Getting Ready for the Summer of 2005 Responding to the Call

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Getting Ready for the Summer of 2005
Responding to the Call

• Association of Energy Engineers SCC
• June 9, 2005
• Mark S. Martinez
• Manager, Program Development- SCE

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Introduction

• Summer 2005 Resource Forecast
• Supply and Demand Why it Matters
• Demand Response Tariff Programs and Services
• What You Can Do to Be Prepared

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Supply Overview

• Potential supply concerns for 2005-06
• Addressed through a combination of
• Increased planning reserves (may defer some
  retirements)
• New transmission development that has occurred
  and will continue to occur
• Accelerated DSM program delivery
• Expanded Demand Response Programs that are
  available
• SCE has procured more than 115 of the resources
  needed to meet the expected peak demand of its
  bundled service customers under normal (1-in-2)
  weather conditions, meeting the CPUCs Resource
  Adequacy Requirement a year early

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SCE Resources Exceed 115 of Peak Demand
One Year Ahead of Schedule

• In January 2004, the CPUC adopteda 15 minimum
  reserve margin to be implemented in July 2008
• In October 2004, the CPUC accelerated
  implementation to summer 2006
• SCE has achieved a reserve margin greater than
  15 in 2005

Source SCE presentation to the Senate Energy,
Utilities, and Communications Committee on Feb.
22, 2005
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But Electric Growth is Inevitable
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Patterns of Daily Peak Demand
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When Demand Meets Supply
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Record Loads Summer 2004

• 7 record setting days in 2004
• July 19 44,042 MW
• July 20 44,330 MW
• July 21 44,360 MW
• August 10 44,497 MW
• August 11 44,872 MW
• September 7 45,165 MW
• September 8 45,597 MW
• We hit loads in 2004 that were not forecasted
  until 2005 and the State did not have
  exceptionally high temperatures!
• The previous record peak demand of 43,609 MW, set
  July 1999, stood for four years. (SMUD load
  subtracted from this total)

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What is Demand Response?
kW Demand
Normal energy
Demand response event
Clipping the peak, but only when we need to about
12 times a year
0
0
6
12
18
24
Time of Day
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The relationship between weather conditions,
demand, and price of electricity
Price on a hot day
Price of electricity
Price on a mild day
Supply
Demand for electricity
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Lights OutDemand Exceeds Supply
Keeping the Lights On Price After Demand
Response
Keeping the Price ReasonablePrice After
Additional Demand Response
Demand is greater than supply outage
Demand after demand response
Demand after additional demand response
Price of electricity
Supply
Demand for electricity
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Potential Adverse Conditions for 2005

• Higher than expected economic growth.
• Lower than expected imports of power.
• Regional heat storm over three days
• Reduced hydro resources.
• Higher than expected subtrans congestion.
• Possible closures due to forest fires.

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Types of ISO Electric Notices

• Alert (called a day ahead)
• Warning (called a day ahead)
• Emergency Notices

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SCE Energy Programs and Services

• Benefits of Demand Response Programs
• Reduce your peak electrical/operating costs
• Earn financial incentives and/or other benefits
• Reduce the possibility of power shortages for you
  and those in your community during peak power
  demand periods
• Help the environment (by reducing production from
  the least-efficient power plants)
• In addition, you can keep your peak low all year
  long with SCEs Energy Efficiency Programs

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Helping Customers Meet Their Business Needs

• To help customers achieve savings and added
  reliability for their business SCE provides a
  broad portfolio of tools for customers to save
  energy and money

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Demand Response Programs

• Price Response Programs
• Day-ahead Notification
• Critical Peak Pricing (CPP), Demand Bidding
  Program
• Reliability Programs
• Day-of Notification
• Interruptible Programs
• Technical Assistance/Technical Incentives
• No-cost engineering services and rebates for
  hardware

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Demand Response Price Response Programs

• Critical Peak Pricing (CPP) Programs provide
  reduced on and mid-peak rates throughout the year
  during all non-CPP periods, in exchange for
  reductions in power during 12 CPP summer events
  (Bill protection available for new enrollees)
• CPP-VCD (Volumetric Charge Discount, Formerly
  CPP-L)
• Available to customers gt200 kW
• Two peak CPP periods 1200 300 PM and 300
  600 PM, with tiered charges
• One-day ahead notice
• CPP-GCCD (Generation Capacity Charge Discount,
  New)
• Available to customers gt500 kW
• Single peak CPP period 1200 600 PM
• Two-day ahead notice

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Demand Response Price Response Programs (contd)

• Demand Bidding Program (DBP) Participants
  voluntarily bid in a day ahead kW demand
  reduction and receive a per kWh credit for actual
  power reductions during the DBP event
• Available to customers with one account over 200
  kW
• Bids as low as 50 kW for single account or 200 kW
  for aggregated accounts
• Triggered by
• ISO Alert
• System Load Forecast of 43,000 MW
• Payment at the day ahead forecast price plus 10
  cents per kWh up to 35 cents per kWh or the day
  ahead price (whichever is higher)
• Less ISO Ex-Post price for DA

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Demand Response Reliability Programs

• Base Interruptible Program (BIP) Monthly bill
  credit for reducing electricity usage to a
  predetermined Firm Service Level during an event
• For customers 200 kW and above
• Penalties apply for failure to reduce usage
• New customers who sign up by June 5 are eligible
  to opt out in November 2005

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Demand Response Reliability Programs (contd)

• California Demand Reserves Partnership
  (Cal-DRP) A state-run program available to
  direct access and bundled service business and
  agricultural utility end users who can provide
  demand reductions in exchange for a payment
• For more information go to www.caldrp.com

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Demand Response Reliability Programs (contd)

• Large Power Interruptible (I-6) Monthly credit
  for reducing their electricity usage to a
  predetermined Firm Service Level during an event
• For customers 500 kW and above
• Penalties apply for failure to reduce usage
• Closed to new customers except those new to SCE
  territory or adding new load

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Demand Response Reliability Programs

• Agricultural Pumping Interruptible (AP-I)
  Monthly credit to eligible agricultural and
  pumping customers willing to interrupt power
  usage by allowing SCE to temporarily shut off
  their pumping equipment during an event
• For customers with power demand of 50 kW or
  greater, or with 50 hp or greater of connected
  usage

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Demand Response Technical and Technology
Assistance Incentives

• Financial incentive program that provides funding
  to aid in achieving demand response reductions
• Free initial cursory audits by SCE personnel
• 100 incentive for technical assistance in
  evaluating demand response capability by
  professional engineers
• 100 /kW of load reduction for cost for equipment
  to respond to demand response signals
• Example equipment might include
• Smart thermostats or energy management systems
• Remote switches or dual-level lighting
• Software upgrades or addition of control points

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2005 Nonresidential Energy Efficiency Programs

• Statewide Programs
• Standard Performance Contract (SPC)
• Express Efficiency
• Savings By Design (New Construction)
• Energy Audits
• Contact your account representative or visit
  www.sce.com for details

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Whats on the Horizon?

• Demand Response Community Partnerships
• Pilot programs with the City of Ontario,
  BOMA-GLA, and County of Los Angeles
• These will deliver demand response awareness and
  education through non-traditional communities
• Partners who share the vision of a demand
  responsive community will help SCE achieve that
  goal

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Emerging Markets Technology Showcase

• As part of the Technical Incentives program, SCE
  is hosting a Technology Symposium on Demand
  Response
• Designed as a forum to show customers how to
  procure the technology needed to be demand
  responsive
• Date July 22, 2005
• Location Pacific Palms Resort (Industry Hills)
• Agenda Key Policy and Industry speakers, vendor
  showcase, sponsored by CEC, CPUC, SCE, partners
• Duration 800am 300pm

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Summary

• Your efforts to help reduce SCEs peak can help
  us avoid curtailments and rotating outages for
  all customers, plus can benefit your business
• Understand your business and how you use
  electricity
• www.sceenergymanager.com
• Develop a demand response plan now
• Conduct an audit, or have SCE provide one
• Procure the materials needed to automate your
  facility
• Participate in 2005 Demand Response Programs

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Helpful Websites

• Southern California Edison
• www.sce.com
• SCE Energy Centers
• www.sce.com/RebatesandSavings/EnergyCenters
• SCE Demand Response and Energy Efficiency
  Programs
• www.sce.com/RebatesandSavings/LargeBusinesses
• SCE Demand Response Programs Home Page
• www.sce.com/DRP
• Savings By Design
• www.savingsbydesign.com
• California Power Authority Demand Reserves
  Partnership
• www.caldrp.com