+Customer-side Smart Grid Technologies

How will they change utility offerings?

Karen Herter, Ph.D.Association of Women in Water,

Energy, and Environment Workshop

May 22, 2012

+

2

Smart Grid Elements

+

3

What does the “Smart Grid” do for customers?

1. Real-time Information Improves understanding of energy use

2. Time-based Incentives Accurately rewards energy management

behaviors

3. End-use Automation (cost-effectiveness) Simplifies energy management by customer or

utility

+Customer-side SmartGrid Technologies Monitor energy use

site or appliance Display electricity prices Estimate energy costs Notify customers of utility

price or event signals Automate response to

utility price or event signals Centralize customer control

of appliance activity

+

5

1. Real-time InformationCustomers want personalized information & advice Smart Meters = DATA TO UTILITY

Improved customer service by bill, phone or Internet Customer load shapes personalized recommendations

Program EVs, spas, and pool pumps for off-peak Install more efficient AC unit Offer free site visits for outliers?

Energy Displays = DATA TO CUSTOMERS Many potential applications

Real-time household electricity use Customer-specific electricity pricing Bill calculators with “what-if” scenarios Event notification

Via mobile app, PC, or thermostat display

+

6

Bill ComparisonBill ComparisonStart Date 7/12/2011 End Date 8/10/2011

       Standard Rate: RSG   Sherlock Holmes  Billing Month: August 221B Baker Street

Account Number: 1234567   Folsom, CA 95630  Summary Bill Comparison

Critical Peak Days This MonthThursday, July 21, 2011 Standard Bill $96.71Thursday, July 28, 2011 Summer Solutions Bill $77.42

Congratulations you saved 19.9% on your bill: $19.29

Plus you earned from Auto Temp Control: $8.00

Total savings this month: $27.29Your Bill on Standard Rate

Bill Component Monthly KWh Price per kWh Charges

Base Usage   700 $0.1045 $73.15Base-Plus Usage   88 $0.1859 $16.36

Electricity Use Subtotals 788 $0.1136 $89.51System Infrastructure Fixed Charge $7.20

Standard Rate Charges $96.71Your Bill on Summer Solutions Rate

Bill Component Monthly KWh Price per kWh Charges

Off-Peak Base Usage 700 $0.0721 $50.47Off-Peak Base-Plus Usage 46 $0.1411 $6.49

On Peak Usage 38 $0.27 $10.26Critical Peak Usage 4 $0.75 $3.00

Electricity Use Subtotals 788 $0.0891 $70.22Summer Solutions Rate Charges 788 $77.42

Summer Solutions rate participants received a Bill Comparison Report, showing bill savings or losses compared to what they would have paid on the Standard rate

+PC Energy Display

7

+PC Energy Display

8

+Thermostat Energy Display

9

• Screen with instantaneous kW and daily kWh• Scroll through appliances one at a time for Appliance group• Can be made default screen

+

10

2. Time-Based RatesRewards are directly proportional to actions TOU-CPP rates have been found to be particularly

effective especially when paired with thermostatic automation Added benefit of daily peak load reduction (not shown here)

N = number of studies

+

11

Example TOU-CPP Rate

+

12

3. End-use AutomationMore cost-effective when paired with time-based rates

Rate structure determines the technology Time-of-use rates Programmable thermostats & timers Dynamic pricing Communicating thermostats & switches

Provide technology assistance and financing options Rebates where cost-effective Options to purchase, rent, or borrow technologies Assistance with installation and use

Market determines technology form factors & features Standard protocols to enable plug and play technologies Ideally utilities recommend, customers choose

+Putting it all together…Information + time-based rates + automation

13

• Both energy and peak load savings on non-event days• Significant load shed during events, with some pre-cooling and rebound• Even a small percentage of participating customers (10-20%) could have

a substantial effect on the system load shape

+Information isn’t enoughthose with information only didn’t do much

14

Values in bold indicate a statistically significant difference from “Neither option”

Statistically significant kW savings over ATC

-3% -9% -10% -8%

-8% -36% -53% -58%

-8% -23% -24%

• “Neither option” = information only• Peak and event load reductions greatest for Dynamic Rate

+Information enhances savingsbut those without real-time information do well too

15

+Studies Currently In ProgressARRA SGIG Consumer Behavior Studies

16

Sierra Pacific

Nevada Power OG&E MMLD CVPS VEC

MN Power CIC SMUD DECo Total

Rate TreatmentsTOU l l l 3CPP  l l l l l l l l 8CPR l l 2VPP l l 2

Non-Rate TreatmentsEducation l l 2Cust. Service l 1IHD l l l l l l l l l 9PCT l l l 3DLC l 1

FeaturesBill Protection l l l l 4

Experimental DesignOpt In l l l l l l l l l 9Opt Out l l 2Within l 1

+

17

Thank you! Information in this presentation based on:

2008 Small Business Summer Solutions Study report 2010 Residential information & controls technology

review 2010 Residential focus group summary 2011 Residential Summer Solutions Study report

To download these and other reports visit: www.HerterEnergy.com

+

18

Contact info:Karen HerterHerter Energy Research Solutionswww.HerterEnergy.com916.397.0101