The California Statewide Pricing Pilot ------------------- Lessons - - PowerPoint PPT Presentation
The California Statewide Pricing Pilot ------------------- Lessons Learned David G. Hungerford, Ph.D. California Energy Commission
Always TOU or Better if digital meters available and if
economic
“CPP” is an extension of TOU Residential and Small Commercial
Default = CPP Option = TOU or Flat w/hedge premium
Intermediate Size Customers (perhaps 200 kw to 1 MW)
Default = CPP Option= TOU or RTP
Large (perhaps > 1 MW)
Default = RTP Option = CPP or perhaps TOU
Test customer acceptance of dynamic pricing rates
Measure average load impacts from different types of
Estimate Price elasticities for different customer types
Test new forms of information displays that provide
Evaluate customers willingness to stay on dynamic
technologies and information only
mandated under SB970.
Residential CPP rates can, within five years of deployment reduce California’s peak load by 1,500 to over 3,000 MW.
System Impacts
Dynamic rates encourage greater conservation and peak demand impacts than conventional inverted tier or time-of-use rates.
Conservation and Peak Load Impacts
Residential and small to medium commercial and industrial customers understand and overwhelmingly prefer dynamic rates to existing inverted tier rates.
Customer Acceptance
Residential CPP-F rates reduced critical peak period ( 2PM to 7PM) energy use by more than 13% (average). (range 8-17%) Customers who opted to install and use automatic controls and had air conditioning reduced critical peak energy use on average by 30%. Critical peak Pricing produced stable results-- Residential peak period reductions were almost identical in the summers of 2003 and 2004. Average peak period reductions held steady throughout multiple day peak pricing events usually associated with heat storms.
Source: California’s Statewide Pricing Pilot: Update of Results, Charles River Associates, January 7, 2005.
CPP-V rates reduced peak period energy use during the critical peak time period (2PM to 7PM) by more than 6% for customers <20kW peak and 9.5% for customers between 20 kW and 200 kW (on average). Customers who opted to install and used automatic controls reduced critical peak energy use on average by between 14 and 18 %.
Source: California’s Statewide Pricing Pilot: Update of Results, Charles River Associates, January 7, 2005.
TOU Tariff- (high)
$0.7336 $0.2336 $0.0886 10 20 30 40 50 60 70 80 Cents per kWh
Existing Rates
13.36 ¢/kWh
$0.2596 $0.1026
2:00-7:00pm Weekdays Other Weekday & Weekend hours 2:00-7:00pm Weekdays Other Weekday & Weekend hours Dispatched 2:00-7:00pm 1,500 hrs/yr 7,260 hrs/yr Maximum 75 hrs/yr 1,425 hrs/yr 7,260 hrs/yr
Critical Peak Summer Peak Summer Off-Peak
$29 $35 $53
Average Monthly Savings ($)
5.4% 4.5% 5.5% 5.1%
Average Monthly Savings (%)
79.0% 70.0% 73.7% 71.1%
Participants (%)
Info Only TOU CPPF CPPV $869 $1,521 9.6% 12.2% 58.2% 80.3% TOU CPPV $9 $30 $44 $39
Average Monthly Increase ($)
10.0% 3.0% 6.2% 4.0%
Average Monthly Increase (%)
21.0% 30.0% 26.3% 28.9%
Participants (%)
$600 $224 10.0% 5.0% 41.8% 19.7%
Residential Commercial / Industrial Bill Savings Bill Increases
Source: Statewide Pricing Pilot, Shadow Bill Results, WG3 report, June 9, 2004.
Average Bill Impacts (summer / winter 2003)
Time of Use TOU
Critical Peak Impacts By Rate Treatment
0% 10% 20% 30% 40% 50% Peak Load Reduction Critical Peak Fixed CPP-F 4.1% Critical Peak Variable With Automated Controls CPP-V 34.5% 12.5% Critical Peak Variable With Automated Controls CPP-V 47.4%
Average Critical Peak Day – Year 1 Hottest Critical Peak Day *
TOU 0% 10% 20% 30% 40% 50% Peak Load Reduction Critical Peak Fixed CPP-F 0.6% Critical Peak Variable With Automated Controls CPP-V 27.2% 13.1%
Critical Weekday – Inner Summer Year 2
Critical Peak Impacts By Rate Treatment
Source: Impact Evaluation of the California Statewide Pricing Pilot, CRA, March 16, 2005, Table 1-1, 4-3.
Source:
0% 10% 20% 30% 40% 50% Peak Load Reduction Three Tier TOU with Dispatched CPP
Midwest Pilot
2
2004
Three Tier TOU with Dispatched CPP 35.0% Two Tier TOU with Dispatched CPP
Gulf Power Pilot
3
1992-1993 California Pilot 1 2003
34.5% 34.8% Average Critical Peak Day Two Tier TOU with Dispatched CPP 47.4% Hottest Critical Peak Day *
California Pilot 1 2003
Three Tier TOU with Dispatched CPP
AEP Pilot
4
1991
41.0%
Residential Response with Automation: Participation Incentive vs. Critical Peak Rate
kW
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Noon 2:30 7:30 Critical Peak Rate Participation Incentive Control Group Midnight
CPP Event Hot Day, August 15, 2003, Average Peak Temperature 88.50
Source: Statewide Pricing Pilot, Summer 2003 Impact Analysis, CRA, August 9, 2004, Table 5-9, p.90
Percent Reduction in Peak Period Usage (CPP-F) Year 1
2 4 6 8 10 14 16 18 20
Percent Reduction
12 High vs. Low User 200% Average Use 50% Average Use 17.2% 9.79% Central AC Ownership YES NO 12.8% 12.3% Pool Ownership YES NO 19.2% 12.1% Income > $100,000 < $40,000 15.1% 12.1% Single vs. Multi-Family Single Family Multi-family 13.5% 9.8% State-wide Average 12.5%
Percent Reduction in Peak Period Usage (CPP-F) Year 2
2 4 6 8 10 14 16 18 20
Percent Reduction
12 High vs. Low User 200% Average Use 50% Average Use 14.7% 12.2% Central AC Ownership YES NO 17.4% 8.1% Pool Ownership YES NO 15.8% 13.0% Income > $100,000 < $40,000 16.2% 10.9% Single vs. Multi-Family Single Family Multi-family 14.0% 11.8% State-wide Average 13.1%
4 6 8 10 14
Percent Reduction
12
Critical Peak Impacts Enabling Technology Impacts
With Technology
< 20 kW
0.8% 13.2% No Technology With Technology
> 20 kW
4.9% 9.6%
< 20 kW
6.6%
> 20 kW
5.5%
Original Inverted Tier Rate Pilot Rates
Residential CPP-V CPP-F TOU
80% 81% 20% 23% 19%
Commercial CPP-V TOU
77% 71% 70%
20 40 20 40 60 80
30% 29%
60
http://www.energy.ca.gov/
http://www.energy.ca.gov/demandresponse/documents/index.html#group3 Other Demand Response Evaluations http://www.energy.ca.gov/demandresponse/documents/index.html#group2
David G. Hungerford, Demand Response Evaluation Manager Phone: 916-654-4906 email: dhungerf@energy.state.ca.us