ISO Electric and Gas Wholesale Initiative

1
ISO Electric and Gas Wholesale Initiative

• Christopher James
• CT DEP
• 19 March 2004

2
DEP permits authorize dual fuel operation

• Recent permits for Bridgeport, Milford, Killingly
  specifically provide for up to 30 days operation
  with oil.
• DEP DG rule recognizes need for fuel diversity

3
The Objective

• Lay groundwork for integrating energy and air
  quality goals into demand response program
  designs.
• Current Programs
• Reduce peak electricity load
• Provide greater power system reliability
• Lack of consideration and/or tracking of the
  environmental performance
• Future Programs
• Incorporate public health and environmental
  protection via energy efficiency and clean
  distributed generation
• Provide innovative tools to meet critical power,
  public health, and environmental needs

4
ISO RFP

• The longer timeframe helps planning efforts and
  recognizes NEDRI process
• Continuing need for transparency about nature and
  cause of problems
• Continuing need for communications among
  generators, distribution companies, ISO, PUC and
  DEP

5
Public Health and Environmental Issues

• The Problem ambient air emissions
• nitrogen oxides
• volatile organics
• diesel exhaust
• carbon monoxide
• carbon dioxide
• mercury
• other air toxics

6
Potential Emissions Impact in CT(NOx tons on a
given ozone season day)
(post-contingency)
(price-driven)
(capacity shortfall)
(price-driven)
7
Taking Action

• Develop new energy efficiency and clean
  distributed generation programs and incentives
  targeted towards peak power usage
• Tie incentives to energy efficiency and clean
  distributed generation, including renewable
  energy and combined heat and power
• Develop policies and regulations to restrict the
  use of uncontrolled diesel and other
  high-emitting on-site generators as an
  alternative to grid-based power

8
Widespread Agreement on Need for Robust
Distributed Resources

• Amory Lovins, Rocky Mountain Institute the more
  and bigger bulk power lines you build, the more
  and bigger blackouts are likely.
• Trees or terrorists, the power grid will go down
  again!" Robert Schainker, EPRI
• Even the gurus at EPRI, which relies on funding
  from utilities that run big power plants, agree
  that moving to a distributed model, in
  conjunction with a smarter grid, will reduce
  blackouts The Economist, 11 March 2004

9
DR Solutions

• The DR both distributed resource and demand
  response solutions we prefer are the least
  costly
• EE investment ROI gt 4 for every 1 spent.
• Generation only focus is not workable NOx
  limited increased health costs potential SIP
  liability.