Dan Delurey Policy Overview Dan Delurey National Town Meeting on Demand Response and Smart Grid Washington, DC July 13-14, 2009.

Policy Overview

Dan DelureyDan Delurey

National Town Meeting on Demand National Town Meeting on Demand Response and Smart GridResponse and Smart Grid

Washington, DCWashington, DCJuly 13-14, 2009July 13-14, 2009

Policy Developments Policy Developments 2005 -20082005 -2008

www.demandresponsecommittee.orgwww.demandresponsecommittee.org

DR/SG Policy Report DR/SG Policy Report

Prepared for National Council on Electricity Prepared for National Council on Electricity Policy, an umbrella group for:Policy, an umbrella group for:• National Assn. Reg. Utility Comm. (NARUC)National Assn. Reg. Utility Comm. (NARUC)• National Governors Association (NGA)National Governors Association (NGA)• National Council of State Legislatures (NCSL)National Council of State Legislatures (NCSL)• National Assn. of State Energy Officials (NASEO)National Assn. of State Energy Officials (NASEO)• National Assn. of Clean Air Agencies (NACAA)National Assn. of Clean Air Agencies (NACAA)

CoversCovers• EPACT 2005EPACT 2005• EISA 2007EISA 2007• FERCFERC• DOEDOE• State-by-State ActionState-by-State Action

DR/SG Policy ReportDR/SG Policy Report

Quick SynopsisQuick Synopsis• EPACT 2005EPACT 2005

States took it seriously (if you look at the States took it seriously (if you look at the forest and not the trees…..)forest and not the trees…..)

• EISA 2007EISA 2007 Smart Grid language being used for Smart Grid language being used for

definitional purposes elsewheredefinitional purposes elsewhere Interoperability provision is being seriously Interoperability provision is being seriously

implementedimplemented Smart Grid grants serving as the vehicle Smart Grid grants serving as the vehicle

necessary to use stimulus fundsnecessary to use stimulus funds DR Potential Assessment and Action PlanDR Potential Assessment and Action Plan

State Activity 2005-2008State Activity 2005-2008

35 did regulatory policy on DR35 did regulatory policy on DR 2222 did legislative policy on DR did legislative policy on DR 18 did regulatory policy on SG/SM18 did regulatory policy on SG/SM 1010 did legislative policy on SG/SM did legislative policy on SG/SM 3838 initiated action on EPACT 1252 initiated action on EPACT 1252 32 completed action on EPACT 125232 completed action on EPACT 1252

TARPTARP

Accelerated Depreciation for Smart Accelerated Depreciation for Smart Meters and some Smart Grid Meters and some Smart Grid technologiestechnologies• But only moved down to 10 years – not But only moved down to 10 years – not

5, which was the target to make it 5, which was the target to make it like like other high tech items purposesother high tech items purposes

• Took five years from introduction to Took five years from introduction to passagepassage

ARRAARRA EISA Smart Grid Grants provided the EISA Smart Grid Grants provided the

vehiclevehicle Changes made to let them work for Changes made to let them work for

stimulus purposesstimulus purposes Language from EISA Smart Grid Title used Language from EISA Smart Grid Title used

for eligibility and screening purposesfor eligibility and screening purposes $4.4 Billion for General Smart Grid $4.4 Billion for General Smart Grid

Investment GrantsInvestment Grants $3+ Billion in money actually going out $3+ Billion in money actually going out the the

doordoor Significant sums for “energy efficiency” to Significant sums for “energy efficiency” to

states states

HR 2454 – House Energy and HR 2454 – House Energy and Climate Change Bill (a.k.a. the Climate Change Bill (a.k.a. the

American Clean Energy and American Clean Energy and Security Act – ACES)Security Act – ACES)

Energy and Climate in One BillEnergy and Climate in One Bill• Passed House by Slim MarginPassed House by Slim Margin

Smart Grid SubtitleSmart Grid Subtitle• Smart Grid and Energy StarSmart Grid and Energy Star• Smart Grid and Peak ReductionSmart Grid and Peak Reduction• Smart Grid and Energy Efficiency Smart Grid and Energy Efficiency

Education and CommunicationsEducation and Communications

HR 2454 - The Smart Grid HR 2454 - The Smart Grid SubtitleSubtitle

Sec 141: Definitions Sec 141: Definitions Sec 142: Smart Grid in Energy StarSec 142: Smart Grid in Energy Star Sec 143: Smart Grid on Energy Guide Sec 143: Smart Grid on Energy Guide

LabelsLabels Sec 144: Peak Demand Reduction GoalsSec 144: Peak Demand Reduction Goals Sec 145: Energy Efficiency Public Sec 145: Energy Efficiency Public

Information Program to Information Program to include Smart Gridinclude Smart Grid

Sec 146: Inclusion of Smart Grid in Sec 146: Inclusion of Smart Grid in Appliance Rebate ProgramAppliance Rebate Program

Mgr’s Amt.: Best in Class Appliance rankingMgr’s Amt.: Best in Class Appliance ranking

HR 2454 – Energy StarHR 2454 – Energy Star Section 142Section 142

• Assess Cost-effectiveness of integration of Assess Cost-effectiveness of integration of smart grid into products (benefits vs cost smart grid into products (benefits vs cost

of of smart grid increment)smart grid increment)• Scenario assessment of “what if” smart grid Scenario assessment of “what if” smart grid

technology were embedded and utilizedtechnology were embedded and utilized Section 143Section 143

• FTC Rulemaking on smart grid info on FTC Rulemaking on smart grid info on EnergyGuide labelEnergyGuide label

Section 145Section 145• Smart Appliances qualify under efficiency Smart Appliances qualify under efficiency

rebate programsrebate programs Manager’s amendmentManager’s amendment

• Best of the best, graded A-FBest of the best, graded A-F

HR HR 2454 – Sec. 144 Peak – Sec. 144 Peak ReductionReduction

Establishes a process for load-serving Establishes a process for load-serving entities to establish “goals”entities to establish “goals”

Two stages of goals, with specific Two stages of goals, with specific percentages and baselines to be percentages and baselines to be worked outworked out

Use FERC DR Assessment as a Use FERC DR Assessment as a resourceresource

Compliance through empirical Compliance through empirical measurement or demonstration of DR measurement or demonstration of DR

capability and testingcapability and testing

Senate Energy BillSenate Energy Bill

Reported out of Senate Energy Reported out of Senate Energy CommitteeCommittee

Energy-onlyEnergy-only• Climate Bill is responsibility of Climate Bill is responsibility of

Environment CommitteeEnvironment Committee• Bills expected to be merged on floor.Bills expected to be merged on floor.

Peak Reduction GoalsPeak Reduction Goals• Similar to House, but focus in Senate is Similar to House, but focus in Senate is

on improvement of system load factoron improvement of system load factor

Senate - - The American Clean Energy and The American Clean Energy and Leadership Act of 2009 (ACELA)Leadership Act of 2009 (ACELA)

Subtitle D—Electric GridSubtitle D—Electric Grid• Sec. 295. National electric system Sec. 295. National electric system

efficiency and peak demand reduction efficiency and peak demand reduction goal. Similar to House only specific goal. Similar to House only specific focus on system load factorfocus on system load factor

• Sec. 296. Uniform national standards for Sec. 296. Uniform national standards for interconnection of certain small power interconnection of certain small power production facilities.production facilities.

State Peak Reduction Standards

Pennsylvania: 4.5% by 2013

Maine: 100MW of peak demand by 2020

Maryland5% by 2011 - 10% by 2013 - 15% by

2015

Ohio1% in 2009, plus 0.75% per year to 2018

Delaware, Virginia, California, Texas

InteroperabilityInteroperability National Institute of Standards and National Institute of Standards and

Technology (NIST) has the ball for now – then Technology (NIST) has the ball for now – then it goes to FERCit goes to FERC

Framework and protocolsFramework and protocols Data/Information interface vs devicesData/Information interface vs devices NIST effortNIST effort

• Sees existing standards as low-hanging fruit to Sees existing standards as low-hanging fruit to adoptadopt

• Not your usual standard process in terms of time Not your usual standard process in terms of time and effortand effort

White House call to actionWhite House call to action Workshops pulling in 4-600 parties to roll up Workshops pulling in 4-600 parties to roll up

sleevessleeves Smart Grid Grants proceeding ahead of NIST Smart Grid Grants proceeding ahead of NIST

but with a heavy nod to the NIST process and but with a heavy nod to the NIST process and interoperability in generalinteroperability in general

Smart Grid Grants

Not $30+, Not $11B, it is $3B+ for Not $30+, Not $11B, it is $3B+ for general smart grid investment grantsgeneral smart grid investment grants

Heavy Reliance on EISA 07 language and Heavy Reliance on EISA 07 language and directiondirection

Incorporation of interoperability and Incorporation of interoperability and cybersecuritycybersecurity

Diverse eligibility Diverse eligibility • ApplicantsApplicants• Kind of ProjectsKind of Projects

Funding Opportunity Notice (FOA) issuedFunding Opportunity Notice (FOA) issued Notice of Intent DueNotice of Intent Due Grant Applications Due Grant Applications Due Oversubscribed?Oversubscribed?

Cybersecurity Wolf Blitzer in the Situation Room? NERC in May approves eight Revised

Cybersecurity Standards• consisting of 40 “good housekeeping”

requirements House and Senate Hearings and Bills

• Primarily dealing with jurisdiction Agencies beef up Smart Grid Grants incorporates

Federal ActivityFederal Activity

FERC Smart Grid Policy StatementFERC Smart Grid Policy Statement FERC DR Potential AssessmentFERC DR Potential Assessment DOE Advisory Council includes DR in DOE Advisory Council includes DR in

Resource Adequacy ReportResource Adequacy Report DOE Smart Grid GrantsDOE Smart Grid Grants DOE funds to State CommissionsDOE funds to State Commissions NISTNIST EPA EE Action Plan Vision Statement EPA EE Action Plan Vision Statement

included DRincluded DR

State ActivityState Activity

CA DR Programs and Smart Grid OIRCA DR Programs and Smart Grid OIR MD DR Programs and RFPMD DR Programs and RFP Illinois Smart Grid InitiativeIllinois Smart Grid Initiative VA Peak Demand ReductionVA Peak Demand Reduction ME Peak Demand ReductionME Peak Demand Reduction NM Smart Grid Statewide PlanNM Smart Grid Statewide Plan Action in multiple states to prepare Action in multiple states to prepare

for federal Smart Grid Grantsfor federal Smart Grid Grants

Thank YouThank You

www.demandresponsecommittee.orgwww.demandresponsecommittee.org

FERC Issues 2008 Assessment of Demand FERC Issues 2008 Assessment of Demand Response and Advanced Metering Response and Advanced Metering

FERC issued, on 12/29/08, its Staff’s third annual report on FERC issued, on 12/29/08, its Staff’s third annual report on demand response and smart metering in compliance with demand response and smart metering in compliance with EPACT 2005. The report, “2008 Assessment of Demand EPACT 2005. The report, “2008 Assessment of Demand Response and Advanced Metering,” was based on a survey of Response and Advanced Metering,” was based on a survey of utilities and demand response companies that led to the utilities and demand response companies that led to the following findings: • “Advanced metering penetration (i.e., following findings: • “Advanced metering penetration (i.e., the ratio of advanced meters to all installed meters) has the ratio of advanced meters to all installed meters) has reached about 4.7 percent for the United States. This is a reached about 4.7 percent for the United States. This is a significant increase from 2006, when advanced metering significant increase from 2006, when advanced metering penetration was less than one percent.” [Note: this and other penetration was less than one percent.” [Note: this and other numbers from the Report are not directly comparable to the numbers from the Report are not directly comparable to the data from FERC’s 2006 Report, which was based on a prior data from FERC’s 2006 Report, which was based on a prior survey. As FERC explains in the Report, it adjusted its survey. As FERC explains in the Report, it adjusted its definition of advanced metering to only include such metering definition of advanced metering to only include such metering that was “in use”] • “Eight percent of customers in the that was “in use”] • “Eight percent of customers in the United States are in some kind of demand response program.” United States are in some kind of demand response program.” • “There have also been large increases in customer • “There have also been large increases in customer enrollment and the number of entities that offer demand enrollment and the number of entities that offer demand response programs; for example, the number of entities response programs; for example, the number of entities offering real-time pricing increased significantly since 2006.”offering real-time pricing increased significantly since 2006.”

Update 08.12.31Update 08.12.31

Congress Chamber of Commerce Issues Congress Chamber of Commerce Issues Energy-Policy Transition Plan for President-Energy-Policy Transition Plan for President-

Elect Obama and 111th Elect Obama and 111th On 11/17/08, the US Chamber of Commerce's Institute for On 11/17/08, the US Chamber of Commerce's Institute for

21 Century Energy released its “Transition Plan for 21 Century Energy released its “Transition Plan for Securing America’s Energy Future,” an “energy policy Securing America’s Energy Future,” an “energy policy roadmap” based on the September 2008 blueprint that roadmap” based on the September 2008 blueprint that details 88 “concrete” policy-action recommendations for details 88 “concrete” policy-action recommendations for President- elect Barack Obama and the 111th Congress. President- elect Barack Obama and the 111th Congress. In particular, the “Transition Plan for Securing America’s In particular, the “Transition Plan for Securing America’s Energy Future” proposes a timeline for realizing each Energy Future” proposes a timeline for realizing each proposed policy action and organizes the proposed policy action and organizes the recommendations around two criteria:recommendations around two criteria:

Including: “The Secretary of Energy should place high Including: “The Secretary of Energy should place high priority on the implementation of the smart power grid priority on the implementation of the smart power grid requirements of the Energy Independence and Security requirements of the Energy Independence and Security Act of 2007. This may include specific recommendations Act of 2007. This may include specific recommendations for state and federal policies and other actions necessary for state and federal policies and other actions necessary to facilitate the transition to a smart power grid.”to facilitate the transition to a smart power grid.”

08.11.29 update 08.11.29 update

Connecticut Energy Advisory Board Issues Connecticut Energy Advisory Board Issues RFP for Demand Response to Offset Proposed RFP for Demand Response to Offset Proposed

Transmission Projects Transmission Projects On 11/4/08, the Connecticut Energy Advisory Board (CEAB) On 11/4/08, the Connecticut Energy Advisory Board (CEAB)

issued an RFP for projects that could supplant the two issued an RFP for projects that could supplant the two transmission projects proposed by Connecticut Light & transmission projects proposed by Connecticut Light & Power (CL&P). Both supply- and demand-side resources Power (CL&P). Both supply- and demand-side resources may be proposed in response to the RFP, including: •may be proposed in response to the RFP, including: •

Grid-based Distributed Resources Grid-based Distributed Resources Distributed generationDistributed generation Load response resourcesLoad response resources Emergency generatorsEmergency generators New central station power plants New central station power plants Customer-based Distributed ResourcesCustomer-based Distributed Resources Distributed generationDistributed generation Combined heat & power/cogenerationCombined heat & power/cogeneration Load response resourcesLoad response resources Emergency generatorsEmergency generators Energy efficiency resources/conservation.Energy efficiency resources/conservation. 08.11.29 Update08.11.29 Update

ISO New England and New England Power Pool ISO New England and New England Power Pool Petition FERC for Tariff Modifications Related Petition FERC for Tariff Modifications Related

to Demand Resources to Demand Resources In a 10/31/08 filing, ISO New England and In a 10/31/08 filing, ISO New England and

the New England Power Pool (NEPOOL) the New England Power Pool (NEPOOL) petitioned FERC to accept tariff revisions petitioned FERC to accept tariff revisions that would eliminate the reserve margin that would eliminate the reserve margin gross-up used to “determine the Capacity gross-up used to “determine the Capacity Value of Demand Resources under the Value of Demand Resources under the existing rules of the Forward Capacity existing rules of the Forward Capacity Market.” ISO New England and NEPOOL Market.” ISO New England and NEPOOL would like FERC to eliminate the reserve would like FERC to eliminate the reserve margin gross-up by 12/31/08, in time for margin gross-up by 12/31/08, in time for the 2012/2013 Capacity Commitment the 2012/2013 Capacity Commitment Period associated with the upcoming Period associated with the upcoming third Forward Capacity Auction.third Forward Capacity Auction.

Update 08.11.29Update 08.11.29

Kansas Commission Establishes Efficiency Kansas Commission Establishes Efficiency Guidelines, Opens Door for Demand Response Guidelines, Opens Door for Demand Response

ProgramsPrograms On 11/14/08, the Kansas Corporation Commission issued a On 11/14/08, the Kansas Corporation Commission issued a

Final Order that establishes a “comprehensive energy Final Order that establishes a “comprehensive energy efficiency framework” (Docket 08-GIMX-441-GIV). efficiency framework” (Docket 08-GIMX-441-GIV). Specifically, it sets the following: • “The Commission's Specifically, it sets the following: • “The Commission's policy shall be to consider proposals from utilities for policy shall be to consider proposals from utilities for riders to recover costs for energy efficiency programs, as riders to recover costs for energy efficiency programs, as discussed above.” • “The Commission's policy shall be to discussed above.” • “The Commission's policy shall be to consider proposals from utilities for the decoupling consider proposals from utilities for the decoupling method of addressing the throughput incentive issue, method of addressing the throughput incentive issue, made in connection with energy efficiency programs, as made in connection with energy efficiency programs, as discussed above.” • “The Commission's policy shall be to discussed above.” • “The Commission's policy shall be to consider proposals for shared savings performance consider proposals for shared savings performance incentive plans where tied to specific energy efficiency incentive plans where tied to specific energy efficiency programs the Commission believes most desirable, as programs the Commission believes most desirable, as discussed above.” Furthermore, the Final Order contains discussed above.” Furthermore, the Final Order contains language that implies that the Commission would is language that implies that the Commission would is including demand response programs proposed by utilities including demand response programs proposed by utilities as part of efficiency efforts, while also recognizing a as part of efficiency efforts, while also recognizing a difference in such programs. difference in such programs.

Update 08.11.29 Update 08.11.29

Maryland Commission Orders IOUs to File Maryland Commission Orders IOUs to File RFPs for DR to Meet Capacity Shortfall RFPs for DR to Meet Capacity Shortfall

As previously reported, the Maryland Public Service As previously reported, the Maryland Public Service Commission commenced a proceeding in August 2008 Commission commenced a proceeding in August 2008 to “investigate the process and criteria” for having to “investigate the process and criteria” for having IOUs issue “gap” RFPs to secure additional resources IOUs issue “gap” RFPs to secure additional resources in effort to “avoid potential capacity shortfalls in in effort to “avoid potential capacity shortfalls in Maryland if certain transmission line projects are not Maryland if certain transmission line projects are not competed as currently contemplated by 2011 and competed as currently contemplated by 2011 and 2012” (Case 9149). The Commission received 2012” (Case 9149). The Commission received comments in September 2008 and held legislative-comments in September 2008 and held legislative-style hearings in October 2008. On 11/6/08, the style hearings in October 2008. On 11/6/08, the Commission issued an Order in which it concluded that Commission issued an Order in which it concluded that the Mid-Atlantic region faces a reliability gap of about the Mid-Atlantic region faces a reliability gap of about 2,600 – 3,000 MW for 2011 – 2012. (Of the total gap 2,600 – 3,000 MW for 2011 – 2012. (Of the total gap predicted, 600 – 690 MW is attributable to Maryland.) predicted, 600 – 690 MW is attributable to Maryland.) Furthermore, the Commission not only determined Furthermore, the Commission not only determined that demand response and distributed generation that demand response and distributed generation should be the primary resources used to ensure should be the primary resources used to ensure reliabilityreliability

Update 08.11.29Update 08.11.29

National Action Plan for Energy Efficiency National Action Plan for Energy Efficiency “Vision Document” Includes Demand “Vision Document” Includes Demand

Response and Smart MeteringResponse and Smart Metering As previously reported, in November 2007 the As previously reported, in November 2007 the

leadership group of the National Action Plan on leadership group of the National Action Plan on Energy Efficiency (NAPEE) released a “vision Energy Efficiency (NAPEE) released a “vision document” for realizing the five policy objectives document” for realizing the five policy objectives of the plan. This vision identified demand response of the plan. This vision identified demand response and the smart grid as areas of focus for the NAPEE. and the smart grid as areas of focus for the NAPEE. On 11/18/08, the NAPEE leadership group released On 11/18/08, the NAPEE leadership group released an updated vision document—“National Action Plan an updated vision document—“National Action Plan for Energy Efficiency Vision for 2025: A Framework for Energy Efficiency Vision for 2025: A Framework for Change”—in which demand response, smart for Change”—in which demand response, smart metering, and the smart grid remain prominent. metering, and the smart grid remain prominent. The revised vision document lists ten The revised vision document lists ten implementation goals of the NAPEE as well means implementation goals of the NAPEE as well means for measuring progress in achieving them. Three for measuring progress in achieving them. Three goals support, directly or indirectly, demand goals support, directly or indirectly, demand response, smart metering, and the smart grid:response, smart metering, and the smart grid:

Update 08.11.29Update 08.11.29

New Jersey Governor Signs Bill Outlining How New Jersey Governor Signs Bill Outlining How Schools May Contract for Demand Response Schools May Contract for Demand Response

Governor Corzine signed legislation Governor Corzine signed legislation in September 2008 that outlines in September 2008 that outlines how the state’s boards of education how the state’s boards of education and county colleges may contract and county colleges may contract for demand response and other for demand response and other services to conserve electricity. services to conserve electricity. Read the text of the legislation Read the text of the legislation (A844) on the New Jersey (A844) on the New Jersey Legislature’s website.Legislature’s website.

Update 08.11.29Update 08.11.29

New Jersey Commission Approves Utility New Jersey Commission Approves Utility Program that Includes Programmable Program that Includes Programmable

Thermostats and Automated Lighting Control Thermostats and Automated Lighting Control On 11/21/08, Public Service Electric & Gas On 11/21/08, Public Service Electric & Gas

Company (PSE&G) announced that the New Jersey Company (PSE&G) announced that the New Jersey Board of Public Utilities had approved its Board of Public Utilities had approved its proposed $46 million, four-year project to reduce proposed $46 million, four-year project to reduce energy consumption and CO2 emissions (Docket energy consumption and CO2 emissions (Docket EO08060426). The project has four components EO08060426). The project has four components that will focus, respectively, on residential that will focus, respectively, on residential customers, small businesses, large businesses, customers, small businesses, large businesses, and hospitals. Two of the components include and hospitals. Two of the components include measures conducive to demand response. First, measures conducive to demand response. First, through the residential component, PSE&G will through the residential component, PSE&G will provide customers with programmable provide customers with programmable thermostats. Second, the utility will provide large thermostats. Second, the utility will provide large businesses with integrated lighting systems that businesses with integrated lighting systems that include light-fixture monitoring and automated include light-fixture monitoring and automated controls of lighting equipment.controls of lighting equipment.

Update 08.11.29Update 08.11.29

Virginia Special Commission Issues Draft Virginia Special Commission Issues Draft Recommendations, Including Demand Response Recommendations, Including Demand Response and Utility Investment Incentives In December and Utility Investment Incentives In December 2007, Governor Kaine established the Governor’s 2007, Governor Kaine established the Governor’s Commission on Climate Change. On 11/13/08, the Commission on Climate Change. On 11/13/08, the Governor’s Commission on Climate Change held its Governor’s Commission on Climate Change held its ninth meeting andninth meeting anddiscussed its draft discussed its draft recommendations for Governor Kaine. Among the recommendations for Governor Kaine. Among the roughly 100 draft recommendations are two that address roughly 100 draft recommendations are two that address demand response: • “Electric utilities should pilot demand response: • “Electric utilities should pilot voluntary real-time rates to residential and commercial voluntary real-time rates to residential and commercial customers to understand the effect such rates would customers to understand the effect such rates would have on their cost structure and ensure costs are not have on their cost structure and ensure costs are not shifted between time-of-use and other customers. After shifted between time-of-use and other customers. After testing in pilots, these rates should be made available to testing in pilots, these rates should be made available to all residential and commercial customers.”all residential and commercial customers.”

Update 08.11.29Update 08.11.29

California Commission Opens Proceeding to California Commission Opens Proceeding to Consider Smart Grid Standards Relative to Consider Smart Grid Standards Relative to

EISA 2007 and State Policy EISA 2007 and State Policy The California Public Utilities Commission The California Public Utilities Commission

issued an Order Instituting Rulemaking issued an Order Instituting Rulemaking (OIR) on 12/22/08 in which it initiated a (OIR) on 12/22/08 in which it initiated a proceeding to consider the smart grid proceeding to consider the smart grid (Rulemaking 08-12-009). Specifically, the (Rulemaking 08-12-009). Specifically, the Commission will consider the state’s Commission will consider the state’s policies for the smart grid as well as the policies for the smart grid as well as the question of whether to adopt the two smart question of whether to adopt the two smart grid PURPA Standards established by the grid PURPA Standards established by the Energy Independence & Security Act of Energy Independence & Security Act of 2007. According to the Commission’s 2007. According to the Commission’s summary of its intent for the proceeding:summary of its intent for the proceeding:

Update 08.12.31Update 08.12.31

Maryland Peak-Demand Reduction Law Maryland Peak-Demand Reduction Law Update: December 2008 Update: December 2008

There has been some recent activity in There has been some recent activity in the Maryland Public Service the Maryland Public Service Commission’s five proceedings to Commission’s five proceedings to ensure utility compliance with the 15%-ensure utility compliance with the 15%-by-2015 peak-demand reduction target by-2015 peak-demand reduction target set by the EmPOWER Maryland Energy set by the EmPOWER Maryland Energy Efficiency Act of 2008. (While there is a Efficiency Act of 2008. (While there is a separate proceeding for Allegheny separate proceeding for Allegheny Power, BG&E, Pepco, Delmarva Power & Power, BG&E, Pepco, Delmarva Power & Light, and Southern Maryland Electric Light, and Southern Maryland Electric CooperativeCooperative

Update 08.12.31Update 08.12.31

New Jersey Legislature New Jersey Legislature Considering AMI Standard Considering AMI Standard

The New Jersey State Assembly is The New Jersey State Assembly is considering new legislation that considering new legislation that would establish AMI standards in would establish AMI standards in addition to standards for energy addition to standards for energy efficiency, renewable energy, and efficiency, renewable energy, and reducing GHG emissions. The bill, “An reducing GHG emissions. The bill, “An Act Concerning Advanced Metering Act Concerning Advanced Metering Infrastructure Standards” (A3333), Infrastructure Standards” (A3333), was introduced on 10/23/08 and was was introduced on 10/23/08 and was passed by the Telecommunications passed by the Telecommunications and Utilities Committee on 12/8/08.and Utilities Committee on 12/8/08.

Update 08.12.31Update 08.12.31

Oklahoma Commission Adopts Oklahoma Commission Adopts Rules for Demand Programs Rules for Demand Programs

As previously reported, in October 2007 the As previously reported, in October 2007 the Oklahoma Corporation Commission issued a Oklahoma Corporation Commission issued a Notice of Proposed Rulemaking to amend the Notice of Proposed Rulemaking to amend the Oklahoma Administrative Code by adding a Oklahoma Administrative Code by adding a subchapter, “Demand Programs,” that would subchapter, “Demand Programs,” that would establish rules for utilities deploying energy establish rules for utilities deploying energy efficiency and demand response programs efficiency and demand response programs (Case RM 200700007; ID: 4010862). As also (Case RM 200700007; ID: 4010862). As also previously reported, in September 2008 the previously reported, in September 2008 the Commission issued a revised set of proposed Commission issued a revised set of proposed rules after receiving comments about its initial rules after receiving comments about its initial set of proposed rules. On 11/24/08, the set of proposed rules. On 11/24/08, the Commission adopted the proposed rules before Commission adopted the proposed rules before sending them, on 12/4/08, to Governor Henry sending them, on 12/4/08, to Governor Henry and the state legislature for final approval.and the state legislature for final approval.

Update 08.12.31Update 08.12.31

Virginia Commission Initiates Proceeding to Virginia Commission Initiates Proceeding to Consider PURPA Standards in EISA 2007 The Consider PURPA Standards in EISA 2007 The Virginia Corporation Commission initiated a Virginia Corporation Commission initiated a proceeding on 12/11/08 to consider whether to proceeding on 12/11/08 to consider whether to adopt the four PURPA Standards created by the adopt the four PURPA Standards created by the Energy Independence & Security Act of 2007 Energy Independence & Security Act of 2007 (Docket PUE-2008-00112). Two of the four (Docket PUE-2008-00112). Two of the four PURPA Standards under consideration address PURPA Standards under consideration address the smart grid, while one of them is about the smart grid, while one of them is about demand response: “Consideration of Smart Grid demand response: “Consideration of Smart Grid Investments”Investments”

““Smart Grid Information”Smart Grid Information” ““Integrated Resource PlanningIntegrated Resource Planning ““Rate Design Modifications to Promote Energy Rate Design Modifications to Promote Energy

Efficiency Investments”Efficiency Investments” Update 08.12.31Update 08.12.31

Connecticut DPUC Declines Demand Response Connecticut DPUC Declines Demand Response Resources in 2008 IRP Resources in 2008 IRP

In a 1/16/09 Draft Decision, the Connecticut In a 1/16/09 Draft Decision, the Connecticut Department of Public Utility Control (DPUC) Department of Public Utility Control (DPUC) approved the 2008 integrated resource plan approved the 2008 integrated resource plan (IRP) filed by the state’s electric distribution (IRP) filed by the state’s electric distribution companies (EDCs) and the Connecticut Energy companies (EDCs) and the Connecticut Energy Advisory Board (CEAB) (Docket 08-07-01). In Advisory Board (CEAB) (Docket 08-07-01). In so doing, however, the DPUC declined the so doing, however, the DPUC declined the EDCs’ and CEAB’s recommendation to EDCs’ and CEAB’s recommendation to “procure hundreds of millions of dollars worth “procure hundreds of millions of dollars worth of new conservation and demand response of new conservation and demand response resources over the next ten years.” The Draft resources over the next ten years.” The Draft Decision, furthermore, reports that the DPUC Decision, furthermore, reports that the DPUC “finds a surplus of resources and concludes “finds a surplus of resources and concludes that there is no need for additional resources that there is no need for additional resources at this time or during the relevant planning at this time or during the relevant planning horizon.” horizon.”

DOE’s Electricity Advisory Council Issues DOE’s Electricity Advisory Council Issues Resource Adequacy Report, Calls for More Resource Adequacy Report, Calls for More

Demand Response Demand Response On 1/15/09, the DOE’s Electricity Advisory On 1/15/09, the DOE’s Electricity Advisory

Committee (EAC) issued a report on Committee (EAC) issued a report on maintaining adequate electricity supply. maintaining adequate electricity supply. Through the report, “Keeping the Lights Through the report, “Keeping the Lights On in aOn in aNew World,” the EAC addresses the New World,” the EAC addresses the trends for, drivers of, and barriers to building trends for, drivers of, and barriers to building generation/transmission capacity and generation/transmission capacity and deploying DSM resources. It also discusses the deploying DSM resources. It also discusses the country’s future electricity needs. Finally, it country’s future electricity needs. Finally, it recommends policies for the DOE to “ensure recommends policies for the DOE to “ensure reliable supplies of electricity in the future at a reliable supplies of electricity in the future at a reasonable cost and with due regard for the reasonable cost and with due regard for the environment.” Regarding demand response environment.” Regarding demand response and energy efficiency, the report suggests: and energy efficiency, the report suggests: