California Roundup: Summary of DR Activity in California John Goodin Lead, Demand Response 2008 National Town Meeting on Demand Response June 3, 2008.

California Roundup: Summary of DR Activity in California

John GoodinLead, Demand Response2008 National Town Meeting on Demand ResponseJune 3, 2008

2

California Energy Action Plan

The “loading order” identifies energy efficiency and demand response as the State’s preferred means of meeting growing energy needs.

The 2008 Energy Action Plan update lists several key DR related action items:

• Adopt load-management standards to achieve a demand response infrastructure.

• Utilize advanced metering, tariffs and automated DR infrastructure in the development of DR programs.

• More progress on dynamic pricing rate design reform for all customer types.

• Develop DR load impact and cost-effectiveness protocols.

• Modify retail programs to more fully participate in the CAISO’s wholesale market structure.

3

Retail Activity

CEC Load Management Standards Proceeding

CPUC Demand Response Proceeding

Utility 2009-2011 DR Program Applications

Development of Dynamic Tariffs

Large Scale Deployment of AMI

4

Regulatory Proceedings in California- CEC

CEC Load Management Proceeding (08-DR-01) Explore and consider any rate tariffs, equipment,

software, automatic technologies, and other measures and regulations that would be appropriate to achieve a price-responsive electricity market

Explore the coordination of regulatory authority of demand response efforts across investor owned and publicly owned utilities in the state

5

Regulatory Proceedings in California- CPUC

CPUC Demand Response Rulemaking (R.07-01-041) Load Impact Protocols

• Long-term planning and Resource Adequacy purposes• Day-to-day operational and procurement needs

(CAISO and utility) Cost-effectiveness Protocols Goals

• Proposed decision due out shortly Integration with CAISO Market Design Utility DR program applications for 2009-2011

• Filed yesterday (June 2nd)

6

California’s Full Deployment of AMI

PG&E SDG&E SCE

Scale

5.1 million electric meters

4.2 million gas meter modules

1.4 million electric meters

900,000 gas meter modules

5.3 million electric meters

SoCalGas MAY connect to this system

Total Costs$1.74 billion approved$623 million requested

for upgrade

$581 million approved

$1.72 billion requested

Deployment timeline

2007-2012 2008-2011 2009-2012

7

Wholesale Activity

Driving the need for Market Integration

Demand Response Working Groups

Enhanced Functionality in New Market Design

8

Load Duration Curve: 2007-2008

CAISO Load Duration CurveMay 28, 2007 to May 27, 2008

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

208

416

624

832

1040

1248

1456

1664

1872

2080

2288

2496

2704

2912

3120

3328

3536

3744

3952

4160

4368

4576

4784

4992

5200

5408

5616

5824

6032

6240

6448

6656

6864

7072

7280

7488

7696

7904

8112

8320

8528

8736

Hours

Syst

em D

eman

d; (M

W)

48,491 MW Peak

5% of Peak or 46,066 MW

Demand > 46,066 MW Only 15 Hours/Yr

10% of Peak or 43,461 MW Demand > 43,461 MW Only 55 Hours/Yr

9

Integrating Intermittent Renewable Resources

CAISO Wind Generation

July 2006 Heat Wave

0

200

400

600

800

1,000

1,200

07/1

6/06

07/1

7/06

07/1

7/06

07/1

8/06

07/1

8/06

07/1

9/06

07/1

9/06

07/2

0/06

07/2

0/06

07/2

1/06

07/2

1/06

07/2

2/06

07/2

2/06

07/2

3/06

07/2

3/06

07/2

4/06

07/2

4/06

07/2

5/06

07/2

5/06

07/2

6/06

07/2

6/06

MW

Wind Generation Wind Generation at Peak

Total Wind Generation Installed Capacity = 2,648 MW

Wind Generation at Peak

10

Retail – Wholesale Integration in California

Five (5) Working Groups and the Lead Agency:

Vision for Demand Resources- CPUC

DR Participation in MRTU Release 1 - CAISO

DR Participation in MRTU Post Release 1- CAISO

Demand Resource Product Specification- CEC

Infrastructure for Demand Resources- CEC

11

Proposed CAISO Market Design Enhancements

Dispatchable Demand Resource Generator ResourceBase Load Schedule Base LoadMinimum Load Reduction Minimum generator outputMinimum Load Maximum generator outputLoad Reduction Initiation Time Start-up timeMinimum Load Reduction Time Minimum up timeMaximum Load Reduction Time Maximum daily energy limitMinimum & Maximum Daily Energy Limit Maximum daily energy limitLoad Drop Rate Ramp up rate Load Pickup Rate Ramp down rateLoad Reduction Initiation Cost Start-up costMinimum Load Reduction Cost Minimum load cost

Model DR with the Flexibility of a Generator

12

Questions?

Contact Info:John Goodin

(916) 608-7154

[email protected]