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Demand Response

Demand Response. Commissioner Suedeen Kelly June 3, 2008. Integration – RTO/ISO Level. ISO-NE NYISO PJM MISO CAISO. Integration – ISO-NE. Energy Market: Four distinct programs Day-Ahead and Real Time opportunities Forward Capacity Market (FCM)

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Demand Response

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  1. Demand Response Commissioner Suedeen Kelly June 3, 2008

  2. Integration – RTO/ISO Level • ISO-NE • NYISO • PJM • MISO • CAISO 6/3/2008

  3. Integration – ISO-NE • Energy Market: • Four distinct programs • Day-Ahead and Real Time opportunities • Forward Capacity Market (FCM) • Demand Resources treated as supply resources in FCM • Ancillary Services: • Larger Demand Resources can participate fully (5+ MW) • Pilot program underway to enable smaller Demand Resources to participate in reserves market 6/3/2008

  4. Integration – NYISO • Energy Market: • Participation through Day-Ahead Demand Response Program and the Emergency Demand Response Program • Capacity Market • Participation through Special Case Resource Program • Ancillary Services: • Operating Reserves and Regulation Service 6/3/2008

  5. Integration – PJM • Energy Market: • Economic Load Response enables Demand Resources to respond LMP • Capacity Market (RPM) • Demand Resources may participate as a forward capacity resource • Ancillary Services: • PJM provides opportunity to offer into the synchronized reserves and regulation markets 6/3/2008

  6. Integration – Midwest ISO • Energy Market: • Participation through Emergency Demand Response Program • Ancillary Services: • Operating Reserves and Regulation Service 6/3/2008

  7. Integration – CAISO • Participating Load Agreements • MRTU Implementation • MRTU Release 1A 6/3/2008

  8. Competition NOPR • Would require RTOs/ISOs to accept bids from demand response resources in their markets for certain ancillary services. • Would eliminate, during a system emergency, a charge to buyers in the energy market for taking less electric energy in the real-time market than purchased in the day-ahead. • Would permit an aggregator of retail customers to bid demand response on behalf of retail customers directly into energy markets. • Required staff to conduct a technical conference on demand response. 6/3/2008

  9. DR Technical Conference Issues • Value of and appropriate compensation for demand response in organized electric markets. • Barriers to comparable treatment of demand response that have not previously been identified. • Potential solutions to eliminate barriers to demand response. 6/3/2008

  10. Smart Grid • Energy and Independence and Security Act of 2007 • Interoperability Standards • FERC-NARUC Collaborative 6/3/2008

  11. Demand Response • Assessment of Demand Response • National Action Plan for Demand Response 6/3/2008

  12. Conclusions • Adding significant new amounts of DR represents a challenge as well as an opportunity • Measurement and Verification protocols and processes will be increasingly important • Ultimately, we will see significant technological infrastructure additions and improvements 6/3/2008

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