California Statewide Pricing Pilot ------------------- Lessons Learned

1
California Statewide Pricing Pilot---------------
----Lessons Learned
NARUC Joint Meeting Committee on Energy Resources
and the Environment Committee on Electricity
Roger Levy Demand Response Research Center
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Demand Response the Vision
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California Statewide Pricing Pilot
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State Demand Response Objectives

• Integrate energy efficiency with demand response
• Economic Response Let the customer decide.
• Reliability Response Provide the utility with
  control.
• All customers not just a select few.

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Summary Conclusions
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Rate and Technology
Residential Load Impacts
Critical Peak Impacts By Rate Treatment
Hottest Critical Peak Day
Average Critical Peak Day Year 1
47.4
50
Critical Peak Variable With Automated Controls
40
34.5
Critical Peak Variable With Automated Controls
30
Peak Load Reduction
20
12.5
Critical Peak Fixed
10
4.1
0
Time of Use TOU
CPP-F
CPP-V
CPP-V
Source Statewide Pricing Pilot Summer 2003
Impact Analysis, Charles Rivers Associates,
August 9, 2004, Table 1-3, 1-4,.
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Rate and Technology
Residential Load Impacts
Critical Peak Impacts By Rate Treatment
Critical Weekday Inner Summer Year 2
Source Impact Evaluation of the California
Statewide Pricing Pilot, CRA, March 16, 2005,
Table 1-1, 4-3.
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Residential SPP Impacts
Consistency
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Incentives
Residential SPP Impacts
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Demographics
Residential SPP Impacts
Percent Reduction in Peak Period Usage (CPP-F)
Year 1
Source Statewide Pricing Pilot, Summer 2003
Impact Analysis, CRA, August 9, 2004, Table 5-9,
p.90
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Demographics
Residential SPP Impacts
Percent Reduction in Peak Period Usage (CPP-F)
Year 2
20
18
16
14
12
Percent Reduction
10
8
6
4
2
0
High vs. Low User
Source Statewide Pricing Pilot, Summer 2003
Impact Analysis, CRA, August 9, 2004, Table 5-9,
p.90
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Rate and Technology
Small C/I Load Impacts
Critical Peak Impacts
Enabling Technology Impacts
14
12
10
8
Percent Reduction
6
4
2
0
13
SPP Customer Rate Preferences
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Contact Information
Demand Response Research Center (DRRC)
Mary Ann Piette, Director Phone 510
486-6286 email mapiette_at_lbl.gov Roger
Levy Program Development and Outreach Phone
916-487-0227 email RogerL47_at_aol.com
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Demand Response Defined.

• Demand Response applies rate designs, incentives
  and technology to induce changes in customer
  demand. 1
• Demand Response is the action taken to reduce
  load in response to2
• Contingencies that threaten the supply-demand
  balance and/or
• Market conditions that raise supply costs.

1. CPUC definition, Demand Response Settlement,
   Draft Decision 03-06-032, March 2006
2. Demand Response Research Center, presentation,
   December 2005.

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Residential SPP Rates
Rate Design
CPP Tariff- (high)
TOU Tariff- (high)
80
0.7336
70
60
50
Existing Rates Avg. Summer Price 13.36 /kWh
40
Cents per kWh
30
0.2596
0.2336
20
0.1026
10
0.0886
Maximum 75 hrs/yr
1,500 hrs/yr
7,260 hrs/yr
1,425 hrs/yr
7,260 hrs/yr
0
200-700pm Weekdays
Other Weekday Weekend hours
200-700pm Weekdays
Other Weekday Weekend hours
Dispatched 200-700pm
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SPP Bill Impacts
Average Bill Impacts (summer / winter 2003)
Commercial / Industrial
Residential
CPPV CPPF TOU Info Only
Participants () 71.1 73.7 70.0 79.0
Average Monthly Savings () 5.1 5.5 4.5 5.4
Average Monthly Savings () 53 35 29 19
CPPV TOU
80.3 58.2
12.2 9.6
1,521 869
Bill Savings
Participants () 28.9 26.3 30.0 21.0
Average Monthly Increase () 4.0 6.2 3.0 10.0
Average Monthly Increase () 39 44 30 9
19.7 41.8
5.0 10.0
224 600
Bill Increases
Source Statewide Pricing Pilot, Shadow Bill
Results, WG3 report, June 9, 2004.