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NARUC/FERC Collaborative Dialogue on Demand Response. July 15, 2007 Deb Sundin Xcel Energy. Xcel Energy Service Territory. Northern States Power Company- Minnesota. Northern States Power Company- Wisconsin. Public Service Company of Colorado.
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NARUC/FERC Collaborative Dialogue on Demand Response July 15, 2007 Deb Sundin Xcel Energy
Xcel Energy Service Territory Northern States Power Company- Minnesota Northern States Power Company- Wisconsin Public Service Company of Colorado 3.3 Million Combined Electric and Gas Customers in 8 States Southwestern Public Service
Xcel Energy DR: NSP System • Historic retail load management business tariffs. • Majority of controllable load from peak control tariff. • Can save up to 60% on demand charges, paid throughout the year. • Options for Maximum annual hours of control are 300, 150 and 80 hours per year. One-hour notice typical. • $8/ kW or $10/ kW penalties are charged for violating control periods. • Direct load control • Primarily residential cycled air conditioning. • Average 10-15 days of control June through September. • Customers receive a bill discount for participating and are not notified prior to control.
Xcel Energy DR: NSP System • Built over the last 30 years. • Built to control NSP’s system peak load. • DR resources are actively integrated into utility’s resource planning process – avoids significant amounts of generation • Discounts based on avoided cost of CT at time of development.
Xcel Energy DR: PSCO System • Interruptible Service Option Credit • Strict qualifications requirements limit free riders. Must have 500 kW of controllable load during each summer month. • Up to 67% savings on demand charges paid throughout the year. • Control periods may occur at any time for Economic, Capacity, Contingency or Reliability reasons. • Options for maximum annual hours of control are 200, 160, 80 and 40 hours. Notice options of <10 Minutes, 1 hour or 8 hours. • Direct load control • Residential cycled air conditioning units. • Average 10-15 days of control June through August. • Customers receive a bill discount for participating and are not notified prior to control.
Xcel Energy DR: PSCO System • C&I customers previously on interruptible tariffs received discounts, but infrequently called to control • Redesigned program to provide customers options that conformed to utility’s economic / reliability needs • Interruptible Service Option Credit (ISOC)
NSP Retail DR Programs vs. Future MISO Wholesale DR Efforts • MISO is currently looking at wholesale DR. • Developing an emergency program • Value propositions of DR are dynamic and can be impacted by: • Capacity vs. energy • Plant deferral economics vs. near term price mitigation • Control response time (5 minutes – 2 hours) • End-use customer control requirements vs. customer payment • Where existing resources are substantial (e.g. Minnesota), should be careful not to erode resource built over decades • Ultimately, goal must be to ensure that customers receive least cost (long run) resources, consistent with other priorities (e.g. environment, reliability, etc.)