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David J. Lawrence Manager, Auxiliary Market Products New York Independent System Operator

New York’s Demand Response Programs – A Collaborative Effort National Association of Regulatory Utility Commissioners July 15, 2007. David J. Lawrence Manager, Auxiliary Market Products New York Independent System Operator. New York ISO. "Hub of the Northeast". Hydro Quebec 34,850 MW*.

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David J. Lawrence Manager, Auxiliary Market Products New York Independent System Operator

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  1. New York’s Demand Response Programs – A Collaborative EffortNational Association of Regulatory Utility CommissionersJuly 15, 2007 David J. Lawrence Manager, Auxiliary Market Products New York Independent System Operator

  2. New York ISO "Hub of the Northeast" Hydro Quebec 34,850 MW* ISO-New England 28,061 MW* IESO 27,005 MW* New York ISO 33,939 MW* PJM / PJM West 144,796 MW* * = Peak Load in Megawatts 03/19/07

  3. Demand Response Programs • Two Reliability Programs – Controlled by NYISO • Emergency Demand Response Program • ICAP Special Case Resources Program • One Economic Program – Controlled by Customer • Day-Ahead Demand Response Program DRAFT – For Discussion Only

  4. Historical Summary of EDRP/SCR Events DRAFT – For Discussion Only

  5. 8/2 NYCA LoadEffect of Demand Response Added Back Total 948 MW DRAFT – For Discussion Only

  6. EDRP / SCR Registration DRAFT – For Discussion Only

  7. The Role of New York’s Dept. of Public Service • New York’s Dept. of Public Service (NYSDPS) has been a significant contributor to the design and implementation of demand response programs through the NYISO governance process • In December 2000 (Case 00-E-2054), the NYSDPS ordered regulated utilities to implement demand response programs mirroring the newly-created NYISO programs • In 2007, the NYSDPS worked with Con Ed and the NYISO in the governance process to implement targeted demand response in New York City (FERC approvedeffective July 1, 2007) DRAFT – For Discussion Only

  8. Opportunities • How do we develop demand response to be part of the everyday market? • Supply and demand curves require a level of price elasticity. How much is needed? • Load duration curves show: • Final (peak) 4000 MW of load occurs for just 1% of the time. • 2000 MW of that load only occurs for 22 hours. • An opportunity for demand response providersto further their role in daily peak load management. • Price duration curves show: • Highest 1% of the hours contribute 5% to the annual real-time cost of energy. • 1 day in 3 has an hourly price in the top 5% of prices • Critical price events exists outside of peak load periods. • Opportunities for demand response exist on a regular basis. DRAFT – For Discussion Only

  9. Market Evolution • New market constructs are now being developed to allow participation by demand response resources in the Ancillary Services markets. • What remaining segments of demand response remain untapped? • What volume and what services can be provided? DRAFT – For Discussion Only

  10. Standards Development • Market designs may have evolved differently in the various regions of the country, but they all deal with similar concerns when looking to incorporate demand response. • How is reliability maintained? How is the response measured? How do we communicate with demand response? • Standards development will allow the markets to build upon the successes of each other. Standards development will allow service providers to more quickly and efficiently enter markets and grow participation. • Standards creation efforts occurring at NAESB (North American Energy Standards Board) and at ISO/RTO Council (IRC) DRAFT – For Discussion Only

  11. Questions? DRAFT – For Discussion Only

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