North American Energy Standards Board

1. North American Energy Standards Board Overview of NAESB SGTF Recommendations for NIST PAPs 03, 04 & 09 NAESB Board Meeting June 24, 2010

2. Topics • Acknowledgement • History and Background • Where we are? • Overview of PAP 03, 04, 09 Recommendations • What is Next?

3. Acknowledgement • Since August 2009, many people have been involved in the development of NAESB Recommendations for NIST PAP 03, 04 & 09. The NAESB Smart Grid Task Force and NAESB Staff would like to thank everybody who has contributed to the this effort, and would welcome continued support and participation. • We would also like to thank ISO/RTO Council (IRC), UCAiug OpenSG OpenADR task force, EPRI, NIST, OASIS, FIX Protocol, CalConnect, and other organizations that provided support to NAESB on this effort.

4. History & Background • August 2009, NAESB took on the responsibility of developing use cases and requirements for NIST PAPs 03, 04 & 09: • PAP03: Common Price Communication Model; • PAP04: Common Scheduling Mechanism; • PAP09: Standard DR and DER Signals • NAESB formed Smart Grid Task Force (SGTF) to start working on the three PAPs • A working paper – Framework for Integrated DR and DER Models - was first developed to help set the context for the requirements development thereafter; • The PAP09 effort was split into two recommendations, one for wholesale and one for retail; • Common terms & definitions as well as the entity relationship model were developed as a way to harmonize and ensure consistency across all three PAPs recommendations. • Recently, NAESB was also identified by NIST as the SDO to standardize the Energy Usage Information Model – PAP 10, and has formed a Working Group accordingly.

5. Where We Are?

6. Overview of the PAPs 03,04 & 09 Recommendations • Common Definitions • Entity Relationship Model • PAP03: Common Price Communication Model; • PAP04: Common Scheduling Mechanism; • PAP09: Standard DR and DER Signals • Wholesale Recommendations • Retail Recommendations

7. Common Definitions

8. Entity Relationship Model

9. PAP 03 Recommendations • The recommendation deals exclusively with the pricing related requirements at both the wholesale and retail levels. The requirements are captured in the form of UML models, where business requirements are captured in use case narrative format and data requirements are captured in tabular format. The main use cases that are affected by pricing are: • Demand Response • Non-Price (Environmental) Response • Load-follower • Price-takers • Reliability based responses, both wholesale and retail, is addressed by PAP-09 on DR Signaling. • The purpose of the recommendation is to capture business and data requirements related to the definition of a common model for capturing the attributes of an electricity product offered at wholesale and/or retail level. Such attributes will mainly include but are not limited to the pricing information of the product being offered to the end consumers of electricity.

10. Pricing Related Use Cases

11. Tariff Rate Types

12. Product Identification

13. Pricing Attributes

14. PAP 04 Recommendations • The recommendation contains a set of requirements relating to the use of date and time based data elements that are used in transactions for Demand Response programs. This information is being provided to NIST in order to aid in the development of a standard representation for date/time based data elements derived from an XML representation of iCalendar. •  Although there are many other areas where date/time based data elements are used in energy industry transactions this recommendation is limited in scope to only those date/time based data elements that are utilized in Demand Response programs. •  The purpose of this action is to define the requirements for standard communication of date, time, schedule, and interval by smart grid actors, with particular attention to DR.

15. Representative Data Requirements

16. PAP 09 Wholesale Recommendations • The business process flows and use cases contained in this recommendation address the requirements for standardizing the information exchanged during interactions between the System Operator and various Market Participants for the administration and deployment of demand response resources in organized wholesale electric markets. • Common terminology from the NAESB Measurement and Verification Standards for Demand Response has been incorporated into the development of the business process flows and use cases. As a result of the development of this document, a standard set of actors and additional terminology will expand the existing NAESB documentation of associated terms and definitions for demand response.

17. Guiding Principles • Demand Response practices must be consistent with NERC and applicable regional reliability authority requirements. • All involved entities are registered through the applicable ISO/RTO market participant registration process, which may include credit checks. However, the specifics related to the business processes associated with registration are not documented in these requirements. • Settlement input parameters are defined as an output to the measurement and performance business process. However, specific business processes associated with settlements are not documented in these requirements. • Intra-system operator information exchanges and specific system operators market rules, calculations, algorithms, and Performance Evaluation models are excluded. • Planning functions are not documented in these requirements. This includes, but is not limited to, long-term load forecasting and transmission planning. • Capacity auctions, awards processes, and resource certification are not documented in these requirements. • References in these Recommendations to “Dispatch”, “Markets”, and “Reliability”, are made relative to Demand Response and apply to Demand Response resources only, not to Generation resources. • Compliance standards for Demand Response resources are determined by the market rules of the respective system operator and are specific to the product or service and the reliability need being addressed.

18. Actor Roles

19. Use Case Dimensions and Sample List

20. Wholesale Demand Response Process Flow

21. Specific Use Case Example – Enrollment and Qualification

22. PAP 09 Retail Recommendations • The purpose of the following is to capture business and data requirements for Retail Level DR signals between entities that controls and manages the DR programs and entities that provide demand response with DR resources and assets. The top level use cases for retail DR are: • Administrate DR Program • Administrate Customer for DR • Administrate DR Resource • Execute DR Event • Post DR Event Management • In the context of this report, Distributed Energy Resources (DER) are dispatchable energy generation and storage technologies, typically up to ten MWs in size, that are interconnected to the distribution grid to provide electric capacity and/or energy to a customer or a group of customers and potentially export the excess to the grid for economical purposes. DER is considered in this recommendation only within the context of Demand Response.

23. DR/DER Framework Key Findings • DR signals standardization must support all four market types; i.e. regions with a) no open wholesale and retail competition, b) open wholesale market only, c) open retail market only, d) open wholesale and retail competition. It must also consider key differences that exist and will continue to exist in all four market types. • Wholesale market DR and pricing signals have different characteristics than retail market DR and pricing signals, although commonality in format is feasible. • Most Customers (with a few exception of Commercial and Industrial (C&I) Customers will not interact directly with wholesale market when it comes to DR and pricing signals. • Retail pricing models are complex, due to the numerous tariff rate structures that exist in both regulated and un-regulated markets. Attempts to standardize DR control and pricing signals must not hinder regulatory changes or market innovations when it comes to future tariff or pricing models. • New business entities (Energy Service Providers (ESP), Demand Response Providers (DRP), DR Aggregators, and Energy Information Service Providers (ESIP)) will play an increasing role in DR implementation. • DER will play an increasingly important role in DR, yet the development of tariff and/or pricing models that support DER’s role in DR is still in its infancy. • The Customer’s perspective and ability to react to DR control and pricing signals must be a key driver during the development of DR standards.

24. Retail DR Use Case Overview Note: the details of UC 1.0 and 2.0 are outside the scope of this recommendation.

25. Use Case – Administrate DR Resource

26. Use Case – Execute DR Event

27. What is Next? • NAESB SGTF Phase II Effort: • Develop a consolidated and harmonized set of data requirements across PAPs 03, 04 and 09 Wholesale and Retail. • This is to provide further details behind the current recommendations of three PAPs with the intent to make the whole set of recommendations more actionable by the regulatory and users community. • NAESB SGTF announced the formation of PAP10 WG. • Formation of the WG and its leadership team with broad participation; • Developed a high level plan to get the Energy Usage Information Model standard completed in six months. • Continued to look for opportunities to develop Smart Grid standards that are of great value to its members.