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PG&E’s PG&E’s 2009 Participating 2009 Participating Load Pilot Load Pilot

PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Page 1: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

PG&E’s PG&E’s 2009 Participating Load 2009 Participating Load

PilotPilot

Page 2: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

2

Overview

Regulatory Context

Pilot Characteristics

Lessons

Next Steps

Page 3: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

3

Regulatory Context

December 2007

Federal Energy Act of 2007 (EISA 2007)

February 2008

CPUC directs CA IOUs to further integrate Demand Resource in wholesale markets

October 2008

FERC issues No. 719

December 2008

CPUC approves pilots that integrate in CAISO wholesale market

Page 4: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Participating Load Pilot

Can we create demand response for the wholesale market with the attributes of

supply side alternatives?

Page 5: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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“What is Participating Load?”

Load acting as a resource to:

Participate in the wholesale market and offer ancillary service and energy products

Load resource must be scheduled daily on an hourly basis, even without the DR load reduction:

Separated from overall load schedules

Must meet all CAISO technical specifications; e.g., 5-minute settlement metering, 10-minute responses, 4-second real time demand meter data, etc…

Page 6: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Pilot Characteristics

Customer recruitment:

Retail (HVAC), Industrial (Process),Local Gov. Office (HVAC)

No co-generation or back up generation

Already on Auto-DR

Customer benefits:

Receive Capacity + Energy (if called) incentives

Able to receive real-time data

Convenience and ease by having pre-determined load shed strategies; peace of mind

CAISO ADS

Page 7: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Pilot Characteristics

For real time meter data, PG&E used real time equipment to harvest meter data from end use sites transmit to the CAISO.

Transmit meter data in 4-seconds.

Communication must be running at all times even without DR bids.

Setup node points in CAISO’s EMS and Full Network Model (FNM) database.

For notification of a dispatch events, once CAISO initiates the event, Auto-DR triggers the customers’ pre-determined load shed strategies within the customers’ EMS and sends an email alerting the customer of an event.

Page 8: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Pilot Operations

Pilot ran from July 29th to October 31st

Day-Ahead Non-Spinning Bid during Monday – Friday Bid in as both contingency and economic

Page 9: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Time of Day

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Actual 5 min. Data Hourly Forecast with reduction Forecasted Data

PLP EVENT

Example of PLP Event

Page 10: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Lessons: Technology

Successful system integration:

Real-time (4-second instantaneous) data delivered from customers site to CAISO EMS systems

Seamless dispatch from CAISO to customers

Customers did not recognize that an event was dispatched

Feedback mechanism control between Auto-DR server to customer

Page 11: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Lessons: Operations

Customers responded when called by the CAISO

On average, resources were able to respond within 4 minutes of receiving the dispatches

A total 16+ hours were called for non-spinning reserves

More experience should lead to less forecasting errors

Page 12: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Lessons: End Use Resources

Retail and office building customers are ideal candidates

Dominant use of HVAC load

Industrial participant less predictable

High customer satisfaction:

Since everything was automated, customers felt participation was easier

Events were relatively short and not disruptive

Page 13: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Next Steps

2Q 2010: Continue to work on rules surrounding direct participation with the CPUC

3Q 2010: CAISO is scheduled to release and operate “Proxy Demand Resource” which will allow direct participation

1Q 2011: Field study for pilot demonstration on intermittent renewables

1Q 2011: Submit 2012 – 2014 DR portfolio proposal to CPUC. Portfolio will include programs that will have mechanism for bidding into wholesale market

Page 14: PG&Es 2009 Participating Load Pilot. 2 Overview Regulatory Context Pilot Characteristics Lessons Next Steps

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Questions

Steve McCarty

Director – IDSM

Portfolio Optimization & Metrics

PG&E

[email protected]