OPA Demand Response Programs. AI Technical Panel Informative Review January 17, 2011

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1 OPA Demand Response Programs AI Technical Panel Informative Review January 17, 2011

2 Overview Current OPA Demand Response (DR) programs available: Demand Response 1 (DR1) Demand Response 2 (DR2) Demand Response 3 (DR3) PeakSaver

3 Demand Response Demand Response is the ability to reduce or shift load during periods of high demand. Demand Response Programs are designed to lighten the load on the IESO Control Grid by reducing demand during the on-peak/high demand periods.

4 Demand Response 1 DR1 Voluntary Demand Response Program (Introductory Program) Minimum annual peak demand of 50 kw. Activated when "early window DR3 program participants are activated, DR1 participants are then notified that they can curtail load. 4 hour activations occurring on business days between 12 pm and 6 pm (max 100 hours or 25 activations). Current capacity < 5 MW

5 Demand Response 2 DR2 Load shifting program where participants are contracted to shift load during the on-peak. Facility must be able to shift on-peak load by 5 MW 125 MW. DR2 contracts are 1, 3, or 5 year terms. OPA holds sole discretion to select a start interval either 15 minutes prior to or 30 minutes after the participants DR2 schedule. Current Capacity: 119 MW

6 Demand Response 3 DR3 Contractual load reduction program. Participants make commitment to reduce load during periods of peak demand when program triggers are met. Facility must have annual peak demand of 5 kw. If DR > 5 MW contract with OPA; if DR < 5 MW contract with a DR Provider hours/ year 1600 hours /year Season Summer Non-Summer All Hours of DR availability *Business Days Only 12 pm 9 pm 4 pm 9 pm 12 pm 6 pm Contracted Hours 100 hours/year 200 hours/year Activations (4 hours per) 25 activations 50 activations

7 Demand Response 3 Activation Supply Cushion Triggers are updated and approved monthly by OPA. Floor Prices Triggers are calculated and updated weekly by the OPA. Standby Notifications are sent the day ahead or the morning of activations (no later than 07:00 EST). Notifications will be issued if: Any hourly supply cushion value within the hours of availability is below the threshold, and The forecast market price for at least one hour within the hours of availability is above the floor price trigger. Activation Notifications are sent only after a prior standby notification and no later than 3 hours prior to any activation event. Notifications will be issued if: Any hourly supply cushion value within the hours of availability is below the thresholds based upon contracted dispatch period, and The forecast market price for at least one hour within the contracted dispatch period is above the floor price, and Nuclear units are not projected to become marginal units (SBG conditions), and Hydro units are not projected to spill additional water. Current Capacity: MW

8 Peaksaver Demand Response program that reduces electrical use by participants central air conditions system during hot peaking summer days. Dispatch of the program is conducted by the Dispatch Administrator, a third party contracted by the OPA; Designed to be activated for up to 40 hours during the activation season (maximum 4 hour activations): May 1 st September 30 th Business Days Only 12:00 to 21:00 EST (13:00 to 22:00 EDT) Activation based upon any level of Energy Emergency Alert status by the IESO using the System Status Reports (primary trigger). Or the program will be activated if Demand > MW or Temperature > 30 degrees Celsius (secondary trigger). As per the program rules, the IESO has the authority to call for program activation, at its discretion, when the IESO is in emergency operating state (EOS) or to reduce the potential for EOS. Current Capacity: 144 MW

9 Demand Response Compensation Demand Response 1 3: Availability Payment for Capacity Utilization Payment for Energy DR2 & DR3 participants are subject to performance set-offs /financial penalties to ensure good performance within the DR contractual obligations. Peaksaver participation is entirely voluntary and does not involve any financial remuneration.

10 Questions/Comments More information on the OPA Demand Response Programs can be found at: OPA - saveonenergy - Demand Response For Business

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