Transcript Document 7561182

CEC Load Management Standards Workshop
Update on the CPUC’s Demand
Response and Advanced Metering
Proceedings
Bruce Kaneshiro
Energy Division
California Public Utilities Commission
March 3, 2008
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CEC Load Management Standards Workshop
Presentation Outline
• DR Policy, Action Items, Accomplishments
• Advanced Metering Projects
• Rate Cases and Dynamic Pricing
• Demand Response Programs
 Enabling Technologies
 Integration with CAISO’s MRTU
• Forecasting, Measurement and Evaluation Tools
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CEC Load Management Standards Workshop
Overall DR Policy and Action Items

DR continues to be a high priority energy resource for the state;
second only to Energy Efficiency in the Energy Action Plan’s
‘loading order’

The Energy Action Plan 2008 Update lists several key DR action
items:
• Adopt load management standards to establish a DR infrastructure
• Legislative authorization for time-varying pricing for residential
customers
• More progress on dynamic pricing rate design for all customers.
• Programs that utilize advanced metering, tariffs, and other automated
DR infrastructure.
• Modify retail programs to more fully participate in the CAISO’s
wholesale market structure.
• Develop DR load impact and cost-effectiveness protocols.
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CEC Load Management Standards Workshop
DR Accomplishments to Date
 Advanced metering deployment is underway for PG&E and
starting soon for SDG&E
 Default Critical Peak Pricing (CPP) approved for SDG&E’s
large C&I customers
 Peak Time Rebate (PTR) program approved for SDG&E’s
residential customers
 First phase of integrating DR resources with CAISO
operations in place for summer 2008
 Existing DR programs offer a broad range of options for
customers and equate to over 2,000 MWs of DR potential
capacity
 DR qualifies as a resource in meeting a load serving entity’s
Resource Adequacy Requirement.
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CEC Load Management Standards Workshop
PG&E’s AMI Project
 In 2006, the CPUC authorized PG&E’s AMI proposal (5.6
million electric meters and 4.5 million gas meters)
 Full deployment of PG&E’s AMI system technology and
network is scheduled to take 5 years (2006-2011).
 As of November 2007, PG&E has installed approximately
243,000 meters (gas and electric), mostly in Bakersfield and
Sacramento.
 In December 2007, PG&E filed a proposal to upgrade its AMI
system:
• Solid state meter technology
• Remote connect/disconnect switches
• Home Area Network Gateway devices
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CEC Load Management Standards Workshop
SDG&E’s and SCE’s AMI Project
 In 2007, the CPUC authorized SDG&E’s AMI proposal (1.4 m.
electric meters, 900,000 gas meters)
SDG&E currently finalizing contracts with meter and infrastructure
vendors – will seek Commission approval of the contracts this spring.
• Full deployment of SDG&E’s AMI is expected to be complete by 2011
(deployment expected to begin towards the end of 2008)

 SCE’s AMI proposal (5.3 million electric meters) is currently
under review
• CPUC decision on SCE’s AMI proposal is scheduled for August 2008
 Proposed AMI deployment schedule: 2009 to 2012
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CEC Load Management Standards Workshop
Rate Cases and Dynamic Pricing
 Dynamic Pricing is being developed by the CPUC in the
utilities’ individual rate design proceedings
 SDG&E’s General Rate Case (GRC). Following rates
approved:

Default Critical Peak Pricing (CPP) for >20 kW customers



Two opt-out windows provided
Bill protection for one year
Capacity Reservation Charge option
• Peak Time Rebate (PTR) program for residential customers




Customer receives an incentive ($ per kWh basis) for the amount of
reduction provided below the customer’s specific baseline during PTR
event hours.
Customer’s baseline: historical usage, adjusted for temperature
Two-tier incentive structure: higher incentive payment for customers who
install demand response technology
SCE’s GRC application will be filed in March 2008
 Default CPP and PTR anticipated in SCE’s filing
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CEC Load Management Standards Workshop
Rate Cases and Dynamic Pricing

PG&E’s Dynamic Pricing Proceeding:
• Objective: to create a year-by-year strategic work plan that will
direct PG&E to develop and integrate dynamic pricing rates
into PG&E’s rate design for all customers by 2011.
• The strategic work plan should answer three questions:
1) What types of dynamic pricing tariffs should PG&E offer to its
customers?
2) When should PG&E offer each type of dynamic pricing tariffs to
each customer class?
3) How should the dynamic pricing tariffs be designed and
integrated into PG&E’s overall rate design?
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CEC Load Management Standards Workshop
Rate Cases and Dynamic Pricing
 PG&E’s Dynamic Pricing Proceeding (con’t):
• Highlights from the Draft Timetable for PG&E Rate Proposals:
• Residential Rates:
 If AB1X remains in place: default PTR w/ flat rate or opt-in TOU/CPP in
2010
 Post-AB1X: default TOU-CPP with opt-out to TOU or flat rate (one year
after AB1X ends)
• Small/Medium C&I: default TOU-CPP in 2010 with opt-out to TOU. No flat rate
option
• Large C&I: Choice of TOU-CPP or RTP in 2010, with opt-out to TOU

In 2011, default RTP with opt-out to TOU or CPP
• Small/Medium Agriculture: default TOU in 2010 with opt-out to TOU or flat rate
• Large Agriculture: Choice of CPP or RTP in 2011, with opt-out to TOU
• For more details see Commissioner Chong’s Jan. 23 Ruling:
http://docs.cpuc.ca.gov/efile/RULINGS/77986.pdf
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CEC Load Management Standards Workshop
Demand Response Programs

Utility DR Programs are currently funded on a three-year budget
cycle (’06-’09)

Utility DR portfolio has different triggers (day-of, day-ahead,
emergency), incentive structures (capacity payments, energy
payments or both) and operators (utility or 3rd-party aggregator)

Enabling technologies starting to play a larger role in utility DR
portfolios:
 PG&E AC Cycling Program: customers may opt for the
installation of Programmable Communicating Thermostat
(PCT)
 Auto-DR Program – showing promising results

Future DR programs will need to be aligned with CAISO wholesale
market design
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CEC Load Management Standards Workshop
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Enrolled MWs in Utility Demand Response Programs
July 2003
July 2005
Dec. 2007
5% DR Goal
Emergency-triggered
Programs
1,485 MWs
1,600 MWs
1,800 MWs
N/A
Price-Responsive
Programs
0 MWs
800 MWs
4652-1,125
MWs
2,500 MWs
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[1] “Upper-bound” estimates except for the 465 MWs referenced by footnote [2].
[2] Represents actual MWs: estimate based on past performance or other methods (no formal method at this
time on how to estimate actual load impacts)
[3] 5% of an assumed 50,000 MWs of system peak demand – illustration purposes only
For more information on CPUC staff’s proposed DR goals for 2009 and beyond
see:http://docs.cpuc.ca.gov/efile/RULINGS/73410.pdf
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CEC Load Management Standards Workshop
Demand Response Programs
 Utilities’ DR portfolio proposals (’09-’11) are due in June 2008:
 CPUC guidance to the utilities for their portfolio included:


Emphasis on alignment with CAISO MRTU framework and
operation

Integration of DR and EE in customer outreach/marketing

Expansion of programs that provide enabling technology: AutoDR
for example

Find ways for customers to participate in both DR incentive
programs and dynamic pricing tariffs without ‘double-dipping’.

Encourages pilot programs that explore new ideas. For example,
DR following intermittent load (renewables)

Criteria by which IOU’s DR portfolio will be evaluated by the
CPUC
For more details see: http://docs.cpuc.ca.gov/efile/RULINGS/79323.pdf
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CEC Load Management Standards Workshop
Forecasting, Measurement and Evaluation Tools




CPUC 2007 DR Rulemaking: Load Impact (LI) Protocol and a CostEffectiveness (CE) Protocol
LI Protocol provides data for:

Long-term planning and Resource Adequacy purposes

Day-to-day operational and procurement needs (CAISO or utility)

Settlement purposes: accurately calculate the load drop to fairly
compensate DR participants
CPUC proposed decision on a LI protocol (for long-term planning
purposes) is expected in the near term.
Outputs from the LI protocol are inputs (benefits) for the CE
Protocol.

CPUC is considering a proposed settlement on a CE protocol in
its rulemaking.

CPUC anticipates that a CE protocol will be in place to evaluate
the utilities’ ’09-’11 DR portfolio proposals
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CEC Load Management Standards Workshop
Contact Information:
Bruce Kaneshiro
Supervisor, Demand Response Programs
California Public Utilities Commission
415.703.1187
[email protected]
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