Transcript NERC 101
Perspectives on Demand
Response
Rick Sergel
President & CEO, NERC
Demand Response Town Meeting
June 2, 2008
About NERC
The electric industry’s “self-regulatory
organization” for reliability
• Balances the interests of all stakeholders
• Represents industry consensus
• Independently acts in the best interest of reliability
• International “charter” lending government support and
oversight to SRO activities, ensuring that the best
interests of society-at-large are represented
Federally recognized “Electric Reliability Organization” in the
U.S.
Agreements in place with several Canadian provinces and
developing these agreements in others
About NERC: Mission
To ensure the reliability of the North American
bulk power system
Develop & enforce reliability standards
Assess current and future reliability
Analyze system events & recommend improved
practices
Encourage active participation by all stakeholders
Pursue mandatory standards in all areas of the
interconnection
Demand Response & Reliability
Demand Response & Interruptible Load play a
role in recovering from many system
disturbances
• Aids in restoration
• Allows time to bring additional resources online
• Relieves local congestion
% of Total Internal Demand
Demand Response Contributes
7.0%
7.0%
6.0%
6.0%
5.0%
5.0%
4.0%
4.0%
3.0%
3.0%
2.0%
2.0%
1.0%
1.0%
0.0%
0.0%
ERCOT
FRCC
MRO
NPCC
Total Capacity Demand Response
Contractually Interruptible (Curtailable)
Load as a Capacity Resource
RFC
SERC
SPP
WECC
Direct Control Load Management
Critical Peak-Pricing with Control
Peak Demand Rising
North American Supply & Demand
1150000
10% Rise
1100000
MW
1050000
1000000
20% Rise
950000
900000
850000
800000
2007
2008
2009
Commited Supply
2010
2011
2012
2013
2014
2015
Projected Total Internal Demand
2016
20% More Resources Needed
Generation
Transmission
Distribution
Demand Response
Efficiency
Resource Management
Thank you