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OPSI Annual Meeting

OPSI Annual Meeting. October 8 th 2013. Should all capacity resources be paid the same? Demand Response operational deployment . What is Capacity?

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OPSI Annual Meeting

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  1. OPSI Annual Meeting October 8th 2013

  2. Should all capacity resources be paid the same? • Demand Response operational deployment

  3. What is Capacity? • Procured to maintain reliable operations by ensuring sufficient amount and diversity of resources are available to the system operator to meet peak load requirements plus a planning reserve margin. • Physical commitment by resource owners • Provides a call option on energy

  4. Performance Requirements • Ensure resources available during operating day & perform when needed • Standard expectations of availability given the common definition of Capacity • Comparable while respecting unique physical characteristics and economic motivations of different resources

  5. Performance Requirements Demand Response • Keep it simple; overly burdening capacity definition can detract from objectives • Energy and Ancillary Service markets best suited to incent & compensate different operational characteristics

  6. Performance Requirements Demand Response • Preserve benefits and efficiencies of aggregation

  7. Performance Requirements Demand Response • No barriers to entry for customer participation • Respect physical and economic realities of retail customers who provide reliable reductions

  8. Performance Requirements Demand Response • No retro-active changes

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