MPT

1
Demand Response Options and Wholesale Settlements

• Discuss the goal of enabling demand response and
  improving settlement accuracy February 23, 2007

2
Demand Response Wholesale Settlements
Overview

• Provide brainstorming results from ERCOT
  discussions of enabling demand response and
  improving settlement accuracy for the following
• Time of Use Currently have 4 buckets
• Daily kWh consumption values
• Daily values TOU 4 periods (3 hourly 1 for
  the rest)
• Daily TOU
• Hourly data
• 15-minute data
• Hybrid (only in certain periods of the day/year)
• Event driven only in specific demand response
  events
• Sample model

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Demand Response Wholesale Settlements

• Time of Use
• Enables wholesale settlements for demand response
  programs that control usage during the defined
  TOU schedule(s)
• Limitations to demand response programs
• Aggregates usage data for each TOU period over
  the read cycle
• Maximum of 4 TOU periods
• Usage data profiled by TOU period
• Settlement Accuracy
• More granular data improves profiling accuracy
• Systems
• Currently supported

4
Demand Response Wholesale Settlements

• Daily kWh Consumption by Calendar Day
• Enables more accurate wholesale settlements for
  demand response programs by using daily
  consumption to scale profiles
• Limitations to demand response programs
• Usage data profiled for each day
• Settlement Accuracy
• More granular data improves profiling accuracy
• Accounts for days with no usage
• System Implications
• Texas Set
• IT infrastructure (processing storage)

5
Demand Response Wholesale Settlements

• Hybrid Daily kWh Consumption by Calendar Day
  using demand response profile
• Enables more accurate wholesale settlements for
  demand response programs by using daily
  consumption to scale profiles
• Limitations to demand response programs
• Usage data profiled for each day
• Settlement Accuracy
• More granular data improves profiling accuracy
• Accounts for days with no usage
• System Implications
• Texas Set
• IT infrastructure (processing storage)

6
Demand Response Wholesale Settlements

• Daily kWh Consumption TOU
• Enables wholesale settlements for demand response
  programs that control usage during the defined
  TOU schedule(s)
• Limitations to demand response programs
• Granularity of TOU periods
• Maximum of 4 TOU periods
• Usage data profiled by TOU period
• Settlement Accuracy
• More granular data improves profiling accuracy
• System Implications
• Texas Set
• IT infrastructure (processing storage)

7
Demand Response Wholesale Settlements

• Hourly Data
• Enables wholesale settlements for demand response
  programs that control usage during any hour
• Limitations to demand response programs
• Hourly usage data profiled to 15 minute period
• Settlement Accuracy
• More granular data improves profiling accuracy
• System Implications
• Texas Set
• IT infrastructure (processing storage)

8
Demand Response Wholesale Settlements

• 15 Minute Data
• Enables wholesale settlements for demand response
  programs that control usage during any 15 minute
  interval
• Limitations to demand response programs
• None
• Settlement Accuracy
• Data submitted same as settlement interval
• System Implications
• IT infrastructure (processing storage)
• Significant degradation to ERCOT system
  processing at 50,000 IDRs
• Estimated Maximum number of IDRs ERCOT current
  systems can support for processing - 200,000
  IDRs

9
Demand Response Wholesale Settlements

• Event Driven (15 minute IDR)
• Enables wholesale settlements for demand response
  programs that control usage during the event
• Limitations to demand response programs
• Non-event usage data profiled
• Settlement Accuracy
• Data submitted same as settlement interval for
  some time periods (improves accuracy)
• Most usage profiled based on read cycle (same as
  today)
• System Implications
• Texas Set
• IT infrastructure (processing storage)

10
Demand Response Wholesale Settlements

• Sample Model
• Enables wholesale settlements for demand response
  programs during any 15 minute interval
• Limitations to demand response programs
• Demand response impacts must be defined
• Settlement Accuracy
• Data profiled using representative shape
• System Implications
• IT infrastructure (processing storage)

11
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