Austin Energy Demand Response. Peak Load Management Alliance (April 24, 2013) Texas Demand Response Case Studies

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Austin Energy Demand Response Peak Load Management Alliance (April 24, 2013) Texas Demand Response Case Studies

Current Demand Response Programs Load Cooperative Program Voluntary C&I program Utilizes e-mail/pager/text notifications Pays incentive compared to baseline Power Partner Thermostat Program Residential and small business Direct load control Utilizes one-way radio broadcast Free programmable thermostat 2

Current Demand Response Goals: Reduce AE peak demand Reduce AE demand during ERCOT 4CP Reduce energy usage at times of high SPP Reduce overall cost to customers Operates June - September (Summer weekdays) Events are ~ 2 hrs. long (up to 3 hrs.) Usually operate Load Coop and Power Partner thermostats at the same time 3

Load Cooperative Program Manual Demand Response delivering ~4.5 MW Payment of $1.25/kwh during event AE utilizes EPO for notifications and settlement Notification is 1 hour before event About 77 current meters enrolled Challenges Access to low cost, reliable IDR data Requires knowledgeable customers 4

Current Thermostat DR Program Free Thermostats One-way communication Radio Signal Controlled Top Down : AE contracts with a Vendor to provide thermostats, installation, maintenance & customer call center ~95,000 installed Results 10 to 15 events per year Provides 10-40 MW of demand side management As of July 24, 2012

AE Challenges with Current Model One-way communication: radio controlled devices Manual Opt-Out Process: Needs Improvement Unclear how many units continue to function properly AE measures impacts at system wide level Doesn t integrate with other AE programs Not adopted by HPwES contractors Technology falling behind the industry Large touch screens Adaptive algorithms for energy savings Web and smart phone based programming 6

MW Sample Cycling Session (August 2010) 16th, 37 MW @104F. 2585 2,650 2,630 2,610 Peak Days Avg t,f 2,590 Cycle Mon 16 104F 2,570 2,550 Extrp Mon 16 104F 2,530 2,510 Cycle 2,490 2,470 2,450 20:00 19:20 18:40 18:00 17:20 16:40 16:00 15:20 14:40 14:00 Hour 7

Power Partner Thermostat Program Current DR thermostat business model Traditional utility sponsored program Utility procures all product and installation Utility markets program to customers Utility assumes risk for long term performance New DR Thermostat business model Customer choice program through enrollment Leverages customer owned thermostats Vendor and utility marketing Multiple installation channels Can reduce utility financial risk 8 As of July 24, 2012

Future: Residential & Small Commercial Programmable Communicating Thermostats Customers receive rebates for enrolling in the DR program with an approved thermostat Multiple thermostat options from different markets: DIY, HVAC Contractor, Service Companies (ie: cable or security) Cloud Based Control & Confirmation (2-way) Thermostat vendors receive rebates for providing AE direct access to thermostat devices via a Utility Portal Bottom Up : Vendor provides thermostats, installation, maintenance & customer call center to customers Pilot 2012- Launch 2013 Future Ability to expand to other devices: car chargers, pool pumps, hot water heaters, etc Future ability to utilize DRMS to aggregate Utility Portals As of July 24, 2012

Bottom Up Retail Vendor Model No direct purchase by utility Customer or bundled service provider funds product, installation and portal access Utility pays for customer enrollment, portal access, and participation Participating vendors agreement (portal providers) Utility and portal provider enter into no cost agreement Payment for ongoing utility portal access technically from customer Portal provider agrees to provide API to DRMS Customer Participation Agreements Agreement to allow utility DR curtailments Requests their vendor provide utility access for DR Customer assigns some incentive directly to utility portal provider Multiple market channels DIY - Customer Purchase (Home Improvement Stores and on-line purchase) HVAC contractors Bundled service providers Cable/Satellite/cellular and broadband providers Home Security companies

Business Model Diagram PRIMARY OPTION Customer- Owned T-Stat with Web Service ` Utility Portal Demand Response Management System (DRMS) (Future) ` Utility Portal Security System or Cable TV SECONDARY OPTION Customer Service Tech Support Meter Data Management System (MDMS) (under development) Customer Portal Cellular/ Cable Customer Service Tech Support Trucks Via Cell Network Smart Phone Control App February 24, 2012 ` Customer Portal Wifi Heat & Cool Smart T-Stat with U-Snap Radio SEP1.x SEP 2.0 Electric Vehicle Charging Station (Future) (Future) ZigBee AE AMI Meter ZigBee (future) L&G (Future) ` Electric Vehicle Charging Station (Future) Network Security Panel Via Cell or Set-Top Box Smart T-Stat with Radio SEP 1.x SEP 2.0 11 Smart Phone Control App Heat & Cool

Current roadmap Sign multiple vendor agreements (3 current agreements) Began limited deployment of new (currently @ 79 units) Maintain legacy system Pilot and test DRMS (pilot agreement executed) Perform Measurement and Verification Expand current deployments Phase-in of additional Participating Retail Vendors Market and integrate into other incentive programs Implement additional customer performance incentives Incorporate into energy codes and rating systems

Longer Term: 1-Stop Control Platform Demand Response Management System (DRMS) Short Term: Multiple DR Platforms Maintain Current Legacy System Phase-in of Multiple Participating Retail Vendors Longer-Term: One DRMS Platform controls multiple control systems, eventually all M&V data (interval runtime, other data) into MDMS Integrate other monitoring & control (EV Chargers, other end uses) Utilize DRMS for C&I DR expansion 13

Additional Program Options Integrate thermostat portal with energy usage HVAC contractor portal to facilitate maintenance agreements HVAC unit remote diagnostics Efficiency rebate and HVAC tune-up M&V Other messaging and notification Promotion/Integration with TOU rates

Contact Us City of Austin - Austin Energy Customer Care Center 721 Barton Spring Rd. Austin, Texas 78704-1194 p. 512.494-9400 e. custinfo@austinenergy.com Twitter Facebook @austinenergy Thank You! Scott Jarman Consulting Engineer, Energy Efficiency Services 721 Barton Spring Rd. Austin, Texas 78704-1194 p. 512.482.5307 e. scott.jarman@austinenergy.com facebook.com/austinenergy 15 April 30, 2012