner
– Other states informed and can get involved.
– Focus on PJM-state interface
 Focus areas:
– regulation (throughput incentive solutions, dynamic
pricing),
– advanced meter infrastructure,
– small gen interconnection,
– environmental issues, and
– business models to support DR
MADRI
 MADRI website is www.energetics.com/madri
 MADRI website has an updated AMI toolbox.
More than 40 new documents have been added.
 MADRI states have collaborated on a filing at
FERC. The states are concerned that FERC should
reconsider its DR incentive policy.
– FERC allowed a system of incentives to expire at the
end of 2007.The MADRI states are concerned about
resource adequacy
MADRI agenda
 Using PJM demand resources roadmap
– MADRI's focus is on what states can do to implement
or support elements of the DR roadmap that are
valuable.
– One PJM level issue that MADRI expects to spend
more time on later this year is the proposal to include
energy efficiency in the PJM supply market.
– MADRI is expecting to stage a webinar for the states
on decoupling and incentives for energy efficiency,
using new material that RAP has developed.
MADRI agenda
 MADRI is also expecting do more work on
dynamic pricing, and
 To resume discussions with environmental
regulators on the prospect of utilizing back up
generators in the PJM emergency operation plan in
order to avoid rotating blackouts and the potential
for using these back up machines for longer
periods while the system recovers.
A Regional DR Goal?
MADRI states had been considering
endorsing a regional goal for demand
response -- it seems that the success and the
urgency of these issues may have overtaken
the states, and it remains to be seen if the
MADRI states get back to this idea.
MADRI -- near future
The next MADRI meeting will be in
Trenton NJ on Friday, June 27. Dynamic
pricing will be discussed.
– More information about the meeting will be
sent to the e-mail list when it is available.
Anyone not on the distribution list can send
a message to Rich Sedano
([email protected]) to get on.
Thanks for your attention
[email protected]
http://www.raponline.org