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Peak Time Rebate (PTR)

This presentation discusses the load impact estimates from Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E) for the Peak Time Rebate (PTR) program. It focuses on the assumptions behind kW load reduction for active program participants, comparing ex-post load impacts from SDG&E with SCE's prospective estimates. The analysis addresses differences in CAC penetration, weather conditions, customer awareness, and pricing impacts. The resulting load impact figures and methodologies provide essential insights into program efficacy and participant responsiveness.

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Peak Time Rebate (PTR)

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  1. Peak Time Rebate (PTR) DRMEC Load Impact Workshop Alan Wong 7/25/12

  2. PTR Program Background • PTR is the default incentive for residential customers with an Edison Smart Connect meter. • 4-hour PTR event period from 2 p.m - 6 p.m., weekdays, excluding holidays. • Unlimited year-round day-ahead (Economic/Price) events. • Incentive paid based on customer’s reduced consumption during an event compared to their calculated baseline (average of 3 highest out of last 5 days). • No penalty for non-performance.

  3. 2012-2014 Load Impact Estimates

  4. Comparison of SDG&E Ex Post and SCE Ex Ante PTR Load Impacts Dan Hansen Christensen Associates Energy Consulting DRMEC Spring Workshop July 26, 2012

  5. Purpose of the Presentation • SCE’s PTR business case includes an assumption regarding the kW load reduction for “active” program participants • In response to a request from the CPUC, we compared this result to the PY2011 ex post load impacts estimated for SDG&E • SDG&E ex post LI was 0.056 kW per enrolled customer • SCE assumes 0.229 kW per active (or aware) customer • Results indicate that SCE’s assumption is consistent with SDG&E’s estimate once an apples-to-apples comparison is made

  6. Differences between SCE and SDG&E Circumstances • Higher CAC penetration rate in SCE’s territory (62% versus 36%) • Hotter weather for SCE 1-in-2 August peak day versus SDG&E 9/7 event day • Lower average rate on non-event days for SCE customers (therefore a higher event to non-event hour price ratio) • Differences in customer awareness rates • Differences in customer usage levels

  7. Adjustment Methods:CAC Penetration Rate and Weather • Started with the percentage load impact from SDG&E’s September 7th event, which was 4.5 percent • Used CPP elasticity equation estimated in the SPP to adjust for • CAC penetration rate • Temperature conditions • Simulated elasticity of substitution for SCE’s and SDG&E’s event, adjusted %LI by the ratio of the two, which was 1.356 : 1

  8. Adjustment Methods:Awareness Rate and Price • The %LI is adjusted downward to adjust for differences in customer awareness • Study of SDG&E program found 63% • SCE assumes 50% • The %LI is adjusted upward to adjust for price differences • SCE customers face a higher event to non-event price ratio and are more price responsive (per SPP exercise described earlier)

  9. Adjustment Methods:Customer Size • After all adjustments, the percentage load impact is 7.0 percent (versus the 4.5 percent LI for SDG&E) • This is multiplied by the average event-hour usage for SCE customers of 1.84 kW • The resulting load impact is 0.128 kW per enrolled customer

  10. Adjustment Methods:Customer Basis • Convert the 0.128 kW per enrolled customer load impact into a per aware customer load impact • 0.128 kW per enrolled customer / 50% awareness rate = 0.256 kW per aware customer

  11. Comparison of Results • Recall that SCE assumes a load impact of 0.229 kW per aware (or active) customer • Our methods produced an estimated load impact of 0.256 kW per aware customer • This is slightly higher than SCE’s assumed value • SCE proposed to proceed with their initial assumption, which is a more conservative estimate of load impacts

  12. Questions? • Contact – Dan Hansen, Christensen Associates Energy ConsultingMadison, Wisconsin • Danh@CAEnergy.com • 608-231-2266

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