Measurement and Verification Standards for Demand Response in Wholesale Electric Markets September 30, 2009 Eric Winkler, Ph.D. Project Manager, Demand.

Measurement and Verification Standards for Demand Response in Wholesale Electric Markets

September 30, 2009

Eric Winkler, Ph.D.Project Manager, Demand ResourcesFCM and Tariff AdministrationISO New England, Inc.

September 30, 2009© 2009 ISO New England Inc.

NAESB Overview

• ANSI Certified Standards Development Organization• Wholesale and Retail Electric and Gas Standards• Industry Driven Process/Balanced voting• Segments: Independent Grid Operators, Transmission,

Generation, Marketers, Distribution, End Users• Subcommittees and standards development is open to any

stakeholder• Recommendations voted on by Executive Leadership• Standards require full member ratification• Wholesale standards are filed with FERC• Retail model business practices are voluntary• Standards development is dynamic and ongoing

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Standards For Business Practices And Communication Protocols For Public Utilities - FERC NOPR RM-05-017

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Disclaimer

• The information provided in this presentation does not represent the views or position of NAESB, ISO New England, NEPOOL or the ISO/RTO Counsel relative to the FERC NOPR RM-05-017.

• Questions regarding this NOPR should be directed to the appropriate staff at FERC.

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Overview

• April 17, 2009 - NAESB files results of March 16, 2009 adoption of Wholesale Demand Response Measurement and Verification Standards, under Docket RM-05-017

• September 17, 2009 - FERC NOPR announced at open meeting.

• September 22, 2009 – FERC NOPR published in Federal Register.

• October 22, 2009 - Comment period ends

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Summary

1. FERC proposes to incorporate by reference in its regulations at 18 CFR 38.2 business practices standards adopted by the Wholesale Electric Quadrant of NAESB to categorize various demand response products and services and to report the measurement and verification of these products and services in wholesale energy markets. (Sec. 1)

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Summary - Background

2. Standards developed by ANSI accredited Board, NAESB. (Sec. 2)

3. Standards developed by NAESB cover Wholesale and Retail Gas and Electric designed to streamline transactional and communications processes. (Sec. 3)

4. NAESB process is open and requires majority support from EC, 40% support from 6 industry segments in wholesale quadrant; transmission, generation, marketer/brokers, distribution/LSE, end users, independent grid operators/planners, and supermajority support from WEQ membership. (Sec.4)

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Summary

5. NAESB submits Phase I Standards referenced in Section 1 April 17, 2009 and notes Phase II WEQ DR standards development work in progress (Sec.5)

6. Phase I standards include 31 business practices and 40 definitions identifying the M&V characteristics of Demand Response products in wholesale markets. Work plan item 4.b, Phase II standards, was established concurrently with EC approval of Phase I (Sec 6)

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Summary – Description of M&V Standards

7. Phase I M&V standards identify operational information, performance evaluation methodologies, and definitions. (Sec 7)

8. Standards address transparency requirements for four Demand Response product types; Energy, Capacity, Ancillary Services Regulation and Ancillary Services Reserve products. Many characteristics are common across products types with some exclusive to a single product. (Sec 8)

9. Standards require System Operator to make specific methods to be used and required information publically available. (sec 9)

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Summary - Discussion

10. Incorporate by reference into FERC regulations WEQ Phase I M&V standards and associated terms in WEQ-015 glossary. (Sec 10)

– The standard enhances Transparency and Consistency to methods used to measure and verify demand response products in wholesale markets

– Glossary provides standardized definitions of demand response services, operational terms and performance measurement.

– The standards establishes basis upon which to develop more comprehensive standards for provisioning demand response in wholesale markets.

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11. NAESB’s consensus driven process for adoption of standards provides for reasonableness test drawing broad support from segments of industry. (Sec 11)

12. Business Practice Standards are intended to facilitate ability of demand response providers to participate in markets, reduce transaction costs, and provide more customers to participate, especially for those in multiple markets. These standards provide framework for additional standardization efforts and to identify those elements for which standardization would be beneficial.

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13. NAESB’s WEQ should continue their efforts to develop substantive standards for operation, evaluation and performance of demand response.

– FERC believe Industry should continue to take lead in developing and implementing demand response standards that are practical and workable.

– FERC seeks comment on establishing a deadline for development of these remaining critical standards.

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Summary – Notice of Voluntary Consensus Standards

• FERC provides Notice of Proposed Rule Making in compliance with OMB Circular A-119 (section 11) (February 10, 1998). (Sec 14)

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Summary - Misc

• Information Collection – Sections 15-20• Environmental Analysis – Section 21• Regulatory Flexibility Act Certification – Sections 22-23• Comment Procedures

– Comments due 30 days after filing in Federal Register (sec 24)

– Filings may be electronic or paper, paper filings must include 14 copies (Sec 25)

– Filings may be view as described in Document Availability section (Sec 26)

• Document Availability– Available in Federal Register and FERC’s home page (Sec 27)

– Available from FERC’s eLibrary (Sec 28)

– Assitance is available for accessing FERC’s eLibrary. (Sec 29)

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Phase II M&V Standards Development For Demand Response in Wholesale Electric Markets

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Phase II Activities

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Date Location Minutes Misc.

8-Oct-09 Conference Call/Webex Energy Curtailment Specialists Comments

FERC 9/17/09 NOPR on NAESB WEQ DR M&V Standards

FERC 9/17/09 Press Release on NAESB WEQ DR M&V Standards

20-Aug-09

DSM/EE Working Group 3 Meeting, WEQ, Colorado

Springs,

Cancelled Energy Curtailment Specialists Comments

15-Jul-09 Conference Call/Webex EnerNOC Cumulative Edits Redlined July 1, 2009

Energy Curtailment Specialists Comemnts to EnerNOC Cumulative Edits Redlined July 1 2009

Retail and Wholesale DR Definitions Compared

1-Jul-09 Conference Call/Webex Meeting Notes EnerNOC Cumulative Product Edits

EnerNOC Cumulative Edits Redlined July 1,

2009

2008 WEQ Annual Plan Item 5(a) Final Action: Review and develop business practice standards to

support DR and DSM-EE programs. - Ratified March 16, 2009

17-Jun-09 Conference Call/Webex

Retail Metering Working Group Process for Performing VEE for AMS

Comverge’s revised edits to the WEQ DR standards

EnerNOC’s revised edits to the WEQ DR standards

EnerNOC’s Energy Products Edits


Phase II Activities

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Date Location Minutes Misc.

10-Jun-09 DSM/EE Working Group 3 Meeting, WEQ, Boston,

MA

Meeting Notes EnerNOC - The Demand Response Baseline

Comverge’s revised edits to the WEQ DR standards

WEQ DR Standards - EnerNOC Capacity Product Recommendations v.1

EnerNOC’s revised edits to the WEQ DR standards

Comverge Edits to the WEQ DR Standards by W. Miyaji

IRC Website Link to MATRIX

2008 WEQ Annual Plan Item 5(a) Final Action: Review and develop business practice standards to support DR and DSM-EE programs. -

Ratified March 16, 2009

18-May-09 Conference Call/Webex IRC Website Link to MATRIX

16-Apr-09 DSM/EE Working Group 3 Meeting, WEQ, Austin, TX

Recommendation 2008 WEQ Annual Plan Item 5(a) Approved by the WEQ EC on February 10, 2009 (Clean)


IRC Matrix of DR products

• Matrix of demand response technical requirements inclusive of Operational, Measurement and Performance Evaluation Criteria.

• Covers all current Demand Response Products offered throughout North America.

• Over 2500 data elements with links to additional tariff and operating manuals.

• Matrix is easily searchable and free to public.• Matrix will be maintained by ISO-RTO Counsel.• Located at www.isorto.org under documents.

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Next Steps

• Forward going process• Discussion of Scope

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Contact

North American Energy Standards Board1301 Fannin St.Suite 2350Houston, TX 77002Voice: (713) 356-0060Email: [email protected]

Eric Winkler, Ph.D.FCM &Tariff Administration

ISO New England

Email: [email protected]

www.iso-ne.com

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Measurement and Verification Standards for Demand Response in Wholesale Electric Markets September 30, 2009 Eric Winkler, Ph.D. Project Manager, Demand.

Documents

verification standards

adoption of standards

comprehensive standards

substantive standards

business practices standards

business practice standards

executive leadership

wholesale electric markets