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Demand-Side Management Influence on Reliability NERC Demand-Side Management Task Force (DSMTF) Rick Voytas, Chair November 2007 Presented To The U.S. Demand Response Coordinating Committeee National Town Hall Meeting Washington, D.C. June 3, 2008. DSMTF Initial Charter.

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DSMTF Initial Charter

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Demand-Side ManagementInfluence on ReliabilityNERCDemand-Side Management Task Force (DSMTF)Rick Voytas, Chair November 2007Presented To The U.S. Demand Response Coordinating CommitteeeNational Town Hall MeetingWashington, D.C.June 3, 2008

dsmtf initial charter
DSMTF Initial Charter
  • Review Current Data Collection methods.
  • Review Energy Efficiency influence on reliability
  • Evaluate existing DSM reliability performance metrics.
  • Discussion and summary of the above tasks integrated into a White Paper for review by the
    • Resource Issues Subcommittee
    • Operating & Planning Committee at their December 3-4, 2007
  • NOTE: Subsequent NERC task force formed to delve into data collection metrics
dsm nerc s data collection
DSM & NERC’s Data Collection

Demand Side Management (DSM)

Demand Response

Energy Efficiency





Time-Sensitive Pricing






Critical Peak Pricing

Demand Bidding & Buyback

Direct Load Control

Spinning Reserves


Real Time Pricing

NERC Currently Collects Data

Interruptible Demand

Non-Spin Reserves

System Peak Response Transmission Tariff

Critical Peak Pricing w/Control


Phase 2 Areas of Interest

Load as a Capacity Resource

Phase 1 Areas of Interest

avoided capacity
Avoided Capacity

Capacity Equivalence

  • What is Capacity Equivalence (CE)?

Capacity Equivalence is the true capacity value of a program (DSM, DR, wind, hydro, etc)

Bottom line: 1 MW of DSM ≠ 1 MW of Gas ≠ 1 MW of Coal Generation

  • Why?

The calculation of the amount of reserve MW at time of system peak may not provide an indication of the capacity, or load relief, that will be available throughout the entire year to meet customer requirements.

  • Two important properties:
    • Determined at system level with adjustments for reserve margin and distribution losses
    • Varies according to the pattern of load relief afforded by the potential program
avoided capacity1
Avoided Capacity

Capacity Equivalence

Example using a DSM program that relies on AC reduction:

short reserves!

short capacity!

avoided capacity2
Avoided Capacity

Reserve Margin

  • History of Reserve Margin
    • Earlier years of utility, “percentage reserve” evolved as the means for communicating the “reliability” of a utility system
    • “Percentage reserve” at system peak established an amount of capacity in MW that would be available to the system at peak and throughout the year
    • Problem: The amount of capacity actually available at any point in time would be reduced due to random forced outages and scheduled maintenance
    • In 1978, many reliability councils adopt Loss Of Load Probability (LOLP) methodology
    • Most reliability councils adopted the industry standard of .1 day per year (LOLP = .1) .1 day/year = 1 day in 10 years = one day in 2500 workdays
    • Using a LOLP =.1, minimum reserve margins can be calculated