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Idaho Power Company Demand Response & Dynamic Pricing Programs

Idaho Power Company Demand Response & Dynamic Pricing Programs. PNDRP December 5, 2008 Darlene Nemnich Pete Pengilly. Overview of Idaho Power DR and Pricing Programs. Demand Response Programs Residential A/C Cycling: 20,000 customers, -20 MW max

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Idaho Power Company Demand Response & Dynamic Pricing Programs

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  1. Idaho Power CompanyDemand Response & Dynamic Pricing Programs PNDRP December 5, 2008 Darlene Nemnich Pete Pengilly

  2. Overview of Idaho PowerDR and Pricing Programs • Demand Response Programs • Residential A/C Cycling: 20,000 customers, -20 MW max • Irrigation Peak Rewards, 897 service points, -35 MW max • Redesign in 2009 • In Design - DR Aggregator for commercial • Pricing Programs • Mandatory TOU for all industrial customers • Proposed mandatory TOU for all large commercial customers • Residential CPP and TOU pilot 2005-2006, ongoing to-date • AMI • 2009 will be year one of three-year deployment

  3. Overview of Idaho PowerDR and Pricing Programs • Demand Response Programs • Residential A/C Cycling: 20,000 customers, -20 MW max load • Irrigation Peak Rewards, 897 service points, -35 MW max load • In Design - DR Aggregator for commercial • Pricing Programs • Mandatory TOU for all industrial customers • Proposed mandatory TOU for all commercial customers • Residential CPP and TOU pilot 2005-2006, ongoing to-date • AMI • 2009 will be year one of three-year deployment

  4. Energy WatchResidential CPP Pilot-Ongoing • Limited to Emmett, Idaho customers • Maximum 10 event days, June 15 – August 15 • Generally, no more than two consecutive days will be called • Critical peak hours – 5:00 p.m. to 9:00 p.m. weekdays • Rates: • 20¢ /kWh during critical peak hours • 5.7783¢ /kWh flat rate all other hours of the year • Customer notification: • Email sent by noon day-ahead of event • Email notification initiates automatic calling to all customers on program • Customers must be contacted before 4:00 the day before event • This process also updates website

  5. Time-of-DayResidential TOU Pilot-Ongoing • Limited to Emmett, Idaho customers • TOU rate in effect June 1 – August 31 • Time blocks and current rates: • On-Peak 1:00 pm to 9:00 pm WD 8.8683 ¢/kWh • Mid-Peak 7:00 am to 1:00 pm WD 6.5148 ¢/kWh • Off-Peak 9:00 pm to 7:00 am WE/Holidays 4.8074 ¢/kWh • Flat rate September-May 5.7783 ¢/kWh

  6. Time-of-Day ProgramRates Differentials

  7. Customer SolicitationCurrent process • Send postcard/bill insert to eligible customers • Send thank-you letter to existing customers • Advertise in local paper • Hold public event in person to answer questions

  8. Research PlanTime-of-Day and Energy Watch • Data Analysis • RLW Analytics 2006 & 2007 • Bill Analysis • Energy Consumption / Peak Usage Analysis • Temperature Usage Correlation • Customer Surveys • 2005 – Northwest Research Group, Boise Idaho • 2006 - Clearwater Research, Boise Idaho • 2007-2008 Ongoing reporting

  9. Program Participation

  10. Data Analyses

  11. TOD Energy Usage Results

  12. TOD Energy Usage Results - 2006

  13. EW Energy Usage 2005

  14. EW Energy Usage - 2006

  15. Load Analysis Results

  16. EW Event Days 2005Temperature Usage Correlation

  17. EW Event Days 2006Temperature Usage Correlation

  18. Weather Regression for the Energy Watch Program T-value of 1.82 and a p-value of 0.078. Reduction = 0.62738+0.000762*Temperature T-value of 5.55 and a p-value of 0.0001 Reduction = -1.09089+0.02611*Temperature EW Reduction vs. Temperature 2006 2005

  19. EW Energy Usage –2007Average event showing each event

  20. EW Energy Usage –2007Day before, day of, day after

  21. EW Energy Usage –2007Two consecutive days

  22. Customer Survey Results

  23. Customer Survey Results

  24. Customer Survey Results

  25. Bill Analysis Results

  26. Customer Survey Highlights - 2005 • The most effective means to provide information is direct mail or bill stuffer • Those who did not participate indicated they felt the programs were notconvenient or would not save enough electricity, also they did not want to change when they used electricity and that there was not enough incentive to participate • In order to acquire more customers for these programs, the utility will have to show the benefits of participating and provide messaging that customers will not lose control

  27. Customer Survey Highlights - 2006 • Satisfaction is tied to the sense that their electricity bill decreased and that they were conserving energy • Most participants indicated they changed the way they used electricity • Less than half of all participants and less than one third of Energy Watch participants have central air conditioning • About half of the participants are over the age 65 • Most participants have been Idaho Power customers more than 25 years

  28. Lessons Learned • Labor Intensive • Call Center • Meter Support • Corporate Communications • Customer Satisfaction • Automated System(s) for Customer Notification • Need infrastructure in place • Need constant marketing/reinforcement • More and easier “near real time” feedback to customers • No clear customer elasticity • Review program design • Hours • Rates

  29. Questions/Comments

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