Transcript NARUC Joint Meeting Committee on Energy Resources and the Environment Committee on Electricity California Statewide Pricing Pilot ------------------Lessons Learned Roger Levy Demand Response Research Center.

NARUC Joint Meeting
Committee on Energy Resources and the Environment
Committee on Electricity
California Statewide Pricing Pilot
------------------Lessons Learned
Roger Levy
Demand Response Research Center
Demand Response – the Vision
1
No more rotating outages – EVER !
Efficiency and demand response fully integrated
under a unified default tariff / incentive structure.
2
Demand response is a condition of service.
All customers, all load participates.
 Major appliances come “DR Ready” from the factory.
3
4
 All buildings are “DR Enabled” .
Full automated system integration between the ISO,
utilities and customers.
August 2, 2006
California
Statewide Pricing Pilot
August 2, 2006
State Demand Response Objectives
 Integrate energy efficiency with demand response
 Economic Response – Let the customer decide.
 Reliability Response – Provide the utility with
control.
 All customers – not just a select few.
August 2, 2006
Summary Conclusions
System
Impacts
Residential CPP rates can, within five years of
deployment reduce California’s peak load by
1,500 to over 3,000 MW.
Conservation
and Peak Load
Impacts
Dynamic rates encourage greater conservation
and peak demand impacts than conventional
inverted tier or time-of-use rates.
Customer
Acceptance
Residential and small to medium commercial
and industrial customers understand and
overwhelmingly prefer dynamic rates to
existing inverted tier rates.
August 2, 2006
Residential Load Impacts
Rate and
Technology
Critical Peak Impacts By Rate Treatment
Average Critical Peak Day – Year 1
47.4%
50%
Peak Load Reduction
Hottest Critical
Peak Day *
40%
34.5%
30%
20%
12.5%
10%
4.1%
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, August 9, 2004, Table 1-3, 1-4,.
August 2, 2006
Rate and
Technology
Residential Load Impacts
Critical Peak Impacts By Rate Treatment
Critical Weekday – Inner Summer Year 2
Peak Load Reduction
50%
40%
27.2%
30%
Critical
Peak Fixed
Critical
Peak
Variable
With
Automated
Controls
CPP-F
CPP-V
20%
13.1%
10%
0.6%
0%
Time of Use
TOU
Source: Impact Evaluation of the California Statewide Pricing Pilot, CRA, March 16, 2005, Table 1-1, 4-3.
August 2, 2006
Residential SPP Impacts
Consistency
Hottest Critical
Peak Day *
Average Critical Peak Day
47.4%
Peak Load Reduction
50%
41.0%
40%
30%
Three Tier
TOU with
Dispatched
CPP
20%
35.0%
Three Tier
TOU with
Dispatched
CPP
34.8%
34.5%
Three Tier
TOU with
Dispatched
CPP
Two Tier
TOU with
Dispatched
CPP
Two Tier
TOU with
Dispatched
CPP
10%
0%
AEP Pilot 4
1991
Gulf Power Pilot 3 Midwest Pilot
1992-1993
2004
2
California Pilot 1
2003
California Pilot 1
2003
Source:
1. Statewide Pricing Pilot Summer 2003 Impact Analysis, Charles River Associates, Table 1-3, 1-4, August 9, 2004. Hottest day impacts on page 105.
2. Private communication, residential pilot study, May 2005.
3. Results of the Pilot Residential Advanced Energy Management System, Gulf Power, November 1994.
4. Levy Associates case study report, July 1994.
August 2, 2006
Incentives
Residential SPP Impacts
Residential Response with Automation:
Participation Incentive vs. Critical Peak Rate
5.0
4.5
4.0
CPP Event
Control Group
Participation Incentive
Critical Peak Rate
3.5
kW
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Noon
2:30
7:30
Hot Day, August 15, 2003, Average Peak Temperature 88.5 0
August 2, 2006
Midnight
Demographics
Residential SPP Impacts
Percent Reduction in Peak Period Usage (CPP-F) Year 1
20
18
19.2%
17.2%
15.1%
13.5%
14
12.8%
12.1%
12
12.1%
12.5%
YES
NO
NO
YES
Multi-family
2
Single Family
4
< $40,000
6
50% Average Use
8
12.3%
9.8%
9.79%
> $100,000
10
200% Average Use
Percent Reduction
16
0
High vs.
Low User
Income
Single vs.
Multi-Family
Central AC
Ownership
Pool
Ownership
State-wide
Average
Source: Statewide Pricing Pilot, Summer 2003 Impact Analysis, CRA, August 9, 2004, Table 5-9, p.90
August 2, 2006
Demographics
Residential SPP Impacts
Percent Reduction in Peak Period Usage (CPP-F) Year 2
20
18
17.4%
16.2%
14.0%
14
13.0%
12.2%
12
8.1%
NO
YES
YES
NO
Multi-family
Single Family
4
< $40,000
6
50% Average Use
8
13.1%
11.8%
10.9%
> $100,000
10
15.8%
14.7%
200% Average Use
Percent Reduction
16
2
0
High vs.
Low User
Income
Single vs.
Multi-Family
Central AC
Ownership
Pool
Ownership
State-wide
Average
Source: Statewide Pricing Pilot, Summer 2003 Impact Analysis, CRA, August 9, 2004, Table 5-9, p.90
August 2, 2006
Rate and
Technology
Small C/I Load Impacts
Critical Peak Impacts
Enabling Technology Impacts
14
13.2%
10
9.6%
8
5.5%
6
4
2
0.8%
4.9%
With Technology
6.6%
No Technology
With Technology
Percent Reduction
12
0
< 20 kW
> 20 kW
< 20 kW
August 2, 2006
> 20 kW
SPP – Customer Rate Preferences
Original Inverted
Tier Rate
CPP-F
23%
TOU
19%
60
CPP-V
TOU
40
80%
77%
81%
20
0
20
30%
40
60
80
70%
71%
29%
August 2, 2006
Residential
20%
Commercial
CPP-V
Pilot Rates
Contact Information
Demand Response Research Center
(DRRC)
Mary Ann Piette, Director
Phone: 510 486-6286
email: [email protected]
Roger Levy
Program Development and Outreach
Phone: 916-487-0227
email: [email protected]
August 2, 2006
Demand Response Defined.
1. Demand Response applies rate designs,
incentives and technology to induce changes
in customer demand. 1
2. Demand Response is the action taken to
reduce load in response to:2
a) Contingencies that threaten the supplydemand balance and/or
b) Market conditions that raise supply costs.
1.
CPUC definition, Demand Response Settlement, Draft Decision 03-06-032, March 2006
2.
Demand Response Research Center, presentation, December 2005.
August 2, 2006
Residential SPP Rates
TOU Tariff- (high)
Rate Design
CPP Tariff- (high)
80
$0.7336
70
Critical Peak
Cents per kWh
60
Summer Peak
Summer Off-Peak
50
Existing Rates
Avg. Summer Price
13.36 ¢/kWh
40
30
$0.2596
$0.2336
20
$0.1026
10
1,500 hrs/yr
7,260 hrs/yr
Maximum
75 hrs/yr
$0.0886
1,425 hrs/yr
7,260 hrs/yr
0
2:00-7:00pm
Weekdays
Other Weekday &
Weekend hours
Dispatched
2:00-7:00pm
August 2, 2006
2:00-7:00pm Other Weekday &
Weekdays
Weekend hours
SPP Bill Impacts
Average Bill Impacts (summer / winter 2003)
Commercial /
Industrial
Residential
CPPV
Bill
Savings
Bill
Increases
CPPF
TOU
Info Only
CPPV
TOU
Participants (%)
71.1%
73.7%
70.0%
79.0%
80.3%
58.2%
Average Monthly
Savings (%)
5.1%
5.5%
4.5%
5.4%
12.2%
9.6%
Average Monthly
Savings ($)
$53
$35
$29
$19
$1,521
$869
Participants (%)
28.9%
26.3%
30.0%
21.0%
19.7%
41.8%
Average Monthly
Increase (%)
4.0%
6.2%
3.0%
10.0%
5.0%
10.0%
Average Monthly
Increase ($)
$39
$44
$30
$9
$224
$600
Source: Statewide Pricing Pilot, Shadow Bill Results, WG3 report, June 9, 2004.
August 2, 2006