Facing a DR Future & The Role of AMI Enabled Products

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1 Facing a DR Future & The Role of AMI Enabled Products AEIC 2013 Spring Workshop Orlando Mike Alexander Senior Manager Customer Energy Solutions PG&E April 9th,

2 Pacific Gas and Electric Company Services 70K square miles in northern and central California 18,610 miles of electric transmission 142K circuit miles of electric distribution System peak: o 21,364 MW on 17:00 o 19,286 MW on 17:00 ~6K MW of native generation capacity ~20K employees ~ 5.2M electric service accounts and 4.2M gas (9+ M smart meters installed) Serves 15 million people (~ 1 in 20 in USA receive utility service from PG&E) Serves 5% of the U.S. population but emits less than 1% of the total CO2 emitted by the utility sector 2

3 Highly Diverse Energy Needs Agriculture & Food Processing Government Hospitality Health Care Biotech High Tech Industrial Wholesale Warehouses Office Buildings & Retail Residential Schools & Colleges Builders 3

4 Why Implement Demand Response? Well Designed and Operated DR Programs Offer Unique Benefits To Customers 1. Enhance Electric System Reliability 2. Provide Additional Resources To Moderate High Prices 3. Reduce Power Purchase and Individual Customer Costs 4. Protect The Environment California s 2003 Energy Action Plan Acknowledges and Prioritizes These Benefits By Putting DR At The Top of The Loading Order 4

5 California s DR Landscape Today Demand Response Resources In Their Current Form California s IOU DR Programs Offer About 2,500 MW of Peak Load Reduction PG&E s DR Programs Provide Roughly 750 MW of Demand Reduction One Emergency Retail DR Program (BIP) Three Economic Dispatch DR Programs (SmartAC, DBP, PeakChoice*) Two Dynamic Rates Programs (SmartRate, PDP) Two Third-Party DR Aggregator Programs (AMP, CBP) Three Technology Incentive Programs (AutoDR, PLS, TA/TI) Programs Primarily Designed To Achieve Peak Load Shaving and Emergency Response Emerging But Limited Integration With ISO Wholesale Markets As A Supply Resource * PeakChoice was operated during the 2012 season, but, as ordered by the CPUC, the program is no longer offered 5

6 Load & Net Load (MW) Wind & Solar (MW) The Future of DR: Addressing Complex and Evolving Challenges 46,000 44,000 42,000 40,000 8,000 MW in 2 hours 6,300 MW in 2 hours 13,500 MW in 2 hours 10,000 9,000 8,000 38,000 7,000 36,000 6,000 34,000 32,000 5,000 30,000 4,000 28,000 3,000 26,000 24,000 2,000 22,000 1,000 20, :00 1:30 3:00 4:30 6:00 7:30 9:00 10:30 12:00 13:30 15:00 16:30 18:00 19:30 21:00 22:30 0:00 Load Net Load Wind Solar 6

7 Megawatts How the wind really blows Wind Profile: April 2007 Each Day is a different color. Day 29 Day Day 5 Day Average Hour 7

8 SmartMeter Technology: The Foundation of PG&E s Future The Cornerstone of PG&E s DR Solutions Over 9 Million AMI Meters Installed To Date 9.7 Million By Mid-2013 Home Area Network (HAN) Enabled The Platform For Next Generation Enabling Technology Infrastructure For Mass Market Dynamic Pricing 8

9 Smart Meters are Accurate and Secure California Public Utilities Commission hired The Structure Group to investigate the PG&E SmartMeter Program Key Findings: Accurate from metering, end-to-end system data processing, and customer billing perspectives No relevant correlation between SmartMeters TM and customer high bill complaints Various factors contributed to high bill complaints including customer usage changes, weather, rate changes, and gaps in customer service and complaint resolution processes About 88% of evaluated PG&E practices are compliant with industry Best Practice 9

10 No Identified RF Health Impacts California Council on Science and Technology (CCST) report: Health Impacts of Radio Frequency of Smart Meters Findings: Wireless smart meters, when installed and properly maintained, result in much smaller levels of radio frequency (RF) exposure than many existing common household electronic devices, particularly cell phones and microwave ovens. The current FCC standard provides an adequate factor of safety against known thermally induced health impacts of existing common household electronic devices and smart meters. To date, scientific studies have not identified or confirmed negative health effects from potential non-thermal impacts of RF emissions such as those produced by existing common household electronic devices and smart meters. Not enough is currently known about potential non-thermal impacts of radio frequency emissions to identify or recommend additional standards for such impacts. 10

11 Customer Choice Smart Meter Opt Out Option Timeline Dec PG&E recommends analog meters as Smart Meter alternative for residential customers Jan CPUC issues revised decision supporting analog recommendation Feb CPUC gives final approval allowing analog meters Customer Opt Out Charges Initial setup charge of $75 and $10 monthly meter reading charge Income qualified customers will pay an initial setup charge of $50 and a $5 meter reading charge 11

12 Building on SmartMeter Technology: Time-Varying Pricing The Spectrum of Time-Varying Pricing Programs SmartRate Voluntary Residential CPP Peak Day Pricing Default Non-Residential CPP Time-of-Use (TOU) Rates Mandatory for SMB Customers 12

13 Lessons Learned: Most Important Drivers of Success Are Effective Customer Engagement and Choice Customer Awareness And Engagement Building A Foundational Understanding of Time-Varying Rates Is A Multiyear Process High-Touch Outreach Methods Are Often Most Effective But Difficult To Scale Up Providing Customers With Rate Choices That Meet Their Needs My Energy Online Rate Analysis Tools Use SmartMeter Technology and Time-Varying Pricing Programs To Help Customers Select The Rate That Best Fits Their Needs Pricing Programs Encourage Optimal Electric Vehicle And Distributed Generation Adoption Implementation Billing Systems Upgrades New Technologies 13

14 Interval Data-Enabled DR/EE Trials Energy Alerts. Information-based rate education Customer Web Presentment. Detailed energy use data presented in customer web portal Home Area Networks. Trial of in-home displays of realtime meter data Smart phone/smart thermostat paired with messaging. Trial of Honeywell/Opower solution Cloud-based learning thermostat. Trial of EcoFactor s dynamic signature modeling of thermal envelope Home Energy Reports. Printed reports using neighbor energy use comparisons to motivate behavior change 14

15 Energy Usage Alerts Provide customers early warning of high usage with enough time to react When actual usage-to-date crosses Tier 3, 4 or 5 When usage is forecasted to cross Tier 3, 4, 5 by end of billing period Delivered via: Text message Outbound phone call 15

16 Customers Can View Their Energy Usage 16

17 Personalized Energy Savings Advice 17

18 How Do The Reports Save? Understanding Savings Drivers Usage. Behaviors that affect use of household energy including: o Lighting (e.g., switching off when not in room) o HVAC systems (e.g., thermostat settings) o Hot water use o Household appliances (e.g., use frequency) Minor purchases including: o Weather stripping o Lighting sensors, timers, smart power strips Appliance purchases and building shell improvements including: o Windows o Insulation o Solar arrays 18

19 Addressing Attribution Isolate savings from what s achieved by other measures: o Utility record analyses for downstream measures o Home interviews for upstream measures Home interviews in a representative sample of 500 treatment and 500 control households Interviewees will be asked about energy use-related behaviors Interviewers will count number of lighting and TV installations at each location to determine differences between treatment and control households 19

20 Additional Uses of Smart Meter Interval Data DR event tracking and reporting CAISO forecast and reporting DR Load Impacts and Program Evaluations Outage Management Smart Grid Energy Efficiency Evaluation e.g. Normative Behavior Studies Load Research Cost of Service Study, Transformer Loading, T&D Optimization Electric Vehicles Charging Characteristics and Impact on Local Distribution Systems 20

21 Thank You! Questions? 21

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