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Peak Time Rebate (PTR)

Peak Time Rebate (PTR). DRMEC Load Impact Workshop Alan Wong 7/25/12. PTR Program Background. PTR is the default incentive for residential customers with an Edison Smart Connect meter. 4-hour PTR event period from 2 p.m - 6 p.m., weekdays, excluding holidays.

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Peak Time Rebate (PTR)

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  1. Peak Time Rebate (PTR) DRMEC Load Impact Workshop Alan Wong 7/25/12

  2. PTR Program Background • PTR is the default incentive for residential customers with an Edison Smart Connect meter. • 4-hour PTR event period from 2 p.m - 6 p.m., weekdays, excluding holidays. • Unlimited year-round day-ahead (Economic/Price) events. • Incentive paid based on customer’s reduced consumption during an event compared to their calculated baseline (average of 3 highest out of last 5 days). • No penalty for non-performance.

  3. 2012-2014 Load Impact Estimates

  4. Comparison of SDG&E Ex Post and SCE Ex Ante PTR Load Impacts Dan Hansen Christensen Associates Energy Consulting DRMEC Spring Workshop July 26, 2012

  5. Purpose of the Presentation • SCE’s PTR business case includes an assumption regarding the kW load reduction for “active” program participants • In response to a request from the CPUC, we compared this result to the PY2011 ex post load impacts estimated for SDG&E • SDG&E ex post LI was 0.056 kW per enrolled customer • SCE assumes 0.229 kW per active (or aware) customer • Results indicate that SCE’s assumption is consistent with SDG&E’s estimate once an apples-to-apples comparison is made

  6. Differences between SCE and SDG&E Circumstances • Higher CAC penetration rate in SCE’s territory (62% versus 36%) • Hotter weather for SCE 1-in-2 August peak day versus SDG&E 9/7 event day • Lower average rate on non-event days for SCE customers (therefore a higher event to non-event hour price ratio) • Differences in customer awareness rates • Differences in customer usage levels

  7. Adjustment Methods:CAC Penetration Rate and Weather • Started with the percentage load impact from SDG&E’s September 7th event, which was 4.5 percent • Used CPP elasticity equation estimated in the SPP to adjust for • CAC penetration rate • Temperature conditions • Simulated elasticity of substitution for SCE’s and SDG&E’s event, adjusted %LI by the ratio of the two, which was 1.356 : 1

  8. Adjustment Methods:Awareness Rate and Price • The %LI is adjusted downward to adjust for differences in customer awareness • Study of SDG&E program found 63% • SCE assumes 50% • The %LI is adjusted upward to adjust for price differences • SCE customers face a higher event to non-event price ratio and are more price responsive (per SPP exercise described earlier)

  9. Adjustment Methods:Customer Size • After all adjustments, the percentage load impact is 7.0 percent (versus the 4.5 percent LI for SDG&E) • This is multiplied by the average event-hour usage for SCE customers of 1.84 kW • The resulting load impact is 0.128 kW per enrolled customer

  10. Adjustment Methods:Customer Basis • Convert the 0.128 kW per enrolled customer load impact into a per aware customer load impact • 0.128 kW per enrolled customer / 50% awareness rate = 0.256 kW per aware customer

  11. Comparison of Results • Recall that SCE assumes a load impact of 0.229 kW per aware (or active) customer • Our methods produced an estimated load impact of 0.256 kW per aware customer • This is slightly higher than SCE’s assumed value • SCE proposed to proceed with their initial assumption, which is a more conservative estimate of load impacts

  12. Questions? • Contact – Dan Hansen, Christensen Associates Energy ConsultingMadison, Wisconsin • Danh@CAEnergy.com • 608-231-2266

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