Demand Response and Resource Planning The Utility Perspective

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Demand Response and Resource PlanningThe
Utility Perspective

• PLMAS FALL 2003 CONFERENCE
• DEMAND RESPONSE AND RESOURCE PLANNING
•  
• SOUTHGATE TOWERS HOTEL, NEW YORK CITY
• September 8-9, 2003

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LIPA Demand Response Programs

• Peak Reduction Program contracted load
  curtailment CI
• LIPAedge Internet-based program with Thermostat
  Actuated curtailment
• Watts Going Down Voluntary curtailment
  Residential/SM Coml.

PRP
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What Are the Issues?

• Are Utility and Customer Expectations the
  Same?
• What Motivations are at Work with Customers
  enrolled in Demand Response Programs?
• How can Utilities Maximize Customer
  Participation?

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Expectations

• Utility
• Customer will deliver to the contracted load
  limits
• System Operators will recognize Response Program
  as Load Modifier
• Minimum administrative resource is required

• Customer
• Participation will NOT disrupt real Business
• Adequate Time will be provided prior to call
• Utility will provide Assistance in Response
  Planning
• Fair compensation will be made

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What does it Take???
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Community

• The Primary Motivating Factor
• Allows a Sense of Participation in protecting the
  Economic Development Engine
• Recognition as a Participant is the Key

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Communication

• Requires Multiple Means to be Effective
• Minimum 4 Hour Prior to Event (Day Before
  most Requested by Customers)
• Post-Event required for continued Participant
  Satisfaction

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Compensation

• Gimme The Cash!!!
• How will you Determine a Fair and Equitable
  level
• Remember the Community
• But Dont Forget Public Disclosure

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How LIPA Determines the PRP Incentive

• Determine the Average Cost of adding a kW of
  Generation or Capacity
• Consider the UCAP (Unforced Capacity or the
  minimum purchased capacity reserved to meet the
  18 margin requirement _at_ currently 51.66/kW/yr
  for LIPA)
• Guestimate the Number of Times a Critical Day
  will be Called (running average 4-5 days_at_ 4 hours
  per occurrence or 16 to 20 hours per season)
• Less Administrative and Program Costs

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LIPA Results 2003
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Lessons Learned

• Any program that ignores the Community Factor is
  doomed to Fail
• The Customers Business Comes First making any
  punitive program criteria difficult to sell
• Communication on all issues and to all audiences
  is the Key to Success

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Thanks! QAThe Utility Perspectivefrom LIPA

• PLMAS FALL 2003 CONFERENCE
• DEMAND RESPONSE AND RESOURCE PLANNING
•  
• SOUTHGATE TOWERS HOTEL, NEW YORK CITY
• September 8-9, 2003