NARUC/FERC Collaborative Dialogue on Demand Response

1
NARUC/FERC Collaborative Dialogue on Demand
Response

• July 15, 2007
• Deb Sundin
• Xcel Energy

2
Xcel Energy Service Territory
Northern States Power Company- Minnesota
Northern States Power Company- Wisconsin
Public Service Company of Colorado
3.3 Million Combined Electric and Gas Customers
in 8 States
Southwestern Public Service
3
Xcel Energy DR Summary
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Xcel Energy DR NSP System

• Historic retail load management business tariffs.
• Majority of controllable load from peak control
  tariff.
• Can save up to 60 on demand charges, paid
  throughout the year.
• Options for Maximum annual hours of control are
  300, 150 and 80 hours per year. One-hour notice
  typical.
• 8/ kW or 10/ kW penalties are charged for
  violating control periods.
• Direct load control
• Primarily residential cycled air conditioning.
• Average 10-15 days of control June through
  September.
• Customers receive a bill discount for
  participating and are not notified prior to
  control.

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MN Summer System Peak Day
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Xcel Energy DR NSP System

• Built over the last 30 years.
• Built to control NSPs system peak load.
• DR resources are actively integrated into
  utilitys resource planning process avoids
  significant amounts of generation
• Discounts based on avoided cost of CT at time of
  development.

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Xcel Energy DR PSCO System

• Interruptible Service Option Credit
• Strict qualifications requirements limit free
  riders. Must have 500 kW of controllable load
  during each summer month.
• Up to 67 savings on demand charges paid
  throughout the year.
• Control periods may occur at any time for
  Economic, Capacity, Contingency or Reliability
  reasons.
• Options for maximum annual hours of control are
  200, 160, 80 and 40 hours. Notice options of lt10
  Minutes, 1 hour or 8 hours.
• Direct load control
• Residential cycled air conditioning units.
• Average 10-15 days of control June through
  August.
• Customers receive a bill discount for
  participating and are not notified prior to
  control.

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Xcel Energy DR PSCO System

• CI customers previously on interruptible tariffs
  received discounts, but infrequently called to
  control
• Redesigned program to provide customers options
  that conformed to utilitys economic /
  reliability needs
• Interruptible Service Option Credit (ISOC)

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NSP Retail DR Programs vs. Future MISO Wholesale
DR Efforts

• MISO is currently looking at wholesale DR.
• Developing an emergency program
• Value propositions of DR are dynamic and can be
  impacted by
• Capacity vs. energy
• Plant deferral economics vs. near term price
  mitigation
• Control response time (5 minutes 2 hours)
• End-use customer control requirements vs.
  customer payment
• Where existing resources are substantial (e.g.
  Minnesota), should be careful not to erode
  resource built over decades
• Ultimately, goal must be to ensure that customers
  receive least cost (long run) resources,
  consistent with other priorities (e.g.
  environment, reliability, etc.)