Idaho Power Company Demand Response

1
Idaho Power CompanyDemand Response Dynamic
Pricing Programs

• PNDRP December 5, 2008
• Darlene Nemnich
• Pete Pengilly

2
Overview of Idaho PowerDR and Pricing Programs

• Demand Response Programs
• Residential A/C Cycling 20,000 customers, -20 MW
  max
• Irrigation Peak Rewards, 897 service points, -35
  MW max
• Redesign in 2009
• In Design - DR Aggregator for commercial
• Pricing Programs
• Mandatory TOU for all industrial customers
• Proposed mandatory TOU for all large commercial
  customers
• Residential CPP and TOU pilot 2005-2006, ongoing
  to-date
• AMI
• 2009 will be year one of three-year deployment

3
Overview of Idaho PowerDR and Pricing Programs

• Demand Response Programs
• Residential A/C Cycling 20,000 customers, -20 MW
  max load
• Irrigation Peak Rewards, 897 service points, -35
  MW max load
• In Design - DR Aggregator for commercial
• Pricing Programs
• Mandatory TOU for all industrial customers
• Proposed mandatory TOU for all commercial
  customers
• Residential CPP and TOU pilot 2005-2006, ongoing
  to-date
• AMI
• 2009 will be year one of three-year deployment

4
Energy WatchResidential CPP Pilot-Ongoing

• Limited to Emmett, Idaho customers
• Maximum 10 event days, June 15 August 15
• Generally, no more than two consecutive days will
  be called
• Critical peak hours 500 p.m. to 900 p.m.
  weekdays
• Rates
• 20 /kWh during critical peak hours
• 5.7783 /kWh flat rate all other hours of the
  year
• Customer notification
• Email sent by noon day-ahead of event
• Email notification initiates automatic calling to
  all customers on program
• Customers must be contacted before 400 the day
  before event
• This process also updates website

5
Time-of-DayResidential TOU Pilot-Ongoing

• Limited to Emmett, Idaho customers
• TOU rate in effect June 1 August 31
• Time blocks and current rates
• On-Peak 100 pm to 900 pm WD 8.8683 /kWh
• Mid-Peak 700 am to 100 pm WD 6.5148 /kWh
• Off-Peak 900 pm to 700 am WE/Holidays 4.8074
  /kWh
• Flat rate September-May 5.7783 /kWh

6
Time-of-Day ProgramRates Differentials
7
Customer SolicitationCurrent process

• Send postcard/bill insert to eligible customers
• Send thank-you letter to existing customers
• Advertise in local paper
• Hold public event in person to answer questions

8
Research PlanTime-of-Day and Energy Watch

• Data Analysis
• RLW Analytics 2006 2007
• Bill Analysis
• Energy Consumption / Peak Usage Analysis
• Temperature Usage Correlation
• Customer Surveys
• 2005 Northwest Research Group, Boise Idaho
• 2006 - Clearwater Research, Boise Idaho
• 2007-2008 Ongoing reporting

9
Program Participation
10

• Data Analyses

11
TOD Energy Usage Results
12
TOD Energy Usage Results
- 2006
13
EW Energy Usage 2005
14
EW Energy Usage - 2006
15
Load Analysis Results
16
EW Event Days 2005Temperature Usage Correlation
17
EW Event Days 2006Temperature Usage Correlation
18
Weather Regression for the Energy Watch Program
T-value of 1.82 and a p-value of 0.078. Reduction
0.627380.000762Temperature
T-value of 5.55 and a p-value of 0.0001 Reduction
-1.090890.02611Temperature
EW Reduction vs. Temperature
2006
2005
19
EW Energy Usage 2007Average event showing each
event
20
EW Energy Usage 2007Day before, day of, day
after
21
EW Energy Usage 2007Two consecutive days
22

• Customer Survey Results

23
Customer Survey Results
24
Customer Survey Results
25
Bill Analysis Results
26
Customer Survey Highlights - 2005

• The most effective means to provide information
  is direct mail or bill stuffer
• Those who did not participate indicated they felt
  the programs were not convenient or would not
  save enough electricity, also they did not want
  to change when they used electricity and that
  there was not enough incentive to participate
• In order to acquire more customers for these
  programs, the utility will have to show the
  benefits of participating and provide messaging
  that customers will not lose control

27
Customer Survey Highlights - 2006

• Satisfaction is tied to the sense that their
  electricity bill decreased and that they were
  conserving energy
• Most participants indicated they changed the way
  they used electricity
• Less than half of all participants and less than
  one third of Energy Watch participants have
  central air conditioning
• About half of the participants are over the age
  65
• Most participants have been Idaho Power customers
  more than 25 years

28
Lessons Learned

• Labor Intensive
• Call Center
• Meter Support
• Corporate Communications
• Customer Satisfaction
• Automated System(s) for Customer Notification
• Need infrastructure in place
• Need constant marketing/reinforcement
• More and easier near real time feedback to
  customers
• No clear customer elasticity
• Review program design
• Hours
• Rates

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• Questions/Comments