fercs role in demand response david kathan office of energy policy and innovation federal energy...
Post on 26-Mar-2015
219 Views
Preview:
TRANSCRIPT
FERC’s Role in FERC’s Role in Demand ResponseDemand Response
David KathanDavid Kathan
Office of Energy Policy and InnovationOffice of Energy Policy and InnovationFederal Energy Regulatory CommissionFederal Energy Regulatory Commission
Peak Load Management AlliancePeak Load Management AlliancePractical Demand Response for a Complex FuturePractical Demand Response for a Complex Future
October 20, 2009October 20, 2009
22
OutlineOutline
FERC’s FY09-14 Strategic PlanFERC’s FY09-14 Strategic Plan Past Commission ActivityPast Commission Activity Recent Commission ActivityRecent Commission Activity
The author’s views do not necessarily represent the views of the Federal Energy Regulatory Commission
33
Released October 2009 Reflects the direction of
the Commission in supporting national goals
Speaks to future energy policy
FERC FY09-14 Strategic PlanFERC FY09-14 Strategic Plan
44
FERC’s MissionFERC’s MissionRELIABLE, EFFICIENT AND SUSTAINABLE ENERGY RELIABLE, EFFICIENT AND SUSTAINABLE ENERGY
FOR CONSUMERSFOR CONSUMERS
1. Ensure that rates, terms and conditions are just, reasonable and not unduly discriminatory or preferential.
2. Promote the development of safe, reliable and efficient energy infrastructure that serves the public interest.
Assist consumers in obtaining reliable, efficient and sustainable energy services at a reasonable cost through
appropriate regulatory and market means.
Fulfilling this mission involves pursuing two primary goals:
55
FERC FY09-14 Strategic PlanFERC FY09-14 Strategic PlanStrategic Goals and ObjectivesStrategic Goals and Objectives
Goal 1: Just and Reasonable Rates, Terms and ConditionsEnsure that Rates, Terms and Conditions are Just, Reasonable and not Unduly Discriminatory or Preferential
1. Regulatory and Market Means
2. Oversight and Enforcement
Goal 2: InfrastructurePromote Development of Safe, Reliable, And Efficient Infrastructure that Serves the Public Interest.
1. Development and Siting
2. Safety3. Reliability
66
FERC FY09-14 Strategic Plan FERC FY09-14 Strategic Plan Key Demand Response StrategiesKey Demand Response Strategies
1.1 Ensure implementation of appropriate regulatory 1.1 Ensure implementation of appropriate regulatory and market means for establishing ratesand market means for establishing rates• Strategy 1: Establish rules that enhance competition by Strategy 1: Establish rules that enhance competition by
allowing non-discriminatory market access to all supply-allowing non-discriminatory market access to all supply-side and demand-side energy resourcesside and demand-side energy resources
2.1 Increase efficient infrastructure consistent with 2.1 Increase efficient infrastructure consistent with demanddemand• Strategy 1: Encourage new electric transmission Strategy 1: Encourage new electric transmission
consistent with demandconsistent with demand• Strategy 2: Support electric transmission planning Strategy 2: Support electric transmission planning
through the use of open and transparent processes that through the use of open and transparent processes that include analysis and consideration on a comparable include analysis and consideration on a comparable basis of proposed solutions involving any of generation, basis of proposed solutions involving any of generation, transmission, and demand resourcestransmission, and demand resources
77
Past FERC ActivityPast FERC Activity
Continued co-sponsorship of the ongoing Continued co-sponsorship of the ongoing NARUC-FERC Demand Response NARUC-FERC Demand Response Collaborative DialogueCollaborative Dialogue
Continued support for regional demand Continued support for regional demand response effortsresponse efforts
Issued two rulemakings that directly Issued two rulemakings that directly address demand responseaddress demand response
88
Open Access Transmission Tariff Open Access Transmission Tariff Reform (Order No. 890)Reform (Order No. 890)
In February 2007 the Commission amended its regulations and In February 2007 the Commission amended its regulations and the the pro formapro forma open access transmission tariff open access transmission tariff to remedy to remedy opportunities for undue discriminationopportunities for undue discrimination and address and address deficiencies in the pro forma OATT. deficiencies in the pro forma OATT.
Key reform related to demand response was the requirement for Key reform related to demand response was the requirement for open, coordinated and transparent planning on both a local and open, coordinated and transparent planning on both a local and regional level. regional level.
Preventing Undue Discrimination and Preference in Transmission Service, Order No. 890, FERC Stats. & Regs. ¶ 31,241 at P 418-602
99
Transmission Planning Processes Transmission Planning Processes Under Order No. 890Under Order No. 890
Comments are due by November 9, 2009 in AD09-8 on:Comments are due by November 9, 2009 in AD09-8 on:• Should there be consistency in the way transmission providers treat demand Should there be consistency in the way transmission providers treat demand
resources, such as demand response, energy efficiency and distributed storage, resources, such as demand response, energy efficiency and distributed storage, in the transmission planning process? in the transmission planning process?
• Are there preferred methods of modeling or otherwise accounting for demand Are there preferred methods of modeling or otherwise accounting for demand resources in the planning process? resources in the planning process?
• Does the planning process investigate transmission needs at fine enough Does the planning process investigate transmission needs at fine enough granularity to identify beneficial demand resource projects?granularity to identify beneficial demand resource projects?
1010
Wholesale Competition Final Rule Wholesale Competition Final Rule (Order No. 719)(Order No. 719)
Wholesale competition NOPR contains four demand response proposals:Wholesale competition NOPR contains four demand response proposals:• At All TimesAt All Times
Aggregated retail demand responses may bid into RTO and ISO marketsAggregated retail demand responses may bid into RTO and ISO markets• Unless the laws or regulations of the relevant electric retail regulatory authority do not permit a retail Unless the laws or regulations of the relevant electric retail regulatory authority do not permit a retail
customer to participate customer to participate Demand response may bid into ancillary services marketsDemand response may bid into ancillary services markets
• During a Power ShortageDuring a Power Shortage Reducing load is not penalizedReducing load is not penalized Price may help reduce demandPrice may help reduce demand
Wholesale Competition in Regions with Organized Electric Markets Docket RM07-19, 122 FERC ¶ 61,167, issued February 22, 2008
1111
Recent FERC ActivityRecent FERC Activity
National Demand Response AssessmentNational Demand Response Assessment Annual demand response and advanced Annual demand response and advanced
metering reportsmetering reports NOPR on measurement and verification of NOPR on measurement and verification of
demand response products and services in demand response products and services in wholesale electric energy marketswholesale electric energy markets
National Action Plan on Demand ResponseNational Action Plan on Demand Response
1212
EISA 2007 Statutory RequirementsEISA 2007 Statutory Requirements
Section 529 of Energy Independence & Security Act of 2007 Section 529 of Energy Independence & Security Act of 2007 creates a new Section 571 of the National Energy creates a new Section 571 of the National Energy Conservation Policy Act that requires FERC to:Conservation Policy Act that requires FERC to:
Conduct a Conduct a National Assessment of Demand ResponseNational Assessment of Demand Response• Due by June 19, 2009Due by June 19, 2009
Develop a Develop a National Action Plan on Demand ResponseNational Action Plan on Demand Response• Due by June 17, 2010Due by June 17, 2010
With DOE, submit National Action Plan With DOE, submit National Action Plan Implementation Implementation ProposalProposal to Congress to Congress• Due by December 17, 2010Due by December 17, 2010
1313
National Assessment of Demand National Assessment of Demand ResponseResponse
Bottom-up, state-by-Bottom-up, state-by-state analysisstate analysis
15 pilot programs 15 pilot programs synthesizedsynthesized
User-friendly User-friendly spreadsheet modelspreadsheet model
Review of barriersReview of barriers Recommendations to Recommendations to
achieve potentialachieve potential
1414
Approach: ScenariosApproach: Scenarios
Business-as-Usual (baseline)Business-as-Usual (baseline) Expanded Business-as-UsualExpanded Business-as-Usual Achievable ParticipationAchievable Participation Full ParticipationFull Participation
1515
U.S. Peak Demand & NADRPU.S. Peak Demand & NADRP
650
700
750
800
850
900
950
1,000
2009 2011 2013 2015 2017 2019
GW
38 GW,4%
82 GW,9%
138 GW,14%
188 GW,20%
BAU 1.7%
Expanded BAU1.3%
FullParticipation
0.0%
AchievableParticipation
0.6%
No DR (NERC)
1.7%
Change in peak demand from No DR scenario
Average Annual Growth Rate
(AAGR)
BAU: Business-as-UsualDR: Demand Response
1616
0
50
100
150
200
Business-as-Usual
ExpandedBAU
Achievable Participation
Full Participation
Pea
k R
edu
ctio
n (
GW
)
0%
5%
10%
15%
20%
25%
% o
f P
eak
Dem
and
Other DR
Interruptible Tariffs
DLC
Pricing w/o Tech
Pricing w/Tech
38 GW,4% of peak
82 GW,9% of peak
138 GW,14% of peak
188 GW,20% of peak
DR Potential by Program TypeDR Potential by Program Type(2019)(2019)
1717
0
20
40
60
80
100
120
140
160
180
200
Business-as-Usual
ExpandedBAU
Achievable Participation
Full Participation
Pea
k R
edu
ctio
n (
GW
)
0%
5%
10%
15%
20%
% o
f P
eak
Dem
and
Large
Medium
Small
Residential
DR Potential by Customer ClassDR Potential by Customer Class(2019)(2019)
1818
Range of State Results Range of State Results (Achievable Participation Scenario)(Achievable Participation Scenario)
Gigawatt BasisGigawatt Basis
Texas (13.2 GW)Texas (13.2 GW) Florida (11 GW)Florida (11 GW) California (8.8 GW)California (8.8 GW)
Hawaii (0.2 GW)Hawaii (0.2 GW) Vermont (0.01 GW)Vermont (0.01 GW) Alaska (0.01 GW)Alaska (0.01 GW)
Peak Load FractionPeak Load Fraction
Conn. (26%)Conn. (26%) Maryland (24%)Maryland (24%) Maine (22%)Maine (22%)
Wisconsin (8.5%)Wisconsin (8.5%) Hawaii (8.5%)Hawaii (8.5%) Alaska (4.6%)Alaska (4.6%)
1919
State Details in Appendix DState Details in Appendix D
2020
FERC Assessments of Demand FERC Assessments of Demand Response and Advanced MeteringResponse and Advanced Metering
Required by EPAct 2005 Section 1252(e)(3)Required by EPAct 2005 Section 1252(e)(3) FERC staff issued reports in 2006, 2007 and FERC staff issued reports in 2006, 2007 and
20082008 2009 FERC staff report issued September 20092009 FERC staff report issued September 2009 Future staff reports:Future staff reports:
• Comprehensive reports every even year reports (e.g. 2008) Comprehensive reports every even year reports (e.g. 2008) that will include survey resultsthat will include survey results
• Informational reports every odd year based largely on Informational reports every odd year based largely on publicly available informationpublicly available information
2121
2009 FERC Demand Response Report2009 FERC Demand Response Report
Fourth annual report issued Fourth annual report issued in September 2009in September 2009
Report includesReport includes• Results from AssessmentResults from Assessment• Summary of recent Summary of recent
Commission actionsCommission actions• Summary of noteworthy Summary of noteworthy
retail demand response retail demand response activitiesactivities
http://www.ferc.gov/legal/staff-reports/sep-09-demand-response.pdf
2222
2010 Survey2010 Survey
2010 Demand Response and Advanced Metering 2010 Demand Response and Advanced Metering survey under developmentsurvey under development
Draft survey released for comment in Docket Draft survey released for comment in Docket IC09-731IC09-731
Small number of comments were receivedSmall number of comments were received Survey will be fielded in March/April 2010Survey will be fielded in March/April 2010
2323
Wholesale Demand Response Wholesale Demand Response Measurement and VerificationMeasurement and Verification
Issued NOPR on proposed business practices on Issued NOPR on proposed business practices on wholesale M&V developed by NAESB in RM05-5-wholesale M&V developed by NAESB in RM05-5-017017
Proposed standards categorize various demand Proposed standards categorize various demand response products and services and support M&V response products and services and support M&V in wholesale electric energy marketsin wholesale electric energy markets
Finds that more work is needed to develop Finds that more work is needed to develop substantive standardssubstantive standards
Comments due October 22, 2009Comments due October 22, 2009
2424
Subsection 571(b) of the National Energy Subsection 571(b) of the National Energy Conservation Policy Act require FERC to:Conservation Policy Act require FERC to:
Develop a Develop a National Action Plan on Demand National Action Plan on Demand ResponseResponse• Solicit input and participation from broad range of Solicit input and participation from broad range of
stakeholdersstakeholders Including industry, state utility commissioners, and non-Including industry, state utility commissioners, and non-
governmental groups governmental groups
• Identify requirements for technical assistance to statesIdentify requirements for technical assistance to states• Identify requirements for a national communications Identify requirements for a national communications
programprogram• Identify analytical tools and other support material Identify analytical tools and other support material
Demand Response National Action Plan Demand Response National Action Plan
2525
Demand Response National Action Plan Demand Response National Action Plan StatusStatus
Developed a FERC Staff Discussion Draft of Developed a FERC Staff Discussion Draft of Possible Elements of a Demand Response National Possible Elements of a Demand Response National Action Plan Action Plan
Conducted initial and broad outreach on Conducted initial and broad outreach on Discussion Draft with stakeholdersDiscussion Draft with stakeholders
2626
Demand Response National Action Plan Demand Response National Action Plan Next StepsNext Steps
Release Revised Discussion DraftRelease Revised Discussion Draft Conduct National Action Plan Technical Conduct National Action Plan Technical
ConferencesConferences Publish for Comment Draft National Action PlanPublish for Comment Draft National Action Plan Publish Final National Action Plan by June 2010Publish Final National Action Plan by June 2010
2727
Demand Response National Action Plan Demand Response National Action Plan Implementation ProposalImplementation Proposal
Post-June 2010 FERC will work with the Secretary Post-June 2010 FERC will work with the Secretary of Energy to develop a proposal to implement the of Energy to develop a proposal to implement the National Action PlanNational Action Plan
Contents of implementation proposal could Contents of implementation proposal could include:include:• Specific proposed assignments of responsibilitySpecific proposed assignments of responsibility
• Proposed budget amountsProposed budget amounts
• Agreements secured for participation from State and other participantsAgreements secured for participation from State and other participants
Implementation proposal due to Congress by Implementation proposal due to Congress by December 2010December 2010
Questions?Questions?David KathanDavid Kathan
david.kathan@ferc.gov
202-502-6404202-502-6404
top related