DSM in Indiana. Alison Becker, Manager, Regulatory Policy May 14, 2013

Transcription

1 DSM in Indiana Alison Becker, Manager, Regulatory Policy May 14, 2013

2 Presentation Overview NIPSCO Overview DSM in Indiana Commission-established goals Self-direct option for C&I customers Midwest ISO (MISO) Parallels between DSM Financing and Demand Response Key Takeaways

3 NIPSCO Overview Footprint 450,000 electric customers in 20 counties 780,000 gas customers in 32 counties Energy efficiency programs Gas programs since 2007 Electric programs since 2010 Offer programs to all electric, all residential gas, some C&I gas customers Programs managed by an Oversight Board 3

4 Current Energy Efficiency Programs Electric Five Core programs (2 C&I, 3 residential) Seven Core Plus programs (1 C&I, 6 res) Two new C&I Core Plus programs for 2014 Gas Purchase therms from electric Core programs Residential programs offered with Core Plus programs C&I Custom 4

5 DSM in Indiana: Electric As of December 2009: Goal: 2% of average annual weather-normalized sales for the previous three years by 2019 DSM Coordination Committee currently reviewing Core programs New RFPs this year Utilities, customers, consumer groups concerned with escalating costs Capacity market could help address concerns 5

6 DSM in Indiana: Gas Commission has not established a goal Joint Oversight Board to encourage coordination of efforts between utilities 6

7 Self-Direct for C&I Customers Commission investigation in process Utilities (with input from other interested parties) must create a plan for a structured self-direct program Planning under various scenarios 7

8 DSM Financing Key Issues: Most important: protect our customers and our relationships with customers Difficult to envision an outside party performing that direct service with our customers NiSource has recently sold its retail services business to focus more on core businesses 8

9 About the Midwest ISO (MISO) MISO serves a mix of regulated and restructured states Mandate: accommodate all Load Serving Entities (LSEs) business models while assuring reliability and enabling efficiency MISO capacity market history: Voluntary auctions since 2009 Rules for mandatory Forward Capacity Market issued in 2012 First FCM auction under new rules in April 2013

10 MISO Forward Capacity Market New rules allow LSEs to bid energy efficiency (EE) resources into the market Strict M&V requirements LSEs can choose to: Reduce the amount of capacity they buy Sell their qualifying EE programs as a capacity resource LSEs have not been accustomed to bidding EE as a resource; it will take time to figure out how the system works

11 Demand Response as a Parallel Commission support was crucial Appreciate the opportunity to offer another service to our customers Continue to work through issues MISO implementation has led to a variety of conversations internally, with other utilities and MISO Aggregation allowed, but not much customer interest The FCM will make DR and EE programs more appealing once we figure out how to capitalize on them 11

12 Key Takeaways Want to offer innovative programs to our customers BUT also want to make sure those programs meet our customers wants and needs MISO s markets will determine our offerings Balance between being the interface with our customers and encouraging them to participate in a way that makes sense for them Want to work through issues related to DSM offerings before expanding to something new 12