NEET Work Group 6 Update: BPA Demand Response

1. NEET Work Group 6 Update: BPA Demand Response April 21st Karen Meadows Pam Sporborg

2. Why is BPA Interested in Demand Response? • Continued load growth is leading to a forecasted capacity shortage in ~2013. • Wind integration, fish operations, and other operational constraints are limiting the flexibility of the hydro system to meet peak demand. • Demand Response is a proven, low-cost resource that can help BPA meet projected Capacity Constraints.

3. Capacity Constraint Scenarios

4. BPA Demand Response Guiding Principles • Collaboration & Partnership: BPA will work collaboratively with our Public Utility Customers to develop and implement Demand Response pilots and programs • Balance Cost and Risk: BPA will work to implement cost-effective, least-risk DR solutions. However, BPA recognizes that this may frequently require trade-offs between these two goals. • Regional Leadership Role: BPA will lead by example in the region, though information sharing, collaborative research efforts, and demonstrating state of the art technology. This includes integrating Demand Response into the Smart Grid. • Reliability & Flexibility: BPA’s Demand Response resource will primarily aim to improve system reliability and enhance flexibility. • Environmental Stewardship: BPA will consider the environmental impacts of each DR Option.

5. BPA Activities in Demand Response • Past Pilot Projects include: • Non-Wires Solutions Pilot (direct load control, back up generation) • Irrigation Pilot • Ashland Pilot (Direct Load Control) • Demand Exchange (Wholesale) • Demand Response Potential Assessment • Developed DR Supply Curves that will be inputs into the Resource Program • Planned DR Activities • Research Action Plan developed • Pilot programs to test impacts and costs of various DR strategies to meet Capacity Constraint Scenarios • Pilot programs to build regional capability

6. Planned Pilots • 2009 Residential Direct Load Control • 2009 Open ADR for large commercial • 2010: Dynamic Pricing Pilot • 2010: Industrial Pilot • Considering Irrigation and Wind Integration Pilots

7. Open-Auto Demand Response Technology Demonstration • Partnership with Lawrence Berkley National Labs and Seattle City Light • First test of Open-ADR for winter peaks • Open-ADR technology interfaces with the building’s Energy Management System to enter a custom, pre-programmed shed when notified • Tested five commercial sites with four events per site, including one Day-Of event • Buildings shed 8-19% of total load for morning 7-10am peak, with little to no rebound

8. Open ADR Example Event: Seattle Municipal Tower

9. Open-ADR Building Performance *Note: Target T0637 data not downloaded from meter in time for presentation. Results expected to be similar to Target T1264.

10. Residential DLC Pilot • Project Overview: • Work with 3-4 Utilities • Leverage investments in Automated Meter Reading (AMI) systems • Control both hot water heaters and thermostats. • Address both summer and winter peaks • Utilize temperature setback instead of duty cycling • 100-300 homes in first year; 700-2,500 homes in second year • Project Goals: • Develop strategies for BPA and utilities to work collaboratively to achieve demand response in the Northwest. • Test integrating demand response technologies with AMI systems in the residential sector through a DLC program. • Test recruitment strategy, customer education, and persistence • Test costs and impacts (kW) for each capacity constraint

11. Next Steps • Expand Residential DLC Pilot • Continue testing Open-ADR technology • 2010: Plan & launch Dynamic Pricing Pilot • 2010: Plan & launch Large Commercial & Industrial Pilot

12. Where are opportunities for Regional Collaboration? • Value in sharing ideas and results across regional utilities • Leverage investments in research and pilots • Share results, lessons learned • Forum to bring in experts from other regions