TOU to CO 2. The Relationship between AMI and Global Warming. Chris King President, emeter Strategic Consulting U.S.A emeter Corporation

Transcription

1 TOU to CO 2 The Relationship between AMI and Global Warming Chris King President, emeter Strategic Consulting U.S.A emeter Corporation

2 Intro: emeter Strategic Consulting Experience in all aspects Designing policy and rates Integrating load control and time-based pricing Consumer outreach emeter Strategic Consulting monitors policy, manages projects, tests models and evaluates best practices in utility mass market demand response (MMDR) programs Presenting time-valued usage data Equipment provisioning Reporting & evaluation to regulators, stakeholders & public Recent and ongoing projects include PowerCentsDC (2006 present) Ontario Smart Price Pilot (August 2006-February 2007) California Statewide Pricing Pilot ( ) Sophistication in simplicity 2008 emeter Corporation Page 2

3 Vision Integrated DR and EE for all Reduced consumption Lower peak demand Higher reliability Infrastructure needs Information Energy use Energy price Control Solutions Automation ELECTRICITY kwh 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 EE and DR programs, including price signals Advanced metering Automation networks Advanced energy information Source: Roche Pharmaceuticals 43% Reductions NATURAL GAS therms Electricity Gas Sophistication in simplicity 2008 emeter Corporation Page 3

4 AMI Concept Sophistication in simplicity 2008 emeter Corporation Page 4

5 Advanced Metering Typical Functionality Price responsive tariffs (TOU, CPP, and RTP) Hourly usage data Flexible customer access to usage data Compatible with providing improved customer service (e.g. customized billing) Support utility operational efficiencies Interface to load control Sophistication in simplicity 2008 emeter Corporation Page 5

6 HAN Concept Wireless or power line carrier Meter to premise data Usage data Price data Control signals Alerts Other possible functions Home automation Appliance control Security monitoring Etc. Source: SCE Sophistication in simplicity 2008 emeter Corporation Page 6

7 Information Infrastructure Today blunt instruments Bills Total usage Total price Limited availability Websites DR & EE brochureware Online bill payment Tomorrow empowerment tools Bills to understand and manage usage Websites for interactive information and control Sophistication in simplicity 2008 emeter Corporation Page 7

8 Information Audiences National U.S. data High Willingness To Take Action 6% Green Back Greens 9% True Blue Greens Basic Browns 31% Sprouts Low 33% 19% Grousers Low Source: Roper ASW. Green Gauge Report Environmental Concern High Sophistication in simplicity 2008 emeter Corporation Page 8

9 Customer Preferences Customers often don t use web presentment of data. Idaho Power Web Presentment Experience Reported December 2005 Preferred billing statement Viewed website 35% 87% Idaho Power Company offered customers the option of accessing their monthly, daily, and hourly usage on the web. Most preferred to receive the information in their bill. Used website to evaluate participation in time-based rate program Preferred web presentation 13% 20% Viewed hourly data on website 1% Source: UtiliPoint, Inc. Sophistication in simplicity 2008 emeter Corporation Page 9

10 Energy Conservation Bill Simple Colorful Multiple prices Direct priceusage link Available online Alerts Exceed tier usage Critical peak events Sophistication in simplicity 2008 emeter Corporation Page 10

11 Energy Conservation Two mechanisms Appliance efficiency Consumer behavior Information Control Literature Varying methods Improved monthly bills Energy usage reports Real-time displays and monitors Conservation Effects Shown in Feedback Studies Energy Use Reduction Number of Studies 20% % % % 8 0-4% 5 TOTAL 31 AVERAGE REDUCTION 11% Source: King and Delurey, Public Utilities Fortnightly, March 2005 Sophistication in simplicity 2008 emeter Corporation Page 11

12 Information In-Home Display Smart thermostat Electricity price now Usage month to date Bill month to date Smart orb PRICe NOW $0.32 per kwh USAGe MTD 577 kwh BILL THRU YSTdy $44.50 Current energy price Red critical peak Green peak Blue off-peak Sophistication in simplicity 2008 emeter Corporation Page 12

13 Example: Ontario Smart Pricing Pilot Determine if current RPP TOU price design (3:2:1 ratio) encourages load shifting Assess degree of: Demand response (or shifting of consumption away from Critical Peak or On-Peak hours); and Conservation effects (or reduction in total electricity consumption, regardless of when electricity is used) Test critical peak pricing (CPP) as per Board commitment in December 2004 Obtain direct consumer feedback on their understanding of TOU pricing Determine how TOU pricing communications can be refined to enhance understanding Sophistication in simplicity 2008 emeter Corporation Page 13

14 TOU Price Designs Tested 375 Hydro Ottawa residential customers with smart meters Initially planned 225; expanded due to very high response rate to marketing Placed into 3 pricing groups of 125 each: 1. Regulated Price Plan (RPP) Time-of-Use (TOU) prices only 2. RPP TOU prices + critical peak pricing (CPP) 3. RPP TOU prices + critical peak rebates (CPR) Also a 4th Control Group (regular RPP Tiered Prices) First dynamic pricing pilot ever to simultaneously test TOU pricing, CPP and CPR Sophistication in simplicity 2008 emeter Corporation Page 14

15 Refrigerator Magnet Sophistication in simplicity 2008 emeter Corporation Page 15

16 Customer Education and Feedback: Usage chart from Monthly Statement Energy prices Use by day Use by pricing period Energy costs CPP bill vs. conventional bill ELECTRICITY USE Account Electricity Service Dates Usage SAMPLE CUSTOMER Critical Peak 1/01/2007 to 1/31/ kwh 123 MAIN ST. On Peak 1/01/2007 to 1/31/ kwh GLOUCESTER Mid Peak 1/01/2007 to 1/31/ kwh ON K1V 1N5 Off Peak 1/01/2007 to 1/31/ kwh Account Number Total Electricity Use kwh Customer Service Price Season: Winter Price Definitions Off Peak Price for usage from 10 pm-7 am weekdays and all day, weekends and holidays Mid Peak Price for usage from 11 am-5pm & 8 pm-10 pm weekdays On Peak Price for usage from 7am -11 am and 5 pm -8 pm weekdays Electricity Used (kwh) Ontario Smart Price Pilot Time-of-Use Electricity Usage Statement Note: this is not a bill Electricity Use By Day 1/1/2007 1/3/2007 1/5/2007 1/7/2007 1/9/2007 1/11/2007 1/13/2007 1/15/2007 1/17/2007 1/19/2007 1/21/2007 1/23/2007 1/25/2007 1/27/2007 1/29/2007 1/31/2007 On Peak 16% Mid Peak 24% Critical Peak 2% Off Peak 58% Critical Peak On Peak Mid Peak Off Peak Critical Peak Rebate Rebate applies to reductions in usage during critical peak hours (3 or 4 hours during an on- peak period, upon notification). Critical Peak Events TIME-OF-USE CHARGES (Electricity Only, excludes taxes & other) Electricity Price Usage(kWh) Amount Critical Peak 30.0 cents per kwh 7.3 $ 2.20 On Peak 9.7 cents per kwh 77.8 $ 7.54 Mid Peak 7.1 cents per kwh $ 8.17 Off Peak 3.1 cents per kwh $ 8.48 Total Time-of-Use Charges (Do Not Pay ) $ January 16, 2007, 5-8 pm COMPARISON (electricity only) January 17, 2007, 5-8 pm Total conventional bill $ January 26, 2007, 7-11 am Difference $ (0.34) Sophistication in simplicity 2008 emeter Corporation Page 16

17 Ontario Results Consumers shift electricity use from peak times on TOU prices in the summer Between 6%-25% peak shifting in during summertime critical peak times Winter-time shifting non-existent CPP group shifted most usage, followed by CPR, then TOUonly Participants used less electricity overall on the pilot 6% conservation effect Due, probably, mostly to feedback rather than dynamic pricing Most customers save money on TOU prices For no load shifting, TOU bill and non-tou bill the same (revenue neutral) 75% of participants saved Most participants like TOU prices 78% of participants surveyed would recommend TOU pricing to friends; 6% definitely would not Sophistication in simplicity 2008 emeter Corporation Page 17

18 Conservation Effect of 6% Reduced TOTAL consumption TOU Only 6.0% TOU+CPR 7.4% TOU+CPP 4.7% 0% 1% 2% 3% 4% 5% 6% 7% 8% Comparison of total electricity use between treatment groups and control group before and during pilot Approach used makes weather differences between years a non-issue Both treatment and control customers faced same weather Sophistication in simplicity 2008 emeter Corporation Page 18

19 Distribution of Savings Total TOU Bill Savings over the Total Pilot Period $ $ $ $80.00 $60.00 $40.00 $20.00 $0.00 0% -$ % 50% 75% 100% Paid less on TOU Paid more on TOU These savings consider load shifting only Conservation doubles the monthly savings -$ $60.00 Distribution of participant bills savings on TOU prices for the total pilot period. Each dot represents an individual participant s net loss or savings. Those above the line paid less on TOU prices. Sophistication in simplicity 2008 emeter Corporation Page 19

20 Summary Future infrastructure components EE and DR programs, including price signals Advanced metering Automation networks Advanced energy information Customer needs Efficient appliances Useful information Convenient control Synergy the bonus that is achieved when things work together harmoniously. - Mark Twain Sophistication in simplicity 2008 emeter Corporation Page 20