Demand Response & TOU Pricing

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1 Demand Response & TOU Pricing Newmarket Paul Ferguson, P.Eng. President Tay Power Distribution Ltd

2 The Utility Two part servicee area Town of Newmarket Township of Tay Newmarket High population density 35 km north of Torontoo 26,000 customers Tay Low population density Southeast shoreline of Georgian Bay 5,000 customers

3 TOU and Demand Response Pilot 2007 Approved by Ontario Energy Board (OEB) Based on 500 residential smart meters installed in 2005 Testing of systems and processes Evaluate consumer impact and reaction to TOU Evaluate demand response tools

4 TOU Billing Pilot Elements Consumers billed using OEB Regulated Price Plan (RPP) TOU pricing TOU consumption report included with bill TOU consumption on web site Demand Responsee Tools Load control thermostats Critical Peak Price Rebate (CPPR)

5 Pilot Enrollment 400 eligible consumers 100 On Choice consumers ineligible 250 consumers enrolled through opt out offering 63% participation Of the 250 enrolled consumers 48% opted for thermostat 68% eligible for CPPR

6 Critical Peak Price Rebate Specific hours on specific days Customer notification by automated phone, or text message >90% of notifications by phone Day Of and Day Ahead notifications Rebate of 30 per kwh for difference between projected and actual energy use

7 TOU Consumption Report

8 Web Site TOU Consumption

9 TOU and Consumption Consumption Average 1.1% increase in weathercorrected overall consumption Increase in off peak periods

10 TOU and Consumption Shifting Shifting On Peak usage decreased by 0.4% Mid Peak usage declined by 0.3% Off Peak increased by 0.7% Mostly during week day off peak period

11 TOU and Bill Impacts Slightly higher (less than 2%) commodity charges 34% of participants paid less under TOU as compared to tiered RPP pricing

12 Load Control Thermostats Achieved a 21% (or 0.23 kw/customer) reduction in consumption over the critical peak period Reduction increased to 31% (or 0.35 kw per customer) when combined with a day ahead CPPR event

13 Day Of Notification Thermostat Control & CPPR Group 1 & 2 Average Load August 1, 2007 Average Load for Simila ar Days Critical Peak :00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

14 Day Ahead Notification Thermostat Control & CPPR Average Load July 26, 2007 Average Load for Similar Group 1 & Critical Peak :00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

15 Day of Notification CPPR Only Group 4 Ave rage Load August 1, 2007 Avgerage Load for Similar Days Critical Peak :00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

16 Day Ahead Notification CPPR Only Group Average Load July 26, 2007 Avgerage Load for Similar Days Critical Peak :00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

17 Observations Some evidence current TOU pricing design provides load shifting incentive Day Ahead notification for critical peak pricing very desirable Exits from control events using automated equipment need to be carefully managed to avoid subsequent peaks

18 Post Pilot Survey 64% of respondents would recommend TOU pricing 50% found TOU Summary most useful resource 10% website

19 Present Smart Meter Status February to June, Completed installationn of 28,000 meters June to November, 2007 Business and IT process changes AMI network optimization November, 2007 Declared Mandatory Power s service area 2007 TOU within NT

20 Present TOU Pricing Status 12,000 customerss on TOU Migrating ~ 1,5000 per month Consumer receives a package 3 month TOU summary Pamphlet TOU rate chart TOU introduction

21 January 09 Customer Survey 82% aware of Smart Meters 2% unsure 52% of TOU users say they will change their pattern of energy use 59% of TOU users have not noticed a change in their bills to date 80% of TOU users say the rate encourages purchase of low energy appliances and turning off lights around the house

22 Thank You! P.D. Ferguson, P. Eng. President Newmarket Tay Power Distribution Ltd