Demand Response, Small- and Large-Scale
In many parts of the country, summer's searing heat is far from over.
Yesterday, a webinar titled "Demand Response: A Proven Asset to Grid Management," explored how three utilities—a modest-sized cooperative, a mid-sized municipal and a large investor-owned utility—are implementing such programs. (The webcast is available on-demand from Energy Central in about a week. Please check back.)
The session was moderated by Christopher Perdue, vice president, Sierra Energy Group, a division of Energy Central, and featured Bill Andrew, CEO, Delaware Electric Cooperative, Don Kujawski, senior engineer, PJM, and Kathy Casas, program advisor of customer programs, San Diego Gas & Electric.
We'll pay the most attention to Andrew's description of his cooperative's program called "Beat the Peak," because it is the simplest and most accessible.
Andrew, CEO, Delaware Electric Cooperative (DEC), described his coop's "Beat the Peak" program, begun in 2008, and how it can help coops and those in the G&T business. Two salient facts: Demand is outstripping supply and the coop business model is uniquely positioned to engage and motivate members to participate. Peak load shifting cuts into expensive electricity purchases on the wholesale market, Andrew said.
"Not everyone can afford a Prius, a groundwater heat pump or a solar panel, but everyone can turn off the lights, especially when prices are high and the grid is stressed," Andrew said.
"Beat the Peak" developed as coop experienced high demand and resulting high costs to purchase wholesale electricity. Coop members billed on peak demand rate, thus direct incentive to cut peak use.
The program is simple but hard to implement, Andrew added. The difficulty is in delivering a consistent message and ensuring that coop members understand as much about the program and its value as you move forward.
"One of the most important parts of the 'Beat the Peak' program or any demand response program is to show the value to your customers or members as you move along," Andrew said.
In fact, Andrew spelled out "the situation" in his service territory in a manner that many listeners can relate to, and spelled out their relationship to their utility.
"What's happening in our area?" Andrew asked. "Disposable income is dropping. Family budgets are stretched. In the cooperative business model, our users are our customers are our owners. We focus on keeping lights on, costs low and make sure we have adequate power for our members when they need it."
"Right now in the East, demand is outstripping supply," Andrew said. "The transmission system is stressed. So we're always looking for ways to provide energy at the right cost, especially during peak periods."
"Our members are interested in conserving as much energy as possible and utilizing the smart grid," Andrew continued. "However, they would like their utility to make their decision for them and inform them of what they need to do."
In a nutshell, the DEC is providing nearly every residence in its service territory with a meter that displays a green, yellow and red light. As a demand event unfolds, as it has several times this summer, the meter (plugged into a standard outlet, receiving a signal via power line carrier.
The yellow light gives a one-hour-ahead warning that a demand event is imminent, then the light goes red for the four-hour event. This signals people at home to turn down unneeded base load. It builds on an opt-in, direct control program that automatically cycles down central air conditioning and hot water heaters.
The biggest advantages, according to Andrew, are lowered electricity costs with minimal investment and reduced need for new power generation and the pollution it emits.
Beyond the colored-light meter, the coop's existing smart grid configuration possesses 20,000 switch-and-save load management devices and 300 commercial/industrial interruptible customers. Contact is hands-on, via 36,000 residential emails, 50 key account emails, contact with 125 media outlets, a live radio call-in spot with Andrew, public service announcements for television and radio and updates to the DEC's homepage and social media.
Success in such endeavors require buy-in from senior management, a communications plan and a consistent message within and without the utility, delivered regularly, Andrew said. Quantify and publicize the results, he added. DEC lowered overall rates by $10 million as of the first of this year.
I refer readers directly to PJM and San Diego Gas & Electric for a sense of their demand response programs. In PJM's case, at least, you're looking at the development of an "integrated system for demand resource portfolio management," which only hints at the complexities that lie beyond.
However, PJM's objectives for demand response participation, are five-fold, according to Kujawski: reduce barriers to entry; streamline workflow management; seek flexible wholesale market participation for demand response; improve transparency to all participants; and improve measurement and verification.
Phil Carson
Editor-in-chief
Intelligent Utility Daily
pcarson@energycentral.com
303-228-4757
