DR 101PrezJul2011 FINAL by b5TyfV

VIEWS: 1 PAGES: 10

									 An Overview of
Demand Response
  in California

    July 2011
   What is Demand Response (DR)?

 DR is set of action taken to reduce electric loads when:

     Contingencies, such as emergencies or congestion, occur that threaten the
      supply-demand balance
                                       -OR-

     Market Conditions occur that raise electric supply costs


 The goals are to improve electric grid reliability and lower use of electricity
  during peak demand

 DR is high priority electricity – second only to Energy Efficiency in the
  Energy Action Plan’s “loading order”




                                                                              2
     Evolution of Demand Response
 Until 2005, most of the demand response (DR) was provided by Large
  Industrial customers in response to a California Independent System
  Operator (CAISO) emergency
 After the 2006 summer heat wave, the CPUC expanded the DR customer
  base to provide price-responsive DR before a CAISO emergency:
    Utilities offered a wide variety of DR programs such as Air Conditioning (AC)
     cycling, programs providing energy payments only, and programs that provide
     both capacity and energy payments
 Beginning in 2007, several established third-party aggregators were allowed
  to participate directly in the utility programs and through bi-lateral DR
  contracts with the utilities
 Beginning in 2009, the CAISO started considering DR as a generation
  resource similar to a Combustion Turbine (CT) and developed specific
  products in the wholesale markets suitable for DR which are still waiting
  approval from FERC
 As early as 2012, a limited roll-out for HAN devices are expected to enable
  additional DR options for residential customers
                                                                              3
   Demand Response Rulemaking

CPUC instituted four phases for R.07-01-041:
   Phase 1: Load Impact Protocols (D.08-04-
    050)
   Phase 2: Cost-Effectiveness Protocols (D.10-
    12-024)
   Phase 3: Transition of Emergency-triggered
    programs to Price-responsive programs
    (Settlement: D.10-06-034)
   Phase 4: Direct participation of DR in the
    CAISO’s wholesale markets (Open)
                                            4
         Examples of DR Triggers
   CAISO or IOU forecasts indicate that the CAISO system
    load will meet or exceed certain MW threshold (e.g., 43,000
    MW for PG&E)
   CAISO issues - or IOU expects the CAISO to issue - a
    Stage 2 or Stage 3 emergency or local transmission
    emergency
   IOU expects to require the dispatch generation facilities with
    heat rates of 15,000 BTU/kWh or greater for the day-ahead
    or hour-ahead market
   An actual or anticipated localized emergency (e.g., loss of
    generation or transmission resources)
   Average forecasted peak temperature of San Jose,
    Concord, Redding, Sacramento, and Fresno meets or
    exceeds 94 degrees Fahrenheit on a program day (example
    for PG&E territory)
                                                            5
                                                Load Duration Curve During
                                                            2006 Heat Wave: September 2005 to September 2006
                     55,000



                     50,000                   50,085 MW Peak 7/24/06

                     45,000
Hourly Ave. Demand




                     40,000
                                                                                    Greater than 45,000 MW 57 hours or 0.65%

                     35,000
                                                                                    Winter Peak 33,275 MW 12/14/05
                     30,000



                     25,000



                     20,000



                     15,000
                              1




                                                                                                                                                                                                                                                    7,309

                                                                                                                                                                                                                                                            7,570

                                                                                                                                                                                                                                                                    7,831

                                                                                                                                                                                                                                                                            8,092

                                                                                                                                                                                                                                                                                    8,353

                                                                                                                                                                                                                                                                                            8,614
                                                                                                                                                                                                                                            7,048
                                                                                                                                                                                                                            6,526

                                                                                                                                                                                                                                    6,787
                                  262

                                        523

                                              784




                                                                                                                                                                                                                    6,265
                                                    1,045

                                                            1,306

                                                                    1,567

                                                                            1,828

                                                                                    2,089

                                                                                            2,350

                                                                                                    2,611

                                                                                                            2,872

                                                                                                                    3,133

                                                                                                                            3,394

                                                                                                                                    3,655

                                                                                                                                            3,916

                                                                                                                                                    4,177

                                                                                                                                                            4,438

                                                                                                                                                                    4,699

                                                                                                                                                                            4,960

                                                                                                                                                                                    5,221

                                                                                                                                                                                            5,482

                                                                                                                                                                                                    5,743

                                                                                                                                                                                                            6,004                                                   6
                                                                                                                                                      Hour
        Types of Demand Response
 Load response for reliability purposes:
    Direct load control, partial, or curtailable load reductions (e.g.,
     Air Conditioning Cycling)
    Complete load interruptions
    Use of AutoDR technologies

 Price response by end-use customers:
    Time Varied Rates: Real-Time Pricing (RTP), Critical Peak
     Pricing (CPP), Time-of-Use rates (TOU)
    Demand Bidding Programs
    Capacity Bidding Programs
    Aggregator Managed Programs

 Programs that bid directly in the CAISO’s wholesale
  markets
                                                                 7
Potential Penalties for Non-compliance

 Time-Varied Rates
   No penalty, just pay higher cost for energy during
    peak

 Interruptible Tariffs
   Capacity payment and penalty for non-compliance

 Incentive-Based Programs
   Price-responsive
       If no capacity payment – no penalty
       With capacity payment – penalty for non-compliance
   Emergency-triggered
       Capacity payment and penalty for non-compliance
                                                             8
         Ex Ante Load Impact for
  Utility Demand Response Programs

                                                                                      5% DR
                                                     2012        2013        2014
                                                                                       Goal
                                                    (MWs)       (MWs)       (MWs)
                                                                                      (MWs)


    Emergency-triggered Programs                      869         900         933      N/A


                                                                                              1
       Price-Responsive Programs                     2,281       2,467       2,410    2,500


                       Total                         3,150       3,367       3,343     N/A

[1] 5% of an assumed 50,000 MWs of system peak demand – illustration purposes only.

                                                                                          9
         DR Budget Request
               2012-2014 Cycle

                                   Authorized      Increase In
                Budget Request
     IOU                           Budget for        Budget
                 for 2012-2014
                                   2009-2011         Request
     PG&E           $228.0M         $186.9Ma          22.0%
      SCE          $249.0Mb         $233.6M           6.6%
    SDG&E           $68.1M          $ 55.1M           23.6%
     Total          $545.1M         $475.6M          14.6%


(a) Total authorized funding from DR cycle and SmartAC proceedings
(b) Includes SCE request to apply $20M in unspent funds approved in
2009-2011 DR cycle


                                                                      10

								
To top