National Town Meeting on Demand Response Focus on Pepcos Washington, DC Residential Smart Meter Pilot Program Presented By Steve Sunderhauf July 14, 2009.

National Town Meeting on Demand Response

Focus on Pepco’s Washington, DC Residential Smart Meter Pilot Program

Presented By

Steve SunderhaufJuly 14, 2009

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Pepco’s Washington, DC Residential Smart Meter Pilot ProgramSMPPI SITES

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

The number of participants by rate type:

TARIFF Customer Group HPO CPP CPR Control Standard Customers 250 250 250 88 All-Electric Customers 100 100 100 83 Standard RAD Customers - - 100 38 All-Electric RAD Customers - - 63 46 Total Meters 350 350 513 255

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Pepco’s Washington, DC Residential Smart Meter Pilot ProgramCRITICAL PEAK PRICING

Critical Peak Prices 15 Days per Year/60 Hours

12 Summer (June – Oct.) Days/3 Winter (Nov. – Apr.) Days 4 Hours Per Day

Summer CPP Rates Critical Peak: $0.75 per kWh, 2 pm – 6 pm Non-Peak: $0.10 per kWh

Winter CPP Rates Critical Peak: $0.70 kWh, 6 am – 8 am and 6 pm

to 8 pm Non-Peak: $0.09

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

There were 12 critical peak days called in Summer 2008, with 5 called in August. On critical peak pricing days, customers see higher prices from 2 pm to 6 pm. For all other hours, customers enjoyed a rate discounted by 5.5% from the regular summer residential rate.

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PowerCentsDC Critical Peak Pricing Summer 2008 rate

CPP day Reg Weekday

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

There were 3 critical peak days called in winter 2008-2009, with 2 in January. On critical peak pricing days, customers see higher prices from 6 am to 8 am and 6 pm to 8 pm. For all other hours, customers enjoyed a rate discounted by 8.9% from the regular winter residential energy rate.

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PowerCentsDC Critical Peak Pricing Winter 2009 rate

CPP day Reg Weekday

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Pepco’s Washington, DC Residential Smart Meter Pilot ProgramCRITICAL PEAK REBATES

Rebates for Load Reductions During Critical Peak Hours Summer (June – Oct.): $0.66 per kWh Reduced Winter (Nov. – May): $0.36 per kWh Differences by Specific Residential Rates

Individual Customer Baseline Consumption Used to Calculate kWh Reductions CBL Determined by Averaging Hourly

Consumption Over 3 Separate High Use Days of the Billing Month

Low Income Customers Restricted to CPR

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

There were 12 critical peak days called in Summer 2008, with 5 called in August. The critical peak hours are the same as for the Critical Peak Pricing rate (2 pm to 6 pm) – only on Critical peak days.

-$0.70

-$0.60

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$0.10

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PowerCentsDC Critical Peak Rebate Pricing Summer 2008 rate

CPP day Reg Weekday CPP rebate

Customers earn a rebate for energy 'not used' during the critical peak hours in comparison to other similar days in the billing period. For kWh they do use, they pay the regular price.

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Pepco’s Washington, DC Residential Smart Meter Pilot ProgramSMPPI SAMPLE RESULTS

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

There were 3 critical peak days called in winter 2008-2009, with 2 in January. The critical peak hours are the same as for the Critical Peak pricing rate (6 – 8 am & 6 to 8 pm) – only on critical peak days.

-$0.40

-$0.30

-$0.20

-$0.10

$0.00

$0.10

$0.20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

PowerCentsDC Critical Peak Rebate Pricing Winter 2009 rate

CPP day Reg Weekday CPR Rebate

Customers earn a rebate for energy 'not used' during the critical peak hours in comparison to other similar days in the billing period. For kWh they do use, they pay the regular price.

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Pepco’s Washington, DC Residential Smart Meter Pilot ProgramDAY AHEAD HOURLY PRICING

Prices Derived From Day Ahead Hourly Pepco PJM Zonal Locational Marginal Wholesale Energy Prices Multipliers Used to Accentuate Price Signal

111 Percent Multiplier for Hourly Prices that Exceed SOS Prices

If LMP > SOS Price Then HP Price = LMP x 1.11 If LMP ≤ SOS Price Then HP Price = LMP

No Prices Set Below Zero Rate Multipliers Reviewed Quarterly to Ensure

Revenue Neutrality

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

$0.00$0.02$0.04$0.06$0.08$0.10$0.12$0.14$0.16

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PowerCentsDCAverage Weekday Hourly Energy Prices

August 2008Average Weekday SOS summer price

For the average weekday in August, customers on the hourly price rate saw lower prices than customers on the regular rates most of their waking hours. Prices were higher in the afternoon and for one hour after dinner.

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Pepco’s Washington, DC Residential Smart Meter Pilot Program

For the average weekday in January, customers on the hourly price rate saw lower prices than customers on the regular rates for the entire days.

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PowerCentsDCAverage Weekday Hourly Energy Prices

January 2009Average Weekday Winter SOS

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Pepco’s Washington, DC Residential Smart Meter Pilot ProgramLESSONS LEARNED

Simplify Pricing Calculations Automate Bill Validation Hourly kWh Should be Collected in 10

Watt Increments to Avoid Zero Intervals Establish Detailed Processes for

Handling Exceptions Test Daylight Savings Changes Avoid Scattered AMI Mesh Deployments