Schedule Experimental Energy Reduction EER updated 2005

1
Schedule Experimental Energy Reduction (EER)
updated 2005
Note This program is available to qualified
participants within the EntergyArkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY
2
The Experimental Energy Reduction Program
(EER) What Is The EER Program, and Why Is
Entergy Pursuing This?

• The EER Program is designed to enable the market
  mechanics necessary to permit a broader range of
• customers to participate in a curtailment
  program.
• The EER Program provides an economic incentive to
  qualified customers to release Entergy from its
  obligation
• to supply during periods of highly volatile
  market prices, or when supply is severely
  constrained (lt 15 days).
• EER offers another layer of protection for
  Entergys customers against the risks of exposure
  to higher fuel costs.

Note This program is available to qualified
participants within the Entergy Arkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY
3
The Experimental Energy Reduction Program
(EER) Program Features

• The program hours are the 4 hour "super peak in
  summer and winter
• 2PM - 6 PM CDT May September
• 5 PM 9 PM prevailing time January April
  October December
• The Customer must participate all 4 hours and at
  the same pledged demand
• during each hour (minimum pledge is 150 kW).
• Entergys posted price will be the same for all
  4 hours.
• Market Replacement Charges (penalties at a rate
  of 2 X posted prices) apply
• for each kW that is 90 below pledged demand,
  measured during each
• hourly interval.
• Entergy provides the opportunity for a waiver
  from Market Replacement Charges,
• through a Relief From Operational Failure
  provision (2 waivers per program period).
• The waiver applies to the entire four hour
  period, and if exercised the customer also
• forgoes the credit.
• There are Maximum Energy Reduction Payments of
  130 of pledged

Note This program is available to qualified
participants within the Entergy Arkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY
4
The Experimental Energy Reduction Program
(EER) How the EER Program Operates

• Entergy implements EER by posting energy prices
  on a web page by 800 AM,
• day-ahead of the proposed curtailment. The
  customer is notified to review the offer
• via email, phone call, or fax.
• The customer elects participation by pledging
  their demand reduction for all
• four hours using the web interface, and must make
  the commitment by
• 1100 AM day-ahead.
• Entergy provides confirmation no later than
  1000 AM, day-of.
• The energy reduction is measured by comparing
  the previous normal
• business day interval metering data within the
  program hours with the day-of
• interval metering data for those same hours (200
  PM - 600 PM or 500 PM 900 PM).
• Entergy will calculate the energy reduction
  credit / debit and will post the net
• result on the customers bill, usually within the
  next available billing cycle.

Note This program is available to qualified
participants within the Entergy Arkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY
5
The Experimental Energy Reduction Program
(EER) Example - Market Replacement Charges and
Maximum Payment Provisions
EER Program Example Illustration
Assumption Customer Pledges 500 kW Reduction
Variables
Pledged or
Minimum Hourly
Maximum Hourly
EMO posted price
Curtailable Demand
Energy Reduction
Energy Reduction
0.50
500
90
130
Results
hour 1
hour 2
hour 3
hour 4
Prior Normal Business Day hourly kW
1200
1300
1250
1275
Day Of hourly kW
850
750
750
550
Net Hourly Energy Reduction
350
550
500
725
Minimum Energy Reduction (90 of Curtailable
Demand)
450
450
450
450
Maximum Energy Payment (130 of Curtailable
Demand)
650
650
650
650
Calculation
Market Replacement
Net
Credit Calculation
Credit Amounts
Penalty Calculations
Charge
Results
hour 1
350 kW X .50
175.00
100 kW X (2 X .50)
100.00
75.00
hour 2
550 kW X .50
275.00
none
0
275.00
hour 3
500 kW X .50
250.00
none
0
250.00
hour 4
650 kW X .50
325.00
no credit gt 130
0
325.00
Total Credit
925.00
Customer fails to meet the minimum hourly
energy reduction of 450 kW (90 of Pledge) by 100
kW. Incurs a penalty.
Customer exceeds the maximum hourly energy
payment (130 of Pledge or 650 kW) by 75 kW,
receives credit only for maximum allowable.
Note This program is available to qualified
participants within the Entergy Arkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY
6
The Experimental Energy Reduction Program
(EER) Example - Market Replacement Charges and
Maximum Payment Provisions
Customer Incurs penalty based on 100 kW shortfall
Customers maximum payment is 130 of pledged
demand, forgoes 75 kW
Note This program is available to qualified
participants within the Entergy Arkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY
7
The Experimental Energy Reduction Program
(EER) Minimum Criteria To Participate

• Customers wishing to participate must be willing
  to execute an Enabling Agreement with Entergy.
• Customers must have interval metering at their
  site, or be willing to pay to have interval
  metering installed.
• Customers will be asked to participate in a fire
  drill to determine the level of operational
  flexibility as needed to reduce electric loads by
  a minimum of 150 kW during all participating
  hours prior to an actual curtailment.
• Participating accounts must be firm (i.e.,
  interruptible load is not eligible to participate
  in EER)
• The customer must have internet access, and be
  willing to pay any and all associated fees for
  this service.
• If back-up generation is to be used, the customer
  must comply with Entergy distribution standards
  for wiring configuration.

Note This program is available to qualified
participants within the Entergy Arkansas, Inc.,
Entergy Gulf States (LA) Inc., and Entergy
Louisiana, Inc. jurisdictions ONLY