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Measurement and Verification Standards for Demand Response in Wholesale Electric Markets
September 30, 2009
Eric Winkler, Ph.D.Project Manager, Demand ResourcesFCM and Tariff AdministrationISO New England, Inc.
September 30, 2009© 2009 ISO New England Inc.
NAESB Overview
• ANSI Certified Standards Development Organization• Wholesale and Retail Electric and Gas Standards• Industry Driven Process/Balanced voting• Segments: Independent Grid Operators, Transmission,
Generation, Marketers, Distribution, End Users• Subcommittees and standards development is open to any
stakeholder• Recommendations voted on by Executive Leadership• Standards require full member ratification• Wholesale standards are filed with FERC• Retail model business practices are voluntary• Standards development is dynamic and ongoing
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September 30, 2009© 2009 ISO New England Inc.
Standards For Business Practices And Communication Protocols For Public Utilities - FERC NOPR RM-05-017
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September 30, 2009© 2009 ISO New England Inc.
Disclaimer
• The information provided in this presentation does not represent the views or position of NAESB, ISO New England, NEPOOL or the ISO/RTO Counsel relative to the FERC NOPR RM-05-017.
• Questions regarding this NOPR should be directed to the appropriate staff at FERC.
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September 30, 2009© 2009 ISO New England Inc.
Overview
• April 17, 2009 - NAESB files results of March 16, 2009 adoption of Wholesale Demand Response Measurement and Verification Standards, under Docket RM-05-017
• September 17, 2009 - FERC NOPR announced at open meeting.
• September 22, 2009 – FERC NOPR published in Federal Register.
• October 22, 2009 - Comment period ends
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September 30, 2009© 2009 ISO New England Inc.
Summary
1. FERC proposes to incorporate by reference in its regulations at 18 CFR 38.2 business practices standards adopted by the Wholesale Electric Quadrant of NAESB to categorize various demand response products and services and to report the measurement and verification of these products and services in wholesale energy markets. (Sec. 1)
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September 30, 2009© 2009 ISO New England Inc.
Summary - Background
2. Standards developed by ANSI accredited Board, NAESB. (Sec. 2)
3. Standards developed by NAESB cover Wholesale and Retail Gas and Electric designed to streamline transactional and communications processes. (Sec. 3)
4. NAESB process is open and requires majority support from EC, 40% support from 6 industry segments in wholesale quadrant; transmission, generation, marketer/brokers, distribution/LSE, end users, independent grid operators/planners, and supermajority support from WEQ membership. (Sec.4)
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September 30, 2009© 2009 ISO New England Inc.
Summary
5. NAESB submits Phase I Standards referenced in Section 1 April 17, 2009 and notes Phase II WEQ DR standards development work in progress (Sec.5)
6. Phase I standards include 31 business practices and 40 definitions identifying the M&V characteristics of Demand Response products in wholesale markets. Work plan item 4.b, Phase II standards, was established concurrently with EC approval of Phase I (Sec 6)
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September 30, 2009© 2009 ISO New England Inc.
Summary – Description of M&V Standards
7. Phase I M&V standards identify operational information, performance evaluation methodologies, and definitions. (Sec 7)
8. Standards address transparency requirements for four Demand Response product types; Energy, Capacity, Ancillary Services Regulation and Ancillary Services Reserve products. Many characteristics are common across products types with some exclusive to a single product. (Sec 8)
9. Standards require System Operator to make specific methods to be used and required information publically available. (sec 9)
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September 30, 2009© 2009 ISO New England Inc.
Summary - Discussion
10. Incorporate by reference into FERC regulations WEQ Phase I M&V standards and associated terms in WEQ-015 glossary. (Sec 10)
– The standard enhances Transparency and Consistency to methods used to measure and verify demand response products in wholesale markets
– Glossary provides standardized definitions of demand response services, operational terms and performance measurement.
– The standards establishes basis upon which to develop more comprehensive standards for provisioning demand response in wholesale markets.
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September 30, 2009© 2009 ISO New England Inc.
Summary - Discussion
11. NAESB’s consensus driven process for adoption of standards provides for reasonableness test drawing broad support from segments of industry. (Sec 11)
12. Business Practice Standards are intended to facilitate ability of demand response providers to participate in markets, reduce transaction costs, and provide more customers to participate, especially for those in multiple markets. These standards provide framework for additional standardization efforts and to identify those elements for which standardization would be beneficial.
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September 30, 2009© 2009 ISO New England Inc.
Summary - Discussion
13. NAESB’s WEQ should continue their efforts to develop substantive standards for operation, evaluation and performance of demand response.
– FERC believe Industry should continue to take lead in developing and implementing demand response standards that are practical and workable.
– FERC seeks comment on establishing a deadline for development of these remaining critical standards.
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September 30, 2009© 2009 ISO New England Inc.
Summary – Notice of Voluntary Consensus Standards
• FERC provides Notice of Proposed Rule Making in compliance with OMB Circular A-119 (section 11) (February 10, 1998). (Sec 14)
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September 30, 2009© 2009 ISO New England Inc.
Summary - Misc
• Information Collection – Sections 15-20• Environmental Analysis – Section 21• Regulatory Flexibility Act Certification – Sections 22-23• Comment Procedures
– Comments due 30 days after filing in Federal Register (sec 24)
– Filings may be electronic or paper, paper filings must include 14 copies (Sec 25)
– Filings may be view as described in Document Availability section (Sec 26)
• Document Availability– Available in Federal Register and FERC’s home page (Sec 27)
– Available from FERC’s eLibrary (Sec 28)
– Assitance is available for accessing FERC’s eLibrary. (Sec 29)
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September 30, 2009© 2009 ISO New England Inc.
Phase II M&V Standards Development For Demand Response in Wholesale Electric Markets
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September 30, 2009© 2009 ISO New England Inc.
Phase II Activities
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Date Location Minutes Misc.
8-Oct-09 Conference Call/Webex Energy Curtailment Specialists Comments
FERC 9/17/09 NOPR on NAESB WEQ DR M&V Standards
FERC 9/17/09 Press Release on NAESB WEQ DR M&V Standards
20-Aug-09
DSM/EE Working Group 3 Meeting, WEQ, Colorado
Springs,
Cancelled Energy Curtailment Specialists Comments
15-Jul-09 Conference Call/Webex EnerNOC Cumulative Edits Redlined July 1, 2009
Energy Curtailment Specialists Comemnts to EnerNOC Cumulative Edits Redlined July 1 2009
Retail and Wholesale DR Definitions Compared
1-Jul-09 Conference Call/Webex Meeting Notes EnerNOC Cumulative Product Edits
EnerNOC Cumulative Edits Redlined July 1,
2009
2008 WEQ Annual Plan Item 5(a) Final Action: Review and develop business practice standards to
support DR and DSM-EE programs. - Ratified March 16, 2009
17-Jun-09 Conference Call/Webex
Retail Metering Working Group Process for Performing VEE for AMS
Comverge’s revised edits to the WEQ DR standards
EnerNOC’s revised edits to the WEQ DR standards
EnerNOC’s Energy Products Edits
September 30, 2009© 2009 ISO New England Inc.
Phase II Activities
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Date Location Minutes Misc.
10-Jun-09 DSM/EE Working Group 3 Meeting, WEQ, Boston,
MA
Meeting Notes EnerNOC - The Demand Response Baseline
Comverge’s revised edits to the WEQ DR standards
WEQ DR Standards - EnerNOC Capacity Product Recommendations v.1
EnerNOC’s revised edits to the WEQ DR standards
Comverge Edits to the WEQ DR Standards by W. Miyaji
IRC Website Link to MATRIX
2008 WEQ Annual Plan Item 5(a) Final Action: Review and develop business practice standards to support DR and DSM-EE programs. -
Ratified March 16, 2009
18-May-09 Conference Call/Webex IRC Website Link to MATRIX
16-Apr-09 DSM/EE Working Group 3 Meeting, WEQ, Austin, TX
Recommendation 2008 WEQ Annual Plan Item 5(a) Approved by the WEQ EC on February 10, 2009 (Clean)
September 30, 2009© 2009 ISO New England Inc.
IRC Matrix of DR products
• Matrix of demand response technical requirements inclusive of Operational, Measurement and Performance Evaluation Criteria.
• Covers all current Demand Response Products offered throughout North America.
• Over 2500 data elements with links to additional tariff and operating manuals.
• Matrix is easily searchable and free to public.• Matrix will be maintained by ISO-RTO Counsel.• Located at www.isorto.org under documents.
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September 30, 2009© 2009 ISO New England Inc.
Next Steps
• Forward going process• Discussion of Scope
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September 30, 2009© 2009 ISO New England Inc.
Contact
North American Energy Standards Board1301 Fannin St.Suite 2350Houston, TX 77002Voice: (713) 356-0060Email: [email protected]
Eric Winkler, Ph.D.FCM &Tariff Administration
ISO New England
Email: [email protected]
www.iso-ne.com
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